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SECTOR: CERAMIC PRODUCTS REPORTING DATE: 14TH AUGUST, 2017

Euro Ceramics Ltd www.eurovitrified.com

Euro Ceramics Ltd. NSE Code - EUROCERA TABLE 1 - MARKET DATA (STANDALONE) (AS ON 10TH AUGUST, 2017)

Sector - Ceramic Products NSE Market Price (`) 7.60 NSE Market Cap. (₹ Cr.) 24.46

Face Value (`) 10.00 Equity (` Cr.) 33.74

Business Group – N.A. 52 week High/Low (₹) 15/5.65 Net worth (₹ Cr.)* -186.23

Year of Incorporation - 2002 TTM P/E (TTM) 12.06349 Traded Volume (Shares) 4,465

TTM P/BV N.A. Traded Volume (lacs) 0.34

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

208sangam Arcade Vallabhbhai R, COMPANY BACKGROUND

Station Road Vile Parle (West), Euro Ceramics Limited is engaged in providing sanitary ware, marbles and other. The

Company's segments include Tiles Division, Aluminium Division, Sanitaryware Division

and Realty Division. It offers vitrified tiles, composite marble, sanitary ware products,

bathroom tiles and concepts, and tile-o-bond. Its vitrified tiles are used in various

applications, including commercial complexes, residential, retail and information

technology parks. It provides a range of wall tiles with matching borders and motifs. Its

vitrified tiles are manufactured in a sprawling factory at Bhachau, Kutch. Its plant capacity

is 79,971 metric tons per annum (MTPA). It also has a lignite-based 10-megawatt captive

power plant. It also manufactures composite marble with annual capacity of 90,000

MTPA. Euro Merchandise (India) Limited is the Company's subsidiary.

Mumbai – 400 056, Maharashtra

Company Website:

www.eurovitrified.com

Revenue and Profit Performance

The revenue of the Company increased from ₹9.51 crores to

₹13.32 crores from quarter ending Sep’15 to quarter ending

Sep’16. The Company made a loss of ₹6.23 crores in quarter

ending Sep’16 vis-a-vis making a loss of ₹6.57 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

Euro Ceramics Ltd -22.05% -90.13% 27.73% 10.95%

Nifty -0.72% 3.82% 11.69% 13.63%

Source - Capitaline

0.50

0.70

0.90

1.10

1.30

1.50

1.70

1.90

2.10

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

Euro Ceramics Ltd NIFTY

13.32

21.30

9.51

-6.23

6.63

-6.57-10

0

10

20

30

Sep'16 Mar'16 Sep'15

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.eurovitrified.com/




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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 -186.23 -173.35 -173.85 N.A. N.A.

Current Assets 102.4 103.04 103.66 -0.62% -0.60%

Non-Current Assets 283.14 296.58 310.41 -4.53% -4.46%

Total Assets 385.55 399.63 414.08 -3.52% -3.49%

Investments 1.34 1.34 1.34 0.00% 0.00%

Finance Cost 0.05 0.17 0.22 -70.59% -22.73%

Long Term Liabilities 31.65 31.51 46.35 0.44% -32.02%

Current Liabilities 540.13 541.47 541.58 -0.25% -0.02%

Turnover 13.32 21.3 9.51 -37.46% 123.97%

Profit After Tax (PAT) -6.23 6.63 -6.57 -193.97% N.A.

EPS (₹) -1.85 1.96 -1.95 -194.39% N.A.

Source - Money Control/ Stock Exchange Filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Statutory Auditors have raised following qualifications on Standalone financials of the

Company for the financial year 2013-14, 2014-15 and 2015-16:

Audit Qualifications for FY 2015-16

1. The attention is invited to note no.3 to the financial statements, towards the fact that the Company’s financial facilities/

arrangements including Term Loans, Working Capital Facilities and Non-Fund Based Credit Facilities have expired and

the accounts with the Banks have turned into Non-Performing Assets since more than 3 years. The Company is unable to

renegotiate, restructure or obtain replacement of financing arrangements and the banks have initiated legal

proceedings for the recovery from the Company u/s. 19 of the Debt Recovery Tribunal (DRT), u/s. 13(2) of the

