Shares of Prime Focus Limited fell to a day low of Rs 265 on 7 October, down 9%, after reports of Income Tax searches at its Mumbai offices.

Sources reported, that the Income Tax Department began searches at the company’s Mumbai offices on Wednesday morning. Some individuals linked to Prime Focus are also being searched, the report said.

The searches relate to foreign remittances, sources told the channel. In simple terms, that means money sent into or out of India.

Details of the transactions under review were not immediately available. The details are still thin.

Prime Focus is a Mumbai-based media and entertainment services company with businesses in visual effects, animation and post-production.

According to information on its investor centre, 92% of its revenue came from markets outside India.

At 11:05 am, NSE put up a ‘News Verification’ notice for the company, saying the exchange has sought clarification from Prime Focus.

The company’s reply was not available at the time of writing. The firm has had a busy year on the regulatory front.

Sources reported that in June, SEBI closed adjudication proceedings against Prime Focus and its directors, finding that the accounting treatment and disclosures under scrutiny did not amount to misleading statements or accounting irregularities.

Separately, the National Company Law Tribunal had admitted an insolvency petition against the company over a Rs 353.79 crore claim filed by Reliance Alpha Services Pvt Ltd.

Prime Focus challenged the order, and in July the appeals tribunal set it aside and approved a settlement. The company later disclosed that the insolvency proceedings had ended.

It is noted that nothing so far links the tax action to either matter.

At 11:09 am, it’s trading at Rs 274.55 on NSE, down Rs 18.15 or 6.20% from the previous close of Rs 292.70.

The stock opened at Rs 294.85 and has lost 13.09% over the past week, though it is still up 19.77% so far this year. Its market value was around Rs 21,397 crore at the time of writing.

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