S EPORTING ATE TH Blue Chip India Ltd.€¦ · ECTOR: FINANCE REPORTING DATE 14TH AUGUST, 2017 BLUE CHIP INDIA LTD. Composition of Board: As per Regulation 17(1)(b) of the Listing

Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory

STAKEHOLDERS EMPOWERMENT SERVICES

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SECTOR: FINANCE REPORTING DATE: 14TH AUGUST, 2017

BLUE CHIP INDIA LTD. www.bluechipind.net

Blue Chip India Ltd. NSE Code - BLUECHIP TABLE 1 - MARKET DATA (STANDALONE) (AS ON 27TH JUL 2017)

Sector - Finance NSE Market Price (`) 0.20 NSE Market Cap. (₹ Cr.) 1.16

Face Value (`) 2.00 Equity (` Cr.) 11.06

Business Group - N.A. 52 week High/Low (₹) 0.55/0.15 Net worth (₹ Cr.)* 1.30

Year of Incorporation - 1985 TTM P/E (TTM) N.A. Traded Volume (Shares) 130

TTM P/BV 1.11 Traded Volume (lacs) 0.00

Registered Office Source - Capitaline, TTM - Trailing Twelve Months, *As on 30th September, 2016

10 Princep Street, 2nd Floor, COMPANY BACKGROUND

Kolkata – 700 072, Blue Chip India Limited was incorporated on June 27, 1985 and registered with the

Registrar of Companies at Delhi & Haryana. A Certificate of Commencement of Business

was obtained by the Company from the Registrar of Companies on August 5, 1985. Later,

the Company obtained the Order of Company Law Board, Northern Region Bench, New

Delhi dated September 22, 1993 and shifted its registered office from the State of Delhi &

Haryana to the State of West Bengal. At present, the registered office of the Company is

situated at Kolkata. The Company at present is listed with CSE, BSE & NSE. The Company is

mainly engaged in granting of Loans & Advances and Investment in Shares & Securities.

West Bengal

Company Website:

www.bluechipind.net

Revenue and Profit Performance

The revenue of the Company decreased from ₹0.41 crores to

₹0.03 crores from quarter ending Sep’15 to quarter ending

Sep’16. The Company made a loss of ₹0.10 crores in quarter

ending Sep’16 vis-a-vis making a loss of ₹0.08 crores in quarter

ending Sep’15.

Source - Money Control

Performance vis-à-vis Market

TABLE 2- Returns

1-m 3-m 6-m 12-m

Blue Chip India Ltd -20.00% -75.00% -55.56% -50.00%

Nifty 2.08% 7.12% 14.73% 15.94%

Nifty Fin Service 5.40% 10.90% 24.89% 29.77%

Source – Capitaline / NSE

-

0.50

1.00

1.50

Aug 16 Nov 16 Jan 17 Apr 17 Jul 17

Blue Chip India Ltd NIFTY NIFTY FIN SERVICE

0.03

1.06

0.41

-0.10 -0.06 -0.08-0.50

0.00

0.50

1.00

1.50

Sep'16 Mar'16 Sep'15

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.bluechipind.net/




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TABLE 3 – FINANCIALS

(₹ Cr.) Sep’16 Mar’16 Sep’15 % Change

Sep ’16 vs Mar’16 Mar’16 vs Sep’15

Net Worth 1.30 1.34 1.30 -2.99% 3.08%

Current Assets 3.10 3.72 3.97 -16.67% -6.30%

Non-Current Assets 4.32 4.57 4.65 -5.47% -1.72%

Total Assets 7.42 8.29 8.62 -10.49% -3.83%

Investments - - - - -

Finance Cost - - - - -

Long Term Liabilities 1.68 1.68 1.88 - -10.64%

Current Liabilities 4.44 5.27 5.44 -15.75% -3.13%

Turnover 0.02 1.06 0.41 -98.11% 158.54%

Profit After Tax (PAT) -0.10 -0.06 -0.08 N.A. N.A.

EPS (₹) -0.02 -0.01 -0.01 N.A. N.A.

Source - Money Control/ Stock Exchange filing.

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Auditors have not raised any qualifications in last three financial years viz. for FY 2015-

16, 2014-15 and 2013-14.

The Auditors have drawn attention to following Emphasis of Matters for FY 2015-16:

a. Attention is drawn to Note No. 22 of financial statements related to non-provision of 0.25% of standard assets as per

RBI guidelines.

b. Attention is drawn to Note No. 23 of financial statements related to Loans & advances of ₹2.35 Cr. given by the

company which are outstanding since long and the management is of the opinion that the amount is fully recoverable

and no provision is required.

c. Attention is drawn to Note No. 30 of financial statements related to income tax demand of ₹0.05 for several years, for

which no provision has been made in the accounts.

Management Response:

The observation made in the Auditors' Report read together with relevant notes thereon are self-explanatory and hence, do not

call for any further comments under Section 134 of the Companies Act, 2013.

