Gayatri highways Limited has disclosed to stock exchanges that it received an income tax demand order of Rs. 40,39,680 for Assessment Year 2018-19. The company made this disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Income Tax Demand Details

The company received the demand order on March 2, 2026, from the Assessment Unit of the Income Tax Department. The demand has been issued following an assessment that resulted in certain adjustments to the company's tax calculations.

Nature of Tax Dispute

The assessment order involves two main issues that led to the demand creation. The primary concern relates to the disallowance of certain expenditures by reclassifying them as capital in nature, which has resulted in a reduction of the company's carryforward losses.

Additionally, the company has identified what it believes to be a computational error in the demand calculation. Interest under Section 234C has been charged despite the absence of any actual tax liability, which the company considers incorrect.

Company's Response and Impact Assessment

Gayatri Highways Limited has stated that the income tax demand will have no impact on the financial operations of the company. The management is currently evaluating the demand order to determine the most appropriate course of action.

Next Steps

The company plans to take appropriate legal remedies to address the demand order. This includes filing an appeal against the assessment order and submitting a rectification application to address the computational error regarding interest charges.

The disclosure was made by P. Raj Kumar, Company Secretary and Compliance Officer, ensuring compliance with regulatory requirements for material events that could affect stakeholder interests.

Two major corporate announcements emerged from the Indian market, with ESAB India Limited declaring a substantial interim dividend while Gayatri Highways Limited released its quarterly financial results showing mixed performance.

ESAB India Announces Interim Dividend

ESAB India Limited's Board of Directors declared an interim dividend of Rs.25 per equity share of Rs.10 each, representing a 250% dividend for the financial year 2025-2026. The announcement was made following the board meeting held on February 10, 2026.

The company outlined comprehensive tax deduction guidelines for shareholders. For resident shareholders, tax will be deducted at 10% where valid PAN is provided, and 20% for cases without PAN or with invalid/inoperative PAN. No tax deduction applies for resident individuals if total dividend does not exceed Rs.5,000 annually or if income is below taxable limits with proper declarations.

Tax Exemptions and Documentation

Specific categories of investors can avail tax exemptions by providing relevant documentation:

• Insurance Companies: Declaration of beneficial ownership with IRDAI registration certificate
• Mutual Funds: Declaration under section 10(23D) with SEBI registration certificate
• Alternative Investment Funds: Category I and II AIFs with section 10(23FBA) exemption documentation
• Non-resident Shareholders: Tax deduction at 20% or treaty rate, whichever is lower

Shareholders must submit required documents by February 19, 2026, to avail appropriate tax benefits. The company emphasized that dividend payments will be made only through electronic mode, requiring updated bank account details in demat accounts or physical folios.

Gayatri Highways Reports Q3 Results

Gayatri Highways Limited released its unaudited financial results for the quarter and nine months ended December 31, 2025, showing contrasting performance between quarterly and nine-month periods.

Quarterly Performance (Q3 FY26)

Nine-Month Performance (April-December 2025)

The company's nine-month performance showed significant improvement compared to the quarterly results:

Auditor Qualifications

The statutory auditors expressed qualified conclusions on several matters including:

• Loan Write-back: Zero Interest Subordinate Loan of Rs.17,887.51 lakhs written back from Gayatri Projects Limited during FY 2022-23, subject to confirmation
• Defaulted Loans: Outstanding term loan of Rs.3,822.65 lakhs and accumulated interest of Rs.1,193.21 lakhs to IL&FS Financial Services Limited
• Investment Impairment: Required impairment of Rs.4,431.54 lakhs in Cyberabad Expressways Limited and Rs.458.82 lakhs in Hyderabad Expressways Limited for standalone results

The company maintained an equity share capital of Rs.4,793.04 crores throughout the reporting periods. The financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 12, 2026.

Both companies' announcements reflect different aspects of corporate governance and financial performance, with ESAB India rewarding shareholders through dividends while Gayatri Highways navigates operational challenges despite showing nine-month profitability.