Ganesh Benzoplast Limited has received an order from office of the PR commissioner of Customs whereby the department of Customs, Nhava Sheva has imposed a penalty of Rs. 7,29,50,000/- under Custom Act, 1962, for certain procedural defects / deficiencies.

The financial impact, if any, will be to the extent of and as disclosed in point ii. There will be no impact on operations or other activities of the Company.

Ganesh Benzoplast is in the process of taking appropriate steps to contest the said Order on merits. Based on the Company's assessment, an appeal will be filed with Customs, Excise and Service Tax Appellate Tribunal (CESTAT) and the Company is hopeful of a favorable outcome at the appellate level.