stakeholders empowerment services ess dee ......kamarhati, kolkata ess dee aluminium limited is a...
TRANSCRIPT
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
1 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
Ess Dee Aluminium Ltd. NSE Code - ESSDEE TABLE 1 - MARKET DATA (STANDALONE) (AS ON 27TH NOVEMBER, 2017)
Sector - Non-Ferrous Metals NSE Market Price (`) 45.50 NSE Market Cap. (โน Cr.) 145.19
Face Value (`) 10.00 Equity (` Cr.) 32.05
Business Group โ N.A. 52 week High/Low (โน) 69.05/28.10 Net worth (โน Cr.)* -139.45
Year of Incorporation - 2004 TTM P/E (TTM) N.A. Traded Volume (Shares) 3,26,838
TTM P/BV N.A. Traded Volume (lacs) 148.71
Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 30th September, 2017
1, Sagore Dutta Ghat Road, COMPANY BACKGROUND
Kamarhati, Kolkata Ess Dee Aluminium Limited is a manufacturer and supplier of primary packaging materials
catering pharmaceutical, food and fast-moving consumer goods (FMCG) goods. The Company
operates through the advanced packaging solutions segment. It develops cold form, child
resistant and tropicalized blister packaging solutions. Its manufacturing plants are located at
Bhimpore, Daman; Taratalla Road, Kolkata; Bhenslore, Village Dunetha, Nani Daman;
Kundaim, Goa; Kamarhatti, Kolkata, and P.S. Mogra, District Hooghly. The Company's
subsidiaries include Flex Art Foil Limited and Ess Dee Aluminium Pvt. Limited.
West Begl โ 700 058,
Company Website:
www.essdee.in
Revenue and Profit Performance
The revenue of the Company decreased from โน0.14 crores to
Nil from quarter ending Sepโ16 to quarter ending Sepโ17.
The Company made a loss of โน 44.22 crores in quarter
ending Sepโ17 vis-a-vis making a loss of โน 62.17 crores in
quarter ending Sepโ16.
Source: Moneycontrol
Performance vis-ร -vis Market
TABLE 2- Returns
1-m 3-m 6-m 12-m
ESS Dee
Aluminium Ltd 20.53% 33.74% 7.44% 8.59%
Nifty 0.74% 4.09% 8.15% 27.94%
NIFTY METAL -5.21% 5.27% 27.77% 35.56%
Source - Capitaline/NSE
0.00 0.00 0.14
-44.22
-329.07
-62.17
-400
-300
-200
-100
0
100
Sep'17 Mar'17 Sep'16
Quarterly revenue and Profit (โน CRORE)
Revenue Profit
0.50
0.70
0.90
1.10
1.30
1.50
Dec 16 Feb 17 Apr 17 Jun 17 Aug 17 Oct 17
Ess Dee Aluminium Ltd NIFTY NIFTY METAL
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
2 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
TABLE 3 - FINANCIALS
(โน Cr.) Sepโ17 Marโ17 Sepโ16 % Change
Sep โ17 vs Marโ17 Marโ17 vs Sepโ16
Net Worth -139.45 181.89 571.94 -176.67% -68.20%
Current Assets 27.59 27.57 552.21 0.07% -95.01%
Non-Current Assets 933.98 1,188.22 1,012.76 -21.40% 17.32%
Total Assets 961.56 1,215.80 1,564.96 -20.91% -22.31%
Investments 13.52 13.46 13.19 0.45% 2.05%
Finance Cost 32.03 26.85 26.96 19.29% -0.41%
Long Term Liabilities 56.32 56.32 209.54 0.00% -73.12%
Current Liabilities 1,044.69 977.58 783.49 6.86% 24.77%
Turnover - - 0.14 N.A. N.A.
Profit After Tax (PAT) -44.22 -329.07 -62.17 N.A. N.A.
EPS (โน) -13.80 -102.68 -19.40 N.A. N.A.
Source - Money Control/Stock exchange filing
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: There is no Qualified opinion by the Statutory Auditors for FY 2016-17, FY 2015-16 and FY
2014-15. However, the Auditors have drawn attention under heading Emphasis of Matter. (AS DISLCOSED BY THE COMPANY IN
ANNUAL REPORT FY 2016-17 โ Page 54).
