Himachal Pradesh state tax department officials visited Adani Wilmar facility in Parvanoo, Shimla late Wednesday, 8 February. The Parwanoo South Zone Enforcement wing of Himachal Excise and Taxation Department inspected the stocks of Adani Wilmar. It was a routine inspection of stock, officials of the excise and tax, the department told the PTI. Adani Wilmar, engaged in warehousing of Kirana (grocery items), also provides goods to the civil supplies department and police department in the state. It has recorded a business of Rs 135 crore last year. The company’s entire GST input was adjusted through tax credit but no payment was made in cash, the excise department told the news agency. Adani Wilmar shares jumped 5% to hit upper circuit at Rs 439 apiece on NSE.
One of Adani Wilmar’s depot warehouse at Parwanoo, Himachal Pradesh was visited by GST officials yesterday evening. The officials did not find any irregularities in the operations and dealings conducted by the company,” the company said in a statement. “We would like to clarify that the concerns specific to GST payments in cash, citing GST law under Rule 86B, the company is not required to pay tax liability in cash. We would like to emphasise that this was a routine inspection carried out by the relevant authorities and there was no raid as previously stated or reported in the media,” Adani Wilmar Spokesperson said.
Adani Wilmar Q3 net profit jumps 16%
Adani Group has in total of seven functioning companies in Himachal Pradesh ranging from cold stores for fruits to grocery items supply. Adani Wilmar, which sells its cooking oils and other food products under the Fortune brand, is a 50:50 joint venture between business conglomerate Adani Group and Singapore-based Wilmar. The company reported its December-quarter results on 8 February with a 16% increase in its consolidated profit to Rs 246.16 crore. Its consolidated revenue from operations grew 7% on-year to Rs 15,438 crore.
Adani group companies under scrutiny
The Gautam Adani-led Adani Group and its companies have come under special scrutiny following US-based short seller Hindenburg Research’s report alleging fraud. From Indian boruses to the international indices, and market regulator to banking regulator, many have taken note of the allegations which led to $120 billion rout in Adani group comapnies’ market value in less than seven days. After reassurance from Gautam Adani several times in the last few days Adani Group stocks have seen some recovery in the last two sessions.