CERA Sanitaryware Ltd has experienced major concerns with its investment in Milo Tile LLP. Important points are as follows:
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Discontinuation of Procurement: CERA stopped procuring tiles from Milo owing to recurring issues with the quality of the tiles during FY 2022-23.
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Impairment Loss: The company has made an impairment loss of ₹500 lakhs on this investment, reported as an "Exceptional Item" in their account statements.
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Legal Action: CERA issued legal notices to Milo and its partners for terms of investment agreement violation.
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Cease of Partnership: CERA effectively ceased being a partner in Milo Tile LLP due to these pending issues.
Source: CERA Sanitaryware Ltd Financial Reports and News Updates