New Delhi, 2nd August 2023: Whirlpool of India Limited announced that the Directorate of Revenue Intelligence (DRI) searched its units in Gurugram and Puducherry in connection with a probable misrepresentation of the HSN Code of one of the components of a specific type of washing machine.
In a regulatory statement on Wednesday, the company stated that the searches were carried out in accordance with Section 105 of the Customs Act of 1962.
Whirlpool of India shares were trading at Rs 1,452.70, down 0.42 percent, at 2 p.m.
The HSN code is a 6-digit universal code that classifies over 5000 items and is recognised globally. The World Customs Organisation (WCO) created it, and it went into operation in 1988.
The company said in a regulatory filing, “We have limited information at this time but our preliminary understanding is that the issue is of limited financial materiality.”
It should be noted that the Centre levies an 18% GST on domestic or laundry-type washing machines, including those that wash and dry. Prior to this, it was in the 28% range.
Whirlpool of India is a subsidiary of the Whirlpool Corporation of the United States, and its product line includes everything from washing machines and refrigerators to air conditioners and kitchen equipment. The company operates three manufacturing plants in Faridabad, Puducherry, and Pune.
Whirlpool of India reported a 24.5% reduction in consolidated net profit in Q4 FY23 due to subdued growth in the entry-level market, particularly in refrigerators and air conditioners.
The company recorded revenue from operations of Rs 1672.65 crore, a 2% decrease from the previous quarter’s sales of Rs 1,706.91 crore.
The company’s overall expenses for the quarter ended March 2023 were Rs 1,624.89 crore, compared to Rs 1,607.47 in the same quarter of FY22. Its EPS was Rs 4.94 in Q4FY23, down from Rs 6.61 in the previous quarter.
