Company Website: Aftek Ltd.
Company Details: Google Finance on Aftek Ltd., Kotak Securities on Aftek Ltd
Annual Report: Aftek Ltd. Annual Report 2006, Aftek Ltd. Annual Report 2005
I am not comfortable with the kind of business they are in. Also I am not very sure of the products they make. They sound complex and it is a business that keeps changing. Also the company has an uncharged amount around 17 crores against foreign exchange that is essentially a reduction of 17 crores.
Consider the market cap (857 lac shares * 73rs = 625 crores), cash flows the company is generating (they claim in excess of 300 crores as cash and cash equivalent) and reported profit after tax around 100 crores. The company is not very heavily loaded as far as debt is concerned (aroud 50 odd crores).
Is this some kind of a scam or is all this true. Add to this a subsidiary (25% holding I think) which is currently valued at 600 crores (25% stake was purchased in lieu of knowledge transfer). The company exists for sure as I had once appeared for an interview for a job oppurtunity with the company (don't ask what was the result).
And the chairman starts his speech with a line from "Sound of Music"
Lets start from the very begining
a very good place to start
ANY COMMENTS, whoever has read this far ...?