Sterling & Wilson Renewable Energy Limited (SWRE) has received significant relief in its ongoing tax dispute with the Kenya Revenue Authority (KRA). The company announced that the tax demand for the period from January 1, 2020, to December 31, 2023, has been substantially reduced following a recent order from the Commissioner of Legal and Board Services Department, Tax Dispute Resolution Department.

Substantial Tax Demand Reduction

The latest development shows a marked improvement in SWRE's tax position in Kenya. The KRA has issued a revised order dated December 12, 2025, significantly reducing the company's tax liability.

Key Factors Behind the Reduction

According to the company's regulatory filing, the primary reason for the tax demand reduction is the lower attribution of profits to SWRE's Kenya Branch. This adjustment has led to a corresponding reduction in both corporate tax and withholding tax implications. However, the demand related to VAT and PAYE (Pay As You Earn) remains unchanged from the earlier order dated September 17, 2025.

Company's Current Position

SWRE has stated that it is currently in the process of evaluating the contents of the revised order and deciding on the future course of action. This measured approach suggests the company is carefully assessing its options before determining whether to accept the reduced demand or pursue further appeals.

Regulatory Compliance and Disclosure

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Chief Financial Officer Ajit Pratap Singh certified the information as true, correct, and complete to the best of his knowledge and belief. The company has referenced its earlier disclosure dated September 18, 2025, maintaining transparency with stakeholders throughout the process.

Financial Impact and Outlook

The substantial reduction of ₹24.60 crore in the tax demand represents a positive development for SWRE's financial position. This relief could potentially improve the company's cash flow and reduce the financial burden related to its Kenya operations. The resolution of this matter will be closely watched by investors and stakeholders as it impacts the company's operational efficiency in the East African market.

Sterling & Wilson Renewable Energy Limited has received a GST order from Haryana authorities concerning input tax credit mismatch for the financial year 2018-19. The company disclosed this development to stock exchanges under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

GST Order Details

The regulatory filing reveals that Haryana GST authorities have issued an order for mismatch of input tax credits. The financial implications of this order are detailed in the table below:

Company Response

Sterling & Wilson Renewable Energy has indicated that it is currently in the process of evaluating the contents of the order. The company stated it is deciding on the future course of action regarding this GST matter. No specific timeline has been provided for the completion of this evaluation process.

Regulatory Compliance

The disclosure was made pursuant to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025. Chief Financial Officer Ajit Pratap Singh signed the regulatory filing, confirming that the information provided is true, correct and complete to the best of his knowledge and belief.

Filing Details

The regulatory disclosure was submitted to both BSE Limited and National Stock Exchange of India Limited on December 11, 2025. The company trades under scrip code 542760 on BSE and symbol SWSOLAR on NSE. The filing included Form A, which provides detailed information about communications received from regulatory authorities.