Hindware Home Innovation Limited , a prominent player in the home appliances and building products sector, has received a significant tax demand from the Maharashtra state tax authorities. The company is now grappling with a ₹1,00,43,587 demand order issued by the Deputy Commissioner of State Tax in Bhiwandi-503, Raigad, Maharashtra.

Breaking Down the Demand

The tax demand comprises three main components:

Allegations by Tax Authorities

The state tax authority has raised several concerns regarding Hindware's tax practices:

1. Improper reduction of tax liability through credit notes for sale cancellations
2. Availment of ineligible input tax credit
3. Delayed payments to trade payables beyond the 180-day limit

Company's Response

Hindware Home Innovation Limited has taken a firm stance on the matter, stating that the demand order was issued without due consideration of their submissions. The company believes that the tax demand is not maintainable under the circumstances.

Next Steps

In light of this development, Hindware is taking a cautious approach:

1. The company is currently in consultation with its legal advisors.
2. They are evaluating the demand order in detail.
3. Based on the evaluation, Hindware will determine the appropriate course of action to address this tax issue.

This tax demand comes at a time when many companies are facing increased scrutiny from tax authorities. The outcome of this case could have implications not only for Hindware but also for other businesses operating in the state of Maharashtra and potentially across India.

As the situation unfolds, stakeholders will be keenly watching how Hindware Home Innovation Limited navigates this tax challenge and what impact it may have on the company's financial position and operations.

Hindware Home Innovation Limited (HHIL) has reached a significant milestone in its corporate restructuring process. The company announced that it has received approval from the Bombay Stock Exchange (BSE) for its composite scheme of arrangement, marking a crucial step forward in its strategic plans.

BSE Approval Details

The company disclosed that it received a letter dated August 28, 2025, from BSE Limited, conveying 'no adverse observation/no objection' regarding the proposed scheme. This approval allows Hindware Home Innovation to proceed with filing the draft scheme with the National Company Law Tribunal (NCLT).

Scheme of Arrangement

The composite scheme of arrangement involves:

1. Hindware Home Innovation Limited (referred to as the Demerged Company/Remaining Transferor Company)
2. Hindware Limited (the Transferee Company)
3. HHIL Limited (the Resulting Company)

This scheme is structured under Sections 230 to 232 of the Companies Act, 2013, and aims to reorganize the company's business structure.

Next Steps

While this BSE approval is a significant development, Hindware Home Innovation is still awaiting similar approval from the National Stock Exchange of India Limited (NSE). The company stated that it will initiate the process of filing the scheme with the NCLT in Kolkata once it receives the observation letter from NSE.

Regulatory Compliance

In compliance with regulatory requirements, Hindware Home Innovation has made the BSE approval letter available on its website at www.hindwarehomes.com . This move ensures transparency and keeps shareholders and other stakeholders informed about the progress of the scheme.

Looking Ahead

The effectiveness of the scheme remains subject to several factors, including:

• Approval from the NCLT
• Other necessary regulatory approvals

Investors and stakeholders of Hindware Home Innovation will be keenly watching for further developments, particularly the pending NSE approval and subsequent NCLT filing.

This corporate action represents a significant step for Hindware Home Innovation, potentially reshaping its corporate structure and operations.