s eporting ate ugust rasoya ...... s stakeholders’ education | orporate governance research |...
TRANSCRIPT
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
1 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
Rasoya Proteins Ltd NSE Code - RASOYPR TABLE 1 - MARKET DATA (STANDALONE) (AS ON 6TH AUGUST, 2017)
Sector - Edible Oil NSE Market Price (`) 0.15 NSE Market Cap. (₹ Cr.) 27.34
Face Value (`) 1.00 Equity (` Cr.) 170.89
Business Group – N.A. 52 week High/Low (₹) 0.25/0.1 Net worth (₹ Cr.)* -26.07
Year of Incorporation - 1992 TTM P/E (TTM) N.A. Traded Volume (Shares) 7,07,735
TTM P/BV N.A. Traded Volume (lacs) 1.06
Registered Office – Source - Capitaline, TTM - Trailing Twelve Months, N.A – Not Applicable, * As on 30th Sept, 2016.
Wanjari Village, Wani Taluka, COMPANY BACKGROUND
Yavatmal - 445 304, Maharashtra Maharashtra Soya Industries was incorporated as a public limited company in May '92 to
establish a solvent extraction plant and a vegetable oil refinery.
Company has change its name from Maharashtra Soya Industries Ltd to Rasoya Proteins
Limited.
The company set up a solvent extraction plant and a vegetable oil refinery at Wanjri near
Nagpur in Maharashtra. It produces refined edible vegetable oil through solvent
extraction process from soyabeans and oil cakes. De-oiled cakes -- the by-product, is used
as cattle feed, poultry feed and high protein food products.
Company Website:
www.rasoyaproteins.in
Revenue and Profit Performance
The revenue of the Company decreased from ₹ 30.95 crores
to ₹ 11.01 crores from quarter ending Sep’15 to quarter
ending Sep’16. The Company made a loss of ₹ 4.59 crores in
quarter ending Sep’16 vis-a-vis making a loss of ₹ 43.51 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
Rasoya Proteins Ltd -25.00% 0.00% -25.00% 0.00%
Nifty 2.93% 6.53% 14.37% 17.05%
NIFTY FMCG 6.75% 12.84% 8.64% 35.03%
Source – Capitaline / NSE
-
0.50
1.00
1.50
2.00
Aug16
Sep16
Oct16
Nov16
Dec16
Jan17
Feb17
Mar17
Apr17
May17
Jun17
Jul17
Rasoya Proteins Ltd NIFTY NIFTY FMCG
11.01 9.16 30.95
-4.59
-123.41
-43.51
-150
-100
-50
0
50
Sep'16 Mar'16 Sep'15
Quarterly revenue and Profit (₹ CRORE)
Revenue Profit
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
2 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
TABLE 3 - FINANCIALS
(₹ Cr.) Sep’16 Mar’16 Sep’15 % Change
Sep ’16 vs Mar’16 Mar’16 vs Sep’15
Net Worth -26.07 -18.57 237.40 N.A. -1.08
Current Assets 10.67 11.08 85.30 -0.04 -0.87
Non-Current Assets 453.58 463.80 667.92 -0.02 -0.31
Total Assets 464.25 474.89 753.22 -0.02 -0.37
Investments 0.26 0.26 0.21 0.00 0.25
Finance Cost -0.01 -0.71 1.17 N.A. -1.61
Long Term Liabilities 197.70 204.24 209.42 -0.03 -0.02
Current Liabilities 292.62 289.22 306.40 0.01 -0.06
Turnover 10.73 8.09 30.12 0.33 -0.73
Profit After Tax (PAT) -4.59 -123.41 -43.51 N.A. N.A.
EPS (₹) -0.03 -0.72 -0.25 N.A. N.A.
Source - Money Control/ Stock Exchange Filing
AUDIT QUALIFICATIONS
Audit Qualifications: The Auditors have raised qualification in last two years (viz. FY 2015-16 and 2014-15). Auditors
qualifications along with management response on Auditors qualification have been reproduce below.
