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SECTOR: AUTO REPORTING DATE: 30TH JANUARY, 2018

ANG INDUSTRIES LTD. www.angindustries.com

ANG Industries Ltd. NSE Code - ANGIND TABLE 1 - MARKET DATA (STANDALONE) (AS ON 24TH JANUARY, 2018)

Sector - Auto Ancillaries NSE Market Price (`) 6.40 NSE Market Cap. (₹ Cr.) 10.25

Face Value (`) 10.00 Equity (` Cr.) 16.09

Business Group – N.A. 52 week High/Low (₹) 13.40/5.00 Net worth (₹ Cr.)* -29.61

Year of Incorporation - 1991 TTM P/E (TTM) N.A. Traded Volume (Shares) 14,221

TTM P/BV N.A. Traded Volume (lacs) 0.91

Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 31st March, 2017

101-106, Plot No 42, 1st Floor, COMPANY BACKGROUND

3-LSC Sharda Chamber-4, Kalkaji, ANG Industries Limited is an India-based company, which is engaged in the manufacturing

of auto components and assemblies. The Company offers products and services, including

automotive components and parts, and heavy steel fabrication. The Company operates

through the segments, which include Automotive Components & Parts; Heavy Steel

Fabrication, and Off Highway Components. The Company is engaged in the manufacturing

of off highway equipment used in agriculture equipment and forestry equipment. The

Company operates both in the domestic market and overseas. The Company's

manufacturing facilities are located in Greater Noida, Gautam Budh Nagar District (Uttar

Pradesh). The Company's subsidiary is ANG Auto USA, Inc.

New Delhi - 110019

Company Website:

www.angindustries.com

Revenue and Profit Performance

The revenue of the Company decreased from ₹ 21.16 crores

to ₹ 2.86 crores from quarter ending Sep’16 to quarter ending

Sep’17. The Company made a loss of ₹ 6.43 crores in quarter

ending Sep’17 vis-a-vis making a loss of ₹ 27.87 crores in

quarter ending Sep’16.

Source: Moneycontrol

Performance vis-à-vis Market

TABLE 2- Returns

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

ANG Industries Ltd -7.91% 5.47% -17.42% -39.91%

Nifty 5.27% 6.88% 10.70% 27.19%

Nifty Auto -2.55% 2.89% 6.58% 14.35%

Source - Capitaline/NSE

0.50

0.75

1.00

1.25

1.50

Jan 17 Mar 17 May 17 Jul 17 Sep 17 Nov 17

ANG Industries Ltd NIFTY NIFTY AUTO

2.86

26.88 21.16

-6.43

-29.86 -27.87

-40

-20

0

20

40

Sep'17 Mar'17 Sep'16

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.angindustries.com/




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TABLE 3 - FINANCIALS

(₹ Cr.) Sep’17* Mar’17 Sep’16 % Change

Sep ’17 vs Mar’17 Mar’17 vs Sep’16

Net Worth N.D. -29.61 4.25 N.A. -796.71%

Current Assets N.D. 55.99 98.39 N.A. -43.09%

Non-Current Assets N.D. 105.71 110.17 N.A. -4.05%

Total Assets N.D. 161.70 208.56 N.A. -22.47%

Investments N.D. 0.69 1.59 N.A. -56.60%

Finance Cost 1.80 0.27 2.54 566.67% -89.37%

Long Term Liabilities N.D. 29.73 41.35 N.A. -28.10%

Current Liabilities N.D. 161.58 162.96 N.A. -0.85%

Turnover 2.86 26.88 21.16 -89.36% 27.03%

Profit After Tax -6.43 -29.86 -27.87 N.A. N.A.

EPS (₹) -39.95 0.00 0.00 N.A. N.A.

Source - Money Control/Stock exchange filing | *The Company has not disclosed the Standalone Balance Sheet for Quarter ending Sep’ 17.

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Statutory Auditors have raised qualification in their Report for FY 2016-17 and FY 2015-

16. No qualification was raised for FY 2014-15.

The report of Statutory Auditors for FY 2016-17, contains the following observation on the financial statement:

1. The financial results shows that the company had made the provisions of NIL in their books of account for payment of

premium to LIC on account of group gratuity cash accumulation plan during the financial year 2016-17. As the company

had not paid the premium even in this year to LIC. Further, the company has not obtained the actuary valuation from

independent actuary for the current year.

Management View: The Company has paid gratuity to the outgoing employees amounting to Rs. 40,25,165/- during the

year due to paucity of fund and mismatch in cash flow and the requisite amount in LIC Fund could not be deposited and

similarly the actuary valuation has also not done.

2. The Company has not provided interest amounting to Rs. 678.22 Lacs accrued and payable by the company on the loans

availed from State Bank of India and Bank of Baroda. All the said loans have been termed as NPA w.e.f. 30.06.2016 and the

Banks have stopped charging interest in the regular accounts of the company. Profit has been understated to the extent

interest not booked by the Company. Loan has been increased by the amount of export bills crystalized by the banks.

Management View: The Company has not provided for the interest as the banks have stopped charging the interest in the

regular account of the company in their books.

3. During the year major inventories items have been classified as obsolete and has been classified as scrap by the Company.

