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RDY Neutral Sentiment Score: 55/100

Dr. Reddy's Laboratories Ltd. 8-2-337, Road No. 3, Banjara Hills, Hyderabad - 500 034, Telangana, India. CIN : L85195TG1984PLC004507 Tel : +91 40 4900 2900 Fax : +91 40 4900 2999 Email : mail@drreddys.com www.drreddys.co

Key Takeaway: Dr. Reddy's Laboratories has received an appellate order from the GST Authority confirming a tax demand that includes interest and penalty. The order, dated April 12, 2024, was officially received by the company's authorized officials on April 18, 2024. Despite the confirmation of the tax demand, the company states that there is no material impact on its financials or operations. Dr. Reddy's plans to file an appeal with the appellate authority regarding this decision.

Market Sentiment Analysis

POSITIVE FACTORS

  • The company plans to appeal the tax demand order.
  • There's no material impact on the financials, operations, or other activities of the Company.

CONCERNS & RISKS

  • The company received an order confirming a tax demand, including interest and penalty.
  • A penalty of Rs. 36,51,179 was levied against the company.

Full Press Release Details

National Stock Exchange of India Ltd. (Scrip Code:
BSE Limited (Scrip Code: 500124)
New York Stock Exchange Inc. (Stock Code: RDY)
NSE IFSC Ltd. (Stock Code: DRREDDY)
under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
This is to inform that the Company has received an
order from GST Authority towards tax demand including interest and penalty. The details as required under Regulation 30 of SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015 are as hereunder:
Name of the authority : The Commissioner of CGST, (Appeals), Chandigarh
Nature and details of the action(s) taken, initiated or order(s) passed : The Company has received appellate order confirming the tax demand including interest and penalty under Section 73 / 50 of the CGST Act, 2017.
Date of receipt of direction or order, including any ad-interim or interim orders, or any other communication from the authority : Order dated April 12, 2024 was received by the authorized officials of the Company on April 18, 2024.
Details of the violation(s)/ contravention(s) committed or alleged to be committed : The appellate authority has rejected our appeal relating to availment of credit in GST return.
Impact on financial, operation or other activities of the listed entity, quantifiable in monetary terms to the extent possible : The above order levies a penalty of Rs. 36,51,179/-. Based on our evaluation, there is no material impact on the financials, operations, or other activities of the Company.
The Company will file necessary appeal with the appellate
authority in this regard.
This is for your information and records.
For Dr. Reddy's Laboratories Limited
Company Secretary, Compliance Officer & Head-CSR

Frequently Asked Questions

What tax demand has Dr. Reddy's Laboratories received?

The company received a tax demand order including interest and penalty from the GST Authority.

What is the penalty amount imposed on Dr. Reddy's?

The penalty imposed on Dr. Reddy's is Rs. 36,51,179.

When was the order received by the company?

The order was received on April 18, 2024.

Has the financial impact of the order been evaluated?

Yes, the company assessed that there is no material financial impact.

What action will Dr. Reddy's take regarding the order?

The company plans to file an appeal with the appellate authority.

Last updated: Apr 18, 2024