Audit Qualifications – FY 2015-2016
a) During the year, the company has written off trade receivable to the extent of ₹197.91 crores. We are not completely
satisfied about the write off of these trade receivables without the company having taken proper recovery efforts or
legal action.
b) During the year, the company has written off stock worth ₹92.82 crores. However, subsequently the company has sold
the stock at scrap value, proceeds of which are shown under miscellaneous receipts. However, we cannot comment on
the quality of the stock since there was no appropriate certification from any outside agency regarding such stock.
c) Statement / confirmation for the bill discounting facility taken by the company for ₹19.99 crores from Bank of Baroda,
cash credit facilities from State Bank of India for ₹68.32 crores and secured loan taken from a NBFC outstanding for ₹ 5
crores was not made available for verification and the same is subject to confirmation from the respective companies.
d) As per the accounting policy of the company and as per the Accounting Standard -11 – The Effects of Changes in Foreign
Exchange rates; the exchange differences that arise on settlement of monetary items or on reporting at each balance
sheet date of the Company's monetary items at the closing rate are recognised as income or expense in the period in
which they arise. However, the company has not recognised exchange gain of ₹41 crores on account of advance given to
a subsidiary company.
e) The company in contravention of section 138 of the Companies Act, 2013 has not appointed any internal auditor with
regards to the internal audit of the company. Also, the company has not appointed any cost auditor for the year under
review which is contravention of sub section (2) of section 148 of the Companies Act, 2013.
f) Attention of the members is invited to note no. 30 regarding the financial statements of the Company having been
prepared on a going concern basis, notwithstanding the fact that its net worth is completely eroded due to cash losses in
previous and the year under review, inability to pay bank debts, substantial write offs of trade receivables and stock. The
appropriateness of the said basis is inter alia dependent on the Company's ability to infuse requisite funds for meeting
its obligations.
Management Response – FY 2015-2016
a) The Company is facing acute shortage of recovery staff and due to the peculiar nature of industry; the previous debts
are recovered when new goods are supplied. Since the Company is not able to manufacture and supply fresh stock,
debtors are not paying old dues. In order to arrive at correct picture the Company has written off Debts worth ₹ 197.91
crores and is in the process of initiating legal action against them.
b) The Company's Technical and Production General Manager conducted physical stock verification and valuation of
inventories in the form of Raw material and Finished Goods. Based on form, status and reliability of inventory they have
identified the stock worth ₹92.82 Crores unfit for production and human and animal consumption hence during the year
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
3 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
the company has sold substantial stock as scrap and the balance stock was written off to arrive at the correct picture of
the company
c) The company has made repeated request to Bank of Baroda, State Bank of India and NBFC asking them to provide them
the balance confirmation certificate in respect of the fund based facilities sanctioned to the company. However, in spite
of our repeated request they have not provided the balance confirmation and hence same was not made available
d) Foreign Exchange Gain ₹41 Crores has not been recognized in accordance with AS 11, as same pertains to the
outstanding loan to WOS at Sharjah which is not likely to be repaid by the WOS in near future since the said funds have
been earmarked for overseas operations of the company
e) During the year under review the major manufacturing facilities of the company was not in operation and with very
marginal turnover the Company has incurred heavy cash Losses. Under the given situation, the overall manpower
strength along with persons capable of handling audits and accounts was reduced drastically and hence could not also
appoint internal / cost auditor. Directors of your company will take appropriate steps to comply with the provision of the
companies Act, 2013 relating to the appointment and conduct of audit.
f) Notwithstanding the above facts the accounts of the company have been prepared on the assumption of going concern.
This is because the management is positive with regards to settlement of bank dues and infusion of fresh funds into the
company to meet the future obligations and once again to start the manufacturing facilities.
