NSE/BSE Codes: BSE: 532370, NSE: RAMCOSYS

Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure regarding the settlement of a tax dispute involving the company's Philippine subsidiary with the Commissioner of Internal Revenue, Philippines.

Involved Parties / Authorities:

  • Ramco System Inc., Philippines (RSI) - 100% subsidiary of Ramco Systems Limited
  • Commissioner of Internal Revenue (CIR), Philippines

Date / Timeline of Event:

  • August 29, 2025: Original Final Assessment Notice/Formal Letter of Demand issued by CIR
  • September 10, 2025: RSI received the demand notice
  • September 11, 2025: Company's previous intimation to exchanges
  • September 29, 2026: Final Decision issued by CIR
  • September 30, 2026: Final Decision received by RSI and payment made
  • October 01, 2026: Current intimation filed with exchanges

Brief Description of Outcome / Dispute:

The dispute involved multiple tax assessments for Financial Year 2022-23, including Income Tax, Value Added Tax, Expanded Withholding Tax, Withholding Tax on Compensation, Final Withholding Tax, Final Withholding of Value Added Tax, Documentary Stamp Tax, and Interest. The original demand was for PHP 72.40 million (approximately ₹112.00 million) plus a compromise penalty of PHP 45,000 (approximately ₹0.07 million). After administrative protest and representations, the final settlement reduced the liability to PHP 3 million (approximately ₹4.60 million) including a compromise penalty of PHP 20,000 (approximately ₹0.03 million).

Impact of Outcome:

Financial Impact:
  • Original demand: PHP 72.40 million (approximately ₹112.00 million)
  • Final settlement amount: PHP 3 million (approximately ₹4.60 million)
  • Reduction in liability: PHP 69.40 million (approximately ₹107.40 million)
  • Payment made on September 30, 2026, settling the matter completely
Operational / Business / Strategic Impact:

The matter has been fully settled with the Philippine tax authorities, eliminating uncertainty and potential future litigation costs. No ongoing operational impact disclosed.

Other Implications:

The successful resolution through administrative protest demonstrates the company's compliance approach and reduces reputational risk associated with tax disputes.

Next Steps / Required Actions:

No further actions required as the matter has been fully settled with the payment made on September 30, 2026.