Bengaluru: The Income Tax Department on Friday launched coordinated search operations at around 50 premises of leading electrical wires and cables maker Polycab India Ltd.
“The Department had gathered intelligence that the company was indulging in large-scale unaccounted cash transactions,” a senior government official with knowledge of the matter said. The official did not wish to be named.
Search locations include offices, residential premises of promoters and top management officials, and select manufacturing facilities of the company, the official added. The operation covered Mumbai, Aurangabad, Pune, Nashik and Daman, among others.
“So far Rs 5 crore have been recovered collectively. Evidence of out-of-books sales has also been uncovered,” the source said.
The fast moving electrical goods player runs business operations across 25 manufacturing facilities, including 2 joint ventures and over 25 warehouses pan-India.
Stocks of the company tanked nearly 5 per cent on Friday, closing at Rs 5,362.85 apiece on the National Stock Exchange.
For the quarter ended September 2023, Polycab India reported a 58.5 per cent surge in consolidated net profit at Rs 436.89 crore. The company’s revenue jumped 28% year-on-year to Rs 4,253 crore.
The company did not respond to DH’s request for comment.
Published 22 December 2023, 07:04 IST