Shree Cement share price declines over 2% as government orders an inspection

livemint.com:

Shree Cement share price declined over 2 per cent in the morning trade on Thursday, a day after the company said the government ordered an inspection of the company. There were reports already claiming that the government had issued inspection orders against the company for alleged tax evasion which the company had denied earlier. Media reports emerged days back on July 11 only that the government issued an inspection order against Shree Cement.

In a regulatory filing on July 11, the company denied that the government had issued any such orders. But in a BSE filing on Wednesday (July 19), the company said that it had received a letter dated July 19, 2023, from the office of Regional Director (NWR), Ministry of Corporate Affairs (MCA) informing order of inspection. As Mint reported earlier, the Ministry of Corporate Affairs (MCA) on July 11 issued an inspection order against Shree Cement.

The order was issued after taking note of issues with respect to related party transactions, corporate governance matters and issues pertaining to improper income tax filings. The latest move comes days after the Income Tax (I-T) department conducted survey action at five locations of Shree Cement in Rajasthan. A survey action of the tax department is an investigative procedure carried out to ascertain the actual income earned by a taxpayer for a financial year, according to reports.

During the survey, the I-T department verified deductions claimed by Shree Cement under section 80IA. The deductions claimed by the company are false, reports suggest. Shree Cement has so far denied any tax evasion news reports to news channels, saying that they dismiss any tax evasion-related details so far.