Vinyl Chemicals (India) Limited Announces Rs. 7 Dividend Per Share for FY26 with Tax Deduction Guidelines

Vinyl chemicals (India) Limited has announced a dividend of Rs. 7 per equity share for the financial year ended 31st March, 2026. The Board of Directors recommended this dividend at their meeting held on 24th April, 2026, subject to approval at the ensuing Annual General Meeting.

Dividend Declaration Details

The company has declared the following dividend structure for FY26:

Parameter: Details Dividend Amount: Rs. 7 per equity share Share Face Value: Re. 1 each Board Meeting Date: 24th April, 2026 Financial Year: Ended 31st March, 2026 Document Submission Deadline: 20th May, 2026

Tax Deduction Guidelines for Resident Shareholders

Under Section 393(1) of the Income-Tax Act, 2025, the company is required to deduct tax at source on dividend payments. For resident shareholders, specific exemptions and rates apply based on their category and documentation provided.

Resident Individual Shareholders

Resident individuals can avoid tax deduction under the following conditions:

Total dividend amount during FY 2026-27 does not exceed Rs. 10,000

Valid Form No. 121 is provided meeting all eligibility conditions

Exemption certificate is issued by the Income-tax Department

The standard tax deduction rate is 10% for shareholders with valid PAN registration. However, shareholders without PAN or with invalid/inoperative PAN not linked with Aadhaar will face 20% tax deduction under Section 397(2) of the IT Act, 2025.

Resident Non-Individual Categories

Several categories of resident non-individuals are exempt from tax deduction upon providing appropriate documentation:

Category: Requirements Insurance Companies: Self-declaration as 'Insurer' with IRDA/LIC/GIC registration Mutual Funds: SEBI registration and Schedule VII notification Alternative Investment Funds: Category I or II AIF registration with SEBI NPS Trust: Qualification as NPS trust under Indian Trusts Act, 1882

Non-Resident Shareholder Tax Provisions

Non-resident shareholders face different tax treatment under domestic tax law and Double Tax Avoidance Agreement (DTAA) provisions.

Domestic Tax Law

Under domestic provisions, non-resident shareholders are subject to 20% withholding tax (plus applicable surcharge and cess) on dividend amounts. This rate can be reduced if shareholders provide certificates under Section 393/395 of the IT Act, 2025 for Tax Year 2026-27.

DTAA Benefits

Non-resident shareholders can opt for DTAA benefits if more favorable than domestic rates. Required documentation includes:

Self-attested copy of PAN card

Tax Residency Certificate for the period 1st April, 2026 to 31st March, 2027

Form 41 filed online at the income tax portal

Self-declaration of treaty eligibility and beneficial ownership

SEBI registration certificate for FII/FPI investors

Document Submission Process

The company has established specific channels for document submission to ensure appropriate tax deduction rates:

Shareholder Type: Submission Method Resident Shareholders: Online portal or email to Csgexemptforms2627@in.mpms.mufg.com Non-Resident Shareholders: Email to cs.vinylchemicals@pidilite.com Submission Deadline: 20th May, 2026

Important Compliance Requirements

Shareholders must ensure their records are updated with correct information including tax residential status, PAN, email address, and mobile number. For demat shares, updates should be made through Depository Participants, while physical shareholders should contact the Registrar and Transfer Agent, MUFG Intime India Private Limited.

The company emphasizes that PAN-Aadhaar linking is mandatory, and failure to comply will result in higher tax deduction rates. Shareholders can verify their PAN status and link with Aadhaar through the income tax department's portal.

Bank Account Update Requirement

For physical shareholders, SEBI regulations mandate that dividend payments effective 1st April, 2024 shall be made only through electronic mode. Physical shareholders must furnish their PAN, nomination choice, contact details, bank account details, and specimen signature to receive dividend payments.

