DCM Shriram Limited announced This is in furtherance to earlier intimation dated March 05, 2024 under Regulation 30 of SEBI LODR Regulations, regarding three electricity duty orders, inter-alia communicating penalty levied by Joint Commissioner, State Tax, Commercial Taxes Department on the Company amounting to IMR 0.003 million, besides electricity duty & interest aggregating to INR 1,35.638 million. The said authority had also stated that electricity duty is leviable on all consumption of electricity by the captive power plants, even if it is auxiliary energy consumption. Accordingly, the Company had filed an appeal /stay applicable against these demands /Duty Orders.

Now, the Government of Rajasthan, vide its Notification dated July 10, 2024, has allowed rebate of electricity duty and waived interest and penalty, payable on auxiliary energy consumption of self- generated energy used exclusively for generation of energy in captive power plants, provided that the party deposits 10% of past demand of the Principal amount outstanding since 2014-15 to 2024-25. Details of the violation(s) /contravention(s) committed or alleged to be committed: The Authority has stated that electricity duty is leviable on all consumptions of electricity by the captive power plants, even if it is auxiliary energy consumption. The amount pertaining to Electricity duty of INR 72.6 million for 2014-15 to 2016-17 has been fully provided for in books of accounts in Mar'23 and the company is continuing with provisions in books for all subsequent periods till now.

Further, the Company is in the process of filing appeal against these Duty Orders.