Peshwa Wheat Limited has Rs 4.75 crore pending tax demand

Peshwa Wheat Limited disclosed that a Rs 4.75 crore Income Tax Department demand for assessment year (AY) 2025-26 was pending to be paid. The demand, dated January 30, 2026, is about 8.5 times Peshwa Wheat’s Rs 55.64 lakh litigation-materiality threshold, although its policy treats taxation matters as material regardless of value.

What is Peshwa Wheat’s pending income-tax demand?

Peshwa Wheat disclosed a direct-tax demand of Rs 4.75 crore for AY 2025-26 in litigation filed against the company. The prospectus identifies Demand Identification No. 2025202537438488314C, dated January 30, 2026, and states that the demand was issued under section 1431a of the Income Tax Act, 1961. It describes the amount as pending to be paid by the assessee, identified in the disclosure as Peshwa Wheat.

The prospectus does not state the basis of the Rs 4.75 crore computation, whether Peshwa Wheat has paid any part of it, or whether it has sought an appeal, rectification, stay or other remedy. The filing therefore establishes the amount, AY and stated pending status, but does not establish the final liability or timing of any cash payment.

Peshwa Wheat listed one separate indirect-tax matter under the Goods and Services Tax (GST) framework. A Madhya Pradesh State Tax Office notice in Form GST ASMT-10, dated July 13, 2026, involved Rs 82,033 and was pending for reply. The notice concerned stated discrepancies in returns under the Madhya Pradesh GST 2017 framework and Rule 99(1), for the period recorded in the prospectus as April 2026 to March 2025.

Why is Peshwa Wheat’s tax demand material?

Peshwa Wheat’s board adopted its materiality policy for outstanding litigation on November 12, 2025. Under that policy, all criminal proceedings, statutory or regulatory actions, and taxation matters involving the company and specified related parties are deemed material. The Rs 4.75 crore income-tax demand was consequently disclosable as a taxation matter without depending only on a monetary test.

The policy also sets a quantitative litigation test at the lowest of three measures: 2% of turnover, 2% of net worth, or 5% of the average absolute profit or loss after tax for the preceding three annual restated standalone financial statements. The disclosed measures were Rs 4.32 crore for turnover, Rs 86.13 lakh for net worth and Rs 55.64 lakh for the profit-or-loss measure. Peshwa Wheat selected Rs 55.64 lakh as the lowest threshold.

The Rs 4.75 crore demand is about 8.5 times the selected Rs 55.64 lakh threshold. This comparison shows that the amount also exceeds the company’s general monetary benchmark, even though the tax-matter provision makes it material independently. The prospectus does not say the demand has become final or that the full disclosed amount will necessarily be paid.

How does the tax demand compare with Peshwa Wheat’s finances?

Peshwa Wheat’s Rs 4.75 crore tax demand was equal to about 11% of its Rs 43.06 crore total shareholders’ fund in the pre-issue capitalization statement as of March 31, 2026. That shareholders’ fund comprised Rs 13.73 crore of share capital and Rs 29.34 crore of reserves and surplus. The prospectus stated that corresponding post-issue figures were not determinable at that stage.

The demand was also larger than Peshwa Wheat’s Rs 3.58 crore outstanding dues to 71 other creditors as of March 31, 2026. Those amounts were trade payables rather than tax liabilities, so they are different categories of obligation. The company separately reported Rs 3.03 crore due to three material creditors, defined for disclosure as creditors exceeding 5% of trade payables.

Peshwa Wheat reported total borrowings of Rs 23.74 crore as of March 31, 2026, comprising Rs 23.09 crore in short-term borrowings and Rs 64.96 lakh in long-term borrowings including current maturities. Its pre-issue total borrowing-to-equity ratio was 0.55, with equity defined as total shareholders’ fund. The prospectus does not link the tax demand to borrowing terms, repayment capacity or a provision in the restated financial statements.

What other litigation and compliance matters did Peshwa Wheat disclose?

Peshwa Wheat reported nil criminal litigation, statutory or regulatory actions and disciplinary actions against the company in the listed litigation categories. It also reported nil other pending litigation under its materiality policy and nil listed cases filed by the company in criminal, regulatory and other material-litigation categories. These nil disclosures sit alongside the separately listed Rs 4.75 crore direct-tax demand and Rs 82,033 GST notice.

For promoters, directors, key managerial personnel and senior managerial personnel, Peshwa Wheat reported nil direct- and indirect-tax litigation. In the prospectus section covering group companies, the company also named Rahat Ali Saiyed in relation to a separate AY 2025-26 direct-tax demand of Rs 51,430 plus Rs 4,112 interest. That demand was dated January 8, 2026, and was stated to be pending to be paid.

Peshwa Wheat further stated that it, its promoter, group companies and directors had not been categorised as wilful defaulters by a bank, financial institution or consortium under Reserve Bank of India guidelines. It reported no proceedings for economic offences, no material frauds against the company in the five years preceding the prospectus year, and no Companies Act, 2013 inquiries, inspections or investigations in that five-year period. These disclosures address separate regulatory categories and do not resolve the income-tax demand.

What could change Peshwa Wheat’s disclosed tax position?

Peshwa Wheat’s disclosed position would change if the Rs 4.75 crore demand is paid, altered, cancelled or otherwise resolved. The prospectus says only that the January 30, 2026 demand remains pending to be paid; it does not disclose a challenge, instalment arrangement, subsequent order or resolution timetable. A later company disclosure or tax proceeding update would be needed to establish a changed amount or status.

The GST notice has a stated procedural status of pending for reply, while the income-tax demand is described as pending payment. The Rs 82,033 GST amount is substantially lower than the Rs 4.75 crore direct-tax amount, but both were listed as tax-liability matters filed against Peshwa Wheat. The prospectus gives no disclosed deadline for the GST response or the resolution of the income-tax demand.

Conclusion

Peshwa Wheat’s litigation disclosure places a Rs 4.75 crore AY 2025-26 direct-tax demand among the matters filed against the company. The amount is material under the November 12, 2025 policy because taxation matters are automatically material, and it is also about 8.5 times the selected Rs 55.64 lakh quantitative threshold. Its scale can be compared with Rs 43.06 crore of shareholders’ fund and Rs 23.74 crore of borrowings as of March 31, 2026.

The item to watch is any disclosed payment, challenge, revision or resolution of the January 30, 2026 demand, because the prospectus gives no underlying calculation or subsequent procedural update. Peshwa Wheat’s July 13, 2026 GST notice, involving Rs 82,033 and pending for reply, is the other disclosed tax matter requiring a later status update.