Hikal Limited has issued a comprehensive communication to its shareholders regarding tax deduction at source (TDS) procedures for an upcoming dividend payment.

Dividend Recommendation and Approval Process

The Board of Directors, at their meeting held on May 27, 2026, recommended a Final Dividend of ₹0.40 per equity share (face value ₹2) for the Financial Year ended March 31, 2026. This dividend payment is subject to approval by shareholders at the 38th Annual General Meeting scheduled for Wednesday, September 23, 2026.

Record Date

The Company has fixed Friday, September 4, 2026, as the record date for determining shareholder eligibility to receive the dividend.

TDS Framework

Pursuant to the Income Tax Act, 2025, dividend income is taxable in the hands of shareholders, and the Company is required to deduct TDS at the time of payment. The communication elaborates on different TDS scenarios:

For Resident Shareholders
  • TDS rate of 10% applies where shareholders have registered valid PAN
  • TDS rate of 20% applies for no PAN/invalid PAN/PAN not linked with Aadhar
  • No TDS for resident individuals if total dividend during Tax Year 2026-27 does not exceed ₹10,000
  • No TDS for resident individuals who provide Form 121 (with all mandatory fields completed)
  • Specific exemptions for resident non-individuals including Insurance Companies, Mutual Funds, Alternative Investment Funds, and NPS Trust upon submission of required documentation
For Non-Resident Shareholders
  • Default withholding tax rate of 20% (plus applicable surcharge and cess)
  • Option to be governed by Double Tax Avoidance Agreement (DTAA) provisions if more beneficial
  • Required documents for DTAA benefits: PAN copy, Tax Residency Certificate, digital Form 41 (covering April 1, 2026 to March 31, 2027), SEBI registration certificate (for FII/FPI), and self-declaration of treaty eligibility
  • Special requirements for shareholders tax resident of Singapore regarding Article 24 - Limitation of Relief

Submission Deadline

All tax-related documents must be submitted to tdsdividend@hikal.com on or before Thursday, September 10, 2026. Documents received after this date will not be considered.

Additional Provisions

  • TDS deducted at higher rate for non-linkage of PAN with Aadhaar as per Section 262 of the Act
  • Declaration under Rule 203 required if dividend income assessable in hands of person other than deductee
  • For shareholders with multiple accounts under different status/category, higher tax rate applicable to the status will be considered on entire holding

Payment and Documentation

The dividend will be paid after deducting applicable TDS once approved at the AGM. Soft copies of TDS certificates will be issued to shareholders' registered email addresses post-payment. Tax credit can be viewed in Form 168 through TRACES or the Income Tax Department's e-filing portal.

Shareholder Actions Required

Shareholders are requested to:

  • Ensure bank account details are updated in demat accounts/physical folios
  • Update KYC data including PAN, email ID, address, and mobile number with the RTA (MUFG Intime India Private Limited)
  • Submit all required tax documents by the September 10, 2026 deadline

Company Disclaimers

The Company reserves the right to:

  • Reject documents if discrepancies are found or if documents are incomplete
  • Independently verify PAN numbers from Depository Participants utility
  • Rely on independent assessment results and deduct taxes at higher rates if contrary information is found
  • Not be liable for any taxes deducted, with shareholders having the option to file returns and claim refunds if eligible

This communication is uploaded on the Company's website at www.hikal.com and has been sent to all shareholders with registered email IDs.