Bharatiya Global Infomedia Ltd

Transcription

1 Bharatiya Global Infomedia Ltd 31 st May, 2016 TABLE 1 MARKET DATA (STANDALONE) (As on 31 st May, 2016) NSE Code BGLOBAL NSE Market Price ( ) 5.70 NSE Market Cap. ( Cr.) 9.25 Sector IT Software Face Value ( ) Equity ( Cr.) week High/Low ( ) 6.95/2.75 Net worth ( Cr.) Business Group Indian Private TTM P/E Traded Volume (Shares) 5,000 Year of Incorporation 1994 TTM P/BV 0.06 Traded Volume (lacs) 0.29 Source Capitaline Corporate Office: B 13, LGF Amar Colony, Lajpat Nagar IV, New Delhi Company Website: COMPANY BACKGROUND Bharatiya Global Infomedia Limited was incorporated in 1994 and is based in Noida, India. The company was formerly known as Bhartiya Global Software Limited and changed its name to Bharatiya Global Infomedia Limited in November Bharatiya Global Infomedia Limited, a technology based company, provides information technology safety, security, and automation solutions and technology related to media and entertainment industry in India. It offers traffic engineering solutions, such as parking management, parking guidance, toll management, automatic vehicle counter cum classifier, automatic number plate recognition, under vehicle surveillance, and ticket dispensing systems; and facility management solutions comprising visitor management, canteen management, asset tracking, laptop tracking, file tracking, and lighting management systems, as well as CCTV, access control, perimeter fencing, etc. TABLE 2 PRICE PERFORMANCE 30 th May, th May, th May, vs 2015 % Change 2015 vs 2014 CAGR for 2 years Price ( ) % 68% 18.35% Trading Volume (Shares) (yearly avg.) 6,391 16,158 14,073 60% 15% NSE Market Cap. (in Cr.) % 68% 18.38% Source Money Control TABLE 3 FINANCIALS ( Cr.) Mar 2015 *Mar 2014 Jun 2013 Net Worth Current Assets Non Current Assets Total Assets Investments Finance Cost Long Term Liabilities Current Liabilities Turnover Profit After Tax (PAT, Cr.) EPS ( ) Source Money Control/Annual Report *The Company has changed its financial year end from June to March for a 9 months period, hence, the above numbers are not comparable. 1 P AGE

2 AUDIT QUALIFICATIONS The Auditors have made following qualifications in the Annual Report for last three years. AR : In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 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 on 31st March 2015, its Profit and Loss Account and its Cash Flow Statement for the year ended on that date subject to non provision of amount recoverable from inter corporate deposits amounting to principal amount of ` 5.50 crores along with accrued interest, thereby increasing the profit by the same amount as further detailed in note no.35 of notes on accounts, non provisions of amount of penalty imposed by SEBI of ` 6 crores as further detailed in note no.34, non provision of amount of interest on loan taken from LIC against Keyman Insurance Policy as further detailed in note no. 39, non provision for diminution in value of quoted investment amounting to ` 0.62 Lacs thereby increasing the profit by the same amount as further detailed in note no. 40 and confirmation & reconciliation of some of the accounts as further detailed in note no. 29 of the notes on accounts. AR : In our opinion and to the best of our information and according to the explanations given to us, 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 subject to non provision of amount recoverable from inter corporate deposits amounting to principal amount of ` 5.60 crores along with accrued interest, thereby increasing the profit by same amount as further detailed in note no. 35 of notes on accounts, non provision of amount of penalty imposed by SEBI of ` 6 crores as further detailed in note no. 34, non provision of amount of interest on loan taken from LIC against Keyman Insurance Policy as further detailed in note no. 40, non provision for diminution in value of quoted investments amounting to` 0.39 Lacs thereby increasing the profit by the same amount as further detailed in note no. 41 and confirmation & reconciliation of some of the accounts as further detailed in note no. 29 of the notes on account. AR : Basis for Qualified Opinion: i) No Provision has been made in the books of account of amount recoverable from inter corporate deposits amounting to principal amount of ` 6 crores along with accrued interest thereby increasing the profit by same amount as further detailed in note no. 35 of notes on accounts. Response Comment Frequency of Qualifications Have the auditors made any adverse remark in last 3 years? The Auditors have raised qualifications last three years. No Are the material accounts audited by the Principal Auditors? Do the financial statements include material unaudited financial statements? TABLE 4: BOARD PROFILE (As on 31st March, 2015) Regulatory Norms Company % of Independent Directors on the Board 50% 50% % of Promoter Directors on the Board 33.33% Number of Women Directors on the Board At least 1 2 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 (%) 83.33% 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 as on 31 st March, 2015 has 50 % of Independent Directors and hence, it meets the regulatory requirements. Board Diversity: The Company has 6 directors out of which 4 are male and 2 are female. Holding of position of MD & Chairman by same person: The Company has appointed Mr. Rakesh Bhatia as the Chairman and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of the Company is Yes No 2 P AGE

3 not a good governance practice as this may lead to concentration of power in a single person. TABLE 5 FINANCIAL RATIOS Ratios Mar 2015 Mar 2014 Jun 2013 Turnover Ratios Return Ratios Liquidity Ratios Solvency Ratios Trading Ratios % Change 2015 vs vs 2013 Inventory Turnover % 76.33% Debtors Turnover % 22.06% Fixed asset Turnover % 39.35% Current Asset Turnover % 19.20% Operating Profit Margin 5.31% 2.47% 1.81% % 36.30% Net Profit Margin 0.33% 1.71% 1.86% % 8.23% Return on Assets (ROA) 0.11% 0.91% 0.85% % 7.34% Return on Equity (ROE) 0.13% 1.13% 0.91% % 24.75% Return on Capital Employed (ROCE) N.A. 9.18% 5.11% N.A % Current Ratio % 86.33% Quick Ratio % 87.36% Cash Ratio % 89.52% Working Capital Turnover ratio % 26.57% Debt to equity ratio % % Interest Coverage Ratio N.A N.A % Market Cap / Sales % 27.06% Market Cap/ Net Worth % 40.51% Market Cap/PAT N.A N.A % Market Cap/EBITDA % 9.23% Trading Volume (shares) (avg. of 1 year) 6,570 18,623 10, % 69.65% Trading Volume (shares) (high in 1 year) 85,101 1,82,680 1,05, % 73.93% Trading Volume (shares) (low in 1 year) % 0.00% Ratio High/low trading volume 85, ,82, ,05, % 73.93% Ratio High/average trading volume % 2.53% Source Money Control Note: The financial ratios of the Company and percentage change have been calculated considering 12 months period. 3 P AGE

4 TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS Dec' 2015 Dec' 2014 Dec' 2013 Comments Shareholding Promoter shareholding 51.45% 52.00% 52.02% Public Institutional shareholding 0.00% 0.00% 0.00% Public Others shareholding 48.55% 48.00% 47.98% Non Promoter Non Public 0.00% 0.00% 0.00% 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 new equity shares issued by the Company from Dec 13 to Dec 15. The promoter shareholding decreased from 52.02% to 51.45% during said period. The promoters have not pledged any shares 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 any 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 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

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

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