Cummins India Limited has secured a significant victory in its tax appeal, with the Commissioner of Income Tax (Appeals) passing a favorable order that will result in the company receiving INR 2.85 crores. The order, dated March 23, 2026, pertains to the assessment year 2014-15 and marks a positive resolution to a long-standing tax dispute.

Tax Appeal Resolution Details

The Commissioner of Income Tax (Appeals) has granted comprehensive relief to Cummins India Limited in its appeal against the assessment order for assessment year 2014-15. The favorable order provides relief for all additions totaling INR 8.38 crores, which translates to a direct tax impact of INR 2.85 crores that the company is entitled to receive.

Regulatory Compliance and Disclosure

The company has fulfilled its disclosure obligations under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This announcement follows an earlier communication dated August 14, 2023, indicating that the tax matter has been under consideration for an extended period.

The disclosure was made in accordance with:

• Regulation 30 read with Schedule III of the Listing Regulations
• SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026

Financial Impact

The favorable tax order will have a positive financial impact on Cummins India Limited's cash flow and financial position. The company will receive INR 2.85 crores as a result of the tax relief granted by the Commissioner of Income Tax (Appeals).

Litigation Background

The tax dispute involved the Income Tax Department as the opposing party, with proceedings conducted before the Commissioner of Income Tax (Appeals). The successful resolution of this appeal demonstrates the company's effective tax management and legal strategy in handling assessment-related matters.

This positive outcome reinforces Cummins India Limited's commitment to maintaining compliance with tax regulations while protecting shareholder interests through appropriate legal remedies when necessary.

Cummins India Limited has announced a postal ballot to seek shareholder approval for revising the remuneration structure of its Managing Director, Ms. Shveta Arya. The company issued the notice on March 18, 2026, with the cut-off date for determining eligible shareholders set as March 13, 2026.

Proposed Remuneration Changes

The postal ballot seeks approval for significant revision in Ms. Arya's compensation package for the remaining tenure of her appointment until August 31, 2027. The key changes include substantial increases in both basic salary and performance-linked components.

E-Voting Schedule and Process

The company has established a comprehensive remote e-voting framework for the postal ballot process. Shareholders will vote exclusively through electronic means, with no physical ballot forms being distributed.

Public Notice Publication

Following earlier intimations dated March 13, 2026 and March 18, 2026, the company published a public notice by way of advertisement on March 19, 2026. The notice appeared in Business Standard (All Editions) and Marathi newspaper Loksatta (Pune Edition), including their electronic editions, in compliance with Rule 20 and Rule 22 of the Companies (Management and Administration) Rules, 2014.

Rationale for Revision

The board has justified the remuneration revision based on independent industry benchmarking indicating higher compensation levels for comparable leadership roles in the Indian manufacturing and engineering sector. The company states that the increase aligns with Cummins' global philosophy of rewarding senior leadership and reflects Ms. Arya's strong performance and value creation under her leadership.

The Nomination and Remuneration Committee and Board view the enhancement as essential to attract and retain high-calibre leadership aligned with higher standards of governance and performance excellence. The revised structure ensures compensation remains commensurate with strategic responsibilities and expanded regulatory oversight.

Managing Director Profile

Ms. Shveta Arya, aged 46 years, currently leads the Power Systems Business and serves as Managing Director. She was appointed as Additional Director and Managing Director (Designate) effective August 08, 2024, and as Managing Director from September 01, 2024, for a three-year term until August 31, 2027.

Her qualifications include an MBA from Indian Institute of Management, Ahmedabad (IIMA) and a Bachelor's in Engineering in Information Technology from Delhi University. She brings over 20 years of industry and management consulting experience across automotive, travel, financial services, and telecom sectors.

Additional Benefits and Terms

The revised remuneration package maintains existing benefits including life insurance, medical insurance for family members, statutory deductions for Provident Fund and Gratuity Fund, and leave encashment as per company rules. All other terms and conditions of Ms. Arya's appointment approved through postal ballot on October 17, 2024, remain unchanged.

The remuneration revision is subject to limits under Sections 196, 197, and Schedule V of the Companies Act, 2013. Results of the remote e-voting will be declared within two working days from the end of the voting period and will be available on the company website and stock exchange platforms.