Electrical equipment manufacturer Polycab India Ltd on Thursday (January 11) issued a clarification after the Income Tax department conducted search proceedings at some of its premises and plants.
This comes after the Income Tax department detected "unaccounted cash sales" of about ₹1,000 crore after it recently raided the Polycab Group.
"The company understands that there is a press release titled ‘Income Tax Department conducts search operations in Mumbai’ published on January 10, 2024 (at 8:06 pm) by Press Information Bureau, Delhi, which does not specifically name any company.
The company reiterates that as of date, the Company has not received any written communication from the IT Department regarding the outcome of the search. As indicated above, the Company has made intimation from time to time in relation to the said search proceeding," according to a stock exchange filing.
The company emphasises that it has been fully cooperative throughout the search proceedings, providing necessary clarifications and details as sought by the Income Tax Department officials.
While there has been a press release titled 'Income Tax Department conducts search operations in Mumbai,' published by the Press Information Bureau, Delhi, on January 10, 2024, Polycab notes that the release does not specifically name any company.
As of the latest update, Polycab states that it has not received any written communication from the Income Tax Department regarding the outcome of the search proceedings. The company has consistently informed stakeholders about the ongoing developments related to the search proceedings.
The post-search proceedings will follow their course, and Polycab affirms its commitment to full cooperation with the Income Tax Department throughout the process. Importantly, the company reassures stakeholders that there is no material adverse impact on its financial position due to these developments.
Polycab, known for its ethical practices and adherence to the best corporate governance standards, maintains its commitment to transparency. The company intends to keep the stock exchanges informed about any further developments related to the search proceedings on time.
Shares of Polycab India Ltd ended at ₹3,904.70, down by ₹1,007.15, or 20.50% on the BSE.
