IOL Chemicals & Pharmaceuticals Limited disclosed on 09 May 2026 that it has received an Order-In-Original (O-I-O) from the Additional Commissioner of Customs, Kandla, imposing a cumulative levy of Rs. 2,05,94,796/-. The order was received by the company on 08 May 2026 and was disclosed to the stock exchanges under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Nature of the Order and Allegations

The Order-In-Original alleges that IOL Chemicals and Pharmaceuticals incorrectly availed exemption benefits under the ASEAN-India Free Trade Agreement (FTA) by submitting Certificates of Origin that did not conform to the prescribed format under Notification No. 46/2011-Customs read with ASEAN-India FTA Rules of Origin. The authority has confirmed a demand of differential Customs duty along with associated penalties and fines as a result of this alleged non-compliance.

Breakdown of the Levy

The total aggregate levy of Rs. 2,05,94,796/- comprises multiple components as detailed below:

Company's Response and Financial Impact

IOL Chemicals and Pharmaceuticals has stated that it will be filing an appeal against this order with the appropriate authority. The company has also clarified that the aforesaid levy does not have any material impact on its financials, nor does it have any impact on its operational or other activities.

Disclosure Details

The requisite disclosure was made in accordance with Regulation 30 of the Listing Regulations, read with Clause 20 of Para A of Part A of Schedule III of the Listing Regulations and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The disclosure was signed by Abhay Raj Singh, Sr. Vice President & Company Secretary of IOL Chemicals and Pharmaceuticals Limited.

IOL Chemicals & Pharmaceuticals has received a formal declaration from its promoter confirming that no encumbrance was created on the company's shares held by the promoter or promoter group, directly or indirectly, during the financial year ended 31st March 2026. The declaration was submitted by Varinder Gupta, Promoter of IOL Chemicals and Pharmaceuticals Ltd, from Ludhiana, and was addressed to the National Stock Exchange of India Ltd, BSE Limited, and the company's Audit Committee.

Declaration Under SEBI Regulation 31(4)

The declaration was made pursuant to Regulation 31(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation requires promoters and members of the promoter group to submit an annual declaration confirming the encumbrance status of their shareholding in the listed company. The submission was dated 6th April 2026 and pertains to the financial year ended 31st March 2026.

Promoter and Promoter Group Entities Covered

The declaration covers the following entities on whose behalf it has been submitted:

Key Details of the Submission

The following table summarises the key parameters of the regulatory submission:

The declaration confirms that none of the shares held by the listed promoter and promoter group entities in IOL Chemicals and Pharmaceuticals Ltd were subject to any encumbrance, whether direct or indirect, during the relevant financial year. The submission was made to both major stock exchanges—NSE and BSE—as well as to the company's Audit Committee, in compliance with applicable SEBI regulations.