The Income Tax Department searched the Mumbai offices of Prime Focus Ltd on October 7. The company is producing Nitesh Tiwari’s big-budget film Ramayana.

CNBC-TV18 first reported the searches. They began on Wednesday morning at the company’s Mumbai offices. Searches were also carried out at the premises of some individuals linked to the company. Sources said the action is connected to foreign remittances. Details of the transactions under scrutiny are not yet known.

Prime Focus shares fell sharply after the news broke. The stock dropped about 8 percent in morning trade. Both the BSE and the National Stock Exchange sought clarification from the company. Prime Focus said its routine business operations were unaffected and that it was fully cooperating with the tax authorities.

Prime Focus Studios, headed by Namit Malhotra, is one of India’s leading visual effects companies. Its Ramayana stars Ranbir Kapoor, Sai Pallavi, Yash, and Sunny Deol and is set for a Diwali release.

Neither the company nor the Income Tax Department has issued a detailed statement so far.