Shares of Polycab India experienced a sharp decline of 20% on Thursday following reports of alleged Income Tax evasion. The stock was trading at Rs 3,905, down 20.5%, on the Bombay Stock Exchange (BSE).
In response to the reports, Polycab India issued a statement denying rumors of tax evasion and emphasized its commitment to compliance and transparency. The company stated that it had fully cooperated with Income Tax Department officials during the search proceedings conducted in December 2023. As of the statement, the company had not received any communication from the Income Tax Department regarding the outcome of the search.
Polycab India, the country's largest manufacturer of wires and cables, highlighted its focus on providing quality products and services while upholding principles of corporate governance and ethical business practices.
Media reports suggested that the Income Tax Department had found unaccounted sales of Rs 1,000 crore during the raid against Polycab. The company's shares have been on a downward trend since the Income Tax raids on December 23, 2023. At that time, Polycab India had informed the stock exchanges about the initiation of a search by the Income Tax Department at some of its premises and plants, pledging full cooperation with authorities and adherence to ethical conduct and legal compliance.
(With Agency Inputs)
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