Nucleus Software Exports Limited, a leader in providing software solutions for the financial services sector, has informed the stock exchanges about receiving an Income Tax Order for the Assessment Year (AY) 2022-23. The communication, made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, was filed on April 30, 2025, and pertains to an order passed by the Income Tax Department's Assessment Unit.

The Income Tax Order includes additions of INR 1.75 crores made by the Assessing Officer. In addition to the financial additions, the department has also initiated penalty proceedings against the company. However, Nucleus Software has assessed the order and believes it is not maintainable, and as a result, the company is actively pursuing appeals against the order.

Details from the Annexure - I:

As per the SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, Nucleus Software has provided the following details related to the tax order:

1. Name of the Authority:
   The order was issued by the Assessment Unit, Income Tax Department.

2. Nature and Details of Action Taken:
   The Assessing Officer has passed an order for the Assessment Year 2022-23, which includes additions of INR 1.75 crores. Furthermore, the Income Tax Department has initiated penalty proceedings against the company.

3. Date of Receipt of Order:
   The order was received on April 29, 2025.

4. Details of Alleged Violations or Contraventions:
   The alleged violations involve transfer pricing and expenses related to exempt income, as outlined in the order.

5. Impact on Financials and Operations:
   The company has clarified that there is no material impact on its financials, operations, or other activities due to the received order. The company is currently in the process of filing an appeal to challenge the order and the penalty proceedings.

The company’s management reassures stakeholders that they do not foresee any significant effect on the business or its ongoing operations. Nucleus Software’s corporate governance practices ensure transparency, and the company will keep the markets informed as the appeal progresses.

Conclusion:

This Income Tax Order does not alter the company's current financial position or disrupt its operations in the short term. Nucleus Software remains committed to defending its position through the appeals process and will provide further updates as necessary. This incident highlights the company's commitment to complying with regulatory requirements while ensuring that any matters that may affect its business are promptly addressed.

The timely disclosure of this matter reflects Nucleus Software's efforts to maintain transparency and compliance with SEBI Listing Regulations, ensuring that investors and stakeholders are kept informed about material developments. The company will continue to monitor the situation closely and keep the market updated on the progress of the appeal.

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