Hi Piyush,
Very good info you have provided. But one thing i would like to rectify. Total Employee Benefits Expense are Rs. 13,21,54,927 i.e.Rs 13 Crores not Rs 1.32 Crores. And the amount taken by Promoter/Directors + CS is 1.36 Cr. This is nearly 10% of total Employees cost. This is normal in case of SME business.
As far as the Panchcula Plot is concerned, this is given in Annual Report
“To put all the inventiveness measures under one roof, this includes development of new designs,
finding of new vendors, to study product dynamics and to explore market for export and domestic
business; at their separate location at Panchkula Technology Park, Haryana. The construction of
building having built-up areas of 20697.200 sq. mtrs is almost complete. The company has planned to
lease out portion of constructed building to other players for commercial office space and for service
sector businesses. The building will be operational before the close of this financial year.”
It seems like they had bought plot in Good Times and got stuck with it. Now they are trying to construct
& lease it. Also will move their operations to that instead of their current office.
Generally the office space scenario is not as bad in real estate as compared to residential one. If they are able to lease out some good chunk of it then it would clearly add to bottom line as the plot cost has aleardy been paid couple of years ago and accounted for.
On the other hand if they had not done some construction, then the plot would have been seized by Developement Authority for non compliance. That would have been a big lose for them.
It seems that they were caught in Catch22 situation and this was the only way forward for them
Interesting to know about their real estate Activites of Amravati developers. Are they still doing it?
If they are, then this is a red flag and we need to be aware of. If you get any more info please update.
Disclosure : Invested
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