Deepak fertilisers & petrochemicals has informed stock exchanges about a tax demand order issued against its wholly owned material subsidiary, Mahadhan AgriTech Limited (MAL). The disclosure was made pursuant to Regulation 30 of SEBI Listing Regulations on December 31, 2025.

Tax Demand Details

The Assistant Commissioner of Commercial Taxes (Audit)-6.3, DGSTO-6, Bangalore issued the order with reference number ZD291225240989S dated December 31, 2025. The total demand amounts to ₹1,84,40,339, broken down as follows:

Nature of Dispute

The tax authorities have disallowed input tax credit claimed by Mahadhan AgriTech Limited, citing non-reflection in GSTR2A as the reason for the demand. The order was passed and received by the company via email on December 31, 2025, at 13:06.

Deepak Fertilisers maintains that there is no violation or contravention on the part of its subsidiary. The company has clarified that the department's action stems from technical issues related to tax credit reflection rather than any substantive non-compliance.

Company's Response and Impact Assessment

The parent company has assessed that there will be no material impact on the financials, operations, or other activities of the organization due to this tax demand. Mahadhan AgriTech Limited has taken a legal view that the demand is not tenable and is liable to be set aside upon appeal.

Next Steps

The company plans to challenge the tax demand order at an appropriate legal forum. This disclosure has been made available on the company's website at www.dfpcl.com , in compliance with regulatory requirements.

The development represents a routine tax dispute that the company expects to resolve through the established legal process, with management expressing confidence in their position regarding the input tax credit claims.

Deepak Fertilisers & Petrochemicals Corporation Limited has informed stock exchanges about receiving a penalty order worth ₹5.28 crores from tax authorities. The company disclosed this development under Regulation 30 of SEBI listing regulations on December 31, 2025.

Penalty Order Details

The Deputy Commissioner of State Tax, Nodal-3, Pune issued the order on December 30, 2025, which the company received via email at 17:37 hours the same day. The comprehensive demand breakdown is structured as follows:

The order pertains to FY 2021-22 and carries reference number ZD271225174770A dated December 30, 2025.

Nature of Tax Dispute

The tax department has disallowed input tax credit claimed by the company, citing two primary reasons:

• Non-reflection in GSTR2A
• Ineligible credit claims

However, Deepak Fertilisers maintains that no violation or contravention has been committed on their part. The company has categorically stated that the department's action lacks merit.

Company's Response Strategy

The company has taken a strong legal position regarding the penalty order. Key aspects of their response include:

• Legal assessment concludes the demand is not tenable
• Plans to challenge the order at appropriate legal forums
• Confidence that the order is liable to be set aside in appeal

Financial Impact Assessment

Despite the substantial penalty amount, Deepak Fertilisers has assessed the situation and concluded there will be no material impact on the company's operations. The management's impact analysis reveals:

The company's confidence in challenging the order successfully appears to underpin this assessment of minimal business disruption.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 read with sub-para 20, Para A, Part A, Schedule III of SEBI Listing Regulations, 2015. The company has also made this information available on their official website at www.dfpcl.com , ensuring complete transparency with stakeholders.

The disclosure was signed by Rabindra Purohit, VP – Legal, Compliance & Company Secretary, demonstrating the company's commitment to timely regulatory compliance despite the challenging circumstances of the penalty order.