Indian terrain—play on consumption

Points to ponder –

1. What’s the point of purchasing Rs. 16 crore property and saving Rs. 1.8 crores in rentals and making additional Rs. 1.8 crore expense as interest cost. Interest considered at 11.25%. (Management made it clear that property purchase wont be done from QIP funds, but from internal accruals and borrowed funds). Not sure but the move seems to help sinking Celebrity fashions, not at all good move for Indian Terrain.

2. If this move was planned, why did they repay long term debt of 16 crores in Feb-March?? Again taking Rs. 16 crore fresh loan would involve 1.5% expense (processing fee, mortgage charges, pledge charges, legal documentation, valuation etc.)

3. What are companies future plans to use the unused Rs. 60 crores of QIP funds??