Exactly @sinha124! I was not writing as I didn’t want to be seen defending the company but I’m surprised to see these issues being pushed on several places after the fall in stock price while most of these concerns have been out there well from before and most of the serious investors I know are aware of these and much more and have tried their best to find answers by attending the AGMs and doing homework. I’m not comfortable or 100% sure with all the responses yet continue to appreciate the remarkable work the company has done. One needs to attend the AGM of the company and see the huge and fantastic setup the company has created, the high quality work environment being provided, one of the best global names as customers and giving awards to the company. Plus if you go locally and speak to people, this guy has done substantial amount of CSR work in his local area and really helped people and spent money from his pocket. If one is interested then he should go through the entire thread once again and try to read the positive points also and try to check them. Anyways coming to my thoughts on the points raised (these are my thoughts and I reserve the right to be wrong or change my mind 
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On cash balance - yes, its pretty concerning and the most important point. Infact I had raised it at a concall and AGM - the management told that the same is not lying in some foreign ac rather its very much in SBI Bank ac at Kochi. He even said he can give the ac no if needed
So that was comforting however, the question still remains as to why he is not earning interest on the same and why is he speculating on making more gains from dollar appreciation (which I don’t like and concerns me).
If you check the past balance sheet of the company, the company had a debt:equity ratio of 5:1 in 2007 and by 2013 there was consistent reduction in debt + cash generation and debt:equity ratio came down to 0.5:1. The cash balance has swelled up materially only in last 2-3 years. Earlier debt reduction wouldn’t had been possible if the business was not generating cash.
Still, I continue to keep this as a key monitorable. -
On hiring of E&Y and paying lot of money - I see it as a good point. Earlier the issue could have been that the co has no professional auditors - atleast they took a move and got E&Y as internal auditor. From my CA experience I can tell that most of the cos have unknown auditors till they reach a point and are asked by investors to have known audit firm. And its not easy to change the old statutory auditors all of sudden.
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On signing of acs early - We had asked it at the AGM and were told that the company has a process of having acs finalization on a monthly or quarterly basis + they don’t have to deal with too many customers (total customers would be less than 10 I think) + the deliveries are not daily - there are fixed schedules. So its not that its impossible.
We should ask the company why this excessive focus on being “first to report” - and provide them feedback - that this raises more questions and anyways do not get them any brownie points -
On KCL - KGL issue - Yes, we would prefer to have one entity but that’s not in our hands. If we are to pull out the numbers of KCL from MCA (which one can do by paying 100 Rs) the good thing to me is that KCL has also had good net profit margins over the last several years. There have been years when KCL has grown much faster than KGL and there have been years (like the latest one) where there has been a de-growth at KCL. But there is no clear trend.
Few more things we did to check about the company:
- Spoke to people in Kerala about the group - most of the time the feedback has been excellent. Even on our forum several people have given good feedback
- There are website like panjiva.com on which one can get shipment details - https://panjiva.com/shipment_search/results?q=kitex+garments
- Searched on EPF website - http://search.epfoservices.in/est_search.php
- Spoke to some professionals in the industry - and the feedback was good about the quality, infrastructure, technology etc.
Despite all this, given the points raised and short-comings in the company, this investment call can go wrong - so everyone please be careful and do your homework 
I hope this helps.
Regards,
Ayush
Disc: I’m invested and my views might be biased.