Appreciate your effort to get viewpoints on the management on the issued I highlighted. Find enclosed my view on the various points:
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Tax Payment: When the company acknowledge delayed in tax payment, I have nothing to say.
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Salary: My point was the company highlight its in annual report first 15 page for great innovative strenghtt I believe in such business, employees are critical part as same also contribute the research. Since median salary is Rs 240,000/- nearly 50% of employee would be getting salary higher than that. On one side we talk about innovative business model, on another side, we find median salary of Rs 240,000 (Rs 20,000/- per month). I consider that typically research people and also other managerial staff would definitely shall be getting more salary.
Second point, even taking your details on working, When Ashutosh Gupta get salary of Rs 16,00,000/- average salary of around Rs 1,33,333 per month. I assume the company has 10 person in managerial capacity. So at average salary of Rs 240,000 per annum, i.e Rs 20,000 per month; we would get Monthly managerial salary of Rs 200,000/- of which only Ashutosh Gupta would get around 133,333/- leaving total salary of Rs 66,666/- to be shared among balance 9 manager, giving average salary of 7,400/-. I am not sure but that is lower than minimum wage payable in India. As per enclosed web link, minimum wage payabler per day in Gujarat is around Rs 300 per day, giving monthly salary of at least Rs 9,000/-.
http://www.paycheck.in/main/salary/minimumwages/gujarat
With such low salary, Just wandering how can attract and retain skilled manpower and that is my concern. -
I accept my error. Vikas Globalone is old name. However, frequent change in name is generally not a positive sign.
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The company has no free cashflow to pay employee provdent fund and ESI premium on time. Genunine issue of cashflow and we are talking of great business propsects which does not match in my opinion,
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I doubt that one can voluntarily decide contribution to EPF. However, not sure about same.
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No observation
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In Prior period item, the company has booked export incentive, which are substantially higher as compared with full year FY16 Export incentive income booked. Also, negative prior year (which mean credit/income to Profit and loss account) from reversal of LME & Forex difference and export incentive raise concern to me. It appears to me that company is squeezing every possible item in P&L to increase profit and that coupled with lower/delayed cash tax payment and delayed payment of statutory dues raised concern about genuiness cash profit vis a reported profit.
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You are correct on figure, but then why such high employee turnover that the company can reverse the gratuity? Do you find it completely normal?
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Respone avaited.
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I checked June 2016 presentation, while same has March 2016 and June 2016 Trading sales and EBIT, it does not have FY16 trading sales which I believe require under Indian accounting standards. You can check with some other accounting person/CA on this.
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No observation
Overall, road to investment would never be easy. However, I would suggest to align the information shared by managment with some other critical points about lower salary, non-payment of statutory dues, No excercise of ESOP as available in annual report with the strategic view of research driven company with innovative products. I find difficult to reconcile the two and hence thought to share my concern with the forum. Having said that, there are all possibility that theconcerns raised by me are more of noise then the real voice of the company. Wish you all the best for future,
Discl: I have no holding in the company.
very helpful …
