DETAILS OF STATUTORY CREDITORS AND CONTINGENT LIABILITIES

Transcription

1 DETAILS OF STATUTORY CREDITORS AND CONTINGENT LIABILITIES Statutory Creditors Information Corporate Debtor Information Amount specified as Amounts specified as Interest amount for which no Submission Contingent received from liabilities in liabilities in Liabilities Amount S. No. Particulars Claims received provision has various the Books of the Books of specified in verified Remarks as per IBC, 2016 been made yet Authorities not Accounts but Account but the Notes to (INR Cr.) (INR Cr.) and the same is as per IBC, not subject to subject to Accounts not subject to 2016 (INR Cr.) dispute (INR dispute (INR Cr.) dispute (INR Cr.) (INR Cr.) Cr.) 1 2 Commercial Taxes, Special Circle, Pali (Raj) a b c Competition Commission of India (CCI) Statutory Creditor has raised the demand related to VAT, CST, Entry Tax and Electricity Duty. In case of VAT and CST related to deferred tax of INR Crores, Corporate Debtor is in the process of challenging the order before the DB of the Hon'ble High Court. There is also interest demand on EFCI matter of INR Crores. Also the case of interest incentive matter of INR Crores is pending before Hon'ble High Court, Jodhpur. Entry tax of INR Crores is pending before Hon'ble High Court, Jodhpur. Routine Tax of INR Crores is payable. Interest Incentive Matter of INR Crores (interest on delay payment of Principal Tax of INR Crores) for which no provision has been made in the books till date. The Competition Commission of India (CCI) vide its order dated June 20, 2012 had imposed a penalty of INR Crores on the Company alleging contravention of certain provisions of the Competition Act, The Company had filed an Appeal before the Competition Appellate Tribunal (COMPAT) against the aforesaid Order of CCI. The COMPAT,vide its order dated 11/12/2015, has set aside the order passed by the CCI and directed the CCI to hear the matter afresh. The CCI has again passed the same order on September 13, 2016 as passed earlier and now the matter is under consideration of COMPAT. 3 Central Goods and Service Tax Division-E, Pali (For Central Excise and service Tax dues) The claim is not subject to any dispute and the Department has claimed for routine excise duty and service tax including interest and penalty.

2 4 Income Tax Department Income Tax Department has claimed for AY and amounting to INR Crores (Interest u/s 220(2) amounting to INR 7.80 Crores). Claims against the Company not acknowledged as debts in respect of certain Income Tax matters is INR Crores (including INR 0.49 lacs related to Jaipur TDS matter for The claim is subject to dispute before CIT (A). 5 Mining Engineers, Sirohi (for District Mineral Foundation Trust and National Mineral Exploration Trust) d Amount of INR Crores raised by Mining Engineer, Sirohi has been already settled and is not pending on the Corporate Debtor as on date. It seems that the said matter may be pending internally with AG office for their concurrence to withdraw the same. 6 Commercial Taxes Department, Anti Evasion, Circle-1, Abu Road, (Raj) Amount INR Crores has been received from the Statutory Creditor as submission but no Form B, affidavit and supporting documents have been received and the same is not traceable in the Corporate Debtor's Books of Accounts (related to Show Cause Notices). 7 Central Goods and Service Tax Division-G, Sikar (For Central Excise and service Tax dues) e Statutory Creditor has claimed dues amounting to INR 7.29 Crores related to Excise Duty (INR 2.87 Crores) and Service Tax (INR 4.42 Crores) for which demand notices have been issued and the cases are pending before CESTAT, New Delhi. Amount (Tax and Interest) of INR Crores has been claimed through Show Cause Notices for which no demand notice has been issued yet. 8 Commercial Tax, Unit VI, Ahmedabad (Gujarat) f Dues not subject to dispute till 25th July 2017 is INR Crores. Further the cases of assessment of AY and are under dispute before Adjudicating Authorities amounting to INR Crore. Deposits made under protest is INR Crore. 9 Sub Registrar, Pindwara (Raj) Under the Rajasthan Finance Act, 2006, the Assessing Authority has assessed land tax on leasehold land for the year to and raised demand notices for INR Crores. The matter was challenged by the Company in Hon'ble Rajasthan High Court, Jaipur. Hon'ble High Court has directed the authority to reassess the same. Payment made under protest is INR 2.34 Crores.

