How can CFO be greater than EBIDTA? For example, Sandhar Technologies had an operating profit of 246 cr in Mar 2023, however, the CFO was 308. Can someone explain how this is possible?
246cr operating profit . Add 78.76 cr working capital changes. Minus 27.07 cr taxes. Net Cast generated 307.9 cr
Simply, when working capital is negative.
You, may try zerodha varsity,
What is this AIF, Alternate Investment Funds that is being shared across? I dismissed these as MLM equivalents but now have friends telling me about it. I don’t plan to do any investments in it but what is going on ?
There’s a good article on Finshots which clearly explains AIF
An explainer on how the Reserve Bank of India is clamping down on an unholy practice known as evergreening. RBI exposes a dirty NBFC secret!!!
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Read with singular purpose across the ARs. For instance:
- How senior management changed or remained unchanged over the years?
- Commentary in the chairman’s letter Vs reality that unfolded in future financial statements.
- How has the business evolved over the years?
- What are the major sources of Revenue and Expenses?
- What are the key accounting notes and how they have changed with time?
…And many more when you have a comprehensive set of questions!!!
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How to check corporate governance and allocation of a company is good or not?
So basically hiding NPAs was the overall plan under the title AIF.
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When understanding Auto sector, I always have the doubt relating to OEM.
I was of view that OEMs are basically those company who make parts that is used in final product. As per that companies that make brakes, tyres, etc. are OEM.
However, when we search on google, it tells even Maruti, Tata Motors, Toyota are OEMs.
Can someone please provide more understanding on this? Thanks
Also, in case of auto industry, are OEMs and auto ancillaries means the same thing?
OEMs are vehicle manufacturers including 2, 3 or 4 wheelers. Tata Motors, Maruti, Hero Moto Corp are examples.
Auto ancillaries sometimes known as Tier 1 companies are suppliers to the OEMs. Bosch, Motherson are examples.
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Wikipedia describes the part manufacturing company (& not final vehicle manufacturer) as OEMs
Definition has to be changed.
VMs or Vehicle Manufacturers are also known as OEMs.
Ancillaries are the ones who supply to them.
OEM-Original Equipment Manufacturer. So google is right.
Traditionally OEM (Original equipment manufacturers) are the ones that makes equipment or cars, that are usable as a whole. Parts manufacturers don’t call themselves as OEM and hence what google says is irrelevant. It’s the OEM that (co)design and provide the specifications to the parts manufacturers and the DND (design and development) cost is also factored into the parts cost through contractual commitments and volumes
The parts manufacturers sell the parts to OEM for new equipment/cars as well as to the after sales market directly which is marked as RM (replacement market)
Hope this helps.
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How to find out the cost of capital of a company?
please share
Any open source way to highlight […(and keep them highlighted)…] list of words [100+] in a pdf(Company AR) file? I googled but could not find a suitable solution. Hence, asked. Trust someone will help as a lot of software folks are part of the VP Tribe.
Thanks in advance.
IMO, it’s a gut feel one develops after scanning leadership for checks such as:
- Promoter: Owner Operator [Pay, Ownership, and RPT | Pledging; Selling…?]
- Incentives
- Prior Experience and CareerFootprints
- Strategic Plan Vs Day today Improvements
- Approach to Issuing Guidance
- Mgmt. Style: Centralized/Localized
- Senior Mgmt timeline of last 10 Yrs.
- Type of Board Members
- Capital Allocation: FCF - Reinvest | Cash | Dividend | Buyback | Acquisition
- Moment of Integrity [Behavior under stressful situations]
- Clear and Consistent communication with shareholders [MD and CEO Letter/Talk - Talks about Important Issues, Easy to Listen to, You Learn from the Mgr. | Beware: Seeded with PR, Copy of MD&A, Jargons, Double speak]: Answers or Responds to the questions.
- Independent Thinking ++ Avoids Me Too Attitude
- Self-Promoting [Frequent Media Appearances, Promotes share price]
- Accounting: Aggressive or Conservative
Even after spending time on all these, one could never be 24Carat sure.
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Can the promoter know on any given day who are the shareholders in their company…or they come to know at the end of the quarter?