Bharat Forge Ltd — Notice of Dividend Amount 2021

Nov 18, 2021

November 18, 2021

BHARAT FORGE

To,

BSE Limited, 1st Floor, New Trading Ring, Rotunda Building, P.J. Towers, Dalal Street, Fort, Mumbai - 400 001 BSE SCRIP CODE - 500493

National Stock Exchange of India Ltd., 'Exchange Plaza;, Bandra-Kurla Complex, Sandra (East) Mumbai- 400 051 Symbol: BHARATFORG Series: EQ

Dear Sir/Madam,

Sub: Bharat Forge Limited Interim Dividend -Tax Deduction at Source (TDS) on Dividend & Intimation of RTA Appointment

In furtherance of the Stock Exchange intimations submitted on November 12, 2021 and November 13, 2021 in this regard, we would like to inform that the Board of the Company in its Meeting held on Friday, November 12, 2021, approved the appointment of M/s. Link In Time India Private Limited (SEBI Registration No-lNR000004058) as its Share Registrar And Transfer Agent ("RTA") with effect from December 01, 2021. Further, the Board also declared an Interim Dividend of Rs. 1.5/- per equity share of Rs.2/- each (i.e. 75%) for the Financial Year 20212022.

In this regard, please find enclosed herewith an e-mail communication which has been sent to all the shareholders of the Company whose e-mail IDs are registered with the Company explaining the process on withholding tax from dividends (TDS) paid to the members at prescribed rates along with the necessary annexures and also notifying them about the appointment of M/s. Link In Time India Private Limited as the RTA.

This intimation is also being made available on the website of the Company at w .bharatforge.com.

This is for your information and records.

Kindly take a note of the same.

Thanking you,

For BhJrcft Forge Limited �haudhari Company Secretary

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KALYANI GROUP COMPANY

BHARAT FORGE LIMITED, MUNDHWA, PUNE 411 036, MAHARASHTRA, INDIA. PHONE: +91 20 6704 2777 rAX: +91 20 2682 0699 !Export), 2682 2387 (Scles/Mktg) 2682 2163 !Materials) Emoll : lnfo@bharotlorge.com Website : www.bhorollorge,com CIN No. L25209PN1961PLC012046

BHARAT FORGE LIMITED

Registered office : Pune Cantonment, Mundhwa Pune – 411036, Maharashtra, India Telephone : +91-20-6704 2476 / 2451; Fax : +91-20- 2682 2163 E-mail : secretarial@bharatforge.com ; Website : www.bharatforge.com CIN : L25209PN1961PLC012046

Date: November 15, 2021

IMPORTANT AND FOR YOUR IMMEDIATE ATTENTION PLEASE!

Sub: Bharat Forge Ltd Interim Dividend -Tax Deduction at Source (TDS) on Dividend & Intimation of RTA Appointment.

Dear Shareholder(s),

We hope this communique finds you safe and in good health.

We are pleased to inform you that the Board of Directors of Bharat Forge Ltd (“the Company”) in its Meeting held on Friday, November 12, 2021, approved the appointment of M/s. Link In Time India Private Limited (SEBI Registration No-INR000004058) as its new share registrar and transfer agent (“RTA”) with effect from December 01, 2021.

Hence, effective from December 01, 2021, security holders, beneficial owners and depository participants are requested to deliver all their requests / documents / correspondence relating to the Company’s shares at the below mentioned address:Link In Time India Private ltd C101, 247 Park, L.B.S Marg, Vikhroli (West) Mumbai -400083 Contact No-022-49186270

We also wish to inform you that the Board of Directors at its Meeting has recommended an Interim Dividend of Rs. 1.5/- per equity share of Rs.2/- each (i.e. 75%) for the Financial Year 2021-2022.

As you are aware as per the Income-Tax Act 1961, as amended by the Finance Act, 2020, dividend paid and distributed by a company are taxable in the hands of shareholders with effect from April 1, 2020. The Company shall therefore be required to deduct tax at source (TDS) at the time of making the payment of the said Dividend, if you remain as a shareholder as on record date (i.e. November 26, 2021).

The TDS rate may vary depending on the residential status of the shareholder and the documents submitted by them and accepted by the Company in accordance with the provisions of the Act.

