Two more observations here although minor in nature:
Take a look at one of the entries in ECL Finance:
This got matured last year may and was not present in this year’s debentures and bonds but if you look below:
The company acquired debentures in the same company at significantly higher coupon (300 bps). On the face of it this looks like evergreening but may be management can have some explanation.
Another thing relative small but where MTM should have happened Edelweiss investment in Catholic Syrian Bank (CSB). Edelweiss bought 4% of CSB around 19 lac shares around 2010. This investment has been carried on the books of different subsidiaries of Edelweiss at Rs 225 a piece. In my opinion there is a case for significant diminution in value. CSB made a rights issue in 2015 at Rs 75. It was followed by dilution at Rs 120 and the book value at the end of FY18 was 105, now most recently a stake sale has happened at Rs 140 to Fairfax,
CSB investment was present in the books of Edelweiss Finance and investment last year not sure where it has been moved to this year.
