Schaeffler India Limited has disclosed receiving a regulatory communication from tax authorities regarding Input Tax Credit (ITC) disallowance and associated penalty imposition. The company made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Tax Order Details

The communication was received from the Office of the Additional Commissioner of Goods and Service Tax and Central Excise, Salem, Gujarat. The order specifically addresses alleged contraventions regarding disallowance of Input Tax Credit.

Financial Impact Assessment

Schaeffler India has assessed that there is no material impact on the company's financials, operations, or other activities resulting from this communication. The penalty amount of ₹3,59,51,098 (Rupees Three Crore Fifty-Nine Lakh Fifty-One Thousand and Ninety-Eight only) has been imposed by the tax authorities.

Company's Response Strategy

The company has indicated its intention to challenge the order through appropriate legal channels. Schaeffler India plans to file an appeal with the Commissioner of Goods and Service Tax and Central Excise, Salem, Gujarat against the said order.

Regulatory Compliance

This disclosure was made in compliance with SEBI regulations, which mandate listed companies to inform stock exchanges about material communications received from regulatory authorities. The company has communicated these details to both BSE Limited and National Stock Exchange of India Limited.

Schaeffler India , a leading motion technology company, has recently stepped up its efforts to combat counterfeit products in the market. The company conducted major enforcement operations on November 4 and 7, 2025, targeting five locations in Delhi's Kashmiri Gate area, as well as storage units in Priyadarshani Vihar and Old Gupta Colony.

Raid Details and Seizures

The raids, carried out in collaboration with local authorities, resulted in the seizure of:

• Thousands of counterfeit FAG wheel bearings
• Fake FAG ball bearings
• Counterfeit packaging materials

These operations targeted three wholesale outlets supplying across India and two storage locations of a supplier.

Impact of Counterfeit Products

Schaeffler India emphasizes that counterfeit products pose serious risks, including:

• Operational safety hazards
• Compromised product performance
• Potential damage to customer trust
• Unplanned downtimes
• Higher maintenance costs
• Supply chain inefficiencies

Measures to Identify Genuine Schaeffler Products

To help customers avoid counterfeit products, Schaeffler recommends the following authentication measures:

1. Unique Labelling & Code Verification: Use the Schaeffler OriginCheck App to verify the unique identification code and two-dimensional barcode on product packaging.
2. Branding Details: Look for precise branding, including correct logo, font, and laser-marked product details.
3. Authorized Distribution Channels: Purchase only from Schaeffler-authorized distributors.

Ongoing Commitment to Quality and Safety

Ashish Tiwari, VP - Legal & Company Secretary of Schaeffler India, stated in the company's press release, "Schaeffler is committed to protecting customers from the risks of counterfeit products. We continue to take action against trademark misuse and counterfeiting in India, reinforcing trust in genuine motion technology solutions."

The company urges customers to remain vigilant and verify product authenticity. For any concerns about counterfeit products, customers can contact piracy@schaeffler.com .

Schaeffler India's proactive approach in combating counterfeit products demonstrates its commitment to maintaining product quality, ensuring customer safety, and protecting its brand reputation in the Indian market.