S Samtel Color Ltd. · 2017-08-23 · the Sick Industrial Companies (Special Provisions) Act 1985. (B) We had reported in our audit report for the year ended 31 st March 2012 as under:

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

STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: CONSUMER DURABLES REPORTING DATE: 14TH AUGUST, 2017

SAMTEL COLOR LTD. www.samtelgroup.com

Samtel Color Ltd. NSE Code - SAMTEL TABLE 1 - MARKET DATA (STANDALONE) (AS ON 2ND AUGUST, 2017)

Sector - Consumer Durables NSE Market Price (`) 0.55 NSE Market Cap. (₹ Cr.) 5.13

Face Value (`) 10.00 Equity (` Cr.) 85.49

Business Group - Kaura - Satish 52 week High/Low (₹) 0.70/0.40 Net worth (₹ Cr.)* -690.34

Year of Incorporation - 1986 TTM P/E (TTM) N.A. Traded Volume (Shares) 2,000

TTM P/BV N.A. Traded Volume (lacs) 0.01

Registered Office - Source - Capitaline, TTM - Trailing Twelve Month, N.A -Not Applicable *As on 30th September, 2016

501 5 Flr Copia Corporate Suit, COMPANY BACKGROUND

Plot 9 Dist Centre Jasola, Samtel Color (SCL) was incorporated on 15th May 1986, promoted by S K Kaura, Teletube

Electronics and Samtel (India) and is managed by the chairman and managing director S K

Kaura. SCL is engaged in the manufacture of colour picture tubes, colour Electron Guns,

Black & White Electron Guns and Deflection Yokes. The Company is the largest integrated

picture tube manufacturer in the country with a market shares in excess of 50%. The

company is also the only CRT manufacturer in India.

New Delhi – 110 025

Company Website:

www.samtelgroup.com

Revenue and Profit Performance

The Company did not record any revenue during the period

from Sept’ 15 to Sept’ 16.

Other income of the Company increased by 0.16 Cr. from

Sep’15 quarter to Sep’16 quarter.

The Company made a loss of ₹ 1.70 crores in quarter ending

Sep’16 vis-a-vis making a loss of ₹ 8.41 crores in quarter

ending Sep’15.

Source: Moneycontrol

Performance vis-à-vis Market

TABLE 2- Returns

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

Samtel Color Ltd 10.00% 9.09% 0.00% 10.00%

Nifty 4.16% 7.86% 14.93% 16.78%

NIFTY FMCG -6.66% 8.21% 12.53% 14.99%

Source: Capitaline/ NSE

0.00

0.50

1.00

1.50

Aug 16 Oct 16 Dec 16 Feb 17 Apr 17 Jun 17

Samtel Color Ltd NIFTY NIFTY FMCG

0.00 0.00 0.00

-1.70

-17.53

-8.41

-25

-15

-5

5

Sep'16 Mar'16 Sep'15

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.samtelgroup.com/




2 | P A G E



TABLE 3 - FINANCIALS

(₹ Cr.) Sep’16 Mar’16 Sep’15 % Change

Sep ’16 vs Mar’16 Mar’16 vs Sep’15

Net Worth -690.34 -686.57 -660.84 N.A. N.A.

Current Assets 84.52 84.60 85.71 -0.10% -1.29%

Non-Current Assets 116.81 119.87 125.05 -2.55% -4.15%

Total Assets 201.33 204.46 210.76 -1.54% -2.98%

Investments 5.38 5.38 5.38 -0.03% 0.03%

Finance Cost 0.01 2.53 2.87 -99.60% -11.85%

Long Term Liabilities 57.71 57.65 118.62 0.10% -51.40%

Current Liabilities 803.96 803.39 722.98 0.07% 11.12%

Turnover - - - - -

Profit After Tax -1.70 -17.53 -8.41 N.A. N.A.

EPS (₹) -2.30 -3.92 -2.86 N.A. N.A.

