Audit fee is only 6.2 lakhs each in the past 2 years, comparable with that of Empire or other similar sized companies. You must have mistaken the legal and professional charges which was 1.5 cr in FY 11 and about 90 lakhs in the previous 2 years each. While that may look a bit on the higher side, i think the major chunk of it went for the payment to the US architect firm which is designing the IT parks and the expansion of the exhibition complex.
The CMD’s total comp came to 2.6 cr which i believe is quite reasonable. The CMD and his wife together also did not take about 6 cr in commission which they could have under terms of employment. Again a good indication.
I dont know whether comparing these no’s to dividend payouts is a correct measure. Obviously Nesco’s dividend pay-out is abysmal and can improve much further. In defense, the promoters are saying that all the money is being used to invest in ventures which have such high RoE that it doesnt make sense to increase pay-out now. Sure, a bit more of capital structuring by using debt funding would be ideal (reduce taxes and free up more money for dividends) but the company and promoters seems to be so financially conservative (may be from past experience!) that they will not even consider debt!!!. That said given how precarious the state at which leveraged companies are today, i guess i am ok with the structure.