NewsVaibhav Global Step-Down Subsidiary Receives US$2.76 Million Grant Under Employee Retention Credit SchemeVaibhav Global Step-Down Subsidiary Receives US$2.76 Million Grant Under Employee Retention Credit Scheme
Vaibhav Global Limited's step-down subsidiary SHOPLC Global Inc., USA has received US$2.76 million grant under the Employee Retention Credit Scheme from the US Treasury Department. The grant, provided under the CARES Act to mitigate COVID-19's economic impact, is currently being evaluated for its accounting treatment and potential impact on consolidated financial statements. The company disclosed this information on January 22nd, 2026, in compliance with SEBI regulations.
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Vaibhav Global Limited has announced that its step-down subsidiary SHOPLC Global Inc., USA has received a significant grant under the Employee Retention Credit Scheme. The company informed stock exchanges on January 22nd, 2026, about this development in compliance with regulatory disclosure requirements.
Grant Details and Amount
The subsidiary received a grant amounting to US$2.76 million (net of expenses) from the Internal Revenue Service, Department of the Treasury, United States of America. This grant was provided under the Employee Retention Credit (ERC) Scheme, which forms part of the broader Coronavirus Aid, Relief and Economic Security Act (CARES Act).
| Parameter: | Details |
|---|---|
| Grant Amount: | US$2.76 million (net of expenses) |
| Recipient Entity: | SHOPLC Global Inc., USA |
| Granting Authority: | Internal Revenue Service, US Treasury |
| Scheme: | Employee Retention Credit (ERC) |
| Legal Framework: | CARES Act |
Background of the ERC Scheme
The Employee Retention Credit Scheme was introduced as part of the CARES Act, which the United States Government enacted to mitigate the adverse economic impact of the COVID-19 pandemic. The ERC operates as a fully refundable payroll tax credit designed to provide financial assistance to eligible employers who were affected by the pandemic.
This scheme represents one of several relief measures implemented by the US Government to support businesses during the challenging economic conditions brought about by the global health crisis.
Financial Impact Assessment
The subsidiary is currently undertaking a comprehensive evaluation process to determine the appropriate accounting and financial treatment of the received grant. Key aspects of this assessment include:
- Determining the correct accounting methodology for the grant
- Evaluating potential impact on consolidated financial statements
- Ensuring compliance with applicable accounting standards
- Assessing any reporting implications for the parent company
The company has indicated that this evaluation process is ongoing, and any material impact on the consolidated financial statements will be assessed accordingly.
Regulatory Compliance
Vaibhav Global Limited made this disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The announcement was communicated to both the National Stock Exchange of India Limited and BSE Limited, ensuring full compliance with regulatory requirements for material information disclosure.
Historical Stock Returns for Vaibhav Global
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.20% | -0.18% | -5.04% | -10.90% | -9.88% | -72.24% |
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