Guard Industries Allots 49,290 Equity Shares to 11 Employees Under ESOS 2013

V-Guard Industries Limited has announced the allotment of equity shares to employees under its stock option scheme following a board meeting held on March 25, 2026. The company's directors approved the issuance of shares as part of the Employee Stock Option Scheme 2013, demonstrating the company's commitment to employee participation in its growth.

Board Meeting Details and Allotment

The board meeting commenced at 10:30 AM and concluded at 02:40 PM on March 25, 2026. During this meeting, the directors approved the allotment of equity shares to employees who had exercised their stock options under the company's established scheme.

Parameter Details Type of Securities Equity Shares Face Value per Share ₹1 Total Shares Allotted 49,290 Number of Beneficiaries 11 employees Scheme Employee Stock Option Scheme 2013 (ESOS 2013)

Regulatory Compliance

The allotment was conducted in accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. V-Guard Industries has duly informed both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) about this corporate action, maintaining transparency with regulatory authorities and stakeholders.

Employee Stock Option Scheme Implementation

The issuance represents the exercise of stock options by 11 employees under the company's ESOS 2013 framework. This employee stock option scheme allows eligible employees to acquire equity shares in the company, aligning their interests with those of shareholders and providing them with a stake in the company's future performance.

The company secretary and compliance officer, Vikas Kumar Tak (Membership No. FCS 6618), signed the disclosure document, ensuring proper documentation and regulatory compliance for this allotment process.

V-Guard Industries Limited has received an Assessment Order from the Income-tax Department under the National Faceless Assessment Centre, creating a significant tax demand for the electrical appliances manufacturer. The company disclosed this development through a regulatory filing under Regulation 30 of SEBI Listing Regulations on March 24, 2026.

Assessment Order Details

The income tax assessment order pertains to Assessment Year 2023-24 (Financial Year 2022-23) and was issued following scrutiny assessment proceedings under section 143(3) read with section 144B of the Income-tax Act, 1961. The assessment was concluded by the Assessment Unit of the National Faceless Assessment Centre.

Parameter Details Assessment Year 2023-24 (FY 2022-23) Order Date March 23, 2026 Receipt Date March 24, 2026 Issuing Authority Assessment Unit, National Faceless Assessment Centre

Financial Impact and Tax Demand

The primary issue in the assessment relates to the company's provision for warranty expenses. The income tax authority has treated the closing balance of provision for warranty as a disallowable expenditure, adding ₹35.15 crores to the company's total taxable income.

Financial Impact Amount (₹) Addition to Taxable Income 35,14,75,000 Total Tax Demand (including interest) 10,20,67,830

Penalty Proceedings and Additional Actions

Beyond the tax demand, penalty proceedings have been separately initiated against the company. The income tax department has issued a show cause notice under section 270A of the Income-tax Act for alleged underreporting of income. However, this penalty matter will be adjudicated separately and does not automatically create an additional demand at this stage.

The company has stated that it is in the process of providing detailed rebuttals to the show cause notice for the penalty proceedings.

Company's Response and Legal Strategy

V-Guard Industries has expressed confidence in its position and outlined its response strategy. The company believes it has strong grounds both on facts and in law to challenge the assessment order. The management has indicated two primary courses of action:

Filing an appeal before the Commissioner of Income-tax (Appeals)

Evaluating the option to file a rectification application against the Assessment Order

The company's response demonstrates its intention to contest the tax authority's interpretation regarding the warranty provision treatment, suggesting this could be a prolonged legal process with potential implications for the company's financial planning and cash flow management.

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