Greaves Cotton Limited has incorporated a wholly owned subsidiary in the United Arab Emirates to expand its international trading and distribution operations. Greaves International Trading FZE was established in Dubai on June 18, 2026, with the objective of strengthening the company's global market presence and optimising its international supply chain. The strategic move aims to drive business growth in overseas markets by managing the distribution of products and services offered by the parent company.

The subsidiary operates within the engineering industry and is fully owned by Greaves Cotton Limited. The company confirmed the incorporation on June 23, 2026, in a regulatory filing. No specific governmental or regulatory approvals were required for the incorporation, and the details regarding share subscription and consideration were not applicable.

Key Details of Greaves International Trading FZE

The establishment of this subsidiary marks a step in Greaves Cotton's strategy to enhance its operational reach outside India. By centralising international trading activities through the Dubai-based entity, the company intends to streamline its supply chain and better serve overseas markets.

Greaves Cotton has established a deadline of July 23, 2026, for shareholders to submit necessary documentation to determine the appropriate tax deduction at source (TDS) on the recommended dividend of ₹2 per equity share for the financial year ended March 31, 2026. The record date to determine eligibility for the payout remains July 28, 2026, while the 107th Annual General Meeting is scheduled for August 4, 2026. The company emphasized that failure to provide the required details will result in tax deduction at the highest prescribed rate under the Income-tax Act, 2025.

The Board of Directors recommended the dividend at its meeting held on May 6, 2026. The payout is subject to shareholder approval at the AGM. Under the provisions of the Income-tax Act, 2025, dividend is taxable in the hands of shareholders, and the company is obligated to deduct TDS at applicable rates. The specific rate depends on the residential status of the shareholder and the valid documentation submitted.

For resident shareholders, the TDS rate is 10% if a valid PAN is registered. This rate increases to 20% if the PAN is invalid, inoperative, or not registered. Resident individual shareholders are exempt from TDS if the aggregate dividend during the Tax Year 2026-27 does not exceed ₹10,000 or if a valid Form 121 is submitted along with a valid PAN. The company has replaced the erstwhile Forms 15G and 15H with the new Form 121 for the current tax year.

Non-resident shareholders, including Foreign Institutional Investors (FIIs) and Foreign Portfolio Investors (FPIs), face a standard withholding tax rate of 20% plus applicable surcharge and cess. However, they may avail of beneficial rates under Double Tax Avoidance Agreements (DTAA) by submitting a Tax Residency Certificate, a self-declaration in Electronic Form 41, and other prescribed documents. The company reserves the right to seek additional information to verify eligibility for treaty benefits.

Shareholders must upload tax exemption forms with the company's Registrar and Share Transfer Agent, KFin Technologies Limited, or email them to the specified addresses. The company clarified that payable-at-par warrants, cheques, or demand drafts will not be issued for dividend payments. Shareholders holding shares in physical form must ensure their bank account details are updated and KYC compliant to receive payments electronically. TDS certificates will be emailed to registered addresses and reflected in Form 26AS or the Annual Information Statement.

Key Dividend and Tax Compliance Dates