Kothari Fermentation declines on receiving Income Tax demand notice of Rs 6.66 crore

Kothari Fermentation & Biochem Ltd. | Consumer Food | FMCG | BSE: 507474 | NSE:

11 Apr 2016 Evaluate

Kothari Fermentation & Biochem is currently trading at Rs 21.05, down by 0.60 points or 2.77% from its previous closing of Rs. 21.65 on the BSE.

The scrip opened at Rs. 21.05 and has touched a high and low of Rs. 21.05 and Rs. 21.00 respectively. So far 1755 shares were traded on the counter.

The BSE group 'XD' stock of face value Rs. 10 has touched a 52 week high of Rs. 32.80 on 14-Jan-2016 and a 52 week low of Rs. 7.92 on 14-May-2015.

Last one week high and low of the scrip stood at Rs. 22.50 and Rs. 21.10 respectively. The current market cap of the company is Rs. 31.58 crore.

The promoters holding in the company stood at 74.85% while Institutions and Non-Institutions held 0.13% and 25.02% respectively.

Kothari Fermentation & Biochem has received a demand order from the Income Tax Department for the Assessment year 2008-09 of Rs 6.66 crore including interest of Rs 2.90 crore. The assessment was conducted by the Department during the year u/s 148 of the Income Tax Act, 1961 and the same relates to the reliefs granted by BIFR in its sanctioned scheme dated March 26, 2008.

The company would be appealing against the said order of Income Tax Department before the Commissioner of Income tax Appeals, New Delhi within prescribed time limit.

The company’s management including its tax advisors, believes that its position will likely be upheld in the appellate process whereby it is expected that the matter will be decided in favour of the company and the said demand will be dropped by the Appellate Authorities.