Summary of Key Information:

Nature of Event / Disclosure:

Regulatory disclosure of a tax assessment order and financial penalty received by an overseas wholly-owned subsidiary, Nephrocare Health Services Central Asia LLC (NCA), from the Tashkent City Tax Department, Uzbekistan.

Involved Parties / Authorities:

  • Tax Authority: Tashkent City Tax Department, Uzbekistan
  • Subsidiary: Nephrocare Health Services Central Asia LLC (NCA)
  • Payor for Services: Ministry of Health (MoH), Uzbekistan

Date / Timeline of Event:

  • Tax Audit Period: January 1, 2023, to December 31, 2025
  • Tax Audit Order Date: May 18, 2026 (Order No. 02558-xs)
  • Final Assessment Order Date: August 24, 2026 (Order No. 721.1)
  • Disclosure Date to Exchanges: August 31, 2026
  • Order Effective Date: Amounts become effective one month after the order is presented to the taxpayer.

Brief Description of Outcome / Dispute:

The Tashkent City Tax Department conducted a tax audit for the period 2023-2025. The resulting order imposes an additional tax assessment and a financial penalty on NCA. The company's preliminary assessment indicates the demand arose from a data reconciliation discrepancy between the Tax Department and the Ministry of Health regarding NCA's revenue figures. This discrepancy affects NCA's eligibility for a corporate income tax exemption available for entities whose income from dialysis services constitutes more than 90% of total revenue.

Impact of Outcome:

Financial Impact:

The aggregate financial exposure detailed in the order is UZS 18,268,141,892 (approximately ₹14.79 crore). This comprises:

  • Net additional tax assessment of UZS 14,204,055,360 (approximately ₹11.50 crore), after allowing for reductions of UZS 6,167,012,658 (approximately ₹4.99 crore) from a gross additional tax determination of UZS 20,371,068,018.
  • Financial penalty of UZS 4,064,086,532 (approximately ₹3.29 crore) imposed under Article 224 of the applicable tax law.
  • This amount excludes any applicable late-payment interest under Article 110 of the tax law.

The company is of the preliminary opinion that the order should be set aside and thus does not have a material adverse impact on its financial position.

Operational / Business / Strategic Impact:

No material operational, business, or strategic impact is anticipated by the company, subject to the outcome of its appeal. The subsidiary continues its normal operations providing dialysis services.

Other Implications:

The matter pertains to a regulatory compliance and interpretation issue in a foreign jurisdiction. The company states that reputational, legal, or market perception effects are not expected to be material if the order is successfully appealed.

Next Steps / Required Actions:

  • NCA is taking steps to reconcile the underlying revenue data with the tax department.
  • The company is evaluating the legal remedies available under applicable Uzbek laws, including the right to appeal the order.
  • As of the disclosure date (August 31, 2026), no appeal or legal proceedings have been initiated.
  • The company has committed to informing the stock exchanges of any material developments in accordance with SEBI Listing Regulations.