Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Nitin is founder of Trudence Capital with more than 15 years of experience in Indian equities. He is Pioneer of Corporate Governance and Accounting Research in Indian Market and has successfully developed product for Institutional Investors named as "Analysis Beyond Consensus" during his association with Edelweiss Securities Ltd, Mumbai.  Later during the career, he has worked with Veritas Investment Research Corporation, Canada as Asia Consultant covering Indian and US equities. He has been profiled by leading financial news papers such as Wall Street Journal, Financial Times, Business Standard etc.

Indian Accounting Research Analyst

Forensic Accounting

Hathway Cable And Datacom / Forensic Accounting

<p>We have analyzed financials of Indian Cable Industry majors: <a href="https://www.smartkarma.com/entities/9895" target="_blank" data-smartkarma-citation="entities:9895:1">Den Networks (DEN IN)</a> , <a href="https://www.smartkarma.com/entities/952" target="_blank" data-smartkarma-citation="entities:952:1">Hathway Cable And Datacom (HATH IN)</a> (Hathway), <a href="https://www.smartkarma.com/entities/27886" target="_blank" data-smartkarma-citation="entities:27886:1">GTPL Hathway (GTPL IN)</a> and found out following key issues:-</p><ul>
<li>Possible impairment of investment in subsidiaries (whose net worth is fully eroded) of Den Networks and GTPL will significantly erode the net worth of these companies.</li>
<li>Non-recognition of deferred tax assets on tax losses by Den Networks confirms our hypothesis of an impairment of investment in subsidiaries.</li>
<li>Hathway and GTPL follow aggressive accounting policy of measuring receivables pursuant to the introduction of Digital Addressable System (DAS).</li>
<li>Consolidated financial statements may not be trustworthy as unaudited, management certified financial statements of few of the subsidiaries, associates and joint ventures had been consolidated.</li>
<li>Non – consolidation of few subsidiaries, associates and Joint venture gives an incomplete picture of financial statements.</li>
</ul>

We have analyzed financials of Indian Cable Industry majors: Den Networks (DEN IN) , Hathway Cable And Datacom (HATH IN) (Hathway), GTPL Hathway (GTPL IN) and found out following key issues:-
Possible impairment of investment in subsidiaries (whose net worth is fully eroded) of Den Networks and GTPL will significantly erode the net worth of these companies.
Non-recognition of deferred tax assets on tax losses by Den Networks confirms our hypothesis of an impairment of investment in subsidiaries.
Hathway and GTPL follow aggressive accounting policy of measuring receivables pursuant to the introduction of Digital Addressable System (DAS).
Consolidated financial statements may not be trustworthy as unaudited, management certified financial statements of few of the subsidiaries, associates and joint ventures had been consolidated.
Non – consolidation of few subsidiaries, associates and Joint venture gives an incomplete picture of financial statements.


Hathway Cable And Datacom

Cable Giants: An Accounting Review