Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Nitin Mangal is a Research Analyst with more than 15 years of experience in Indian equities. He is Pioneer of Corporate Governance and Accounting Research in Indian Market and has successfully developed product for Institutional Investors named as "Analysis Beyond Consensus" during his association with Edelweiss Securities Ltd, Mumbai. Later during the career, he has worked with Veritas Investment Research Corporation, Canada as Asia Consultant covering Indian and US equities. He has been profiled by leading financial newspapers such as Wall Street Journal, Business Standard etc

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

<ul>
<li>
<a href="https://www.smartkarma.com/entities/kajaria-ceramics-ltd" target="_blank" data-smartkarma-citation="entities:13916:1" rel="noopener">Kajaria Ceramics (KJC IN)</a> is in the limelight after it reported a fraudulent activity in its step-down subsidiary, KGPL. </li>
<li>The funds were embezzled and siphoned by CFO of its subsidiary over a period of two years. Amount involved was INR 200 mn, corresponding to 6-7% of consolidated FY25 PAT. </li>
<li>This raises questions on both internal controls and role of statutory auditors. Also, we note a very high gross PPE turnover ratio in KGPL which leads doubt on revenue recognition/capex.</li>
</ul>



Kajaria Ceramics (KJC IN) is in the limelight after it reported a fraudulent activity in its step-down subsidiary, KGPL. 
The funds were embezzled and siphoned by CFO of its subsidiary over a period of two years. Amount involved was INR 200 mn, corresponding to 6-7% of consolidated FY25 PAT. 
This raises questions on both internal controls and role of statutory auditors. Also, we note a very high gross PPE turnover ratio in KGPL which leads doubt on revenue recognition/capex.


Kajaria Ceramics Fraud- Capex and Control Failure