Shree Cement is down in the red today, figuring among the top five losers on the BSE. The stock price tanked over 10% to hit an intraday low at Rs.22601.30. It currently remains in the red, down some 7% at Rs.23k levels.
The stock price fell on reports that came out on Saturday that the IT raid on the company’s multiple locations has unearthed tax evasions to the tune of Rs.23,000 crore.
Though there is no word from the company on this, sources quoted in the reports say that the IT officials have recovered forged documents and there is evidence showing that deductions claimed by the company are false too.
IT sources have alleged that every year, the company has siphoned off Rs.1200-1300 crore in tax evasions.
The company’s reply on this - We have gathered that a lot of negative information about the company and its officials is floating in certain sections of the media in connection with the above survey. We would like to clarify that the survey is still going on. The entire management team of the company is available and extending full cooperation to the officials. Any information circulating in the media otherwise is incorrect and has been published without seeking prior inputs from the company. This is for your kind information and records.