Is anyone tracking this company? Numbers looks too good to be true. They have almost Nil write-off over the last decade. RoEs during this period has been around 20-25%. Growth has been subdued but is now picking up due to branch expansion.
But I am still not sure about the corporate governance part, because:
a) They had Delliote as their auditor in 2018-20, but now switched to a regional auditor
b) Many related party transactions (Promotor takes 3-4cr salary on 17-18cr PAT)
c) Promotor group owns the office premises in Udaipur, and the company pays ~2cr as rent. (in comparison rents for all 60 branches will be 3-4cr)
d) Promotor family has another business: SRG Securities (Listed) SRG Insurance; Though there are no related party transactions between them.
The thing that worries me more is, that the promotor is taking away ~5-6cr from the business (in Salary & Rent) out ~18cr PAT (20-25%).
Disclosure: Tracking positions (~1% of portfolio)
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