Ambuja Cements Ltd

The Company (ACL) was entitled to excise duty incentives. ACL has been contending that the said incentives are in the nature of capital receipts and hence not liable to income tax. However, the Income tax department had consistently denied the position and considered these incentives as a taxable receipt. Appeals were filed by ACL against the orders of the Assessing Officer which were pending before the ITAT. In November 2022, the Company received favourable orders from ITAT. Post receipt of favourable orders from ITAT, Mumbai, the Commissioner of Income Tax (Appeals) in subsequent year as well as Revenue authorities also passed the orders in favour of the company. Consequently, the Revenue Authorities have also passed necessary order giving effect to ITAT Orders and consequential refunds, where applicable, have also been granted. Accordingly. the management has assessed the risk to be remote and reduced the contingent liability for this matter to nil

The Company (ACL) was entitled to excise duty incentives. ACL has been contending that the said incentives are in the nature of capital receipts and hence not liable to income tax. However, the Income tax department had consistently denied the position and considered these incentives as a taxable receipt. Appeals were filed by ACL against the orders of the Assessing Officer which were pending before the ITAT. In November 2022, the Company received favourable orders from ITAT. However, pending final closure of the matter, the amount of Rs. 372.01 crore (December 31, 2021 - Rs. 372.01 crore) along with interest payable of Rs. 111.18 crore (December 31, 2021 - Rs. 111.18 crore) has been disclosed as contingent liabilities.

A matter relating to 75% exemption from sales tax, granted by Government of Rajasthan. However, the eligibility of exemption in excess of 25% was contested by the State Government in a similar matter of another Company. In year 2014, pursuant to the unfavourable decision of the Hon'ble Supreme Court in that similar matter, the sales tax department initiated proceedings for recovery of differential sales tax and interest thereon on the ground that the Company had given an undertaking to deposit the differential amount of sales tax, in case decision of the Hon'ble Supreme Court goes against in this matter. Against the total demand of Rs. 247.97 crore, including interest of Rs. 134.45 crore (December 31, 2021 - Rs. 247.97 crore, including interest of Rs. 134.45 crore) the Company deposited Rs. 143.52 crore, including interest of Rs. 30.00 crore (December 31, 2021 - Rs. 143.52 crore, including interest of Rs. 30.00 crore) towards sales tax under protest and filed a Special Leave Petition in the Hon'ble Supreme Court with one of the grounds that the tax exemption was availed by virtue of the order passed by the Board for Industrial & Financial Reconstruction (BIFR) during the relevant period. The Hon’ble Supreme Court has partly ruled in favour of Ambuja upholding that Ambuja was not entitled to the incentive but since the incentive was basis another court ruling, interest should not be levied on Ambuja. Accordingly, Rs 30 crores deposited by Ambuja towards interest is refundable to the company.

A matter relating to 75% exemption from sales tax, granted by Government of Rajasthan. However, the eligibility of exemption in excess of 25% was contested by the State Government in a similar matter of another Company. In year 2014, pursuant to the unfavourable decision of the Hon'ble Supreme Court in that similar matter, the sales tax department initiated proceedings for recovery of differential sales tax and interest thereon on the ground that the Company had given an undertaking to deposit the differential amount of sales tax, in case decision of the Hon'ble Supreme Court goes against in this matter. Against the total demand of Rs. 247.97 crore, including interest of Rs. 134.45 crore (December 31, 2021 - Rs. 247.97 crore, including interest of Rs. 134.45 crore) the Company deposited Rs. 143.52 crore, including interest of Rs. 30.00 crore (December 31, 2021 - Rs. 143.52 crore, including interest of Rs. 30.00 crore) towards sales tax under protest and filed a Special Leave Petition in the Hon'ble Supreme Court with one of the grounds that the tax exemption was availed by virtue of the order passed by the Board for Industrial & Financial Reconstruction (BIFR) during the relevant period. On Company's petition, the Hon'ble Supreme Court has granted an interim stay on the balance interest. Based on the advice of external legal counsel, the Company believes that, it has good grounds for a successful appeal. Accordingly, the amount has been disclosed as contingent liability.

BSE has imposed fine of Rs. 18,800 on Company for delay in redressal of investor complaint received on SEBI Scores Portal.

BSE has imposed fine of Rs. 11,800 on Company for delay in redressal of investor complaint received on SEBI Scores Portal.