@varadharajan
Partially about high margin, nothing per se mentioned in AGM expect of superior input mix in favour of low cost polyester replacing high cost nylone, some light is thrown in page 10 of Annual report FY15. In point (iii) about R&D, the company did covered about high speed muller machines. I enclosing link of annual report
http://www.premcoglobal.com/reports/PREMCO-GLOBAL-LTD-ANNUAL-REPORT-2015.pdf

Relevant extract is as under
(iii) in case of imported technology (imported during the last three years reckoned from the beginning
of the financial year)-
(a) The details of technology imported High speed Muller machines – This is the best technology available for weaving elastic tapes. The company has imported 2 Muller machines which can weave wider width tapes replacing old looms. The company had also imported higher hook J/Q machines to weave wider J/Q designs where the market is improving. These J/Q s will manufacture mostly high value added items.
(b) Above said Technology was imported during the current financial year ie. 2014-2015.
(c) whether the technology been fully absorbed Technology has been fully absorbed and company has replaced “rubber warp beam system” with individual package system resulting in higher utilization of covering machines. Also the machines were modified in house to give a bigger package (2kg instead of 1 kg) reducing wastages in warping and increasing the productivity in covering. The company has replaced one rubber warping machine with a high speed machine which runs at almost double the speed which has resulted in reduction in employment and The company has also started replacing 6 head looms with 10 head looms resulting higher productivity / Production value.

Also, export realisation are better for the company as compared with domestic realisation + export benefits. Hence, we shall also compared extent of exports between competitor (mostly comparable being SPICA).

@saras
The first in note partially provide management view point on qualification which should not have taken place at the first place. But that was explanation, CFO provided in AGM. Upto each of us, how we interpret that.

The CS is now appointed. You are correct that one CS left in 8 days as mentioned in AR. Personally, I may contribute it to be not comfortable with new role and set-up. The New CS HARSHA KAUR AJIT SINGH HOTSINGHANI has joined from June 22, 2015 and currently continue to be with the company which is more than 2 months so to say

AGM on 2nd Sep & was addr by Mr. Vayu Garware CMD.Highlights by Capital Mkt
Newer Geographies, more and innovative products, more sale of high value added products, higher exports etc were the main reasons for around 14% growth in sales and about 61% growth in PAT for FY’15.
Based on user industry, broadly Company’s business is divided into various segments such as Fishing, Aquaculture, Agriculture, Geosynthetics, Sports, Coates fabrics, Ropes etc. Fishing is more of traditional business which is about 20% of total turnover, Aquaculture constitute about 15-20%, Agriculture about 15-20%, Ropes about 13%, Sports about 10%, Geosynthetics about 7% and rest would be from various other segments.
Company launched several solutions in Acquaculture industry, which was well received by the markets and particularly in exports. Management expects the segment to continue to do well in FY’16 as well.Exports now account for about 49% of total sales and grew by about 13% YoY in FY’15. Management expects export to hover around 50-55% of total turnover. Company exports to more than 75 countries. North America, Europe and Australia are the major markets.There was a forex gain of around Rs 1.35 crore for FY’15 as compared to forex gain of around Rs 6.75 crore in FY’14
Geosynthetis is probably the only segment which did not pick up well, as compared to other sectors, given slower reforms and not much infrastructure activity going around.The company has sufficient capacities with latest technology to meet the increasing demand in Pune, Wai and in Silvassa.On defense side, the company is present in a very small way in the form of weather proof enclosures.The value added businesses like Aquaculture, Agriculture, Sports etc are growing very well for the company, while the traditional businesses of fishing is more or less steady.Sports, which is around 10% of net sales is growing strongly. Lot of export market opportunities await in this segment.
The prices of major raw materials, both PP and HDPE were lower on YoY basis. Company either imports them or procures from RIL or other local players. While generally the lower raw material costs is a pass through, the company is able to retain some benefits in value added products..Margins in the new business remain high. Management is confident of sustaining the margins of around 11% as reported in Q1 FY’16.
Overall, the company aims to clock turnover of about Rs 950 crore by FY’16 with Agriculture, Aquaculture and Sports being main drivers of growth with higher operating margins.

one concern I have is inordinate amount of debt – Rs. 175 Cr. in total as per AR – the company can barely service its interest on the loan with the present cash flows – interest cover is barely 1.5. In such a turbulent global environment, having 150 days receivables with forex volatility and such debt and pledged shares amplifies the risks

I really like the path the company is taking but at CMP, I think a slight dip in sales can be catastrophic and can induce pledged share selling.

Request you to think over it.

Almost all the companies which are hidden gems and almost all which have been doscovered through Valupickr will fail the test of Point 1 and Point 2

Probably thats why investing is an art and not a science.

Very nice presentation @leon_lph. Thank you for sharing.