Diligent Media Corporation Limited has received an Order dated April 19, 2024 from the Office of Assistant Commissioner of State Tax, Mumbai, Department of Goods and Service Tax. Nature and details of the action(s) taken, initiated or order(s) passed: An Order has been received by the Company in the name of Pri-Media Services Private Limited (`Pri-Media') (an erstwhile entity merged with Diligent Media Corporation Limited with effect from April 1, 2017). The Order pertains to the financial year 2018- 19, wherein the department has contended un-declared turnover and imposed tax of INR 31,62,788/- (Rupees Thirty-one Lakhs Sixty Two Thousand Seven Hundred Eighty Eight only) and interest & penalty of INR 37,32,090/- (Rupees Thirty-seven Lakhs Thirty Two Thousand Ninety only) on the said turnover. Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority: The Order was received by the Company on April 22, 2024. Details of the violation(s)/contravention(s) committed or alleged to be committed: Authority issued the Order, demanding tax and imposing penalty/interest amounting to INR 68,94,878/- (Rupees Sixty Eight Lakhs Ninety Four Thousand Eight Hundred and Seventy Eight only) on the undeclared turnover of Pri-Media during the period from April 2018 to March 2019.
The Company is in the process of evaluating suitable course of action against the said Order. Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible: Based on Company's assessment, the aforesaid demand is not maintainable and the Company is evaluating all options including filing an appeal against the said Order. The Company did not envisage any relevant impact on financials, operations or other activities of the Company.