Cummins India Limited has been penalized by both BSE and NSE for regulatory non-compliance, with each exchange imposing fines of ₹2,000 plus applicable taxes. The penalties relate to violations of Regulation 18(1) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, concerning audit committee constitution requirements for the quarter ended December 31, 2025.

Regulatory Non-Compliance Details

Both stock exchanges communicated their penalty decisions to Cummins India on February 27, 2026, citing non-compliance with audit committee constitution requirements. The violations were identified under SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, which outlines standard operating procedures for imposing fines on listed entities.

Board Response and Corrective Measures

The company's Board of Directors addressed the non-compliance issue during their meeting held on March 11, 2026. After reviewing the circumstances, the Board determined that the violation was inadvertent and unintentional, emphasizing the company's commitment to maintaining adherence to all applicable regulatory frameworks.

Key actions taken by the company include:

• Reconstitution of the Audit and Compliance Committee, effective November 11, 2025
• Payment of fines within prescribed timelines
• Filing of waiver applications with both exchanges
• Implementation of measures to ensure future compliance

Compliance Status and Future Measures

Cummins India has confirmed that both fines have been paid within the prescribed 15-day timeline as mandated by the exchanges. The company has also submitted waiver applications to both BSE and NSE, with outcomes pending review by the respective exchange committees.

The Board reiterated the company's commitment to aligning its practices with the latest regulatory guidance and confirmed that corrective steps have been implemented to ensure compliance going forward. The company emphasized its steadfast commitment to maintaining adherence to all applicable regulatory frameworks.

Exchange Warning and Consequences

Both exchanges warned that failure to pay fines within the stipulated timeframe could result in severe consequences, including freezing of promoter shareholdings and potential shifting of the company's securities to the Z category for trade-for-trade basis trading in case of consecutive defaults.

The exchanges also mandated that the non-compliance matter be placed before the Board of Directors in their next meeting, with board comments to be communicated to the exchanges for dissemination, which Cummins India has duly completed.

Source: None/Company/INE298A01020/5edb2fcf-8426-4f79-bf7a-627e329ab34f.pdf

Cummins India Limited's Board of Directors has taken a significant step regarding executive compensation, unanimously approving a revision in the remuneration package of Managing Director Ms. Shveta Arya. The decision was reached during the board meeting held on March 11, 2026, following recommendations from the company's Nomination and Remuneration Committee.

Board Meeting Details and Approval Process

The board meeting, which commenced at 16:50 hours and concluded at 17:05 hours, focused on the remuneration revision for Ms. Shveta Arya, who holds the Director Identification Number (DIN) 08540723. The unanimous approval reflects the board's confidence in the Managing Director's leadership and contribution to the company's operations.

Postal Ballot Process and Shareholder Approval

The board has approved the initiation of a postal ballot process to seek member approval for the remuneration revision. A formal Notice of Postal Ballot will be circulated to all shareholders of the company in due course, allowing them to vote on the proposed changes to the Managing Director's compensation package.

To ensure transparency and fairness in the voting process, the board has appointed M/s. Mehta & Mehta, Company Secretaries based in Pune, as the scrutinizer for the postal ballot's e-voting process. This appointment demonstrates the company's commitment to maintaining proper corporate governance standards.

Regulatory Compliance and Timeline

The company will adhere to all regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Specifically, the scrutinizer's report along with the complete e-voting results will be submitted to the stock exchanges within the prescribed timeline as stipulated in Regulation 44 of the SEBI regulations.

Corporate Communication

The intimation regarding this board decision has been made available on the company's official website at www.cumminsindia.com , ensuring transparency and easy access to information for all stakeholders. The formal communication was signed by Vinaya A. Joshi, Company Secretary & Compliance Officer, with membership number A25096, and was digitally signed on March 11, 2026, at 17:38:40 +05'30'.

This development represents a standard corporate governance process where significant executive compensation changes require both board approval and shareholder consent through the postal ballot mechanism, ensuring all stakeholders have a voice in important company decisions.