SMS Pharmaceuticals Limited has informed the stock exchanges that it has received a rectification order under Section 154 of the Income Tax Act, 1961, which substantially reduces the tax demand for Assessment Year 2018-19. The order, issued by the Assistant Commissioner of Income Tax, Hyderabad, on 28th April 2026, has brought down the tax demand from Rs.7.19 crores to Rs.40.28 lakhs.

This development follows the company's earlier intimation dated 31st March 2026 regarding the receipt of a Demand Notice under Section 156 of the Income Tax Act, 1961, which had raised a demand of Rs.7.19 crores for the Assessment Year 2018-19. The original demand was based on an assessment order passed by the Assessment Unit under Section 147 read with Section 144B of the Income Tax Act, involving additions to income and disallowance of deductions under Section 35 of the Act. Additionally, penalty proceedings under Section 270A had been initiated separately for alleged under-reporting of income.

Key Details of the Rectification Order

The company has stated that it has filed an appeal before the Commissioner of Income Tax (Appeals) and also submitted an application for keeping penalty proceedings in abeyance until the disposal of appeals. The company is currently reviewing the rectification order and reevaluating the further steps to be taken against the said order.

Impact Assessment

According to the disclosure, there will not be any material impact at this stage on the financial, operational, and other activities of the company. The communication was made in compliance with Regulation 30 of the SEBI (LODR) Regulations, 2015, and the Industry Standards note issued vide SEBI Circular No. SEBI/HO/CFD/CFDPoD-2/P/CIR/2025/25 dated February 25, 2025.

The company confirmed that the information provided is true, correct, and complete to the best of its knowledge and belief. The rectification application was filed before the Income Tax Department seeking revision of the tax demand, which has now resulted in a significant reduction in the liability.

SMS Pharmaceuticals Limited has submitted its quarterly compliance certificate to stock exchanges, fulfilling regulatory requirements under SEBI (Depositories and Participants) Regulations, 2018. The pharmaceutical company filed the certificate for the quarter ended March 31, 2026, demonstrating its adherence to dematerialization procedures and regulatory compliance standards.

Regulatory Compliance Filing

The company submitted the compliance certificate to both BSE Limited and National Stock Exchange of India Limited on April 7, 2026. The filing was made under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018, which mandates quarterly compliance reporting for listed companies.

Registrar Confirmation

M/s. Aarthi Consultants Private Limited, serving as the company's Registrar and Share Transfer Agent, issued the compliance certificate on April 3, 2026. The registrar confirmed that all required actions were completed within the stipulated 15-day timeframe upon receipt of security certificates from depository participants for dematerialization purposes.

The registrar's certificate outlined specific compliance actions undertaken during the quarter:

• Securities comprised in dematerialized certificates are listed on appropriate stock exchanges
• Mutilation and cancellation of physical certificates forwarded by participants
• Substitution of depository name as registered owner in company records

Corporate Structure and Operations

SMS Pharmaceuticals Limited operates from its registered and corporate office located at Plot No. 72, H. No. 8-2-334/3 & 4, Road No. 5, Banjara Hills, Hyderabad. The company holds CIN L24239TG1987PLC008066 and maintains its pharmaceutical operations under the leadership of Company Secretary Thirumalesh Tumma, who signed the compliance filing.

Regulatory Framework

The quarterly compliance certificate represents part of the broader regulatory framework governing depositories and participants in India's securities market. SEBI regulations require listed companies to maintain transparency in their dematerialization processes and ensure proper handling of security certificates through authorized registrars and transfer agents.

Aarthi Consultants Private Limited, holding SEBI Registration Number INR000000379 as Category I Registrars & Share Transfer Agents, continues to serve as the company's compliance partner for regulatory filings and share transfer operations.