Wrt investments, following has been the trend:
(2018 investments is including 45Cr of property investment i.e 107Cr + 45Cr)
As per the management, the non-current investments is the quarters they have been building for the employees. Eventhough it is meant as quarters, it is built as proper residential 1-2 bedroom flats. The company is only in Maharashtra and the chances of getting licenses in other states is nil. There are uncertainties, if the changing governmnts bring an alcohol ban, the company needs a back up, and this investments in flats will server the purpose at any such adverse time.
There are around 170 employees. So if i consider around 1Cr to such a flat in that location, it amounts up to 150Crs. In 2018, they moved part of this to property investments due to the LTCG tax.
He said the quarters has been almost complete so from next year onwards they will start giving back more dividends to the shareholders.
Couple of questions arise in my mind:
- Is this investments and quarters real? Can anyone in nearby locations verify this. I could not connect to any body who can give info on this.
- If it is real and there is such a quarters so on, has the management really spent this much amount - 150Cr - this is almost 50% of the BS - in building it? Could this be a vehicle to channel funds off?
Appreciate more info on this.