Nice observations. Detailed and incisive.
- On 14 crore expense, I found an entry in deposits of approximately 14 crores. However, no details are there.
- “Provision of expenses” figure, 80 crores when total annual expenses are 62 crores; making current liability is beyond understanding. Is it provided for certain losses expected in bad debts in receivables, or inventory, etc? It needs further investigation.
- It does not appear to be capitalizing on any expense. In fact, the accounting profit in the balance sheet is the same as profit figures offered for tax on which income tax has been paid. Yes, if a certain debt has gone bad, it can be claimed as a deduction in profit and loss account as per IT law and IT benefit can be taken.
- The company is in the process of expanding the capacity to 1500 Tonnes. In Investor Presentation in April 2021, the Company said- “The company has steadily increased its plant (at Santej, Ahmedabad) capacity to 1000 Tonnes per month, and is currently expanding its capacity by 50% to 1500 TPM to meet growing demand for its product.”
Thus we can expect growing sales in foreseeable future. - The company further said- “Over the last 10 years, we have grown at CAGR of 38%/43%/55% on Revenue/Ebitda/PAT We are targeting a growth of +30% CAGR over the next 3-5 years.”
- The company website has started working- www.euro7000.com
I am attaching a copy of the presentation.
JRL_Investor-Presentation.pdf (3.5 MB)
