The news on Polycab shares is not good today. The stock has plummeted significantly, dropping over 20% due to recent income tax department raids
.Income Tax Raids:
On December 22, 2023, the Income Tax Department conducted searches at over 50 locations of Polycab India.
Undisclosed cash sales of around Rs. 1,000 crore were reportedly found by the department, along with evidence of unaccounted cash payments exceeding Rs. 400 crore.
Polycab has maintained its commitment to compliance and transparency, but the investigation is ongoing.
Market Reaction:
The stock hit a 20% lower circuit on BSE during early trading on January 11, 2024.As of this morning, January 12, 2024, the stock is still down considerably.
Further Information:
Polycab is scheduled to hold its board meeting on January 18, 2024, where they might discuss the financial results and the current situation.
Impact:
This incident has undoubtedly impacted investor confidence in Polycab, and the stock price is likely to remain volatile in the near future.
The outcome of the investigation will significantly influence the long-term performance of the company.
Polycab management’s response to the income tax raids has been two-pronged:
Cooperation and Transparency:
They emphasized their commitment to compliance and transparency during the search proceedings.
They fully cooperated with the Income Tax department officials and provided access to documents and data.
They reiterated their strong belief in good corporate governance.
Refuting Allegations:
Polycab has refuted the allegations of tax evasion leveled against them by the Income Tax department.
They called the claims as “premature and speculative” and asserted that they have consistently complied with all relevant tax laws.
They also clarified that they haven’t yet received any official communication from the Income Tax department regarding the outcome of the search.
Further Clarification and Action:
Polycab management is awaiting the final assessment by the Income Tax department and will address any potential liabilities accordingly.
They acknowledged the concerns of investors and promised to provide further clarification as the investigation progresses.
The company board meeting scheduled for January 18th is expected to address the issue and potentially announce further actions or information.
The Latest Blance Sheet
The latest balance sheet for Polycab India Limited would be the one included in their upcoming half-yearly financial statements for FY2024 as the full fiscal year hasn’t concluded yet. As of today, January 12, 2024, the latest publicly available financial statements are the Condensed Financial Statements for the second quarter of FY2024 (Q2 FY2024).
These condensed statements don’t contain the full balance sheet breakdown, but they do provide some key highlights relevant to the balance sheet, like:
Total assets: As of September 30, 2023 (end of Q2 FY2024), Polycab’s total assets were ₹63,393 million, compared to ₹49,175 million at the end of March 31, 2023 (end of Q1 FY2024).
Current liabilities: Current liabilities stood at ₹27,532 million as of September 30, 2023, compared to ₹22,514 million at the end of Q1 FY2024.
Net current assets: Net current assets, calculated as the difference between current assets and current liabilities, were ₹35,861 million as of September 30, 2023, compared to ₹26,661 million at the end of Q1 FY2024.
Keep in mind that these are just highlights, and the full balance sheet with detailed breakdowns will be available once Polycab releases their half-yearly financial statements for FY2024, which is typically around February or March.
Here are some ways you can access the full balance sheet when it becomes available:
Visit Polycab’s investor relations website
Check financial databases like BSE India or NSE India.
Follow news articles or press releases from Polycab announcing the release of their financial statements.