General Updates

June 26, 2026 The BSE Limited The National Stock Exchange India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai-400001 Bandra (E), Mumbai-400051 Scrip code: 540203 NSE Symbol: SFL Subject: Communication to Shareholders - Intimation of Tax Deduction on Dividend Dear Sir/Madam, Pursuant to the Income Tax Act, 2025, dividend paid and distributed by a Company is taxable in the hands of shareholders. In this regard, please find enclosed herewith an e-mail communication sent to all shareholders having their e-mail IDs registered with the Company/Depositories explaining the process regarding the applicability of tax deduction and formalities to be followed by the shareholders to ensure appropriate deduction of tax on the dividend, if declared at the 54th Annual General Meeting and payable during FY 2026-27. This communication is also being made available on the website of the Company at www.sheelafoam.com Kindly take the above information on record. Thanking you. Yours faithfully, For Sheela Foam Limited (Md. Iquebal Ahmad) Company Secretary and Compliance Officer SHEELA FOAM LTD. #14, Sleepwell Tower, Sector 135, Noida- 201301 Ph: Int-91-120-4868400 •Email: investorrelation@sheelafoam.com • contactus@sheelafoam.com Regd. Office: 1002 to 1006 The Avenue, International Airport Road, Opp Hotel Leela Sahar, Andheri East, Mumbai, Maharashtra, India, 400059 • Ph: Int-91-22-28265686/88/89 Toll Free: 1800 103 6664 • www.sleepwellproducts.com • www.sheelafoam.com CIN- L74899MH1971PLC427835 Sheela Foam Limited CIN: L74899MH1971PLC427835 Registered office: 1002 to 1006 The Avenue, International Airport Road, Opp Hotel Leela Sahar, Andheri East, Mumbai, Maharashtra, India, 400059 Corporate Office: Plot No. 14, Sleepwell Tower, Sector 135, Noida , Uttar Pradesh - 201301 Tel: +91 120 4868400, E-mail: investorrelation@sheelafoam.com Website: www.sheelafoam.com Dear Shareholders, Subject: Sheela Foam Ltd – Communication on Tax Deduction at Source (‘TDS’) on Dividend payout The Board of Directors of the Company at its meeting held on 14th May, 2026, has recommended a final dividend of Re. 1/- (i.e. 20%) per equity share of Face value Rs. 5/- per share for the financial Year 2025-26, subject to the approval of members of the Company at the Annual General Meeting scheduled to be held on 16th July, 2026. The said dividend will be payable to those members whose names appear in the Register of Members of the Company on the record date, i.e. 09th July, 2026. In accordance with the provisions of the Income-tax Act, 2025 (“the Act”), dividends declared and paid by the Company are taxable in the hands of its members, and the Company is required to deduct tax at source ("TDS") from dividends paid to the members at the applicable rates. The tax rates would vary depending on the residential status of the shareholder and the requisite documents registered with the Company. No tax will be deducted on payment of dividend to the resident individual shareholder if the total dividend, paid during Tax year (‘TY’) 2026-27, does not exceed Rs. 10,000/- A. RESIDENT SHAREHOLDERS: A.1 Tax deductible at source for Resident Shareholders S Particular Withholding tax rate Declaration/documents required 1 Valid PAN updated in the Company's 10% N.A. Register of Members 2 No (not registered) / invalid PAN and no 20% N.A. exemption sought by Shareholder 3 Availability of lower/nil tax deduction The rate specified in • Copy of PAN card certificate issued by the Income Tax the lower tax • Copy of lower tax withholding Department u/s 395(1) of the Act withholding certificate certificate A.2 Nil Tax Deductible at Source on dividend payment to Resident Shareholders if the Shareholders submit documents mentioned in the table below with the Company/ RTA S No. Particular Declaration/documents required 1 An Individual having dividend • Copy of PAN card (refer to point iii in the Notes below) income of more than Rs 10,000 • Declaration in Form No. 121, fulfilling prescribed conditions. and furnishing Form 121 2 Shareholders to whom section • Copy of PAN card 393(1) of the Act does not apply, • Self-declaration (Please download the Link given such as LIC, GIC, Business Trust as Annexure-1, at the end of this communication), along with (REIT, InVIT) etc. adequate documentary evidence (e.g., registration certificate), to the effect that no tax withholding is required as per provisions of section 393(1) of the Act. 3 Shareholder covered u/s 393(5) of • Copy of PAN card the Act such as Government, RBI, • Self-declaration (Please download the Link given Mutual Funds specified under as Annexure-1, at the end of this communication), along with Schedule VII to Section 11 of the adequate documentary evidence, substantiating the Act, corporations established by applicability of 393(5) of the Act. Central Act and exempt from Income Tax. 4 Category I and II Alternative • Copy of PAN card Investment Fund (AIF) • Self-declaration (Please download the Link given as Annexure-1, at the end of this communication) that AIF’s income is exempt under Schedule V to Section 11 of the Act and they are governed by SEBI regulations as applicable to Category I or Category II AIFs, along with a copy of the registration certificate. 5 Any other entity is exempt from • Copy of PAN card withholding tax under the • Self-declaration (Please download the Link given provisions of section 393(6) of the as Annexure-1 & 2, at the end of this communication) along Act with adequate documentary evidence, substantiating the nature of the entity • Copy of the lower tax withholding certificate B. NON-RESIDENT SHAREHOLDERS: Tax deductible at source for non-resident shareholders. S No. Category Withholding Declaration/documents required tax rate 1 Foreign Institutional 20% (plus • Copy of PAN card (if available) Investors (FIIs) / Foreign applicable • Self-declaration (Please download the Link given Portfolio Investors (FPIs) surcharge and as Annexure-3, at the end of this communication). cess) or tax • Copy of Tax Residency certificate issued by the treaty rate revenue authority of the country of residence of whichever is the shareholder for the Tax Year 2026-27 (covering beneficial the period from April 1, 2026 to March 31, 2027) • Shareholders need to mandatorily provide digital Form 41 covering the period from April 1, 2026 to March 31, 2027 2 Alternative Investment 10% (plus • Copy of PAN card (if available) Fund – Category III applicable • Self-declaration (Please download the Link given located in International surcharge and as Annexure-4, at the end of this Financial Services Centre cess)# communication) along with adequate documentary evidence substantiating the nature of the entity 3 Other Non-resident 20% (plus To avail beneficial rate of tax treaty, the following tax shareholders (except applicable documents would be required: those who are tax surcharge and residents of Notified cess) or tax • Copy of PAN card (if available) Jurisdictional Area) treaty rate • Copy of Tax Residency certificate issued by whichever is revenue authority of the country of residence of beneficial shareholder for the Tax Year 2026-27 (covering the period from April 1, 2026 to March 31, 2027) • Shareholders need to mandatorily provide digital Form 41 covering the period from April 1, 2026 to March 31, 2027 • Self-declaration for non-existence of permanent establishment / fixed base/business connection in India, place of effective management, beneficial ownership and eligibility to avail tax treaty benefit [on shareholder’s letterhead] (Please download the Link given as Annexure-3, at the end of this communication) • In case of a shareholder being a tax resident of Singapore, please furnish the letter issued by the competent authority or any other evidence demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapore Double Taxation Avoidance Agreement (DTAA). Non-Resident 30% NA Shareholders [Showing first 8,000 characters — download PDF for full document]