Updates

Donear/SECD/SE/2026-27 August 23, 2026 To, To, The Manager, The Manager, Corporate Relations Department, Listing Department, BSE Limited National Stock Exchange of India Limited, Phiroze Jeejeebhoy Tower, Exchange Plaza, Bandra-Kurla Complex, Dalal Street, Fort, Mumbai – 400 001 Bandra (East), Mumbai – 400 051 Scrip Code: 512519 Symbol: DONEAR Sub: Communication to Shareholders - Intimation on Tax Deduction on Dividend Dear Sir/Madam, Pursuant to the Income Tax Act, 1961, as amended by the Finance Act, 2025, dividend distribution tax has been abolished and dividend income is taxable in the hands of the 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 procedures to be followed by the shareholders to ensure appropriate deduction of tax on the dividend, if declared at the 40th Annual General Meeting and payable during FY 2026-2027. This communication is also being made available on the website of the Company at www.donear.com This is for your information and records. Thanking You, For Donear Industries Limited Krishna Agrawal Company Secretary & Compliance Officer Encl: as above DONEAR INDUSTRIES LIMITED CIN: L99999MH1987PLC042076 Registered Office: Plot No. A-50, Donear House, 8th floor, Road No. 1, MIDC, Andheri (East), Mumbai, Maharashtra, 400093 Tel No: +91 22 -68348100, Fax No.: +91 22 68348313 E-mail: investor@donear.com; Website: www.donear.com Date: August 22, 2026 Dear Shareholder(s), We are pleased to inform you that as you are aware, the Board of Directors of the Company, at its meeting held on May 30, 2026 has recommended final dividend of Rs. 0.20 (@10%) per equity share of face value Rs. 2/- for the Financial Year 2025-26, subject to approval of shareholders at the ensuing 40th Annual General Meeting (AGM) of the Company. As you are aware, as per the provisions of the Income-tax Act, 2025 (as amended by Finance Act, 2026) (‘the Act’) and the Rules framed thereunder, dividend paid or distributed by a company shall be taxable at the hands of the Shareholders. Accordingly, the Company is required to deduct tax at source from dividend paid to the Shareholders. This communication provides a gist of the applicable provisions of the Act relating to Tax Deduction at Source (‘TDS’) on dividend. Resident Shareholder: It may be noted that tax would not be deducted on payment of dividend to Resident individual Shareholder, if total dividend to be paid in a financial year does not exceed Rs. 10,000/-. Where the dividend payable exceeds Rs. 10,000/- for tax year 2026-2027, please refer to the table below for the details: Particulars Applicabl Documents required (if any) e Rate With PAN 10% Update/Verify the PAN, and the residential status as per Income Tax Act, 2025 (“Act”) if not already done, with the depositories (in case of shares held in demat mode) and with the Company's Registrar and Transfer Agents – MUFG Intime India Private Limited (formerly Link Intime India Private Limited) (in case of shares held in physical mode) by clicking on the following link https://web.in.mpms.mufg.com/EmailReg/Email_Register.ht Submitting NIL Declaration in Form No. 121 (applicable to any person other Form 121 than a company or a firm) / Form 121(also applicable to an Individual who is 60 years and older), fulfilling certain conditions. The Link to obtain the declaration form is given herein below. Submitting Rate Lower/NIL withholding tax certificate obtained from tax Order under provided authority. Section in the 395(1) of the Order Income Tax Act, 2025 An Insurance NIL Self-declaration that it has full beneficial interest with respect Company as to the shares owned by it along with Self attested PAN. specified under Sec 393(1) (Table Sl. No. 7) of the Income Act,2025) (a)Mutual NIL Self-declaration that they are specified in Schedule VII (Table: Fund Sl. No. 20 or 21) read with section 11of the Income Tax Act, specified 2025 along with self-attested copy of PAN card and under registration certificate. Schedule VII (Table: Sl. No. 20 or 21) read with section 11 of the Income Tax Act, 2025. (b)Alternativ Self-declaration that their income is exempt under Schedule V e Investment (Table: Sl. No. 1) read with section 11 of the Income Tax Act, Fund (AIF) 2025 and they are established as Category I or Category II AIF established under the SEBI Regulations, along with self-attested copy of in India PAN CARD and registration certificate. Non-Resident Shareholder: Particulars Applicable Documents required (if any) Rate Foreign 20% (plus  Update/Verify the PAN and legal entity status as per the Act, Institutional applicable if not already done, with the depositories or with the Investors surcharge Company's Registrar and Transfer Agent ("RTA"), as the case (FIIs) / and cess) may be. Foreign Portfolio  Provide declaration whether the investment in shares has Investors been made under the general FDI route or under the FPI (FPIs) route.  Self-attested copy of SEBI Registration certificate Other Non- 20% (plus Update/Verify the PAN and the residential status as per resident applicable Income Tax Act, 2025, if not already done, with the Shareholder surcharge depositories (in case of shares held in demat mode) and with s and cess) the Company's Registrar and Transfer Agents – MUFG Intime OR India Private Limited (in case of shares held in physical mode) Tax Treaty by clicking on the following link Rate** https://web.in.mpms.mufg.com/EmailReg/Email_Register.ht (whicheve ml. r is lower) In order to apply the Tax Treaty rate, all the following documents would be required: 1) Copy of Indian Tax Identification number (PAN), if available. 2) Valid Tax Residency Certificate (TRC) (tax year April 01,2026 to March 31,2027) obtained from the tax authorities of the country of which the Shareholder is a resident. 3) Digital Form 41 filed on Income-tax portal covering period 01st April 2026 to 31st March 2027. Shareholder can filed digital 10F online at the link http://eportal.incometax.gov.in/ 4) Self-declaration from Non-resident (tax year April 01,2026 to March 31,2027), primarily covering the following:  Non-resident is eligible to claim the benefit of respective tax treaty;  Non-resident receiving the dividend income is the beneficial owner of such income and  Dividend income is not attributable/effectively connected to any Permanent Establishment (PE) or Fixed Base in India.  In case of shareholder being 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). (The Link to obtain the declaration form is given herein below) Submitting Rate Lower/NIL withholding tax certificate obtained from Order u/s provided tax authority. 395(1) (i.e. in the lower or NIL Order withholding certificate) ** Kindly note that the Company is not obligated to apply beneficial DTAA rates at the time of tax deduction / withholding on dividend amounts. Beneficial rate as per DTAA for the purpose of withholding taxes shall depend upon completeness and satisfactory review by the Company of the documents submitted by the non-resident Shareholder. Lower withholding as per Certificate under Section 395: Members should submit declarations in prescribed forms to avail the benefit of non- deduction of tax at source by uploading the aforesaid documents as applicable, on the following link https://web.in.mpms.mufg.com/formsreg/submission-of-Form-121- 41.html on or before September 4, 2026 to enable the Company to determine the appropriate TDS rates. No communication on the tax determination/deduction received post September 4, 2026 shall be considered for payment of the Dividend. It is advisable to upload the documents at the [Showing first 8,000 characters — download PDF for full document]