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How to contact companies for clarifications and additional information?

Modified on November 1, 2018

The current article in this series provides responses related to “How to contact companies to get more information/clarification about their business?”


How to contact companies to get more information/clarification about their business?

Hi Sir,

As you have mentioned in the analysis article on Indo Count:

Read: Indo Count Industries Research Report

“While analyzing the related party transactions section of the FY2016 annual report (pg. 106), the investor would notice that Indo Count Industries Limited has outstanding receivables of about ₹122 cr from its subsidiaries. The key subsidiary among these is Indo Count Global Inc. (USA). It might indicate that the company is receiving money from its customers in the USA, however, the wholly owned subsidiary in the USA is not remitting the funds to India.

How to contact companies to get more information/clarification, Why do promoters hold shares through different companies, trade payables interest-free funding, free cash flow with high debt?

An investor should monitor the comparative receivables position closely and understand whether the company has any Capex plans for the USA, which might be leading it to hold funds overseas. Otherwise, keeping cash overseas, which would be earning very low returns on deposits when compared to India, might not be a very good decision. The sustained holding of cash overseas without utilization can also be a sign of caution, which might require the investor to do an in-depth assessment by the investor.”

My question is

  1. How to figure out which subsidiary (or) associate owes how much money when the company has more than one subsidiary and more than one associates.
  2. How to draw conclusions like money is with USA subsidiary and it is not remitting funds to INDIA?
  3. I see that even UK subsidiary is holding 100%. So how to know which subsidiary is not remitting funds?


Author’s Response:


Thanks for writing to us!

The information sought by you in your queries is usually present in the annual report of the company.

Also read: Understanding the Annual Report Of A Company

However, in case, an investor finds that the information is not in the annual report, then she should write to the company about it (investor’s relations department).

Usually, for most of the companies, the company secretary is the person in-charge of the investors’ relations. However, the website of the company will have the email and phone number details of the concerned person-in-charge.

An investor might face a situation where their first email is not responded to by the company. However, our experience has been that most of the companies provide the response after one follow-up (email or phone call). Therefore, if the investor does not get a prompt response from the company, then she should not lose heart and instead follow it up with the company.

Also read: Why Management Assessment is the Most Critical Factor in Stock Investing?

All the best for your investing journey!


Dr. Vijay Malik


Related Query:

Dear Dr Vijay


I have a query on KMC Speciality Hospitals (India) Ltd. I tried to get it resolved from the company secretary (CS) of the company.

Below is the response I got from their office. The CS is asking my shareholding details before answering my queries. Is it that they want to see if I have a substantial shareholding? Although, I have shared my details with them but to no avail. Should it be taken as a big negative?

KMC Speciality Hospitals (India) Ltd, Contacting Company To Get Information

Thanks & Regards,

Author’s Response:


Thanks for writing to us!

It is usually a good idea to share your DP ID details right in the first email so that the company can ascertain whether you are a current shareholder or not. We do not think that they would want to know whether you are a large shareholder because they would already the details of their large shareholders.

As you have now shared the requested details to them, therefore, you may follow up with them a couple of times. If they do not respond despite follow up, then you may take a decision accordingly considering any future scenario when you need any important information and the company may not provide it.

All the best for your investing journey!


Dr. Vijay Malik,




  • The above discussion is only for educational purpose to help the readers improve their stock analysis skills. It is not a buy/sell/hold recommendation for the discussed stocks.
  • I am registered with SEBI as an Investment Adviser under SEBI (Investment Advisers) Regulations, 2013.
  • Currently, I do not own stocks of the companies mentioned above in my portfolio.

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