The TDS for various categories of shareholders along with required documents are provided in table below:

Details are as under:

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Category of Tax Rate Exemption applicability/Documentation requirement
Shareholders
No tax shall be deducted on the dividend payable to
resident individuals if -
 the total dividend to be paid to the shareholder during F.Y.
2021-22 by the Company does not exceed Rs.5,000/-; or
shareholder provides Form 15G (applicable to any person
10% other than a Company or a Firm) or Form 15H (applicable
Resident
to an Individual above the age of 60 years), provided that
Individual
the eligibility conditions are being met.
Shareholder
(Click here to download Form 15G – Annexure 1)
(Click here to download Form 15H – Annexure 2)
20% Tax will be deducted at a higher rate of 20%, if –
 if valid PAN of the shareholder is not available;
 PAN is not updated / registered / linked to the Aadhaar
card;
Resident Non- NIL No tax shall be deducted on the dividend payable to the
Individual following resident non-individuals where they provide details
Shareholder and documents as per the format attached in Annexure – 3.
–
(Click here to download Annexure 3)
Insurance Companies - Self-declaration that it qualifies as
'Insurer' as per section 2(7A) of the Insurance Act, 1938 and
has full beneficial interest with respect to the ordinary shares
owned by it along with self-attested copy of PAN card and
certificate of registration with Insurance Regulatory and
Development Authority (IRDA)/ LIC/ GIC.
Mutual Funds - Self-declaration that it is registered with
SEBI and is notified under Section 10 (23D) of the Act along
with self-attested copy of PAN card and certificate of
registration with SEBI.
Alternative Investment fund - Self-declaration that its
income is exempt under Section 10 (23FBA) of the Act and
they are registered with SEBI as Category I or Category II AIF
along with self-attested copy of the PAN card and certificate
of AIF registration with SEBI.
New Pension Scheme (NPS) Trust - Self-declaration that it
qualifies as NPS trust and income is eligible for exemption
under section 10(44) of the Act and being regulated by the
provisions of the Indian Trusts Act, 1882 along with self-
attested copy of the PAN card.
Other Non-Individual Shareholders - Self-attested copy of
documentary evidence supporting the exemption along with
self-attested copy of PAN card.
Note: In case, shareholders (both individuals and non-individuals) provide
certificate under Section 197 of the Income-tax Act, 1961, for lower / NIL
withholding of taxes, rate specified in the said certificate shall be
considered, on submission of self-attested copy of the same. However,
Section 206AB overrides all other provisions of the Act. Given this, it would
apply even to those cases where the Tax deductees have obtained a Nil or
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Category of Tax Rate Exemption applicability/Documentation requirement
Shareholders
lower TDS certificate from the Tax Office or has provided a declaration
under Section 197A
Non-Resident 20% (plus NIL/ Lower withholding tax rate shall be deducted on the
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Category of Shareholders Tax Rate Exemption applicability/Documentation requirement	Category of Shareholders Tax Rate Exemption applicability/Documentation requirement	Category of Shareholders Tax Rate Exemption applicability/Documentation requirement
lower TDS certificate from the Tax Office or has provided a declaration under Section 197A
Non-Resident	20% (plus	NIL/ Lower withholding tax rateshall be deducted on the
Shareholder	applicable surcharge and cess)	dividend payableon submission of self-attested copy of the certificate issued under Section 195/197 of the Act. Non-Resident Shareholder has the option to be governed by the provisions of the Double Tax Avoidance Treaty (DTAA) between India and the country of tax residence of the shareholder. To avail Tax treaty benefits, the non-resident shareholders are required to provide the following:  Self-attested copy of the PAN card allotted by the Indian Income Tax authorities. In case, PAN is not available, the non-resident shareholder shall furnish (a) name, (b) email id, (c) contact number, (d) address in residency country, (f) Tax Identification Number of the residency country as per Annexure 4. (Click here to download Annexure – 4)  Self-attested copy of Tax Residency Certificate (TRC) (for the period April 2021 to March 2022) obtained from the tax authorities of the country of which the shareholder is a resident.  Self-declaration in Form 10F –Annexure 5 (Click here to download Annexure – 5)  Self-declaration by shareholder of meeting treatyeligibility requirement and satisfying beneficial ownership requirement , for the period April 2021 to March 2022 in Annexure 6 (Click here to download Annexure – 6)  In case of Foreign Institutional Investors and Foreign Portfolio Investors copy of SEBI registration certificate.  In case of shareholder being tax resident of Singapore, please furnish the letter issued by the competent authority or any other evidences demonstrating the non-applicability of Article 24 - Limitation of Relief under India-Singapore Double Taxation Avoidance Agreement (DTAA).  It is recommended that shareholders should independently satisfy its eligibility to claim DTAA benefit includingmeeting ofallconditionslaid downbyDTAA.

