Timex Group India Limited has received a GST demand order from Tamil Nadu tax authorities, marking a regulatory development that requires disclosure under SEBI listing regulations. The company informed stock exchanges about this matter on March 23, 2026, providing detailed information about the nature and financial impact of the order.

GST Demand Order Details

The Office of the Assistant Commissioner (ST), Vadapalani, Central-I, Chennai Central, Tamil Nadu issued a demand order (Form DRC-07) under Section 74 of the Tamil Nadu Goods and Services Act, 2017. The order pertains to the Financial Year April 1, 2019 to March 31, 2020 and was received by the company on March 22, 2026.

Nature of Violation

The demand order was issued due to excess input tax credit availed in the GST returns for the Financial Year 2019-20. Specifically, the department identified a discrepancy relating to excess input tax credit availed under Input Service Distributor (ISD) provisions for FY 2019-20 in Chennai operations.

Financial and Operational Impact

The total financial impact on Timex Group India Limited amounts to INR 8,845, which includes the principal demand along with applicable interest and penalty components. The company has quantified this impact in monetary terms as part of its regulatory disclosure requirements.

Regulatory Compliance

Timex Group India Limited disclosed this information pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made in accordance with SEBI Circular No. HO/49/14(7)2025-CFD-POD2/1/3762/2026 dated January 30, 2026, and the company's Policy on Determination of Materiality for Disclosure of Events or Information. The communication was signed by Dhiraj Kumar Maggo, VP-Legal, HR & Company Secretary.

Timex Group India Limited's board of directors has approved the payment of interim dividend and redemption of preference shares in its meeting held on March 20, 2026. The board meeting commenced at 4:00 PM and concluded at 4:30 PM, with the decisions communicated to BSE Limited through a regulatory filing under Regulation 30.

Board Meeting Decisions

The board approved two key resolutions during the meeting. The company will pay an interim dividend of Rs. 3,08,27,290 on its preference shares, covering the period from April 1, 2025, to March 20, 2026. Additionally, the board approved the redemption of all outstanding preference shares that were due for redemption on March 20, 2026.

Payment Timeline and Compliance

According to the board resolution, the interim dividend will be paid within 30 days from the date of declaration, ensuring compliance with regulatory requirements. The dividend payment will be made out of the company's profits, and the redemption covers all preference shares that reached their maturity date on March 20, 2026.

Corporate Governance

The regulatory communication was digitally signed by Dhiraj Kumar Maggo, Vice President-Legal, HR & Company Secretary, holding ICSI Membership No. F7609. The filing was submitted to BSE Limited under scrip code 500414, maintaining transparency with stakeholders and adherence to listing obligations.

The official board meeting outcome document confirms that both resolutions were considered and approved during the 30-minute meeting. The company had previously announced the closure of its trading window from March 16, 2026, to March 22, 2026, in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company's internal code of conduct for insider trading.