Uttam Value Steels Ltd

Uttam Value Steels Ltd 31 st May, 2016 TABLE 1 MARKET DATA (STANDALONE) (As on 23 rd March, 2016) NSE Code UTTAMVALUE NSE Market Price ( ) 3.80 NSE Market Cap. ( Cr.) 2,517.68 Sector Steel Face Value ( ) 10.00 Equity ( Cr.) 660.81 52 week High/Low ( ) 5.10/2.70 Net worth ( Cr.) 397.56 Business Group: TTM P/E N.A. Traded Volume (Shares) 6,83,556 Indian Private TTM P/BV 0.01 Traded Volume (lacs) 25.98 Year of Incorporation 1970 Corporate Office: 4 th Floor, Uttam House, 69, P. D. Mello Road, Mumbai 400 009, Maharashtra Company Website: TABLE 2 PRICE PERFORMANCE Source Capitaline COMPANY BACKGROUND Uttam Value Steels Limited manufactures and markets steel and capital equipment products, and turnkey projects in India. It operates through Steel Products and Engineering Products segments. It provides hot rolled products, including HR coils, cut to length sheets, plates, and P&O sheets for defense, Indian railways, oil and gas, automobile, infrastructure projects, transmission tower, LPG cylinder manufacturers, and pre engineered building sectors; cold rolled full hard products comprising CRFH coils and sheets; galvanized hard corrugated sheets and galvanized soft coils; GP/GC sheets/coils; and engineering machinery. The Company was formerly known as Lloyds Steel Industries Limited and changed its name to Uttam Value Steels Limited in March 2013. Uttam Value Steels Limited was incorporated in 1970 and is based in Mumbai, India. The equity shares were suspended from trading w.e.f closing hours of trading 23 rd March, 2016 as per the circular by NSE. 23 rd March, 2016 29 th May, 2015 30 th May, 2014 % Change CAGR for 2 years 2016 vs 2015 2015 vs 2014 Price ( ) 3.80 4.40 7.95 13.64% 44.65% 30.86% Trading Volume (Shares) (yearly avg.) 64,627 1,11,749 85,101 42.17% 31.31% NSE Market Cap. (in Crore) 5,022.16 5,815.13 10,506.88 13.64% 44.65% 30.86% Source Money Control 1 P AGE

TABLE 3 FINANCIALS ( Cr.) 2015 2014 2013 % Change CAGR for 2 years 2015 vs 2014 2014 vs 2013 Net Worth 397.56 239.09 462.81 66.28% 48.34% 7.32% Current Assets 2,479.52 2,356.03 1,625.25 5.24% 44.96% 23.52% Non Current Assets 2,644.65 1,906.70 1,425.46 38.70% 33.76% 36.21% Total Assets 5,124.17 4,262.73 3,050.72 20.21% 39.73% 29.60% Investments 1,258.28 1,208.78 953.59 4.10% 26.76% 14.87% Finance Cost 270.31 254.37 165.76 6.27% 53.46% 27.70% Long Term Liabilities 826.20 783.38 324.91 5.47% 141.11% 59.46% Current Liabilities 3,900.41 3,240.26 2,263.00 20.37% 43.18% 31.28% Turnover 5,070.09 6,661.54 6,344.04 23.89% 5.00% 10.60% Profit After Tax (PAT, Cr.) 31.33 98.73 1.02 N.A. 9779% N.A. EPS ( ) 0.00 1.00 0.00 N.A. N.A. N.A. Source Money Control/Annual Report Discussion as per Company: In the Annual Report for FY 2014 15 the Company has mentioned that the Company has achieved a Gross Turnover of ` 5,405.65 Crores in 2014 15 as against ` 7,062.02 Crores in the previous year, showing a declined by 23.45 % over previous year. The operating EBIDTA for the year was ` 348.00 Crores as against ` 309.05 Crores in the previous year showing an increase by 12.60 %. The Company posted a loss of ` 31.33 Crores during the year as against a loss of ` 98.73 Crores in the previous year after providing depreciation of ` 109.02 Crores (Previous year ` 153.41 Crores). In the Annual Report for FY 2013 14 the Company has mentioned that the Company has achieved a Gross Turnover of ` 7,062.02 crores in 2013 14 as against ` 6,685.57 crores in the previous year, showing a growth of 5.64 % over previous year. The operating EBIDTA for the year was ` 309.05 crores as against ` 327.69 crores in the previous year. The Company posted a loss of ` 98.73 crores during the year as against a profit of ` 1.02 crores in the previous year after providing depreciation of ` 153.41 crores (Previous year ` 145.01 crores). In the Annual Report for FY 2012 13 the Company has mentioned that the Company has achieved a Gross Turnover of ` 6,685.56 crores in 2012 13 as against ` 4,053.03 crores in the previous period (9 months), showing a growth of 23 % over previous year. The operating EBIDTA for the year was ` 3,11.78 crores as against ` 154.77 crores in the previous period (9 months). The Company posted a profit of ` 1.01 crores during the year as against a loss of ` 73.45 crores in the previous period (9 months) after providing depreciation of ` 145.01 crores (Previous period ` 106.50 crores). AUDIT QUALIFICATIONS Audit Qualifications in last 3 years: The Auditors have not raised any qualifications in last three years. Response Comment Frequency of Qualifications The Auditors have not raised any qualifications. Have the auditors made any adverse remark in last 3 years? No 2 P AGE

