SRF Limited (SRF) — Announcement

📢 Key Event
Income Tax Department issued assessment order with technical error resulting in ₹327.44 crores demand; company filed rectification application and ITAT appeal.

🔄 What Changed
Rectification application filed 10th March 2026; ITAT appeal filed 19th March 2026 in response to erroneous assessment order.

🔮 What's Next
Management expects rectification application to reverse the entire ₹327.44 crores demand; ITAT appeal pending.

💡 Investor Takeaway
SRF faces a contingent ₹327.44 crores tax demand due to an admitted departmental error, but management expects full reversal through pending rectification proceedings; no immediate financial impact acknowledged.

⚠️ Risks
Technical error in tax assessment; demand under appeal; contingent liability if rectification fails.

SRF Limited disclosed a tax assessment dispute for FY 2022-23 involving the Income Tax Department. An assessment order added ₹30.54 crores to taxable income, but a technical error resulted in a total demand of ₹327.44 crores (including ₹101.77 crores interest). Management filed a rectification application on 10th March 2026 and an appeal before ITAT on 19th March 2026, believing the entire demand will be reversed. The company considers the order legally unsustainable with no immediate operational impact.

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