G E REPORTING ATE UGUST Indosolar Ltd....Source - Money Control/ Stock exchange filling Discussion by the Company in quarterly results (September 2016) – 1) As on 30th September,

Stakeholders’ Education | Corporate Governance Research | Corporate Governance Score | Proxy Advisory

STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: CAPITAL GOODS - ELECTRICAL EQUIPMENT REPORTING DATE: 14TH AUGUST, 2017

INDOSOLAR LTD. www.indosolar.co.in

Indosolar Ltd. NSE Code - INDOSOLAR TABLE 1 - MARKET DATA (STANDALONE) (AS ON 10TH AUGUST, 2017)

Sector - Capital Goods - Electrical Equipment NSE Market Price (`) 6.60 NSE Market Cap. (₹ Cr.) 241.03

Face Value (`) 10.00 Equity (` Cr.) 366.86

Business Group - N.A. 52 week High/Low (₹) 12.1/5.7 Net worth (₹ Cr.)* -309.77

Year of Incorporation - 2005 TTM P/E (TTM) N.A. Traded Volume (Shares) 1,76,444

TTM P/BV N.A. Traded Volume (lacs) 11.65

Registered Office: Source - Capitaline, TTM - Trailing Twelve Months,* As on 30th September 2016, N.A. – Not Applicable

C-12, Friends Colony (East), COMPANY BACKGROUND

New Delhi – 110 065 Indosolar Ltd is a leading Indian manufacturer for photovoltaic cells. The company

manufactures poly-crystalline solar photo-voltaic (SPV) cells from silicon wafers

utilizing crystalline silicon SPV cell technology for converting sunlight directly into

electricity through a process known as the 'photo-voltaic effect'. The company is

having their manufacturing facilities located at Greater Noida, Uttar Pradesh.

The company markets and sells their products to primarily module manufacturers

on a business-to-business (B2B) platform, who in turn supply to the system

integrators who install the systems for grid and off-grid (roof top) applications for

use in the domestic market as well as markets in Europe, Spain, Japan, Asia, Canada

and USA. They sell their products to various customers within the country and also

exports to other countries. Indosolar Ltd was incorporated on April 8, 2005 as a

private limited company with the name Robin Garments Pvt Ltd.

Company Website:

www.indosolar.co.in

Revenue and Profit Performance

The revenue of the Company increased from ₹ 27.56

crores to ₹ 107.36 crores from quarter ending Sep’15 to

quarter ending Sep’16. The Company made a loss of ₹

31.61 crores in quarter ending Sep’16 vis-a-vis making a

loss of ₹ 48.18 crores in quarter ending Sep’15.

Source: Moneycontrol

Performance vis-à-vis Market

TABLE 2- Returns

1-m 3-m 6-m 12-m

Indosolar Ltd. -3.65% -53.03% -5.04% -10.20%

Nifty -0.67% 4.00% 11.87% 12.97%

Source- Capitaline

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Aug16

Sep16

Oct16

Nov16

Dec16

Jan17

Feb17

Mar17

Apr17

May17

Jun17

Jul 17

Indosolar Ltd NIFTY

107.36 99.50

27.56

-31.61 -29.78-48.18-100

-50

0

50

100

150

Sep'16 Mar'16 Sep'15

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.indosolar.co.in/




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TABLE 3 - FINANCIALS

(₹ Cr.) Sep’16 Mar’16 Sep’15 % Change

Sep ’16 vs Mar’16 Mar’16 vs Sep’15

Net Worth -309.77 -238.29 -170.20 N.A. N.A.

Current Assets 87.25 50.42 60.53 73.03% -16.69%

Non-Current Assets 1,043.81 1,051.75 1,061.47 -0.75% -0.92%

Total Assets 1,131.06 1,102.18 1,121.99 2.62% -1.77%

Investments 0.00 0.00 0.00 N.A. N.A.

Finance Cost 37.23 27.28 35.27 36.47% -22.65%

Long Term Liabilities 11.39 493.48 547.60 -97.69% -9.88%

Current Liabilities 1,429.44 846.98 744.59 68.77% 13.75%

Turnover 107.35 99.46 27.21 7.93% 265.53%

Profit After Tax (PAT) -31.61 -29.78 -48.18 N.A. N.A.

EPS (₹) -0.88 -0.83 -1.35 N.A. N.A.

Source - Money Control/ Stock exchange filling

Discussion by the Company in quarterly results (September 2016) –

1) As on 30th September, 2016, the current liabilities exceed the current assets by ₹1,342.20 Cr. The Company’s bank accounts

become Non-Performing Assets “NPA” due to non-fulfilment of its obligations under sanction letters. Under CDR EG

meeting, held on 29th September 2016, our case was approved for exit under CDR mechanism and intimation of the same

was received on 11th November 2016. All long-term borrowings have been considered as current liabilities. The

management has evaluated the impact of CDR exit and is of the view that there could not be any material impact of the

same on the financial results.

