JTEKT India Limited has received a Show Cause Notice from the Office of the Additional Director General of Foreign Trade (DGFT), Central Licensing Area (CLA) Delhi, demanding the recovery of ₹622.39 in Merchandise Exports from India Scheme (MEIS) duty credit scrips. The notice, dated August 4, 2026, cites the incorrect adoption of foreign exchange rates for converting Free on Board (FOB) values into Indian Rupees as the cause for the excess benefit granted, which contravenes the Foreign Trade Policy 2015-20 and the Handbook of Procedures.

The company disclosed the receipt of the notice on August 4, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was signed by Saurabh Agrawal, Company Secretary, and submitted to both the BSE Limited and the National Stock Exchange of India Ltd. The regulatory action was initiated by the Additional Director General of Foreign Trade, CLA Delhi, located at A Wing I.P. Bhawan, Central Delhi.

The DGFT’s notice invokes powers conferred under Rule 8 and Rule 7 of the Foreign Trade (Regulation) Rules, 1993, read with Sections 11(2), 13, and 14 of the Foreign Trade (Development & Regulation) Act, 1992. These sections empower the authority to investigate violations related to export incentives and enforce recovery of wrongly availed benefits. The core allegation is that the conversion methodology used for FOB values resulted in a grant of benefit exceeding the entitlement admissible under the prevailing policy framework.

Despite the regulatory scrutiny, JTEKT India Limited stated that the matter has no impact on its financial, operational, or other activities. The monetary value involved, ₹622.39, is negligible relative to the company’s overall financial scale, suggesting the issue is procedural rather than substantive. The company did not disclose any further details regarding the specific transactions or periods under review in the initial intimation.

Key Details of the Show Cause Notice

What the Numbers Show

The nominal value of the disputed amount, ₹622.39, indicates that the error likely stems from a minor computational discrepancy in foreign exchange conversion rather than a systemic fraud or large-scale policy violation. In the context of JTEKT India’s operations, such a small figure suggests the DGFT’s action may be part of routine compliance verification rather than a targeted investigation into significant revenue leakage. The company’s assertion of no financial impact aligns with the trivial monetary scale of the demand, implying that even if fully enforced, the recovery would not affect reported earnings or cash flows.

JTEKT India Limited has filed its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 with the BSE Limited and the National Stock Exchange of India Limited, pursuant to Regulation 34(2)(f) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report, signed by Company Secretary Saurabh Agrawal on 31st July 2026, is prepared on a standalone basis and forms part of the company's Annual Report for FY 2025-26. JTEKT India, incorporated in 1984 and headquartered in New Delhi, is a manufacturer and assembler of automotive components, with automotive components (NIC Code 29301) accounting for 99.19% of its total turnover.

Corporate Overview and Financial Profile

The company reported a turnover of INR 26,65,57,50,146.40 and a net worth of INR 11,85,81,13,573.09 for FY 2025-26. Its paid-up capital stands at INR 27,73,96,890. JTEKT India operates 7 plants and 1 office nationally, serving customers across 14 states in India and 4 countries internationally. Exports contributed 2.58% of total turnover. The company supplies automotive products on a Business-to-Business (B2B) basis as a Tier 1 supplier to OEMs including Maruti Suzuki, TATA Motors, Honda, Toyota Kirloskar, Renault Nissan, Mahindra & Mahindra, Stellantis, and international entities such as E-Z-Go Textron (USA), JTEKT Brazil LTDA (Brazil), PT. JTEKT Indonesia (Indonesia), and JTEKT Column Systems France S.A.S (France).

Workforce and Employee Well-Being

The following table summarises JTEKT India's workforce composition for FY 2025-26:

The Board of Directors comprises 8 members, of whom 2 (25%) are female. All 1,080 permanent employees are covered under health insurance and accident insurance at 100%. The company reported no differently abled employees or workers during FY 2025-26. Well-being expenditure as a percentage of total revenue stood at 1.12% in FY 2025-26, compared to 0.95% in FY 2024-25. The return-to-work and retention rates for permanent employees and workers who took parental leave were 100% across all gender categories.

Training coverage for FY 2025-26 showed strong improvement over the prior year:

Safety Performance

All JTEKT India plants are certified under ISO 45001:2018 for Occupational Health and Safety. The company reported zero Lost Time Injuries (LTIFR) for employees in both FY 2025-26 and FY 2024-25. For workers, the LTIFR (per one million-person hours worked) improved to 0.12 in FY 2025-26 from 0.39 in FY 2024-25. Total recordable work-related injuries for workers declined to 1 in FY 2025-26 from 3 in FY 2024-25. No fatalities or high-consequence injuries were recorded for either employees or workers in either year. All plants and offices were assessed at 100% for both health and safety practices and working conditions.

Environmental Performance

The company's energy and emissions data for FY 2025-26 are presented below:

For water, total withdrawal in FY 2025-26 stood at 1,20,173 kilolitres, with total consumption also at 1,20,173 kilolitres. Water intensity per rupee of turnover was 0.0000045 and 0.0191 KL/Nos. in terms of physical output. Total water discharged was 7,856 kilolitres in FY 2025-26 compared to 7,190 kilolitres in FY 2024-25. The company has implemented wastewater treatment systems including Effluent Treatment Plants (ETP) and Sewage Treatment Plants (STP) across most locations to support Zero Liquid Discharge objectives.

Key renewable energy initiatives during the year included the commissioning of an additional 725 kWp rooftop solar power plant at the Bawal facility and the installation of 91 Hybrid Thermal Solar (HTS) panels across JTEKT India facilities. Total waste generated in FY 2025-26 was 354 metric tonnes, compared to 363 metric tonnes in FY 2024-25, with all waste disposed through authorized recyclers.

Governance, Compliance, and CSR

JTEKT India's policies cover all nine principles of the National Guidelines for Responsible Business Conduct (NGRBC), with Board approval confirmed for each. The company holds certifications including ISO 14001:2015, ISO 45001:2018, IATF 16949:2016, and ISO/IEC 27001:2022. No monetary or non-monetary penalties were reported under any NGRBC principle for FY 2025-26. The company reported zero disciplinary actions for bribery or corruption against directors, KMPs, employees, or workers in FY 2025-26. Accounts payable days stood at 58 days in FY 2025-26 versus 56 days in FY 2024-25. Approximately 52% of inputs were sourced sustainably, and 24% of input material (by value) was directly sourced from MSMEs in FY 2025-26, up from 18% in FY 2024-25. The company's long-term environmental target is to achieve carbon neutrality by FY 2050, with ongoing initiatives in renewable energy adoption, water conservation, and waste reduction forming the core of its sustainability strategy.