Income Tax search under way at certain offices; company says operations not impacted

The Company has told BSE that the Income Tax Department initiated a search proceeding on the morning of October 07, 2026 at certain offices of the Company.

Wed 7 Oct 2026

Search Initiation Date

morning of October 07, 2026

Search Status

The search is ongoing as on the date of the letter

Findings / Demand Communicated

not received any communication setting out any finding, demand or alleged contravention

What the Company told the exchange

The Company has informed BSE that the Income Tax Department initiated a search proceeding under the provisions of the Income Tax Act, 2025, on the morning of October 07, 2026, at certain offices of the Company. The search is ongoing as on the date of the letter.

The letter responds to a BSE email dated October 07, 2026 seeking clarification on a news item that appeared on cnbctv18.com dated 07th October, 2026, and on the movement in the Company's equity shares on October 07, 2026. The news item, as quoted in the letter, was captioned "Prime Focus shares tank 8% after Income Tax raids at Mumbai offices: Exclusive".

What the Company states about the search

• As on the date of the letter, the Company has not received any communication from the Income Tax Department setting out any finding, demand or alleged contravention.
• The Company states it is not in a position to comment on, and does not wish to speculate on, the other matters reported in the news item, including the stated subject matter of the search.
• The Company has reached out to officials of the Income-tax department seeking necessary information.
• The Company says it is fully co-operating with the officials and providing the information, documentation and clarifications sought by them.

What the Company states about operations and disclosures

• The business operations of the Company continue as usual and were not impacted due to the search.
• The Company will update the stock exchanges and disclose any further material developments in this regard in accordance with applicable laws.
• On whether negotiations were taking place: the news item does not relate to any negotiation, transaction or arrangement involving the Company, so that query is stated to be not applicable.
• On information not announced to the exchanges: other than the search disclosed in this letter, the Company says it is not aware of any information not announced to the exchanges that could explain the movement in its equity shares, and that the price of its equity shares is determined by market forces, over which it has no control.
• On regulatory or legal proceedings: the search is ongoing and no outcome has been communicated to the Company.
• On the reason for not disclosing earlier: the search commenced only on the morning of October 07, 2026, and the Company was in the process of collating the requisite details when the news item was published and the BSE email was received.

How to read this

• This is a company confirmation of an Income Tax search at certain of its offices, which was already the subject of a news report.
• The letter uses the word "search" for the proceeding; the referenced news item used the word "raids".
• The Company's stated position is that no finding, demand or alleged contravention has been communicated to it, and that no outcome has been communicated as the search is ongoing.
• The only figure the Company links to share price movement is in the quoted news headline, which cites a fall of 8%; the Company states the share price is determined by market forces and that it is not aware of any undisclosed information that could explain the movement.

The letter is signed by Parina Shah, Company Secretary, for Prime Focus Limited, and is dated October 07, 2026.

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