2) The Company has incurred expenses in foreign currency amounting to ₹2,081.72 Cr (including imported machinery, raw

material consumed and expenses etc.) till 30th September, 2016. Being an Export Oriented Unit, Company had imported

such machinery and raw material without payment of customs duty, on the basis of an undertaking given to Special

Economic Zone that the Company shall be able to earn a positive Net Foreign Exchange (NFE) within ten years from the

commencement of its operations (i.e.16 July 2009). As at 30th September, 2016, the Company has a positive Net Foreign

Exchange Earnings of ₹99 Cr.

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: (FY 2013-14, FY 2014-15 and FY 2015-16)

Basis for Qualification FY 2015-16:

“a) The Company has continued to incur significant losses in the current year resulting in further erosion of its net worth which

had already been fully eroded during the year ended 31st March, 2014. Further, the Company has not met its liabilities due on the

first corporate debt restructuring package (₹ 594.45 Cr.) and on account of purchase of materials and capital goods (₹ 64.53 Cr.).

Further, an amount of ₹ 100.78 Cr. will become payable by 31st March, 2017. Due to continued liquidity issues, the Company

approached the consortium bankers for a second corporate debt restructuring package on the basis of a techno economic viability

study conducted by an external expert. Consortium bankers in their joint lenders meeting has decided that banks are not

considering second restructuring proposal as of now and exploring the possibility of sale to Asset Restructuring Company and/or

to invoke change in management.

b) As per the Company, despite significant downturn in global market, as a result of several initiatives by Government of India, the

domestic market has been showing an upturn of late resulting in the Company getting orders and hence continuation of

commercial production. Based on the current orders in hand (approx. 71 MW), the Company expects to operate at the significant

level of capacity till July 2016. The note of the Statement also expands on certain measures taken/expected to be announced by

the Government to support domestic manufacturers in India including the domestic content requirement etc.

c) The Company’s claim to it being eligible for certain capital incentives is still under litigation and the outcome will be known

upon the conclusion of the litigation. Also refer note 40 to the financial statement.

d) The dispute with MP Urja regarding the turnkey contract and the likely impact of the customer’s claim is uncertain. Also refer




3 | P A G E



note 41 to the financial statements.

e) The Company has not been able to meet its commitment to Special Economic Zone on the basis of which the Company imported

certain raw material and machinery without payment of custom duty. Also refer note 33 to the financial statements. On the basis

of the overall evaluation of the above factors and considering the domestic content requirements and other expression of

interests issued by certain Public Sector Units, procurement of recent orders and resumption of production in the second quarter

of year ended 31st March, 2016, a techno economic viability conducted by an external expert which forms the basis of the

application for seeking a second Corporate Debt Restructuring package and favourable decision of the High Court of Delhi in

relation to the Company’s eligibility for certain capital incentive, management believes that there is no impairment in respect of

the carrying value of its fixed assets including capital work in progress as at 31 March 2016 and that it is appropriate to prepare

the accounts on a going concern basis.”

Management Response for FY 2015-16:

“1. Due to the adverse market conditions from last four years, the Company could not meet its liabilities of ₹ 594.45 Cr. due on

the first CDR and on Account of purchase of materials and capital goods for ₹ 64.53 Cr. as mentioned in para 4(a) of the Auditors’

Report.

In view to above, the Bankers are considering the transfer of loan liabilities to some ARCs and/or to invoke change in the

management instead of considering our proposal for 2nd CDR scheme.

2. The Long-Disputed cases namely the dispute regarding the Capital Subsidy under Special Incentive Package has been decided in

the favour of the Company. Refer Delhi High Court Order WP(C) No. 3625/2013. However, the DIT

("Department") aggrieved with the said order and led writ petition with Delhi High Court to challenging the said order. The matter

is yet not concluded.

3. The Dispute with MP Urja regarding the turnkey contract is in the final stages of getting settled.

4. In view of the numerous uncertainty and accumulated losses, Auditor’s shows inability to uncertain of quantum of impairment

in respect of carrying value of fixed assets. However, the Company feels that in view of future market prospects such provision is

not necessary.”