Source - Money Control/ Stock exchange filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years:

For the period of 2014, 2015 and 2016 (Common issue observed by the Auditors for last three years): -

(A) The Financial statements have been prepared by Company on the going concern basis as fully elaborated in Note 38 of the

financial statements even though the proceedings are going on before the Board of industrial and Financial Reconstruction under

the Sick Industrial Companies (Special Provisions) Act 1985.

(B) We had reported in our audit report for the year ended 31st March 2012 as under: -

(i) The entire net worth of the Company has eroded completely; (ii) the Company has initiated the bidding process for the disposal

of production lines 1 and 4 (non- core assets) out of 4 production lines at plant situated at Gautam Budh Nagar (Uttar Pradesh)

after obtaining approval of CDR lenders and consequently impaired those production lines by ₹ 38.6691 crore and related stores

& spares by ₹ 5.1228 crore; (iii) the manufacturing operations at other production lines at plants situated at Ghaziabad (Utter

Pradesh) & Parwanoo (Himachal Pradesh) could not be resumed in the financial year due to non-participation of labour in

production process reasoning to their over-dues; (iv) the Company has defaulted in repayment of loans as per CDR scheme and

borrowings of other lenders, as elaborated in note no. 38 of the financial statements; (v) there is diminution in the value of long

term investments; (vi) reconciliation and confirmations of balances of certain major creditors and acceptances are pending; (vii)

non-redemption of 969,163, 0% redeemable preference shares of ₹ 100 each amounting to ₹ 9.6916 crore already due for

redemption; and (viii) non-payment of preference dividend for the period from 31st March 2008 to 31st March 2012 aggregating

to ₹ 7.7361 crore on 21,10,116 8% Non-Convertible Cumulative Redeemable Preference Shares.

(C) We further reported in our audit report for the year ended on 31st March, 2013 as under (i)

In view of the continued failure of the Company to disburse the legitimate dues of the workmen, Hon'ble High Court of Himachal

Pradesh (Shimla) has settled the dispute by passing an order for the closure of Deflection Yoke unit at Parwanoo (H.P) and

thereby, pay off the corresponding outstanding dues by selling the industrial undertaking/Company assets etc., (ii) the operations

have been suspended in all locations by the mid of November 12, & have not been resumed till date and consequently,

management has impaired the production lines 3&5, located at Gautam Buddh Nagar (UP) & Deflection Yoke unit located at

Parwanoo (HP) by ₹ 27,9.7706 crore and related stores & spares by ₹ 4.1035 crore etc.; (Hi) the impairment of assets of

production line 2, located at GautamBuddh Nagar (U.P.), and gun division at Meerut has not been considered by the

management on the rationale of its revival plan of running the operations by restructuring them even though in our opinion

considering the liquidity crunch, the probability of running these lines seems remote; (iv) the balances outstanding as on

31st March, 2013 of receivables & inventory are subject to confirmation & physical verification respectively due to temporary

suspension of operations & non access to inventories, (v) raw materia! & finished goods inventory amounting to ₹ 3.1190 crore

and ₹ 0.55 crore respectively have been seized by the excise authorities due to non-payment of excise dues; (vi) there is

nonsubmission of various statutory returns acknowledged by the respective authorities, non provision/deposition of various




3 | P A G E



overdue statutory liabilities like PF/Service Tax/TDS/Excise/Vat & CST/WCT/TCS/ESI/Gratuity/Bonus/ Preference dividend &

related over dues (interest and penalty), non deduction of IDS on provisional expenses; and as explained by management exact

amount of which could not be ascertained in present scenario; (viii)there is increase in diminution of investments in current year

of Rs.841.48 lac;, (ix) Assets lying with the Provident Fund trust have been transferred to Regional Provident Fund Commissioner

and those related to Gratuity Trust have been settled by adjustment of employees dues. However, as per the management,

related liability has been accounted for completely and there will be no demand over and above the same; (x) Company has

accounted for its gratuity and leave encashment liability on actual basis rather than on actuarial valuation method which has

been prescribed in Accounting Standard AS-15, "Employee Benefits".

