Do the above figures make sense to someone? What is meant by ‘Trading Business’ and ‘Manufacturing Business’? The revenue break-up of both the trading and manufacturing segments given above seems inconsistent with that given in the Notes to P&LA. Do they treat raw material sales as sales of manufactured goods- distinct from Trading Sales? In any case, why do they sell raw materials? Is it also not trading? Further, which business reports NPBT in excess of actual sales in a financial year, especially when there were no sales at all from manufacturing business in the previous financial years?
Receivable have grown at a CAGR of 35% during the last four years, though revenue has grown at a CAGR of 30% over the same period.
| Period | Receivables(INR) | Receivables as % of sales |
|---|---|---|
| 31st March, 2014 | 7,29,86,142 | 21% |
| 31st March, 2015 | 7,33,34,412 | 17% |
| 31st March, 2016 | 9,74,76,043 | 16% |
| 31st March, 2017 | 13,66,44,798 | 19% |
| 31st March, 2018 | 17,55,58,900 | 19% |
| 30th Sept, 2018 | 23,64,40,650 | 45% (H1). For full year it could be 22%-25% |
Cash Flow is not in line with Net Profit during FY14 – FY18.
2013-14 2014-15 2015-16 2016-17 2017-18 Total [Five years]
Cash Flow from Operations (INR) 15266502 2361525 19448432 38190803 18620219 93887481
Cash used in Capex(INR) 3606921 3327523 1226571 10248958 60867837 79277810
Free Cash Flow(INR) 11659581 -965998 18221861 27941845 -42247618 14609671
CFO Growth % -85 724 96 -51
Net Profit (INR) 7493325 10898455 29170758 40160378 58746855 146469771
NP Growth % 45 168 38 46
Too many related party transactions stink of low corporate governance practices:
Mr. Amit Vinod Sheth, MD of Focus Lighting and Fixtures Ltd, is one of the directors of Arion Online Pvt Ltd.
Shantilal & Brothers is a partnership firm and Nalini Vinod Sheth(promoter of Focus Lighting & Fixtures) is a partner of Shantilal & Brothers as per Form No. 3CEB.
Shantilal & Brothers is the biggest supplier to Focus Lighting & Fixtures Ltd with Rs. 42.55 crore worth of purchases having been made by Focus Lighting from Shantilal & Brothers during FY2018. Total Sales of Focus Lighting during FY 2018 were Rs. 92 crore.
Amit Vinod Sheth and Nalini Vinod Sheth(promoters of Focus Lighting) are the directors of Sri Jay Pharma Exim Private Limited. Sri Jay Pharma has 6% stake in Focus Lighting and Fixtures.
Focus Lighting FZE and Plus Light Tech FZE are shown as Associate Entities on one page in the AR-2017-18, while on the another page of the same AR the two entities are shown as subsidiaries of Focus Lighting & Fixtures Ltd.
AR-2017-18 page no. 39
AR-2017-18 page no. 73
Yet another inconsistency is reported on page no. 16 of AR-2017-18
Frequent Resignations of Independent Directors & the chairman of Audit Committee and Company Secretary:
