I completely agree with you. They are not very transparent on this topic.
1)First of all they are mixing the names of KPIT and Sentient labs every where which gives the wrong feeling to every one that both are same companies. But there is not even a single sentence written about this incubation, royalty etc in the annual reports, which is really bad. I checked the past 3 years report. The only thing mentioned is about the related party transaction, that too under Reimbursement of expenses. Reimbursement of expenses means Sentient Labs incurred some expenses from KPIT which is being reimbursed. This is completely wrong I believe. It should be the other way around. If it is funding as an incubator then it should be mentioned like that. Also the amount is increasing every year. In FY21 it was around 9 crore which increased to 19 crore in FY22. How much it will be in FY23? We only heard about royalty in the media. Why it is not written anywhere? What percentage is the royalty no one knows.
- Secondly incubating a startup is ok. But funding a startup which is owned by the same management is not really good. Why didn’t they make it as a subsidiary or associate company for now which they can sell off later if they dont want to work on this technology further. Then every one will get the benefits. Currently they are using the resources and money of KPIT. But they want to keep it as a separate company.
Hope they will give a clear answer to this.
| Subscribe To Our Free Newsletter |