The company has advised shareholders to consult their tax advisors for comprehensive guidance on dividend-related tax implications, as the communication does not cover all potential tax consequences.

vinyl chemicals (India) Limited has announced its audited financial results for FY26, reporting a net profit of Rs 1650 lakhs. The company's board has recommended a dividend of Rs 7 per equity share to shareholders, along with comprehensive guidelines for tax deduction at source.

Financial Performance Overview

The company delivered solid financial performance during FY26, with total income reaching Rs 66363 lakhs compared to Rs 63026 lakhs in the previous year. The annual results were approved by the Board of Directors at their meeting held on April 24, 2026.

Financial Metric: FY26 FY25 Change Total Income: Rs 66363 lakhs Rs 63026 lakhs +5.29% Revenue from Operations: Rs 65244 lakhs Rs 62525 lakhs +4.35% Net Profit: Rs 1650 lakhs Rs 2233 lakhs -26.11% Earnings Per Share: Rs 8.99 Rs 12.17 -26.13%

Quarterly Results

For the fourth quarter ended March 31, 2026, the company reported revenue from operations of Rs 17984 lakhs and net profit of Rs 465 lakhs. The quarterly performance showed improvement in revenue generation despite challenging market conditions.

Q4 Performance: Q4 FY26 Q4 FY25 Change Revenue from Operations: Rs 17984 lakhs Rs 17288 lakhs +4.03% Net Profit: Rs 465 lakhs Rs 727 lakhs -36.04% Earnings Per Share: Rs 2.53 Rs 3.96 -36.11%

Dividend Recommendation and Tax Guidelines

The Board of Directors has recommended a dividend payment of Rs 7 per equity share of Re 1 each for FY26. This dividend proposal, aggregating to Rs 1283.59 lakhs, will be subject to approval by shareholders at the 40th Annual General Meeting. In terms of Section 393(1) of the Income-Tax Act, 2025, dividends are taxable in the hands of shareholders, and the company will deduct tax at source at the time of payment.

For resident shareholders with valid PAN, tax will be deducted at 10%. Shareholders without PAN or with invalid PAN not linked with Aadhaar will face TDS at 20%. Resident individuals may be exempt from TDS if their total dividend for FY 2026-27 does not exceed Rs 10,000 or if they provide valid Form 121. Resident non-individuals such as insurance companies, mutual funds, AIFs, and NPS Trust may claim exemption by submitting specific declarations and documents.

Non-resident shareholders will be subject to withholding tax at 20% plus applicable surcharge and cess under domestic tax law, or may opt for beneficial rates under Double Tax Avoidance Agreement (DTAA) by submitting required documents including Tax Residency Certificate and Form 41.

Document Submission Deadline

Shareholders must update their records including tax residential status, PAN, email address, and mobile number with their depository participants or the Registrar and Transfer Agent, M/s. MUFG Intime India Private Limited. All tax-related documents must be submitted on or before May 20, 2026, to ensure correct tax deduction. Resident shareholders can upload Form 121 and other documents at the designated portal, while non-resident shareholders should email documents to cs.vinylchemicals@pidilite.com .

Balance Sheet Position

The company's total assets stood at Rs 23333 lakhs as of March 31, 2026, compared to Rs 26217 lakhs in the previous year. Total equity increased to Rs 13025 lakhs from Rs 12666 lakhs, reflecting the company's stable financial position.

Balance Sheet Highlights: FY26 FY25 Total Assets: Rs 23333 lakhs Rs 26217 lakhs Total Equity: Rs 13025 lakhs Rs 12666 lakhs Current Assets: Rs 22968 lakhs Rs 26044 lakhs Current Liabilities: Rs 10108 lakhs Rs 13476 lakhs

Regulatory Compliance

The company has filed its audited financial results under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditors, M/s. Mehul Gada & Associates, Chartered Accountants, have issued an unmodified audit opinion on the annual audited financial results for FY26. Shareholders can view their TDS credit in Form 168 through the income tax department's e-filing portal post-dividend payment.