Key Event Details
The Income Tax Department initiated search proceedings under the provisions of the Income Tax Act, 2025, on the morning of October 7, 2026, at certain offices of the company. The search was ongoing as of the date of this letter (October 7, 2026).
Current Status and Company Response
The company has not received any communication from the Income Tax Department setting out any findings, demands, or alleged contraventions. Prime Focus has reached out to officials of the Income Tax Department seeking necessary information regarding the search. The company is fully cooperating with officials and providing all necessary information, documentation, and clarifications as sought by them.
Business Impact
The business operations of the company continue as usual and were not impacted due to the search proceedings.
Response to Specific Exchange Queries
- (a) Negotiations: The news item does not relate to any negotiation, transaction, or arrangement involving the company, making this query not applicable.
- (b) Undisclosed Information: Other than the search proceeding disclosed in this letter, the company is not aware of any information not announced to stock exchanges that could explain the share price movement. The company attributes price movement to market forces beyond its control.
- (c) Regulatory/Legal Proceedings: The search is ongoing with no outcome communicated to the company.
- (d) Disclosure Timing: The search commenced on the morning of October 7, 2026, and the company was in the process of collating requisite details when the news item was published and the exchange email was received.
Future Commitments
The company will update stock exchanges and disclose any further material developments in accordance with applicable laws.