Troubles for the Hyderabad-based media group, Deccan Chronicle Holdings Ltd (DCHL), which is facing financial problems, including a winding-up petition, seem to be getting worse. Effective January 23, trading in the scrip has been suspended.
According to a circular issued by the National Stock Exchange today, non-compliance with the provisions of the listing agreement is the reason for the suspension from trading. Non-compliance provisions include non-submission of corporate governance report, financial results and reconciliation of share capital audit report for the quarter ended September 30.
Efforts to seek the management’s response in this regard proved futile. While DCHL chairman and promoter T Venkattram Reddy was stated to be out of station, the mobile phone of another promoter and vice-chairman, P K Iyer, was switched off.
The financial distress in DCHL came to light when the company defaulted on redemption of non-convertible debentures held by IFCI. Canara Bank is conducting a forensic audit of DCHL’s accounts.
The company's shares on the Bombay Stock Exchange closed at Rs 7.17 today, up five per cent over the previous close, while the benchmark index, the Sensex, gained 0.40 per cent before ending trade at 19,986.82 points.