The agro-chemical sector is facing substantial cost pressures as raw material prices have surged by 15-20% due to the ongoing conflict in West Asia. This significant increase is creating challenges for industry players as they navigate supply chain disruptions and elevated input costs.

Impact on Industry Players

Dhanuka Agritech and other companies in the agro-chemical sector are experiencing the effects of these rising costs. The conflict in West Asia has disrupted supply chains and created volatility in commodity markets, directly impacting the cost structure of agro-chemical manufacturers.

Cost Pressure Details

The 15-20% increase in raw material costs represents a significant challenge for the industry, potentially affecting profit margins and operational efficiency across the sector.

Dhanuka agritech Limited has received an assessment order from the Assistant Commissioner of Income Tax, New Delhi, demanding Rs. 83.71 lakhs for Assessment Year 2018-19. The company disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Assessment Order Details

The income tax authority issued the assessment order under section 147 of the Income Tax Act, 1961. The company received the communication on March 09, 2026.

Nature of Dispute

The tax demand stems from the disallowance of claims made under section 80G of the Income Tax Act, 1961. According to the assessment order, the amount claimed under this section pertains to Corporate Social Responsibility (CSR) activities, which the tax authority has disallowed.

Company's Response

Dhanuka Agritech has contested the assessment order and taken legal recourse. The company's response includes:

• Filed a writ petition against the income tax proceeding
• Assessed the demand as not maintainable based on company's evaluation
• Expects no material impact on financial, operational, or other business activities

Financial Impact Assessment

The company has stated that based on its assessment, the demand is not maintainable. Management does not envisage any relevant impact on the company's financials, operations, or other activities due to this tax proceeding.

The disclosure was made by Company Secretary and Compliance Officer Jitin Sadana as part of the company's regulatory compliance obligations under SEBI listing regulations.