Material Assessment Order received from Income tax Department, for Assessment Year 2023-24.

Registered Office: Voith Paper Fabrics India Limited 113/114 A, Sector-24 Faridabad (Haryana) Delhi NCR / 121 005 / India Phone +91 129 4292 200 Fax +91 129 2232 072 26th September, 2026 BSE Limited Listing Department, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400 001 Stock Code: 522122; Company Code: 2407 Sub.: Intimation under Regulation 30 (Material Assessment Order from Income Tax Department) Dear Sir / Madam, In pursuance of the requirements of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III attached thereto; please be informed that the Company has received an Assessment Order, including Computation Sheet and Demand Notice of Rs.3,82,08,430/- pertaining to Assessment Year 2023-24; from Income Tax Department on 25/09/2026. Copies of the relevant Assessment Order, including Computation Sheet and Demand Notice are attached for your reference in this regard. Further details as required to be disclosed in pursuance of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD- POD2/I/3762/2026, dated 30/01/2026, are also enclosed herewith as Annexure-A The Company shall explore the options available to it and shall take appropriate action in accordance with the applicable provisions of the Income Tax Act 1961, in the matter. We hope that you would find the above in order. Thanking you. For Voith Paper Fabrics India Limited Deepak Behl Company Secretary ACS No.: 40924 Encl.: As stated. E-mail: voithfabrics.faridabad@voith.com Commercial Registry Certified according to Website:http://www.voithpaperfabricsindia.com NCT of Delhi & Haryana ISO 9001:2015 CIN: L74899HR1968PLC004895 Tax No. / PAN: AABCP0441Q GSTIN: 06AABCP0441Q1ZC Registered Office: Voith Paper Fabrics India Limited 113/114 A, Sector-24 Faridabad (Haryana) Delhi NCR / 121 005 / India Phone +91 129 4292 200 Fax +91 129 2232 072 Annexure-A The details required under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 read with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30/01/2026: Sr. No. Particulars Details 1 Name of the authority Assessment Unit, Income Tax Department Assessment Order u/s 143(3) read with sections 144C(13) & 144B of the Income-tax Nature & details of action(s) taken or 2 Act 1961, for Assessment Year 2023-24; and Order passed to separately initiate penalty proceedings u/s 270A of the Income Tax Act. Date of receipt of direction or order, including any ad-interim or interim 3 September 25, 2026, at 7:27 p.m. orders, or any other communication from the authority; Addition of Rs.10,87,07,276/- to Taxable income of Assessment Year 2023/24; relating Details of the violation(s)/ to TP adjustments in matters of Trading 4 contravention(s) committed or alleged to Segment; Marketing support services; be committed Payment of Royalty; and Intra-Group services. Impact on financial, operation or other Demand of Rs. 3,82,08,430/- by the Income 5 activities of the listed entity, quantifiable tax Department. in monetary terms to the extent possible. E-mail: voithfabrics.faridabad@voith.com Commercial Registry Certified according to Website:http://www.voithpaperfabricsindia.com NCT of Delhi & Haryana ISO 9001:2015 CIN: L74899HR1968PLC004895 Tax No. / PAN: AABCP0441Q GSTIN: 06AABCP0441Q1ZC GOVERNMENT OF INDIA MINISTRY OF FINANCE INCOME TAX DEPARTMENT 1. PAN AABCP0441Q 2. Name of the assessee VOITH PAPER FABRICS INDIA LIMITED 3. Address of the assessee 113/114-A Sector 24, Faridabad Sector 22 S.O Faridabad, FARIDABAD 121005, Haryana, India 4. Assessment Year 2023-24 5. Status COMPANY 6. Residential Status Resident 7. Date of filing of Return of Income 28/11/2023 8. Acknowledgement Number of Return of 530634701281123 Income 9. Date of processing u/s 143(1)(a) of the 13/01/2024 Income-tax Act. 10. Income Computed under section 143(1) of the 11. Date of service of Notice under section 143(2) 19/06/2024,19/06/2024,19/06/2024 of the Income-tax Act 