Shree Cement stock was down by 11 percent in early trade as the company informed the exchanges on Saturday that the locations of the company were surveyed by income tax department. The company said that it is fully cooperating with the authorities. Reports emerged that IT department survey was ongoing as there was alleged tax evasion at Shree Cement. The company has issued official statement denying any wrongdoing. The company has further informed that the survey is ongoing and the management is fully cooperating with tax department employees.

The official statement from Shree Cement clarified, “We have gathered that a lot of negative information about the company and its officials is floating in certain sections of the media in connection with the above survey. 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.”

A media report alleged that there was tax evasion to the tune of Rs 23,000 crore but the company has refuted the charges. The IT department visited company locations in Jaipur, Ajmer, Chittorgarh and Beawar.

After the initial drop, the stock recovered and was down by 7 percent at 11 am. For March 2023 quarter, Shree Cement reported 15 percent drop in profit compared to the same period last year.