KRBL- The King of Basmati rice

The below post has an article of how ITC could benefit from the on going Russia Ukraine crisis as these countries account for 30% wheat export. As a result commodity wheat prices shot up 50%. The article also says ITC could benefit from its rice export as people will start consuming more rice than costly wheat. This will be good to KRBL as well.

1 Like

The last one two years we are discussing this issue but just see the reality on the ground sales going down margins under pressure long protracted legal battle still ed holding 6 Percent stake.
As investors we have to understand that the market knows better than us may it is trading at a reasonable fair value today but the question is why to take risk were we completely not aware of the total scenario as small individual investors the is adage to remember

If they can steal for you one day they will steal from you.

So there enough other investing opportunities why put our neck in line for this

Last point even now they are holding to joint auditors as whole time after the old auditors criminal link

Discl tracking only

2 Likes

Seeing the last few posts I feel there’s good value in this company at current price. Ofcourse it is subjective to each person. Promoter buying from open market is a very good sign. At this price most of the negatives are already priced in.

Disc:
Holding. Will change my mind if anymore negatives crop up.

2 Likes

With price of all agri inputs flaring up, KRBL (which has the highest inventory of rice among listed players )will definitely benefit. Should see improving results going ahead from them. Inventory is close to 2800 Cr whereas market cap is only 4500 cr with negligible debt. Moreover, their buying power due to inventory +no debt will ensure market share gains as well.

Disc : Invested

8 Likes
  • Got huge Tax Relief
  • Contingent Liability to get reduced too

1f73cdef-e5c8-4ba8-8954-eaab93f7b1dd.pdf (863.9 KB)

2 Likes

Does this means company has done nothing wrong and they will not swindle company into VVIP chopper scam also?

This is different issue altogether - this is tax demand from IT department and you are referring to Augstawestland case… Though it is good that management was right in this matter. Thanks!

i had read in some news report that CBI dont have enough material proof wich can prove wrong doing in this case as already all material evidence are destroyed already.

If the company is clean on Income Tax, means it has not done any money laundering or faking receipts, etc. ( I was asking on those lines ) , Extensive audits and books must have already been reviewed by the IT department.

I think you have misunderstood the both case. Let me try to give you some perspective.

  1. Income tax demand: this issue pertains to tax demand for FY11 to fy16 - IT department issue notice based on mismatch in their database and what company have filed. Of course IT team might have asked for more information and company provided the same but they did not agree and hence notice and the all arguments happen in respective forum.

I am not sure but based on little serach - I did on this - this was related to some repecipt where company did not get it from local mandies hence it department did not recognised as expenses.

This stand as solve as per company’ recent filling.

  1. Augstawestland scam:
    This is bigger issue then former but there is no way to put finger on exact amount as this is done through sham agreement and kickback so no documentation.

Here ED alleges that company helped culprit and middleman to get there kickback amount via their dubai subsidiary in India. I lack space to describe the the whole issue as lot companies and persons have been detained by ED - you can find a lot of information on Internet.
ED has yet to file chargesheet (as per last status I have checked) against mastedmind of this scam.

And if you want to check specific information when company’ joint MD was arrested - I have posted order of every hearing in this forum.

Hope this clarify few things for you.

Thanks!

3 Likes

Following Additions made by IT dept. for the Asst. years 2010-11 to 2016-17 were deleted by tribunal in a recent judgement on 09.05.2022 :-

  1. Addition of INR 4,76,843 + 29,98,74,335 + 5,27,159 + 14,07,06,177 + Rs. 49,72,24 ,635/- for A.Y . 2014-15 , Rs. 31 ,36,47 ,795/- for A.Y. 2015-16, Rs. 36,54,70 ,992/- for A.Y. 2016-17 of alleged difference between purchase/sales made to certain parties treating these as ungenuine/bogus transactions and commission paid to such parties for arranging such alleged bogus bills.
  2. Addition of INR 15,15,74,668/- in respect of the income earned by M/s KRBL DMCC, Dubai, a wholly-owned subsidiary of the KRBL Ltd. by alleging it as the income of the KRBL Ltd.
  3. Addition of INR 2,07,72 ,796/- on account of stock difference in rice during physical verification.
  4. Addition of INR 2,05,94 ,826/- alleging the same as unaccounted money of the KRBL Ltd.
  5. Addition us 40 A (3) payment made to mandis u/r 6 DD (e) by the appellant in excess of Rs. 20,000/- in making such purchases amounting to Rs.443 ,67,45 ,973/- were disallowed and added back to the income of the appellant.

link to judgement

3 Likes