Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure under Regulation 30 of SEBI Listing Requirements regarding outcome of tax litigation involving overseas wholly-owned subsidiary.

Involved Parties / Authorities:

  • Entity Involved: Nephrocare Health Services Central Asia LLC (NCA), overseas wholly-owned subsidiary
  • Opposing Party: Tashkent City Tax Department, Uzbekistan
  • Adjudicating Authority: Tashkent Inter-District Administrative Court, Uzbekistan

Date / Timeline of Event:

  • Previous Disclosure Date: August 31, 2026 (Ref. NEPHROPLUS/SE/81)
  • Court Decision Date: October 27, 2026
  • Decision Received Date: November 2, 2026
  • Current Disclosure Date: November 2, 2026
  • Original Tax Demand Date: August 24, 2026 (Decision No. 721.1)
  • Tax Audit Period: January 1, 2023 to December 31, 2025

Brief Description of Outcome / Dispute:

NCA challenged Tax Department Decision No. 721.1 which raised an aggregate demand of approximately ₹14.79 crore (net additional tax of approximately ₹11.50 crore and penalty of approximately ₹3.29 crore, excluding late-payment interest) following a tax audit for the period January 1, 2023 to December 31, 2025. The Court allowed NCA's application and declared the Tax Department's decision invalid.

Impact of Outcome:

Financial Impact:

The assessment and penalty aggregating approximately ₹14.79 crore have been declared invalid and are no longer operative. Any financial implication will depend on the outcome of the Tax Department's reconsideration, which cannot worsen NCA's position compared to the invalidated decision.

Operational / Business / Strategic Impact:

The court found procedural irregularities including absence of prior notice of the audit, extension of the audit period after its expiry, and review of audit materials without NCA's participation. The court also held that the underlying tax calculations required verification.

Next Steps / Required Actions:

The Court has directed the Tax Department to reconsider the audit materials taking into account the documents submitted by NCA and the Court's legal position. This reconsideration must be completed within 30 days of the Court decision entering into force. The decision is appealable before the Tashkent City Administrative Court within one month of its issuance. The Company will continue to monitor the matter.