Shervani Industrial Syndicate ( earlier Geep ) is following very strange accounting practices.
It may be to understate the massive profits Shervani Industrial is making
-----------------------------------------------
The basic fundamental of accounts is that Profits = Sales Minus Expenditure.
After Profits have been worked out the one of the Items for RETAINED PROFITS may be " Increase in Inventories "
----------------------------------
.
Even after grossly understating Profits, according to the Report there is EPS of Rs.46 ,
But under the next Heading Dividend , Shervani Industrial states " DUE TO INADEQUACY OF PROFITS ----- NO DIVIDEND "
Page 7 -Annual Report 2016-17
====================================================
In its Annual Report 2016 -17, Page 32 Shervani has shown the Item " Increase in Inventories " as EXPENDITURE and thus understated its Profits.
.
Same -Page 32
It seems ( WHICH PLEASE RECHECK ) that in the Annual Results Shervani Industrial has understated its Profits by Rs. 18 cr 30 lakh ). Total Profit for the year are , actually , Rs. 33 cr 35 lakh ( which on an Equity base of Rs. 3 cr 28 lakh gives an EPS of Rs.102 /- per Rs. 10 share.
--------------------
.
Shervani Industrial huge Investments in Subsidiary companies and Mutual Funds page 38
=====================
SIMILARLY
It may be to understate the massive profits Shervani Industrial is making
-----------------------------------------------
The basic fundamental of accounts is that Profits = Sales Minus Expenditure.
After Profits have been worked out the one of the Items for RETAINED PROFITS may be " Increase in Inventories "
----------------------------------
.
Even after grossly understating Profits, according to the Report there is EPS of Rs.46 ,
But under the next Heading Dividend , Shervani Industrial states " DUE TO INADEQUACY OF PROFITS ----- NO DIVIDEND "
====================================================
In its Annual Report 2016 -17, Page 32 Shervani has shown the Item " Increase in Inventories " as EXPENDITURE and thus understated its Profits.
.
Same -Page 32
It seems ( WHICH PLEASE RECHECK ) that in the Annual Results Shervani Industrial has understated its Profits by Rs. 18 cr 30 lakh ). Total Profit for the year are , actually , Rs. 33 cr 35 lakh ( which on an Equity base of Rs. 3 cr 28 lakh gives an EPS of Rs.102 /- per Rs. 10 share.
--------------------
.
Shervani Industrial huge Investments in Subsidiary companies and Mutual Funds page 38
=====================
SIMILARLY
August 15, 2017
Shervani ( Geep ) Super Q1 Results But Profits Grossly Understated
Please study the Q1 ( 2017-18 ) STANDALONE Results as given on Page 4 of
http://www.bseindia.com/xml-data/corpfiling/AttachLive/73ac3afc-bbba-4abe-9fe9-94d01bbc15c3.pdf
Sales are Rs. 20 cr 25 lakh this quarter ( Previous Year Q1 sales were Rs.3 cr 76 lakh.
and there is not much difference in expenses.
But Rs 13 cr 09 lakh from Profits have been allocated to rise in Inventories .
This is a mere accounting jugglery to hide real profits.
Thus the real net profit for the quarter is Rs.2 cr 12 lakh ( as stated ) PLUS Rs.13 cr 09 lakh ( allocated to Inventories )
This gives Q1 EPS of Rs.46/47 p . This is Standalone only and does not include the profits of subsidiary companies.
================================
Book Value
As per Annual Report 2016-17 Shervani has a Share Capital Rs. 3 cr 28 lakh and Reserves of Rs 195 cr 40 lakh giving it a Book Value of Rs.620
==============
2017-18 Estimated EPS ( Q1 Annualised )
With the Current Year EPS to be around Rs.200 and Book Value around Rs. 620 /- the share price of Shervani Industrial should be in THOUSANDS.
=======================
BUY BACK
Shervani Industrial has announced Buy back Buy @ Rs.205
====================
for more , please click
=================
69 th AGM on 28/09/2017, 11:30 am , at Allahabad. Shareholders , please attend.
--------------
Important Disclaimer : Please do not take Any Investment Decision based on the above stated analysis. Please only do a further Self Study
WE MAY BE WRONG
We Welcome Corrections / Comments from Readers and Accounting Experts
=================
.
General Warning : Investment in Shares Can be Injurious to Your WEALTH
Disclosure : The Blog writer in his / family names has holdings in this Company. So please make suitable " provisions " for any likely Over Optimism
NB :All information given in good faith. Please recheck every point before taking an investment decision.No responsibility with this blog / blog writer
=====
============
Please study the Q1 ( 2017-18 ) STANDALONE Results as given on Page 4 of
http://www.bseindia.com/xml-data/corpfiling/AttachLive/73ac3afc-bbba-4abe-9fe9-94d01bbc15c3.pdf
Sales are Rs. 20 cr 25 lakh this quarter ( Previous Year Q1 sales were Rs.3 cr 76 lakh.
and there is not much difference in expenses.
But Rs 13 cr 09 lakh from Profits have been allocated to rise in Inventories .
This is a mere accounting jugglery to hide real profits.
Thus the real net profit for the quarter is Rs.2 cr 12 lakh ( as stated ) PLUS Rs.13 cr 09 lakh ( allocated to Inventories )
This gives Q1 EPS of Rs.46/47 p . This is Standalone only and does not include the profits of subsidiary companies.
http://www.bseindia.com/xml-data/corpfiling/AttachLive/73ac3afc-bbba-4abe-9fe9-94d01bbc15c3.pdf
Sales are Rs. 20 cr 25 lakh this quarter ( Previous Year Q1 sales were Rs.3 cr 76 lakh.
and there is not much difference in expenses.
But Rs 13 cr 09 lakh from Profits have been allocated to rise in Inventories .
This is a mere accounting jugglery to hide real profits.
Thus the real net profit for the quarter is Rs.2 cr 12 lakh ( as stated ) PLUS Rs.13 cr 09 lakh ( allocated to Inventories )
This gives Q1 EPS of Rs.46/47 p . This is Standalone only and does not include the profits of subsidiary companies.
================================
Book Value
As per Annual Report 2016-17 Shervani has a Share Capital Rs. 3 cr 28 lakh and Reserves of Rs 195 cr 40 lakh giving it a Book Value of Rs.620
==============
2017-18 Estimated EPS ( Q1 Annualised )
With the Current Year EPS to be around Rs.200 and Book Value around Rs. 620 /- the share price of Shervani Industrial should be in THOUSANDS.
=======================
BUY BACK
Shervani Industrial has announced Buy back Buy @ Rs.205
====================
for more , please click
=================
69 th AGM on 28/09/2017, 11:30 am , at Allahabad. Shareholders , please attend.
--------------
Important Disclaimer : Please do not take Any Investment Decision based on the above stated analysis. Please only do a further Self Study
69 th AGM on 28/09/2017, 11:30 am , at Allahabad. Shareholders , please attend.
--------------
Important Disclaimer : Please do not take Any Investment Decision based on the above stated analysis. Please only do a further Self Study
WE MAY BE WRONG
We Welcome Corrections / Comments from Readers and Accounting Experts
=================
.
.
General Warning : Investment in Shares Can be Injurious to Your WEALTH
Disclosure : The Blog writer in his / family names has holdings in this Company. So please make suitable " provisions " for any likely Over Optimism
NB :All information given in good faith. Please recheck every point before taking an investment decision.No responsibility with this blog / blog writer
=====
============
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