Mahindra & Mahindra Financial Services Limited announced that it has received an Order (DRC-07) from the office of Principal Commissioner of CGST & Central Excise, Mumbai Central imposing penalty of INR 192,193/- alleging excess availment of input tax credit in comparison with Form GSTR 2A resulted in short payment by the Company. Based on the assessment conducted by the Company and in accordance with the prevailing law, Company is of the belief that it has appropriately availed eligible input tax credit as per the prescribed conditions for a part of the demand for which the Company is in process of filing an appeal against the order with the Appellant authority and hopeful of a favorable outcome at the appellate level. The Company does not reasonably expect the said Order to have any material financial impact on its operations.

Further, Company has also received Abatement Notice ("Notice") from Deputy Labour Commissioner, Gorakhpur, U.P. imposing fine of a negligible amount, details of which are given in annexure. The Company has received an Order from the Additional Commissioner of CGST and Central Excise, Government of Maharashtra, imposing penalty of INR 192,193 for the period April 2018 to March 2022 as per details given below: GST: INR 1,921,931, Penalty: INR 192,193, Total Demand: INR 2,114,124. Name of the authority; Deputy Labour Commissioner, Gorakhpur, U.P. The Company has received abatement notice imposing fine of INR 250.

The Abatement Notice was received by the Company on 18 April 2024 at 10.30 a.m. Abatement notice alleges violation of certain provision of Uttar Pradesh Dookan aur Vanijya Adhishthan Adhiniyam, 1962 ("Act"), i.e. non- registration of the establishment under the said Act, keeping office open for official purpose on non working days, keeping office open beyond business hours etc. The Company does not reasonably expect the said Order to have any material financial impact on its operations.