KS Oils is a classic case of mismanagement and greed overtaking the ethical ways of running of a company. Otherwise it has one of the best brands in mustard oil under its umbrella. The below information shows the state of affairs when one fails to short circuit the honest path and want to achieve the riches over night. KS oils is suffering because of telecom scandal.
KS Oils has ended down 6.5% at Rs5.50 on reports that the company may face liquidation as it finds difficult to sell its assets. “The company’s proposal for corporate debt restructuring is kept in abeyance, pending disposal of some of its wind mills to plug the hole in its balance sheet due to losses in mustard oil trading,” a report suggests. The company engaged in edible oil business had reported a whopping Rs 261 crore net loss for the quarter ended September 2011, as compared to a net profit of Rs 76 crore in the same quarter of previous year. Over 9 million shares were traded on the BSE and NSE.
We feel sorry for a quality company going down the drain which could have ruled the market had they followed honesty, ethical behaviour and had some good advisors and financial experts to guide them properly and were not blinded by greed. So moral of the whole story is to keep the greed under control as it is disastrous for the promoters as well as for its investors.
A real entrepreneur can really revive the company but it requires a lot of money. It is high risk, high return bet. Keep bvisiting our website for best stock tips for intraday trading in India,.
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