3M India Limited's Board of Directors has formally addressed regulatory fines imposed by stock exchanges for delayed disclosure compliance. The Board reviewed fines of ₹5,000 each from BSE Limited and the National Stock Exchange of India Limited (NSE) for a one-day delay in related party transaction disclosure.

Fine Details and Regulatory Action

Both exchanges imposed penalties on 3M India for non-compliance with disclosure requirements under SEBI regulations. The specific details of the fines are outlined below:

Board's Response and Explanation

The Board considered the matter and acknowledged that the alleged non-compliance related to a one-day delay in the disclosure of related party transactions pursuant to Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulation. The company attributed the delay to technical glitches faced with the new XBRL filing system introduced during the year.

Remedial Measures and Future Compliance

The Board has recommended several measures to prevent similar occurrences in the future:

• Filing stock exchange disclosures during working hours to allow adequate time for addressing technical issues with exchange officials
• Maintaining full commitment to timely and complete compliance with all SEBI and stock exchange requirements
• Submitting an application for waiver of the penalty in accordance with the Policy for Exemption of Fines levied under the SEBI SOP Circular

Impact Assessment

The company has evaluated the potential impact of these fines on its operations:

3M India remains committed to regulatory compliance and has taken steps to address the technical challenges that led to the disclosure delay.

3M India Limited , a prominent player in the Indian market, has recently received a final settlement order under the Direct Tax Vivad Se Vishwas Scheme, 2020. This development marks a significant step in the company's efforts to resolve outstanding tax disputes.

Key Details of the Settlement

• Scheme: Direct Tax Vivad Se Vishwas Scheme, 2020
• Issuing Authority: Principal Commissioner of Income Tax, Bengaluru-2
• Financial Year Covered: 2008-09
• Refund Amount: Rs 2.28 crores

Background of the Scheme

The Direct Tax Vivad Se Vishwas Scheme, introduced by the Finance (No.2) Act, 2020, aims to settle tax disputes efficiently. 3M India had applied under this scheme to resolve open tax litigations for the period spanning from FY 2004-05 to FY 2013-14.

Settlement Process

According to the LODR disclosure dated November 4, 2022, the company had previously received a Certificate in Form 2 from the Principal Commissioner of Income Tax, indicating the acceptance of their application for FY 2008-09. The recent development involves the receipt of the final order in Form 4, dated November 4, 2022, specifically for FY 2008-09.

Financial Implications

While the settlement entitles 3M India to receive a refund of Rs 2.28 crores for FY 2008-09, the company has stated that this settlement has no material impact on its operations or activities.

Broader Context

This settlement is part of 3M India's larger strategy to resolve tax disputes for multiple financial years. The company had opted for the Scheme to settle various open tax litigations covering the period from FY 2004-05 to FY 2013-14.

The Direct Tax Vivad Se Vishwas Scheme represents a government initiative to streamline the resolution of tax disputes, potentially benefiting both companies and the tax authorities by reducing litigation and expediting settlements.

As companies continue to navigate complex tax landscapes, such schemes offer opportunities for resolving long-standing disputes, potentially leading to improved financial clarity and reduced legal burdens for corporations operating in India.