Lakewater Advisors Profile picture
Sebi registered Equity Research & Portfolio Management Service. CAGR much above Nifty50 since inception. Connected to Roots and Obsessed with Fundamentals.
18 Sep
Before #investing, one should always dig deep into the fundamentals of your #investment.
Below are a few quick indicators which can give you an insight on whether a company's financial statements are misrepresented or accounts are being window dressed.

1) Percentage of miscellaneous expenses as a proportion to total revenue

2) Change in Reserves unexplained by Profit/Loss for the year and Dividends

3) Provision for Doubtful Debt as a proportion of Debtors outstanding for over 6 months

4) Growth in Auditors’ Remuneration vis-a-vis growth in revenues

5) Change in method of calculating depreciation

6) Trend in Ratio of Capital Work in Progress to Gross Block

7) Contingent Liabilities as a Percentage of Total Net Worth

#equity #investorawareness
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