What's up with Dishman's FY15 results?
Shares of Dishman Pharma are ruling soft by 5.8%, down almost by Rs. 10 at Rs. 165 on BSE, with strong volumes of 1.9 lakh shares on BSE alone, where average daily volumes stand at 1.25 lakh.
The company’s Board of Directors were scheduled to meet on Friday 17th July 2015, to take on record audited financial results for the year ended 31st March 2015 and to recommend final dividend, if any. Yes, meeting was scheduled for FY15 results and not for Q1FY16 results. However, audited results for FY15, still stand unapproved post the meeting. Raising suspicion on time taken by the board to approve audited results, the stock has reacted adversely.
The company had announced unaudited results for year ended 31-3-15 in May of this year, publishing only the Income Expenditure statement and not the balance sheet. There was disagreement with the statutory auditors with respect to recognition of employee pension benefits of its Swiss subsidiary Carbogen Amcis in the consolidated financials. As reporting differs as per Swiss GAAP and as per Indian GAAP and the amount being material, board of directors has deferred the approval of financial results in May. Even now, after nearly two months, when the board met again, this agenda for approval of audited accounts was deferred once again. Also, the auditors of the company resignation from their post of statutory auditor and board is seeking shareholder nod via extra-ordinary general meeting (EGM) on 14th August 2015, to appoint new auditors.
Till FY15 results are not approved, Q1FY16 results may also be delayed, keeping the dark clouds looming on the stock. Also, vacation of office by statutory auditor over a pending audit matter raises some eyebrows.