3 10 Department of Excise & Taxation, Government of Haryana Difference between amount claimed and amount verified amounting to INR 0.25 Crore is due to interest difference (amounting to INR 0.09 Crore) and pending forms not received from customers yet (amounting to INR 0.16 Crore). 11 Commercial Taxes, Anti Evasion, Pali (Raj) The department has submitted demand notices in respect of the claim related to VAT, CST and Entry Tax. The entire claim is subject to dispute before Hon'ble High Court, Jodhpur. Total payment made under protest is INR 2.34 Crores Commercial Taxes Department, Jodhpur (Raj) g Commercial Taxes, Anti Evasion, Jaipur (Raj) 2.93 h CGST, Pali (Raj) i Provident Fund It seems that dues of INR 6.44 Crores claimed by the Commercial Tax Department, Jodhpur has already been claimed by the Commercial Tax Department, Special Circle, Pali. No Form B, affidavit and supporting documents have been received yet. The Company has submitted demand notices in respect of the claim related to Input Tax Credit on Mining Equipment, Explosive and sale of non-vatable HSD and the same is pending before Hon'ble High Court, Jodhpur and Hon'ble Rajasthan tax Board, Ajmer. The dues amounting to INR Crores are subject to dispute and pending before various Adjudicating Authorities. Payment made under protest is INR Crores. Amount shown in the Books of Accounts related to Provident fund is INR 2.24 Crores and provision for interest/damages is yet to be made (till 25th July, 2017) of INR Crores. The case is not subject to any dispute. Additional amount of INR Crores received as submission has not been considered as no information is available with the Corporate Debtor. We have not verified the amount since Form B and affidavit have not been received yet. 16 North Western Railway, Ajmer, (Raj) The difference is due to undercharges amounting to INR 0.17 Crore (due to Kms difference and the same is subject to dispute) and waived demurrage charges amounting to INR 0.11 Crore (but the same is not subject to any dispute so we have verified the same).

4 17 Employee State Insurance Corporation Mineral Right Cess TDS Custom Duty, Kandla Custom Duty, Jamnagar Submission has been received from the authority for interest of INR 1813/-. Challenging Rajasthan Environment and Health Cess Rules, 2008 (The State Govt. does not have the powers to impose any kind of tax or royalty on mineral bearing land except specific approval of parliament in this regard). The case is pending before Hon'ble Rajasthan High Court, Jodhpur. Amount shown in the Books of Accounts related to TDS is INR 1.56 Crores and provision for interest is yet to be made (till 25th July, 2017) of INR Crore. The Case is not subject to any dispute. Demands confirmed by Commissioner of Customs, Kandla for differential Custom duty (INR Crores) and imposed penalty (INR 3 Crores) in relation to classification of SA coal. The same is pending before Larger Bench of CESTAT, Chennai. In 2nd case, the Company has imported fuel without payment of Customs Duty amounting to INR Crore by utilizing transferable DEPB Licenses purchased from the market in the ordinary course of business (pending with Commissioner of Customs, Kandla). Demands raised in relation to the import of coal made in earlier years. Department has filed an appeal before Hon'ble High Court of Gujarat and CESTAT, Ahmedabad in different cases. 22 Rajasthan Electricity Regulatory Commission (RERC) During the current year, the Company has made provision in the books towards compliance / fulfilment of Renewable Power Obligation (RPO) as per the guidelines of Rajasthan Electricity Regulatory Commission (RERC) and orders passed by Electricity Regulatory Commissions. We have not verified the amount because claim for the same has not been received yet.

5 23 Sales Tax Department AVATO, Department of Trade & Taxes, Delhi Commercial Tax Department, Uttar Pradesh Demands raised by Sales Tax Department contending that the Company has wrongly adjusted sales tax on account of trade discounts. The Company has filed a writ petition before Hon'ble High Court, Jodhpur. AVATO, Department of Trade & Taxes, has imposed penalty on account of delay in deposit of Delhi VAT (pending before Hon,ble Appellate Authority). Demand raised by UP Commercial Tax Department on account of entry tax is INR 5.55 Crores and penalty on late deposit of VAT is INR Crore. Cases are pending before various Adjudicating Authorities. Payment made under protest is INR Crores. 26 Commercial Tax Department, Ghaziabad Statutory Creditor has raised demand and imposed penalty amounting to INR Crore and INR Crore respectively. The cases are pending before various Adjudicating Authorities. Payment made under protest is INR Crore. 27 UP Commercial Taxes, Zone-1, Ghaziabad Demand raised of INR 1.58 Crores on account of disallowing the shortage claim of cement. The Company has filed an Appeal before Additional Commissioner, Commercial Taxes, Ghaziabad. Payment made under protest is INR Crore. 28 Commercial Taxes, Grade II (Appeal-1), Ghaziabad Demand confirmed on account of disallowing the shortage claim of cement. Company has filed an appeal before Commercial Tax Tribunal, UP Commercial Taxes, Ghaziabad. Total

