Zydus Wellness Limited — Others, 19-11-2024: Action(s) initiated or orders passed

Heinz India Private Limited, now merged with Zydus Wellness Products Limited, has received an Appeal Order from the Patiala Division’s Deputy Commissioner regarding a ₹ 116.14 million tax short payment, including a ₹ 63.22 million penalty, for FY 2011-12 to 2014-15 under the Punjab VAT Act. ZWPL believes they have a strong case and are assessing options to contest the demand, including a potential Tribunal Appeal. Crucially, the liability pertains to a pre-acquisition period, which Heinz Italia S.P.A. will indemnify. This development is expected to have a neutral impact on Zydus’s financials. Investors may view the situation with a positive outlook, given the company’s strategy to challenge the demand.