This disclosure provides an update to the stock exchanges regarding Vadilal Industries Limited's assessment of its compliance with minimum wage statutory provisions, as previously disclosed on February 21, 2026.

The Board constituted a dedicated sub-committee comprising Independent Directors and Key Managerial Personnel to oversee a comprehensive assessment of whether the Company has paid minimum wages to its workforce in accordance with the Minimum Wages Act, 1948 and the Code on Wages, 2019 (collectively referred to as "Wage Codes").

To accelerate and facilitate the ongoing review, the Board commissioned an independent Big 6 accounting firm to conduct an assessment of the Company's compliance under the supervision of the Sub-Committee. The Independent Firm was also tasked with recommending improvements to further strengthen the Company's compliance with applicable labour laws.

The Independent Firm undertook a detailed assessment focusing on the Company's payment of minimum wages to its contract workmen across all plant locations: Bareilly Plant, Dharampur Plant, and Pundhra Plant. The review covered the period from April 2025 to March 2026.

The assessment methodology included:

  • Verifying aggregate monetary values in vendor wage summaries against amounts claimed in invoices
  • Reviewing 100% of wage data for all vendors across all plant locations for peak demand months
  • On-site verification of individual employee-level wages against applicable minimum wage rates
  • Reconciliation of net pay figures in wage registers against corresponding bank payment advice
  • Cross-verification of salary register entries against supporting documentation to ensure accuracy and completeness

Based on this comprehensive assessment, the Independent Firm observed that there was no material non-compliance with the Wage Codes and no wage shortfalls at the individual employee level across any of the Company's plant locations.

The Company also conducted a separate review of minimum wage compliance for direct (on-roll) employees and found no non-compliance with the Wage Codes.

The Board has taken note of the suggestions and recommendations from the Independent Firm and has directed the implementation of enhanced operational best practices. These include digitalization of wage registers and related records, and installing biometric systems across all plant locations to ensure ongoing compliance with applicable labour laws.

Financial Impact

The disclosure does not quantify any financial impact from the assessment findings or the recommended operational improvements.