Deepak fertilisers & petrochemicals Corporation Limited has secured a significant victory for its subsidiary, with tax authorities substantially reducing a demand notice by over 99%. The company informed stock exchanges about this development on 26th March, 2026.

Major Tax Demand Reduction

The tax demand against Mahadhan AgriTech Limited, a wholly-owned material subsidiary of Deepak Fertilisers, has been dramatically reduced following a rectification order. The company had filed an application under Section 161 of the CGST Act, 2017, challenging the original assessment.

Regulatory Background

The original assessment order was passed by the Assistant Commissioner of Commercial Taxes (Audit)-6.3, DGSTO-6, Bengaluru, against Mahadhan AgriTech Limited. Deepak Fertilisers had previously disclosed this matter to the exchanges on 31st December, 2025, as required under SEBI regulations.

The rectification process was initiated through a formal application filed under the CGST Act provisions. The tax authority's decision to substantially reduce the demand demonstrates the effectiveness of the company's legal challenge to the original assessment.

Timeline and Compliance

The company received official communication about the rectification order via email from tax authorities at 2:56 p.m. on 25th March, 2026. This information was promptly disclosed to BSE and NSE on 26th March, 2026, in compliance with Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Impact Assessment

This development significantly reduces the financial liability for Mahadhan AgriTech Limited, with the demand now standing at just ₹1,04,048 compared to the original ₹1,84,40,339. The substantial reduction eliminates a major contingent liability that could have impacted the subsidiary's financial position.

The rectification order provides clarity on the tax matter and removes uncertainty that may have been affecting business operations. The company has made this information available on its official website at www.dfpcl.com for stakeholder reference.

Deepak fertilisers & petrochemicals Corporation Limited has announced a significant restructuring of its liquefied natural gas supply arrangement through a novation agreement executed on March 25, 2026. The company has transferred its long-term LNG supply agreement with Equinor ASA to its wholly-owned Singapore subsidiary, Deepak Globalchem PTE. LTD (DGPL).

Agreement Structure and Parties

The novation agreement involves three key parties working together to restructure the original supply arrangement:

Supply Agreement Specifications

The novated LNG supply arrangement maintains the same commercial terms as the original agreement while transferring operational responsibility to the Singapore subsidiary. The agreement provides substantial long-term energy security for the company's operations.

Key Terms and Obligations

Under the novation arrangement, DGPL assumes comprehensive responsibility for the LNG supply agreement while maintaining corporate support from the parent company. The restructuring provides operational flexibility while ensuring contract security.

The significant terms include:

• DGPL assumes all rights and obligations under the Supply Purchase Agreement (SPA) as buyer
• Deepak Fertilisers released from obligations post novation date
• Corporate guarantee support by the parent company subject to agreed conditions
• Transaction does not fall within the ambit of Related Party Transaction

Corporate Structure Impact

The novation represents a strategic restructuring that transfers operational responsibility to the Singapore subsidiary while maintaining parent company oversight. DGPL, being a 100% wholly-owned subsidiary, ensures complete operational control remains within the corporate group.

Regulatory Compliance

The company has fulfilled all regulatory disclosure requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The agreement details have been provided in accordance with Schedule III requirements and relevant SEBI Master Circular guidelines. The event occurred at approximately 6:42 PM on March 25, 2026, with information made available on the company's website at www.dfpcl.com .