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

PC Jeweller: Accounts Throw up Many Red Flags, Caution Warranted

Demonetization Paradox: INR 45 Bn Cash In Corporate Coffers And Myriad Patterns Of SBN Disclosures

<a href="https://www.smartkarma.com/entities/1941" target="_blank" data-smartkarma-citation="entities:1941:1">PC Jeweller Ltd (PCJL IN)</a> (PCJ) share price is down around 40% in last three trading sessions largely owing to the news that its promoters are off-loading their stocks. Amidst the steep drop, came the clarification from the company that reduction in promoter holding was due to the gift of shares by one of the promoters to his family members, which was classified as a public holding instead of promoter group holding. However, the stock price continues southward indicating that there are other causes of concern in PCJ financials. PCJ is a glittering maze running around which leaves you with two options to choose from. Either those at the helm are confused or there is a lot to conceal. This is not an ideal situation either for the company or the investors. Such opaque view of the company’s trajectory – past, present, and future – does point to governance issues and concerns over internal controls.PCJ claims to be sitting on a huge pile of cash, which has been apparently left untouched. However, the company still wants to carry debts in its balance sheets preferring to pay higher interests on its loans rather than saving interest costs. Also, capex confusion, the question of effective internal control, `Anchor Anarchy', higher export receivables and many more add to our report.

PC Jeweller Ltd (PCJL IN) (PCJ) share price is down around 40% in last three trading sessions largely owing to the news that its promoters are off-loading their stocks. Amidst the steep drop, came the clarification from the company that reduction in promoter holding was due to the gift of shares by one of the promoters to his family members, which was classified as a public holding instead of promoter group holding. However, the stock price continues southward indicating that there are other causes of concern in PCJ financials. PCJ is a glittering maze running around which leaves you with two options to choose from. Either those at the helm are confused or there is a lot to conceal. This is not an ideal situation either for the company or the investors. Such opaque view of the company’s trajectory – past, present, and future – does point to governance issues and concerns over internal controls.PCJ claims to be sitting on a huge pile of cash, which has been apparently left untouched. However, the company still wants to carry debts in its balance sheets preferring to pay higher interests on its loans rather than saving interest costs. Also, capex confusion, the question of effective internal control, `Anchor Anarchy', higher export receivables and many more add to our report.

PC Jewellers Limited – All That Glitters….

Pc Jeweller Ltd

PC Jewellers Limited – All That Glitters….