V-Guard Industries Limited has received an Order-in-Original from the Commissioner of Customs (NS-V), JNCH, Nhava Sheva, regarding the misclassification of certain parts of products. The communication, dated May 12, 2026, adjudicates a Show Cause Notice (SCN) alleging that the goods were incorrectly classified, prompting a re-classification by the authority under Section 28(4) of the Customs Act.

Order Details

The order confirms a differential duty demand of INR 68,24,372 along with applicable interest under Section 28AA of the Customs Act. In addition, a penalty of INR 68,24,372 has been imposed under Section 114A, with an option to reduce this penalty to 25% subject to specific conditions. The following table summarises the key financial implications arising from the order:

Financial Implications

The financial implications arise from imports covered in the SCN and order, which relate to Bills of Entry spanning the period from May 2020 to July 2024. Both the confirmed duty and the penalty amount of INR 68,24,372 each are payable, along with the associated interest under Section 28AA. The option to reduce the Section 114A penalty to 25% remains available to the company, subject to fulfilment of prescribed conditions.

Company Response

In response to the order, V-Guard Industries stated that it is currently evaluating the merits of the order. The management indicated that the company will undertake appropriate steps, including filing an appeal before the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) within the prescribed time limits. The intimation was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

V-Guard Industries Limited announced the grant of 72,655 stock options to eligible employees under its Employee Stock Option Scheme, ESOS 2013, following approval by the Nomination and Remuneration Committee at its meeting held on May 11, 2026. The grant was disclosed to stock exchanges in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements.

Key Details of the Stock Option Grant

The following table summarises the key parameters of the options granted under ESOS 2013:

Vesting Structure and Scheme Terms

The options granted will vest over a period not more than four years, based on time and performance criteria. Time-based options will vest equally over a period not more than four years, while performance-based options will vest in the last year, subject to the achievement of defined performance criteria. Vesting is also contingent on continued employment with the company.

Under the significant terms of ESOS 2013, options vest in not less than one year and not more than four years from the date of grant. The Exercise Price is determined by the Nomination and Remuneration Committee from time to time, but shall not be less than the face value of the shares and not more than the prevailing market value of the shares as on the date of grant.

Lapsed or Cancelled Options

In the event that stock options lapse, are cancelled, or become unexercisable for any reason, the Nomination and Remuneration Committee retains the discretion to decide on the re-issue of such lapsed or cancelled options in accordance with the scheme and applicable laws.

Administration and Compliance

The ESOS 2013 is administered by the Nomination and Remuneration Committee of V-Guard Industries. The scheme is in due compliance with the terms of SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The disclosure was signed by Vikas Kumar Tak, Company Secretary & Compliance Officer (Membership No. FCS 6618), and submitted to both BSE Limited and the National Stock Exchange of India Limited on May 11, 2026.