Shree Cement: MCA issues inspection order against co; share price falls
Shares of Shree Cement were trading nearly 1 percent lower at Rs 23,799.95 apiece during Tuesday's late afternoon deals. The stock has fallen 7 percent in the last one month, while it gained 2 percent on a year-to-date basis.
The Ministry of Corporate Affairs (MCA) has issued an inspection order against cement manufacturer Shree Cement, sources confirmed to CNBC-TV18 on Tuesday. The order has been issued taking cognizance of issues with respect to related party transactions, corporate governance matters and issues pertaining to improper income tax filings.
This comes days after the Income Tax (I-T) department conducted survey action at five locations of Shree Cement in Rajasthan. A survey action of the tax department is an investigative procedure carried out to ascertain the actual income earned by a tax payer for a financial year.
During the survey, the I-T department verified deductions claimed by Shree Cement under section 80IA. The deductions claimed by the company are false, reports suggest.
However, the Kolkata-based company has denied any tax evasion news reports to CNBC-TV18, saying that the they dismiss any tax evation related details so far. The company further said that the Income Tax survey is still ongoing.
"Income Tax Department is conducting a survey at our premises, and the company's management team is available and extending full cooperation to the officials. The information as required by the officials is being made available," the company said in a statement.
The alleged tax evasion, according to the reports, is said to be the biggest ever to date.
Shares of Shree Cement were trading nearly 1 percent lower at Rs 23,799.95 apiece during Tuesday's late afternoon deals. The stock has fallen 7 percent in the last one month, while it gained 2 percent on a year-to-date basis.
The counter's 14-day relative strength index (RSI) came at 40. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a one-year beta of 0.7, indicating very low volatility on the counter.
Out of the 45 analysts that track Shree Cement, 10 have a buy rating on the stock, while 19 have a hold. 16 other analysts recommend investors to sell the stock. Based on the 12-month Bloomberg consensus, the stock has a return potential of 3.3 percent.
First Published: Jul 11, 2023 3:15 PM IST
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