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Alembic Ltd. – Company Update
In the recent audit, the Income Tax (I-T) Department has asked Alembic Group of
Companies to pay `20cr tax dues within this financial year. The I-T survey has revealed an
understatement of `102cr in profits. On verification of transactions related to Shreno Ltd.
and based on certain documents, it was found that some of the deductions claimed were
scaled down and certain expenses were re-allocated between tax-exempt unit and
domestic unit. Alembic has now agreed to pay the tax amount of `20cr within this financial
year. The figure given by the I-T Department includes `38cr of regular income of the
current year on which advance taxes are being paid regularly and `20cr of capital gain in
another group company. This is yet to accrue as no sales have taken place. Alembic has
agreed to pay `3.02cr for the past liabilities and the other group companies will pay
`5.55cr. With the clarity on the issue, we maintain our positive view on the stock, given the
company’s attractive valuations along with the de-merger trigger. We maintain Buy on the
stock with a Target Price of `92.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Alembic Ltd. – Company Update
In the recent audit, the Income Tax (I-T) Department has asked Alembic Group of
Companies to pay `20cr tax dues within this financial year. The I-T survey has revealed an
understatement of `102cr in profits. On verification of transactions related to Shreno Ltd.
and based on certain documents, it was found that some of the deductions claimed were
scaled down and certain expenses were re-allocated between tax-exempt unit and
domestic unit. Alembic has now agreed to pay the tax amount of `20cr within this financial
year. The figure given by the I-T Department includes `38cr of regular income of the
current year on which advance taxes are being paid regularly and `20cr of capital gain in
another group company. This is yet to accrue as no sales have taken place. Alembic has
agreed to pay `3.02cr for the past liabilities and the other group companies will pay
`5.55cr. With the clarity on the issue, we maintain our positive view on the stock, given the
company’s attractive valuations along with the de-merger trigger. We maintain Buy on the
stock with a Target Price of `92.
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