Som Distilleries and Breweries


(Ravindra Mutyala) #22

Are they due to newly launched subsidiary? Though new subsidiary was ready by 2018 Jan, they haven’t started the operations as on the preparation day of financial i.e. March 2018. We can see difference in some line items standalone n consolidated balances sheet.


(vinay_new07) #23

That’s the only explanation I could think of too. They said the operations commenced in April 2018, so probably they should write off the amounts this year.


(..pd..) #24

2 directors bought total 12,000 shares on 21sep


(Raj A A) #25

Promoters have bought in Aug 18…10K and in Sep 18 32K. With introduction of new variety of beer in Karnataka and impending elections, scrip looks interesting.


(vinay_new07) #26

A few more pointers that I noted from the AR:

  1. The related party transactions between Som_Listed and Som_Pvt are to the tune of 38 Cr (Debit) and 21 Cr (Credit). However, no explanations for such transaction has been provided. As previously pointed out, the CEO does not take any salary from the listed company. So do the related party transactions in effect include the salary part?

  2. In FY18 P&L, the company has recognized previous year taxes to the tune of 4 Crores. I could not understand, why would they recognize previous year taxes in this year’s P&L. Wasn’t this recognized earlier or has there been subsequent revision in taxes?

  3. The number of employees and aggregate employee expense is almost equal in FY17 and FY18 (106 employees each year and 6.65 Crores in salaries). This seems a little weird because the AR also mentions that the median salary for employees increased by 8.1%

  4. Lastly, the company spent about 5.5 Crores on new vehicles and 0.82 Crores on Fuel and maintenance. This seems a little high considering the company already accounts for freight outward separately (21 Crores expense recognized)

It would be great if anyone could share their views on the above.

Disclosure: Invested and looking to add more


(arvind) #27

Where is the filing for these?


(Raj A A) #28

It is all in BSE notification and disclosures.


(Ravindra Mutyala) #29

I wanted to understand the nature of business of Som Distilleries Private Ltd. (SDPL) which is a group company of Som group which may have similar nature of business like Som Distilleries and Breweries Ltd (SDBL) as their names suggest and hence the conflict of interest.

Here are my findings form publicly available information.

SDPL founded in 1982 prior to SDBL. It engaged in manufacturing of alcohol from molasses. Its product range includes Industrial spirits, Country liquor and IMFL. 74% of SDPL revenues comes from country liquor and for SDBL, 90% of revenues comes from Beer segments and hence there is no complicit in majority of their business. However SDPL is getting 19% revenue form IMFL whereas SDBL is getting 10% revenues from same segment.

Both business also have some common names in their brands hence there may be some conflict of interest.

image

Financial performance of SDPL and SDBL are completely different, SDPL posted net loss in FY17 which may in line with its business segments (Country & Industrial liquor)

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Disclosure: Holding


(Ravindra Mutyala) #30

JK Arora, Som Distilleries: Subsidiary Woodpecker Distilleries Commences Its Production, IMFL Unit To Start Its Production This Week

Expect Capacity Utilisation Of IMFL Unit To Be At 25%@Heeraal pic.twitter.com/24siL7IB1c

— BTVI Live (@BTVI) October 15, 2018

Don’t understand Arora’s point on regulator permission to increase the promoters stake.
Is there any restriction?