Hero MotoCorp slumped 7.08% to Rs 2,208.35 on reports that the Income-Tax Department is analysing around Rs 1,000 crore in expenses that are suspected to be bogus in the probe at the company.
According to the media reports, the Income Tax Department has found that Hero MotoCorp has booked bogus purchases, made huge unaccounted cash expenditures and obtained accommodation entries, aggregating to the tune of more than Rs 1000 crore.The Department has also found evidence of cash transactions of more than Rs 100 crore in the purchase of a farm house in Chhattarpur, Delhi.
Income Tax Department carried out a search and seizure operation on 23 March 2022 on Hero Motocorp and its chairman and managing director Pawan Munjal at multiple locations in Delhi NCR which concluded on 26 March 2022. The search operations covered more than 40 premises spread over different locations in Delhi NCR.
Following the media reports, Hero MotoCorp clarified to the stock exchanges today that it categorically denies the speculative press reports.
"The allegations made in the press report are not borne out of any document that have been served on us or our internal documents. Therefore, we categorically deny the speculative press reports," it said.
It further clarified that officials from the Income Tax department visited its offices in the previous week. The company said it extended full cooperation to the authorities and will continue to do so if required.
"As and when the tax department concludes its findings and communicates to us, we will inform the exchanges suitably," it added.
Hero MotoCorp is the world's largest manufacturer of motorcycles and scooters. On a consolidated basis, its net profit declined 30.95% to Rs 703.74 crore on 18.46% fall in net sales to Rs 8,013.08 crore in Q3 FY22 over Q3 FY21.
The stock hit a 52-week low of Rs 2,148 on 8 March 2022.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
