Sri Lanka Tokyo Cement contests customs under-invoicing charge:

Cement Woes
15 Dec, 2008 15:03:09
Sri Lanka Tokyo Cement contests customs under-invoicing charge:
Dec 15, 2008 (LBO) - Sri Lankan cement manufacturer Tokyo Cement said it would seek to extend an interim order given by court in a Customs inquiry seeking to fine the firm 2.5 billion rupees on an under-invoicing allegation.
The company said in a stock exchange filing that the interim order given by the Appeal Court ends Monday, December 15.
Company officials said the firm would seek to extend the interim order.

The company statement said it had challenged the customs inquiry saying that it was illegal and that the company had not been given a fair hearing.

Brokers Asia Securities said in a report the Customs department has lodged a court case against Tokyo Cement with respect to an under invoicing of imports.

The customs duties lost due to the under invoicing is estimated to be around 871 million rupees.
"However, market sources indicate that a further penalty charge of around 1.5 billion rupees could be levied upon the company if found guilty which would collectively sum up to about 2.5 billion," the brokers said.
end:
Tokyp Cement shares has dropped by 50% from it's high 3 years ago, despite the severe shortage of cement in the country.
They have eyed the Kankesanthurai Cement factory for the past 5 years.
However, the Tamil leadership are not in favor of this Japanese owned joint venture with the Gnanam family. UNP gave the company a few sweat hear deals via cabinet approval in 2003.
Thereafter the shares rose from 50 rupees to 290 within a very short period.