Originally posted by srisaurabh2000 Am attending the AGM. Will try to ask the questions in the thread. Was not entirely impressed by the HDFC report as they purely took concerns from the AR. The interesting point is that SBI is still invested.

I did attend the AGM. I did ask the questions and the MD invited me to their office at Golden Enclave after the AGM since I had a big list of question.

From my conversation:
1.) The issue with the bills/vouchers getting lost in transit in 2010 was primarily that the auditor had a few days before AGM asked for the vouchers to verify. These

guys had come in new. Since the vouchers earlier were not consolidated at Bangalore they had sent the 15 cartons over truck to Bangalore. These did not reach in time

and were mentioned as lost in transit as indicated by the auditor. The auditor did not look at them at a later date.

He mentioned there are 14 internal auditors and they have internal control in place.

2.)
KS Oils had come in on their own at insistence of analysts. They indicate that they would help in setting up processes and people and also introductions in various

contries which they did. The stake sale had been done by KS Oils promoter for personal needs.

3.) The biocide sales have been down because they typically act when the plant is affected by disease. This year the incidence has been less and hence the sales went down. This should not be an issue going forward as looking for abroad markets as well.


4.)
They are looking for JVs for reaching abroad.

5.)
They have a weedicide which would be in the market next year.

6.)
I suggested them to do a conference call which would benefit folks like us. He indicated that from Q2 this would happen.

7.) This is probably still a promoter driven co. primarily who himself is a technocrat. He seemed to be a hands-on kind of person who is aware of stuff happening on the tech side. And hence might be lax in certain areas.
It will be interesting to see if they can make the transition to an organization.

He did not seem to avoid any questions.

8.) I had myself written earlier to HDFC, the company, a few other analysts when the blog post was shared. I did not hear from HDFC/the company, I indicated that to the promoter and he said that this will not happen again.

There have been other analysts who did reply. And no one was disturbed by the blog post.
e.g. Internationally foundation seeds are capitalised which Camson was also doing. However Indian peers expense it. They changed it these year.
Rebates and discounts are for distributors and not for folks who procure directly. There are certain typical folks who export and they are direct customers.

Please do your own analysis and your judgement if you are investing and please note that I'm invested in this one.
I feel that typical pharma, IT and biotech cos. need intuition more than numbers and hence the decision should be based on that. This is probably one of the reasons Buffett has never gone with such stocks.

Edited by srisaurabh2000 - 30/Sep/2011 at 12:10pm

Please be very very careful while considering an investment in this company. Like a Karuturi, it simply does not pass the smell test.