S EPORTING ATE Soma Textiles & Industries Ltd....Soma Textiles & Industries Limited is a textile conglomerate. The Company is primarily engaged in the business of manufacturing of

.

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

STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: TEXTILES REPORTING DATE: 14TH AUGUST, 2017

SOMA TEXTILES & INDUSTRIES LTD. www.somatextiles.com

Soma Textiles & Industries Ltd. NSE Code - SOMATEX TABLE 1 - MARKET DATA (STANDALONE) (AS ON 10TH AUGUST 2017)

Sector - Textiles NSE Market Price (`) 11.00 NSE Market Cap. (₹ Cr.) 37.29

Face Value (`) 10.00 Equity (` Cr.) 33.03

Business Group - Somani H L 52 week High/Low (₹) 17.05/6.55 Net worth (₹ Cr.)* 8.55

Year of Incorporation - 1940 TTM P/E (TTM) N.A. Traded Volume (Shares) 9,745

TTM P/BV N.A. Traded Volume (lacs) 1.07

Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. – Not applicable * as on 30th September 2016

2 Red Cross Place, COMPANY BACKGROUND

Kolkata, West Bengal - 700 001 Soma Textiles & Industries Limited is a textile conglomerate. The Company is primarily

engaged in the business of manufacturing of cotton yarn and textiles. The Company offers

denim fabrics, shirtings and garments. The Company's business verticals include denim fabric

business vertical, piece dyed business vertical and jeans wear business vertical. The

Company's products consist of denim fabrics, including pearl collection, vintage denim and

authentic collection, and piece-dyed fabrics. The Company's vintage denim and authentic

collections include stretch and non-stretch types. The Company's plant is located on Rakhial

Road, Ahmedabad.

Company Website:

www.somatextiles.com

Revenue and Profit Performance

The revenue of the Company decreased from ₹43.97 crores to

₹40.3 crores from quarter ending Sep’15 to quarter ending

Sep’16. The Company made a loss of ₹4.8 crores in quarter

ending Sep’16 vis-a-vis making a loss of ₹4.29 crores in quarter

ending Sep’15.

Source: Money Control

Performance vis-à-vis Market

Source - Capitaline

TABLE 2- Returns

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

Soma Textiles &

Industries Ltd -26.42% -22.27% -3.51% 52.78%

Nifty -0.72% 3.82% 11.69% 13.63%

-

0.50

1.00

1.50

2.00

2.50

Aug16

Sep16

Oct16

Nov16

Dec16

Jan17

Feb17

Mar17

Apr17

May17

Jun17

Jul17

Soma Textiles & Industries Ltd NIFTY

40.344.94 43.97

-4.8

1.52

-4.29

-20

0

20

40

60

Sep'16 Mar'16 Sep'15

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.somatextiles.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 8.55 12.43 17.11 -31.21% -27.35%

Current Assets 36.44 60.84 57.3 -40.11% 6.18%

Non-Current Assets 172.6 169.30 169.84 1.95% -0.32%

Total Assets 209.04 230.14 227.14 -9.17% 1.32%

Investments 6.09 0.34 0.34 1,691.18% 0.00%

Finance Cost 5.36 5.88 5.54 -8.84% 6.14%

Long Term Liabilities 135.62 157.63 21.21 -13.96% 643.19%

Current Liabilities 64.87 60.08 188.82 7.97% -68.18%

Turnover 40.23 44.76 43.83 -10.12% 2.12%

Profit After Tax (PAT) -4.8 1.52 -4.29 -415.79% N.A.

EPS (₹) -0.59 0.46 -1.30 -228.26% N.A.

Source - Money Control/Stock exchange filling

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: No Audit Qualifications have been issued in last 3 financial years ivz. FY 2013-14 to FY

2015-16. However, the Statutory Auditory has drawn attention on following matters:

Emphasis of Matters for the financial year 2015-16 (Standalone)

Without qualifying our opinion, we draw attention to the following matters:

(a) With immediate effect on 14th May 2016, the Company closed down the spinning and winding unit/department at

Ahmedabad because of its high operative cost and other adverse factors. Following are the details of the block of spinning

unit assets, which have been re-classified as current assets (earlier classified as fixed assets) under the head ‘Assets Held for

Sale’ at as 31st March, 2016. The above events have occurred after the balance sheet date, however, the event being

adjusting in nature, have been shown by the company has Held for Sale as per AS-10 as at 31st March, 2016. Quantification

of fluctuation for difference of book value of such block & market value is not available and hence not made as at 31st

March, 2016.

(b) The Company has defaulted in repayment of dues to banks and financial institutions and credit accounts with The State

Bank of India, Dena Bank, ICICI Bank, IDBI Bank and EXIM Bank banks have been classified as NPAs. Hence, under The

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, The State Bank of India,

Dena Bank and ICICI Bank and assigned their respective outstanding loans together with underlying securities thereto along

with all rights towards such loan to Invent Assets Securitisation & Reconstruction Private Limited (Invent ARC) during the

financial year 2015-16. Whereas IDBI Bank and EXIM Bank assigned their respective outstanding loans along with all rights

towards such loan to Invent ARC on 29th April, 2016.

