Case 2. Inbox is in the business to sell PC & laptop of leading brands through its owned showroom
worth
20 million, 25 million of inventory, investment 7 million, cash 10 mn, computer & office
equipment worth 8 mn and total assets are worth 70 million on the balance sheet as on Dec 2019
It has 70% Capital (generated from own sources) and 30% financing from conventional banking
(liability). Total share issued at face value of Rs 10 are 4.9 million
The company has 10% investment of its total assets in an Islamic mutual funds and however all the
cash is invested in conventional bank. The gross revenue of the company is 50 million including
the income from conventional bank investment of 2 million and from Islamic mutual of 5 million.
The shares of Inbox are being traded @ Rs. 20/share (market value) whereas the face value of
each share is Rs. 10
Your friend in Stock Exchange is asking you to buy its share as the company is about to announce
dividends and has got unusually high profits. Evaluate the offer as per stocks screening criteria of
KMI-30 index for investment.
Show if the share is compliant or not on each criteria separately and as a whole, so your friend
can
take a decision