Shriram City Union Finance Limited - Karvy

SECTION VII : LEGAL AND OTHER INFORMATIONPENDING PROCEEDINGS AND STATUTORY DEFAULTSAs on the date of this Draft Prospectus, there are no defaults in meeting statutory dues, institutional dues, andtowards holders of instrument like debentures, fixed deposits and arrears on cumulative preference shares, etc, byour Company or by public companies promoted by the same promoter and listed on stock exchange.Our Company is involved in legal proceedings which have arisen in the ordinary course of business. Save as statedhereinbelow, such proceedings however, are not material enough to adversely affect our operations, financialposition and profitability.Save as stated herein, there are no material defaults, non payments or over dues of statutory dues, institutional orbank dues or dues towards holders of debentures, bonds and fixed deposits and arrears of preference shares.Save as disclosed herein below, there are no pending proceedings pertaining to:a. matters likely to affect operation and finances of our Company including disputed tax liabilities of anynature; andb. criminal prosecution launched against our Company and the Directors for alleged offences under theenactments specified in Paragraph 1 of Part I of Schedule XIII to the Act.Proceedings Initiated Against our CompanyCivil Proceedings259 civil proceedings have been initiated in the regular course of business against our Company involving anaggregate amount of ` 1,555.03 lakhs.Tax Proceedings1. The Commissioner of Income Tax (“CIT”), has filed an appeal against our Company before the Hon’bleHigh Court of Madras (bearing no 835 of 2007 and T.C.A No.836 of 2007) against the order of the IncomeTax Appellate Tribunal (“ITAT”) dated November 16, 2009, wherein inter alia it has confirmed thedisallowance of bad debts and treating them as NPA as per the RBI norms for the assessment year 1996-97.The appeal has been raised on the grounds that the allowances made by the ITAT are erroneous. The matteris pending hearing and final disposal.2. The Commissioner of Income Tax (“CIT”) has filed an appeal against our Company before the Hon’bleHigh Court of Madras (bearing no T.C.A No. 1236 of 2007 and T.C.A No.1237/2007) against the order ofthe Income Tax Appellate Tribunal (“ITAT”) dated April 21, 2006, wherein inter alia it has confirmed thededuction of i) deposit mobilisation expenses amounting to ` 28,500,000, ii) taxing of Additional FinanceCharges on accrual basis : ` 31,015,733, and iii) method of accounting for the assessment year 1997-98.The appeal has been raised on the grounds that the allowances made by the ITAT are erroneous. The matteris pending hearing and final disposal.3. The Commissioner of Income Tax (“CIT”) has filed an appeal against our Company before the Hon’bleHigh Court of Madras (bearing no 1237 of 2007) against the order of the Income Tax Appellate Tribunal(“ITAT”) dated April 21, 2006, wherein inter alia it has confirmed the deduction of deposit mobilisationexpenses amounting to ` 28,500,000 for the assessment year 1997-98. The appeal has been raised on thegrounds that the allowances made by the ITAT are erroneous. The matter is pending hearing and finaldisposal.164