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Malabar Trading Company


Malabar Trading Company is in the business of trading shares in the financial markets.  It is based in Mumbai. 

It has generated only marginal profits of only 1 to 4 lacs in the last five years.  It has generated a net profit of 8 lacs in the last 12 months but no balance sheet figures are available for FY’11.  Last available balance sheet for FY’10 reveals an unleveraged balance sheet.  The assets are tied up largely in unsecured loans and advances.

Management has, however, proposed to enter into a motley group of unrelated businesses including, hold your breath, 1) Agro Food Produce 2) Healthcare related activities 3) Infrastructure and Construction activities and 4) Hospitalities, Entertainment and Related Activities and issued warrants to promoters and select outsiders to finance the new ventures.  It has, interestingly, declared a dividend in the last AGM.  It has also, however, empowered directors to issue bonus shares, presumably to keep the day traders happy.

Future cash flows, needless to say, appear to be highly speculative.
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