Provision anyways hits PL before coming to Balance Sheet. Try passing a JE for inventory hit without routing through PL.

Also this kind of expense would have shown in the margins or the exceptional items in PL.

ashwini

thanks - the way I thought about it was such short term provisions are also created for issues related to product liabilities - eg., warranty claims, deficiency in quality. Given that I know for a fact that there have been a few issues, is it possible that they created a provision which they will flow into the P & L whenever approrpriate (when litigation is complete or negotiation is done), so could it be a few containers of shrimps which are returned/of lower quality which will soon hit the PL.

your views would be enlightening.

IndiaNiveshSecuritiesLimited_MajescoLtd(MJCO)Q2FY16ResultUpdateNov_06_2015.pdf (300.1 KB)

Hello - Attaching Majeso report from India Nivesh. Target price 549. But India Nivesh forgot to subtract the share of Mastek Ltd. and of USA listed entity Majesco to arrive at the valuation of the India holding company Majesco valuation.
India's Majesco share is roughly 2/3rd so the target prices should be 549 *2/3 = ~ 366 rupees and not 549 rupees.
My two cents.

Awaiting comments

I have seen many a times that shareholders expect hefty dividends after a sale of business/land etc. But is it desirable? Asking because I am not competent to understand it.

If company has alternatives to build capacity in related or same business or they have capability to invest in business and make more money for us then I do not want one time dividend. If it is idle then I want it.

Thanks
Amol

@hrishikesh
Hi, Since you have done extensive work on the company, can you please clarify some doubts for me?
You have moved ahead in your projections by creating an expense schedule assuming 50% gross profit margins. However can you please make me understand how can we get that by the current expenses schedule shown in the annual report. There are two major head of expenses in the Income Statement for 2015 i.e Employee costs & Other expenses. The former is 88% of sales while the latter is 26% of sales. Now while checking the schedules out of 530 crores of employee expenses for 2015 500 crores is for salaries which i believe include the expenditure for R&D as well. However is their any way of finding out how much from this expenditure goes under the head R&D and how much is normal employee cost. Secondly, of the Other expenditure of 158 crores for FY 15 30% is travelling expenditure while business promotion is just 10% of the head. Now, i just want to understand that should i take the promoter's word on the numbers or is their any way by which we can validate the projections through the accounts as well. I am very new to this sector hence the query