Elder Pharma hits year low on reports of I-T dept raid
Shares of Elder Pharma plunged to 52-week low of Rs 302.75 on Wednesday after reports of I-T Dept raids on premises of senior executives.
By ET Online | Updated:
NEW DELHI: Shares of Elder Pharma plunged to 52-week low of Rs 302.75 on Wednesday after reports of Income Tax Department raids on premises of senior executives of the company.
The Mumbai-based drug firm’s primary activities include manufacturing and marketing of prescription pharmaceutical products, active pharma ingredients and surgical and medical devices.
The raids spanned across 20 premises in Mumbai and 6 in Himachal Pradesh, Uttaranchal and Raigarh, income-tax sources said.
About 150 tax officials participated in the raids which are expected to continue till late Wednesday, sources added. "An I-T source said the department suspected that the books of accounts of the pharma company was not in order, and there were reasons to suspect that the company's expenditure had been inflated," said an ET report.
In 2009, Serious Fraud Investigation Office ( SFIO) probe revealed that Elder Pharma had violated the Company's Act. The probe was ordered by the Ministry of Corporate Affairs which had suspected that the company had manipulated its balance sheet and siphoned off funds from the company.
The tax department had also raided the company four years ago, based on a tipoff that bogus bills were used to exaggerate expenses.
At 12:00 p.m., shares of the company were trading 3.7% lower at Rs 310.55. The stock has hit a low of Rs 302.75 and a high of Rs 315.05.
The Mumbai-based drug firm’s primary activities include manufacturing and marketing of prescription pharmaceutical products, active pharma ingredients and surgical and medical devices.
The raids spanned across 20 premises in Mumbai and 6 in Himachal Pradesh, Uttaranchal and Raigarh, income-tax sources said.
About 150 tax officials participated in the raids which are expected to continue till late Wednesday, sources added. "An I-T source said the department suspected that the books of accounts of the pharma company was not in order, and there were reasons to suspect that the company's expenditure had been inflated," said an ET report.
In 2009, Serious Fraud Investigation Office ( SFIO) probe revealed that Elder Pharma had violated the Company's Act. The probe was ordered by the Ministry of Corporate Affairs which had suspected that the company had manipulated its balance sheet and siphoned off funds from the company.
The tax department had also raided the company four years ago, based on a tipoff that bogus bills were used to exaggerate expenses.
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At 12:00 p.m., shares of the company were trading 3.7% lower at Rs 310.55. The stock has hit a low of Rs 302.75 and a high of Rs 315.05.
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