To understand their business model, lets split the standalone and consolidated business. The standalone business manufactures nonwoven fabrics, supplies 25% to the domestic markets and exports the rest to US and Europe. This it does thru 2 mfg facilities based in Daman, one its own with 5000 MTPA of spunbond fabric and another facility on lease with 2500 MTPA of spunbond fabric. With a net block of Rs. 84 crs (as reflected in their latest AR), I am not sure what you meant by saying they don’t have any fixed assets. At their existing facility at Daman, they have also added a new line of meltblown fabric of 3000 MTPA, at a capex of ~Rs. 45 crs. Now, their 100% subsidiary has been set up in Dubai only for trading purposes. Why this route? So that the brand ‘Fiberweb’ is not diluted. While the parent co, Fiberweb India, manufactures high quality fabrics and supplies to international clientele, the subsidiary (Sheth NonWoven Trading FZE) procures lower quality fabrics from China and supplies to its clientele (who also demand such quality for other commoditised applications). That also explains why incremental inventories are not added via the subsidiary. Dubai is a tax free zone and hence this profit wont be taxed unless untill repatriated (to the best of my understanding).