Dishman Carbogen falls 10% amid report I-T dept found unaccounted money

Shares of Dishman Carbogen Amcis were locked in 10 per cent lower circuit at Rs 76 on the BSE on Wednesday amid report that the income tax (I-T) department found unaccounted cash during a search-and-survey operation last month.

According to a report by The Times of India, the state income tax (I-T) department has claimed to have found a trail of unaccounted for cash of more than Rs 160 crore. The total cash trail in the case is Rs 327 crore, it added.

However, denying the news, JR Vyas, MD, Dishman Carbogen clarified to CNBC-TV18, “There has been no communication, no letter, no one-to-one chat and suddenly a newspaper prints the news.

On December 26, the stock of the pharmaceutical company hit an all-time low of Rs 71, falling 41 per cent in five trading days, after the company said I-T Department conducted day-long 'search and survey operation' at the properties of the pharma major on December 19.

According to a PTI report, a total of 19 properties -- 12 residential and seven offices -- of the group, commonly known as Dishman Group, were searched in and around the city. The pharmaceutical major and its subsidiaries in other countries were suspected to be involved in 'routing money through accommodation entries', the report said, quoting a senior I-T department official.

During the financial year 2016-17, Dishman Pharmaceuticals and Chemicals Limited (DPCL) and Dishman Care Limited (DCL) were merged with DPCL’s subsidiary Carbogen Amcis (India) Limited. Subsequently, the name of Carbogen Amcis (India) changed to Dishman Carbogen Amcis.

The company, in its investors' presentation said, the amalgamation has been accounted under the "Purchase Method" as per AS14. Accordingly the assets and liabilities of DPCL and DCL have been recorded at fair value as on appointed date of 1st January 2015.

“The purchase consideration of Rs 4,810 crore has resulted in goodwill of Rs 1,330 crore, which represents the excess consideration payable over the net assets. This goodwill will be amortised over the period of 15 years starting from the appointed date of January 1, 2015,” it added.

Till 12:27 pm, a combined 1.85 million equity shares changed hands. There were pending sell orders for 872,328 shares on the BSE and NSE, the exchange data shows.

Dishman Carbogen gains 10% after I-T dept concludes searches

Shares of Dishman Carbogen Amcis Limited halted its losing run on Thursday to hit the 10 per cent upper circuit on the BSE at Rs 79.30, recovering 12 per cent from its early morning low after the company said the Income-Tax (I-T) department had concluded searches at its offices and manufacturing sites. The stock hit an all-time low of Rs 71 in intra-day trade today.

In a regulatory filing, the company today said the I-T department's search operation was concluded on Wednesday (December 25, 2019).

Earlier, in past three trading days, the stock of pharmaceutical company tanked 38 per cent on the I-T raid.

In a regulatory filing on December 19, the Ahmedabad-based company had said that “the officials of Income-Tax Department have visited the company’s Head Offices and Manufacturing sites in connection with search under Section 142 of the Income-Tax Act and search enquiry is continuing.”

According to a PTI report, a total of 19 properties -- 12 residential and seven offices -- of the group, commonly known as Dishman Group, were searched in and around the city. The pharmaceutical major and its subsidiaries in other countries were suspected to be involved in 'routing money through accommodation entries', the report said, quoting a senior I-T department official.

"Company has extended full co-operation to the officials during the search and provided all the information sought. The search operation was concluded on 25th December, 2019," the company said.

"We at Dishman Carbogen Amcis Ltd., follow the highest standards of Corporate Governance and Financial Discipline. Our systems and processes are benchmarked by competent auditing and accounting standards, our dealings with our partners, investors, financial institutions and our clients are transparent and of the highest Industry standards," it said.

Moreover, Motilal Oswal Asset Management Company Limited sold 2.46 million equity shares of Dishman Carbogen Amcis at an average price of Rs 73.71 per share on Tuesday via block deals. The asset management company had sold 812,573 equity shares of the company at Rs 73.62 apiece on the BSE, while sold 1.64 million equity shares on the NSE.

