Supreme Court verdict on duty liability against Paper Products

Paper Products Ltd has announced that the Company has received a judgment from Supreme Court on Central Excise matter (Civil Appeal Nos. 5317-5318/ 2002 read with Civil Appeal No. 7098/ 2005), confirming duty liability of Rs 264 lacs and penalty of Rs 55 lacs, which is pertaining to the period from Jan 1989 to March 2000 and has been continuously disclosed as contingent liability in the notes to accounts of past annual reports from 2001 to 2006.

The Company is evaluating the course of filing a review petition with the Supreme Court. However, as a matter of prudence, the Company is making a provision of the above amount of duty and penalty in the books of accounts and this would have an impact on the financial results for the quarter ended June 30, 2007.

The stock was trading at Rs.65, down by Rs.0.40 or 0.61%. The stock hit an intraday high of Rs.65.90 and low of Rs.64. The total traded quantity was 14675 compared to 2 week average of 27009.

Source : Equity Bulls

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