I was reading an annual report of Avanti feed. I have noticed few red flag
• Srinivas Cystiner Ltd is one of the Promoter and holding 26.62% shareholding in Avanti Feeds. Kindly refer to Annual report 2015-2016 in related party transaction, Rs. 1.80 lakh per annum for the lease of office space has been taken from Avanti feeds by Srinivas Cystiner Ltd.
• Mr. Indra Kumar is also director with Srinivas Cystine Ltd which means he is running other business by misusing Avanti feeds funds
• Mr. Indra Kumar remuneration is 12.30 cr which is 7.78% of net profit ( 158cr) which is on the much higher side. For a moment we may ignore the higher salary considering the fact that he is the one played a major role in the turnaround of the company. Earning such a high salary which means he should concentrate 100% on this business, Kindly refer to below link, He is a director with more than 11 companies other than Avanti Feeds and associate company. His high remuneration in Avanti feed is not justified as he is more keen on other business.