Securitization & Reconstruction of Financial Assets & Enforcement of Security (Second) Interest (SARFAESI) Act, 2002 and

winding up petition at Mumbai High Court. In addition to this, the Company has been continuously incurring substantial

losses since past few years and as on March 31, 2016, the Company’s current liabilities exceed its current assets by

₹438.43 Cr. Further, the net worth of the Company has fully eroded and the Company has filed for registration u/s. 15(1)

of the Sick Industrial Companies (Special Provisions) Act, 1985, before the Hon’ble Board for Industrial & Financial

Reconstruction. All the above events indicate a material uncertainty that casts a significant doubt on the Company’s

ability to continue as a going concern and therefore it may be unable to realize its assets and discharge its liabilities in

the normal course of business. The financial results do not disclose the fact that the fundamental accounting assumption

of going concern has not been followed.

2. Attention is also drawn to note no.34 to the financial statements, the Company on the basis of registration filed u/s.

15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, before the Hon’ble Board for Industrial & Financial

Reconstruction, and the hearings for which are in process for determination of sickness; has not provided for interest on

financing facilities amounting to ₹102.51 Cr. for the year ending March 31, 2016, subject to reconciliation with banks.

Had the same been provided, the loss for the year ending March 31, 2016, would have increased by ₹102.51 Cr. The

corresponding liabilities would also have increased by ₹102.51 Cr. as at March 31, 2016.

3. Attention is also drawn to the fact that the Company has not provided for impairment or diminishing value of its assets/

investment as per ‘Accounting Standard 28 - Accounting for Impairment of Assets’ as notified under the Companies

(Accounting Standards) Rules, 2006 read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry

of Corporate Affairs in respect of Section 133 of the Companies Act, 2013. The effect of such Impairment or diminishing

value has not been quantified by the management and hence the same is not ascertainable.

4. We draw attention to the fact that financial statements are subject to receipt of confirmation of balances from all of the

debtors, loans & advances, investments, banks, sundry creditors and other liabilities. Pending receipt of confirmation of




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these balances and consequential reconciliations / adjustments, if any, the resultant impact on the financial statements

is not ascertainable.

5. We draw attention to the facts that the non-ascertainment of complete particulars of dues to Micro, Small and Medium

enterprises, if any under MSMED Act, 2006, and provisions towards interest, if any, is not ascertained at this stage which

is not in conformity with para14 of Accounting Standard 29-‘Provision, Contingent Liabilities and Contingent Assets.

Management Response:

1. The Company is operational and Manufacturing Marble and Sanitaryware Products and employed more than 200

manpower. The Company is also making serious efforts in negotiating with the banks and resolving the issues with

banks. The management has taken and been taking all diligent steps under legal advice, to defend the Company in all

the litigation. Considering the ample opportunities in the market and growth drivers for the industry per say, your

Directors are optimistic about the turnaround of the Company with the infusion of the long-term funds and with support

of the lenders. The Company can derive a comprehensive package under BIFR for the secured and unsecured lenders

with potential future earning plans, for resolution of its debts.

2. The Company on the basis of registration filed u/s. 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985,

before the Hon’ble Board for Industrial & Financial Reconstruction, and the hearings for which are in process for

determination of sickness of the Company and on the basis of negotiation with the lenders for reduction in interest,

rephasement in terms of borrowings etc., has not provided for interest to the tune of ₹ 102.51 Cr. (as per audited

standalone accounts) and ₹ 106.74 Cr. (as per audited consolidated accounts) (calculated based on last sanction letters

in hand) on financing facilities, for the year ending March 31, 2016.

3. The Company has made the provisions for diminution in the value of its investments/ assets wherever required.

Management has a policy to maintain the assets and keep them in working condition, so that its value does not get

affected in long run. The management is optimistic about realizing the value of its Assets / Investments nearest to its

carrying value, and there is no further diminution in the value of its assets/investment other than depreciation /

amortization and provided for.