Response Comment

Frequency of Qualifications Not Applicable

Have the Auditors made any adverse remark in last 3 years? No -

Are the material accounts audited by the Principal Auditors? Not Applicable* -

Do the financial statements include material unaudited financial statements? Not Applicable* -

* Not applicable as the Company does not have any subsidiary(ies) during the financial year 2015-16.

TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT – 2015-16)

Regulatory Norms Company

% of Independent Directors on the Board 50% 50%

% of Promoter Directors on the Board - 0%

Number of Women Directors on the Board At least 1 1

Classification of Chairman of the Board - Not Disclosed

Is the post of Chairman and MD/CEO held by the same person? - No

Average attendance of Directors in the Board meetings (%) - 96.43%




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Composition of Board: As per Regulation 17(1)(b) of the Listing Regulations, 2015, the Company should have at least 50%

Independent Directors, if there is no chairman on the Board. The Company has 50% of Independent Directors on the Board and

hence, it meets the regulatory requirements.

Board Diversity: The Company has 6 directors out of which one is Women Director.

TABLE 5 - FINANCIAL RATIOS

Ratios Sep’16 Mar’16 Sep’15

% Change

Sep ’16 vs

Mar’16

Mar’16 vs

Sep’15

Turn

ove

r

Rat

ios

Inventory Turnover 0.01 0.30 0.12 -97.39% 149.04%

Debtors Turnover 2.00 53.00 41.00 -96.23% 29.27%

Fixed asset Turnover 0.005 0.23 0.09 -98.00% 163.06%

Current Asset Turnover 0.01 0.28 0.10 -97.74% 175.91%

Ret

urn

Rat

ios

Operating Profit Margin -450.00% -6.60% -24.39% N.A. N.A.

Net Profit Margin -500.00% -5.66% -19.51% N.A. N.A.

Return on Assets (ROA) N.A. N.A. N.A. N.A. N.A.

Return on Equity (ROE) N.A. N.A. N.A. N.A. N.A.

Return on Capital Employed

(ROCE) N.A. N.A. N.A. N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 0.70 0.71 0.73 -1.09% -3.27%

Quick Ratio 0.12 0.03 0.10 256.08% -66.82%

Cash Ratio 0.12 0.03 0.10 293.17% -69.97%

Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio - - 1.45 - N.A.

Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.

Trad

ing

Rat

ios

Market Cap / Sales 124.50 3.13 2.71 3,875.00% 15.69%

Market Cap/ Net Worth 1.92 2.48 0.85 -22.69% 190.17%

Market Cap/PAT N.A. N.A. N.A. N.A. N.A.

Market Cap/EBITDA N.A. N.A. N.A. N.A. N.A.

Source - Money Control

TABLE 6 - TRADING VOLUME

Jun-17 Dec-16 Jun-16

% Change

June 17 vs Dec 16 Dec 16 Vs June 16

Trading Volume (shares) (avg. of 1 qtr) 6,670 3,459 7,318 92.83% -52.73%

Trading Volume (shares) (high in 1 qtr) 27,340 19,000 37,225 43.89% -48.96%

Trading Volume (shares) (low in 1 qtr) 10 15 25 -33.33% -40.00%

Ratio - High/low trading volume 2,734.00 1,266.67 1,489.00 115.84% -14.93%

Ratio - High/average trading volume 4.10 5.49 5.09 -25.38% 7.98%

Source - Capitaline




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TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Jun'17 Dec'16 Jun'16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 11.23 11.23 11.83 • No new equity shares were issued during the

period from Jun’ 2016 to Jun’ 2017.

• The promoter shareholding decreased from

11.83% to 11.23%.

• No other major change was observed in the

shareholding pattern during the above

period.

• The promoters have not pledged any shares.

Public - Institutional

shareholding 0.00 0.00 0.00

Public – Non

Institutional shareholding 88.77 88.77 88.17

Non-Promoter Non-Public

Shareholding 0.00 0.00 0.00

Source - NSE

MAJOR SHAREHOLDERS (AS ON 30th JUNE, 2017)

S. No. Promoters Shareholding

S. No. Public Shareholders Shareholding

1 Bahubali Properties Ltd 7.20% 1 Future Zone Entertainment Pvt. Ltd. 4.47%

2 Herald Commerce Limited 3.71% 2 Hanurang Projects Pvt. Ltd. 3.51%

3 Rangbarshi Projects Limited 3.10%

4 Hubgerford Consultants Pvt. Ltd. 1.40%

5 Suryasakti Advisory Pvt. Ltd. 1.11%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters There was no change in the promoter shareholding during the FY 2015-16

Preferential issue to promoters No preferential issue of shares was made to the promoters.

Preferential issue to others No preferential issue of shares was made to other shareholders.

GDRs issued by the Company The Company did not issue any GDRs.

Issue of ESOPs/Issue of shares other than

Preferential allotment

The Company does not have any ESOP Scheme. Further, no new equity shares were

issued by the Company during FY 2015-16.

