This NGT order is in positive direction for Vikas
When are the results going to come out? Have they declared the date?
Theyâve announced the result date today, 30th May
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This order has been reversed by NGT. The earlier order by NGT to put warning sign on presence of lead material has now been suspended by NGT, which was also challenged by a petitioner in Supreme Court, to which Supreme Court said that they donât intend to interfere in the workings and orders of NGT, so as of now, the warning sign order of NGT has been put under suspension by new order of NGT and Supreme Court has distanced itself away from it. This sounds bad to me.
Can you please share the source of information/link where order has been put on suspension?
Thanks
Key point to note from the article :
The Supreme Court today said it was not inclined to interfere with the National Green Tribunalâs order keeping in abeyance its interim direction to publish a warning on the Polyvinyl Chloride (PVC) pipes containing lead, that it has hazardous effect on human health.
keeping in abeyance, so this means NGT had temporarily suspended its earlier order in which it had mandated the publishing of warning signsâŚ
Thanks for the info and link. However I believe the matter is far from over and it may only delay the implementation but finally it has to come. As written in the article most developed countries have already banned PVC pipes with Lead due to its harmful effect on human health.
MoEF sooner or later will come out with policies to completely ban the lead from PVC pipes. Does not sound bad to me at all.
If there is a considerable delay, it could have bad implications. What I feel is, Vikas ecotech is not in a good bargaining position and it needs to reduce its trade receivables by bringing down the debtor days as soon as possible coz the company despite registering accounting profit is running cash dry for previous many quarters, its cash flow negative and if this keeps on happening for another few quarters to come, the debt being raised to pay off dividends and to make for operating cash flow short-fall would start eating up into profits in the form of rising interest expanses, it is very important right now for this company to go operating cash flow positive and take care of receivables, 200+ days is a huge matter of concern. Thatâs what I am trying to say, the delay in moef implementation makes situation bad in a compounding way. Anyway, everyone has their own perspective, this is what I feel looking at the companyâs balance sheets
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- I am attaching a pic taken by me only
- I have also noticed than in Finolex Industries concall they heard saying that they will be the first adapt any regulatory rule change.
My concern is only one and that is the receivables. If they can manage it to a comfortable level i will be happy to make position.
Discl: Was holding but not now.
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Management has repeatedly told that in general direction of the industry is moving towards lead free stabilizers. It has also somewhat reflected in their balance sheet(revenue and profit only). Nothing fancy though, they have lot of issues. The recent NGT order may slow down the pace of adoption of lead based stabilizers. This will definitely reflect in companyâs balance sheet in coming quarters.
The interesting point of the company was banning lead based stabilizers. But now that is uncertainty! What will happen to the MOEF circular then? is it valid? will it still be enforced and banned after 6 months? Guess the future depends on these questions.
Meeting will continue today.
Doesnât sound like a good news to meâŚtime to exit this counter
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They have released the adjournment noticeâŚ
The results are outâŚits a shockerâŚsomething is seriously not rightâŚCFO has resignedâŚ
The numbers speak for themselves
This is catastrophic. I canât imagine what exactly went wrong here. Healthy demand was anticipated. But, numbers say nothing of the kind. Truly devastating.
Expected to post bad/flattish numbers, but didnât expect this worse.
- This is what they have to say about the worse numbers:
In the fourth quarter of FY18, the Directorate of Revenue Intelligence conducted a detailed
survey of the companyâs international trade operations including import and export
consignments. These surveys were carried out at the ports as well as office and factory
premises. Almost 70-80 per cent of the companyâs raw materials are imported while exports
constitute nearly 50 per cent of the total revenue. As a result, the company experienced a
significant disruption of its day-to-day operations.
Since, company relies heavily on Import and Export trade, the disruption in operations led to
fall in companyâs revenue. As of now companyâs day-to-day operations have returned to
normalcy. The company is working tirelessly towards strong ramp up of its operations and is
on its way towards restoration to the earlier sales trajectory.
- Also, theyâve mentioned that Rs.16.80 Crs was an extraordinary loss due to fire accident and filed for insurance claim.
Doesnât sound good to me at all !!!
- The final hearing for demerging âVikas Multicorpâ scheduled for August, upon successful demerger, 1:1 shares would be given to investors.
Press release from the company.
The results raise serious concerns regarding the Management. One is obviously regrading the investigation by the Directorate of Revenue Intelligence, the second is non-disclosure of the same to the stock exchanges and shareholders. This is serious lack of corporate governance on behalf of the promoters.
In addition to this, the Management has failed to explain the current situation. In my opinion, a detailed report correctly explaining what happened, why it happened and the findings accurately should have been submitted. Simply stating that we are on course of ramping up production is insufficient and makes it difficult to believe the management of the company.
Really shocker from the management. Was one of my very high conviction ideas, but these results have raised serious doubts about the credibility of the management and the company as a whole.
Completely agree with your assessmentâŚbtw shouldnât the management have brought up this issue of investigation by the DoRI earlier and not saved the explanation till it became necessary.
ALso, the fact that the CFO has resigned doesnât auger well for the management and the company.
The insurance claim has also been pending for some time nowâŚand the management always uses it as an excuse.