NACL Industries Limited has received a communication /demand order for collection of GST along with interest and penalty from Deputy Commissioner, Large Taxpayer Unit: Corporate Division, West Bengal. Order passed confirming demand for GST INR 48,329 (interest of INR 10,884 and Penalty INR 30,000). 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: Alleged for short payment of tax on services received under RCM. There is no material impact on operations or other activities of the Company due to the said order. The Company believes that the above demand is not maintainable and hence is in the process of preferring an appeal against the said order /demand.