Income Tax Department claims to have collected evidence of tax evasion from the company’s account, sources told CNBCTV18.
Shares of Polycab tanked over 7 percent on January 9 after reports Rs 200-crore tax evasion. Sources told CNBC TV18 that the income tax department detected Rs 250-300 crore of transactions booked in the company’s promoter accounts. The company had denied the allegations.
At 1:45pm, the Polycab stock was trading at Rs 4,964.95, down 7.1 percent. In addition to the search, I-T department claimed to have collected proof of tax evasion from the company’s account in the last five-six years.
The income tax department had conducted raids across 50 locations of Polycab on December 22. The company, however, denied such claims and told CNBC TV18 that there was no communication from the I-T department on the outcome of the search done in December. They added that the company responded to the clarifications and details asked by the income tax department after the search.
Polycab India has 23 manufacturing facilities, 15 offices and more than 25 warehouses across the country. The company manufactures cables and wires along with FMEG (Fast Moving Electrical Goods). In the quarter ended in September 2023, Polycab reported a 58.5 percent growth in consolidated net profit to Rs 436.89 crore.
In the last one month, shares of Polycab India has tanked 12 percent with 6 percent only after the December 22 raids.
