India Pesticides has received a tax demand of ₹7,09,58,949.00 following a block assessment order for the period from April 1, 2018, to February 10, 2025. The demand was raised by the Office of the Assistant Commissioner of Income Tax, Central Circle-II, Lucknow, under Section 156 of the Income-tax Act, 1961. The company stated that it does not anticipate any material financial impact and intends to challenge the order legally.

The tax authority conducted a search and seizure operation under Section 132 of the Income-tax Act on December 12, 2024, covering the company and its group entities. This action led to the initiation of block assessment proceedings under Sections 158BC read with 143(3) of the Act. The resulting assessment order includes additions aggregating to ₹10,12,15,449, attributed to alleged unexplained investment in stock under Section 69 and profit from alleged unaccounted sales.

India Pesticides has examined the notice and, based on legal advice, maintains that the demand is not tenable in law. The company is currently evaluating its options to avail legal remedies and plans to file an appropriate appeal against the demand order. Management expressed confidence that the development will not have a material financial effect on the company.

Details of the Tax Demand

Three Non-Executive Directors resigned from India Pesticides Limited on June 6, 2026, effective from the close of business hours, completing the company's transition to a professionally managed Board structure. Mr. Anand Swarup Agarwal, Mr. Vishal Swarup Agarwal, and Mr. Vishwas Swarup Agarwal stepped down from their positions and from all Board committees to facilitate the next phase of leadership and governance. The company stated that there are no material reasons for the resignations other than the stated transition towards enhanced corporate governance.

The disclosures were made to the stock exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The resignation letters confirmed that the company has evolved into a professionally managed organization with a robust governance framework and well-established systems and processes. Following these changes, the Board of Directors is now comprised entirely of independent professionals, with no promoter representation.

The resignations were submitted via letters dated June 6, 2026. The Board placed on record its sincere appreciation for the valuable guidance, support, and contributions made by the directors during their tenure. The promoter family remains committed to the company's long-term vision and will continue to support its growth as significant shareholders.

The transition is intended to strengthen the company's corporate governance framework. The new Board includes professionals with experience across business strategy, capital markets, manufacturing operations, technology, sustainability, and international markets.