Trans Freight Containers was in the business of manufacturing Dry Cargo Marine Freight Containers – the activity stands suspended due to economic unviability. Consequently the company generated no turnover and marginal losses before depreciation over the last 12 months. The company, however, has a net cash position of over 2 crores. The business has become unviable as a result of Chinese competition on pricing. And there don’t appear to be factors to turn this situation around. Management is currently considering proposals for diversification of business activities. Although they have liquidated inventories and fixed assets to boost cash balances and repay debt, they haven’t declared dividends or formulated plans to deploy the cash. Therefore, future cash flows to shareholders appear to be highly speculative.
An Individual Investor's Perspectives On The Indian Financial Markets