DCM Shriram Faces Rs. 40 Crore Impact as UP Reinstates Fees on Denatured Alcohol

DCM Shriram Limited has informed the stock exchanges BSE Limited and the National Stock Exchange of India regarding the communication it has received from the Excise Commissioner of Uttar Pradesh because of the reinstatement of import/export fees on denatured alcohol. This development is followed by an order by the Hon’ble Supreme Court dated 23rd October 2024, which upheld the right of the State to charge such fees.

As per the new update the Excise Commissioner of UP has cancelled an earlier order issued in 2018 which had suspended the collection of these fees. The state authority has decided to re-impose the import/export charges on denatured alcohol that was officially brought to the company’s notice on 11th July 2025 with the new move.

The fees have been imposed with the retrospective effect which covers the period from the FY 2018-19 to FY 2025-25. So, the company may have to pay the charges for all these years during which the fees were not being collected due to the earlier suspension.

The company said that while this action may lead to a financial implications of up to Rs. 40 crore, there is not any material impact on its operations or business activities. The financial exposure is currently being reviewed internally.

The company is choosing legal options through appropriate forums and is in the process of evaluating the best course of action to deal with this matter. It has also made the information available on its official website for public access.

This update is made in accordance with the applicable regulations under SEBI’s Listing Obligations and Disclosure Requirements, and the company has requested the stock exchanges to take the information on record.