the Insolvency and Bankruptcy Code, 2016 and the relevant rules thereunder alleging non-payment of
dues by the Corporates Debtor towards purchase of electric chain hoist from our Company. The matter
is currently pending. Further, our Company has also issued a notice dated November 28, 2019 to the
Corporate Debtor for recovery of additional unpaid operational debt aggregating % 6.60 million
(including interest). However, in respect of the same, our Company is yet to file an application to initiate
insolvency proceedings before the NCLT.

Outstanding actions by statutory or regulatory authorities against our Company

Our Company received a notice dated August 16, 2018 (“Notice”) from the Sub-Registrar, Class I,
Talegaon Dhamdhere, Pune, alleging deficit in payment of stamp duty amounting to 2 5.62 million
(including interest) under the provisions of the Maharashtra Stamp Act, 1958, in relation to the lease
agreement dated July 12, 2018 entered into by our Company. On November 2, 2018, in relation to the
Notice, the Joint District Registrar and Collector of Stamps, Pune, passed an adverse order against our
Company. Subsequently, our Company filed an appeal before the Deputy Inspector General of
Registration, Pune (“Appeal”) challenging the order dated November 2, 2018. The Appeal was rejected
by the Deputy Inspector General of Registration and Deputy Controller of Stamps, Pune, vide its order
dated November 6, 2019 (“Order”). Our Company has filed a writ petition dated December 18, 2019,
before the Bombay High Court for quashing and setting aside of the Order. The matter is currently
pending.

The Joint Commissioner of Labour, Tiruchirapalli (“Joint Commissioner’), issued a notice dated March
11, 2020 to our Company in relation to an application filed against our Company by V. Veeramani, an
employee of our Company, under the Employees’ Compensation Act, 1923, for a claim of compensation
of @ 2.00 million from the Company and has initiated proceedings before the Joint Commissioner. The
matter is currently pending.

Outstanding tax proceedings against our Company

The details with respect to direct tax and indirect tax proceedings involving our Company are set out
below:

 

Ss. Particulars Number of Aggregate amount involved (in ¢ million)*
No cases

1. Direct tax 17 176.79

Be Indirect tax Z 16.49

Total 24 193.28

 

* fo the extent quantifiable
Outstanding dues to creditors

As per the Materiality Policy, creditors to whom an amount exceeding 2 84.54 million, which is 3% of
the total consolidated trade payables of our Company as on the latest fiscal i.e. Fiscal 2020, as per the
Restated Financial Information, were considered ‘material’ creditors. Based on the above, there is one
material creditor of our Company as on December 31, 2020, to whom an aggregate amount of = 534.32
million was outstanding. Based on this criterion, details of outstanding dues (trade payables) owed to
micro, small and medium enterprises (as defined under Section 2 of the Micro, Small and Medium
Enterprises Development Act, 2006), material creditors and other creditors, as at December 31, 2020, by
our Company, are set out below:

 

‘Type of creditors Number of ‘Amount involved (in &
creditors million)

Micro, small and medium enterprises 207 155.06

Material creditors 1 534,32

Other creditors 1,558 2,326.77

Total 1,766 3,016.15

 

The details pertaining to net outstanding dues towards our material creditors as on December 31, 2020
(along with the names and amounts involved for each such material creditor) are available on the website
of our Company at www.craftsmanautomation.com/investors. It is clarified that such details available on
our website do not form a part of this Prospectus.

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