Income Tax department searches Uflex premises in Noida, shares fall 2.5%

Income Tax department has begun a search on the Noida office of Uflex Limited over the alleged concealment of income. The alleged evasion took place through the issuance of bogus bills, according to a CNBC TV-18 report.

Sources said that searches are being also conducted at 64 locations across the country in Uttar Pradesh, Delhi, Gujarat, Maharashtra, Madhya Pradesh, West Bengal, Jammu and Kashmir, Haryana, Tamil Nadu, Uttarakhand and Himachal Pradesh.

More details from the searches is awaited.

The news of the raid weighed on the shares of the company, driving them down over 2.5 percent. At 10:30am, the stock traded at Rs 473.05 apiece on the NSE.

Volumes at 5.17 lakh were significantly higher than 20-day average volume of about 83,000. The stock has been in a downtrend since announcing its Q3FY23 results. The company posted a net loss of Rs 85 crore in the third quarter against a net profit of Rs 314 crore in the corresponding quarter last year, primarily due to an adverse movement in forex rates.

The income tax department had earlier carried out raids at 37 premises associated with the company in nine cities back in 2014. The search is said to have resulted in the discovery of bogus sales worth Rs 100 crore and unaccounted cash worth Rs 2 crore.

UFlex is India’s largest multinational flexible packaging and solutions company and has created a presence across all verticals of the packaging value chain – Flexible Packaging, Packaging Films, Aseptic Liquid Packaging, Holography, Printing Cylinders, Engineering, and Chemicals.