Mangalam Cement turns sick

Officials said the company had been claiming the State and Central Sales Tax incentives which are applicable to “Very Prestigious Units’ under the sales tax incentive scheme of the Government of Rajasthan and as per the decision of the Rajasthan Taxation Board and the same had been reversed by the Rajasthan High Court as well as the Supreme Court.

Consequent to the court order, the company had to pay Rs 25.22 crore as tax liability for the previous year which has resulted in the complete erosion of networth of the company, they said.

Board of Directors of the company in a meeting last week decided to change the financial year from March to September in view of such “extra-ordinary situation†and accordingly the current fiscal was closed on September 30, 2000.

During the six-month period, the company’s net sales stood at Rs 199.71 crore, interest charges at Rs 14.40 crore, depreciation at Rs 5.67 crore and after taking into consideration the total expenditure and extra-ordinary items of sales tax provisions of Rs 25.22 crore, net loss of the company stood at Rs 46.16 crore.