Transformers and Rectifiers crashes 17% as client slaps 3-year ban for alleged forgery

The firm received the notice from GETCO intimating that the latter has decided to stop dealing with the company for a period of 3 years on the grounds it had allegedly submitted forged Material Dispatch Clearance Certificates (MDCC) relating to transformers supplied by it.

Transformers and Rectifiers shares slipped 17 percent to Rs 88.50 at 9:30am after the company received a 'Stop Deal' notice from the Gujarat Energy Transmission Corporation Limited (GETCO).

On July 19, 2023, the firm received the notice from GETCO intimating that the latter has decided to stop dealing with the company for a period of 3 years on the grounds it had allegedly submitted forged Material Dispatch Clearance Certificates (MDCC) relating to transformers supplied by it. The company won the contract for the supply of 29 transformers and 1 reactor to GETCO.

Transformers and Rectifiers has clarified that the company has already supplied 24 Transformers and 1 Reactor to GETCO under the said contract.

Further, based on earlier discussions on this issue with GETCO, the company has successfully concluded additional inspection tests as per the requirements of GETCO, and the above Transformers/Reactor supplied under the said contract are in operation in GETCO, company said.

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The company is taking necessary steps for defending its position against this allegation, and resolving this issue, it added further.

The share touched a 52-week high of Rs 111.95 and a 52-week low of Rs 28.95 on 14 July, 2023 and 27 July, 2022, respectively.

Currently, the stock is trading 20.95 percent below its 52-week high and 205.7 percent above its 52-week low.