Nelco Limited announced an update/change in the status of the litigation or dispute relating to Goods and Service Tax (GST) which was reported to the exchange vide letter dated August 14, 2023. The occurrence of event (date of receipt of order) was July 1, 2024. Name(s) of the opposing party: Goods and Service Tax (GST); Court/tribunal/agency where litigation is filed Deputy Commissioner of CGST & C.Ex.

The Company has received adjudicating order with aggregate demand of INR 20.4 million towards GST liability based on reverse charge mechanism for period from July 1, 2017 to March 31, 2019. Against this demand Company is in process to file appeal before appellate authority. Expected financial implications, if any, due to compensation, penalty etc.

The expected financial implication not ascertainable at this stage. Quantum of claims, if any; INR 20.4 million.