International Paper APPM Ltd has posted a net profit of ₹15.37 crore for the first quarter ended June 30 as against a net profit of ₹8.03 crore for the corresponding quarter last year.

The company clocked total income of ₹298.51 crore (₹302.55 crore).

It had closed last financial year ended March 31, 2016 with a net profit of ₹36.89 crore and income of ₹1159.80 crore.

Court case During the year 2004, the company had filed a writ petition in Andhra Pradesh High Court challenging the levy of electricity duty by the State on consumption of electricity by captive generating units.

During the quarter, the High Court dismissed the writ petition along with other petitions on the same matter by other companies in May 2016, while upholding the State’s levy.

The company, in its filings with the BSE, informed that it has not received a certified copy of the order and has been legally advised that it has a good case to approach the Supreme Court and contest the matter by filing a special leave petition.

Contingent liability Based on the management’s assessment and the legal advice, the company has treated the estimated duty amount of ₹39.94 crore as a contingent liability and no provision has been made in respect of the same.

However, the company auditor Deloitte Haskins & Sells has mentioned that it was unable to comment on the ultimate outcome of the matter and the consequential impact.

The company’s shares closed at ₹318.80, down 3.54 per cent, on the BSE on Wednesday.

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