Sterling Tools Limited has informed shareholders that its Board of Directors, at its meeting held on May 15, 2026, recommended a dividend of Rs. 2.75 per equity share of face value Rs. 2 each for the financial year ended March 31, 2026. The dividend is subject to approval by shareholders at the company's ensuing Annual General Meeting scheduled to be held in 2026. Shareholders holding equity shares as on the record date of August 28, 2026 will be eligible to receive the dividend in electronic form.

Dividend and TDS Framework

In accordance with the provisions of the Income-tax Act, 2025, dividend paid or distributed by a company is taxable in the hands of shareholders. Sterling Tools Limited is therefore required to deduct tax at source at the time of dividend payment. The applicable TDS rates vary based on shareholder category and the documents submitted. The following table summarises the TDS structure:

TDS Provisions for Resident Shareholders

For resident shareholders, TDS will be deducted under Section 393(1) [Table: S.No.7] read with Section 393(4) [Table Sr. no. 10] of the Act at 10% on the dividend amount, unless an exemption applies. TDS will not apply if the aggregate dividend paid to a resident shareholder during the financial year does not exceed Rs. 10,000/-. Shareholders may submit Form 121 to claim NIL deduction, provided all eligibility conditions are met. The following categories of resident shareholders may claim NIL or lower TDS on submission of the required self-declarations and supporting documents:

• Insurance companies: Declaration under Section 393(4) [Table: S.No.10] with self-attested registration certificate and PAN card
• Mutual Funds: Declaration of eligibility under Schedule VII (Table: Sl. No. 20 or 21) of Section 11 of the Act, with registration documents and PAN card
• Alternative Investment Funds (AIF) established in India: Declaration of eligibility under Schedule V [Table: Sl. No. 1] of Section 11 of the Act for Category I or Category II AIFs, with registration documents and PAN card
• New Pension System Trust: Declaration with documentary evidence and self-attested PAN card
• Other shareholders: Declaration with relevant documentary evidence and self-attested PAN card
• Shareholders with valid lower/nil deduction certificate: Certificate under Section 395(1) of the Act along with declaration

TDS Provisions for Non-Resident Shareholders

For non-resident shareholders, tax is required to be withheld under Section 393(2) [Table Sl. No 17] read with Section 207(1) [Table Sl. No. 1] of the Act at 20% plus applicable surcharge and cess. Non-resident shareholders may opt for the beneficial provisions of the applicable Double Tax Avoidance Agreement (DTAA) between India and their country of tax residence under Section 159 of the Act. To avail DTAA benefits, non-resident shareholders must submit the following documents:

• Self-attested copy of PAN card, if allotted by Indian Income Tax Authorities
• Self-attested copy of Tax Residency Certificate (TRC) from the tax authorities of the country of residence
• Electronically generated Form 41 from the income tax portal
• Self-declaration confirming DTAA eligibility and beneficial ownership
• In case of Foreign Portfolio Investors, self-attested copy of SEBI registration certificate
• For shareholders tax resident in Singapore, additional evidence demonstrating non-applicability of Article 24 (Limitation of Relief) under the India-Singapore DTAA

Document Submission and Key Deadlines

All tax exemption forms and supporting documents must be uploaded on or before August 28, 2026 with Mas Services Limited, the Registrar and Share Transfer Agent, at the designated portal. Resident individual shareholders holding shares in dematerialised form may alternatively submit Form 121 through the NSDL/CDSL Tax Service Platform. Any declaration received after the cut-off date of August 28, 2026 will not be accepted by the company.

Bank Account and PAN Updation

In accordance with SEBI Notification No. SEBI/LADNRO/GN/2025/273 dated November 18, 2025, all dividend payments will be made exclusively in electronic mode. No payable-at-par warrants, cheques, or drafts will be issued. Shareholders holding shares in demat mode are requested to update their correct core banking account number, including the 9-digit MICR Code and 11-digit IFSC Code, with their respective depository participants. Shareholders in physical form are requested to communicate such details to Mas Services Limited. Failure to update bank details will result in non-payment of dividend. The company has clarified that TDS will be deducted based on records available with the RTA, and no requests for revision of TDS returns will be entertained.

Sterling Tools Limited has announced that its 47th Annual General Meeting (AGM) will be held on Friday, September 4, 2026, at 11:00 a.m. IST. The meeting will be conducted through Video Conferencing (VC) or Other Audio-Visual Means (OAVM), allowing members to participate without physical presence. This format ensures compliance with the Companies Act, 2013, and various Ministry of Corporate Affairs (MCA) circulars, while enabling shareholders to vote electronically and attend remotely.

The announcement was made pursuant to Regulation 30 read along with Schedule III of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The notice was published on August 8, 2026, in Financial Express (English-All Edition) and Jansatta (Hindi-Delhi-Edition). Company Secretary Pragya Saxena confirmed the publication for information and record purposes.

Key Meeting Details

Shareholders attending the AGM through VC/OAVM will be counted for the purpose of reckoning the quorum under Section 103 of the Companies Act, 2013. The company is providing the facility for remote e-voting through National Securities Depository Limited (NSDL), allowing members to cast their votes electronically prior to and during the meeting.

Shareholder Instructions

The Annual Report, including the financial statements for the financial year ended March 31, 2026, along with the Board’s Report and Auditors’ Report, will be sent only through electronic mode to members whose email addresses are registered with the company, Registrar and Share Transfer Agent (RTA), or Depository Participant (DP).

Members who have not registered their email addresses must take specific actions to access the Annual Report and participate in e-voting:

• Physical Holding: Members must send a request to the RTA, MAS Services Limited, with a duly filled Form No. ISR-1. This can be emailed to investor@masserv.com or cssec@stlfasteners.com. The form is available for download from the RTA’s website.
• Demat Holding: Members must contact their respective Depository Participants to register their email address and bank account details as per the DP’s advised process.

Additionally, effective April 1, 2024, SEBI mandates that listed companies holding shares in physical mode must update PAN and KYC details to receive dividends electronically. Members are urged to update these details with their RTA or DP to ensure uninterrupted dividend entitlements.