4. The management hereby state that the Company is in the process of obtaining the confirmations from debtors,

creditors, lenders and loans advances in routine course of business and have obtained from some of them. The

reconciliations are made and the effects have been given in the books of accounts wherever required.

5. The Company is in the process of identifying the creditors which are Micro, Small and Medium Enterprises under MSMED

Act.


1. The attention is invited to note no.33 to the financial statements, towards the fact that the Company’s financial

facilities/arrangements including Term Loans, Working Capital Facilities and Non-Fund Based Credit Facilities have

expired and the accounts with the Banks have turned into Non-Performing Assets since more than 2 years. The Company

is unable to renegotiate, restructure or obtain replacement of financing arrangements and the banks have initiated legal

proceedings for the recovery from the Company u/s. 19 of the Debt Recovery Tribunal (DRT), u/s. 13(2) of the

Securitization & Reconstruction of Financial Assets & Enforcement of Security (Second) Interest (SARFAESI) Act, 2002 and

winding up petition at Mumbai High Court. In addition to this, the Group has been continuously incurring substantial

losses since past few years and as on March 31, 2015, the Company’s current liabilities exceed its current assets by

₹437.78 crores. Further, the net worth of the Company has fully eroded and the Company has filed for registration u/s.

15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, before the Hon’ble Board for Industrial & Financial

Reconstruction. All the above events indicate a material uncertainty that casts a significant doubt on the Company’s

ability to continue as a going concern and therefore it may be unable to realize its assets and discharge its liabilities in

the normal course of business. The financial results do not disclose the fact that the fundamental accounting assumption

of going concern has not been followed.

2. Further attention is also invited to note no.34 to the financial statements, the Company on the basis of registration filed

u/s. 15(1) of the Sick Industrial Companies (Special Provisions) Act, 1985, before the Hon’ble Board for Industrial &

Financial Reconstruction, and the hearings for which are in process for determination of sickness; has not provided for

interest on financing facilities amounting to ₹87.58 crore for the year ending March 31, 2015, subject to reconciliation




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with banks. Had the same been provided, the loss for the year ending March 31, 2015, would have increased by ₹87.58

Crore. The corresponding liabilities would also have increased by ₹87.58 crore as at March 31, 2015.

3. The Company has not provided for impairment or diminishing value of its assets/investment as per ‘Accounting Standard

28 – Accounting for Impairment of Assets’ as notified under the Companies (Accounting Standards) Rules, 2006 read

with the General Circular 15/2013 dated September 30, 2013 of the Ministry of Corporate Affairs in respect of Section

133 of the Companies Act, 2013. The effect of such Impairment or diminishing value has not been quantified by the

management and hence the same is not ascertainable.


1. The Directors would like to state that the Company is operational and Manufacturing Marble and Sanitaryware Products

and employed more than 200 manpower. The Company is also making serious efforts in negotiating with the banks and

resolving the issues with banks. The management has taken and been taking all diligent steps under legal advice, to

defend the Company in all the litigation. Considering the ample opportunities in the market and growth drivers for the

industry per say, your Directors are optimistic about the turnaround of the Company with the infusion of the long term

funds and with support of the lenders. The Company can derive a comprehensive package under BIFR for the secured

and unsecured lenders with potential future earning plans, for resolution of its debts.


before the Hon'ble Board for Industrial & Financial Reconstruction, and the hearings for which are in process for

determination of sickness and on the basis of negotiation with the lenders for reduction in interest, rephasement in

terms of borrowings etc., has not provided for interest to the tune of Rs. 87.58 crores, (calculated based on last sanction

letters in hand) on financing facilities, for the year ending March 31, 2015.

3. The Company has made the provisions for diminution in the value of its investments/assets wherever required.

Management has a policy to maintain the assets and keep them in working condition, so that its value does not get



amortization provided for.