โWe refer to Note No. 2.1 to the standalone Ind AS financial statements of the Company regarding the preparation of the
financial statements by the Company based on the managementโs assumption of going concern based on the facts mentioned
therein, including the agreement to participate in the revival of the Company by prospective investors i.e. the funds managed and
/ or advised by SSG Capital Management and their associates. Further, SSG Capital Management has during the year through its
asset reconstruction entity in India taken over the loans given by one bank and is in advanced stage of negotiations for similar
restructuring / settling loans of other banks and lenders, though there exists a material uncertainty that may cast a significant
doubt about the Company's ability to continue as a going concern. Our audit opinion is not modified in this regard.โ
Response Comment
Frequency of Qualifications NA -
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% 60%
% of Promoter Directors on the Board - 20%
Number of Women Directors on the Board At least 1 0
Classification of Chairman of the Board - Promoter Non-Executive director
Is the post of Chairman and MD/CEO held by the same person? - No
Average attendance of Directors in the Board meetings (%) - 64%
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 the Chairman of the Board is
a Promoter Executive Director. The Company has 60% of Independent Directors and hence, it meets the regulatory
requirements.
Board Diversity: The Company has 5 directors, and all are male. The Board of Directors of the Company is not duly constituted
as there is no Women Director on the Board of the Company (As per Annual Report 2016-17.
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
3 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
TABLE 5 - FINANCIAL RATIOS
Ratios Sepโ17 Marโ17 Sepโ16
% Change
Sep โ17 vs
Marโ17
Marโ17 vs
Sepโ16
Turn
ove
r
Rat
ios
Inventory Turnover N.A. N.A. 0.00 - -
Debtors Turnover N.A. N.A. 0.00 - -
Fixed asset Turnover N.A. N.A. 0.00 - -
Current Asset Turnover N.A. N.A. 0.00 - -
Ret
urn
Rat
ios Operating Profit Margin N.A. N.A. -17,507.14% - -
Net Profit Margin N.A. N.A. -44,407.14% - -
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 0.03 0.03 0.70 -6.36% -96.00%
Quick Ratio 0.02 0.02 0.59 -6.31% -97.15%
Cash Ratio 0.02 0.02 0.07 -6.31% -76.05%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
ency
Rat
ios Debt to equity ratio N.A. 4.52 1.10 N.A. 310.28%
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Trad
ing
Rat
ios
Market Cap / Sales N.A. N.A. 1,157.21 N.A. N.A.
Market Cap/ Net Worth N.A. 0.77 0.28 N.A. 171.22%
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
TABLE 6 - TRADING VOLUME
Particulars Sepโ17 Marโ17 Sepโ16
% Change
Sep โ17 vs Marโ17 Marโ17 vs Sepโ16
Trading Volume (shares) (avg. of 1 qtr) 59,582 27,625 1,89,673 115.68% -85.44%
Trading Volume (shares) (high in 1 qtr) 5,72,069 1,07,454 17,63,148 432.39% -93.91%
Trading Volume (shares) (low in 1 qtr) 6,779 2,641 20,163 156.68% -86.90%
Ratio - High/low trading volume 84.39 40.69 87.44 107.41% -53.47%
Ratio - High/average trading volume 9.60 3.89 9.30 146.84% -58.16%
Source - Capitaline
TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS
Sep-17 Mar-17 Sep-16 Comments
Shar
eho
ldin
g (%
)
Promoter shareholding 57.97 57.97 57.97 โข No new equity shares were issued during the
period from 1st Oct, 16 to 30th Sept, 17.
โข No major change was observed in the shareholding
pattern during the said period.
โข The promoters have pledged or encumbered 7.04%
of their shareholding.
Public - Institutional
shareholding 4.61 4.65 4.52
Public - Others
shareholding 37.42 37.38 37.51
Non-Promoter Non-
Public Shareholding 0.00 0.00 0.00
Source - NSE
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
4 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER, 2017)
S. No. Promoters Shareholding S. No. Public Shareholders Shareholding
1 Sudip Dutta 57.00% 1 Hypnos Fund Limited 2.89%
2 Aarti Sudip Dutta 0.98% 2 Balram Bharwani 2.02%
Source - NSE
TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The promoters have not sold/bought any shares 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 16-17
TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY
Sr. No. Name and Description of main products / services % to Total turnover of the Company
1
Manufacturing of primary packaging material for Pharmaceutical, Food and
FMCG Industries 100
Source - Annual Report FY 16-17
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
5 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholdersโ 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
๐ธ๐๐ =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Companyโs share price to earnings per share of the Company
๐/๐ธ ๐๐๐ก๐๐ =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.
