(i) The Company had received following demand orders from the income tax authorities for: (a) the assessment year 2020-21 in relation to the initiation of penalty proceedings u/s 271D and; (b) the assessment years 2017-18 and 2020-21 in relation 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 fi nancial statements in this regard. The litigation is currently pending with the Commissioner of Income Tax (Appeals) (“CIT(A)”). The Company has received a favourable order for the assessment year 2018-19 in relation to point (b) above. As at 31 March 2023 31 March 2022 (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 3.77 - Disputed entry tax levied under Telangana Tax on Entry of Goods into Local Areas Act, 2001 on interstate purchases @ 10.37 10.37 - Disputed amount levied under Central GST Act, 2017 on classifi cation of fl avored milk product & 35.28 35.28 - Disputed milk cess levied on installed capacity under the Haryana Murrah Buff alo and other Milch Animal Breed Act, 2001 ^ 10.31 10.31 - Disputed RPPO (Renewable power purchase obligation) charges demand levied by the APERC (Andhra pradesh Electricity Regulatory Authority) 0.60 - & litigation pending with Hon’ble High Court of Andhra Pradesh; ^ litigation pending with Supreme Court of India Based on the internal assessment and / or legal opinion, the Management is confi dent 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 2023. (c) Guarantees excluding financial guarantees 1.80 2.38 (d) Others Duty including interest liability in case of export obligation if not fulfi lled as per EPCG scheme 49.27 - Summary of the significant accounting policies and other explanatory information (All amounts in ` millions, except share data and where otherwise stated) Heritage Foods Limited | 31st Annual report 2022-23 238
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