Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Nitin Mangal is a Research Analyst 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 newspapers such as Wall Street Journal, Business Standard etc

Indian Accounting Research Analyst

Forensic Accounting

<p>Of late, <a href="https://www.smartkarma.com/entities/cox-and-kings-ltd" target="_blank" data-smartkarma-citation="entities:14232:1" rel="noopener">Cox And Kings (COXK IN)</a> ’ financials and important events on its corporate timeline suggest that the Company might have taken a logic-defying detour. The Company defaulted on commercial paper of about INR 5.5 bn. Did the liquidity crunch cause the default? At least the Company financials do not indicate so. At FY19 year-end, the Company was having around INR 18 bn as cash and cash equivalents in the books, still, they failed to repay the commercial papers on maturity. Interestingly, with such large cash pile in its books, the promoter stake in Cox &amp; Kings reduced by 10% and now stands at 39.73%. The receding promoter stake was the consequence of its lenders have invoked pledged shares. Cox &amp; Kings has also demonstrated concerns on high debts with the intent to trim debt; the company has sold assets in the UK.</p>

Of late, Cox And Kings (COXK IN) ’ financials and important events on its corporate timeline suggest that the Company might have taken a logic-defying detour. The Company defaulted on commercial paper of about INR 5.5 bn. Did the liquidity crunch cause the default? At least the Company financials do not indicate so. At FY19 year-end, the Company was having around INR 18 bn as cash and cash equivalents in the books, still, they failed to repay the commercial papers on maturity. Interestingly, with such large cash pile in its books, the promoter stake in Cox &amp; Kings reduced by 10% and now stands at 39.73%. The receding promoter stake was the consequence of its lenders have invoked pledged shares. Cox &amp; Kings has also demonstrated concerns on high debts with the intent to trim debt; the company has sold assets in the UK.

Cox & Kings: On A Logic Defying ‘Detour’