GS Auto International has notified BSE Limited about its exemption from corporate governance compliance requirements for the quarter ended December 31, 2025. The company cited Regulation 15(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which provides relief to smaller companies from stringent governance norms.

Exemption Criteria and Duration

The exemption applies because the company's paid-up equity share capital and net worth do not exceed ₹10 crores and ₹25 crores respectively. This threshold has been maintained for four consecutive financial years, making the company eligible for relief from corporate governance provisions effective April 1, 2024.

The exemption covers multiple SEBI regulations including Regulations 17, 17A, 18, 19, 20, 21, 22, 23, 24, 24A, 25, 26, 26A, 27 and specific clauses of regulation 46 and Schedule V. Consequently, GS Auto International is not required to submit the quarterly compliance report on corporate governance for Q3 FY26.

Financial Position Across Four Years

A certificate from practicing chartered accountant Sukhminder Singh & Co. confirms the company's financial parameters across four financial years:

The equity share capital remained constant at ₹725.73 lacs throughout the four-year period, while the net worth fluctuated between ₹1,970.15 lacs and ₹2,266.69 lacs, consistently staying below the ₹25 crore threshold.

Regulatory Compliance and Future Obligations

The company has assured BSE that it will comply with corporate governance provisions within six months from the date these requirements become applicable. The exemption certificate was issued on July 17, 2025, and verified through the ICAI UDIN system with reference number 25558069BMHHXU2131.

Company Secretary Sandeep, holding ICSI membership number A72232, signed the compliance notification on January 6, 2026. The communication was addressed to the Department of Corporate Relations at BSE Limited, referencing the company's scrip code 513059.

G.S. Auto International Limited has provided additional clarification regarding the arrest of its Managing Director following a query from the Bombay Stock Exchange. The company disclosed on December 20, 2025, that the arrested Managing Director is not involved in day-to-day operations and the matter relates to a personal property dispute.

Initial Disclosure and BSE Query

The company initially announced on December 18, 2025, that Mr. Surinder Singh Ryait, Managing Director with DIN 00692792, had been arrested in a matter unrelated to company affairs. Following this disclosure, BSE requested additional details under SEBI Circular dated November 11, 2024, specifically asking for the date of arrest and other particulars.

Company's Detailed Response

In response to BSE's query dated December 19, 2025, G.S. Auto International clarified that the matter was brought to their notice from a third source through a newspaper cutting. The company emphasized that even the family of the Managing Director had not informed them about the incident initially.

Operational Impact Assessment

The company provided crucial details about the Managing Director's role within the organization. Mr. Surinder Singh Ryait is not involved in day-to-day activities and does not draw any salary from the company. G.S. Auto International has two Managing Directors, and the daily operations remain completely unaffected by this incident.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company reiterated that this is a personal property dispute matter where the company is not involved, maintaining transparency with stakeholders and regulatory authorities.

The communication was signed by the Company Secretary and Compliance Officer holding ICSI Membership No. A72232, from the company's registered office at G.S. Estate, G.T. Road, Ludhiana-141010, operating under CIN L34300PB1973PLC003301.