SECTOR: TEXTILES REPORTING DATE: 31 ST MAY, 2016 Alps Industries Ltd

Transcription

1 Alps Industries Ltd 31 st May, 2016 TABLE 1 MARKET DATA (STANDALONE) (As on 31 st May, 2016) NSE Code ALPSINDUS NSE Market Price ( ) 5.30 NSE Market Cap. ( Cr.) Sector Textiles Face Value ( ) Equity ( Cr.) week High/Low ( ) 8.85/1.60 Net worth ( Cr.) Business Group Indian Private TTM P/E 0.38 Traded Volume (Shares) 1,25,030 Year of Incorporation 1972 TTM P/BV N.A. Traded Volume (lacs) 6.63 Corporate Office: 57/2, Site IV Industrial Area, Sahibabad, Ghaziabad , Uttar Pradesh Company Website: TABLE 2 PRICE PERFORMANCE Source Capitaline COMPANY BACKGROUND Alps Industries Limited manufactures and sells textile products in India. The company operates in three segments: Home Furnishing & Fashion Accessories, Yarn, and Architectural Products. It offers various yarn products, including open end, carded grey single, combed grey single, compact, organic cotton, fair trade cotton, contamination free, slub, core spun lycra, reverse and zero twist, dyed, organic dyed, recycled cotton, and recycled polyester yarns; home textiles comprising drapery, blackouts, and upholstery; automotive/technical textiles; and readymade fabrics. The company also provides bedding, windows dressings, decorative pillows and accents, table linen, and kitchen linen products, as well as baby care sheets. In addition, it offers window blinds, drapery rods and curtain tracks, awnings, laminated and hardwood flooring, and automation systems. Further, the company provides pashmina silk shawls and fabrics for making scarves, stoles, accessories, men's suit linings, car seat covers, evening dresses, and night wear. Alps Industries Limited sells its products under the Le Pashmina, Sleep Dry, and Vista brand names. The company also exports its products. Alps Industries Limited was founded in 1962 and is based in Ghaziabad, India. 30 th May, th May, th May, 2014 % Change CAGR for 2016 vs vs years Price ( ) % 0.00% 60.13% Trading Volume (Shares) (yearly avg.) 37,112 11,464 5, % % NSE Market Cap. (in Cr.) % 0.00% 60.11% Source Money Control TABLE 3 FINANCIALS ( Cr.) % Change CAGR for 2015 vs vs years Net Worth N.A. N.A. N.A. Current Assets % 6.57% 2.03% Non Current Assets % 5.91% 7.31% Total Assets % 0.08% 2.72% Investments % 3.98% 33.39% Finance Cost % 13.49% 79.63% Long Term Liabilities % 12.24% 6.16% Current Liabilities % 3.30% 1.50% Turnover % 15.00% 4.23% Profit After Tax (PAT, Cr.) N.A. N.A. N.A. EPS ( ) N.A. N.A. N.A. Source Money Control/Annual Report 1 P AGE

2 STAKEHOLDERS EMPOWERMENT SERVICES AUDIT QUALIFICATIONS Audit Qualifications in last 3 years: The auditors have raised qualifications in last three years. 1) The Auditors have raised similar following Qualified Opinion in their Report for FY / / : The company has not made any provision towards losses amounting to 39,205 Lac on derivative contracts (refer to note nos. 36 (A) (c) I, II and III to the notes to account) and towards claim amounting to 6,259 Lac against the corporate guarantee provided by the company on behalf of one of its subsidiary company (Refer to note no. 36 (A) (c) IV to the notes to account), hence to these extents the loss as shown in the statement of profit and Loss, accumulated losses and current liabilities are understated. This matter was also qualified in our report on the financial statements for the year ended on 31st March ) In Annual Report for 2015 the Auditors have drawn Emphasis on following Matters: (A) To the Note no. 37 relating to non provision of interest amounting to 12, lac for the financial year on loans taken from banks/financial Institution/ARC/Subsidiary companies pursuant to consent of the secured lenders, constituting more than 83% of the outstanding secured debt of the company, to the Draft Rehabilitation Scheme (DRS) which is pending consideration before the Hon ble BIFR, which interalia envisages the complete waiver of all outstanding interest from these lenders. (B) To note no 42 regarding pending confirmation of balances from trade receivable, loans & Advances and trade payables and reconciliation thereof and ascertainment of slow, non moving and damaged inventory and impact thereof, if any. (C) To the Note no. 43 relating to non adjustment of amounts paid to secured lenders in terms of settlement reached with them, under consideration of the DRS by the Hon ble BIFR. (D) To the Note no. 45 which briefs the status of the reference of the company filed with the Hon ble Board of Industrial & Financial Reconstruction (BIFR) u/s 15 of the Sick Industrial Companies (Special Provisions) Act, The financial statements have been prepared by the company on going concern basis pending sanction of the rehabilitation scheme by the Hon ble BIFR. Our opinion is not modified in respect of these matters. Management Response: The Company has mentioned in Form B attached to Annul Report for FY 2014 that Observation in Auditor s Report are dealt within notes to accounts at appropriate place and being self explanatory, need no further explanation. Response Comment Frequency of Qualifications Have the auditors made any adverse remark in last 3 years? Yes The auditors have raised qualifications in last three years. The Auditors have mentioned in their Report for 2015 that The matters described in the Basis for Qualified Opinion paragraph and Emphasis on Matters above, in our opinion, may have an adverse effect on the functioning of the Company. Are the material accounts audited by the Principal Auditors? Do the financial statements include material unaudited financial statements? Yes No 2 P AGE