6 a b c d e f g h i The listing of claims received from creditors and verified by the Resolution Professional is subject to revisions and may be updated periodically based on additional information in accordance with the IBC (Insolvency and Bankruptcy Code) 2016 and its regulations. Specific Notes Amount includes the following : i) Demand related to Difference Tax of INR 5.51 Crores (pending statutory forms) has not been considered as contingent liability in the Notes to Accounts as Difference Tax Demand related to pending statutory forms amounting to INR 0.54 Crore have already been submitted to the Statutory Creditor and due date for submitting remaining pending statutory forms (amounting to INR 4.97 Crores) is 31st, March, So liability does not arise but the same has been claimed by the Statutory Creditor. ii) Demand related to Interest on excess deferment of INR 0.44 Crore has been considered twice by the Authority as informed by the Corporate Debtor. Books of Accounts include interest (on routine tax) of INR 2.44 Crores from 1st October, 2016 to 31st March, 2017 but not claimed by the Statutory Creditor. Amount includes the following : i) Amount of INR Crores is related to Deferred tax (i.e. Period Extension for 2 years and related to VAT/CST). This matter has been decided against the company by the Single Bench of the Hon'ble High Court. The company is in the process of challenging the order before the DB of the Hon'ble High Court. Hence, the amount of INR Crores has not been verified yet. ii) Amount includes INR 1.89 Crores related to Entry Tax (from 1st April, 2015 to 30th June, 2017) but not claimed by the Statutory Creditor. Amount includes the following : i) Tax and interest of INR Crores which is subject to stay and related to DMF and NMET. ii) Tax and interest of INR 9.79 Crores related to DMF (for the period from 12th Jan, 2015 to 16th Sept, 2015) which is not a tax liability as per the order of the Hon'ble Supreme Court but claimed by the authority. iii) Amount of INR Crores raised by Mining Engineer, Sirohi has been already settled and is not pending on the Corporate Debtor as on date. It seems that the said matter may be pending internally with AG office for their concurrence to withdraw the same. Statutory Creditor has claimed tax and interest of INR Crores through Show Cause Notices only. However, no demand notice has been issued yet. Amount also includes interest of INR 2.13 Crores (from the date of demand order till 25th July, 2017) claimed by Statutory Creditor. However no demand notice has been issued for the same and hence no provision has been made in the books. Amount includes interest of INR 0.06 Crore (from the date of demand order till 27th November, 2017) claimed by Statutory Creditor. However no demand notice has been issued for the same and hence no provision has been made in the Company's Books of Accounts. It seems that dues of INR 6.44 Crores have already been claimed by the Commercial Tax Department, Special Circle, Pali (Raj). We have asked the Commercial Tax Department, Jodhpur to confirm the submission but the same has not been confirmed yet. Amount includes the following : i) Interest amount of INR 0.61 Crore (from the date of demand order till 25th July, 2017) has been claimed by the Statutory Creditor. However no demand notice has been issued for the same and hence no provision has been made in the Company's Books of Accounts. ii) Deposit made under protest amounting to INR 0.14 Crore has been claimed by the Statutory Creditor. iii) Output tax related to HSD sale amounting to INR 0.71 Crore has not been claimed by the Statutory Creditor but included in the Contingent liability of INR 2.89 Crores as shown in the Notes of Accounts of the Corporate Debtor. Amount includes INR Crores through Show Cause Notices only for which no demand notice has been issued yet. General Notes Potential Interest Exposure - The aforementioned claims and submissions do not include any interest amounts that may be payable by the Corporate Debtor to the Statutory Creditors (to be calculated from the due date) if the liability is crystallized in favour of the Statutory Creditors. Contingent liabilities are disputed and are pending decisions with various Adjudicating Authorities. However, Corporate Debtor is of the view that the disputed amounts may not be payable as the same has been contested by the Corporate Debtor before various Adjudicating Authorities. The aforementioned claims and submissions have been shared with the company officials for their review and inputs are still awaiting related to the best estimate of the contingent liabilities from the Corporate Debtor. Submissions amounting to INR Crores have been received from various authorities in the form of mails, notices and letters. No Form B and affidavit have been received yet for the same. We have also intimated the authorities through mail to submit their claims as per Insolvency and Bankruptcy Code, The aforementioned claims and submissions do not include any amount related to Show Cause Notice {except amount of INR Crores and INR Crores as mentioned in point e) and point i) above}. E & OE