Forbes & Company Limited, a prominent Indian conglomerate, has received an Income Tax penalty order of Rs 8.19 crore for the Assessment Year 2013-14. The company, however, is contesting the order, calling it "entirely erroneous" and arising from a misinterpretation of facts.

Penalty Details

The Income Tax Department's Assessment Unit issued an order on September 25, imposing a penalty of Rs 8,18,57,865 under Section 271(1)(c) of the Income Tax Act. The penalty was levied for allegedly providing inaccurate particulars of income for the Assessment Year 2013-14.

Company's Response

Forbes & Company has taken a firm stance against the penalty order. In a disclosure to the BSE Limited, the company stated:

• The order is "entirely erroneous and arose out of misinterpretation of the facts for levy of penalty."
• The company is in the process of filing a rectification application and initiating an appeal against the order.
• Forbes & Company believes it has a "strong case on merits" and is confident of succeeding in having the penalty quashed through rectification or appellate proceedings.

Financial Impact

Despite the substantial penalty amount, Forbes & Company does not anticipate any material impact on its financial, operational, or other activities. The company's confidence stems from its belief in the strength of its case and the expectation of a favorable outcome in the appeal process.

Regulatory Compliance

In compliance with SEBI regulations, Forbes & Company has promptly disclosed the details of the Income Tax order to the stock exchange. The disclosure includes all relevant information as required under Clause 20 of Para A of Part A of Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investor Implications

While the penalty order represents a significant amount, Forbes & Company's strong assertion of its position and immediate action to contest the order may provide some reassurance to investors. However, stakeholders will likely keep a close watch on the developments of the appeal process and any potential impact on the company's financials in the coming months.

As the situation unfolds, Forbes & Company's ability to successfully navigate this regulatory challenge will be crucial in maintaining investor confidence and its market position.

Forbes & Company Limited has made two significant announcements following its Board of Directors meeting on August 6, 2025. The company revealed its unaudited financial results for the first quarter of the fiscal year 2026 and disclosed plans for a new real estate development in Thane, Maharashtra.

Q1 FY26 Financial Results

The Board of Directors of Forbes & Company Limited approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2025. These results were reviewed by M/s. Sharp & Tannan Associates, Chartered Accountants, the company's statutory auditors, who provided a Limited Review Report dated August 6, 2025.

New Real Estate Venture in Thane

In a strategic move to expand its real estate portfolio, Forbes & Company Limited announced plans to develop a new project in Thane, Maharashtra. The key details of this ambitious venture include:

• Land Parcel: The project will be developed on a 10,671 square meter (2.63 acres) plot in Thane.
• Project Components: The development is set to feature an Information Technology Park along with other complementary spaces such as retail, commercial, hospitality, and office areas.
• Regulatory Framework: The project will be developed under the IT/ITeS policy framework.
• Approval Status: The company emphasized that the project is subject to obtaining all necessary government, statutory, and other requisite approvals.

This new real estate initiative aligns with Forbes & Company Limited's strategic growth plans, potentially diversifying its revenue streams and strengthening its position in the real estate sector.

Corporate Governance

The Board meeting, which commenced at 12:00 noon and concluded at 2:10 p.m. on August 6, 2025, adhered to the regulatory requirements set by the Securities and Exchange Board of India (SEBI). In compliance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has made these announcements public.

Investors and stakeholders can access further details about these developments on the company's official website at www.forbes.co.in .

As Forbes & Company Limited embarks on this new real estate venture while maintaining transparency in its financial reporting, market observers will be keenly watching how these strategic moves impact the company's future growth and market position.