Sandur Manganese jumps after Karnataka HC quashes forest development tax

Sandur Manganese & Iron Ores rose 7.95% to Rs 524 at 15:05 IST on BSE after the company said that the Karnataka high court has quashed the levy of forest development tax by the government of Karnataka on mining lease holders.

The announcement was made during trading hours today, 4 December 2015.

Meanwhile, the BSE Sensex was down 213.81 points, or 0.83%, to 25,672.81.

On BSE, so far 39,000 shares were traded in the counter, compared with an average volume of 10,671 shares in the past one quarter.

The stock hit a high of Rs 575 and a low of Rs 481 so far during the day. The stock hit a 52-week high of Rs 870 on 16 July 2015. The stock hit a 52-week low of Rs 385 on 4 June 2015.

The stock had underperformed the market over the past one month till 3 December 2015, sliding 3.98% compared with 2.65% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 22.92% as against Sensex's 0.47% rise.

The small-cap company has an equity capital of Rs 8.75 crore. Face value per share is Rs 10.

Sandur Manganese & Iron Ores announced that the High Court of Karnataka has vide Order dated 3 December 2015 quashed the levy of Forest Development Tax (FDT) by the Government of Karnataka on mining lease holders.

The State Government, pursuant to notification dated 16 August 2008, had amended the provisions of Section 98(A) of the Karnataka Forest Act, 1963 for levying FDT on the sale of ores by the mining lease holders with effect from 27 August 2008.

The said matter was contested by Sandur Manganese & Iron Ores and other mining lease holders before the High Court of Karnataka, wherein the High Court of Karnataka at Bangalore has pronounced the judgment to the effect that the levy FDT shall be applicable only to State Government-owned entities and not others. The operative portion/summary of the judgement was pronounced in Open Court and a copy of the order is awaited, the company said in a statement.

Net profit of Sandur Manganese & Iron Ores declined 94.73% to Rs 0.67 crore on 35.26% decline in net sales to Rs 52.21 crore in Q2 September 2015 over Q2 September 2014.

Sandur Manganese & Iron Ores is engaged in the business of mining manganese and iron ore.

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