Maytas Infra dips 5 pc in; gets stuck in lower circuit | business | Hindustan Times
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Maytas Infra dips 5 pc in; gets stuck in lower circuit

Shares of Maytas Infra, another firm promoted by the Ramalinga Raju family, fell nearly by five per cent and got stuck in its lower circuit on the bourses.

business Updated: Jan 09, 2009 12:34 IST

Shares of Maytas Infra, another firm promoted by the Ramalinga Raju family, on Friday fell nearly by five per cent and got stuck in its lower circuit on the bourses, after reports surfaced that the firm has also misrepresented its financials.

Maytas Infra on Friday opened at Rs 151.10, down 5 per cent from its previous close on the BSE. Similarly on the National Stock Exchange, the scrip dipped nearly 5 per cent and touched an intra-day low of Rs 150.80.

On Thursday, the company said its chairman and non-executive director R C Sinha has tendered his resignation.

On volume terms, as many as 544 shares exchanged hands on BSE and 1,294 shares got traded on NSE.

Maytas Infra has also understated its profit in the April-June quarter and the discrepancies were "duly accounted for" in the company's books later.

The company's statutory auditors has qualified that Maytas Infra made under-provision for service tax liability and excess provision for deferred tax liability, resulting in a net understatement of profit after tax by Rs 1.60 million, company VC B Teja Raju, son of Satyam's founder B Ramalinga Raju, has said.

Meanwhile, Ramalinga Raju on Wednesday announced his resignation as Satyam chairman after disclosing financial irregularities to the tune of about Rs 7,800 crore at the company over a period of seven years, in a development that has emerged as the biggest-ever corporate fraud in India.