Court Invalidates Rs 14.79 Crore Demand Against Nephrocare Subsidiary After Finding Procedural Lapses in Tax Audit:

Nephrocare Health Services Limited, vide an intimation dated August 31, 2026, had disclosed the receipt of an assessment order via Decision No. 721.1 dated August 24, 2026, from the Tashkent City Tax Department, Uzbekistan, by its overseas wholly owned subsidiary, namely Nephrocare Health Services Central Asia LLC (NCA).

Through the aforesaid assessment order, the tax authorities had imposed an aggregate demand amounting to about Rs 14.79 crore (net additional tax of approximately Rs 11.50 crore and penalty of approximately Rs 3.29 crore, excluding late-payment interest).

The company, being aggrieved by the aforementioned order, had filed an appeal before the Tashkent Inter-District Administrative Court, challenging the same. In relation to the same, the company has disclosed that the court, by an order dated October 27, 2026 (received by the company on November 02, 2026) in Case No. 5-1001-2602/2451, has allowed the company's appeal and held the tax authorities' decision invalid.

According to the disclosure, "the Court, inter alia, found procedural irregularities, including absence of prior notice of the audit, extension of the audit period after its expiry and review of the audit materials without NCA's participation, and also held that the underlying tax calculations required verification. 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. As noted in the decision, the outcome of such reconsideration cannot worsen NCA's position compared to the invalidated decision."

The company, vide the present intimation dated November 2, 2026, passed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, has given the assurance that it will keep a close eye on the matter and will timely disclose all the further material developments in the matter.