20.

21.

 

Fiscal Total amount allocated Actual expenditure

(in Z million) (in 2 million)
2020 13.40 8.90
2019 8.00 8.20
2018 9.40 9.20

 

We endeavour to spend the amount allocated towards CSR activities and are in the process of identifying
suitable projects for implementation of our CSR spending. During Fiscal, 2020, we could not spend the
total amount allocated as certain amounts were allocated for promotion of education and preventive
health care activities, construction of class rooms in the schools, etc. and the schools were closed due to
COVID-19 lockdown.

Further, in order to strengthen the enforcement framework in relation to the CSR spends made by the
companies, certain amendments have been proposed to be included in the Companies Act 2013, which,
once notified, will provide for, among other things, manner of dealing with the funds which remain
unspent out of the total funds mandated to be spent towards CSR activities. The proposed amendment
states that any unspent CSR spends is required to be transferred by our Company to a special account
and such amount will be required to be spent by our Company in pursuance of its CSR policy within a
period of three financial years from the date of such transfer. If our Company fails to do so, our Company
is required to transfer the unspent CSR spends to a fund specified under and within the in the time
stipulated under the Companies Act 2013.

We may be subject to imposition of notices or penalties under the Companies Act 2013 from the Ministry
of Corporates Affairs, Government of India for non-compliance with the requirement to incur prescribed
expenditure towards CSR activities in previous Fiscals, which could adversely affect our reputation and
business.

Our contingent liabilities could adversely affect our financial condition if they materialise.

As per our Restated Financial Information, as at December 31, 2020, our contingent liabilities, as per Ind
AS 37 - provisions, contingent liabilities and contingent assets, that have not been provided for are as set
out in the table below:

(in & million)

 

Particulars As of December 31,
2020

Claims against the company not acknowledged as debt:
- Excise 0.69
- VAT* 6.21
- Service tax 6.72
- GST# 4.33
- Income tax 176.79

- Stamp duty 5.62
Sales Bill Discounting *

 

* includes € 0.68 million of Joint Venture
# includes & 0.78 million of Joint Venture

If any of these contingent liabilities materialises, our results of operations and financial condition may
be adversely affected. See “Financial Statements” on page 225.

Our Company and one of our Director is involved in certain legal proceedings, and an adverse
outcome in any such proceedings may adversely affect our business, financial condition and growth
strategy.

Our Company and one of our Director is involved in certain legal proceedings, in the ordinary course of
business, which are pending at varying levels of adjudication at different fora, from time to time. All
pending litigation involving our Company, Directors, Promoters and Subsidiaries, other than criminal
proceedings, statutory or regulatory actions and taxation matters, are considered “material” if the
monetary amount of claim by or against the entity or person, in any such pending litigation exceeds
3.00% of the consolidated profit after tax of our Company, as per the Restated Financial Information, for
the latest fiscal i.e. Fiscal 2020, amounting to = 12.32 million, or any such litigation, an adverse outcome
of which would materially and adversely affect our Company’s business, prospects, operations, financial

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