Protean eGov Technologies Limited has disclosed receiving significant tax demand orders from Maharashtra tax authorities, totaling over ₹22.60 crores across two separate proceedings related to its PAN services operations during 2015-16.

Tax Demand Details

The company received Order-in-Appeal from the Deputy Commissioner of Sales Tax (Appeals), Nodal Division-04, Mumbai on March 9, 2026, under two distinct Acts covering the same assessment period.

*Tax amount calculated as Total - Interest - Penalty

Background and Legal Proceedings

Both appeal orders stem from original assessment orders dated April 5, 2017, which examined the nature and scope of PAN services rendered by the company during 2015-16. The Maharashtra Sales Tax Tribunal had previously remanded the matter back to the First Appellate Authority (Deputy Commissioner of Sales Tax Appeals) through an order dated January 24, 2022.

The current orders were issued under Section 26(5) of the Maharashtra Value Added Tax Act, 2002, with the second order additionally invoking provisions of the Central Sales Tax Act, 1956.

Company's Response and Impact Assessment

Protean eGov Technologies has indicated that it considers the demands not maintainable based on its assessment. The company is currently evaluating all available options, including filing appeals against both orders.

Key Company Positions:

• The tax demands are not maintainable according to company's assessment
• All legal options including appeals are being evaluated
• No material impact expected on financials, operations, or other activities
• Company maintains confidence in its position regarding the disputed assessments

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding material developments that could potentially impact the company's operations.

Protean eGov Technologies Limited has successfully obtained regulatory approval for its composite scheme of arrangement, marking a significant corporate restructuring milestone. The company received the certified copy of the National Company Law Tribunal (NCLT) order on March 10, 2026, following the tribunal's decision on February 27, 2026.

NCLT Approval Details

The NCLT Mumbai Bench sanctioned the composite scheme of arrangement between Protean Infosec Services Limited (demerged company) and Protean eGov Technologies Limited (resulting company) under Sections 230 to 232 of the Companies Act, 2013. The tribunal's order establishes the appointed date as April 1, 2025, for the demerger transaction.

Business Demerger Structure

The scheme provides for the demerger of specific business verticals from Protean Infosec Services Limited into Protean eGov Technologies Limited on a going concern basis. Protean Infosec Services is a wholly-owned subsidiary of the resulting company, which eliminates the need for share issuance as consideration for the transfer.

The demerged undertaking encompasses:

• Governance, Risk & Compliance: Implementation of ISO27001, ISO22301, PCI-DSS, regulatory requirements, compliance, IT-related certifications, information security posture, cyber security compliance, data privacy framework implementation, and digital risk management
• Managed SOC Services: 24x7 SOC monitoring services including SIEM, SOAR, UEBA technologies
• Security Architecture Review: Comprehensive security risk assessment with vulnerability assessment, penetration testing, source code review, API security testing, red teaming, and cyber awareness (VAPT)

Strategic Rationale

The tribunal noted the strategic benefits of the demerger arrangement. The resulting company operates in developing digital public infrastructure and citizen-centric e-governance solutions for citizens, corporates, and the government. The demerger aims to:

• Consolidate operations within the resulting company
• Execute services in a cost-efficient manner for long-term value creation
• Pool resources and expertise of both entities
• Aggregate and synergize engineering capabilities across the group

Regulatory Compliance

The NCLT order addresses various compliance requirements, including income tax provisions under Section 2(19AA) of the Income Tax Act, 1961. The tribunal confirmed that meetings of equity shareholders and creditors were dispensed with, given the holding-subsidiary relationship between the companies.

Implementation Timeline

The scheme becomes effective from the appointed date of April 1, 2025, but remains operative from the effective date when the certified copy is filed with the Registrar of Companies. The companies must complete various post-approval formalities within specified timeframes, including filing with the ROC within 30 days and stamp duty adjudication within 60 days.

The demerger represents a strategic consolidation move for Protean eGov Technologies, bringing specialized cybersecurity and compliance capabilities under the listed entity's direct operations while maintaining operational continuity for all transferred business segments.