Audit Qualifications – FY 2014-2015
a) We have come across transactions of sale to the extent of ₹69.83 crores and purchase to the extent of ₹ 24 crores where
there are no adequate supporting documents trail which would prove the proper transfer of goods and completeness of
these transactions.
b) Attention is drawn to Paragraphs (ii) (c) and (iv) of the annexure to this report as regards to maintenance of inventory
records and internal control system respectively.
c) Bank statement for the bill discounting facility taken by the company for ₹19.99 crores from Bank of Baroda was not
made available for verification and the same is subject to confirmation from the bank.
d) As per the accounting policy of the company and as per the Accounting Standard -11 The Effects of Changes in Foreign
Exchange rates; the exchange differences that arise on settlement of monetary items or on reporting at each balance
sheet date of the Company's monetary items at the closing rate are recognised as income or expense in the period in
which they arise. However, the company has not recognised exchange gain of ₹29 crores on account of advance given to
a subsidiary company.
Management Response – FY 2014-2015
a) Sales transactions of Soya DOC amounting to ₹69.83 Crores as pointed out by the Auditors are the Exfactory sales made
to the new purchasers out of the return goods received from earlier purchaser. The necessary supporting documents
related to above sales such as Sales Invoice, Delivery Order, Weighment Slips, Security records and other records to the
extent available with us were made available to the Auditors.
Regarding purchases of ₹24 Crores of Soaya bean Seeds made from unregistered dealers (URD), the necessary
supporting documents such as ERP System generated relevant Contract Notes /Purchase Orders, Weighment Slips,
Goods Received Notes /DOs have been made available to the auditors. The Sauda Kacchi Chitthi instead of invoices is
issued by the URD Traders as per the prevailing trade practices related to Agro based commodity.
b) As mentioned in para (ii) (c) of the Annexure to audit Report regarding complete trail of supporting documents related
to sales and purchases and it's impact on stock records, the clarification has been given in para (a) above.
As mentioned in para (iv) of the Annexure to audit Report regarding inadequate internal control system commensurate
with the size of the company and it's nature of business with regards to purchase of inventories, sale of goods and
services, inventory management, debtors and creditors management- the clarification has been already given in para
(a) above.
c) Since the company has furnished the Corporate Guarantee to Bank of Baroda on behalf of the seed suppliers and the
Liability of ₹19.99 Crores for Repayment to Bank of Baroda has been crystallised due to non-payment of Bills Discounted
by the respective Borrowers/seed suppliers on respective due date, towards the Seed supplies made to the Company.
The Bills Discounting Facility is availed by the respective Seed Suppliers in individual capacity from Bank of Baroda and
not by the company, hence question of the having the Bank statements for the said facility with the company does not
arise.
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
4 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
Therefore, the company is not in a position to furnish any Bank Statement for said crystallized liability under Corporate
Guarantee furnished to Bank of Baroda.
d) Foreign Exchange Gain ₹ 29 Crores has not been recognized in accordance with AS 11, as same pertains to the o/s loan
to WOS at Sharjah which is not likely to be repaid by the WOS in near future since the said funds have been earmarked
for overseas operations of the company.
Response Comment
Frequency of Qualifications In last 2 Financial Years
Have the auditors made any adverse
remark in last 3 years? No
Are the material accounts audited by the
Principal Auditors? No
The proportion of 51.53% total assets as per the consolidated
accounts, which have not been audited by statutory Auditors
represent significant amount of the total assets. SES is of the
opinion that unless a material portion is audited by Auditors giving
audit report on consolidated accounts, in accordance with
Guidelines of Institute of Chartered Accountants of India, the
certifying Auditors cannot be called a Principal Auditors.
Do the financial statements include
material unaudited financial statements? Yes
The consolidated financial statements contain unaudited accounts
of 2 subsidiaries. The unaudited statements are material as it
represents 52.53% of total assets and 19.56% of total revenue with
respect to the consolidated accounts of the Company. As a material
part of the consolidated financial statements of the Company are
unaudited, this raises concern regarding the fairness of such
financial statements.
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 - 50%
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/CEO held by the same person? - Yes
Average attendance of Directors in the Board meetings (%) - 81.82%
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 requirement.
Board Diversity: The Company has 4 directors out of which 3 are male and 1 is female.
