Schneider Electric Infrastructure Limited has scheduled a postal ballot to seek shareholder approval for material related party transactions with Schneider Electric IT Business India Private Limited for an aggregate value of ₹605 crore during FY 2026-27. The proposed transactions, which supersede an earlier resolution approved on March 25, 2026, include the sale and purchase of goods and services, as well as borrowing arrangements. The Board of Directors, based on the recommendation of the Audit Committee, has approved the proposal and recommended the ordinary resolution for shareholder consent.

The related party, Schneider Electric IT Business India Private Limited, is a fellow subsidiary engaged in secure power, energy management, and automation solutions. The proposed limit includes a revision for the sale of goods, increasing from ₹15 crores to ₹100 crores to align with business requirements, while other categories remain unchanged. The transactions will be conducted at arm’s length and in the ordinary course of business, with pricing benchmarked against market standards.

Key Financial Metrics

The following table outlines the proposed transaction limits and financial metrics associated with the related party:

The company has an outstanding long-term loan of ₹255 crores from the related party, which continues from previous years and is considered in the proposed material RPT limit. The debt-to-equity ratio of the listed entity is expected to increase from 0.39 to 0.71 post-transaction, while the debt service coverage ratio is projected to decrease from 17.1 to 9.5.

E-Voting Schedule and Process

The remote e-voting process will be facilitated by the National Securities Depository Limited (NSDL). Shareholders whose names appear in the Register of Members as of the cut-off date, Friday, May 29, 2026, are eligible to vote. The company has engaged MUFG Intime India Private Limited as the Registrar and Share Transfer Agent to assist members with email registration.

Mr. Anirudh Grover, Partner of M/s Sanjay Grover & Associates, has been appointed as the Scrutinizer to oversee the e-voting process. The results of the postal ballot will be announced on or before Tuesday, July 7, 2026. In compliance with SEBI regulations, all related parties and members holding more than 10% of the shareholding will abstain from voting on the resolution.

Schneider Electric Infrastructure Limited secured a reduction in its Goods and Services Tax (GST) penalty following a rectification order from the Joint Commissioner, Division-I Vadodara, Vadodara-I, CBIC. The order, received on June 2, 2026, lowered the penalty by ₹8,328,696 concerning the alleged wrong availment of ineligible Input Tax Credit for the financial year 2019–20. This adjustment provides financial relief while the disputed tax and interest liabilities remain upheld.

The development follows a previous intimation regarding Order-In-Appeal No. VAD-CGST-001-APP-JC559-2025-26, which had confirmed the tax position. The latest rectification order, accompanied by Form GST APL – 04, specifically addresses the penalty component. The company confirmed that the tax amount and interest charges remain unchanged from the figures established in the earlier appeal order.

The financial implications of the order are detailed below. The table illustrates the breakdown of the tax, interest, and penalty across IGST, CGST, and SGST components.

The violation cited by the authorities pertains to the wrong availment of ineligible Input Tax Credit during the specified financial year. Despite the reduction in the penalty, the aggregate demand for tax and interest totals ₹18,552,184. Schneider Electric Infrastructure Limited disclosed that there is no material impact on its financials, operations, or other activities as a result of this order.