Mumbai, Dec. 8 -- The report, titled "PG Electroplast in Limelight After Red Flags in Financial Health Raise Warnings," claimed that the firm faced rising leverage, weakening cash flows and growing debt commitments. It suggested that these issues could put pressure on the company's liquidity and long term stability.

The article triggered fresh scrutiny from investors and led to the stock's decline. PG Electroplast later issued a detailed clarification, calling the claims "factually inaccurate and misleading." The company said it is a net cash firm with cash levels higher than debt for the past 12 months. It added that its liquidity position remains strong and that its audited financials clearly reflect this.

The company said it has post...