Thanks for posting the article, I was more interested in knowing some red flags of the company. Found some there and deduced some more from AR, especially regarding similar companies of director and his family members.
- Agrawal Associate (the director’s other company) – Disclosed in related party transaction, did sale and purchase of material in tune of 30/40 Lakhs, which looks fine. Only concern is the payment being made for service which is close to 30Lakhs, need to know what kind of service they are getting from them.
- Ashinishi Marketing & Engg. co. : This is promoters brother company, again in the same business, but here looks like more sale (in tune of 26 lakhs) have happened, and few thousands rupees are paid for services.
Seeing the previous AR confirms this trend, the business looks clean may be the service payment needs to be queried.
Incidentally, all these companies are based out of Dabhoi Road, Vadodara area.
If someone here is from that area, they can confirm whether these are separate plants or sharing/working through same premises.
Going by the other details and prompt disclosure of the transaction on arms length basis, my original thesis of management being clean still holds good.
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