Tax Clouds Gather as Prostarm Faces ₹14.6M Audit Demand

Image Source: The Economic Times

Navi Mumbai-based power solutions firm Prostarm Info Systems Ltd has been sent a show cause notice by the Income Tax Department demanding ₹14.6 million of dues. The notice under sections of the Income Tax Act is for alleged discrepancies in tax returns and balance sheets filed for the last assessment year.

Points to Remember

Amount Demanded: ₹14.6 million
Nature of Notice: Show cause notice—usually made by the department when clarification is required prior to recovery or penalty proceedings
Company's Response: So far, Prostarm has not issued its response or intent to appeal the notice

About Prostarm Info Systems

Established: 2008
Headquarters: Navi Mumbai, Maharashtra
Business: Manufactures UPS systems, solar hybrid inverters, lithium-ion battery packs, and conducts EPC solar projects
Recent Milestone: Got SEBI nod for IPO of up to 1.6 crore equity shares in early 2025

Financial Snapshot (FY24)

Revenue: ₹257.9 crore (12% YoY growth)
Net Profit: ₹22.8 crore (18% YoY growth)
Clientele: Has customers such as Tata Power, L&T, and Bajaj Finance

The news comes at a delicate moment for Prostarm, which is in the process of preparing for public listing. The result of the tax hearings can have implications for investor sentiment and regulatory attention leading up to the IPO.

Sources: Economic Times, Screener, Taxscan