Out of the same major portion has been sold out during the year. However, it is not possible to quantify the impact of

losses due to this.

Management View: The company has suffered losses due to reduction in the valuation and generation of excessive scrap

due to cancellation of orders of various components like Diff. Spiders, Worm and Gear, Diff. Pins, Automatic Slack

Adjusters, Log Splitter parts, etc. from various overseas customers and Heavy Steel Fabrication for Bharat Heavy Electrical

Limited.

4. In our opinion, there are many operations which have been either closed down or production have been suspended. The

ANG Industries Limited Annual Report 2016-17 8 hundred percent of exports orders have been cancelled. The majority of

the Banks have declared the company’s account as NPA. The sources of additional funds coming to the company are

unforeseeable. This is an audit requirement for a qualification as going concern concept.

Management View: The company is making all efforts to revive its operations of the suspended production units for which

it has already submitted a detailed restructure plan to the Joint Lender Forum of the Banks and which is under




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consideration.

The Statutory Auditor have raised qualified opinion on standalone and consolidated financial statements for the FY 2015-16,

which can be found at page 20 and page 39 respectively in Annual Report for FY 2015-16.

Response Comment

Frequency of Qualifications Yes 2 years viz. FY 2015-16 and FY

2016-17.

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 -

TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)

Regulatory Norms Company

% of Independent Directors on the Board 50% 50%

% of Promoter Directors on the Board - 25%

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 (%) - 90.28%

Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015 "Listing Regulations, 2015", the Company should have at least 50% Independent Directors as there is no regular Chairman

of the Board. The Company has 50% of Independent Directors and hence, it meets the regulatory requirements.

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

TABLE 5 - FINANCIAL RATIOS

Ratios Sep’17 Mar’17 Sep’16

% Change

Sep ’17 vs

Mar’17

Mar’17 vs

Sep’16

Turn

ove

r

Rat

ios

Inventory Turnover N.A. 1.31 0.53 N.A. 147.64%

Debtors Turnover N.A. 1.22 0.59 N.A. 106.66%

Fixed asset Turnover N.A. 0.25 0.19 N.A. 32.39%

Current Asset Turnover N.A. 0.48 0.22 N.A. 123.23%

Ret

urn

Rat

ios Operating Profit Margin -116.43% -90.74% -111.01% N.A. N.A.

Net Profit Margin -224.83% -111.09% -131.71% 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 N.A. 0.35 0.60 N.A. -42.61%

Quick Ratio N.A. 0.22 0.36 N.A. -38.72%

Cash Ratio N.A. 0.08 0.14 N.A. -39.86%

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. 29.22 N.A. N.A.

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

Trad

ing

Rat

ios

Market Cap / Sales 4.47 0.44 0.83 916.13% -47.15%

Market Cap/ Net Worth N.A. N.A. 4.15 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/Stock exchange filing




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TABLE 6 - TRADING VOLUME

Particulars Dec’17 June’17 Dec’16

% Change

Dec ’17 vs

June’17

June’17 vs

Dec’16

Trading Volume (shares) (avg. of 1 qtr) 19,404 39,150 67,553 -50.44% -42.05%

Trading Volume (shares) (high in 1 qtr) 92,047 2,09,958 7,06,523 -56.16% -70.28%

Trading Volume (shares) (low in 1 qtr) 1,776 6,336 6,637 -71.97% -4.54%

Ratio - High/low trading volume 51.83 33.14 106.45 56.40% -68.87%

Ratio - High/average trading volume 4.74 5.36 10.46 -11.54% -48.72%

Source - Capitaline

TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Dec-17 Jun-17 Dec-16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 27.50 27.50 27.50 • No new equity shares were issued during the period from 1st

Jan’17 to 31st Dec’ 17.

• There was no change in the promoter shareholding during the

said period.

• The shareholding of public institution decreased by 0.16% and

that of public others increased by the same period.

• The promoters have pledged 76.36% of their shareholding.

Public - Institutional

shareholding 0.08 0.08 0.24

Public - Others

shareholding 72.42 72.42 72.26

Non - Promoter Non -

Public Shareholding 0.00 0.00 0.00

Source - NSE

MAJOR SHAREHOLDERS (AS ON 31st DECEMBER 2017)

S. No. Promoters Shareholding S. No. Public Shareholders Shareholding

1 Premjit Singh 24.40% 1 Mohammad Yousaf Dar 1.09%

2 Ang Logistics Pvt Ltd 3.11%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The Promoters shareholding decreased by 11.33% during FY 2016-17.

Preferential issue to promoters No preferential issue of shares was made to the promoters during FY 2016-17.

Preferential issue to others No preferential issue of shares was made to other shareholders during FY 2016-17.

GDRs issued by the Company The Company did not issue any GDRs during FY 2016-17.

Issue of ESOPs/ Issue of shares other

than Preferential allotment

The Company did not issue any shares to the employees under its ESOP Scheme during

FY 2016-17.

Source - Annual Report FY 2016-17

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

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

1 Automotive Components & Parts 95.50

Source - Annual Report FY 2016-17




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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



7 | 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




8 | P A G E



DISCLAIMER

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Research Analyst: Mukesh Solanki


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/