1. The Company is unable to renegotiate, restructure or obtain replacement of financing arrangements and the banks have

initiated legal proceedings for the recovery from the Company u/s. 19 of the Debt Recovery Tribunal (DRT) and u/s. 13(2)

of the Securitization & Reconstruction of Financial Assets & Enforcement of Security (Second) Interest (SARFAESI) Act,

2002. In addition to this, the Company has been continuously incurring substantial losses since past few years and as on

March 31, 2014, the Company’s current liabilities exceed its current assets by Rs. 405.19 crores. Further, the net worth

of the Company has fully eroded and during the year the Company has filed for registration u/s. 15(1) of the Sick

Industrial Companies (Special Provisions) Act, 1985, before the Hon’ble Board for Industrial & Financial Reconstruction.

All the above events indicate a material uncertainty that casts a significant doubt on the Company’s ability to continue

as a going concern and therefore it may be unable to realize its assets and discharge its liabilities in the normal course of

business. The financial results do not disclose the fact that the fundamental accounting assumption of going concern has

not been followed.


before the Hon’ble Board for Industrial & Financial Reconstruction, and the hearings for which are in process for

determination of sickness; has not provided for interest on financing facilities amounting to Rs. 64.26 crores for the year

ending March 31, 2014. Had the same been provided, the loss for the year ending March 31, 2014, would have

increased by Rs. 64.26 crores. The corresponding liabilities would also have increased by Rs. 64.26 crores as at March

31, 2014.

3. The Company has not provided for impairment or diminishing value of its assets/investment as per ‘Accounting

Standard 28 – Accounting for Impairment of Assets’ as notified under the Companies (Accounting Standards) Rules,

2006 read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect

of Section 133 of the Companies Act, 2013. The effect of such Impairment or diminishing value has not been quantified

by the management and hence the same is not ascertainable.




5 | P A G E



4. As on March 31, 2014, the Company has investment in equity shares of wholly owned subsidiary Euro Merchandise

(India) Limited amounting to Rs. 1.43 crores and also an outstanding of Rs. 1.46 crores. The Company has also issued

corporate guarantee to Bank amounting to Rs. 16.20 crores in respect of the said subsidiary Company (as enlisted in

contingent liabilities in note no.22 to accounts). As per the latest audited financial statements of Euro Merchandise

(India) Limited the net worth of the company has fully eroded, it has been continuously incurring heavy losses and the

cash flows are under severe stress. No provision has been made in the financial statements of the company for depletion

in value of investment and the amount receivable by the company both totaling to Rs. 2.89 crores.

All the above events indicate a material uncertainty that casts a significant doubt on the Subsidiary Company’s ability to continue as a going concern and therefore it may be unable to realize its assets and discharge its liabilities in the normal course of business The Company in its financial statements has not provided for the same. Had such provision been made, the profits before tax for the year would have been lower to that extent. The effect of the same has not been quantified by the management and hence the same is not ascertainable.


1. Your directors would like to state that considering the growth opportunities available in the ceramic industry and with

the appropriate management of working capital, the Company can revive its operations to appropriate capacity and can

generate revenue. The Company can derive a comprehensive package under BIFR for the secured and unsecured lenders

with potential future earning plans, for resolution of its debts. With the changing economic scenario the management is

optimistic about the revival the Company and hence has prepared the financial statements on a going concern basis.


before the Hon'ble Board for Industrial & Financial Reconstruction, and the hearings for which are in process for

determination of sickness; has not provided for interest on financing facilities amounting to Rs. 64.26 crores for the year

ending March 31, 2014.

3. The management has a policy to maintain the assets and keep them in working condition, so that its value does not get



amortization.

4. Your directors would like to state that the said investment is strategic and long term in nature. The management is

hopeful of turning around of business of the subsidiary company and recovery of the loans and advances given to the

subsidiary. Hence in the opinion of the management, no provision is necessary for the depletion in the value of the

investment.

Response Comment

Frequency of Qualifications The auditor has raised qualification from FY2013-14 to FY2015-16.

Have the auditors made any adverse remark in last 3

years? Yes

For FY 2015-16, the Statutory Auditors have raised

concerned regarding significant doubt on the Company’s

ability to continue as a going concern and therefore it may

be unable to realize its assets and discharge its liabilities in

the normal course of business. The financial results do not

disclose the fact that the fundamental accounting

assumption of going concern has not been followed.

