Updates

August 27, 2026 BSE Limited, National Stock Exchange of India Limited, P J Towers, Exchange Plaza, Dalal Street, Bandra-Kurla Complex, Bandra, Mumbai - 400 001. Mumbai - 400 051. Scrip Code: 524735 Symbol: HIKAL Dear Sir/Madam, Subject: Communication to the Shareholders - Intimation of Tax Deduction on Dividend Pursuant to provisions of the Income Tax Act, 2025, dividend income is taxable in the hands of the shareholders. In this regard, please find enclosed herewith an email communication which has been sent to all the shareholders having their email ID’s registered with the Company/ Register and Share Transfer Agents/ Depositories, elaborating the process to be followed in respect of the applicability of tax deduction and formalities to be complied by the shareholders to ensure appropriate deduction of tax on the dividend, if declared and payable during the financial year 2026-27. This intimation is also being uploaded on the Company’s website at www.hikal.com. You are requested to kindly take the same on record. Yours sincerely, For Hikal Limited Rajasekhar Reddy Company Secretary & Compliance Officer Encl: As above Hikal Ltd. Admin. Office: Great Eastern Chambers, 6th Floor, Sector 11, CBD Belapur, Navi Mumbai - 400 614, India. Tel. + 91–22–6277 0299, + 91–22–6866 0300 Regd. Office: 717/718, Maker Chambers - 5, Nariman Point, Mumbai - 400 021, India. Tel. +91-22 6277 0477. Fax: + 91-22 6277 0500 www.hikal.com info@hikal.com CIN: L24200MH1988PTC048028 HIKAL LIMITED Regd. Office: 717/718, 7th Floor, Maker Chamber V, Nariman Point, Mumbai – 400 021. Corporate Identification No.: L24200MH1988PTC048028 Tel No.: 022 6277 0477/ 6277 0500 Email: secretarial@hikal.com Website: www.hikal.com August 27, 2026 TDS COMMUNICATION Folio/ DP id & Client Id No: XXXXXXXX Name: ******* ***** Dear Shareholder, We are pleased to inform you that the Board of Directors of the Company at their Meeting held on Wednesday, May 27, 2026, has recommended a Final Dividend of Rs. 0.40/- paise per equity share having a face value of Rs. 2/- for the Financial Year ended March 31, 2026, and the said Final Dividend will be payable post approval of the shareholders at the ensuing 38th Annual General Meeting (“AGM”) of the Company to be held on Wednesday, September 23, 2026. As per the Income Tax Act, 2025 (the Act), dividends paid or distributed by the Company are taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source (TDS) at the time of making the payment of the said Dividend if approved at the aforesaid AGM. Please note that the Company has fixed Friday, September 04, 2026, as the record date for identification and determining the eligibility of shareholders to whom the final dividend will be paid. Shareholders are requested to ensure that their bank account details in their respective demat accounts/physical folios are updated, to enable the Company to make timely credit of dividends in their bank accounts. The tax deduction rates would vary depending on the residential status of the shareholders, documents submitted by the shareholders and accepted by the Company. This communication provides a brief of the applicable TDS Deduction at Source (TDS) provisions under the Act for Resident and Non-Resident shareholder categories. FOR RESIDENT SHAREHOLDERS Tax is required to be deducted at source under Section 393(1) read with 393(4) of the Act, at the rate of 10% on the amount of dividend where shareholders have registered their valid Permanent Account Number (PAN). In case shareholders do not have a PAN / invalid PAN/ PAN not linked with Aadhar, TDS at the rate of 20% shall be deducted under Section 397(2) of the Act. A. Resident Individuals: No tax shall be deducted on the dividend payable to resident individuals if: i. The total dividend amount to be received by them during the Tax Year (TY) 2026-27 does not exceed Rs. 10,000/-; or ii. The shareholder provides Form 121 (applicable to all individuals irrespective of the age) provided that all the required eligibility conditions are met. Please note that all fields are mandatory to be filled up and the Company may at its sole discretion, reject the form if it does not fulfill the prescribed requirement under the Act. The template of Form 121 is enclosed as Annexure 1. iii. An exemption certificate is issued by the Income-tax Department, if any. B. Resident Non-Individuals: No tax shall be deducted on the dividend payable to the following resident non-individuals where they provide details and documents as per the format attached in Annexure 2. i. Insurance Companies: Self-declaration that it qualifies as an ‘Insurer’ as per section 2(7A) of the Insurance Act, 1938, and has full beneficial interest with respect to the equity shares owned by it along with a self-attested copy of PAN card and certificate of registration with Insurance Regulatory and Development Authority (IRDA)/ LIC/ GIC. ii. Mutual Funds: Self-declaration that it is registered with SEBI and as specified under Schedule VII to section 11 of the Act along with a self-attested copy of PAN card and certificate of registration with SEBI. iii. Alternative Investment Fund (AIF): Self-declaration that its income is exempt under Schedule V to section 11 of the Act, and they are registered with SEBI as Category I or Category II AIF along with a self-attested copy of the PAN card and certificate of AIF registration with SEBI. iv. New Pension System (NPS) Trust: Self-declaration that it qualifies as an NPS trust and income is eligible for exemption under Schedule VII to section 11 of the Act, and being regulated by the provisions of the Indian Trusts Act, 1882 along with a self-attested copy of the PAN card. v. Other Non-Individual shareholders: Self-attested copy of documentary evidence supporting the exemption along with a self-attested copy of PAN card. C. In case, shareholders (both individuals or non-individuals) provide a certificate under Section 395(1) of the Act, for lower / NIL withholding of taxes, the rate specified in the said certificate shall be considered, on submission of a self-attested copy to the company. Note: Recording of the PAN for the registered Folio/DP ID-Client ID is mandatory. In the absence of valid PAN, tax will be deducted at a higher rate of 20%, under Section 397(2) of the Act. FOR NON-RESIDENT SHAREHOLDERS As per the Domestic Tax Law Taxes are required to be withheld in accordance with the provisions of Section 393(2) of the Act , as per the rates applicable. As per the relevant provisions of the Act, the withholding tax shall be at the rate of 20% (plus applicable surcharge and cess) on the amount of dividend payable to them. In case non-resident shareholders provide a certificate issued under Section 395(1) of the Act, for lower/ Nil withholding of taxes, the rate specified in the said certificate shall be considered, on submission of a self-attested copy of the same. As per the Double Tax Avoidance Agreement (DTAA) i. Any Non-resident shareholder, Foreign Institutional Investors, Foreign Portfolio Investors (FII, FPI): As per Section 159 of the Act, the non-resident shareholder, including Foreign Institutional Investors and Foreign Portfolio Investors, has the option to be governed by the provisions of the DTAA between India and the country of tax residence of the shareholder, if they are more beneficial to them. For this purpose, i.e., to avail DTAA benefits, the non-resident shareholders are required to submit the following: a) Self-attested copy of the PAN card allotted, if any, by the Indian Income Tax authorities. b) Self-attested copy of Tax Residency Certificate (TRC) for the tax year April 1, 2026, to March 31, 2027, or calendar year 2026, valid as on record date, obtained from the tax authorities of the country of which the shareholder is a resident. c) Shareholders need to mandatorily provide digital Form 41 covering the period from April 1, 2026, to March 31, 2027 (Refer Annexu [Showing first 8,000 characters — download PDF for full document]