Cummins India Limited , a leading power solutions provider, has successfully concluded its postal ballot process with shareholders overwhelmingly approving additional related party transactions worth ₹290 crores.

Postal Ballot Results

The company announced the voting results on January 6, 2026, following the completion of remote e-voting that commenced on December 7, 2025, and concluded on January 5, 2026. Ms. Ashwini Inamdar of Mehta & Mehta Company Secretaries served as the scrutinizer for the postal ballot process.

Approved Related Party Transactions

Shareholders approved both resolutions with overwhelming support, achieving 99.9994% approval for each transaction:

These transactions involve the purchase and sale of engines, gensets, and components at arm's length pricing for FY2025-26. A total of 98,311,330 shares voted in favor of both resolutions, while only 557 shares voted against each proposal.

Board Appointments

The company had earlier sought shareholder approval for the appointment of two directors through a separate postal ballot:

1. Mr. Thierry Bruno Pimi Nouyeuwe: Proposed as Non-Executive and Non-Independent Director, bringing over 25 years of experience in power generation and manufacturing industries
2. Ms. Vibha Paul Rishi: Nominated as Non-Executive Independent Director for a five-year term, with extensive marketing experience including 17 years with PepsiCo

Both directors were initially appointed as Additional Directors by the Board on August 9, 2025.

Regulatory Compliance

Cummins India has maintained transparency in its corporate governance processes. The company engaged MUFG Intime India Private Limited as the Registrar and Transfer agent to provide e-voting facilities. The voting results and scrutinizer's report have been uploaded on the company's website at www.cumminsindia.com and filed with stock exchanges under Regulation 44 of SEBI Listing Regulations.

Tax Matter Update

In a separate development, the company had received a penalty of ₹43.36 lakh from the Government of Karnataka Department of Commercial Taxes for alleged missing supplier details in an E-Invoice. While the company paid the penalty, it plans to file an appeal for its withdrawal, stating the penalty has no material impact on its financials or operations.

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.