Are the material accounts audited by the Principal

Auditors? Yes

-

Do the financial statements include material

unaudited financial statements? No

-




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

Regulatory Norms Company

% of Independent Directors on the Board 50% 75%

% of Promoter Directors on the Board - 25%

Number of Women Directors on the Board Atleast 1 1

Classification of Chairman of the Board - 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 (%) - 100.00%

Note: During the financial year 2015-16, Mr. Nenshi L. Shah vacated from the office of Managing Director with effect from

November 30, 2015 and resigned as Director of the Company with effect from February 12, 2016. Due to death of Mr. Mahendra

V. Modi, he cessed to be a Director with effect from January 31, 2016.

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 75% of Independent

Directors and hence, it meets the regulatory requirements.

Board Diversity: As at 31st March, 2016 the Company has 4 directors out of which 1 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 0.42 0.67 0.28 -36.97% 139.83%

Debtors Turnover 0.69 1.16 0.52 -40.53% 122.76%

Fixed asset Turnover 0.05 0.07 0.03 -34.50% 134.42%

Current Asset Turnover 0.13 0.21 0.09 -37.07% 125.32%

Ret

urn

Rat

ios Operating Profit Margin 2.63% -13.71% 0.53% N.A.

-

2707.44%

Net Profit Margin -46.77% 31.13% -69.09% -250.26% N.A.

Return on Assets (ROA) N.A. 1.66% N.A. N.A. N.A.

Return on Equity (ROE) N.A. -3.82% N.A. N.A. N.A.

Return on Capital Employed (ROCE) N.A. -4.67% N.A. N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 0.19 0.19 0.19 -0.37% -0.58%

Quick Ratio 0.13 0.13 0.13 -0.30% 2.38%

Cash Ratio 0.10 0.10 0.09 -2.30% 3.03%

Working Capital Turnover ratio N.A. -0.02 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 7.00 N.A. 0.23 N.A. N.A.

Trad

ing

Rat

ios

Market Cap / Sales 1.73 0.48 1.40 265.17% -66.10%

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

Market Cap/PAT N.A. 1.53 N.A. N.A. N.A.

Market Cap/EBITDA 66.03 N.A. 266.60 N.A. N.A.

Source - Money Control




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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) 36,886 32,180 67,319 14.62% -52.20%

Trading Volume (shares) (high in 1 qtr) 1,92,336 1,44,996 4,69,169 32.65% -69.10%

Trading Volume (shares) (low in 1 qtr) 928 2,550 2,370 -63.61% 7.59%

Ratio - High/low trading volume 207.26 56.86 197.96 264.50% -71.28%

Ratio - High/average trading volume 5.21 4.51 6.97 15.73% -35.35%

Source - Capitaline

TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Jun'17 Dec'16 Jun'16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 10.50 10.50 10.50 • No new equity shares were issued during the period from June 2016 to June 17.

• There was no change in the shareholding of promoters during the said period.

• The shareholding of public Non-Institution increased from 74.80% to 77.70% during the same period.

• The promoters have pledged 99.99% of their shareholding.

Public - Institutional shareholding

11.80 15.05 14.70

Public - Non-Institutional shareholding

77.70 74.45 74.80

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 Nitesh Panchalal Shah 2.34%

1 Dharmesh Kishor Gathani 20.02%

2 Kasturben Talakshi Nandu 2.19%

2 State Bank of India - Stressed Assets

Management Branch 12.26%

3 Urmi Paresh Shah 1.36%

3 Milankumar Dhirajlal Mehta 7.34%

4 Nenshi L Shah 1.10%

4 Foreign Portfolio Investors 5.35%

5 Aspire Emerging Fund 5.35%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters 39,63,105 pledged shares of Promoters of the Company were invoked by bank

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

51,59,705 Equity Shares of Rs. 10/- each arising on conversion of Compulsorily

Convertible Debentures issued on Preferential basis pursuant to CDR scheme

approved by the CDR Cell during the FY 2015-16.

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.

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 Sanitary ware 55.06

2 Marble 43.67

3 Other 1.27

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




9 | 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



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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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