(D) We further report that during the year ended 31st March, 2014 the facts and situation mentioned above continues.

Further the Company has not complied with the provisions of clause 35 of listing agreement (submission of shareholding pattern)

and requirements of SEBI circular no. D & CC/ FITTC/CIR-16/2002 dated 31.12.2002 regarding Reconciliation of Share Capital

Audit Report, for the quarter ended 31st December 2013. Default still continues. On Annual Report 2015 stated that This default

was made good on 23 June, 2014.However due to delay NSE has imposed a penalty of ₹ 0.0932 crore vide notice no. FINES/2013-

14/230721-T dated 17 February, 2014 which is still unpaid.

Audit Qualifications for the period of 2015

(E) We further reports that during the year ended 31st March, 2015 the facts and situation mentioned above continues Further (I)

the Company has not appointed any Chief financial officer as per the requirement of section 203 of the Companies Act 2013, in

respect of the key managerial personnel; (ii) the balances outstanding in banks (except one operative bank) are subject to

confirmation; (iii) during the financial year 2013-14, the Company had provided further diminution in long term investment in

Samtel Glass Limited of ₹ 9.3787 crore, diminution of investment in current year has not been considered by the management

since, as explained to us, the realisation value of land during disposal of Samtel Glass Limited will be higher after setting off ail

liabilities [refer note no. 37(g)j; (iv) the shares against subscription money received from Promoters Group Company of ₹ 30.00

crore, in terms ofCDR Scheme, could not be issued due to non-approval from Stock Exchange. After the lapse of extended period

as provided in MCA N/N the Company may be in default of provision of section 73 to 76 of the Companies Act, 2013 read with

Companies (Acceptance of Deposits) Rules, 2014 and relevant Amendment Rules 2015.

Audit Qualifications for the period of 2016

(A) The Financial Statements have been prepared by the Company on the going concern basis as fully elaborated in Note 37 of

the Financial statements further we also draw attention on note no. 37 and (48) of Financial Statements

(i) The declaration of the company as a sick industrial company under section 3(1) of sick Industrial Companies Act, 1985 via

order of BIFR bench dated 3rd December, 2014 against case no. 58/2012. During the year draft rehabilitation scheme in line with

prescribed procedure & rules under SICA was filed and : (a) as per direction of BIFR dated 6 th October, 2015 Company has to

submit the updated DRS after incorporation of all the observations made by ICICI (OA) and the Company has applied on behalf all

the applicant under third provision the section 15 of SICA for abatement of reference filed by the Company on account of action

taken by the OA under section 13(4) of SARFAESI Act, 2002. (b) ICICI bank authorised by other Banks/ financial Institutions has

taken physical possession of immovable properties situated at R-9/10 Raj Nagar Gaziabad (U.P.) and plot no-6, sector II

Parwanoo (H.P.) under section 13(4) of SARFAESI Act, 2002 as per the direction dated 14th July, 2014 of District Magistrate

Ghazibad for Rajnagar Property on the basis of symbolic possession of all the immovable properties of the Company pursuant to

letter dated 16th April 2014.

(ii) The Deprecation where useful life and salvage value of assets is in variance with the useful life and salvage value given in

Schedule II of Companies Act, 2013 as per the technical assessment by an independent professional valuer.

Management Responses for the period of 2014, 2015 and 2016 (Common responses given for three years): -

(A) The Company is taking necessary steps to streamline the restructured operations of some of the manufacturing facilities.

Thus, the Company feels that it can operate as "Going Concern" in foreseeable future.

(B) The Company will obtain the balance confirmation and reconciliation thereof from creditors/debtors in due course.

(C) During the year, the fixed assets of the Company were not verified by the management. However, the management does not

expect any major discrepancy.

(D) Due to suspension of operations in all the locations the physical verification of inventory could not be done on March 31, 2014




4 | P A G E



to March 31, 2016, However, the management is of the view that there are not any major discrepancies in inventory.

