NACL Industries Limited has received a communication /demand order for collection of GST along with interest and penalty from Additional Commissioner of Central Tax (GST - Appeals) Guntur. Order passed confirming demand for GST INR 6,379,324 (plus equivalent amount of penalty and interest (not quantified)). Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority is March 15, 2024.

Details of the violation(s) /contravention(s) committed or alleged to be committed: The Company has filed an appeal before the Additional Commissioner of Central Tax (GST - Appeals) Guntur against disallowance of part of TRAN-1 Credit availed. However, the Authority has rejected the subject appeal and impugned order is upheld. There is no material impact on the operations or other activities of the Company due to the said order.

The Company believed that the above demand is not maintainable and hence is in the process of preferring an appeal against the said order /demand.