No Written Communication pertaining to December 2023 Income Tax Raid Received, says Polycab
According to the tax department, during the search and seizure operation at Polycab India, credible evidence was allegedly discovered indicating unrecorded cash sales amounting to around Rs 1,000 crore.
Polycab India, following a raid by tax authorities in December 2023, disclosed in its earnings report on Friday that it has not received any formal communication from the department regarding the outcome of the search. The company stated that the Income Tax Department conducted a search at certain premises and employees' residences in December 2023. However, we have not received any...
Polycab India, following a raid by tax authorities in December 2023, disclosed in its earnings report on Friday that it has not received any formal communication from the department regarding the outcome of the search.
The company stated that the Income Tax Department conducted a search at certain premises and employees' residences in December 2023. However, we have not received any written communication from the department regarding the outcome of the search. Consequently, the impact on the financial results of the company, if any, remains uncertain.
Shares of Polycab India were trading marginally higher by over 1%, while the broader Nifty and Sensex indices were up approximately 0.3% as of 12:00 pm.
The management of Polycab India, after evaluating all available records and information, expressed confidence that there is no significant adverse impact on the company's financial standing. The company adde that no substantial adjustments are required to these financial results for the quarter and year ended March 31, 2024, in this context.
Meanwhile, according to the tax department, during the search and seizure operation at Polycab India, credible evidence was discovered indicating unrecorded cash sales amounting to around Rs 1,000 crore. The department also seized evidence of unaccounted cash payments exceeding Rs 400 crore made by a distributor on behalf of the flagship company for raw material purchases. Additionally, non-genuine expenses such as subcontracting expenses, purchases, and transport expenses, totaling approximately Rs 100 crore, were identified as seized evidence from the premises of the company.
Furthermore, the tax sleuths found unexplained transactions facilitated by the distributor, issuing bills without genuine supply of goods, resulting in inflated purchase accounts of about Rs 500 crore. These transactions were allegedly undertaken to allow certain parties to inflate their purchase accounts, with the distributor exclusively selling products of the flagship company.
The investigation into these findings is ongoing, and Polycab India continues to cooperate with the authorities in this matter.
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