The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS).
14. Contingencies, guarantees and commitments
At September 30, 2016, the Group’s contingencies amounted to CHF 1,161 million (December 31, 2015: CHF 545 million). The increase is related to contingencies in connection with tax related matters and the legal case explained below.
The Competition Commission of India (“CCI”) issued in June 2012 an order imposing a penalty on Ambuja Cements Ltd. and ACC Limited. The order found those companies together with other cement producers in India to have engaged in price coordination. Following a successful appeal by the companies before the Competition Appellate Tribunal (“Compat”) to have the CCI ruling set aside and remanded back, the CCI issued a new order on August 31, 2016 confirming its initial order and imposing the same penalties amounting to CHF 336 million (INR 23,115 million) on the cement companies and their trade association. Ambuja Cement Ltd. and ACC Limited intend to appeal this new order before the Compat and will continue to vigorously defend themselves.
At September 30, 2016, the guarantees issued in the ordinary course of business amounted to CHF 720 million (December 31, 2015: CHF 814 million). The decrease is related to the settling of various guarantees related to administration and tax proceedings.
At September 30, 2016, the Group’s commitments amounted to CHF 1,711 million (December 31, 2015: CHF 2,230 million). The decrease is mainly related to various purchase commitments which were realized during the first nine months 2016.