visu international ltd - nse · 2016-06-08 · visu international ltd s stakeholders’ education |...
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Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory
STAKEHOLDERS EMPOWERMENT SERVICES
1 | P A G E
SECTOR: IT SOFTWARE REPORTING DATE: 31ST MAY, 2016
Visu International Ltd www.visuglobaledu.com
Visu International Ltd 31st May, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)
NSE Code - VISUINTL NSE Market Price (₹) 0.95 NSE Market Cap. (₹ Cr.) 4.02
Sector - IT - Software Face Value (₹) 10.00 Equity (₹ Cr.) 38.33
52-week High/Low (₹) 3.00/0.35 Net worth (₹ Cr.) 2.26
Business Group - Indian Private TTM P/E N.A. Traded Volume (Shares) 4,202
Year of Incorporation - 1997 TTM P/BV 0.42 Traded Volume (lacs) 0.04
Source - Capitaline
Corporate Office: COMPANY BACKGROUND
104-106 Lumbini Enclave, Visu International Limited provides global educational consultancy, coaching/training, and
software development services in India. The company operates in Global Education, and
Merchant and Trading Activities segments. It primarily assists students in making a choice
with regard to higher education overseas. The company also offers coaching for TOEFL, GRE,
GMAT, SAT, and IELTS; and counselling regarding the country of study, program, tuition
fees, location, pre-requisite tests, and admission requirements according to the candidate’s
profile. It places students in the universities of various countries, such as the United States,
the United Kingdom, Canada, Ireland, Singapore, Malaysia, Nepal, Kenya, Tanzania, Uganda,
France, and Spain. The company was formerly known as Visu Consultants Ltd. Visu
International Limited was founded in 1983 and is headquartered in Hyderabad, India.
The company has changed the name from M/s Visu International Limited to M/s. Ed & Tech
International Limited. w.e f. 16th Feb, 2016.
Opp NIMS Punjagutta,
Hyderabad - 500082,
Andhra Pradesh
Company Website:
www.visuglobaledu.com
TABLE 2 - PRICE PERFORMANCE
30th May,
2016
29th May,
2015
29th May,
2014
% Change CAGR for
2 years 2016 vs 2015 2015 vs 2014
Price (₹) 0.90 0.45 0.70 100.00% -35.71% 13.39%
Trading Volume (Shares)
(yearly avg.) 4,842 3,006 3,003 61.09% 0.09% -
NSE Market Cap. (in ₹ Cr.) 3.45 1.72 2.68 100.58% -35.82% 13.46%
Source - Money Control
TABLE 3 – FINANCIALS (CONSOLIDATED)*
(₹ Cr.) 2015 2014 2013 % Change CAGR for 2
years 2015 vs 2014 2014 vs 2013
Turnover 11.28 10.97 7.79 2.83% 40.82% 20.33%
Net Worth 2.26 3.02 30.73 -25.17% -90.17% -72.88%
Current Assets 0.55 1.22 13.01 -54.92% -90.62% -79.44%
Non-Current Assets 24.02 24.28 40.06 -1.07% -39.39% -22.57%
Total Assets 24.57 25.50 53.07 -3.65% -51.95% -31.96%
Investments 20.67 21.38 19.12 -3.32% 11.82% 3.97%
Finance Cost 0.05 0.55 2.13 -90.91% -74.18% -84.68%
Long Term Liabilities 16.93 17.28 14.6 -2.03% 18.36% 7.68%
Current Liabilities 5.38 5.2 7.74 3.46% -32.82% -16.63%
Profit After Tax (PAT, ₹ Cr.) -0.76 -27.71 -51.36 N.A. N.A. N.A.
EPS (₹) -0.21 -7.00 -13.00 N.A. N.A. N.A.
Source - Money Control/Annual Report
*Consolidated accounts were used as the revenue from standalone operations were only ₹ 59,713 whereas from consolidated accounts was ₹ 11.28 crores.
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SECTOR: IT SOFTWARE REPORTING DATE: 31ST MAY, 2016
Visu International Ltd www.visuglobaledu.com
AUDIT QUALIFICATIONS
Audit Qualifications in last 3 years: The auditors have not raised any qualifications in last three years. The Auditors in the latest
Annual Report for FY 2014-15 have mentioned:
In their opinion, and to the best of their information and according to the explanations given to them, the financial statements
give the information required by the Act in the manner so required and give a true and fair view in conformity with the
accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2015, its loss and its
cash flows for the year ended on that date.
