Share price of Elder Pharmaceuticals declined as much as 6 per cent on Monday after the company on Saturday sent a letter to the BSE saying it was facing a severe financial crunch and that its audited results for the year ended June 30 were delayed. The scrip closed 5.37 per cent lower at Rs 83.65.
In a BSE filing, Elder Pharma said, “The company’s current financial year has ended on June 30, 2015. Company is presently facing severe financial crunch. In view thereof many of our senior employees including junior and subordinate staff have resigned from the company. This has led to severe shortage of employees to handle the work of accounts and audit for the same and therefore audit has not completed within time. Further, the company is in process to complete the audit as early as possible and will submit the audited financial results in due course of time.”
According to Clause 41 of Listing Agreement, the company has to submit quarterly and yearly audited financial results within 60 days from the end of quarter.
On a year-to-date basis, the share price of Elder Pharma declined 29.39 per cent at Rs 88.40 on September 4. The BSE Sensex declined 8.38 per cent during the same period.