In a recent development, the Goa Bench of Bombay High Court has imposed a restriction on tax authorities from delivering a final verdict on a substantial Rs 16,195-crore Goods and Services Tax (GST) notice issued to Delta Corp Ltd and its subsidiaries. This comes as a follow-up to the previous notices received by these entities for a significant Rs 23,000-crore tax shortfall.
The court specifically ordered the Directorate General of GST Intelligence, based in Hyderabad, to refrain from passing any final orders without its explicit consent. The companies, represented by senior advocate Harish Salve, filed writ petitions on Monday and are expected to respond by December 15, 2023.
The case is scheduled to be heard in court on February 5, 2024. As it stands, the situation leaves Delta Corp and its subsidiaries in a state of uncertainty as they await the court's final decision on the hefty GST notice.
Delta Corp Ltd, a prominent player in the Hotels, Restaurants and leisure industry, is currently facing a challenging period. According to InvestingPro data, the company's adjusted market cap stands at 25.36M USD, with a negative P/E ratio of -6.18. The company's price has fallen significantly over the last three months, and it's trading near its 52-week low, as per InvestingPro Tips.
The company's financial health, however, shows some positive signs. Delta Corp holds more cash than debt on its balance sheet and has maintained dividend payments for 20 consecutive years, which are notable achievements for any company, as per InvestingPro Tips. Furthermore, the company's liquid assets exceed short-term obligations, which is a comforting factor during these uncertain times.
The next earnings date for Delta Corp is November 29, 2023, and the InvestingPro Fair Value is currently pegged at 0.3 USD. The company's return on assets for Q2 of 2023 was reported at -17.19%, and the EBITDA growth was at -41.74%. These figures, along with the ongoing court case, will undoubtedly play a significant role in shaping the company's future trajectory.
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