Cummins India Limited , a leading power solutions provider, has announced significant corporate developments, including new director appointments and seeking approval for additional related party transactions.

Board Appointments

The company has issued a postal ballot notice seeking shareholder approval for the appointment of two directors:

1. Mr. Thierry Bruno Pimi Nouyeuwe: Proposed as a Non-Executive and Non-Independent Director. Mr. Pimi brings over 25 years of experience in power generation and manufacturing industries. He currently leads the Distribution Business Unit International Operations at Cummins Inc.

2. Ms. Vibha Paul Rishi: Nominated as a Non-Executive Independent Director for a five-year term. Ms. Rishi is a marketing specialist with international experience, including a 17-year tenure with PepsiCo.

Both directors were initially appointed as Additional Directors by the Board on August 9, 2025. The company plans to conduct remote e-voting from September 8, 2025, to October 7, 2025, with August 29, 2025, as the cut-off date for determining eligible shareholders.

Additional Related Party Transactions

Cummins India has issued another postal ballot notice seeking member approval for additional material related party transactions. These transactions involve:

These transactions are planned for FY2025-26 and involve the purchase and sale of engines, gensets, and components at arm's length pricing. The e-voting period for this approval is scheduled from December 7, 2025, to January 5, 2026.

Tax Penalty

In a separate development, Cummins India has received an order from the Government of Karnataka Department of Commercial Taxes, Ballari, imposing a penalty of ₹43.36 lakh. The penalty is levied under Section 68(3) of the Central Goods and Services Tax Act, 2017 / State Goods and Services Tax Act, 2017, for alleged missing supplier details in an E-Invoice for a particular consignment.

The company has paid the penalty but plans to file an appeal with the appropriate authority for its withdrawal. Cummins India stated that the penalty does not have any material impact on its financials or operations.

Shareholder Action

Shareholders are encouraged to participate in the e-voting processes for both the director appointments and the approval of related party transactions. The company has engaged MUFG Intime India Private Limited as the Registrar and Transfer agent to provide e-voting facilities.

Cummins India Limited continues to demonstrate its commitment to corporate governance through these transparent processes and timely disclosures to its shareholders and the market.

Cummins India Limited , a prominent player in the power generation and engine manufacturing sector, has recently faced a regulatory setback. The company received a penalty order of Rs 43,36,081 from the Government of Karnataka's Department of Commercial Taxes for an alleged discrepancy in its E-Invoice documentation.

Penalty Details

The penalty was imposed under Section 68(3) of both the Central Goods and Services Tax Act, 2017 and the State Goods and Services Tax Act, 2017. The issue at hand pertains to missing supplier details in an E-Invoice for a specific consignment.

Company's Response

Cummins India has taken swift action in response to the penalty order:

1. The company has already paid the full penalty amount of Rs 43,36,081.
2. It plans to file an appeal with the appropriate authority for the withdrawal of the penalty.

Impact Assessment

In its official communication to the stock exchanges, Cummins India stated that this penalty would not have any material impact on the company's financials. The company also assured that there would be no significant effect on its operational or other activities.

Regulatory Compliance

This incident highlights the increasing scrutiny on E-Invoice compliance under the GST regime. Companies are required to maintain accurate and complete documentation for all transactions, including detailed supplier information in their E-Invoices.

Looking Ahead

While Cummins India moves to appeal the penalty, this case serves as a reminder for businesses to ensure strict adherence to E-Invoice regulations. The outcome of the company's appeal could provide insights into the interpretation and enforcement of GST rules related to E-Invoice documentation.

Investors and stakeholders will be keenly watching how this situation unfolds, particularly the result of Cummins India's appeal against the penalty order.