Kokuyo Camlin Limited has disclosed receiving a GST assessment order from Bihar tax authorities, raising a total demand of ₹95.42 lakh for the financial year 2021-22. The company made this disclosure under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Assessment Details

The Office of Deputy Commissioner of State Tax Jurisdiction: Patna Special, Central, Bihar issued the order dated December 22, 2025, under section 73(9) read with section 50 of the BGST/CGST Act/Rule 2017. The assessment pertains to demands for Goods and Service Tax along with interest and penalty.

Tax Component Breakdown

The tax demand of ₹54.17 lakh comprises multiple GST categories:

Company's Response and Impact Assessment

Kokuyo Camlin has stated that there is no material impact on the company's financial, operational, or other activities due to this tax order. The company emphasized that all required documents were duly submitted to the authorities during the assessment process.

However, the company noted that the order was passed without providing the benefit of a personal hearing, despite the submission of necessary documentation. This procedural concern forms part of the company's grounds for challenging the assessment.

Legal Recourse

The company has confirmed that the current order is appealable and has decided to file an appeal with the Commissioner of Appeals. This legal recourse allows Kokuyo Camlin to present its case and challenge the assessment order through the established appellate process.

The disclosure was made in compliance with regulatory requirements, ensuring transparency with stakeholders regarding potential tax liabilities and the company's response to the assessment order.

Kokuyo Camlin Limited , a well-known stationery and art materials manufacturer, has released its financial results for the second quarter of fiscal year 2026, revealing a challenging period for the company. The results, accompanied by a modified conclusion from the auditors, highlight both financial struggles and ongoing accounting concerns.

Financial Performance

For the quarter ended September 30, 2025, Kokuyo Camlin reported:

The company's performance for the first half of FY26 also showed a decline:

Auditor's Modified Conclusion

The company's auditors expressed a modified conclusion in their limited review report, citing a significant issue from the previous year:

• Inventory discrepancies of ₹2,356.81 lakh were identified in the previous year.
• These discrepancies were between physical quantities recorded in books and actual physical inventory.
• The management has not identified the possible impact of these discrepancies on prior periods.
• This constitutes a departure from Indian Accounting Standards, which require retrospective correction of material prior period errors.

Management Response and Board Meeting

The company's board of directors approved the unaudited financial results in a meeting held on November 4, 2025. The meeting commenced at 2:30 p.m. and concluded at 4:05 p.m.

Forensic Audit and Ongoing Investigations

In response to the inventory discrepancies:

• An independent external agency was engaged on November 7, 2024, to conduct a forensic audit.
• The audit covered the period from April 2021 to September 2024 at one of the company's plants.
• The forensic audit report, dated February 11, 2025, is available on the Stock Exchange website along with management comments.

Conclusion

Kokuyo Camlin's Q2 FY26 results reflect a challenging period for the company, with a shift from profit to loss and declining revenues. The ongoing issues related to inventory discrepancies and the auditor's modified conclusion underscore the need for the company to address these accounting concerns promptly. Investors and stakeholders will likely be watching closely to see how Kokuyo Camlin navigates these challenges and works to improve its financial performance in the coming quarters.