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? No -
Do the financial statements include material unaudited financial statements? No -
TABLE 4: BOARD PROFILE (As on 31st March, 2015)
Regulatory Norms Company
% of Independent Directors on the Board 50% 40%
% of Promoter Directors on the Board - 20%
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? - Yes
Average attendance of Directors in the Board meetings (%) - 100%
Source - Money Control/Annual Report
Composition of Board: As per Regulation 17(i)(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 40% of Independent
Directors as 31st March, 2015 and hence, it does not meet the regulatory requirement.
Board Diversity: The Company has 5 directors out of which 4 are male and 1 is female. The Company is compliant as the SEBI
Circular dated 17th April, 2014 regarding the requirement of at least one-woman director.
Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. B. Prabhakara Reddy as the
Chairman and CEO of the Company. The appointment of a single person as the Chairman and CEO of the Company is not a good
governance practice as this may lead to concentration of power in a single person.
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3 | P A G E
SECTOR: IT SOFTWARE REPORTING DATE: 31ST MAY, 2016
Visu International Ltd www.visuglobaledu.com
TABLE 5 - FINANCIAL RATIOS (BASED ON CONSOLDIATED ACCOUNTS)
Ratios 2015 2014 2013 % Change
2015 vs 2014 2014 vs 2013
Turn
ove
r
Rat
ios
Inventory Turnover - - - - -
Debtors Turnover - - 0.61 - -
Fixed asset Turnover 0.47 0.45 0.19 3.94% 132.34%
Current Asset Turnover 20.51 8.99 0.60 128.09% 1401.71%
Ret
urn
Rat
ios
Operating Profit Margin -6.74% -258.61% -282.67% N.A. N.A.
Net Profit Margin -6.74% -252.60% -659.31% N.A. N.A.
Return on Assets (ROA) -3.09% -108.67% -96.78% N.A. N.A.
Return on Equity (ROE) -33.63% -917.55% -167.13% 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 0.10 0.23 1.68 -56.43% -86.04%
Quick Ratio 0.10 0.23 1.68 -56.43% -86.04%
Cash Ratio 0.10 0.23 1.68 -56.43% -86.04%
Working Capital Turnover ratio N.A. N.A. 1.48 N.A. N.A.
Solv
ency
Rat
ios Debt to equity ratio 6.85 5.29 0.52 29.61% 910.59%
Interest Coverage Ratio N.A. N.A. N.A. N.A. N.A.
Trad
ing
Rat
ios
Market Cap / Sales 0.42 0.43 0.61 -2.75% -28.99%
Market Cap/ Net Worth 2.10 1.57 0.15 33.63% 917.55%
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.
Trading Volume (shares) (avg. of 1
year) 4,680 3,191 3,170 46.66% 0.67%
Trading Volume (shares) (high in 1
year) 1,26,680 30,500 37,654 315.34% -19.00%
Trading Volume (shares) (low in 1
year) 3.00 1.00 1.00 200.00% 0.00%
Ratio - High/low trading volume 42,226.67 30,500.00 37,654.00 38.45% -19.00%
Ratio - High/average trading
volume 27.07 9.56 11.88 183.21% -19.54%
Source - Money Control
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SECTOR: IT SOFTWARE REPORTING DATE: 31ST MAY, 2016
Visu International Ltd www.visuglobaledu.com
TABLE 6(A): OWNERSHIP & MANAGEMENT RISKS
Sep' 2015 Sep' 2014 Sep’ 2013 Comments
Promoter shareholding 14.42% 14.42% 14.42% No change was observed in the
shareholding pattern during the
period from Sep’13 to Sep’15. The
promoters have not pledged any
shares. No new equity shares were
issued during the said period.
Public - Institutional shareholding - - -
Public - Others shareholding 85.58% 85.58% 85.58%
Non Promoter Non Public Shareholding - - -
TABLE 6(B): OWNERSHIP & MANAGEMENT RISKS
Market Activity of Promoters The promoters have not sold/bought any shares in last three years
Preferential issue to promoters No preferential issue of shares was made to the promoters in last three years
Preferential issue to others No
GDRs issued by the Company The Company did not issue GDRs during last three years
Issue of ESOPs/Issue of shares other than
Preferential allotment The Company does not have any stock option scheme.
Source - Annual Report
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SECTOR: IT SOFTWARE REPORTING DATE: 31ST MAY, 2016
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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
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SECTOR: IT SOFTWARE REPORTING DATE: 31ST MAY, 2016
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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
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
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SECTOR: IT SOFTWARE REPORTING DATE: 31ST MAY, 2016
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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.
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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Sources Company Information
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data sources include: BSE, NSE, SEBI, Capitaline, Moneycontrol, Businessweek,
Reuters, Annual Reports, IPO Documents and Company Website.
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Research Analyst: Sudarshan Shetty