vardha ji

increase in authorized share capital is the first sign of raising funds to fund working capital ? (eg : through debt) or any other plan they have for rise in auth capital.

even eros has ballooning receivables, as we knew recently news on eros.

Director Ravi kumar is taking pay of only 30Lakh Rs which is very modest for 20Year experience and he owns 8 lakh shares.
Ashok Atuluri took 1.4Cr salary in 2012 when they were in profits. 2013, 2014 he took only 30Lakh
Management looks to be honest and incentives are tightly coupled with performance.

Starting a new thread on a defence based micro cap Zen technologies

They basically prepare simulators in the defence sector primarily landbased as of now. Here are a set of links all should go
through:

1. Please go through this interview

http://www.moneycontrol.com/news/results-boardroom/to-develop-simulators-worth-rs-6k-crfuture-zen-tech_2625881.html

1. Please read through the future of the simulator industry in India

http://www.defproac.com/?p=820

1. Several videos on the simulator technlogies you will find in the media section on the company website.

Here are some viewpoints to kickstart the discussion.

1. The current sales is just around 80 crores.
2. The land based simulator potential over the next 4 to 5 years is more than 5000 crores.
3. The fastest growing section is in the aviation space. Zen is foraying into it with typing up with Rockwell Collins
   http://www.zentechnologies.com/news/Zen-Technologies-Rockwell-to-unveil-collaborative-effort-at-Aero-India-2015.php
4. The CMD indicated that they are at advanced stage of negotiations for a 500 crore order (5x of current turnover).
5. Huge operating leverage in play (Above 100 crores operating margins go up to 30 percent).
6. The CMD indicated they they could make a stake sale of 24 percent to strenghthen their products especially in the aviation space.
7. The make in india push and defence offset clauses have made a sea change on the environment in the defence industry.

I think no one's looking at the ballooning receivables - the company now has Rs. 35 Cr. of receivables outstanding - up from Rs. 25 Cr. last yoy.No wonder the company authorized an increase in authorized share capital

Look at operating cash flows - all of the profits go back into inventory of FG that they maintain at customer's end. I am not sure if this is healthy in the long run. This is reflecting in the increasing WC debt too whch is up 25 % or so.

Yes very well explained by Raj

motherson sumi is B2B business.

It has business in over 80 countries and is the leading suppliers as OEM to all major automobile companies of the world.

Though it's profit margins are less but this company is generating ROCE of 30-40% consistently over last 10 years.

Currently it has been beaten down by the Volksvagen issue.

Disc : Invested