Kirloskar Brothers Limited — Important, 17-02-2025: General Updates

A notice has been received by the majority of Kirloskar Brothers Limited's directors, claiming tax arrears of ₹15.48 Cr for the year 2023-24 under the Andhra Pradesh GST Act. This claim relates to a joint venture with IVRCL and Megha Engineering & Infrastructure Ltd. for a project with the Water Resources Department of Andhra Pradesh. The notice alleges that the joint venture failed to respond to previous demand notices regarding tax payments. Given the recent corporate insolvency resolution proceedings against IVRCL, which was the lead partner, Megha Engineering has since taken over the outstanding project work and associated liabilities. The company is currently assessing the notice's implications with legal counsel and does not expect any immediate financial impact at this point. Investors should monitor this situation closely, as developments may arise.