3i Infotech Limited — Important, 03-12-2024: General Updates

3i Infotech’s subsidiary in Saudi Arabia is currently facing significant operational challenges due to the Zakat, Tax and Customs Authority (ZATCA) initiating a mandatory collection process. This is related to the non-payment of outstanding withholding tax and income tax, amounting to SAR 11,416,736 (approximately ₹257.32 crore), dating back to financial years 2008, 2009, 2010, and 2019. Employee immigration has been blocked, along with access to other government portal services, impacting operational capabilities.

The subsidiary has begun making payments under an approved Amnesty Scheme, having paid the installments for April and May 2024. However, due to cash flow issues, upcoming installments from June 2024 onward are pending. The subsidiary is actively communicating with ZATCA to resolve the situation. Investors should monitor this issue closely as it poses potential risks to the company's operational stability and financial performance.