Q3 results are out. Apart from the numbers, there are some interesting things to note called out by the auditor:
- Results are not audited for 4 subsidiaries. (I don’t if this is common for other companies, please advise)
- Holding company has not carried out impairment assessment of one of the ENA plants as required by Ind AS 36 though there is an indication of impairment! (Further note that managements expects to restart this plant and there is no impairment expected as per management)
- For one of the subsidiary, Prag distillery there are unsecured overdues trade receivables of 5.8 cr and deposits of 1.8 cr which are long overdue (for 3 years) and doubtful of recovery. Management has not considered any provision for these. (Further note that management believe it will be recovered)
- There is a note about a subsidiary PunjabExpo breweries that it has accumulated 54cr of loss and its ability to continue operations. Similar comment for another subsidiary named Prag with losses of 99 cr and doubts about continued operations. But their financial statements have been prepared (I am not sure if this has any impact on the balance sheet or what the implication of this is. Please advise)
With regards to this quarters’ result, growth is along the expected lines and there is good EPS growth if adjusted for one time exceptional income in Q ended Dec 22. However there is quite large other income of 8 cr. Company still is not paying tax, so PE looks optically lower.
Disclosure: Recently exited due to frequency of resignations and news of IT raid on top.
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