This implies that they are not SOCS compliant and this can lead to dubious malpractices. Not a good reason provided by them.
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dear all,
I am studying Xpro india. While going through latest Monitoring Agency Report in relation to Preferential Issue & Qualified Institutions Placement dated July 26, 2024, i noticed that company used 399 M Rs for working capital. however in asterisk, only details for 139 M rs is provided. what happened to remaining amount. (i.e. 260 M rs.)
Queries
- If only 139 Mrs were transferred than why the utilisation for quarter is 399 Mrs.
Thank you @Prashant_Karandikar @aditya14920251 @keeyes for sharing your views on the matter. I too find the reasoning a little unconvincing.
right now any business I look, it’s overvalued. as a beginner in investing what should I do what can I learn? should I keep cash for future opportunities?? and I also want learn how to set exit framework, because I’ve heard something like never be a forced long term investor, though I am interested in long term investing(value investing)
Auditing is mandatory and very basic design consideration. Let me explain by an example.
A user creates a payment, later the same payment is altered by other colleague and submit it (the change could be beneficiary or value date or something else ), in corporate world you have group of users who are responsible to create and submit payments and other group responsible for review and approve the payments. Many of the times we do get queries from the user the data we submitted is different when we compare with completed transaction. So this is traced back by looking into audit log, every edit on the original record will be logged as per org. / regulatory standards. If the underlying DB is oracle then this is acheived by creating triggers on the table where the data is stored , the same can be acheived almost in every technology. Disk space costs is a dumb answer, the storage costs are very very cheap and we can have process to archive the logs once the logs are X days old to release the space.
As a beginner, you have to gain experience and not think about immediate profits. We do this also for profits, but for long term profits, we have to learn, create a thought process, experience, and repeat.
Experience never ends because markets are dynamic, they change a lot. So to not miss out on the experience a bull market gives, invest some amount, and see what happens, because market can still go up from here, no one knows, but be prepared for a fall, as the valuations are high.
If there is a fall, as you have invested only a part of your amount, you still have funds, so you can analyze how much to buy in the fall. If market goes up, you will have the option to buy some more, or even book profit (if you are in profit). So if your objective is to gain experience, you can do it in many ways.
Value investing comes with some disadvantages, you may have to wait for long periods to see the price go up, and if you have less funds, you will miss other opportunities. The price can still go down after you buy.
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hi
How to calculate variable cost ? kindly elaborate.
Calculating variable costs in a stock company, or any business, involves understanding which costs change with the level of production or sales activity. Variable costs are those that vary directly with the volume of production or sales. Here’s a step-by-step guide to calculating variable costs:
1. Identify Variable Costs
Variable costs are those that change with production or sales levels. Common examples include:
- Raw Materials: Costs of materials used in production.
- Direct Labor: Wages of employees directly involved in production.
- Sales Commissions: Fees paid based on sales volume.
- Utilities: Costs like electricity that increase with higher production levels.
2. Gather Data
Collect data on your costs over different levels of production or sales. This data should include:
- Total Costs: Record total variable costs in INR associated with different levels of output.
- Production Levels: Note the corresponding production or sales volumes for each cost figure.
3. Calculate Variable Cost Per Unit
To find the variable cost per unit in INR, use the following formula:
Variable Cost Per Unit = Total Variable Costs (INR) / Total Units Produced
Where:
- Total Variable Costs (INR) are the costs that vary with production (e.g., raw materials, direct labor).
- Total Units Produced is the number of units produced during the cost period.
Example: If the total variable costs for producing 1,000 units are ₹50,000, then:
Variable Cost Per Unit = 50000 / 1000 = 50
So, the variable cost per unit is ₹50.
4. Determine Total Variable Costs
To find total variable costs for any production level in INR, use the following formula:
Total Variable Costs (INR) = Variable Cost Per Unit × Number of Units Produced
Example: If the variable cost per unit is ₹50 and you produce 2,000 units, then:
Total Variable Costs (INR) = 50 × 2000 = 100000
So, the total variable costs are ₹100,000.
