Shakti Pumps drops after getting demand notice

Shakti Pumps (India) fell 1.88% to Rs 489.95 at 14:12 IST on BSE after the company received a demand notice in continuation of search proceeding conducted as per Income Tax, Act 1961.

The announcement was made on Saturday, 6 January 2018.

Meanwhile, the S&P BSE Sensex was up 172.85 points, or 0.51% at 34,326.70. The S&P BSE Small-Cap index was up 167.16 points, or 0.85% at 19,872.08.

On the BSE, 36,000 shares were traded on the counter so far as against the average daily volumes of 42,000 shares in the past two weeks. The stock had hit a high of Rs 500 and a low of Rs 478.10 so far during the day. The stock had hit a record high of Rs 556.85 on 1 September 2017 and a 52-week low of Rs 137.60 on 10 January 2017.

The small-cap company has equity capital of Rs 18.38 crore. Face value per share is Rs 10.

Shakti Pumps (India) informed that the company has received a 'Demand Notice' in continuation of Search proceeding conducted as per Income Tax, Act 1961, demanding the payment by the company of a sum of Rs 14.75 crore. The company is contesting the demand and would file an appropriate appeal against this order under the applicable provisions of the Income Tax Act, 1961 within the stipulated period and also there seems no material impact on the business operations of the company, Shakti Pumps (India) said.

Shakti Pumps (India)'s consolidated net profit fell 35.1% to Rs 3.02 crore on 14.4% fall in total income to Rs 68.26 crore in Q2 September 2017 over Q2 September 2016.

Shakti Pumps (India) is a manufacturer and exporter of stainless steel water pumps, motors and solar pumps.

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