Senores Pharmaceuticals has received a significant GST demand order from the Central Goods & Service Tax Authority, as disclosed in a regulatory filing. The pharmaceutical company informed stock exchanges about receiving a demand order that could impact its financial obligations.

GST Demand Details

The Central GST Authority has issued a demand order in Form GST DRC-07 with substantial financial implications for the company:

The order was received by the company from the Office of the Deputy/Assistant Commissioner, Central Goods & Service Tax & Central Excise, Ahmedabad-North.

Nature of Alleged Violations

The GST demand stems from specific compliance issues identified by the tax authorities:

• Alleged non-reversal of excess Input Tax Credit
• Alleged non-payment of Integrated Goods and Services Tax (IGST)

These violations relate to the company's GST compliance procedures and tax credit management processes during the period under scrutiny.

Company's Response and Impact Assessment

Senores Pharmaceuticals has outlined its strategy to address the demand order. The company is preparing to file an appeal before the GST Commissioner (Appeals) based on the merits of the case. Management has assessed the potential impact on various aspects of the business:

Regulatory Compliance

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about material events that could affect their business operations or financial position.

The company's management remains confident about the appeal process and expects to successfully contest the demand based on the case's merits. This regulatory disclosure ensures transparency with shareholders and the investment community regarding potential financial obligations.

Senores Pharmaceuticals Limited has entered into a loan agreement with Apnar Pharma Private Limited for an inter-corporate loan of up to ₹15 crores.

Loan Agreement Details

The key details of the loan agreement are as follows:

Key Terms and Conditions

The loan agreement includes flexible repayment mechanisms to accommodate both parties' operational requirements. Apnar Pharma is required to repay the loan in one or more tranches upon demand by Senores Pharmaceuticals, with all outstanding amounts becoming immediately due and payable upon such demand.

The borrower has the option to pre-pay the loan amount if mutually agreed between the parties. Interest is calculated following arms-length pricing principles at the specified rate of 10% per annum on the outstanding loan amount.

Purpose and Background

The loan disbursement is intended for a specific corporate purpose, with proceeds to be utilized by Apnar Pharma for discharging and paying off liabilities. This transaction follows a recent share purchase agreement between the two companies.

As of the date of the loan agreement, both parties have confirmed they are not related to each other in any manner.

Regulatory Compliance

Senores Pharmaceuticals has fulfilled its disclosure obligations under the relevant SEBI regulations and circulars. The company has also made the disclosure available on its website at www.senorespharma.com for stakeholder access.