(E) The Company has not booked the statutory liabilities on the provision for expenses made during the year as the quantum of

exact statutory liability cannot be ascertained in the present scenario.

Management Responses for the period of 2015 and 2016

(F) The statutory payments will be cleared on availability of the funds with the company.

(G) With regard to provisions of clause 35 of listing agreement (submission of shareholding pattern) and requirements of SEBI

circular no. D & CC/ FITTC/CIR-16/2002 dated 31.12.2002 regarding Reconciliation of Share Capital Audit Report, for the quarter

ended 31st December 2013. The same has been complied with, the company has already filed the same reports with the stock

exchanges. The company has also given representation to the stock exchange with regard to cause of delay and waiver of

penalty.

(H) The company has been declared as a Sick Industrial undertaking by BIFR, Further there is no significant business activities

justifying appointment of CFO, however the company has been scouting the market for an qualified chartered accountant to be

appointed as CFO of the company. Company expects to comply with the provisions of Companies Act, 2013 expeditiously.

(I) In the view of the management the share application money of ₹ 30 crs. not refundable and doesn’t fall in the category of

deposit in pursuant to section 73 to 76 of the Companies Act 2013 read with Companies (Acceptance of Deposits) Rules 2014 and

relevant amendment Rules 2014. The warrants/shares have not been allotted to the applicant due to absence of requisite

approval of the stock exchanges for which application had submitted.

(J) The performance of the Company in the last few quarters has been impacted due to liquidity constraints resulting from lower

sales volume in the domestic and international market. During the earlier years, operations at all the locations have been

suspended due to severe financial constraints. In view of the present scenario of Colour Picture Tube business, the management

is of the view that the existing demand of CPT can be serviced by operating some of the manufacturing facilities of the Company

after approval of rehabilitation/revival scheme of BIFR. Accordingly, the Company’s financial statements have been prepared on

a going concern basis whereby realization of assets & discharge of liabilities are expected to occur in the normal course of

business.

(K) The company has provided for diminution in value of long term investments on the basis of applicable accounting standards.

In respect of investment in Samtel Glass Ltd. (SGL) the management has the opinion that the realisation value of immovable

properties of SGL will be much higher than the admitted liabilities. Thus, the long term value of the equity shares of SGL are

expected to be higher and diminution of value at this stage is not called for.

(L) Consequent to the declaration of NPA by the Lenders banks all the bank accounts have been declared non-operative. Hence

thereafter there have been no transactions in the said bank accounts.

Response Comment

Frequency of Qualifications Yes For the year 2014, 2015 & 2016

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

Are the material accounts audited by the Principal Auditors? Yes -

Do the financial statements include material unaudited financial statements? No -




5 | P A G E



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

Regulatory Norms Company

% of Independent Directors on the Board 50% 40%

% of Promoter Directors on the Board - 40%

Number of Women Directors on the Board At least 1 1

Classification of Chairman of the Board - Executive Promoter Director

Is the post of Chairman and MD held by the same person? - Yes

Average attendance of Directors in the Board meetings (%) - 85.71%

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

Independent Directors as the Chairman of the Board is an Executive Director. The Company has 40% of Independent Directors

and hence, it does not meet the regulatory requirement.

Board Diversity: The Company has 5 directors out of which 4 are male and 1 is female.

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 - - - - -

Debtors Turnover - - - - --

Fixed asset Turnover - - - - -

Current Asset Turnover - - - - -

Ret

urn

Rat

ios Operating Profit Margin - - - - -

Net Profit Margin - - - - -

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 0.11 0.11 0.12 -0.17% -11.17%

Quick Ratio 0.09 0.09 0.10 -0.19% -11.35%

Cash Ratio 0.02 0.02 0.02 -0.72% -16.91%

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

Solv

ency

Rat

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

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

Trad

ing

Rat

ios

Market Cap / Sales - - - - -

Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A.

