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Published: January 10, 2024
Updated: January 10, 2024

Polycab India Dispels Tax Evasion Rumours, Shares Face Volatility

Polycab India Ltd has come under the spotlight as the company denies rumors of tax evasion amidst a recent plunge in its shares. The company refutes claims of transactions worth Rs 250-300 crore in the promoter accounts, as reported by CNBC TV18.

Search Operations and Market Reaction:

In December 2023, the Income Tax Department conducted search operations at Polycab's premises, concluding on December 30. Following this, the company's shares witnessed a 9% drop. However, Polycab emphasizes that it has not received any communication from the Income Tax Department regarding the outcome of the search.

Company's Response:

In a filing to BSE, Polycab asserts its commitment to compliance and transparency. The company states that it cooperated fully with Income Tax Department officials during the search proceedings in December 2023. Despite the market turbulence, Polycab remains focused on delivering quality products and services while adhering to principles of corporate governance and ethical business practices.

Reassurance and Lack of Communication:

The electrical goods company reiterates its dedication to its mission and underscores its cooperation with tax authorities. Despite the allegations, Polycab reveals that it has not been officially informed of any outcomes from the Income Tax Department's investigation.

Industry Standing:

Polycab India, known as the largest domestic manufacturer of wires and cables, achieved a consolidated turnover of Rs 14,100 crore in FY23. The company's strong position in the electrical goods sector adds significance to the recent developments.

Challenging situation for Polycab: Shareholders in jittery

As Polycab India navigates through this challenging situation, its commitment to compliance, transparency, and ethical practices remains unwavering. The market will keenly watch for further updates and clarification from both the company and tax authorities as the situation unfolds.