Kitex Garments Limited

All,

I just spoke with the Managing Director of KGL’s Auditors - Liju V. Rajan Kolath (Kolath Auditors) to dig more into the truth of the 200 crore cash. You can email me if you want his contact details.

In a 5 minute conversation, I asked him straight and direct questions about the existence of the 200 crore, bank details, do they audit other listed companies?. Below were his responses:-

  1. The money is real and the financial statements have been prepared after completing all necessary due diligence. He is not aware if there is any such statutory regulation to mandatorily reveal bank details. He said if that is true, the company should have revealed it in the Annual Reports.
  2. On probing about the bank details, he said I should either have asked this in the AGM or write to the CFO of the company.
  3. He didn’t reveal if they work with other listed companies and said he cannot reveal such information over phone as e doesn’t know who I am but said they are a reasonably big audit firm who work with large companies across Bangalore, Chennai, Mumbai, etc.
  4. He was of the firm opinion that I should go to their AGM next time and if possible must visit their office/plants. He said it is one of the best companies he has visited and worked with.

Overall, he seemed very nervous revealing details over phone and asked me specific questions like my interest in the company, if I was related to someone in the Planning Commission (my name similarity), where in Delhi I’m from etc, etc. Said I should try to understand that some of this information is privileged (bank details, etc) and the CFO of KGL may question him for revealing any such details.

Also said he’d pass on my details to the CFO of the company as a current investor and ask them to respond to the bank details question. (However I have not written any mail to the CFO and only taken details from Valuepickr that nobody has received any responses)

Disclosure - Still not invested, may be soon if there is some correction.

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