The Ramco Cements Limited has informed the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) regarding the latest development in an ongoing material litigation. The company disclosed that the Income Tax Department has filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging the favorable order issued by the Commissioner of Income Tax (CIT) (Appeals).

The company had previously disclosed this matter in its letter dated August 14, 2023, under Clause 8 of Para B, Part A of Schedule III, read with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The case relates to the disputed tax value of ₹11.60 crores for the Assessment Year 2016-17, where the Income Tax Department treated certain revenue expenditure as capital expenditure.

The appeal before the CIT (Appeals) was decided in Ramco Cements’ favor through an order dated January 21, 2025. The favorable order allowed the company’s claims regarding the nature of the expenses. However, the Income Tax Department has now chosen to escalate the matter by filing an appeal before the ITAT to challenge the decision.

Timeline of Events:

1. Initial Disclosure: Ramco Cements disclosed details of this material litigation through its letter dated August 14, 2023.

2. CIT(A) Decision: The Commissioner of Income Tax (Appeals) ruled in favor of Ramco Cements on January 21, 2025, allowing the company’s claims.

3. Appeal Filed by Income Tax Department: The Income Tax Department filed an appeal before ITAT challenging the CIT(A) order.

4. Intimation Received: The company received intimation of the appeal via courier on March 22, 2025, at 11:30 AM.

This development has been duly communicated to both NSE and BSE to ensure compliance with SEBI regulations. The company has assured that any further updates on this matter will be provided as per the regulatory guidelines.

Potential Implications:

• While the appeal is currently pending before the ITAT, the outcome could have an impact on the company’s financials depending on the final decision.

• The company remains committed to addressing the matter with due diligence and is prepared to defend its position effectively.

Ramco Cements Limited is known for its adherence to regulatory compliance and transparent disclosures. The company’s proactive approach in informing the stock exchanges about any updates related to material litigations underscores its commitment to maintaining investor confidence. Further developments will be disclosed as and when they occur, in accordance with the applicable regulatory framework.

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