Biocon Limited , a leading biopharmaceutical company, has received a Show Cause Notice from the Office of the Deputy Commissioner of Commercial Taxes in Karnataka, proposing a total demand of Rs. 2.02 crore for the Financial Year 2021-22. The notice, dated September 24, 2025, outlines several tax-related issues and demands.

Breakdown of the Tax Demand

The proposed demand of Rs. 2,02,34,997 comprises:

Key Issues Highlighted in the Notice

The tax authorities have identified seven specific issues:

1. Credit note related turnover wrongly reduced from taxable turnover
2. Short declaration of outward supplies in monthly returns
3. Credit note on exports
4. Wrong claim of lower tax on merchant export benefits
5. Non-payment of tax on corporate guarantee
6. Delayed payment to suppliers beyond 180 days
7. Input tax credit mismatch between monthly returns (GSTR-3B) and input tax credit reported by suppliers (GSTR-2B)

Company's Response

Biocon has stated that there is no material impact on the company's financials, operations, or other activities due to this notice. The company is in the process of taking appropriate actions to address the Show Cause Notice.

Disclosure and Compliance

In compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Biocon has promptly disclosed this information to the stock exchanges. Mukesh Kamath, Interim Chief Financial Officer of Biocon, has confirmed that the information provided is true, correct, and complete to the best of his knowledge and belief.

Implications and Next Steps

While the tax demand is significant, Biocon maintains that the impact will be limited to the extent of the final liability as may be ascertained, along with any applicable interest and penalties. The company has not provided specific details on its strategy to contest or resolve the issues raised in the notice.

Investors and stakeholders will likely be watching closely to see how Biocon addresses these tax matters and whether there will be any long-term implications for the company's financial reporting or tax practices.

Biocon Limited, a prominent player in the Indian biopharmaceutical sector, has successfully completed the buyback of its Commercial Papers (CPs) worth Rs. 600.00 crores on September 19, 2025. This move demonstrates the company's strong financial position and commitment to meeting its debt obligations.

Buyback Details

The company confirmed that it has fully bought back and fulfilled its payment obligation for the Commercial Papers with ISIN INE376G14032. These CPs were originally issued on April 22, 2025, with the primary purpose of refinancing existing borrowings.

Regulatory Compliance

In a filing to the stock exchanges, Biocon Limited assured stakeholders of its compliance with regulatory requirements. The company stated:

• The CP proceeds were utilized for the disclosed purposes, adhering to the conditions mentioned in the application for listing.
• All other conditions of the offer document and CP issuance directions were strictly followed.
• The asset classification of fund-based facilities from banks and financial institutions continues to maintain its "Standard" status.
• There has been no material change in the company's financial status that could adversely affect the credit rating of the CPs.

Financial Stability

Mukesh Kamath, Interim Chief Financial Officer of Biocon Limited, signed off on the regulatory filing, emphasizing the company's commitment to transparency and financial prudence. The successful buyback and timely payment underscore Biocon's robust financial management and liquidity position.

Market Implications

This development is likely to be viewed positively by investors and stakeholders, as it reflects Biocon's ability to manage its short-term debt effectively. The company's proactive approach to debt management and regulatory compliance could potentially strengthen investor confidence in its financial stability and governance practices.

As Biocon Limited continues to navigate the dynamic biopharmaceutical landscape, this successful CP buyback serves as a testament to its financial strength and commitment to meeting its financial obligations.