Tilaknagar Industries drops amid volatility after clarification on IT raids

Tilaknagar Industries lost 4.07% to Rs 55.45 at 15:01 IST on BSE after the company said that due to lack of adequate supporting evidence at that relevant point of time, the management initially admitted certain inadmissible revenue expenses.

Meanwhile, the S&P BSE Sensex was down 73.24 points or 0.37% at 19,846.97.

On BSE, 2.04 lakh shares were traded in the counter as against an average daily volume of 93,461 shares in the past one quarter.

The stock was volatile. The stock lost as much as 11.15% at the day's low of Rs 51.35 in early trade. The stock lost 0.51% at the days' high of Rs 57.50 so far during the day. The stock had hit a 52-week high of Rs 86.95 on 4 January 2013. The stock had hit a 52-week low of Rs 44.85 on 5 August 2013.

The stock had underperformed the market over the past one month till 24 September 2013, sliding 1.62% compared with the Sensex's 7.56% surge. The scrip had, however, outperformed the market in past one quarter, surging 12.34% as against Sensex's 7.44% gain.

The small-cap company has equity capital of Rs 122.72 crore. Face value per share is Rs 10.

Tilaknagar Industries during trading hours today, 25 September 2013, said that there was a survey carried out by the Income Tax Authorities at the company's premises and in the course of the survey due to lack of adequate supporting evidence at that relevant point of time, the management admitted certain inadmissible revenue expenses for the period of 4 years. On further scrutiny of the details the company found that substantial revenue expenses considered inadmissible are fully supported by adequate documentary evidence. Tilaknagar Industries said the company is looking into further details in support of its position. The matter is presently pending for assessment, it added.

Tilaknagar Industries further added that the Mega Project has been cleared by the Maharashtra Government after due audit and company has already received the amount shown as income for the year FY 2013.

Tilaknagar Industries' consolidated net profit surged 58% to Rs 17.27 crore on 18.2% growth in net sales to Rs 167.03 crore in Q1 June 2013 over Q1 June 2012.

Tilaknagar Industries is one of the renowned Indian Made Foreign Liquor players (including whisky, brandy, gin, rum and vodka) with presence across India.

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