Larsen and Toubro (L&T) were charged with penalties worth Rs 111.31 crore and Rs 127.6 crore by Qatar’s income tax authorities, citing variation in the income declared by the company against the authorities’ assessment.

The company has received a penalty for the fiscal year 2017 and fiscal year 2018 tax period.

The company’s regulatory filing said, “An appeal has been filed against the levy of this penalty as the company believes it is arbitrary and unjustified.”

The company also said that they are reasonably confident of a favourable outcome at the appellate level and added that there is no material adverse impact on the company’s financial, operations or other activities.

Earlier in October, the Reserve Bank of India had imposed a monetary penalty of Rs 2.50 crore on the company’s subsidiary, L&T Finance, for rule violation.

The Middle East is the second most important region for the company, as in the first half of the current fiscal year, it accounted for 41% of its order inflow. The order from this region stood at 32% of its Rs 4,50,700 crore order book as of 30 September.

In its July-September quarter report, the company reported a 45% year-on-year increase in its net profit to Rs 3,223 crore. The company also reported a 19% year-on-year increase in its consolidated revenue at Rs 51,024 crore from Rs 42,763 crore reported in the same quarter last year.