Ecoboard Industries Limited reports Rs 18.0453 crore demands

Ecoboard Industries Ltd disclosed Rs 18.0453 crore of disputed excise-duty and income-tax demands in its September 30, 2026 results, with no provision recorded while appeals remain pending. The largest component is a Rs 11.1464 crore excise demand, excluding interest and penalties and subject to input tax credit, which is admitted before the Supreme Court.

What disputed excise and tax demands does Ecoboard Industries Ltd face?

Ecoboard Industries Ltd faces three disputed demands totalling Rs 18.0453 crore: Rs 11.1464 crore in excise duty, Rs 5.1044 crore in income tax for assessment years (AY) 2017-18 and 2018-19, and Rs 1.7945 crore in income tax for AY 2023-24. The disclosure accompanied the company’s unaudited standalone results for the quarter and half year ended September 30, 2026.

The excise demand relates to Ecoboard Industries Ltd’s laminated products. The Customs, Excise and Service Tax Appellate Tribunal, or CESTAT, gave partial relief to the company but confirmed Rs 11.1464 crore of demands, subject to input tax credit. That amount excludes interest and penalties, so the filing does not put a figure on either of those possible components.

The excise matter represents Rs 11.1464 crore of the Rs 18.0453 crore aggregate, while the two income-tax cases together represent Rs 6.8989 crore. The aggregate is the sum of demands identified by the auditor, rather than a stated estimate of a final settlement or payment obligation.

Why has Ecoboard Industries Ltd recorded no provision?

Ecoboard Industries Ltd has made no provision in its books for the three disputed liabilities because their appeal proceedings are pending, according to the auditor’s review report dated November 14, 2026. The filing does not state management’s estimate of the probability of success, any expected settlement value, or a timetable for the cases to conclude.

The September 30, 2026 statement of assets and liabilities separately reported provisions of Rs 75.68 lakh under non-current liabilities and Rs 27.26 lakh under current liabilities. However, the auditor specifically stated that no provision had been made for the Rs 18.0453 crore excise and income-tax matters, distinguishing those disputes from the provisions reported on the balance sheet.

Chaturvedi SK & Fellows LLP drew attention to the litigation without qualifying its review conclusion on the September 2026 results. The auditor reviewed the standalone results for the quarter ended September 30, 2026 and the six months from April 1, 2026 to September 30, 2026, and said nothing had come to its attention indicating a material misstatement.

Where do Ecoboard Industries Ltd’s appeals stand?

Ecoboard Industries Ltd’s appeal against the CESTAT excise order has been admitted by the Supreme Court of India for hearing. Before that stage, CESTAT dismissed the company’s application seeking rectification of an apparent mistake in its appellate order that had confirmed the Rs 11.1464 crore demand after partial relief.

For the Rs 5.1044 crore income-tax demand covering AY 2017-18 and AY 2018-19, Ecoboard Industries Ltd appealed to the Income Tax Appellate Tribunal, or ITAT. The ITAT remanded the matter to the Commissioner of Income Tax (Appeals), or CIT(A), for de novo adjudication, meaning it is to be considered again at that appellate level.

The separate Rs 1.7945 crore income-tax demand for AY 2023-24 is at the CIT(A) stage. Ecoboard Industries Ltd said the assessing officer passed the assessment order and that it filed an appeal before the CIT(A), but the November 14, 2026 disclosure provides no outcome or scheduled decision date for either income-tax process.

How do the disputed demands compare with Ecoboard Industries Ltd’s finances?

Ecoboard Industries Ltd’s Rs 18.0453 crore disputed-demand total was higher than its Rs 15.3217 crore total equity at September 30, 2026. Total equity declined from Rs 22.5589 crore at March 31, 2026, as other equity moved to negative Rs 11.0850 crore from negative Rs 3.8478 crore, while equity share capital remained Rs 26.4067 crore.

For the half year ended September 30, 2026, revenue from operations rose to Rs 21.7622 crore from Rs 6.5436 crore in the corresponding 2025 period. Total expenses increased to Rs 31.5088 crore from Rs 12.9543 crore, resulting in a loss after tax of Rs 9.4987 crore compared with a loss after tax of Rs 6.3167 crore a year earlier.

At September 30, 2026, Ecoboard Industries Ltd reported total assets of Rs 62.4590 crore, compared with Rs 60.9640 crore at March 31, 2026. Current borrowings rose to Rs 14.3568 crore from Rs 7.5697 crore, while cash and cash equivalents increased to Rs 85.70 lakh from Rs 31.40 lakh over the same period.

Conclusion

Ecoboard Industries Ltd’s September 2026 disclosure combines Rs 18.0453 crore of unresolved excise and income-tax demands with no related provision in its books. The largest matter is the Rs 11.1464 crore excise dispute, and the aggregate demands exceed the Rs 15.3217 crore total equity reported at the end of the half year.

The next events to watch are procedural: a Supreme Court hearing in the excise case, de novo adjudication by the CIT(A) for AY 2017-18 and AY 2018-19, and the CIT(A) appeal for AY 2023-24. Subsequent results may disclose changes in appeal status, provisions, interest or penalties, or cash payments connected with the Rs 18.0453 crore disputes.