Great thread started. I have bought MT educare and dish tv in the correction. I feel these two companies do not have anything to do with the markets outside and fundamentally they are a domestic story...so i feel any correction in these two is worth taking a look at.

well, the nos. quoted above are from the section under related party transactions. Now related parties had extended loan to the company which remains outstanding even as on 31st march 2015. BTW I am no expert in accounting either.

@sumi00, Just a layman question.I am not very savvy in accounting,would be great if could explain it.

How does losses and loans outstanding to related parties become payables?

which charting software are you using? thanks.

Hi Sunil,

I just browsed through HMVL 2015 AR. Thanks for pointing out the discrepancy. I think it might be because a large chunk of their investments are in bond and treasury plans with maturity > 365 days (approximately > 50% of total). This are shown under fixed maturity plans. This leads them to account for income owing to accrual method but not recognise in cash flows until investments are redeemed.

Additionally it may also be possible that interest may be accrued on investments but not yet received in cash. This is similar to the case of liquid mutual funds that offer bonus units rather than investments. In these cases the holder gets higher and higher units of the liquid funds at the same NAV but no interest income can be recognised as per accounting standards until those units are sold. For instance, you started with invested in 100 units at a NAV of 10 (total 1000). At the end of the year, you get 8 bonus units (total 108). NAV is still 10 but total unrealised amount is 1080 (108 X 10). But as per accounting standards it may not be possible to recognise income of Rs 80 from these bonus units units they are sold. (This part is speculation at my end)

That being said the discrepancy does appear to be a bit steep but nothing I would be too worried about as of now.

Disc: Invested