Nothing wrong was found by IT dept: Vakrangee Software

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Vakrangee Software has collapsed quite a bit, the stock was down 11% because of the IT Probe apparently.

In an interview CNBC-TV18's Udayan Mukherjee, Dinesh Nandwana, Vakrangee Software, speaks about the issue and gives his outlook going forward.

Here is a verbatim transcript of the exclusive interview with Dinesh Nandwana on CNBC-TV18. Also watch the accompanying video.

Q: Can you confirm that there has been IT searches on Vakrangee Software?

A: IT raided yesterday only and just half an hour ago they have concluded. So, I am wondering how before conclusion people can say that there was some wrong doing. But I am proud to say they have verified each and every transaction and nothing was found wrong. Every purchase, sale, free assets were found 100% perfect.

Q: So, the raid started yesterday?

A: Yesterday and today just half an hour ago they have concluded the raids and gone to their offices.

Q: Where all did the raids happen, in all your premises?

A: Yes, in all my premises. But right now 100% work is over and not a single thing they have found wrong.

Q: Have they informed you that?

A: I am just now issuing the press note.

Q: There has been one report doing the round that a senior IT officer involved in the raid has actually said that there was purchase of software worth Rs 70 crore from two non existent companies?

A: I just read in Hindustan Times also, but that is not correct. You can cross verify now from the department. They have just concluded the raids and there is nothing wrong found.

Q: And there was no cash found in the premises either?

A: They found the normal cash, around Rs 11-12 lakh that is routine course. For this type of company where we are doing large multi location operations, Rs 11-12 lakh is nothing that is requirement of the company.

Q: That same report that you are alluding to also says that you have actually reduced profits and evaded tax by actually showing bogus expenses on account books?

A: That is 100% wrong news that is misguided news; I don't know how they published the news. I am just issuing the press note. Everything is fine and perfectly okay.

Q: So, can you tell us what is there in the media release, the press note?

A: Just clarifying everything.

Q: Can you read the contents out to me?

A: Just now they have concluded the raid, after 5-10 minutes I will face to you.

Q: Did you have a chance to speak to the officer who was heading this inquiry or the raid?

A: Lots of officers were there, but you can inquire with the department. I am saying officially on behalf of my company everything is perfect, not even single transaction they have found wrong.

Q: So, why did the raids happen?

A: You must be knowing that midcap sized companies may be targets. There must be some misinformation, some wrong complaints, I don't know. But I can categorically say everything they found perfect.

Q: They told you that before they left?

A: Yes, before they left, both of us signed the statement of facts, they have signed the panchanama, and I have signed the panchanama.