Shares of TARC Limited were locked in a 10% lower circuit at Rs 189.55 on the BSE during Tuesday’s intra-day trade after the Securities and Exchange Board of India (SEBI) announced the appointment of a forensic auditor to review the company’s financial statements for financial years 2020-21 to 2022-23.
SEBI’s decision stems from concerns that the company’s disclosure of financial information and handling of business transactions may have been detrimental to the interests of investors or the securities markets.
TARC’s response
In an exchange filing, TARC reassured stakeholders that it will provide full cooperation and necessary information to support the audit process. The company emphasized its commitment to the highest standards of corporate governance, transparency, and integrity.
“This matter will be addressed thoroughly and efficiently, with no impact on financial, operational, or other strategic objectives. We remain confident that this will not affect our strong growth trajectory or the long-term value we aim to deliver to shareholders,” the company said.
TARC further noted that the audit could ultimately enhance shareholder trust by reinforcing its focus on transparency, compliance, and accountability across all business operations.
The development has weighed on investor sentiment, resulting in the stock hitting its lower circuit. Further updates on the audit process will be communicated by the company as developments arise.
