Muthoot Finance Limited, a leading non-banking financial company, has made significant announcements following its Board of Directors meeting held on July 28, 2025. The company has appointed Thomas Kokkoth as its new Chief Risk Officer and made several other important decisions.

New Chief Risk Officer Appointment

The Board of Directors has approved the appointment of Thomas Kokkoth as the Chief Risk Officer (CRO) of Muthoot Finance for a three-year term, effective August 6, 2025. This appointment aligns with the Reserve Bank of India's notification for NBFCs dated May 16, 2019, regarding the appointment of CROs.

Thomas Kokkoth's Professional Background

Thomas Kokkoth brings a wealth of experience to his new role:

• Over 43 years of banking experience with Federal Bank Limited (January 1978 to November 2021)
• Served as Internal Ombudsman at Muthoot Finance since May 2022
• 11 years in senior management roles, including positions as Deputy General Manager, Assistant General Manager, and Chief Manager
• Extensive experience in compliance risk assurance, asset portfolio management, and regional office leadership

Kokkoth's expertise includes:

• Heading the Compliance Risk Assurance Department at Federal Bank
• Managing asset portfolios and recovery management
• Leading high-value business branches
• Implementing priority banking concepts
• Participating in global depository receipt issuance
• Authoring recovery policies

Additional Board Decisions

The Board meeting, which lasted from 2:00 PM to 4:00 PM (IST) on July 28, 2025, also resulted in several other key decisions:

1. Scheduling of the 28th Annual General Meeting (AGM) through video conferencing on August 30, 2025
2. Proposing to increase the number of directors on the Board to 16, subject to shareholder approval
3. Seeking shareholder approval for the following appointments and re-appointments:
   • Mr. K V Eapen as an Independent Director
   • KSR & Co, Company Secretaries LLP as the Secretarial Auditors
   • Mr. Chamacheril Abraham Mohan for a second consecutive term of 5 years as an Independent Director
   • Mr. Alexander George for a 5-year term as Whole Time Director

These announcements reflect Muthoot Finance's commitment to strengthening its leadership team and corporate governance structure. The appointment of Thomas Kokkoth as CRO, with his extensive banking experience, is expected to enhance the company's risk management capabilities in the evolving financial landscape.

Muthoot Finance , a prominent non-banking financial company, has recently found itself in a tax dispute with the Kerala State GST Department. The company has received a tax demand order totaling Rs 1.52 crore, which it plans to contest.

Breaking Down the Tax Demand

The tax demand order from the Kerala State GST Department comprises:

The Crux of the Dispute

The tax demand stems from allegations that corporate guarantees provided by Muthoot Finance to its subsidiary are taxable under the GST Act. The company has raised objections regarding:

1. Misclassification
2. Valuation principle
3. Non-utilization of the guarantee

However, these objections were rejected by the tax authority.

Muthoot Finance's Stance

Muthoot Finance has firmly stated that it disputes the allegations made in the order. The company's official statement, as per the LODR (Listing Obligations and Disclosure Requirements) filing, asserts:

"The Company is of the firm view that the allegation raised in the Order is not tenable."

Next Steps

In response to this tax demand, Muthoot Finance has announced its intention to file an appeal against the order. The company is currently in the process of preparing this appeal.

Financial Impact

Despite the substantial amount involved in the tax demand, Muthoot Finance has assured its stakeholders that this development will not have a material impact on its financial, operational, or other activities.

Regulatory Compliance

The tax demand order was received by Muthoot Finance on July 22. In compliance with SEBI regulations, the company promptly disclosed this information to the stock exchanges.

As this tax dispute unfolds, investors and market watchers will likely keep a close eye on the appeal process and its potential implications for Muthoot Finance's financial statements in the coming quarters.