In a regulatory filing made after market hours yesterday, the company announced that it has received a “Stop Deal” notice from Gujarat Energy Transmission Corporation (GETCO) intimating that GETCO has decided to stop dealing with the company for a period of 3 years on the ground that the company had allegedly submitted forged material dispatch clearance certificates (MDCC) relating to certain transformers supplied by the company under the contract awarded to the company for supply of total 29 Transformers and 1 Reactor to GETCO.

Transformers and Rectifiers said that till date 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.

"The company is taking necessary steps for defending its position against this allegation, and resolving this issue,” Transformers and Rectifiers said in a statement.

Transformers & Rectifiers (India) produces transformers for both domestic and international markets.

The company consolidated net profit zoomed to Rs 9.02 crore in the quarter ended March 2023 as against Rs 1.31 crore during the previous quarter ended March 2022. Sales rose 27.34% to Rs 433.75 crore in Q4 FY23 over Q4 FY22.