Disclosure of material issue

**Issue:** CG Power and Industrial Solutions Limited received a revised tax demand of Rs. 215.59 crores for Assessment Year 2022-23 following a revisionary assessment and subsequent rectification order by the Income Tax Department. **Impact:** While a substantial tax liability has been raised, it creates temporary cash flow outflows for payments and adjustments, though the core demand is not immediately enforceable in full. **Company’s Response / Mitigation:** The company has filed an appeal before the Commissioner of Income Tax (Appeals) [CIT(A)] against the additions and disallowances.

Additionally, it has secured a stay on the balance tax demand until the disposal of the appeal, conditional upon paying 20% of the total tax demand (including Rs. 30 crores payable in five instalments) and utilizing applicable refund adjustments.