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
5 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
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 3.39 1.86 0.44 82.32% 318.90%
Debtors Turnover 2.07 2.59 2.38 -20.20% 8.79%
Fixed asset Turnover 0.02 0.02 0.05 35.62% -61.32%
Current Asset Turnover 1.01 0.73 0.35 37.72% 106.77%
Ret
urn
Rat
ios Operating Profit Margin 4.10% -1587.14% -22.61% N.A. N.A.
Net Profit Margin -42.78% -1525.46% -144.46% 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 0.04 0.04 0.28 -4.82% -86.24%
Quick Ratio 0.03 0.02 0.06 10.22% -59.22%
Cash Ratio 0.01 0.01 0.02 -36.50% -21.07%
Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.
Solv
en
cy
Rat
ios Debt to equity ratio N.A. N.A. 1.54 N.A. N.A.
Interest Coverage Ratio -44.00 N.A. N.A. N.A. N.A.
Trad
ing
Rat
ios Market Cap / Sales 2.39 4.22 1.70 -43.46% 148.21%
Market Cap/ Net Worth N.A. N.A. 0.22 N.A. N.A.
Market Cap/PAT N.A. N.A. N.A. N.A. N.A.
Market Cap/EBITDA 58.25 N.A. N.A. N.A. N.A.
Source - Money Control
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) 11,77,233 9,38,234 10,84,844 25.47% -13.51%
Trading Volume (shares) (high in 1 qtr) 1,21,64,707 38,86,322 87,30,361 213.01% -55.48%
Trading Volume (shares) (low in 1 qtr) 70,637 99,722 1,43,141 -29.17% -30.33%
Ratio - High/low trading volume 172.21 38.97 60.99 341.90% -36.10%
Ratio - High/average trading volume 10.33 4.14 8.05 149.47% -48.53%
Source - Capitaline
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
6 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS
30-Jun-17 31-Dec-16 30-Jun-16 Comments
Shar
eho
ldin
g (%
)
Promoter shareholding 17.80 19.28 19.28 • No new equity shares were issued during
the period from June 2016 to June 17.
• The promoter shareholding decreased
from 19.28% as on June 2016 to 17.80% as
on June 2017 due to sale of shares in
secondary market.
• The shareholding of public institution
increased from 7.18% to 7.19% and the
public others increased from 73.54% to
75.01% during the same period.
• The promoters have pledged 17.8% of
their shareholding.
Public - Institutional
shareholding 7.19 7.19 7.18
Public - Others
shareholding 75.01 73.54 73.54
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 Anil Narayan Lonkar 8.69% 1 IDBI Bank Ltd 6.10%
2 Ivory Exports Private Limited 2.93% 2 Amaleswara Rao Anagani 2.93%
3 Manik Anil Lonkar 2.18% 3 Religare Finvest Ltd 1.24%
4 Akshaya Lonkar 1.92% 4 Kallakathu Mathai George 1.12%
5 Rasoya Foods and Drinks Pvt Ltd 1.09%
Source - NSE
TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The Promoters of the Company sold 5,78,32,870 shares in the secondary market in last one
year.
Preferential issue to promoters No preferential issue of shares was made to the promoters in last one year.
Preferential issue to others No preferential issue of shares was made to other shareholders during last one year.
GDRs issued by the Company The Company did not issue any GDRs during last one year
Issue of ESOPs/Issue of shares
other than Preferential allotment The Company did not issue any shares to the employees under ESOP Scheme in last one year.
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 Manufacture of vegetable oils and fats through solvent extraction 25.07
2 Manufacture of fish meal 56.28
Source - Annual Report 2015-16
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
7 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
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
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
8 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
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.
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
9 | P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.in
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
Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
10 |
P A G E
SECTOR: EDIBLE OIL REPORTING DATE: 14TH AUGUST, 2017
RASOYA PROTEINS LTD www.rasoyaproteins.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 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
www.sesgovernance.com
Research Analyst: Varun Krishnan