Vaibhav Global Limited has informed the Exchange that SHOPLC Global Inc., USA, a step-down subsidiary of the Company has received a grant amounting to US$ 2.76 million (net of expenses) under the Employee Retention Credit (ERC) Scheme.
VAIBHAVGBL · price
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Vaibhav Global Limited (VGL) has informed the exchange that its US step-down subsidiary, SHOPLC Global Inc., has received a grant of US$ 2.76 million (net of expenses) under the Employee Retention Credit (ERC) Scheme. The ERC is a US government initiative that provides tax credits to businesses for retaining employees during eligible periods, originally introduced during COVID-19. This is a one-time, non-operating inflow to the US subsidiary and will be recognised as income in the relevant period. The amount is modest relative to VGL's overall scale of operations.
This is a small positive, one-time boost to the subsidiary's earnings and cash position. It is not material enough to materially move the stock price, but it does add a small upside to reported profits for the quarter in which it is booked.