You have captured all points very nicely.Just to add, they perform this write off (due to product return) every Quarter, however in Q2 40% of non cotton products were returned, so 55 Crs were written off against 22cr last year.
They are going to appoint one of the Big 4 as Auditors starting April 2016,mostly E&Y.
I was not comfortable with few points discussed during concall
1)Not yet finalized Dividend policy, they said they are focusing on sales and other tasks etc. but will form a policy soon -This is going on for a quite a while now
2)Guidance of 1.1 million production in August concall and cutting down the same to 0.9-1million – They give orders by June, so this should have been told in august itself.I could not understand their explanation of faulty batches/same cost etc.
3)One investor asked if there was an income tax raid 2-3 months back- Mithun chand strongly denied the same however is this a normal occurrence in conference calls[I have attended very few conference calls in my investing journey so this kind of query looked very strange to me]?
Disc – Invested at higher levels few months back
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