Pune-based Vascon Engineers Ltd on Monday said a case of fund "misappropriation" has been detected in the company and the police is investigating the matter.
"Recently, our internal audit revealed that there has been some misappropriation of funds...We have immediately alerted the police who are investigating the matter," the company said in a filing to the BSE.
While the company did not share further details, it said: "We will be in a position to share specific details only once the investigation is complete." The shares of the company jumped 20 per cent and closed trading for the day at Rs 50.40 apiece on the BSE.
The company, which is into various sectors such as engineering procurement construction (EPC), real estate and hospitality among others, had posted a total revenue of Rs 1075.95 crore with a profit after tax of Rs 64 crore in the fiscal ended March 31, 2011.
As per its website, as on 2009 Vascon Engineers has executed 181 EPC contracts with a total of Rs 890 crore and has an order book of Rs 4,000 crore comprising 70 projects.
It also has 51 ongoing and forthcoming real estate development projects with saleable area of 55.36 million square feet. The company was founded in 1986 by its current Managing Director R Vasudevan.