Enviro Infra Engineers Limited has announced the favorable closure of GST proceedings initiated by the Punjab Tax Department. The company informed stock exchanges on February 09, 2026, that all proceedings against it have been dropped following a thorough review by tax authorities.

Background of GST Proceedings

The GST matter originated from a Show Cause Notice issued by the State Tax Officer, Taxation Commissionerate, Government of Punjab, which the company had disclosed to exchanges on July 11, 2025. The notice contained significant allegations that required immediate attention and formal response.

Company's Response and Resolution

Enviro Infra Engineers submitted a comprehensive response to the tax authorities within the prescribed timeline. The company provided detailed clarifications along with requisite supporting documents to address the allegations raised in the Show Cause Notice.

Following examination of the company's submissions, the GST Department issued Order Ref No. ZD030226009268O dated February 09, 2026, formally dropping the proceedings. This decision reflects the department's satisfaction with the explanations and documentation provided by the company.

Financial Impact and Current Status

The closure of proceedings brings complete resolution to the matter, with no financial implications for the company. The favorable outcome eliminates any potential liability related to the alleged discrepancies, interest, or penalty amounts.

The announcement was signed by Company Secretary and Compliance Officer Piyush Jain, confirming the successful resolution of this regulatory matter. This development removes any uncertainty regarding potential GST liabilities for the FY 2022-23 period and demonstrates the company's compliance with tax regulations.

Enviro Infra Engineers Limited has successfully obtained shareholder approval for its Employee Stock Option Plan 2025 through remote e-voting via postal ballot. The approval was secured on January 1, 2026, marking a significant milestone in the company's employee incentive framework.

Plan Approval and Regulatory Framework

The EIEL Employees Stock Option Plan 2025 received requisite majority approval from shareholders through the remote e-voting process. The Board of Directors had initially approved the plan on November 25, 2025, following recommendations from the Nomination and Remuneration Committee. The plan complies with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Stock Option Coverage and Structure

The plan encompasses a substantial number of stock options designed to incentivize employee performance. Each option, when exercised, converts into one fully paid-up equity share of the company.

The plan includes provisions for fair and reasonable adjustments in case of corporate actions such as rights issues, bonus issues, mergers, or sale of divisions. Any additional options issued for such adjustments would increase the ceiling of 17,73,031 stock options accordingly.

Vesting and Exercise Framework

The plan incorporates a structured approach to option vesting and exercise, designed to align employee interests with company performance over time.

Key Features:

• Vesting Period: Minimum one year, subject to service or performance milestones
• Exercise Window: Three years from vesting date for in-service employees
• Exercise Flexibility: Options may be exercised at one time or various points during the exercise period
• Pricing: Exercise price determined by Compensation Committee and communicated via grant letter

Plan Objectives and Implementation

The Employee Stock Option Plan 2025 serves dual purposes in the company's human resource strategy. The plan aims to reward employees for past performance while motivating continued excellence in future endeavors. Additionally, the company intends to attract and retain talented personnel through this incentive mechanism.

The plan awaits in-principle approval from recognized stock exchanges, including the National Stock Exchange of India Limited and BSE Limited, before any grants can be made under the scheme. The Compensation Committee will oversee the implementation and administration of the plan, including determination of exercise prices and opening of exercise windows.

Regulatory Compliance and Next Steps

Enviro Infra Engineers Limited has fulfilled the disclosure requirements under Regulation 30 of SEBI Listing Regulations. The company has provided comprehensive details as mandated by SEBI Master Circular dated November 11, 2024. With shareholder approval secured, the company now awaits final regulatory clearances to commence implementation of the Employee Stock Option Plan 2025.