12. Date(s) of issue of Notice(s) under section 22/10/2024,29/08/2025,18/12/2025 142(1) of the Income-tax Act 13. Order passed under section 143(3) r.w.s 144C(13) read with section 144B of the Income-tax Act 14. Returned Income Rs. 43,07,14,990 15. Date of Order 25/09/2026 16. DIN ITBA/AST/S/143(3)/2026-27/1093935068(1) ASSESSMENT ORDER *061636021001ABTI* 1. Reasons for selection of the Case and Type of Case and background facts:-The assessee, M/s Voith Paper Fabrics India Limited, PAN- AABCP0441Q filed its electronic return of income for the Assessment Year (A.Y.) 2023-24 on 28.11.2023. In this return, the assessee declared a total taxable income of (cid:0) 43,07,14,990/-. 1.1 Selection for Scrutiny: The case was subsequently selected for Complete Scrutiny through the Computer Assisted Scrutiny Selection (CASS) system. The specific risk parameters identified by the system for selection were as follows: • Mismatch in TDS Disallowance u/s 40(a)(ia): The case was flagged due to a significant discrepancy between the statutory disallowances reported in the Note:- The website address of the e-filing portal has been changed from www.incometaxindiaefiling.gov.in to www.incometax.gov.in. AABCP0441Q- VOITH PAPER FABRICS INDIA LIMITED A.Y. 2023-24 ITBA/AST/S/143(3)/2026-27/1093935068(1) Income Tax Return (ITR) and the Tax Audit Report (Form 3CD). Specifically, the system identified that the quantum of disallowance u/s 40(a)(ia) on account of non-compliance with the provisions of Chapter XVII-B (TDS) reported in Part A-OI of the ITR was lower than the amount reported by the auditor in Column 34 of the Tax Audit Report (Form 3CD). • High-Risk International Transactions (CbCR Data): The entity was identified as a high-risk Indian Constituent Entity (CE) of a Multinational Enterprise (MNE) group based on Country-by-Country Reporting (CbCR) data. The selection was aimed at verifying the transparency and accuracy of cross-border transactions and ensuring that the Indian CE is not being used for base erosion or profit shifting within the high-risk MNE group. • Transactions involving Intangible Property: The system identified a large value of international transactions in the nature of intangible property (such as Technical Know-how fees and Royalties) relative to the assessee's total turnover. These transactions were flagged to examine the adherence to the Arm’s Length Principle and to verify the "Benefit Test"—ensuring that the payments made for such intangibles were commensurate with the actual economic benefits derived by the Indian entity. • Verification of Large Expenses and Deductions: Beyond the specific system-generated flags, the case was selected for complete scrutiny to verify the genuineness and documentary evidence of all major expenses incurred and deductions claimed by the assessee during the year, ensuring that they are wholly and exclusively for the purpose of business. 1.2 Background Facts: • Nature of Business: The assessee is a public limited company primarily engaged in the business of manufacturing and contract manufacturing of industrial felts used in the paper and pulp industry. • Registered Office: The company operates from its registered office located at 113/114-A, Sector 24, Faridabad-121005, Haryana, India. • Group Structure: The assessee is a subsidiary within the global Voith Group and enters into significant international transactions with its Associated Enterprises (AEs), including the payment of technical know-how fees and royalties. 2. Details of opportunities given: Type of notice/ Date of notice/ Date of Response Date of Response Remarks, if Page 2 of 32 AABCP0441Q- VOITH PAPER FABRICS INDIA LIMITED A.Y. 2023-24 ITBA/AST/S/143(3)/2026-27/1093935068(1) communicationcommunicationcompliance of the response if type (Full/ any given assessee received Part/ received/ Adjournment) received Notice u/s 19.06.2024 04.07.2024 143(2) Notice u/s [Showing first 8,000 characters — download PDF for full document]