Thanks for sharing the snippets, it clarifies the point i am making 
and why i am linking inventory to forecast system. The primary aim of a good forecast system is to avoid both out of stock situation and inventory write-off while having optimum inventory since inventory is essentially cash which cannot be put to use.
If you read through first reply they are mentioning that most of the business is done on basis of forecast system and not contract but if you look at the forecast horizon they are talking about current year and next year, it is more like an estimate at very high level, i would not call that forecast. And Dhruv makes exactly the same point which Mr. Shah has explained that they keep high inventory because they are not sure which supplier will get the order, understand there can be deviation from forecast but not sure whether one gets an order or not, i would not call that as forecast based replenishment. It is more like made to stock in supply chain parlance. Dont wish to split hairs but it seemed dichotomy to me Nonetheless the business seems to be in quite good shape, valuation is for each one to make their own assessment. Thank you.
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