Nelco Limited has received an order from the Commissioner of Central Goods and Services Tax (CGST) and Central Excise confirming a significant GST demand. The telecommunications equipment manufacturer disclosed this development to stock exchanges under Regulation 30 of SEBI listing regulations on March 11, 2026.

GST Order Details

The company received the order on March 10, 2026 at 6:00 PM from the Office of the Commissioner of CGST & Central Excise. The order confirms the demand raised by the Joint Commissioner of CGST & Central Excise regarding GST liability based on reverse charge mechanism.

Background and Context

This order follows an earlier show cause notice that Nelco had received from the Joint Commissioner of CGST & Central Excise. The notice pertained to GST liability based on reverse charge mechanism for the three-year period from April 2019 to March 2022. The company had previously filed a reply with the Adjudicating Commissioner, GST and Central Excise in response to the show cause notice.

Company's Response Strategy

Nelco has indicated that it will pursue an appeal or evaluate other legal options against the order. The company stated that there is no financial impact at this stage, suggesting it views the matter as contestable through the legal process.

Financial Implications

The order confirms a total demand of Rs 1,414 lakhs, which includes both the primary GST liability and penalty components. The penalty portion specifically amounts to Rs 707 lakhs. However, the company has indicated no immediate financial impact, likely due to its intention to challenge the order through appropriate legal channels.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded this information on its website at www.nelco.in as part of its transparency obligations to stakeholders.

NELCO Limited has announced the appointment of Protiviti India Member Private Limited as its internal auditor for a three-year term, marking a significant step in strengthening the company's audit and governance framework. The decision was approved by the Board of Directors during their meeting held on February 21, 2026, following a recommendation from the Audit Committee.

Appointment Details

The board meeting, which commenced at 10:30 a.m. and concluded at 5:10 p.m., formally approved the engagement of Protiviti India Member Private Limited as the internal auditor for three consecutive years starting from FY 2026-27. The appointment was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

About Protiviti India

Protiviti is a global consulting firm that brings extensive expertise to NELCO's internal audit function. The firm delivers deep expertise, objective insights, and tailored approaches to help leaders confidently face future challenges. Protiviti and its independent and locally owned member firms provide clients with comprehensive consulting and managed solutions across multiple domains.

The firm's service portfolio includes:

• Finance and operations consulting
• Technology and digital solutions
• Data analytics and insights
• Legal and HR advisory
• Risk management and internal audit services

Protiviti operates through a network of more than 90 offices spanning over 25 countries, providing global reach with local expertise.

Regulatory Compliance

The appointment disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also complied with the requirements under SEBI Master Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. All relevant information has been made available on the company's website at www.nelco.in .

The appointment represents NELCO's continued focus on maintaining robust internal controls and governance standards, ensuring compliance with regulatory requirements while enhancing operational efficiency through professional audit services.