The share of Shree Cement Ltd cracked 2.76 per cent on Thursday, a day after the company disclosed that it had received an order of inspection by the ministry of corporate affairs (MCA) under section 206 (5) of the Companies Act 2013.
The stock was down by Rs 663.3 apiece to close at Rs 23,365 on a bullish National Stock Exchange even as the company management dubbed the development as “routine”.
The MCA order came after the income tax surveys took place on the premises of Shree Cement last month.
“This is to inform that the company has today (Wednesday) received a letter dated 19.7.2023 from the office of the regional director (NWR), ministry of corporate affairs (MCA), informing order of inspection under section 206(5) of the Companies Act, 2013,” Shree Cement informed the bourses on Wednesday night.
Section 206 (5) falls under Chapter XIV of the Companies Act, 2013, which deals with inspection, inquiry and investigation.
Section 206, in particular, stipulates the power to call for information, inspect books and conduct inquiries.
The particular clause reads as follows: “Without prejudice to the foregoing provisions of this section, the central government may, if it is satisfied that the circumstances so warrant, direct inspection of books and papers of a company by an inspector appointed by it for the purpose.”
An official said Shree Cement would fully comply with the directions. “It is a routine matter,” the official added.
NCD issue
On Thursday, Shree Cement informed the bourses that the board would consider raising funds by issuance of non-convertible debentures aggregating up to Rs 1,000 crore in the meeting on July 26.
Sources said the company would use the fund to finance in part the massive expansion programme undertaken by it.
The Telegraph had earlier reported it would launch four new projects at an investment of Rs 5,500-6,000 crore in order to reach 80 MT capacity by 2030.
