As per sources quoted by the media group it was claimed that Shree Cements had been diverting a substantial amount of Rs 1,200-1,400 crore annually through fraudulent means resulting in significant revenue losses for both the central and state governments. These losses were attributed to what was described as “fake agreements”.
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In a surprising turn of events Shree Cements witnessed a staggering 10 percent decline in its shares during early trade on June 26. This significant drop came after reports emerged alleging that the company had evaded a colossal sum of Rs 23,000 crore in taxes. A media group unveiled this supposed tax evasion labeling it as one of the largest ever discovered subsequent to tax searches conducted at Shree Cements’ offices situated in Beawar, Jaipur, Chittorgarh, and Ajmer in the state of Rajasthan.
Trading on the National Stock Exchange revealed a downturn for Shree Cements with the stock plummeting 6 percent to reach Rs 23,639.75 compared to the previous closing price. Shortly after the market opening the stock hit an intraday low of Rs 22,630.75 adding to the apprehension surrounding the company. Interestingly the trading volume was notably high with 83,000 shares changing hands surpassing the one-month daily traded average of 46,000 shares.
As per sources quoted by the media group it was claimed that Shree Cements had been diverting a substantial amount of Rs 1,200-1,400 crore annually through fraudulent means resulting in significant revenue losses for both the central and state governments. These losses were attributed to what was described as “fake agreements”.
In an attempt to assuage investor concerns, Shree Cements issued a clarification via the stock exchanges. The company emphasized that the survey was still ongoing and assured that the entire management team was cooperating fully with the officials involved. Moreover, they declared that any information circulating in the media contrary to their statement was incorrect and had been published without prior consultation with the company.