5. Analyze the Cost Behavior
Analyze how variable costs behave as production levels change. This involves:
- Creating a Cost-Volume-Profit (CVP) Analysis: A CVP analysis helps understand the relationship between costs, sales volume, and profit in INR.
- Plotting Costs: Plot variable costs against production levels to visualize the direct correlation.
6. Adjust for Business Changes
If there are significant changes in business operations, such as a new production process or changes in supplier prices, adjust your calculations accordingly.
7. Integrate into Financial Planning
Incorporate variable cost calculations into budgeting and forecasting to better predict financial outcomes based on different levels of production or sales.
Example Scenario
Company XYZ produces widgets. Their data for different production levels is as follows:
- At 1,000 widgets: Total Variable Costs = ₹70,000
- At 2,000 widgets: Total Variable Costs = ₹1,40,000
From this data, the variable cost per unit is:
Variable Cost Per Unit = 70000 / 1000=70
And if the company plans to produce 3,000 widgets:
Total Variable Costs (INR) = 70 × 3000 = 210000
So, the total variable costs for producing 3,000 widgets would be ₹2,10,000.
By following these steps with INR, you can accurately determine the variable costs for any level of production or sales, which helps in making informed financial decisions.
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hi,
thanks for wonderful reply
why long term debt in not considered while calculating the liquidation value of a company?
Can the group suggest any resources on how to value a company? I read a bit about DCF and wanted to know if that is applicable for valuation studies, and if there are any exception sectors.
For example, I had bought UCO bank at Rs. 8 because I saw the PE and PB ratios were quite low for a PSB, especially among its peer balance sheet companies. Now I am not able to understand how to value it.
I have been browsing through the NSE website looking for interim reports of companies, I would like to download them, analyze their textual content and compare it to European counterparts. However, it seems that the financial results rarely contain any textual comments from the firm’s CEO, instead they are published in a separate press release. Would you say that this is a common pattern, that the numbers and the comments are published as separate documents?
In some of the Analyst research reports refer Concall updates for the Quarter - where u can find commentary from CEO/CFO.
In screener.in, documents tab, Concall Quarterly notes u can find the same.
Refer below links for Company reports:
https://www.icicidirect.com/mailimages/Co_reports.htm
https://www.screener.in/company/IONEXCHANG/consolidated/#documents
Hope this helps.
Thank you for the links, conference calls could be a good avenue to monitor the company’s commentary. However the reports that I now have from European companies are more one-sided, i.e. not Q/A-type of conversation, here is one example. Nonetheless, confcalls could be valuable to gather from European firms as well.
For reference, I’m using the data for a project of mine, hopefully I can incorporate Indian companies in it one way or another
U can use company investor presentations of every quarter, which gives business updates, medium and long term goals, their performance and off course Annual reports, if u are looking for specifics and developments over the years
While calculating Depreciation rate for forensic accounting purpose
Depreciation to gross block is the right formula to find out depreciation rate for the current year ?
The rate ideally shouldn’t change haphazardly and can also change either by accounting practice change or the Capital Work in Progress not flowing into gross block on B/S
Is my understanding correct?
Thanks, the presentations seem to be comparable for those of the European companies, I added them as well. At this point I have collected around 13 000 reports from 2020 onwards, I’ll do some clustering next to see how they compare with the Europeans
One of my scrip I bought last week is showing “short delivered” in my trading account as seller has short delivered the shares. My 2 queries in this regard:
-
Does this signal bullish, as it shows that someone has done short selling and when it will buy back shares today to complete the order, stock will rise?
-
Can we check on BSE / NSE list of all those stocks which were short delivered and their quantities?
Hey,
Please recommend me some free resources where I can find in-depth stock research reports.
Sharing a few that I know of
https://www.icicidirect.com/mailimages/Co_reports.htm
https://simplehai.axisdirect.in/research/reports/fundamental
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