TABLE 4: BOARD PROFILE (As on 31 st March, 2015) Regulatory Norms Company % of Independent Directors on the Board 50% 55.55% % of Promoter Directors on the Board 12.50% 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 (%) 92% 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 55% of Independent Directors and hence, it met the regulatory requirements. Board Diversity: The Company has 9 directors out of which 8 are male and 1 is female. The Company is compliant as per Clause 17 of the Listing Regulations, 2015 regarding the requirement of at least one woman director. TABLE 5 FINANCIAL RATIOS Ratios 2015 2014 2013 Turnover Ratios Return Ratios Liquidity Ratios % Change 2015 vs 2014 2014 vs 2013 Inventory Turnover 6.55 11.78 13.87 44.43% 15.05% Debtors Turnover 9.29 14.23 53.54 34.70% 73.42% Fixed asset Turnover 1.92 3.49 4.45 45.13% 21.50% Current Asset Turnover 2.04 2.83 3.90 27.68% 27.57% Operating Profit Margin 0.62% 1.48% 0.01% N.A. 14,133.49% Net Profit Margin 0.62% 1.48% 0.02% N.A. 9,318.08% Return on Assets (ROA) 0.61% 2.32% 0.03% N.A. 7,027.29% Return on Equity (ROE) 7.88% 41.29% 0.22% N.A. 18,836.58% Return on Capital Employed (ROCE) 9.02% 6.19% 10.62% 45.66% 41.71% Current Ratio 0.64 0.73 0.72 12.57% 1.24% Quick Ratio 0.44 0.55 0.52 20.89% 7.09% Cash Ratio 0.30 0.41 0.46 27.16% 11.98% Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A. Solvency Ratios Trading Ratios Debt to equity ratio 3.31 5.47 0.78 39.45% 600.62% Interest Coverage Ratio 0.88 0.61 1.00 44.49% 39.06% Market Cap / Sales 0.50 0.38 0.40 31.39% 4.77% Market Cap/ Net Worth 6.33 10.53 5.44 39.86% 93.57% Market Cap/PAT N.A. N.A. 2,468.31 N.A. N.A. Market Cap/EBITDA 302.72 300.41 183.04 0.77% 64.12% Trading Volume (shares) (avg. of 1 year) 62,244 1,34,147 64,324 53.60% 108.55% Trading Volume (shares) (high in 1 year) 7,71,749 13,27,346 10,71,915 41.86% 23.83% Trading Volume (shares) (low in 1 year) 3,216 8,074 2,728 60.17% 195.97% Ratio High/low trading volume 239.97 164.40 392.93 45.97% 58.16% Ratio High/average trading volume 12.40 9.89 16.66 25.31% 40.62% Source Money Control 3 P AGE

TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS Shareholding Promoter shareholding Public Institutional shareholding Public Others shareholding Non Promoter Non Public 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 Mar' 2016 Mar' 2015 Mar' 2014 Comments 46.12% 46.12% 51.02% 15.74% 15.90% 17.60% 38.15% 37.98% 31.38% 0.00% 0.00% 0.00% The promoter shareholding decreased from 51.02% as on Mar 14 to 46.12% as on Mar 15 due to preferential allotment of 12,70,96,774 Equity Shares to UD Industrial Holding Pte Ltd on 9 th April, 2014. The shareholding of public institution decreased from 17.6% to 15.85% and that of public others increased from 31.38% to 38.03% during the same period. The promoters have pledged 48.98% of their shareholding. 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 The Company issued 12,70,96,774 equity shares to UD Industrial Holding Pte Ltd during April 2015 through preferential allotment. The Company did not issue and GDRs during last three years The Company has not offered any Shares under Employee Stock Option/ Purchase Scheme in last three years. 4 P AGE

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 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

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

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

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