3 STAKEHOLDERS EMPOWERMENT SERVICES TABLE 4: BOARD PROFILE (As on 31 st March, 2015) Regulatory Norms Company % of Independent Directors on the Board 50% 50% % of Promoter Directors on the Board 25% 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 (%) 96.43% 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 Non Executive Director. The Company as on 31 st March, 2015 has 50 % of Independent Directors and hence, it meets the regulatory requirements. Board Diversity: The Company has 8 directors out of which 7 are male and 1 is female. The Company is compliant with regulation 17 of the Listing Regulations, 2015 regarding the requirement of at least one woman director. TABLE 5 FINANCIAL RATIOS Ratios Turnover Ratios Return Ratios Liquidity Ratios Solvency Ratios Trading Ratios % Change 2015 vs vs 2013 Inventory Turnover % 8.30% Debtors Turnover % 9.98% Fixed asset Turnover % 22.22% Current Asset Turnover % 7.91% Operating Profit Margin 4.59% 14.58% 14.37% N.A. N.A. Net Profit Margin 4.59% 14.60% 16.45% N.A. N.A. Return on Assets (ROA) 2.85% 10.77% 10.56% 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. 0.04% N.A. N.A. Current Ratio % 3.17% Quick Ratio % 3.97% Cash Ratio % 9.24% Working Capital Turnover ratio % 71.30% Debt to equity ratio N.A. N.A. N.A. N.A. N.A. Interest Coverage Ratio N.A. N.A N.A. N.A. Market Cap / Sales % 13.04% Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A. Market Cap/PAT N.A. N.A. N.A. N.A. N.A. Market Cap/EBITDA % 13.61% Trading Volume (shares) (avg. of 1 year) 33,444 20,292 12, % 62.13% Trading Volume (shares) (high in 1 year) 2,65,039 3,60,312 86, % % Trading Volume (shares) (low in 1 year) % % Ratio High/low trading volume 88, , , % 16.32% Ratio High/average trading volume % % Source Money Control 3 P AGE

4 TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS Mar' 2016 Mar' 2015 Mar' 2014 Comments Shareholding Promoter shareholding 27.06% 27.06% 27.06% No new equity shares were issued by the Company during the period from Mar 14 to Public Institutional shareholding 1.28% 2.56% 5.10% Public Others shareholding 71.66% 70.38% 67.84% Non Promoter Non Public Shareholding 0.00% 0.00% 0.00% Mar 16. There was no change in the promoter shareholding during the said period. The shareholding of public institution decreased from 5.19% to 1.28% and that of public others increased from 67.84% to 71.66% during the Mar 14 to Mar 16. The promoters have pledged 71.66% of their shareholding. TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS Market Activity of Promoters Preferential issue to promoters Preferential issue to others GDRs issued by the Company Issue of ESOPs/Issue of shares other than Preferential allotment Source Annual Report The promoters have not sold/bought any shares in last three years. No preferential issue of shares was made to the promoters in last three years. No preferential issue of shares was made to other shareholders during last three years The Company did not issue and GDRs during last three years. The Company did not issue any shares to the employees under its ESOP Scheme in last three years. 4 P AGE

5 Equity: The equity shares capital of the Company Glossary 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 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 / 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 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 Accounts recievables Fixed Asset Turnover: The fixed asset turnover ratio is a financial ratio of net sales to fixed assets Fixed Assets Current Asset Turnover: The current asset turnover ratio is a financial ratio of net sales to fixed assets Current Assets 5 P AGE

6 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 Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales Net profit Return on Assets: ROA tells you what earnings were generated from invested capital (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. 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. 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 Assets Current Liabilities Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities. Current Assets Inventories Current Liabilities Cash ratio: The ratio of the liquid assets of a Company to its current liabilities. 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. 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. 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. 6 P AGE

7 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/ Net Worth ratio: It is a valuation ratio calculated by dividing Company s market cap to net worth. / Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Company s market cap to net profit. / Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Company s market cap to 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 7 P AGE

8 DISCLAIMER Sources 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. Company Informa on Analyst Cer fica on 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. INH This factsheet or any portion hereof may not be reprinted, sold, reproduced or redistributed without the written consent of Stakeholders Empowerment Services Contact Informa on Stakeholders Empowerment Services A 202, Muktangan, Upper Govind Nagar, Malad East, Mumbai Tel research@sesgovernance.com info@sesgovernance.com Research Analyst: Sumit Tank 8 P AGE