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.