๐ผ๐๐ฃ๐๐๐ก๐๐๐ฆ ๐๐ข๐๐๐๐ฃ๐๐ ๐๐๐ก๐๐ =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
๐ท๐๐๐ก๐๐๐ ๐๐ข๐๐๐๐ฃ๐๐ ๐๐๐ก๐๐ =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
๐น๐๐ฅ๐๐ ๐ด๐ ๐ ๐๐ก ๐๐ข๐๐๐๐ฃ๐๐ ๐๐๐ก๐๐ =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
๐ถ๐ข๐๐๐๐๐ก ๐ด๐ ๐ ๐๐ก ๐๐ข๐๐๐๐ฃ๐๐ ๐๐๐ก๐๐ =Sales Turnover
Current Assets
Operating Profit Margin: Operating margin is a measurement of what proportion of a Companyโs revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Companyโs operating
income (also known as โoperating profitโ) during a given period by its sales during the same period.
๐๐๐๐๐๐ก๐๐๐ ๐๐๐๐๐๐ก ๐๐๐๐๐๐ =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
๐๐๐ก ๐๐๐๐๐๐ก ๐๐๐๐๐๐ =Net profit
Sales Turnover
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
6 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
๐ ๐๐ก๐ข๐๐ ๐๐ ๐ด๐ ๐ ๐๐ก๐ =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholdersโ
equity.
๐ ๐๐ก๐ข๐๐ ๐๐ ๐ธ๐๐ข๐๐ก๐ฆ =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.
๐ ๐๐ก๐ข๐๐ ๐๐ ๐ถ๐๐๐๐ก๐๐ ๐ธ๐๐๐๐๐ฆ๐๐ =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.
๐ถ๐ข๐๐๐๐๐ก ๐๐๐ก๐๐ =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
๐๐ข๐๐๐ ๐๐๐ก๐๐ =Current Assets โ Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
๐๐ข๐๐๐ ๐๐๐ก๐๐ =Current Assets โ Inventories โ 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.
๐๐๐๐๐๐๐ ๐ถ๐๐๐๐ก๐๐ ๐๐ข๐๐๐๐ฃ๐๐ ๐๐๐ก๐๐ =๐๐๐๐๐ ๐๐ข๐๐๐๐ฃ๐๐
Current Assets โ 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.
๐ท๐๐๐ก ๐ก๐ ๐ธ๐๐ข๐๐ก๐ฆ ๐๐๐ก๐๐ =๐โ๐๐๐ก ๐๐๐๐ ๐ท๐๐๐ก + ๐ฟ๐๐๐ ๐๐๐๐ ๐ท๐๐๐ก
๐๐๐ก ๐๐๐๐กโ
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.
๐ผ๐๐ก๐๐๐๐ ๐ก ๐ถ๐๐ฃ๐๐๐๐๐ ๐ ๐๐ก๐๐ =๐ธ๐๐๐๐๐๐ ๐ต๐๐๐๐๐ ๐ผ๐๐ก๐๐๐๐ ๐ก ๐๐๐ ๐๐๐ฅ
๐น๐๐๐๐๐๐ ๐ถ๐๐ ๐ก
Market Cap/Sales ratio: Market Cap/sales ratio, Priceโsales 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.
๐๐๐๐๐๐ก ๐ถ๐๐/๐๐๐๐๐ ๐๐๐ก๐๐ =๐๐๐๐๐๐ก ๐ถ๐๐
๐๐๐๐๐ ๐๐ข๐๐๐๐ฃ๐๐
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Companyโs market cap to net worth.
๐๐๐๐๐๐ก ๐ถ๐๐/๐๐๐ก๐ค๐๐๐กโ ๐๐๐ก๐๐ =๐๐๐๐๐๐ก ๐ถ๐๐
๐๐๐ก๐ค๐๐๐กโ
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Companyโs market cap to net profit.
๐๐๐๐๐๐ก ๐ถ๐๐/๐๐ด๐ ๐๐๐ก๐๐ =๐๐๐๐๐๐ก ๐ถ๐๐
๐๐๐ก ๐๐๐๐๐๐ก
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Companyโs market cap to EBITDA.
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
7 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
๐๐๐๐๐๐ก ๐ถ๐๐/๐ธ๐ต๐ผ๐๐ท๐ด ๐๐๐ก๐๐ =๐๐๐๐๐๐ก ๐ถ๐๐
๐ธ๐ต๐ผ๐๐ท๐ด
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
.
Stakeholdersโ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
8 | P A G E
SECTOR: METALS REPORTING DATE: 6TH DECEMBER, 2017
ESS DEE ALUMINIUM LTD. www.essdee.in
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 analystโs 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 โ 400 097
Tel +91 22 4022 0322
www.sesgovernance.com
Research Analyst: Mukesh Solanki