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Nahar Capital and Financial Services


Nahar Capital and Financial Services is an investment company. 

It owned about 425cr of liquid investments in market value as at 31st March 2011.  These are, however, subject to substantial downward revisions as some of their major holdings have suffered market value depreciation of over 33%.

Being an investment company, income statement performance adds little value to balance sheet analysis.

The business is subject to all the risks of investing and the investment company structure – mainly exposure to permanent impairment of investments and hoarding of resources by management without intention to distribute them to their owners even when this is the most sensible course of action.

Management have paid negligible dividends relative to liquid assets and shareholders ought to compel management to pay out a larger proportion of assets or justify the hoarding of shareholders’ resources.  

Management appear to claim to perform some sort of valuable role of investing in the financial markets, which the shareholders can do themselves and/or delegate to qualified investment funds, which are subject to better regulations in these matters. 

Situations where promoter-managements take advantage of minority shareholders must not be allowed to persist (particularly in the 21st century after decades of activist investing experience around the world) and the injustice can be resolved only if minority shareholders collectively raise their displeasure first with management and if no satisfactory response is forthcoming, with the regulatory authorities (SEBI etc.).

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