Ganesh Films is engaged in the business of acquiring distribution rights of South Indian movies from production or co-production houses and thereafter distribute the same to cinema halls spread across the Distribution Territory. To this end, it wants to raise about 8 Crores.
But before we analyse the company let’s start with some guidelines BSE has in place for SME’s hoping to list themselves on the exchange. The new rules came into effect on July 12th, 2018.
Ganesh Films have none.
They were incorporated in April 2018 after subsuming the promoters' original business, which was incorporated back in 1985. Currently the company’s financial disclosure is limited to the period between May 9th and May 20th for the current fiscal during which time it has earned profits of Rs. 54,000 on total revenue of Rs. 9.18 lakh. That’s their combined financial track record- 11 days. We are not kidding!!
We called SEBI to find out how this works. They said the company wasn’t registered with them. So, it was none of their business.
The company has 5 employees on it’s payroll and there are civil proceedings against the promoter with litigants seeking damages to the tune of 60 lakhs.
We are not going to tell you how Ganesh films looks as an investment prospect because it does not matter. It is impossible to evaluate a company without any financial record.
What should the investor rely on ? Promoter? BSE ? SEBI? It’s quite preposterous. So, we are going to end the story here. We hope investors exercise extreme caution while considering this issue because the people who ought to care about investor protection don’t really care at all.
Finception, Ideapad, CIIE
IIM Ahmedabad, Vastrapur Ahmedabad - 380015
Email: [email protected]
Phone: +91 89805 94439