Tricom India Ltd - NSE · Tricom India Ltd. ... among high networth investors in India and abroad...

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1 | P A G E

Tricom India Ltd. www.tricominfo.com

SECTOR: IT-SOFTWARE REPORTING DATE: 31ST MAY, 2016

Tricom India Ltd 31st May, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)

NSE Code - TRICOM NSE Market Price (₹) 1.40 NSE Market Cap. (₹ Cr.) 11.72

Sector - IT - Software Face Value (₹) 2.00 Equity (₹ Cr.) 15.84

52 week High/Low (₹) 3.45/ 1.15 Net worth (₹ Cr.) 74.36

Business Group – Indian Private TTM P/E N.A. Traded Volume (Shares) 1,471

Year of Incorporation – 1992 TTM P/BV 0.02 Traded Volume (lacs) 0.02

Source - Capitaline

Corporate Office: COMPANY BACKGROUND

Tricom House, Gandhi Estate, Tricom India Ltd [Tricom Finance Ltd (TFL)], promoted by Mr W M Bhagat, Mr V Srinivas

and Associates is incorporated in 1992 with the aim of providing professional financial

services to the Indian capital market and is engaged in providing fund-based and fee

based financial services to the corporate sectors and individual investors. Its activities also

constitute equity trading, marketing of public issues and leasing and hire purchase

activities. In Feb'96 TFL chalked out a major expansion programme for strengthening the

above activities and to enter the lucrative areas of merchant banking and lease portfolio

management and other activities such as private placements, Marketing of public issues

among high networth investors in India and abroad and sub-underwriting of public issues.

The Company has demerged its Finance & Investment division into a separate unlisted

company i.e. Trio Mercantile & Trading Ltd w.e.f. 16th July, 2002.

Andheri Kurla Road, Safed Pool,

Mumbai – 400 072, Maharashtra

Company Website:

www.tricomdata.com

TABLE 2 - PRICE PERFORMANCE

30th May,

2016

29th May,

2015

30th May,

2014

% Change CAGR for 2

years 2016 vs 2015 2015 vs 2014

Price (₹) 1.40 2.00 1.30 -30.00% 53.85% 3.77%

Trading Volume (Shares)

(yearly avg.) 15,953 21,373 5,884 -25.36% 263.27% -

NSE Market Cap. (in ₹ Cr.) 11.09 15.84 10.30 -29.99% 53.79% 3.76%

Source - Money Control

http://www.tricominfo.com/

http://www.tricomdata.com/



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TABLE 3 - FINANCIALS

(₹ Cr.) 2015 2014 2013 % Change CAGR for

2 years 2015 vs 2014 2014 vs 2013

Net Worth 74.36 100.59 131.74 -26.08% -23.65% -24.87%

Current Assets 29.28 48.94 84.08 -40.17% -41.79% -40.99%

Non-Current Assets 169.81 177.51 156.79 -4.34% 13.22% 4.07%

Total Assets 199.09 226.45 240.87 -12.08% -5.99% -9.09%

Investments 134.88 131.61 130.19 2.48% 1.09% 1.79%

Finance Cost 8.64 17.96 22.15 -51.89% -18.92% -37.54%

Long Term Liabilities 33.18 45.62 45.23 -27.27% 0.86% -14.35%

Current Liabilities 90.39 80.24 63.90 12.65% 25.57% 18.94%

Turnover 25.40 34.82 44.15 -27.05% -21.13% -24.15%

Profit After Tax (PAT - ₹ Cr.) -26.57 -31.15 -15.40 N.A. N.A. N.A.

EPS (₹) -3.00 -4.00 -2.00 N.A. N.A. N.A.

Source - Money Control/Annual Report

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Auditors have raised following qualifications in last three years Annual Reports.

Detailed Auditors report can be read on Page 41 of Annual Report for FY 2014-15

As per Section 205(1) of the Companies act, 1956, if the dividend has not been paid within the prescribed time then

unpaid dividend has to be transfer to special account with schedule bank. The Company has declared dividend of ₹

1.31 crores in its Annual General Meeting held on 31st December, 2011. Due to paucity of funds, the amount of ₹0.78

crores as on 31st March, 2015 has not been transferred to special account as per section 205(1) of the Companies act,

1956.

The Company has not made the provision for interest on deposit of ₹ 0.14 lacs as specified in Note no. 3.7. Due to

non-provision of said amount, deficit in statement of Profit and Loss under Reserve and Surplus has been Shown less

to this extent. This affects the accounting principles of accrual and consistency as per AS - 1 issue by the Institute of

Chartered Accountants of India.

Management Response on Auditors qualifications:

Non-compliance of Section 205(1A) of the Company’s Act, 1956:- Due to liquidity crunch faced by the Company, there

has been a delay in payment of dividend to some shareholders.

