ZF Steering Gear (India) Limited has submitted its compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026. The certificate confirms the company's adherence to dematerialization requirements and regulatory compliance standards.

Regulatory Compliance Certificate

The company filed the mandatory certificate with BSE Limited on April 6, 2026, as part of its quarterly compliance obligations. The certificate was issued by MUFG Intime India Private Limited, the company's Registrar and Share Transfer Agents.

Certificate Confirmation Details

MUFG Intime India Private Limited confirmed that securities received from depository participants for dematerialization during Q4FY26 were properly processed within prescribed timelines. The registrar verified that all security certificates received for dematerialization were confirmed or rejected appropriately.

Key Compliance Confirmations

Corporate Governance

The filing was signed by Satish Mehta, Company Secretary and Compliance Officer (Membership No.: F3219), demonstrating the company's commitment to maintaining proper corporate governance standards. The certificate ensures transparency in the dematerialization process and confirms that the company has met all regulatory requirements for the quarter.

The submission reflects ZF Steering Gear's ongoing compliance with SEBI regulations and its commitment to maintaining proper records and procedures for share transfer and dematerialization activities.

ZF Steering Gear (India) Limited has received an unfavorable outcome in its long-standing tax appellate proceedings, with the Commissioner of Income Tax (Appeals) disallowing the company's deduction claims for multiple assessment years spanning nearly a decade. The company has subsequently provided clarification to BSE regarding the timing of its regulatory disclosure.

Appellate Proceedings Outcome

The Commissioner of Income Tax (Appeals)-28, Delhi, has disposed of the company's appeals through orders dated March 27, 2026, disallowing ZF Steering Gear's claims for deduction under Sections 80-IA and 80-IB of the Income Tax Act, 1961. These claims covered assessment years from 1995-96 to 2004-05.

Disclosure Timeline Clarification

Following BSE's inquiry about the delay in disclosure, ZF Steering Gear provided detailed clarification on April 2, 2026. The company explained that the Income Tax Department orders were received via email on Friday, March 27, 2026, during the latter part of the day between 7:23 pm to 7:38 pm. The communication comprised ten separate emails for each assessment year, with each email containing detailed orders of approximately 50+ pages.

Review Process and Compliance

Considering the volume and complexity of the documents, the company undertook a detailed review and verification process to assess the contents and implications of the orders before making any public disclosure. The detailed examination was carried out on Monday, March 30, 2026, as the subsequent days were non-working days. Upon completion of the review and internal discussions, the necessary disclosure was promptly made to the Stock Exchange on the same day at 12:34 PM.

Financial Impact Assessment

Despite the adverse ruling, ZF Steering Gear has clarified that there will be no additional financial burden on the company. During the original assessment proceedings, the company had already discharged the entire tax demand arising from such potential disallowances before filing appeals with the Tribunal. The company emphasized that adequate provisions had already been made in the books and IT demands already paid in earlier financial years.

Company's Position

ZF Steering Gear stated that the disclosure was made after proper verification and assessment of voluminous information received after the close of business hours, and was neither intentional nor due to any negligence. The company remains committed to timely disclosures and is preparing to challenge the CIT(A)'s decision through appropriate channels, including filing rectification applications and pursuing further appeals before higher appellate authorities.