Top 5 Holdings of India Capital Growth Fund

This post is in continuation of my coat tailing series (see here)

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Indian Capital Growth Fund is a well known investor in the Indian Equity Markets.

Its investment manager is Ocean Dial Asset Management Limited. Its subsidiary ICG Q Limited focuses its investment activities in listed securities in India.

It’stop 5 holdings as on 31 March,2018 as per Stock Exchanges is given below:

Company Name NSE Symbol Entity Value (In Crores)
Kitex Garments Ltd Kitex ICG Q LIMITED 12.18
PSP Projects Ltd PSPPROJECT ICG Q LIMITED 19.66
Skipper Ltd SKIPPER ICG Q LIMITED 22.57
Sagar Cements Ltd SAGCEM ICG Q LIMITED 29.99
Ramkrishna Forgings Ltd RKFORGE ICG Q LIMITED 48.6

Kitex Garments:Super Efficient or Fraud?

Over the last four years, Kitex has been the first listed company in India to report its audited financial results (Reporting dates: FY16 – 4th April, FY15 – 6th April, FY14 – 3rd April, FY13 – 4th April). Normally, this would be viewed positively as it is reflective of strong financial controls inside the company.

In order to ratify the accounts, the auditor needs to gather substantive audit evidence which includes – physical inspection of assets (machinery, inventory), obtaining confirmations from third parties (banks, suppliers, customers), examining transaction records, checking assumptions and calculations. Completing all these activities within 3-4 days of the end of the financial year while theoretically possible has several practical challenges (for eg. In FY16, April 1st was a bank holiday followed by a weekend which limits ability to get third party confirmations). Even large audit firms with extensive resources are unable to complete the annual audit in such a short period of time.

Kitex’s auditor is the Cochin-based Kolath & Co which does not audit any listed entity other than Kitex. Given Kolath’s limited experience in auditing large businesses, its ultra-quick completion of Kitex’s audit raises concerns about the comprehensiveness of the audit. While Kitex’s audited results demonstrate a high level of efficiency, its secretarial compliance reports show delays in its filings (P&L, Balance Sheet, Modification of Charge, Changes in Directors) with the Registrar of Companies. Kitex’s selective efficiency in financial reporting is quite puzzling.-from 2Point2Capital

Portfolio of Ashish Kacholia

This post is in continuation of my coat tailing series (see here)

To know what other top investors are  buying/holding/selling in India, subscribe to our Investor Wisdom Newsletter

Ashish Kacholia of Lucky Securities is a well known investor in the Indian Equity Markets.

His significant holdings in India as on 30 Sept,2014 as per Stock Exchanges is given below:

Symbol Entity Date End # of Shares % Value in Crores
ASHIANA ASHISH KACHOLIA 201409 978060 1.05 17.99
DYNAMATECH ASHISH KACHOLIA 201409 104681 1.73 21.98
ECLERX ASHISH KACHOLIA 201409 375000 1.24 51.57
EVEREADY ASHISH KACHOLIA 201409 1550000 2.13 16.29
GATI ASHISH KACHOLIA 201409 1500000 1.72 42.75
JBCHEPHARM Ashish Kacholia 201409 849730 1 18.46
KITEX ASHISH KACHOLIA 201409 500000 1.05 23.49
PENIND ASHISH KACHOLIA 201409 2000000 1.66 11.4