Basis for Qualification FY 2014-15:

“a) The Company has made a profit in the current quarter though on a full year basis it has continued to incur losses resulting in

further erosion of its net worth which had already been fully eroded as at 31st March, 2014. Further the Company has not met its

liabilities (₹ 265.23 Cr.) due on the first corporate debt restructuring package and on account of purchase of materials and capital

goods (₹ 38.66 Cr.). The Company has therefore approached the bankers for a second corporate debt restructuring package on

the basis of a technical economic viability study conducted by an external expert.

b) As per the Company, despite significant downturn in global market, as a result of several initiatives by Government of India, the

domestic market has been showing an upturn of late resulting in the Company having obtained orders for 132.65 MW in the

current year which has resulted in recommencement of production in the current year ended 31 March 2015 which is expected to

ensure full capacity utilization upto May 2015. The note also expands on certain measures taken/expected to be announced by

the Government to support domestic manufacturers in India including the domestic content requirement, viability gap funding

etc.

c) The Company’s claim to it being eligible for certain capital incentives is still under litigation. (Note 35)

d) The dispute with MP Urja regarding the turnkey contract and the likely impact of the customer’s claim is uncertain. (Note 42)

e) The Company has not been able to meet its commitment to customs authorities on the basis of which the company imported

certain raw materials and machinery without payment of customs duty. (Note 35) On the basis of its overall evaluation of the

above factors and as per the techno-economic viability study conducted by an external expert, the Company believes that there is

no impairment in respect of carrying value of its fixed assets including capital work in progress as at 31st March, 2015 and it is

appropriate to prepare the accounts on a going concern basis. In our view, the full erosion of net worth, inability of the Company

to meet certain material liabilities and commitments, the fact that the impact of the government decisions (some of which are yet

to be announced) would be known only in future, the uncertainty of outcome of various litigations and claims and uncertainty

regarding whether the second corporate debt restructuring package (which, as informed to us is under consideration by the

bankers) would be sanctioned or not create material uncertainties (even though the procurement of certain orders during the




4 | P A G E



year resulting in full resumption of production is a positive factor).”

Management Response for FY 2014-15:

“1. As regards inability to meet its liabilities of ₹ 265.23 Cr. due on the first CDR and on Account of purchase of materials and

capital goods for ₹ 38.66 Cr as mentioned in para 4(a) of the Auditors’ Report, it is submitted that the Company is in the last

stages of the negotiation of 2nd CDR package and favourable policies like Domestic Content Requirements and Viability Gap

Funding etc. are expected to be announced by the Government.

2. During the year under review, the performance of the Company continues to be severely impacted due to significant downturn

in the Global Market. However, in the last two quarters of the year, company got the orders worth 132.65 Mega Watt, because of

which the Company could recommence the production and also logged in profit in the last quarter though company incurred the

loss on full year basis. Your Directors feel that the Company will be seeing a turnaround in the coming quarters keeping in view

the certain measures taken or expected to be taken by the Government to support the domestic manufacturers in India including

domestic content requirement, viability gap funding etc.

3. The Long-Disputed cases namely the dispute regarding the Capital Subsidy under Special Incentive Package has been decided in

the favour of the Company. Refer Delhi High Court No. WP 3625/2013.

4. The Dispute with MP Urja regarding the turnkey contract in in the final stages of getting settled.

5. The Dispute with the Custom’s Authorities with regards to the Show Cause Notice being received for the demand of the

Customs Duty foregone for importing 250 MW Project equipment has been dropped in the month of July 2015.

6. As regards inability of the auditors to express an opinion on financial statements and obtain all information and explanations

mentioned in para 5 of the Auditors’ Report, it is submitted that the auditors have not expressed any opinion on the financia l

results due to their inability to collect audit evidence to provide a basis for an audit opinion on account of multiple uncertainties

created by external and internal factors like consideration of 2nd Corporate Debt Restructuring proposal of the Company and other

key policy initiatives of the government etc.”

Basis for Qualification FY 2013-14: The Auditors had raised qualification on similar matters for FY 2013-14 (Pg. 31 of the AR

2013-14) as qualified opinion made for FY 2014-15 & FY 2015-16.

Response Comment

Frequency of Qualifications Yes Similar qualification in FY

13/14, 14/15 & 15/16

Have the Auditors made any adverse remark in last 3 years? No -

Are the material accounts audited by the Principal Auditors? Not Applicable* -

Do the financial statements include material unaudited financial statements? Not Applicable* -

Source-Annual report

* Not applicable as the Company does not have any subsidiary(ies) during the financial year 2015-16.

TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT – 2015-16)

Regulatory Norms Company

% of Independent Directors on the Board 50% 75%

% of Promoter Directors on the Board - 25%

Number of Women Directors on the Board At least 1 1

Classification of Chairman of the Board - Not Disclosed*

Is the post of Chairman and MD/CEO held by the same person? - No

Average attendance of Directors in the Board meetings (%) - 81.82% *Mr. Bhushan Kumar Gupta was the Executive Chairman of the Board upto 15th August 2015, he ceased to be a director and chairman due to his demise. There

after the Company has not disclosed if any Director was appointed as the Chairman.

