V-Guard Industries Ltd. Subsidiary Receives Tax Demand Notices from West Bengal Authorities

Kochi, January 31, 2025 – V-Guard Industries Ltd. (BSE: 532953, NSE: VGUARD) has informed the stock exchanges that its wholly-owned subsidiary, Sunflame Enterprises Private Limited (Sunflame), has received three demand notices from the Assistant Commissioner of Revenue, Alipore Charge, Commercial Taxes, West Bengal. The company is currently reviewing these notices for further action.

Details of the Notices​

The notices pertain to the pre-acquisition period of Sunflame and are covered under the representations and warranties clause of the acquisition agreement. The specifics of the notices are as follows:

Financial & Operational Impact​

The cumulative demand from the three notices amounts to ₹45,25,495 (tax + interest). Given that these liabilities stem from the pre-acquisition period, V-Guard has indicated that the matter falls under the representations and warranties provided during the acquisition of Sunflame.

Company Statement​

V-Guard stated that Sunflame is actively reviewing the notices and will take appropriate steps. The company has assured stakeholders that the impact on its financials will be assessed and disclosed as required.

---

Investor Takeaway​

Investors will keenly watch how V-Guard manages this tax demand, particularly given the pre-acquisition nature of the liabilities. While the company has noted that these are covered under warranties, any unexpected financial impact may be a factor to monitor in future earnings reports.