SKS Micro drops 4% on show cause notice

Shares of the SKS Microfiance Ltd dropped more than 4% on Monday after the company received showcause notice from service tax authorities, demanding service tax of Rs 34.2 crore.

Also, the company reported Q2 net loss at Rs 262-cr against Rs 39-cr in the corresponding period of previous year.

The company shares was seen trading lower by 3.54% at Rs 116 on BSE at 10.20 am IST, after touching an intraday low of Rs 114.

According to the report, the company had not made provisions relating to the period FY 2007-08 to FY 2011-12.

The authorities have given 30 days to the company to respond.

The company's standalone total income from operations stood at Rs 78 crore against Rs 122 crore in the corresponding period last last year.

The company has cash and bank balances of Rs 358 crore as on September 30, 2012.

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