Heritage Foods Limited | 30th Annual Report 2021-22

30 th Annual Report 2021-22 Heritage Foods Limited 178 44. Contingent liabilities and commitments As at 31 March 2022 31 March 2021 (a) Commitments (i) Estimated amount of contracts remaining to be executed on capital account and not provided for 60.45 52.06 (b) Contingent liabilities, not provided for In respect of income tax matters [refer (i) below] 5.21 - In respect of sales tax / value added tax matters [refer (ii) below] 18.67 18.67 In respect of other matters [refer (iii) below] 59.73 20.65 (i) The Company had received demand order from the income tax authorities for the assessment years 2017-18 and 2018-19 in rela- tion to the inadmissibility of expenditure claimed under Section 80G of the Income Tax Act, 1961. The management, on the basis of its internal assessment of the facts of the case, the underlying nature of transactions, is of the view that the probability of the case being settled against the Company is remote and accordingly do not foresee any adjustment to these standalone financial state- ments in this regard. The litigation is currently pending with the Commissioner of Income Tax (Appeals) (“CIT(A)”). (ii) - Disputed purchase tax levied under Andhra Pradesh Value Added Tax Act, 2005 on purchase of milk @ 9.51 9.51 - Disputed Input tax credit disallowed under Andhra Pradesh Value Added Tax Act, 2005 @ 4.69 4.69 - Disputed Input tax credit disallowed under The Central Sales Tax, 1956 # 4.47 4.47 @ litigation pending with Hon’ble High Court of Telangana; # litigation pending with Joint Commissioner of commerical Taxes (Appeals), Bangalore. (iii) - Disputed entry tax levied under Andhra Pradesh Tax on Entry of Goods into Local Areas Act, 2001 on interstate purchases & 3.77 - - Disputed entry tax levied under Telangana Tax on Entry of Goods into Local Areas Act, 2001 on interstate purchases @ 10.37 10.34 - Disputed amount levied under Central GST Act, 2017 on classification of flavored milk product & 35.28 - - Disputed milk cess levied on installed capacity under the Haryana Murrah Buffalo and other Milch Animal Breed Act, 2001 ^ 10.31 10.31 & litigation pending with Hon’ble High Court of Andhra Pradesh; ^ litigation pend- ing with Supreme Court of India Based on the internal assessment and / or legal opinion, the Management is confident that, for the aforesaid mentioned contingent liabilities under paragraph (ii) and (iii) above, no further provision is required to be made as at 31 March 2022. (c) Guarantees excluding financial guarantees 2.38 2.91 45. Leases The movement in lease liabilities is as follows: Particulars For the year ended 31 March 2022 31 March 2021 Balance at the beginning of the year 44.87 65.49 Additions during the year 65.40 17.01 Finance cost accrued during the year 6.77 5.86 Payment of lease liabilities (41.68) (43.49) Lease liabilities at the end of the year 75.36 44.87 Current lease liabilities 28.23 22.51 Non-current lease liabilities 47.13 22.36 Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated)