Tech Mahindra Limited has received a significant order from the Regional Provident Fund Commissioner regarding alleged non-remittance of provident fund contributions. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Regulations, emphasizing that no material financial impact is expected from the order.

Order Details and Financial Impact

The Regional Provident Fund Commissioner-I, Pune-I has issued an order under Section 7A of the Employees Provident Funds And Miscellaneous Provisions Act, 1952. The order demands a total of ₹1,287.44 crores for alleged non-remittance of PF contributions for the period from May 2014 to March 2016.

Nature of Allegations

The Employees Provident Fund Organization (EPFO) has alleged non-remittance by Tech Mahindra of Provident Fund contributions for certain identified domestic employees and employees deputed in foreign locations in non-SSA countries. The order specifically relates to employees in countries with which India does not have Social Security Agreements.

The company is required to remit the demanded amount to the Provident Fund accounts of the identified employees across both domestic and international locations.

Company's Response and Assessment

Tech Mahindra has indicated its intention to challenge the order through the appellate process. The company's key positions include:

• An appeal will be filed against the order
• The company is hopeful of a favorable outcome at the appellate level
• No material financial impact is expected from the said order
• Appropriate disclosures have already been made as part of contingent liabilities in audited financial statements

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Tech Mahindra has also made this information available on its website at www.techmahindra.com , ensuring transparency with stakeholders and regulatory compliance.

The company maintains that based on its assessment, the order does not reasonably pose any material financial impact, suggesting confidence in its legal position for the upcoming appellate proceedings.

Tech Mahindra has announced the incorporation of a new wholly-owned step-down subsidiary focused on chess events and tournaments. The IT services major informed stock exchanges on December 15, 2025, about the formation of Chessworks Private Limited (CWPL) through its existing subsidiary Allyis India Private Limited (AIPL).

Corporate Structure and Capital Details

The Ministry of Corporate Affairs issued the Certificate of Incorporation for CWPL on December 14, 2025. Tech Mahindra received official intimation of the incorporation on December 15, 2025, at 11:11 AM IST.

Business Objectives and Operations

CWPL has been established with the primary objective of organizing and promoting chess events and leagues globally. The subsidiary will engage in managing chess-related events, leagues, and tournaments at various levels both in India and internationally. Additionally, the company plans to develop intellectual property, digital platforms, and educational programs in collaboration with federations, institutions, and sponsors to nurture talent and enhance engagement in the chess community.

Regulatory Compliance

The incorporation falls under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Tech Mahindra clarified that the initial subscription by AIPL towards CWPL's incorporation does not fall within the purview of Related Party Transactions for the parent company. However, following incorporation, CWPL has become a subsidiary and consequently a Related Party of Tech Mahindra.

Financial Investment

The promoter, promoter group, and group companies of Tech Mahindra do not have any interest in CWPL beyond the subsidiary relationship established through AIPL. As a newly incorporated entity, CWPL has not yet commenced business operations, making turnover details not applicable at this stage.