Source - Annual Report 2015-16

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Sr. No. Name and Description of main products / services % to Total turnover of the Company

1 Sale of Equity Shares 96.84

Source - Annual Report 2015-16




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Glossary

Equity: The equity shares capital of the Company

Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholders’ funds of the Company

Turnover: The revenue earned from the operations of the Company

EPS: Earning Per Share is net profit earned by the Company per share

𝐸𝑃𝑆 =Profit After Tax

Number of outstanding shares

P/E ratio: It is the ratio of the Company’s share price to earnings per share of the Company

𝑃/𝐸 𝑟𝑎𝑡𝑖𝑜 =Price of each share

Earnings per share

Current Assets: Cash and other assets that are expected to be converted to cash in one year

Fixed Assets: assets which are purchased for long-term use and are not likely to be converted quickly into cash, such as land,

buildings, and equipment

Total Assets: Current Assets + Fixed Assets

Investments: An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in

the future.

Finance Cost: The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges

incurred during the year in relation to borrowed money.

Long Term Liabilities: Long-term liabilities are liabilities with a maturity period of over one year.

Current Liabilities: A company's debts or obligations that are due within one year.

Inventory Turnover ratio: Inventory Turnover is a ratio showing how many times a company's inventory is sold and replaced

over a period.

𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Inventory

Debtors Turnover: Accounts receivable turnover is an efficiency ratio or activity ratio that measures how many times a business

can turn its accounts receivable into cash during a period

𝐷𝑒𝑏𝑡𝑜𝑟𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Accounts recievables

Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐹𝑖𝑥𝑒𝑑 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Fixed Assets

Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =Sales Turnover

Current Assets

Operating Profit Margin: Operating margin is a measurement of what proportion of a Company’s revenue is left over after

paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Company’s operating

income (also known as “operating profit”) during a given period by its sales during the same period.

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Operating profit

Sales Turnover

Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales

𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 =Net profit

Sales Turnover




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Return on Assets: ROA tells you what earnings were generated from invested capital (assets)

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐴𝑠𝑠𝑒𝑡𝑠 =Net profit

Total Assets

Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholders’

equity.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐸𝑞𝑢𝑖𝑡𝑦 =Net profit

Net worth

Return on Capital Employed: Return on capital employed (ROCE) is a financial ratio that measures a company's profitability

and the efficiency with which its capital is employed.

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 =Net profit

Total Debt + Equity share capital

Current ratio: The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts

over the next 12 months. It compares a firm's current assets to its current liabilities.

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 =Current Assets

Current Liabilities

Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories

Current Liabilities

Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.

𝑄𝑢𝑖𝑐𝑘 𝑟𝑎𝑡𝑖𝑜 =Current Assets − Inventories − Account Recievables

Current Liabilities

Working Capital Turnover ratio: The working capital turnover ratio is also referred to as net sales to working capital. It indicates

a Company's effectiveness in using its working capital.

𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 =𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Current Assets − Current Liabilities

Debt to Equity ratio: The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of

shareholders' equity and debt used to finance a company's assets.

𝐷𝑒𝑏𝑡 𝑡𝑜 𝐸𝑞𝑢𝑖𝑡𝑦 𝑟𝑎𝑡𝑖𝑜 =𝑆ℎ𝑜𝑟𝑡 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡 + 𝐿𝑜𝑛𝑔 𝑇𝑒𝑟𝑚 𝐷𝑒𝑏𝑡

𝑁𝑒𝑡 𝑊𝑜𝑟𝑡ℎ

Interest Coverage ratio: The Interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a

Company can pay interest on outstanding debt.

𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐶𝑜𝑣𝑒𝑟𝑎𝑔𝑒 𝑅𝑎𝑡𝑖𝑜 =𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝐵𝑒𝑓𝑜𝑟𝑒 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑎𝑛𝑑 𝑇𝑎𝑥

𝐹𝑖𝑛𝑎𝑛𝑐𝑒 𝐶𝑜𝑠𝑡

Market Cap/Sales ratio: Market Cap/sales ratio, Price–sales ratio, P/S ratio, or PSR, is a valuation metric for stocks. It is

calculated by dividing the company's market cap by the revenue in the most recent year; or, equivalently, divide the per-

share stock price by the per-share revenue.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑆𝑎𝑙𝑒𝑠 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑆𝑎𝑙𝑒𝑠 𝑇𝑢𝑟𝑛𝑜𝑣𝑒𝑟

Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Company’s market cap to net worth.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑁𝑒𝑡𝑤𝑜𝑟𝑡ℎ

Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company’s market cap to net profit.

𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝑃𝐴𝑇 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡

Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company’s market cap to EBITDA.


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp

https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



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𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝/𝐸𝐵𝐼𝑇𝐷𝐴 𝑟𝑎𝑡𝑖𝑜 =𝑀𝑎𝑟𝑘𝑒𝑡 𝐶𝑎𝑝

𝐸𝐵𝐼𝑇𝐷𝐴

Trading Volume (shares) (avg. of 1 year): Average number of shares/day traded in 1 year

Trading volume (shares) (high in 1 year): Highest number of shares/day traded in 1 year

Trading volume (shares) (minimum in 1 year): Lowest number of shares traded on any one day in 1 year




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