Guard Industries Grants 72,655 Stock Options to Eligible Employees Under ESOS 2013

V-Guard Industries Limited announced the grant of 72,655 stock options to eligible employees under its Employee Stock Option Scheme, ESOS 2013, following approval by the Nomination and Remuneration Committee at its meeting held on May 11, 2026. The grant was disclosed to stock exchanges in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements.

Key Details of the Stock Option Grant

The following table summarises the key parameters of the options granted under ESOS 2013:

Parameter: Details Number of Options Granted: 72,655 options to eligible employee(s) Exercise Price: ₹1/- per option Face Value of Equity Shares: ₹1/- each Vesting Period: Not more than four years from the date of grant Exercise Window: 6 years from the date of vesting Regulatory Compliance: SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021

Vesting Structure and Scheme Terms

The options granted will vest over a period not more than four years, based on time and performance criteria. Time-based options will vest equally over a period not more than four years, while performance-based options will vest in the last year, subject to the achievement of defined performance criteria. Vesting is also contingent on continued employment with the company.

Under the significant terms of ESOS 2013, options vest in not less than one year and not more than four years from the date of grant. The Exercise Price is determined by the Nomination and Remuneration Committee from time to time, but shall not be less than the face value of the shares and not more than the prevailing market value of the shares as on the date of grant.

Lapsed or Cancelled Options

In the event that stock options lapse, are cancelled, or become unexercisable for any reason, the Nomination and Remuneration Committee retains the discretion to decide on the re-issue of such lapsed or cancelled options in accordance with the scheme and applicable laws.

Administration and Compliance

The ESOS 2013 is administered by the Nomination and Remuneration Committee of V-Guard Industries. The scheme is in due compliance with the terms of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The disclosure was signed by Vikas Kumar Tak, Company Secretary & Compliance Officer (Membership No. FCS 6618), and submitted to both BSE Limited and the National Stock Exchange of India Limited on May 11, 2026.

V-Guard Industries Limited has informed stock exchanges about receiving a show cause notice from GST authorities regarding alleged excess Input Tax Credit (ITC) availment. The notice, issued under section 74(1) of the CGST Act, 2017, involves a significant financial implication for the electrical appliances manufacturer.

Show Cause Notice Details

The company received the communication on April 14, 2026, from the Joint Commissioner, CGST, Audit Commissionerate, Dehradun. This notice represents a subsequent step following the final audit report (GST ADT-02) that was previously disclosed by the company on April 7, 2026.

Parameter Details Notice Type Show Cause Notice under section 74(1) of CGST Act, 2017 Issuing Authority Joint Commissioner, CGST, Audit Commissionerate, Dehradun Receipt Date April 14, 2026 Applicable Period FY 2020-21 to 2023-24

Financial Implications

The notice addresses alleged excess ITC availment with substantial financial implications for the company. The GST authorities have identified issues related to inadmissible, wrong, or excess availment of ITC and short payment in GSTR-9 reconciliation.

Financial Component Amount Short Payment of GST ₹17,75,91,197 Interest & Penalty Not quantified

The show cause notice proposes levy of penalty under section 74(1) and interest under section 50(3)/(1), although these amounts have not been quantified by the authorities.

Company's Response Strategy

V-Guard Industries has outlined its approach to address the show cause notice. The company emphasizes that this communication does not constitute a demand order and maintains confidence in its position.

Key aspects of the company's response include:

Evaluation of the show cause notice is currently underway

Preparation of appropriate rebuttal documentation

Strong grounds on merits to challenge the observations

Emphasis that no immediate financial liability has been established

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This represents the company's third communication on related matters, following earlier intimations dated February 1, 2026, and April 7, 2026.

The company has declared that all information provided in the regulatory filing is true, correct, and complete to the best of their knowledge and belief, maintaining transparency with stakeholders regarding this ongoing GST matter.

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