Uflex India shares fell 15% to Rs 366 on the BSE in Monday’s intraday trade, ranging its past four-day decay, amid reports of an Income Tax raid at the company’s various office sites. In a week, the stock has plunged 25%, as linked to a less than 1% decline in the S&P BSE Sensex, citing the lowest level since May 2021.

The Exchanges sought an explanation from Uflex on February 21, 2023, stating Income Tax department raided Uflex Ltd’s offices across various towns.

Meanwhile, the raids led by the Income Tax Department at more than 70 locations of Uflex Company sustained for the fourth day on Friday, news agency IANS stated.

Ten shell companies and brochures revealing suspicious transactions have been found. The officials trust that the figure of false transactions can go up to Rs 500 crore.

Uflex is India’s major multinational flexible wrapping and solutions firm. Uflex shaped a presence across all verticals of the packaging value shackle – Supple Packaging, Aseptic Liquid Packaging, Packaging Films, Engineering, Holography, Printing Cylinders, and Chemicals.

In Q3FY23, the company stated an Rs 85 crore loss after tax which was mainly due to an Rs 84 crore loss on account of money deflation by Egypt. In Q3FY22, Uflex chronicled a profit after tax of Rs 314 crore. During Q3, national foreign exchange losses due to currency deflation and fluctuations were collected to Rs 236 crore, which is unparalleled.

This quarter regarded currency depreciation for the second time in the calendar year 2022 by Egypt and an upsurge in interest rates originating from hostile US Fed policies, foremost to cross-currency fluctuations that obstructed the financials knowingly. Although notional, this loss’s magnitude from currency devaluation and variations is exceptional and has been unseen in the last years, Rajesh Bhatia, Group CFO, Uflex, said.