India Cements today reported a 34 per cent drop in its standalone net profit at Rs 26.69 crore during the first quarter of the 2018-19 fiscal on poor sales. Its net profit stood at Rs 40.43 crore in the same quarter of the previous fiscal, the company said in a BSE filing.
Net income declined to Rs 1,366.17 crore during April-June quarter of 2018-19 fiscal from Rs 1,466.75 crore in the year-ago period. Expenses, however, remained lower at Rs 1,339.48 crore as against Rs 1,426.32 crore in the said period.
India Cements informed that the Enforcement Directorate Authorities had issued an order under the Prevention of Money Laundering Act, 2002 (PMLA) to attach Rs 120.34 crore worth of assets of the company. “The company, has already appealed against the said order and the matter is presently sub-judice,” it said.
Also, the Competition Commission of India (CCI) in its order dated June 20, 2012 had imposed a penalty of Rs 187.48 crore on the company and on other cement firms and Cement Manufactures’ Association (CMA), based on a complaint filed by Builders Association of India, alleging cartelisation and abuse of dominance.
India Cements along with other cement companies filed appeal before the National Company Law Appellate Tribunal (NCLAT), which directed the company to pay 10 per cent of the penalty amount (Rs 18.75 crore) before granting the interim stay which was deposited by the company, it said.
NCLAT in its order dated July 25, 2018 dismissed the appeal filed by the companies including India Cements, “Based on expert legal advice the company is in the process of challenging the NCLAT order. In view of the proposed appeal challenging the order of NCLAT, no provision has been made in the financial statement,” it added.
Source: Financial Express