Suzlon Energy Limited informed that National Faceless Assessment Centre, Income Tax Department, has issued orders for Fiscal Year 2015-16 and Fiscal Year 2016-17 levying penalty in respect of disallowance of claim of depreciation on goodwill, disallowance u/s.14A and disallowance u/s.36(1)(va). Based upon the judicial precedents, the Company believes that the penalty proceedings should have been kept in abeyance until conclusion of the quantum appeal against disallowances. Given that the quantum appeal against subject disallowances is still pending before the Tribunal on merits, the Company also believes that the said penalty orders are premature.

Nature and details of the action(s) taken, initiated or order(s) passed: Penalty u/s.271(1)(c) for AY 2016-17 and Penalty u/s.270A for AY 2017-18. Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority: 27th March 2024. Details of the violation(s) /contravention(s) committed or alleged to be committed: Penalty for disallowance u/s.14A of INR 351.1 million, disallowance of depreciation on Goodwill u/s.32(1) of INR 1,324.8 million, addition on account of late payment of PF /ESI u/s.36(1)(va) of INR 11.4 million and Penalty for disallowance u/s.14A of INR 162.9 million, disallowance of depreciation on Goodwill u/s.32(1) of INR 2,318.3 million, addition on account of late payment of PF /ESI u/s.36(1)(va) of INR 14.7 million.

Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: Penalty amounting to INR 875.9 million and Penalty amounting to INR 1,727.6 million.