3M India Limited — Important, 26-04-2025: General Updates

The Company has opted for the Direct Tax Vivad Se Vishwas Scheme, 2024, to settle open tax litigations for the period FY 2004-05 to FY 2013-14, with April 30, 2025, as the deadline for application. This decision is expected to lead to a one-time tax liability recognition of approximately ₹119 Crore in the profit and loss statement. The estimated cash outflow to settle these litigations under the scheme is around ₹43 Crore. Additionally, the Company anticipates a refund of approximately ₹10.8 Crore due to previous taxes paid under protest. These tax disputes are currently listed as contingent liabilities, and once finalized, the tax liability will be recorded as a change in accounting estimates for FY 2024-25. Notably, no interest or penalties will be attached to settlements under this scheme, and there’s no material impact on operational activities.