KELLTONTEC which currently trading in 10% Lower circuit because of its first ever Loss Financial Year since 2012. After Looking at its Financial Reports, I found that there was this loss at the exception Items. These Exceptional items included Writing off Goodwill of the Subsidiary. Writing off goodwill refers to the process of reducing or eliminating the recorded value of goodwill on a company's balance sheet. When a company's management determines that the value of its goodwill has become impaired, meaning that the future benefits expected from the acquisition are no longer as valuable as previously estimated, they must write off or reduce the value of goodwill on the balance sheet.
This can lead to a loss of investor confidence and a decrease in demand for the company's shares, putting downward pressure on the share price.
One real example of a company whose share price was affected after writing off goodwill is
GE (General Electric). In 2018, GE announced a non-cash goodwill impairment charge of $22 billion related to its power business.