https://www.equitybulls.com/category.php?id=351505
With more than 20% of revenue flowing to Radiant Protection Force (RPF), a related party, the group has now sought for corporate loan exposure as well. Point of concern is RPF has ~95% or more revenue from the sale of contracts to RCMS.
Also while the founder does not draw excessive salary from RCMS, they do have a high salary drawn from RPF. RPF does not have any major fixed assets and hence probably only labor contracts are with RPF which could be moved to RCMS and the related party nature stopped. RPF also has vehicle loans (one of them for a Lamborghini Urus) while RCMS does not.
Plus all other group companies are marginally profitable with major operations appearing to be human resource management rather than any particular moat.
All in all the related party nature with promoters presence on the audit and compensation board leads to think that the corporate governance may be an issue.
Plus business due diligence points towards increasing competitive nature with big capital players vs RCMS.
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