Small-cap company with diversified businesses receive notice for excess mining without clearance along with a penalty of Rs. 8.42 Cr.
At 1:15 p.m the shares of Birla Corporation were trading at Rs. 1,280 up by 1.76 percent from its previous day close price and the market capitalisation of the company is 9,843 Cr
As per the company’s filing, Birla corporation has received a notice from the office of collector (Mining), imposing a penalty of Rs. 8.42 Cr for the excess production of limestone from the captive mining for the period from 2000-01 to 2006-07, without obtaining environment clearance as per EIA Notification 1994.
The Company did not take Environment Clearance due to the ambiguity in the provisions of EIA Notification 1994 which was only clarified subsequently by the principles laid down in the Common Cause judgement of Hon’ble Supreme Court dated 2nd August, 2017.
However, the Company holds valid consent to operate the Mines from the State Pollution Control Board. The Company remains committed to ensure compliance with all applicable laws and the Company is reviewing the Order and evaluating the next steps in this matter.
The company’s revenue increased by 16.37 percent from 7,461.22 Cr in FY22 to 8,682.27 Cr in FY23, accompanied by decreasing profits of 398.59 Cr to 40.5 Cr.
The company has reported a return on equity (ROE) of 0.8 percent and a return on capital employed (ROCE) of 4.08 percent, this indicates that the company is struggling to make returns on its equity and capital employed.
According to the latest shareholding data available for the June 2023 quarter, the company’s Promoters hold 62.90 percent stake, the Domestic Institutional Investors hold 15.78 percent and the Foreign Institutional Investors (FII) hold 7.18 percent.
Birla corporation limited is the flagship company under M.P.Birla Group it is mostly engaged in the manufacturing of cement of various kinds, jute and is into various other businesses also.
Written by: Bharath K.S
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