Here’s a breakdown of the detailed information and important points regarding the GST search operations conducted at Aditya Vision:
- Search Operations by GST Authorities:
- The Uttar Pradesh Goods and Services Tax (GST) authorities conducted search operations at the facilities of electronics retailer Aditya Vision in Uttar Pradesh.
- Seizure and Prohibition Orders:
- The authorities issued an order of seizure for seven temporary warehouses and an order of prohibition for three stores on April 8, 2024.
- Stock Performance:
- The stock of Aditya Vision was trading at around Rs 3,330 at 1 pm on April 9, which was 2.8 percent lower than its opening price.
- Company’s Response:
- Aditya Vision informed the stock exchanges that it fully cooperated with the authorities during the search operations and provided them with necessary information and support.
- However, the authorities issued an INS 2 (order of seizure) for the temporary warehouses and INS 3 (order of prohibition) for the stores late in the night of April 8.
- Impact and Response:
- The company stated that it follows ethical and law-abiding practices and is taking necessary steps against the actions taken by the GST department.
- It anticipated a limited financial impact due to the sale of three stores and blocking of stocks in seven temporary warehouses.
- Aditya Vision assured that it is taking all steps to normalize operations immediately and will keep the exchanges informed about any developments.
- Future Developments:
- The company mentioned that it will continue to update the exchanges about any further developments in this matter.
- Analyst Perspective:
- Emkay Global Financial, which has a ‘buy’ rating on the stock, highlighted Aditya Vision’s leadership share of over 50 percent in Bihar and Jharkhand.
- It mentioned the company’s expansion opportunities in six states of the Hindi Heartland and its ability to pursue growth despite challenges.
Overall, the company is addressing the situation transparently and is taking steps to mitigate any potential impacts on its operations and financials.
