India's Shree Cement Slumps After Report Of $2.81 Bln Tax Evasion

New Delhi: India's Shree Cement fell on Monday, after NDTV reported on Saturday that tax evasion amounting to 230 billion rupees ($2.81 billion) was found in searches at multiple company locations. Deductions claimed by Shree Cement are false and the company siphoned 12 billion rupees to 14 billion rupees every year, the report added, citing sources, but without specifying the timeline.

The income tax (IT) department was conducting a survey action at five locations of the company in the north-western state of Rajasthan last week, according to reports. Shree Cement and the IT department did not immediately respond to Reuters' request for comments.

The company's standalone tax expenses fell over 58% YoY to 2.31 billion rupees in the financial year ended March 31, while profit fell 44% to 13.28 billion rupees on a surge in other costs. Shares of the company opened 10% lower on Monday at 22,630.75 rupees, their steepest intraday drop in over three years, and were last down around 7.2% at 10:56 a.m. IST.

Shree Cement said on Saturday that the survey was still ongoing, and that its management team is extending full co-operation to officials.