POKARNA LTD ( Stock opportunities )

Hi @sachit, Thanks for bringing those points.Admire your attention to every single detail in AR.Those are valid concerns but dont have an answer.These are circumstantial evidence and one needs to take a judgmental call. However if we look at even well run companies in India,there are lots of examples of promoters paying themselves hefty salary.
Some recent examples are given below:

1.Sun TV ( Rs. 60 crores for Maran and another Rs.60 crores for his wife Kaveri on a profit of Rs.700 crores.

2.Apollo Tyres ( Rs.30 crores on a profit of Rs.300 crores for Onkar S Kanwar)

3.Amararaja Batteries: (Rs.30 crores for Jaydev Galla on a profit of Rs.420 crores)

http://www.rediff.com/money/report/pix-special-indias-10-highest-paid-ceos/20140910.htm

Your second point is most important and am stumped by your close attention to the balance sheet notes.I was looking into receivables to sales and Inventories to Sales and never paid attention to current Liabilites closer.Thanks again for bringing those here:

AR 2015 page 128 mentiosn about this:
15. Payables include to Pokarna Fabrics Limited Rs. 5085.48 Lakhs (previous year Rs. 4768.88 Lakhs),
Pokarna Marketing Limited Rs. 1213.32 Lakhs (previous year Rs. 1138.05 Lakhs),
Pokarna Fashions Limited Rs 35.00 Lakhs (previous year Rs. 35.00 Lakhs),
Southend Extension Rs. 3.66 Lakhs (previous year Rs. 14.40 Lakhs),
Gautam Chand Jain Rs. 1587.68 Lakhs (previous year Rs. 1949.45 Lakhs),
Rahul Jain Rs. 1022.28 Lakhs (previous year Rs. 918.25 Lakhs),
Prakash Chand Jain Rs. 1260.95 Lakhs (previous year Rs. 987.50 Lakhs),
Rekha Jain Rs. Nil Lakhs (previous year Rs. 14.37 Lakhs),
Nidhi Jain Rs. Nil Lakhs (previous year Rs. 5.43 Lakhs),
Apurva Jain Rs. Nil Lakhs (previous year Rs. 5.43 Lakhs),
Arrush CreationsRs. 6.78 Lakhs (previous year Rs. 32.58 Lakhs),
Southend Rs. 0.03 Lakhs (previous year Rs. Nil Lakhs),
Karvy Computer Share Private Limited Rs. 0.25 Lakhs (previous year Rs. Nil Lakhs)

I was thinking the management will reduce the long-term bank loans using the cash flows of the next few years given that there is no CAPEX needed.

Now,this payables are concerning me as well.When i call their Investor relations,I will ask them about this.

Please bring in more such blind spots that we obviously miss.Do you see any other loopholes in the story?

-Sambath.