Shree Cements cracks 10% on reports of Rs 23,000-crore tax evasion

Shares of Shree Cements tanked 10 percent in early trade on June 26 following reports that the company has been found to have allegedly evaded Rs 23,000 crore in taxes.

A report by NDTV said an alleged evasion of Rs 23,000 crore, said to be one of the biggest, was allegedly unearthed during tax searches at Shree Cements offices in Rajasthan’s Beawar, Jaipur, Chittorgarh and Ajmer.

Moneycontrol couldn’t verify the report independently.

At 9.35 am, Shree Cements was trading at Rs 23,639.75 on the National Stock Exchange, down 6 percent from the previous close. The stock also hit an intraday low of Rs 22,630.75 minutes after the opening.

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Volumes were strong as 83,000 shares of the company changed hands on the exchanges as against the one-month daily traded average of 46,000.

Sources quoted by NDTV also said that the company siphoned off Rs 1,200-1,400 crore every year in tax because of which the Centre and the state government suffered a huge loss of revenue due to “fake agreements”.

The company tried to calm investors through a clarification issued on the exchanges. “We would like to clarify that the survey is still going on. The entire management team of the company is available and extending full cooperation to the officials. Any information circulating in the media otherwise is incorrect and has been published without seeking prior inputs from the company,” Shree Cements said.

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