New Delhi: India Cements on Saturday reported a 34% drop in its standalone net profit at 26.69 crore during the first quarter of the 2018-19 fiscal on poor sales. Its net profit stood at 40.43 crore in the same quarter of the previous fiscal, the company said in a BSE filing.

Net income declined to 1,366.17 crore during April-June quarter of 2018-19 fiscal from 1,466.75 crore in the year-ago period. Expenses, however, remained lower at 1,339.48 crore as against 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 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 20 June 2012 had imposed a penalty of 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% of the penalty amount (₹18.75 crore) before granting the interim stay which was deposited by the company, it said.

NCLAT in its order dated 25 July 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.

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