Oceanaa Biotek - an ocean of opportunity?

(vikas sinha) #42

Board meeting postponed, likely due to happenings in Chennai/TN.
rescheduled to Tuesday, 14th August


(vikas sinha) #43

Q1 results:

PAT / Margins Better than previous year. Sales 17% up.
PAT 78% down QoQ.
Shrimp industry is slowing down this year. Not bad for a bad year.

(vikas sinha) #44

Biggest Red-Flag is why would a giant Oceanaa group start a separate micro entity like OBIL?
On one hand it is good to know the pedigree of Oceanaa, but quite puzzling.

The group website “home”-page falls silent around 2009, “milestones” disappear after 2013.
“media” shows that one group company doing fruits and vegetable processing is bankrupt, since 2017.

Old story of Shrimp industry turning to White shrimp from Tiger shrimp, Oceanaa/OBIL top-guy A. Joseb Raj, is man with “business plan that could show the way” (using software for traceabilty which may explain his IT company, Object Frontier Software Pvt Ltd) from Disease, bad seed quality, not tested.

This top-guy has some youtube videos of producing somethings (I do not know Tamil, shows that another company has activities, Oceanaa AJR Cine Arts Pvt Ltd.) and silent LinkedIn profile(s).
The group company has some 25 employees though on LinkedIn:

Overall, other than the puzzle about a giant group spawning a small shrimp like OBIL, the group plant site images are good. The top-guy (and well-educated relations) seem ambitious and qualified, with good plans, talking quality, seeds, hatching, integrated operations (seed, feed, guide, test, buy-back with insurance), traceabilty, testing since ages ago. Hopefully are able to execute them profitably as well.

This is a play on shrimp, India has cost advantages still. Best days are definitely behind us, but some good times may still be around. Somewhat increasing input costs are definitely here to stay, margins will be tough. Growth and Profits will depend on good execution.

(vikas sinha) #45

Maybe they are trying to create an inheritance for the next generation, since the entire promoter holding of 40% is held by two people only. Hopefully they are not flushing them down the toilet!


(vikas sinha) #46

They do seem to have some deep expertise!

(rv007) #47

The latest annual report gives pointwise reply to the observations in auditor’s report of last year…

This is on page no 28…

(Hitesh Patel) #49

I went through the AR fy 18 of the company and was surprised that the company has not paid (but provided) for income taxes for 3 years in a row. And they have announced a dividend of Rs 1.5 per share for FY 18. And not paid dividend distribution tax on the same.

Looks very unusual to me for a company to be not able to pay taxes but still going ahead and declaring dividend.

The reason given for not paying taxes is inability to collect dues from debtors. Now what kind of business is this that company cannot pay taxes because of outstanding dues from debtors but could manage to pay dividend? (anyone holding received dividend in their account?)

A first look at numbers shows a very rosy picture but reading the auditor notes and reading the customary management replies gives a really scary feeling about the company.

Even gratuity and leave encashment has not been paid for.

Looks too much to digest. I havent come across any company that admits to not paying taxes in response to auditor observations and continuing to report robust numbers.

Maybe a case of forensic audit worthy of notice of @vardharaj or @diffsoft

(jaman) #50

Increase in trade receivable from March 2018 to Sept 2018 is 6.5 crore (from 10.8 to 17.3 Crore), Collecting cash may be major problem for the company. Cash flow from operating activity is very less.Could someone throw some light one this issue?