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Vaghani Techno-Build


Vaghani Techno-Build operates in the real estate industry.

It is engaged in the construction and development of infrastructure and trading of Transfer Development Rights (TDR), which originate when landowners sever building/development rights from a particular piece of property.

The company reported negative reserves several years ago although it appears to have recovered ground at present.  Pre-tax operating profits were reported at 2cr per year for the last three years but have slipped back into marginal losses over the last nine months.

The business is exposed to all the risks of the construction and real estate industry including high interest rates, execution risks (availability and costs of material, labour, etc.), stringent government regulations (taxes, permits, etc.), and other relevant factors.

The balance sheet reveals stock of ‘Industrial Units’ (recoverability unknown), advances for capital goods (projects unknown), and debts are older than six months.

Management have never declared dividends from its resources – this may be due to intermittent losses but it certainly does not appear to be forthcoming in the foreseeable future.

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