Shares of Shree Cements tumbled 2.5 percent in early trade on July 20 after the company received an inspection notice from the Ministry of Corporate Affairs. The inspection notice comes weeks after news reports claimed that the cement manufacturer had come under the radar of the Income Tax Department amid allegations of tax evasion.
At 09.17 am, shares of Shree Cements were trading 2.2 percent lower at Rs 23,500 on the National Stock Exchange.
In June end, several news channels reported that the multiple offices of Shree Cements had undergone search operations which revealed that the company evaded taxes to the tune of Rs 23,000 crore, the biggest in history.
A report by NDTV had stated that searches took place at Shree Cements' offices in Rajasthan’s Beawar, Jaipur, Chittorgarh and Ajmer.
Also Read: Shree Cement gets MCA's inspection notice after reports of alleged tax evasion
Following the news release on June 26, shares of Shree Cements had also taken a beating on the bourses and nosedived 10 percent in the subsequent trading session, marking the steepest intraday sell-off in the counter in over three years.
In response to the news reports, Shree Cements had also issued a statement saying, "We are extending full cooperation with the Income Tax Department for the ongoing survey. The survey is yet to conclude, and we dismiss the speculative reports about tax evasion."
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However, investors didn't seem to be convinced by the cement manufacturer's reassurance as the stock is still down nearly 8 percent for the past month.
Also Read: Shree Cements cracks 10% on reports of Rs 23,000-crore tax evasion
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