Please note that the Company is not obligated to apply the beneficial DTAA rates at the time of tax deduction/withholding on dividend amounts. Application of beneficial DTAA Rate shall depend upon the completeness and satisfactory review by the Company, of the documents submitted by Non- Resident Shareholder.

TDS to be deducted at higher rate in case of non-filers of Return of Income

The Finance Act, 2021, has inter alia inserted the provisions of section 206AB of the Act with effect from July 1, 2021. The provisions of section 206AB of the Act require the deductor to deduct tax at higher of the following rates from amount paid/ credited to 'specified person':

• i. At twice the rate specified in the relevant provision of the Act; or ii. At twice the rates or rates in force; or iii. At the rate of 5%

The 'specified person' means a person who has:

• a. not filed return of income for both of the two assessment years relevant to the two previous years immediately prior to the previous year in which tax is required to be deducted, for which the time limit of filing return of income under sub-section (1) of section 139 has expired; and

• b. subjected to tax deduction/collection at source in aggregate amounting to Rs.50,000 or more in each of such two immediate previous years.

For shareholders having multiple accounts under different status / category:

Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.

If the dividend income is taxable in the hands of any person other than the recipient of the dividend, then the requisite details by way of a declaration under section 199 of the Act and Rule 37BA of the Income-tax Rules, 1962 should be provided by the registered owner.

Submission of tax related documents:

As mentioned above we have appointed M/s. Link In Time India Private limited as our RTA hence the dividend processing, TDS documentation etc will be handled by our RTA on behalf of the Company.

If you have not submitted the TDS deduction documents earlier for Financial Year 2021-22 for the purpose of claiming exemption from tax deduction at source, you are requested to submit the same on the portal - https://dividend.autotlowtech.com/ on or before November 25, 2021 or in case of any difficulty, you can also to submit to the Company / Registrar at email Id : tdsforms@bharatforge.com.

No documents will be considered after November 25, 2021.

We request you to kindly take note accordingly.

In case of any queries the shareholders can send an email to: tdsforms@bharatforge.com on or before November 25, 2021.

It may be further noted that in case the tax on said Interim Dividend is deducted at a higher rate in the absence of receipt of the aforementioned details/documents from you, there would still be an option available with you to file the return of income and claim an appropriate refund, if eligible.

No claim shall lie against the Company for such taxes deducted.

The tax credit can be viewed in Form 26AS by logging in with your credentials (with valid PAN) at TRACES https://www.tdscpc.gov.in/app/login.xhtml or the e-filing website of the Income Tax department of India https://www.incometaxindiaefiling.gov.in/home.

Updation of PAN/ Bank Account details:

All Shareholders are requested to ensure that the details such as Permanent Account Number (PAN), residential status, category of Shareholder (e.g. Domestic Company, Foreign Company, Individual, Firm, LLP, HUF, Foreign Portfolio Investors / Foreign Institutional Investors, Government, Trust, Alternate Investment Fund, etc.), email id and address and Bank account details are updated, in their respective demat account(s) maintained with the Depository Participants. Physical Shareholder shall furnish details to the Company’s registrar and share transfer agent -Link In Time India Private Limited.

Above communication on TDS sets out the provisions of Income-tax Act, 1961 as applicable in a summary manner only and does not purport to be a complete analysis or listing of all potential tax consequences.

Shareholders should consult with their own tax advisors for the tax provisions that may be applicable to them.

We request your cooperation in this regard.

Thanking you,

Yours faithfully, For Bharat Forge Limited

Tejaswini Chaudhari Company Secretary

Disclaimer: This communication shall not be treated as an advice from the Company. Since the tax consequences are dependent on facts and circumstances of each case, the Shareholders are advised to consult their own tax consultant with respect to specific tax implications arising out of receipt of dividend.

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