Elder Pharma tumbles after company says facing severe financial crunch

Elder Pharmaceuticals fell 5.37% to Rs 83.65 at 15:12 IST on BSE after the company said it is facing severe financial crunch and consequently the audit for the financial year ended 30 June 2015 has been delayed.

The announcement was made on Saturday, 5 September 2015.

Meanwhile, the BSE Sensex was down 302.31 points, or 1.20%, to 24,899.59.

On BSE, so far 15,000 shares were traded in the counter, compared with an average volume of 84,309 shares in the past one quarter.

The stock hit a high of Rs 88 and a low of Rs 83.25 so far during the day. The stock hit a 52-week high of Rs 215.55 on 15 September 2014. The stock hit a 52-week low of Rs 66.65 on 10 June 2015.

The stock had underperformed the market over the past one month till 4 September 2015, sliding 23.40% compared with 10.22% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 27.19% as against Sensex's 6.01% decline.

The small-cap company has an equity capital of Rs 20.54 crore. Face value per share is Rs 10.

Elder Pharmaceuticals' current financial year ended on 30 June 2015. Accordingly, it has to submit quarterly and yearly audited financial results within 60 days from the end of quarter i.e. on or before 29 August 2015.

The company, however, announced that it is facing severe financial crunch, due to which many of its senior employees, including junior and subordinate staff, have resigned from the company. This has led to severe shortage of employees to handle the work of accounts and audit for the same and therefore audit has not completed within time. Therefore, the company was unable to hold the board meeting before 29 August 2015.

The company said it is in process to complete the audit as early as possible and will submit the audited financial results in due course of time.

On consolidated basis, Elder Pharmaceuticals reported net loss of Rs 46.02 crore in Q3 March 2015, lower than net loss of Rs 73.63 crore in Q3 March 2014. Net sales declined 33.5% to Rs 151.30 crore in Q3 March 2015 over Q3 March 2014.

Elder Pharmaceuticals is an integrated pharmaceutical player, headquartered in Mumbai, with a strong presence in the domestic formulation business.

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