@hrishikesh
Hi, Since you have done extensive work on the company, can you please clarify some doubts for me?
You have moved ahead in your projections by creating an expense schedule assuming 50% gross profit margins. However can you please make me understand how can we get that by the current expenses schedule shown in the annual report. There are two major head of expenses in the Income Statement for 2015 i.e Employee costs & Other expenses. The former is 88% of sales while the latter is 26% of sales. Now while checking the schedules out of 530 crores of employee expenses for 2015 500 crores is for salaries which i believe include the expenditure for R&D as well. However is their any way of finding out how much from this expenditure goes under the head R&D and how much is normal employee cost. Secondly, of the Other expenditure of 158 crores for FY 15 30% is travelling expenditure while business promotion is just 10% of the head. Now, i just want to understand that should i take the promoter’s word on the numbers or is their any way by which we can validate the projections through the accounts as well. I am very new to this sector hence the query
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