V-Guard Industries Receives Customs Order Confirming Duty Demand and Penalties Worth INR 3.75 Crores

V-Guard Industries Limited has received a significant customs order that could impact its financial position, following allegations of product classification issues during imports over nearly five years.

Customs Order Details

The company received an Order-in-Original from the Commissioner of Customs (NS-V), JNCH on April 6, 2026. The order addresses a Show Cause Notice (SCN) that alleged misclassification of certain parts of products during the company's import operations.

Parameter	Details
Communication Type	Order-in-Original
Issuing Authority	Commissioner of Customs (NS-V), JNCH, Nhava Sheva
Date of Receipt	April 6, 2026
Import Period Covered	September 9, 2019 to June 11, 2024

Financial Implications

The customs authority has re-classified the goods in question and confirmed substantial financial demands against the company. The total financial impact includes both duty demands and penalties across multiple sections of customs law.

Financial Component	Amount (INR)	Legal Provision
Differential Duty (including interest)	1,62,59,112	Section 28(4) with Section 28AA
Penalty under Section 114A	1,62,59,112	With 25% reduction option
Penalty under Section 114AA	50,00,000	Fixed penalty
Total Potential Liability	3,75,18,224	Combined impact

Classification Issues and Compliance

The customs authority identified misclassification of certain parts of products as the primary non-compliance issue. This classification dispute spans imports conducted over approximately four years and nine months, indicating a systematic review of the company's import practices during this period.

The penalty under Section 114A, equivalent to the duty amount, includes an option for the company to reduce it to 25% of the confirmed amount, subject to meeting specific conditions set by the customs authority.

Company Response and Next Steps

V-Guard Industries has indicated it is carefully evaluating the merits of the customs order. The company plans to undertake appropriate legal measures, including filing an appeal before the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) within the prescribed time limits.

This regulatory disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments that could affect the company's operations and financial position.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.98%	-0.33%	+4.58%	-8.22%	-10.09%	+33.74%

V-Guard Industries Limited has announced the allotment of equity shares to employees under its stock option scheme following a board meeting held on March 25, 2026. The company's directors approved the issuance of shares as part of the Employee Stock Option Scheme 2013, demonstrating the company's commitment to employee participation in its growth.

Board Meeting Details and Allotment

The board meeting commenced at 10:30 AM and concluded at 02:40 PM on March 25, 2026. During this meeting, the directors approved the allotment of equity shares to employees who had exercised their stock options under the company's established scheme.

Parameter	Details
Type of Securities	Equity Shares
Face Value per Share	₹1
Total Shares Allotted	49,290
Number of Beneficiaries	11 employees
Scheme	Employee Stock Option Scheme 2013 (ESOS 2013)

Regulatory Compliance

The allotment was conducted in accordance with the SEBI (Listing Obligations and Disclosures Requirements) Regulations, 2015. V-Guard Industries has duly informed both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE) about this corporate action, maintaining transparency with regulatory authorities and stakeholders.

Employee Stock Option Scheme Implementation

The issuance represents the exercise of stock options by 11 employees under the company's ESOS 2013 framework. This employee stock option scheme allows eligible employees to acquire equity shares in the company, aligning their interests with those of shareholders and providing them with a stake in the company's future performance.

The company secretary and compliance officer, Vikas Kumar Tak (Membership No. FCS 6618), signed the disclosure document, ensuring proper documentation and regulatory compliance for this allotment process.