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




6 | P A G E



TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Jun'17 Dec'16 Jun'16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 28.85 28.85 28.85 • No new equity shares were issued during

the period from Jun’ 16 to Jun’ 17.

• Promoter shareholding remains unchanged

during the above period.

• No other changes were observed in the

shareholding pattern during the said

period.

• Promoters have pledged/ encumbered

99.23% of their shareholding.

Public - Institutional shareholding 31.96 31.96 31.96

Public - Others shareholding 39.19 39.19 39.19

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 Samtel Machines & Projects Ltd. 10.55% 1 ICICI Bank Ltd. 9.99%

2 Samtel India Ltd. 6.93% 2 Punjab National Bank 7.85%

3 Cea Consultants Pvt. Ltd. 4.61% 3 Export Import Bank of India 5.65%

4 Lenient Consultants Pvt. Ltd. 2.49% 4 Union Bank of India 3.87%

5 Samtel Avionics Ltd. 2.14% 5 Amberley Estates Pvt. Ltd. 2.41%

Source: NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters Promoters have not sold/bought any shares in last one year

Preferential issue to promoters No preferential issue was made to the promoters in last one year

Preferential issue to others No preferential issue was made to other shareholders in last one year

GDRs issued by the Company The Company did not issue any GDRs in last one year

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

issued by the Company other than the preferential allotment in last one year.

Source - Annual Report 2015-16

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY - AS STATED BY THE COMPANY

Sr.

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

All the business activities contributing 10% or more of the total turnover of the Company shall be stated - Not Applicable

Source - Annual Report 2015-16

TABLE 6 - TRADING VOLUME

Jun’17 Dec’16 Jun’16

% Change

Jun’17 vs

Dec’16

Dec’16 vs

Jun’16

Trading Volume (shares) (avg. of 1 qtr) 3,932 7,672 7,648 -48.75% 0.31%

Trading Volume (shares) (high in 1 qtr) 32,266 1,01,268 89,800 -68.14% 12.77%

Trading Volume (shares) (low in 1 qtr) 2 1 35 100.00% -97.14%

Ratio - High/low trading volume 16,133 1,01,268 2,565.71 -84.07% 3846.97%

Ratio - High/average trading volume 8.21 13.20 11.74 -37.84% 12.43%




7 | P A G E



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




8 | P A G E



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



9 | P A G E



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




10 |

P A G E



DISCLAIMER

Sources Company Information

Only publicly available data has been used while making the factsheet. Our data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek, Reuters, Annual Reports, IPO Documents and Company Website.

Analyst Certification

The analysts involved in development of this factsheet certify that no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the contents of this factsheet.

Disclaimer

While SES has made every effort and has exercised due skill, care and diligence in compiling this factsheet based on publicly available information, it neither guarantees its accuracy, completeness or usefulness, nor assumes any liability whatsoever for any consequence from its use. This factsheet does not have any approval, express or implied, from any authority, nor is it required to have such approval. The users are strongly advised to exercise due diligence while using this factsheet. This factsheet in no manner constitutes an offer, solicitation or advice to buy or sell securities, nor solicits votes or proxies on behalf of any party. SES, which is a not-for-profit Initiative or its staff, has no financial interest in the companies covered in this factsheet except what is disclosed on its website. The factsheet is released in India and SES has ensured that it is in accordance with Indian laws. Person resident outside India shall ensure that laws in their country are not violated while using this factsheet; SES shall not be responsible for any such violation. All disputes subject to jurisdiction of High Court of Bombay, Mumbai.

SEBI Reg. No. INH000000016

This factsheet or any portion hereof may not be reprinted, sold, reproduced or redistributed without the written consent of Stakeholders Empowerment Services

Contact Information

Stakeholders Empowerment Services

A 202, Muktangan, Upper Govind Nagar,

Malad East, Mumbai – 400 097

Tel +91 22 4022 0322

[email protected]

[email protected]

www.sesgovernance.com

Research Analyst: Waheed Shaikh


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/