Nippon Life India Asset Management Limited — Important, 06-02-2025: General Updates

The Company has received a demand order from the Joint Commissioner of CGST & CX Commissionerate, Mumbai-Central. This pertains to allegations of ineligible Input Tax Credit claimed on brokerage paid to mutual fund distributors for the period from July 1, 2017, to October 31, 2018. The demand amounts to ₹12.66 crore, accompanied by an equal penalty and interest charges. The Company has already deposited ₹2.53 crore under protest regarding this matter.

Despite this demand, the Company reports no material impact on its financials or operations. Moving forward, it plans to file an appeal with the relevant Appellate Authorities or assess other options regarding the order, which could present potential risks and challenges. Investors should watch closely for developments in this ongoing situation.