Carraro India Limited shareholders approved all eight ordinary resolutions at its 29th Annual General Meeting held on September 10, 2026, including the declaration of a final dividend of ₹6.75 per equity share for FY26.

The meeting was conducted via Video Conferencing and Other Audio-Visual Means. Remote e-voting took place from September 7 to September 9, 2026, with additional e-voting available during the meeting. M/s. Mehta & Mehta served as scrutinizers for the process.

Voting Participation

Total shares held as on the record date of September 3, 2026, stood at 56,851,538. A total of 47,823,974 votes were polled across various resolutions, representing approximately 84.12% participation from outstanding shares. Promoter group members held 39,095,857 shares (100% voted in favour where applicable), while public institutions held 9,719,106 shares and non-institutional public shareholders held 8,036,575 shares.

Key Resolutions Passed

Shareholders voted in favor of several ordinary resolutions, including the adoption of financial statements, dividend declaration, and director re-appointments.

Governance and Compliance

The Board of Directors addressed members regarding the company’s performance and strategic outlook. The Secretarial Audit Report contained no qualifications with material adverse effects, except for an observation on a material related party transaction for FY26, to which the Board provided a reply included in its report.

Mr. Ettore Francesco Sequi, Chairman, presided over the proceedings. Other directors present included Vice Chairman Mr. Tomaso Carraro and Managing Director Dr. Balaji Gopalan. Mr. Enrico Gomiero was absent due to unforeseen exigencies.

Carraro India Ltd has received an order-in-original from the Commissioner of Customs demanding ₹15.25 crore in differential IGST along with a ₹5 crore penalty. The notice, dated September 1, 2026, was received by the company on September 3, 2026.

The order stems from a dispute over the classification of certain imports made by the company. The Customs authority confirmed its approach regarding the applicable IGST rate, rejecting the company’s technical and legal submissions. These submissions had relied on earlier orders involving similar matters.

Regulatory Action Details

The Commissioner of Customs (NS-V), Jawaharlal Nehru Customs House in Nhava Sheva, passed the order under Section 114AA of the Customs Act, 1962. The financial implications are detailed below:

The company had previously received a Show Cause Notice on September 1, 2025, which preceded this final order. The current order confirms the differential tax demand along with applicable interest and penalties based on the rate adopted by the company for these specific imports.

What the Numbers Show

The total financial exposure of ₹20.25 crore represents a significant non-operational liability. While the IGST demand constitutes approximately 75% of the total amount, the flat ₹5 crore penalty under Section 114AA indicates a regulatory stance on procedural or classification compliance rather than just tax recovery. This structure suggests the dispute is rooted in interpretation of customs codes rather than mere valuation errors.

Company Response and Next Steps

Carraro India stated that the order was received notwithstanding its legal submissions. The company intends to challenge the order-in-original before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) within the prescribed timeline.

Management believes it has a strong case on merits and expects appropriate relief from the appellate forum. The company disclosed that there is no immediate impact on its financial, operational, or other activities owing to this order. The appeal process will determine the final resolution of this regulatory matter.