The usage of "with +ing" format & "having + past participle"

[lambandme]

The results of the company’s cost-cutting measures are evident in its profi ts, which increased 5 percent during the fi rst 3 months of this year after it fell over the last two years.

(A) which increased 5 percent during the first 3 months of this year after it fell
(B) which had increased 5 percent during the first 3 months of this year after it had fallen
(C) which have increased 5 percent during the first 3 months of this year after falling
(D) with a 5 percent increase during the first 3 months of this year after falling
(E) with a 5 percent increase during the first 3 months of this year after having fallen


OA is C

OG says the underlined part need to clarify the sequence by using verb tenses.
Here are the explanation for the choices:

A The verb tenses do not distinguish between the times at which these indicators occurred; the singular it does not agree with the plural profits.
B The verb tenses do not distinguish between the times when the indicators occurred; the singular it does not agree with the plural profits.
C Correct. The verb tenses clearly indicate the sequence of events.
D It is not clear what connection is being described by with; the prepositional phrase makes the sentence wordy and unclear.
E It is not clear what connection is being described by with; the prepositional phrase makes the sentence wordy and unclear.

IF the sequence is the first priority, I think E best resolves this problem "having fallen..." clearly indicates that the action falling happened before the action increase.
Why is E wrong?
1) because it starts with "with+ing" pattern?
I've noticed that OG seems to avoid this "with" pattern. But could anyone tell me why is it wrong? if it's a noun modifier, then it makes perfect sense to modify "profits".
2) because it contains "having"? GMAT seems to avoid this form too.

Please explain~~~Thanks

[jnelson0612]

Check out Ron's explanations on this thread: sc-the-results-of-the-company-s-cost-cutting-measures-are-t8497.html