Is Exide Industries Facing an Income Tax Survey and Postponing Q2 Results?
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Synopsis
Exide Industries is currently undergoing an Income Tax survey at its various facilities, raising concerns about its financial reporting. The battery maker reassures stakeholders of its cooperation with authorities and has postponed its Q2 results announcement. Investors watch closely as share prices fluctuate amidst these developments.
Key Takeaways
- Income Tax survey initiated at Exide Industries.
- Company assures full cooperation with authorities.
- Postponement of Q2 results announcement.
- No significant operational impact reported.
- Share prices fluctuate amid news.
Mumbai, Oct 30 (NationPress) The Income Tax Department has initiated a survey at the offices and manufacturing facilities of Exide Industries, the renowned battery manufacturer, as disclosed in a statement on Thursday.
The company affirmed its full cooperation with the authorities and emphasized that the survey has not adversely affected its business operations.
“We hereby inform you that the Income Tax Department is conducting a survey at the Company's offices and manufacturing units in India since October 29,” stated the Kolkata-based firm in a regulatory filing.
“The proceedings are ongoing, and the Company is providing full cooperation to the department,” it added.
Originally slated to release its second-quarter financial results on Thursday, Exide has postponed the board meeting, indicating that a new date will be announced shortly.
“At this time, there is no material impact on the Company's business operations due to this action,” Exide stated.
The battery manufacturer further noted, “Should there be any additional material updates that necessitate notification under the SEBI Listing Regulations, the Company will make the required disclosures in compliance with regulatory guidelines.”
“The Company will communicate the revised date for the Board meeting in due course,” it mentioned.
Following this news, shares of Exide Industries dropped by as much as 1.8 percent during the intraday session but later regained some ground, closing at Rs 383.20, down by Rs 1.40 or 0.36 percent on the National Stock Exchange (NSE).
Over the last five days, shares have fallen by Rs 7.40 or 1.89 percent, and have declined by Rs 7.55 or 1.93 percent over the past month. However, they have risen by Rs 31.45 or 8.94 percent in the last six months.
Year-to-date (YTD), shares are up by Rs 38.15 or 9.05 percent, but in the past year, investors have experienced a negative return of Rs 82.05 or 17.64 percent.
Point of View
The ongoing Income Tax survey at Exide Industries raises questions about compliance and transparency in corporate governance. While the company assures no significant operational impact, stakeholders and investors must remain vigilant as developments unfold. NationPress emphasizes the importance of maintaining trust and clarity in such situations.
NationPress
01/11/2025
Frequently Asked Questions
What is the reason for the Income Tax survey at Exide Industries?
The Income Tax Department is conducting a survey to ensure compliance with tax regulations and assess the company's financial dealings.
How has Exide Industries responded to the survey?
Exide Industries has stated that it is fully cooperating with the authorities and that the survey has not had a significant impact on its business operations.
When will Exide Industries announce its postponed Q2 results?
Exide Industries has indicated that it will announce a new date for the board meeting to discuss Q2 results in due course.
What has been the market reaction to the Income Tax survey?
Following the news of the survey, Exide Industries' shares fell by up to 1.8 percent during intraday trading but later recovered some losses.
What are the recent trends in Exide Industries' stock performance?
Exide Industries' shares have seen fluctuations, with a slight decline over the past month, but an overall increase over the past six months.
