Snowman Logistics Limited received Demand Notice issued by Income Tax Department pursuant for the assessment year 2019-2020 & 2023-2024. Pursuant to the assessment proceedings, the Company has received demand notices received on July 10, 2024 under Section 156 of the Income Tax Act, 1961, from the Income Tax Department for INR 25.7 million based on difference of opinion on the interpretation of the legal provisions under Section 35 AD of Income-Tax Act, 1961. Certain credits have not been provided for which the Company is filing an application for rectification under section 154 of the income Tax Act, 1961.

Simultaneously, an appeal is also being filed against the assessment orders. Company has already taken provision of INR 43.4 million as an abundant precaution in last financial year and now see no impact on financials, operations or other activities of the Company.