State-owned Container Corporation of India Ltd (Concor) posted a net loss of ₹332.71 crore during the September quarter from a net profit of ₹333.44 crore a year ago after it was denied a ₹861.05 crore benefit under a government scheme.
The total income of India’s biggest rail hauler of containers - a navratna company- dipped marginally during the second quarter to ₹1,800.45 crore from ₹1,897.92 core in FY 19.
Concor had shown an income of ₹1,044.03 crore between financial years FY16 and FY19 on account of benefit available under the Service Export from India Scheme (SEIS) based on legal opinions including from the additional solicitor general of India.
However, on September 26, Concor was informed by the Directorate General of Foreign Trade (DGFT) that services towards customs transit of foreign liners sealed containers by rail transport placed under customs control to/from inland container depots (ICDs) are not eligible for SEIS.
“Consequently, an estimated amount of ₹861.05 crores for ineligible SEIS benefit has been provided for in the current quarter. The Company is in the process of filing appeal in the above matter,” Concor said in a filing to the stock exchange.
The company said it has exercised the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance, 2019 and has taken 25.168 per cent rate of corporate tax in its accounts.
The write back of the SEIS benefit has resulted in Concor posting a net loss of ₹90.20 crore during the first half of FY20 from ₹590.83 crore in FY19.
The government has started the process of privatising Concor by selling 30 per cent of its stake in the company to a strategic partner along with transfer of management control. The government currently holds 54.8 per cent stake in Concor.