Govt finds monetary irregularities in Burnpur Cement accounts

A preliminary inquiry by the Union ministry of corporate affairs (MCA) has found serious financial irregularities in Kolkata-based Burnpur Cement. According to sources in the ministry, the inquiry was conducted by the MCA’s regional director. The regional director has recommended a further probe of the listed company, to safeguard the interests of public shareholders. The communication — recommending that Section 208 of the Companies Act be invoked — also mentions a rapid deterioration of the company’s financial heath. If the section is invoked, the company would be barred from making any interest payments without prior permission of the government. Bankers which have lent to the company are State Bank of India, Central Bank of India, West Bengal Finance Corporation and United Bank of India. The company officially became a non-performing asset in 2016. According to the latest audit report, the management is in talks with banks for a one-time settlement.