Hi Diffsoft,

How to identify vendor over invoicing ?. please educate me. wish to learn.

The same i heard in Ester ind, they are doing OI.

Thanks,
Mahesh

Thanks for the correction on the wages front. Had a quick look and got the decimals wrong. I will edit my post to delete this section.

I have some personal experience in the commercial property in Chandigarh/ Panchkula and can confirm the situation is really bad. This technology park is in the new section of Panchkula beyond the Ghaggar river which is some way out of town. However, this group has been in the real estate business for some time and they might be able to swing some lease rentals, but that remains to be seen.

Yes they are still doing real estate development under the Amravati banner. But to be fair to them, they have completely disclosed the relationship in the related party section.

On the office consolidation front, their main office is in Sec 17 Chd which is unlikely to be relocated. They also seem to have some office in the Panchkula industrial area along with their factory. Yes I agree that some of it can be consolidated. My point is that the BPO business doesn’t look like a serious venture that they are trying to pursue. This group has only done laminates and real estate till date.

Hi,

Any investors in VLS Finance ltd?

Its AGM is on 24 Sept in New Delhi – I plan to attend the same.

Main issue from my perspective is why Q1 results were so bad when Rs. 40 crores of Relaxo shares were sold. If Rs. 40 crore profits can be siphoned off in 1 quarter, then Rs 900 crore of investments too can be similarly siphoned off in next 1-3 years.

Fellow members please send your questions – I can try to seek answers in AGM. Please also let me know if any fellow member plans to join in.

Note – Needless to mention I am an investor.
PS – AGM of relaxo footwears is also on same date and same venue (main value driver of VLS Finance).

@hitesh2710 bhai, How do you compare Torrent with Ajanta, given that you have studied both the companies and understand their business better than most other people? I have small position in both Torrent and Ajanta and trying to figure out how to build on these positions now that both are in the same price range, but Torrent seems to be attractive on valuation front while Ajanta looks to have had a better business model.

Hi Piyush,

Very good info you have provided. But one thing i would like to rectify. Total Employee Benefits Expense are Rs. 13,21,54,927 i.e.Rs 13 Crores not Rs 1.32 Crores. And the amount taken by Promoter/Directors + CS is 1.36 Cr. This is nearly 10% of total Employees cost. This is normal in case of SME business.

As far as the Panchcula Plot is concerned, this is given in Annual Report

“To put all the inventiveness measures under one roof, this includes development of new designs,
finding of new vendors, to study product dynamics and to explore market for export and domestic
business; at their separate location at Panchkula Technology Park, Haryana. The construction of
building having built-up areas of 20697.200 sq. mtrs is almost complete. The company has planned to
lease out portion of constructed building to other players for commercial office space and for service
sector businesses. The building will be operational before the close of this financial year.”

It seems like they had bought plot in Good Times and got stuck with it. Now they are trying to construct
& lease it. Also will move their operations to that instead of their current office.

Generally the office space scenario is not as bad in real estate as compared to residential one. If they are able to lease out some good chunk of it then it would clearly add to bottom line as the plot cost has aleardy been paid couple of years ago and accounted for.

On the other hand if they had not done some construction, then the plot would have been seized by Developement Authority for non compliance. That would have been a big lose for them.
It seems that they were caught in Catch22 situation and this was the only way forward for them

Interesting to know about their real estate Activites of Amravati developers. Are they still doing it?
If they are, then this is a red flag and we need to be aware of. If you get any more info please update.

Disclosure : Invested