RED HERRING PROSPECTUS Dated August 24 ... - Globus Spirits

SECTION VI:
LEGAL AND OTHER INFORMATION
OUTSTANDING LITIGATIONS AND DEFAULTS
Litigation involving the Company
There are no outstanding litigations, defaults etc pertaining to matter likely to affect operations
and finances of the company including prosecution under any enactment in respect of Schedule
XIII of the Companies Act, 1956 (1 of 1956).
No disciplinary action / investigation has been taken by Securities and Exchange Board of India
(SEBI)/ Stock Exchanges against the Company, its directors, promoters, promoter group and
their other business ventures (irrespective of the fact whether or not they fall under the purview
of section 370(1B) of the Companies Act 1956.)
Except as stated below there are no outstanding litigations, suits, criminal or civil prosecutions,
potential disputes, labour disputes, bargains and demands, investigations, Central / State
Government claims proceedings before any judicial, quasi-judicial, arbitral or administrative
tribunals, including pending proceedings for violation of statutory regulations or, alleging
criminal or economic offences or tax liabilities or any other offences or inquires proceedings or
tax liabilities, overdue to banks/financial institutions, defaults against banks/financial
institutions, proceedings initiated for economic/civil/any other offences (including past cases
where penalties may or may not have been awarded and irrespective of whether they are
specified under paragraph (I) of Part I of Schedule XIII of the Companies Act) other than
unclaimed liabilities of the Company or its Group Companies or its promoters or its directors and
no defaults of non-payment of statutory dues against the Company including under the customs,
sales tax, income tax and service tax save and except the following.
Further there are no defaults, non-payments or overdue of statutory dues, institutional/bank
dues and dues payable to holders of debentures or fixed deposits and arrears of cumulative
preference Shares.
In terms of Clause 6.11.1.1(g), as at June 30, 2009 the Company does not owe any
sum to any Small Scale Undertaking, which is outstanding for more than 30 days.
1. LITIGATIONS FILED BY THE COMPANY:
(a).
Writ Petitions
Sl.
No.
Parties/
Case no./
Court
1. Globus Agronics Ltd.
Vs.
State of Rajasthan
& Ors
SB. Civil Writ
Petition No. 9257 of
2005
High Court of
Rajasthan at Jaipur
Particulars of the Case
The Company has filed a
Writ Petition under Article
226 of Constitution of
India in the matter of
Section 11 and 12 of the
Rajasthan Excise Act,
1950 and The Rajasthan
Excise Rules, 1956 against
the excise department for
their notification regarding
demand of fee under Rule
69B of the Excise rules on
transportation/ captive
consumption of goods
(rectified spirit used in the
manufacture of liquor)
within the factory
premises.
Amount
involved
Duty of around
Rs. 7,00,000
has been paid
quo the
transportation
fee on the
demand raised
by
the
Department.
Also, a sum of
Rs. 20,70,000
has been paid
as fee for the
Year 2004-05.
Financial or
other
impact on the
Company in
case of an
adverse
decision
The demands of
duty made by
the excise
department
have been paid
by
the
Company under
protest. In case
of an adverse
decision in the
matter, the
Company will
loose the
amount of duty
paid.
Present
Status
First listed on
29.11.05
wherein
Demand raised
by excise
department
was stayed and
on 19.12.05
stay of order
dated 29.11.05
was confirmed.
Thereafter no
effective
hearing has
taken place.
The matter
has been fixed
for hearing on
October 24,
2009
198