DCW : Communication to shareholders as per Reg 30

DCW LIMITED

CIN: L24110GJ1939PLC000748

Regd. Office: Dhrangadhra - 363 315, Gujarat State

Head Office: 3rd Floor, Nirmal, Nariman Point, Mumbai - 400021

Tel: 022-22871914 | Fax: 022-22028839

Website: www.dcwltd.com E-Mail: legal@dcwltd.com

Dear Shareholder,

Sub: Communication in respect of deduction of tax at source on dividend pay-out

We are pleased to inform you that the Board of Directors of the Company at their meeting held on May 24, 2022 recommended dividend of Rs. 0.40/- (Forty Paise only) per equity of face value of Rs. 2/- each for the financial year ended March 31, 2022.This dividend is subject to approval of shareholders at the forthcoming Annual General Meeting ("AGM").

Pursuant to the requirement of the Income Tax Act, 1961, the Company will be required to withhold taxes at the prescribed rates on the dividend paid to its shareholders.:

For Resident shareholders, taxes shall be deducted at source under Section 194 of the Act, as follows:

• Individual shareholder needs to ensure that his/her PAN is linked with Aadhar number else his/her PAN is invalid.

However, no tax shall be deducted on the dividend payable to a resident individual shareholder if the total dividend to be received by them during the financial year 2022-23 does not exceed Rs. 5,000/- and also in cases where shareholder provide form 15G (applicable to any person other than HUF or a Company or a firm)/form 15H (applicable toan individual who is 60 years and older) subject to conditions specified in the Act.

Shareholders may also submit any other document as prescribed under the Act to claim a lower/nil withholding tax. PAN is mandatory for shareholders providing form 15G/form 15H or any other documents as mentioned above. The formats of form 15G/form 15H are

also available on the website of our registrar and transfer agent ("RTA") Bigshare Services Private Limited at www.bigshareonline.com.

For Resident Mutual funds and Insurance Company shareholders:

In order to provide exemption from TDS on the dividend payable to a Mutual Fund specified under clause (23D) of Section 10 of the Act or an Insurance Company as specified in Section 194 of the Act, shareholders should submit the below document along with exemptionnotification, if any, as per the relevant provisions of the Act:

1. Declaration by shareholder qualifying as Insurer as per Section 2(7A) of the Insurance Act, 1938 - Annexure 1
2. Declaration by Mutual Fund shareholder eligible for exemption under Section 10(23D) of the Act - Annexure 2
3. Declaration by Category I/II Alternate Investment Fund (AIF) registered with SEBI - Annexure 3

Declaration for exemption under Circular 18/2017 of the Act:

In case of any shareholder whose income is subject to lower rate of TDS, or is exempt under the Act, such shareholder is requested to submit the following documents, if eligible as per the relevant provisions of the Act, duly signed by the authorized signatory:

1. Lower withholding tax certificate for the financial year 2022-23, if any obtained from the Income Tax authorities.
2. In case the shareholder has obtained tax exemption status under any provisions of the Act, the documentary evidence along with declaration for the same - Annexure 4

For Non-Resident shareholders, taxes are required to be withheld in accordance with the provisions of Section 195 and other applicable sections of the Act, at the rates in force. The withholding tax shall be at the rate of 20% (plus applicable surcharge and cess) or as notified by Government of India on the amount of dividend payable. However, as per Section 90 of the Act, non-resident shareholders may have an 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, if they are more beneficial to them. In order to avail the benefits of DTAA, the non-resident shareholders will have to provide the following:

• Self-attestedTax Residency Certificate (TRC) for the financial year 2022-23, obtained from the tax authorities of the country of which the shareholder is a resident.
• Self-attestedcopy of PAN allotted by the Indian Income Tax authorities. In case of non-availability of PAN, information under sub-rule 2 of Rule 37BC to be submitted - Annexure-5
• Self-declarationin Form 10F duly filled and signed (as per format available on the website of the RTA) Self-declaration from non-resident shareholder - Annexure 7, primarily covering the following:

1. Non-residentis and will continue to remain a tax resident of the country of residence during the financial year 2022-23;
2. Non-residentis eligible to claim the benefit of respective tax treaty;
3. Non-residenthas no reason to believe that its claim for the benefits of the DTAA is impaired in any manner;
4. Non-residentreceiving the dividend income is the beneficial owner of such income;
5. Dividend income is not attributable/effectively connected to any permanent establishment (PE) or fixed base in India;
6. In case of Foreign Institutional Investors and Foreign Portfolio Investors, self-attested copy of SEBI registration certificate; and
7. 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).
8. In case of shareholder being Indian Branch of a Foreign Bank, NIL withholding tax is applicable subject to submission of the following documents :
9. 1. Lower tax deduction certificate u/s 195(3) of Income Tax Act, 1961 obtained from Income Tax Authority.
   2. Self-declarationconfirming that the income is received on its own account and not on behalf of the Foreign Bank and the same will be included in taxable income of the branch in India.
   3. In case above documents are not made available, then TDS / Withholding tax will be at 40% (plus applicable surcharge and cess)

• Any other documents as prescribed under the Act for lower withholding tax if applicable, duly attested by the shareholder.

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.

Declaration by shareholders under Rule 37BA (2) of the Income Tax Rules, 1962:

In order to enable the Company to provide credit of tax deducted at source to beneficial shareholders in whose hands dividend paid by Company is assessable, shareholders are requested to provide declaration in format (as available on the website of the RTA) as prescribed under Rule 37BA(2) of the Income Tax Rules, 1962

Section 206AB of the Act:

Rate of TDS @10% under Section 194 of the Act is subject to provisions of Section 206AB of the Act which introduces special provisions for TDS in respect of non-filers of income-tax return. As provided in Section 206AB, tax is required to be deducted at higher of following rates in case of payments to specified persons:

• at twice the rate specified in the relevant provision of the Act; or

• at twice the rate or rates in force; or
• at the rate of 5%.

Where Sections 206AA and 206AB are applicable i.e. the specified person has not submitted the PAN as well as not filed the tax return, the tax shall be deducted at the higher of the two rates prescribed in these two sections.

The term 'specified person' is defined in sub section (3) of Section 206AB as who satisfies the following conditions:

• A person who has not filed the returns of income for AY 21-22/AY22-23, as may be applicable and;
• The aggregate of TDS and TCS in his case is ₹50,000/- or more in the said previous year.

The non-resident who does not have the permanent establishment is excluded from the scope of a specified person.

We request you to inform us well in advance and before cut-off date, if you are covered under the definition of 'specified person' as provided in Section 206AB of the Act. The Company reserves its right to recover any demand raised subsequently on the Company for not informing the Company or providing wrong information about applicability of Section 206AB in your case.

For all shareholders:

Shareholders are requested to update tax residential status, permanent account number (PAN), registered email address, mobile numbers and other details with their depository participants, in case the shares are held in dematerialized form. In case a shareholder is holding shares in physical mode, he/she is requested to furnish details to the Company's registrar and share transfer agent.

The aforementioned forms/annexures for tax exemption can be downloaded from the website of the Company's RTA - https://www.bigshareonline.com/Resources.aspx.

All the forms / annexures are available under the head "Form 15G/15H/10F", on theInvestors section, under "Investors Resources" tab.

The aforementioned documents (duly completed and signed) are required to besubmitted to the Registrar and Share Transfer Agent at tds@bigshareonline.com.

Alternatively, these declaration can be submitted online also at https://www.bigshareonline.com/InvestorLogin.aspx.