Manorama Industries Limited — Important, 10-08-2026: Disclosure of material issue

Manorama Industries (MANORAMA) is caught in a Customs inquiry over import duties. The issue stems from claiming preferential tariff benefits under the India-UAE trade agreement (CEPA) for Palm Mid Fraction raw material, based on certificates from its UAE supplier. Customs authorities are questioning the eligibility of these imports.

**Impact:** The company has proactively paid **Rs 20.64 Cr** (including duty, interest, and penalty) to the Customs authorities to resolve the matter. This is a one-time cash outflow. However, Manorama does not expect any other material adverse impact on its financial position or operations beyond this payment and related legal costs.

**Company's Response:** Manorama acted swiftly, making the payment before any formal demand from Customs. The company firmly believes the UAE supplier provided incorrect Certificates of Origin. Consequently, Manorama has issued a debit note and legal notice to the supplier, demanding full reimbursement of the **Rs 20.64 Cr**. The company is ready to pursue legal action, including arbitration, if the supplier fails to return the amount. Investors should monitor the progress of this recovery effort.