Zaggle Prepaid Ocean Services Limited (ZAGGLE) has provided an update on ongoing tax litigation, following its previous disclosure dated February 26, 2025. The company received an order dated February 25, 2025, from the Additional Commissioner, Rangareddy, Telangana, pertaining to assessment proceedings for the financial year 2017-18 concerning overriding commission.

The order imposes penalties as follows:

• A penalty amounting to ₹2,59,32,290 (approximately ₹2.59 crore) on the Company under the IGST Act, 2017.
• A penalty of ₹2,00,000 (₹2 lakh) on a Director under the CGST Act, 2017, and SGST Act, 2017.

The Company has filed an appeal against this order before the Commissioner (Appeals) at Mumbai on June 2, 2025. Zaggle Prepaid Ocean Services Limited is hopeful of a favorable outcome at the appellate level and does not reasonably expect these orders to have any material financial impact on the Company.