During the financial year 2016-17, Dishman Pharmaceuticals and Chemicals Limited (DPCL) and Dishman Care Limited (DCL) were merged with DPCL’s subsidiary Carbogen Amcis (India) Limited. Subsequently, the name of Carbogen Amcis (India) was changed to Dishman Carbogen Amcis.

At 10:23 AM today, the stock had pared some gain and was trading at Rs 77.75, up 7.84 per cent as compared to a flat Sensex. Earlier, the stock opened at Rs 71, its fresh all-time low before the company informed the exchanges about the development. A combined total of 1.1 crore shares of the company have changed hands on the NSE and BSE so far.

Dishman Carbogen plunges 20%, tanks 38% in three days on I-T dept's search

Shares of Dishman Carbogen Amcis were locked in 20 per cent lower circuit at Rs 72 on Tuesday, falling 38 per cent in the past three trading days on the BSE after the Income Tax Department conducted day-long 'search and survey operation' at the properties of the pharma major on December 19.

The stock is trading at its all-time low level since listing on September 21, 2017. The counter has seen huge trading volumes with a combined 4.3 million equity shares, representing 2.6 per cent of the company's total equity, changing hands on the NSE and BSE till 10:49 am. There were a combined pending sell orders of 1.5 million shares on both the exchanges, data shows.

In a regulatory filing on December 19, the Ahmedabad-based company said that “the officials of Income-Tax Department have visited the company’s Head Offices and Manufacturing sites in connection with search under Section 142 of the Income-Tax Act and search enquiry is continuing. As a law abiding corporate, the company is extending all co-operations in this regard.”

According to a PTI report, a total of 19 properties -- 12 residential and seven offices -- of the group, commonly known as Dishman Group, were searched in and around the city. The pharmaceutical major and its subsidiaries in other countries were suspected to be involved in 'routing money through accommodation entries', the report said, quoting a senior I-T department official.

The company however, said "this has no impact on our routine operations. After conclusion, the company will be able to update the Stock Exchanges in case of any material information event".

During the financial year 2016-17, Dishman Pharmaceuticals and Chemicals Limited (DPCL) and Dishman Care Limited (DCL) were merged with DPCL’s subsidiary Carbogen Amcis (India) Limited. Subsequently, the name of Carbogen Amcis (India) changed to Dishman Carbogen Amcis.

Dishman Carbogen tanks 11%, hits 52-week low after I-T dept's search ops

Shares of Dishman Carbogen Amcis slumped 11 per cent to hit a 52-week low of Rs 104 on the BSE on Friday after the Income Tax Department conducted day-long 'search and survey operation' at the properties of a pharma major. The stock has thus fallen below its previous low of Rs 110, touched on October 25, 2019.

Theofficials of Income-Tax Department have visited the company’s Head Offices and Manufacturing sites in connection with search under Section 142 of the Income-Tax Act on 19th December, 2019 and search enquiry is continuing. As a law abiding corporate, the company is extending all co-operations in this regard,” the Ahmedabad-based Dishman Carbogen Amcis said in a regulatory filing.

The company said "this has no impact on our routine operations. After conclusion, the company will be able to update the Stock Exchanges in case of any material information event".

According to a PTI report, the pharmaceutical major and its subsidiaries in other countries were suspected to be involved in "routing money through accommodation entries".

The Dishman group mainly manufactures bulk drugs, APIs and is also involved in 'contract research' and manufacturing. It owns 16 companies in foreign countries including Switzerland, China, UK and US.

At 10:19 am, the stock was trading 10 per cent lower at Rs 105 on the BSE. In comparison, the S&P BSE Sensex was up 0.16 per cent at 41,742 points. The trading volumes on the counter more than doubled with a combined 454,517 equity shares changing hands on the NSE and BSE so far.