Composition of Board: As per Regulation 17(1)(b) of the Listing Regulations, 2015, the Company should have at least 50%

Independent Directors, if there is no chairman on the Board. The Company has 75% of Independent Directors on the Board and

hence, it meets the regulatory requirements.

Board Diversity: The Company has 4 directors out of which 3 are male and 1 is female.




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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 1.94 3.78 1.18 -48.55% 218.98%

Debtors Turnover 17.77 28.52 5.16 -37.69% 452.29%

Fixed asset Turnover 0.10 0.09 0.03 8.75% 268.90%

Current Asset Turnover 1.23 1.97 0.45 -37.62% 338.76%

Ret

urn

Rat

ios Operating Profit Margin 10.58% 1.98% -24.55% 434.27% N.A.

Net Profit Margin -29.45% -29.94% -177.07% 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 0.06 0.06 0.08 2.52% -26.76%

Quick Ratio 0.02 0.03 0.05 -21.29% -43.60%

Cash Ratio 0.02 0.02 0.04 -25.35% -43.89%

Working Capital Turnover ratio N.A. N.A. N.A. N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio N.A. N.A. N.A. N.A. N.A.

Interest Coverage Ratio 0.31 0.07 N.A. 322.54% N.A.

Trad

ing

Rat

ios Market Cap / Sales 2.44 2.95 10.60 -17.52% -72.13%

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 23.01 149.07 N.A. -84.56% N.A.

Source - Money Control

TABLE 6 - TRADING VOLUME

Jun’17 Dec’16 Jun’16

% Change

Jun’ 17 vs

Dec ‘16

Dec’ 16 Vs

Jun’ 16

Trading Volume (shares) (avg. of 1 qtr) 19,43,470 2,93,774 5,59,882 561.55% -47.53%

Trading Volume (shares) (high in 1 qtr) 215,96,317 10,63,459 74,91,203 1930.76% -85.80%

Trading Volume (shares) (low in 1 qtr) 1,76,275 60,776 1,82,305 190.04% -66.66%

Ratio - High/low trading volume 122.51 17.50 41.09 600.16% -57.42%

Ratio - High/average trading volume 11.11 3.62 13.38 206.97% -72.94%

Source- Capitaline




6 | P A G E



TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Jun'17 Mar'16 Jun'16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 56.28 57.65 57.65 • The Company issued 87,31,617 equity shares

of face value ₹10 at a premium of ₹0.88 per

equity shares on preferential basis to public

shareholders pursuant to conversion of

compulsorily convertible preference shares

during the period from Jun’ 2016 to Jun’ 2017.

• The promoter shareholding decreased from

57.65% to 56.28% due to preferential issue of

shares to public others during the said period.

• The shareholding of public institution

decreased from 4.47% to 4.27% and that of

public others increased from 37.89% to

39.45% during the same period.

• The promoters have pledged 66.29% of their

shareholding.

Public - Institutional

shareholding 4.27 4.47 4.45

Public - Others shareholding 39.45 37.88 37.89

Non-Promoter Non-Public

Shareholding 0.00 0.00 0.01

Source – NSE website

MAJOR SHAREHOLDERS (AS ON 30th JUNE 2017)

S. No. Promoters Shareholding

S. No. Public Shareholders Shareholding

1 Hulas Rahul Gupta 21.91% 1 IDBI Bank Ltd 2.92%

2 Greenlite Lighting Corporation 18.87% 2 Rising Fibers Private Limited 2.38%

3 Bhushan Kumar Gupta 15.40% 3 Thomas Varghese 1.10%

Source – NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have not sold/bought any shares in last two/three year.

Preferential issue to promoters No preferential issue of shares was made to the promoters in last year.

Preferential issue to others

The Company issued 87,31,617 of face value ₹10 at a premium of ₹0.88 each to Public

on 27th May 2017 on preferential basis pursuant to conversion of compulsorily

convertible preference shares, thus increasing the shareholding of Public others, from

37.88% to 39.45%.

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 does not have any ESOP Scheme.

Source – NSE / Annual Report FY 15-16

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Sr. No. Name and Description of main products / services % to Total turnover of the Company

1 Manufacturing of Solar Cells & Module 100%

Source - Annual Report FY 15-16




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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

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




8 | P A G E



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.


http://www.investopedia.com/terms/i/invested-capital.asp

http://www.investopedia.com/articles/stocks/05/04405.asp

https://en.wikipedia.org/wiki/Stock

https://en.wikipedia.org/wiki/Market_cap

https://en.wikipedia.org/wiki/Stock



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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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