(c) As per the provisions of Section 23 of SICA Act, 1985 the Accumulated Losses of the company as at 31st March 2016 have

resulted in erosion of more than 50% of its peak net worth during the four financial years immediately preceding the

financial year ended on 31st March 2016. Consequent upon the Company had become a “Potentially Sick Company” under

the said provision since FY 2013-14.

Emphasis of Matters for the financial year 2015-16 (Consolidated)

(a) We did not Audit the financial statements of the Associate ‘Soma Textiles FZC’ for which separate local UAE based auditors

were appointed. We draw attention to Note in the Director’s Reports of SOMA TEXTILE FZC relating to account receivables,

an Associates Enterprise of the Company, whereby the debtors have requested the Company for a cooling period of two

years i.e. till March, 2016. However, their financial position still not improved, they have once again requested for a period

of five years ending on 31-3-2021. Total outstanding of all debtors which are after making some part payments from the

specific debtors is AED 6.20 crore. After several rounds of deliberations SOMA TEXTILES FZC has accepted their offer and

approved for a cooling period of five years. The Independent Auditor of SOMA TEXTILES FZC does not comment on this


.



3 | P A G E



matter.

(b) The Company had advanced a loan to the tune of ₹104.44 Cr. (previous year ₹98.52 Cr.) to Soma Textiles FZC (UAE) out of

GDR proceeds, classified as long term loan. This loan has been advanced by the Company as quasi-equity in addition to the

capital contribution to Soma Textiles FZC. When the said loan was given, the said company was a wholly owned subsidiary,

however with effect from 31-03-2010, the Company’s holding in this company has diluted from 100% to 40%. In the

financial statement of Soma Textiles FZC ended as at 31-03-2016 the accumulated loss reflects at AED 5,53,238 as against

total capital of AED 9,00,000 (Including statutory reserve). Also, Soma Textiles FZC was registered in Hamriyah Free Trade

Zone - Sharjah, which now has been transferred to Soma Textiles FZC – Umm Al Quwain Free Trade Zone, which is a

different free trade zone. Our opinion is not qualified in this matter.

Emphasis of Matter for the financial year 2014-15

(a) We draw attention to Note 12.2 to the Financial Statement, relating to Account Receivables of Soma Textiles FZC, an

associate enterprise of the company, whereby the debtors have requested the company for 2 years 59 SOMA TEXTILES &

INDUSTRIES LIMITED cooling period i.e. till March 2016. The amount of such debtors is AED 6.26 crore. We are unable to

comment on said receivables of Soma Textiles FZC, which are deemed to be good by Independent Auditor of Soma Textiles

FZC-’Business Management World Auditors & Business Consultants’. The company has shown a loan amount of ₹98.52 Cr.

(Previous year ₹94.44 Cr.) given to Soma Textile FZC (UAE) out of GDR proceeds, classifies as long term loan. This loan had

been advanced by the company as a Quasi- Equity (Note 12) in addition to the capital of Soma Textile FZC when the said

loan was given, the said company was a wholly owned subsidiary, however, with effect from 31st March 2010, the

company’s holding in this company has diluted from 100% to 40%. In the financial statements of Soma Textile FZC ended as

at 31st March, 2015 the accumulated loss reflects at AED 5,64,690 as against Total Capital of AED 9,00,000 (including

Statutory Reserves). Our opinion is not qualified in this matter.

(b) As per the provisions of Section 23 of SICA Act, 1985 the Accumulated Losses of the company as at 31st March, 2015 have

resulted in erosion of more than 50% of its peak net worth during the four financial years immediately preceding the

financial year ended on 31st March, 2015. Consequent upon, the company has become a “Potentially Sick Company” under

the said provision.

Emphasis of Matter for the financial year 2013-14

(a) We draw attention to Note 12.2 to the Financial Statements, relating to Account Receivables of Soma Textiles FZC, an

associated enterprise of the company, whereby the debtors have requested the company for 2 years cooling period. The

amount of such debtors is AED 6.28 crore. We are unable to comment on the said receivables of Soma Textiles FZC, which

are deemed to be good by the Independent Auditor of Soma Textiles FZC– ‘Business Management World Auditors &

Business Consultants’. The company has shown a loan amount of ₹94.44 Cr. (Previous Year ₹85.58 Cr.) given to Soma Textile

FZC (UAE) out of GDR proceeds, classified as a long-term loan. This loan had been advanced by the Company as a Quasi-

Equity (Note 12) in addition to the Capital of Soma Textiles FZC. When the said loan was given, the said Company was a

wholly owned subsidiary, however, with effect from 31st March, 2010, the Company’s holding in this company has diluted

from 100% to 40%. In the financial statements of Soma Textile FZC ended as at 31st March, 2014 the accumulated loss

reflects at AED 585,540 as against Total Capital of AED 9,00,000 (including Statutory Reserves). Our opinion is not qualified

in this matter.

