“(j) India Cements Limited (A-7) had invested 12,50,000 of preference shares at a premium of Rs. 110/- for a sum of Rs. 15,00,00,000/-. Thereafter India Cements Limited (A-7) had invested a sum of Rs. 80.31 crores at a premium of Rs. 1440/-. There was no explanation available in the minutes of the meeting or the statements recorded from the top management of the company with regard to the necessity to increase the premium from Rs. 110/- to Rs. 1440/- (sudden raise of almost 12 times within a small time span of 9 to 10 months), except a simple statement that it is a “bouquet of investments”. The company which is having public funds with it, never bothered to get the “due diligence on the required premium” neither from their own technical team nor from an outside agency. Thus, it is clearly construed as a quid pro quo transaction between the India Cements Limited (A-7) and Sri Y.S. Jagan Mohan Reddy (A-1). India Cements Limited (A-7) sold the shares at Rs. 671/- to M/s PARFICIM, SAS, FRANCE on 14.04.2010 on the directions of Sri Y.S. Jagan Mohan Reddy undergoing a loss of Rs. 26,85,50,489/-. This clearly shows that the investment into M/s Raghuram Cements Limited, M/s Bharathi Cement Corporation Limited by M/s India Cements Limited (A-7) was nothing but a quid-pro-quo investment. In April, 2010 M/s. Pani & Associates, Bangalore evaluated the share price of M/s Raghuram Cement Corporation Private Limited and arrived at the value of share at Rs. 221.17 Ps. That the Board Resolution of India Cements Limited (A-7) dated 14.04.2010 resolved to invest up to Rs. 125 crores by way of Inter Corporate Loans/Advance/Investment in M/s. Bharathi Cement Group whereas on the same day India Cements Limited (A-7) had sold their stake 1803973 shares of Rs. 10/- each in M/s Bharathi Cements Corporation Limited at a total price of Rs. 121.00 crores to M/s PARFICIM, SAS, FRANCE.
