Crompton Greaves Consumer Electricals Limited receives notice of demand under section 156 of the Act raising demand of INR 686,659,820 (Tax-INR 571,290,684 and Interest ? INR 115,369,136) pursuant to the assessment order passed by the Assessment Unit, Income Tax Department under section 143(3) read with section 144B of the Act dated March 20, 2024 for the Assessment Year 2022-23. Name of the authority who has passed the order: Assessment Unit, Income Tax Department.

Details of the violation(s)/contravention(s) committed or alleged to be committed: Demand has been raised on account of following disallowances: · Disallowance of ESOP expenses · Disallowance of clai006D of provisions against warranty and after sale service · Disallowance of depreciation on goodwill. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: The Company will be required to deposit 20% of the demand amount in dispute i.e., INR 137,331,964 at the time of filing an appeal. The Company is also in the process of filing stay application with the Income tax department.

Impact on financials ­INR 540 million (Approx.) Further, based on the Company's assessment, prevailing law and basis the advice of the consultant, the Company reasonably expects a favorable outcome at the Appellate level. The Company will file an appeal before the National Faceless Appeal Centre (NFAC) within the timeline as prescribed under section 249 of the Act. The Company will also file rectification application with the Assessing Officer for mistake apparent in the above assessment order within the timeline as prescribed under section 154 of the Act.