(b) We draw attention to Note 4 ‘Other Long Term Liabilities’ [Non-Current Liabilities] whereby Trade Payables by the company

against purchase of goods, to the tune of ₹20.43Cr. have been restated as Long Term [Non-Current Liabilities] from its

ordinary classification as Short Term [Current Liabilities]. The company has obtained and presented letter of confirmations

from its creditors stating that their payment is re-scheduled, becoming due as at April 2015, and that the same is

acceptable to these creditors. We have relied upon these confirmation letters as received by the company from its vendors.

Our opinion is not qualified in this matter.

(c) We draw attention to Note 35 to the Financial Statements, whereby the company has sold its Cotton Spinning Unit at

Baramti, Pune to M/s GTN Engineering (India) Ltd. at a Lump-sum consideration of ₹29.8 Crores under a Business Transfer

Agreement signed on 01st April 2013, and the company has handed over the possession of the said unit to M/s GTN

Engineering (India) Ltd. on 09th June, 2013. Our opinion is not qualified in this matter.


.



4 | P A G E



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? Yes -

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

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 - 33.33%

Number of Women Directors on the Board At least 1 1

Classification of Chairman of the Board - Non-Executive

Promoter Director

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

Average attendance of Directors in the Board meetings (%) - 91.67%

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 a Promoter/Executive Director. The Company has 50% of Independent

Directors and hence, it meets the regulatory requirements.

Board Diversity: The Company has 6 directors out of which 5 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 3.42 2.53 1.78 35.24% 42.26%

Debtors Turnover 3.53 2.53 2.29 39.44% 10.62%

Fixed asset Turnover 0.23 0.26 0.26 -11.84% 2.45%

Current Asset Turnover 1.10 0.74 0.76 50.06% -3.82%

Ret

urn

Rat

ios Operating Profit Margin 14.67% 10.63% 0.43% 37.91% 2353.21%

Net Profit Margin -11.93% 3.40% -9.79% -451.35% N.A.

Return on Assets (ROA) N.A. 0.66% N.A. N.A. N.A.

Return on Equity (ROE) N.A. 12.23% N.A. N.A. N.A.

Return on Capital Employed (ROCE) N.A. 0.89% N.A. N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 0.56 1.01 0.30 -44.53% 233.70%

Quick Ratio 0.38 0.72 0.17 -47.02% 315.41%

Cash Ratio 0.20 0.42 0.07 -51.69% 493.15%

Working Capital Turnover ratio N.A. 2.00 N.A. N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio 15.30 12.13 7.15 26.15% 69.59%

Interest Coverage Ratio 1.10 0.81 0.03 35.97% 2260.40%

Trad

ing

Rat

ios Market Cap / Sales 0.66 0.37 0.31 79.08% 19.47%

Market Cap/ Net Worth 3.11 1.33 0.79 134.00% 67.95%

Market Cap/PAT N.A. 10.87 N.A. N.A. N.A.

Market Cap/EBITDA 4.51 3.47 71.26 29.86% -95.13%

Source - Money Control


.



5 | P A G E



TABLE 6 - TRADING VOLUME

Jun’17 Dec’16 Jun’16

% Change

Jun ’17 vs

Dec’16

Dec’16 vs

Jun’15

Trading Volume (shares) (avg. of 1 qtr) 34,724 82,810 12,343 -58.07% 570.93%

Trading Volume (shares) (high in 1 qtr) 190,059 632,546 101,115 -69.95% 525.57%

Trading Volume (shares) (low in 1 qtr) 1,432 3,444 1 -58.42% 344300.00%

Ratio - High/low trading volume 132.72 183.67 101,115.00 -27.74% -99.82%

Ratio - High/average trading volume 5.47 7.64 8.19 -28.34% -6.76%

Source – Capitaline TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Jun'17 Dec'16 Jun'16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 63.66 49.28 49.28 • No new equity shares were issued during the

period from June 2016 to June 2017.

• The Promoter shareholding increased from

49.28% to 63.66% during the period.

• The shareholding of ‘public institution’

decreased from 15.14% to 0.04% and that of

‘public others’ increased from 35.59% to

36.30% during the same period.

• The promoters have pledged 11.89% of their

shareholding.

Public - Institutional

shareholding 0.04 0.04 15.14

Public - Others shareholding 36.3 50.68 35.58

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 KGPL Industries and Finvest Private Ltd. 35.72%

No major public shareholder observed on the NSE

website as on 30th June , 2017.

2 Sarvopari Investments Private Ltd. 12.13%

3 Surendra Kumar Somany 8.98%

4 Surendra Kumar Somany (HUF) 4.25%

5 Arvind Kumar Somany 2.20%

Source:NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have not sold/bought any shares during FY 2015-16.

Preferential issue to promoters No preferential issue of shares was made to the promoters during FY 2015-16.

Preferential issue to others No preferential issue of shares was made to other shareholders during FY 2015-16.

GDRs issued by the Company The Company did not issue any GDRs during FY 2015-16.

Issue of ESOPs / Issue of shares other

than Preferential allotment The Company does not have any ESOP Scheme.

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 Cloth 83.44

2 Garment 11.16

Source - Annual Report 2015-16


.



6 | 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


.



7 | 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

.



8 | 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


.



9 | 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: Anamika Dewangan


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/