GSK_ Annual_Report_2021-22

Notes to the Consolidated Financial Statements for the year ended March 31, 2022 237 Note 41 : Contingent liabilities ( ` in lakhs ) As at March 31, 2022 As at March 31, 2021 A. Contingent Liabilities not provided for: (i) Cheques discounted with banks 3,57.28 10,51.84 (ii) In respect of claims made against the Group not acknowledged as debts by the Group (a) Sales tax matters 27,80.59 58,40.76 (b) Excise and custom matters 8,01.21 8,75.87 (c) Service tax matters 1,29.20 1,29.20 (d) Labour matters 62,82.14 64,02.42 (e) Other legal matters (Refer Note 43) 26,87.29 25,47.72 126,80.43 157,95.97 (iii) Income-tax matters in respect of which appeals are pending Tax on matters in dispute 222,40.00 320,56.83 (iv) Gurantee given to the Custom Authorities 2,00.00 2,00.00 Notes: Future cash outflows in respect of (i) above are dependant on the return of cheques by banks. Future cash outflows in respect of (ii) above are determinable on receipt of decisions / judgements pending with various forums / authorities, hence it is not practicable for the Group to estimate the timing of cash outflow, if any. The Group does not expect any reimbursement in respect of above contingent liabilities. B. Commitments (i) Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for 14,19.28 7,45.59 (Refer Note (a) below) (ii) Uncalled liability on partly paid shares: - in Hill Properties Limited (Refer Note (b) below) 0.04 0.04 Notes: (a) Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for as at March 31, 2022 mainly comprises the miscellaneous capitalisations at site and as at March 31, 2021 includes investments in the capital assets at corporate office and sites. (b) Future cash outflow is dependent on the call to be made by Hill Properties Limited. Note 42 : Pricing matters The demand of ` 71,79.00 lakhs made by the Central Government on the Parent Company in respect of Betamethasone bulk drugs and formulations made therefrom during the period May 1981 to August 1987 has been under litigation for a period spanning over 30 years. Pursuant to the special leave petition of the Central Government in the Supreme Court of India against the Delhi High Court’s Judgment and Order dated October 19, 2001 which was held in favour of the Group, the Supreme Court has, vide its Judgement and Order dated March 31, 2011, upheld the demand. The Parent Company had accrued a liability of ` 118,68.00 lakhs in earlier years and a further provision of ` 53,11.00 lakhs was accrued in 2011. Based on legal advice, the Parent Comapny has filed an application in the Supreme Court seeking, inter alia, clarifications on some aspects of the Judgement and directions for recomputation of the demand. Simultaneously, the Parent Company without prejudice to and subject to the outcome of the application filed in the Supreme Court, has tendered as a further deposit, an amount of ` 63,60.00 lakhs, which together with the amount of ` 8,19.00 lakhs previously deposited with the Government, aggregates the demand of ` 71,79.00 lakhs made by the Government in November 1990. The Parent Company filed a review petition in the Supreme Court which was rejected in March 2012. In October 1996, the Government had claimed interest of ` 1117,66.00 lakhs for the period May 12, 1981 to October 17, 1996, for which no provision was made in earlier years. The Government had vide letter dated May 4, 2011 called upon the Parent Company to discharge the entire liability, including upto date interest calculated at 15% p.a., and had vide letter dated October 10, 2011, raised a demand on the Parent Company for the interest amount amounting to ` 247,44.00 lakhs. Without prejudice to the position