Chennai, Aug 12 (IANS): India Cements Ltd on Wednesday declared a net profit of Rs.40.1 crore for the first quarter of the current fiscal.

The company's total income for the first quarter came down by Rs.159.4 crore as compared to the corresponding quarter of the previous year.

In a regulatory filing in BSE, the company said it has posted a net profit of Rs.40.1 crore for the the quarter ended June 30, 2015 as against a net loss of Rs.2.96 crore for the quarter ended June 30, 2014.

Total Income is Rs.1,075.45 crore for the quarter ended June 30, 2015 whereas the same was at Rs.1,234.85 crore for the quarter ended June 30, 2014.

The company also said that the franchisee rights of the Indian Premier League (IPL) was transferred to Chennai Super Kings Cricket Ltd (CSKCL) at Rs.7.83 crore.

According to the company he franchise rights in IPL were transferred to CSKCL, a wholly owned subsidiary at its Net Asset Value (NAV as at March 31, 2014) as per books at Rs.7.83 crore during the financial year ended March 31, 2015.

India Cements said the Indian cricket board has approved the transfer on the condition that it provides a parent company guarantee for the compliance by CSKCL of its obligations under the franchisee agreement.

The Indian cricket board also stipulated that India Cements and CSKCL enter a tripartite Novation Agreement with BCCI - IPL. As per the agreement, CSKCL shall step into all obligations of India Cements under the franchisee agreement.

India Cements said its board on February 23, 2015 approved the sale of entire shareholding in CSKCL aggregating to 50,000 equity shares of Rs.10 each to a trust called the "India Cements Shareholder Trust", aggregating to Rs.5,00,000.

Three of the independent directors of the company are the Trustees of the Trust. The Trust has been established for the purpose of distribution of the said shares, in due course, purchased from India Cements to: (i) All non-promoter shareholders of India Cements and (ii) The shares that the promoters are entitled to shall be allotted to another Trust established for the benefit of ex-cricketers of India Cements.

Meanwhile a three member panel appointed by the Supreme Court has suspended India Cements that owns the IPL team Chennai Super Kings for a period of two years from IPL, the company said.