India Cements on Wednesday reported standalone net profit of Rs 40.10 crore for the first quarter ended June 30 of the current financial year.
It had reported net loss of Rs 2.96 crore in the April- June period of last fiscal.
However, the cement maker’s total standalone income stood at Rs 1,075.45 crore in the first quarter from Rs 1,234.82 crore in the same quarter of 2014-15, it said in a BSE filing.
The total expenses of the company, led by the former BCCI President N Srinivasan, were Rs 931.48 crore against Rs 1,134.66 crore in the reported quarter, it added.
Consequent to hiving off the Franchise of IPL, the figures of the current quarter are not comparable with those of previous quarters/year, India Cements said in the filing.
The company informed the Exchange that “the authorities have issued a provisional attachment order under the Prevention of Money Laundering Act, 2002 (PMLA) attaching certain assets of the company for an aggregate value of Rs 120.34 crore.”
The Adjudicating Authority specified under the PMLA has confirmed the said “Provisional Attachment Order”. The company is in consultation with legal advisers in this regard, the filing added.
The independent auditors in the review report on the provisional order of February 25, 2015 said: “In this regard, proceedings have also been initiated in respect of certain investments made by the company alleging that the company committed certain irregularities in making such investments and charges have been levelled against the company and its Managing Director in this regard.”
“The company is disputing allegations before judicial forums and as informed the company has been legally advised that it has strong grounds to defend its position, pending the outcome of the proceedings the impact, if any, is not ascertainable at this stage.”
The franchise rights in Indian Premier League (IPL) were transferred to Chennai Super Kings Cricket Ltd (CSKCL), a wholly owned subsidiary at its Net Asset Value (NAV as at March 31, 2014) as per books at Rs 7.83 crore during the fiscal ended March 31, 2015.
The firm said: “BCCI approved the said transfer subject to the condition that India Cements Ltd (ICL) shall provide a parent company guarantee for the purpose of guaranteeing performance/compliance by CSKCL of the obligations of the franchisee under the Franchise Agreement and it was further provided that ICL and CSKCL should enter into a tripartite Novation Agreement with BCCI – IPL whereby from the effective date, CSKCL shall inter alia step into all obligations of ICL under Franchise Agreement without any further act or deed.”
The company’s Board on February 23, approved sale of entire shareholding in CSKCL aggregating to 50,000 equity shares of Rs 10 each to a trust, “India Cements Shareholder Trust”, aggregating to Rs 5,00,000.
Three of the Independent Directors of the company are the Trustees of the Trust.
BCCI approved the transfer of 50,000 equity shares held by the company in CSKCL to the India Cements shareholders’ Trust subject to the condition that CSKCL make a fresh application for distribution of shares from the Trust to the ultimate beneficiaries, it said.
Certain proceedings which were in progress prior to the transfer of franchise, by the company to CSKCL had been referred to a Three member panel appointed by the Apex court. The said Three Member Panel has suspended ICL (franchisee) for a period of 2 years from the league, it added.