Castrol India fell 1.44% to Rs 447 at 9:19 IST on BSE after the company said it received an order from Maharashtra Sales Tax Department for the financial year 2009-10, demanding Rs 255 crore towards sales tax, including interest.
The announcement was made after market hours yesterday, 2 November 2015.
Meanwhile, the BSE Sensex was up 85 points, or 0.32%, to 26,644.15.
On BSE, so far 4,919 shares were traded in the counter, compared with an average volume of 45,504 shares in the past one quarter.
The stock hit a high of Rs 451.40 and a low of Rs 446.20 so far during the day. The stock hit a record high of Rs 544 on 8 December 2014. The stock hit a 52-week low of Rs 409.50 on 7 November 2014.
The stock had underperformed the market over the past one month till 2 November 2015, rising 1.11% compared with 1.29% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 7.66% as against Sensex's 5.53% decline.
The large-cap company has an equity capital of Rs 247.28 crore. Face value per share is Rs 5.
While the company is reviewing the order in detail, the demand pertains to sale of goods made by the company in the states other than Maharashtra, where applicable taxes have been paid as per the provisions of law, Castrol India said.
Castrol India is operating within the laws of the country and pays sales tax in a state in which the goods are sold. The company is committed to fully co-operate with the authorities, while seeking appropriate legal recourse to justify and validate its position, Castrol India said. The company's tax payment methodology in respect of the goods sold is adequately supported by robust legal grounds/precedents and in company's opinion the demand is unjustified, it said.
Castrol India's net profit rose 48.3% to Rs 184.50 crore on 1.6% rise in total income to Rs 938.80 crore in Q2 June 2015 over Q2 June 2014. The company will announce Q3 results on Thursday, 5 November 2015.
Castrol India manufactures and markets a range of automotive and industrial lubricants.
Powered by Capital Market - Live News
