Advik rastogi IPO Review

Avoid

highly competitive and capital intensive business of photovoltaic cells highly govt regulated tough to make big margin money in power business

1

Avoid

cash flow from operation gives the impression of inflated profits for ex against the net profit of FY21-22 of 5.40 cr there is a negative cash flow from operating activity of 40 lakhs creates suspicion on genuity of profits

Avoid

Income tax demand on group company RATNATRIS PHARMACEUTICALS PRIVATE LIMITED of rs 21.50 cr litigation while the remus pharma Company networth is only 17 cr there are high chances of spillover of group company ratnatris liability to renus so this issue should be given a skip

Avoid

low Ebidta margin business 3.5 to 5 percent highly competitive environment with big players like reliance , tata etc promoter track record is dismal current criminal proceeding going on amounting 2 crs approx so promoter integrity a big question mark

Avoid

Negative cash flow low operating margin and high debt equity makes it unviable issue sudden increase in profitability raises eyebrows

Avoid

On February 18, 2019, Mr. Gaurav Jindal, Promoter and Director of the Company booked and arrested as
accused under Section 69 of CGST Act 2017 for violation of Section 132, 7, 16(2), 31, 32, 35, 37,38 and 39 of
the CGST Act 2017. It was alleged that Mr. Gaurav Jindal, while acting as one of the Director of M/s. GJA
Industries Limited (now name changed to M/s. Whitecliff Industries Limited) and few other companies has
violated the provisions of Section 132 of CGST Act 2017 to the tune rs 8.85 cr