I-T survey for Rs 42cr land deal; will take action: Dishman

Written By Unknown on Senin, 14 Oktober 2013 | 12.44

Officials from the Income Tax (I-T) Department surveyed the premises of Dishman Pharma over the weekend. JR Vyas, its chairman and MD says that it quizzed the company over tax exemption for a sale of land from Dishman SEZ to Dishman Pharma for Rs 42 crore. The exemption under (section) 80 existed then, but now the I-T is demanding tax for the same, Vyas tells CNBC-TV18. "We will take necessary action", he adds.

Also read: Expect to cut debt by Rs 70-80 cr this year: Dishman Pharma

Below is the edited transcript of his interview to CNBC-TV18.

Q: What exactly happened? Did officials of the I-T department visit your company?

A: It was supposed to be a survey raid. They interviewed us for almost 24 hours.

Q: What have the findings been from that particular survey?

A: We sold a land from Dishman SEZ to Dishman and claimed it under the (section) 80 I-T (Income Tax) exemption, which was there during the transaction. It states that this exemption is not there. It was there when we bought the land and have claimed it.

Q: What was this amount involved in the sale of land?

A: Rs 42 crore.

Q: Were the IT department satisfied with your explanation?

A: No, they are not.

Q: Will you dispute the matter in court? Have they asked you to pay tax on that Rs 42 crore? Are you going on appeal?

A: We will take the necessary action.

Q: Is the probe going on now or has the survey has been completed now?

A: It happened on Friday and Saturday. Sunday was a holiday. So it is still going on.


On October 14, 2013, at 11:09 hrs Dishman Pharmaceuticals & Chemicals was quoting at Rs 58.75, down Rs 2.8, or 4.55 percent. The 52-week high of the share was Rs 124.50 and the 52-week low was Rs 37.05.

The company's trailing 12-month (TTM) EPS was at Rs 6.97 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 8.43. The latest book value of the company is Rs 89.89 per share. At current value, the price-to-book value of the company was 0.65.


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