Dhruv consultancy (DCSL): a feasibility study – a path of stones or a smooth highway?

@joinjp2003 Nice write up!! I started reading about the company from 2-3 days and you summed up nicely. I also have some observations which needed clarity.

Yeah, this is very high and we need to keep monitoring this. In Annual report, it is mentioned that, there is a difference of INR 8.8 cr in Net current assets between stock statement and audited value. Company explained that the difference is due to not reporting assets (trade receivables and unbilled services) more than 90 days in stock statement. Trade receivables more than 90 days (actually this is more than 3 years) is ~ 3 cr. It means that unbilled revenue more than 90 days is ~ 5.8 cr, which is troubling me. Also, there is one line item “Excess billing to customer which is amounting to ~ 5.6 cr. Does this mean are there any disputes regarding the invoiced amount ?

Also, it is mentioned that trade receivables pertaining to contract balances is 8.8 cr. Then what are the remaining 9 cr pertaining to ?

Company in current year has approved the following with respect to related parties, which appears material considering the transaction size.

Also, professional and consultancy charges is ~50% of topline in FY2023 and FY2022. Is it common in these types of companies?

Another thing, company has business loan from NBFC of 0.68 cr @interest rate of 14-19%. Why company is taking loans from NBFCs at such high interest rates? Does this mean company not getting loans from commercial banks? If this is the case, then getting BG from Banks for long tenure would be really difficult. Need to understand how much limits company currently has and does it meets the requirements? Already BG outstanding of ~18 cr is there.

I think this is 6.3cr.

Disc: Not invested.