Non provision of interest amount:- Due to severe financial crisis, the Company has requested some of the lenders to

waive off some part of their interest on loan and negotiation on said matter is going on between the Company and the

lenders. On the basis of discussion with lenders, management feels that no interest provision is required on loan from

some of the lenders however, if any interest provision is required as per final negotiation it will be made as and when

required.

Response Comment

Frequency of Qualifications - The Auditors have raised qualifications in last three years

Annual Reports

Have the Auditors made any adverse remark in

last 3 years? No -

Are the material accounts audited by the

Principal Auditors? Yes -

Do the financial statements include material

unaudited financial statements? No -


http://www.moneycontrol.com/annual-report/tricomindia/TI29/2015



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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 - 50%

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 an Executive Promoter Director. The Company as on 31st March, 2015

has 50% of Independent Directors in 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.

Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Chetan Kothari as the

Chairman and Managing Director of the Company. Appointment of a single person as the Chairman and Managing Director of

the Company is not a good governance practice as this may lead to concentration of power in a single person.

TABLE 5 - FINANCIAL RATIOS

Ratios 2015 2014 2013 % Change

2015 vs 2014 2014 vs 2013

Turn

ove

r

Rat

ios

Inventory Turnover - - 2.64 - -

Debtors Turnover 1.20 0.88 0.95 36.84% -7.50%

Fixed asset Turnover 0.15 0.20 0.28 -23.75% -30.34%

Current Asset Turnover 0.87 0.71 0.53 21.93% 35.50%

Ret

urn

Rat

ios Operating Profit Margin -62.95% -44.34% -32.23% N.A. N.A.

Net Profit Margin -104.61% -89.46% -34.88% N.A. N.A.

Return on Assets (ROA) -13.35% -13.76% -6.39% N.A. N.A.

Return on Equity (ROE) -35.73% -30.97% -11.69% N.A. N.A.

Return on Capital Employed (ROCE) N.A. 2.87% 8.64% N.A. -66.83%

Liq

uid

ity

Rat

ios

Current Ratio 0.32 0.61 1.32 -46.89% -53.65%

Quick Ratio 0.32 0.61 1.05 -46.89% -42.15%

Cash Ratio 0.09 0.12 0.33 -22.28% -64.49%

Working Capital Turnover ratio N.A. N.A. 2.19 N.A. N.A.

Solv

ency

Rat

ios Debt to equity ratio 0.70 0.72 0.58 -2.54% 24.52%

Interest Coverage Ratio N.A. 0.14 0.36 N.A. -60.76%

Trad

ing

Rat

ios

Market Cap / Sales 0.65 0.48 0.38 37.09% 26.79%

Market Cap/ Net Worth 0.22 0.17 0.13 35.27% 30.97%

Market Cap/PAT N.A. N.A. N.A. N.A. N.A.

Market Cap/EBITDA 4.41 15.27 20.24 -71.14% -24.54%

Trading Volume (shares) (avg. of 1 year) 15,867 21,721 12,400 -26.95% 75.17%

Trading Volume (shares) (high in 1 year) 2,90,497 4,05,002 4,80,563 -28.27% -15.72%

Trading Volume (shares) (low in 1 year) 1.00 2.00 1.00 -50.00% 100.00%

Ratio - High/low trading volume 2,90,497 2,02,501 4,80,563 43.45% -57.86%

Ratio - High/average trading volume 18.31 18.65 38.75 -1.81% -51.89%

Source - Money Control




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TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS

Dec' 2015 Dec' 2014 Dec' 2013 Comments

Shar

eho

ldin

g

Promoter shareholding 7.74% 6.06% 6.08%

No new equity shares were issued during the

period from 2013 to 2015. The promoter

shareholding increased from 6.08% FY2013 to

2015. No major change was observed in the

shareholding pattern during the said period.

The shareholding of non-promoter non-public

decreased from 2013 to 2015 during the

above mentioned period due to

reclassification of the shareholders as per the

SEBI circular dated 30th November, 2015. The

promoters have pledged 60.80% of their

shareholding and 4.70% of total shareholding.

Public - Institutional shareholding 0.24% 0.24% 0.24%

Public - Others shareholding 92.02% 90.55% 86.18%

Non Promoter Non Public

Shareholding 0.00% 3.15% 7.50%

TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have bought 13,29,790 equity shares in period from Dec’14 to

Dec’15.

Preferential issue to promoters The Company has allotted 1,35,10,000/- Equity Shares of ₹ 2/- each fully paid up

amounting to ₹ 1,823.85 Lacs including premium of ₹ 1553.65 Lacs. Preferential issue to others

GDRs issued by the Company The Company did not issue and GDRs during last three years.

Issue of ESOPs/Issue of shares other than

Preferential allotment

The Company did not issue any shares to the employees under its ESOP Scheme

in last three years

Source - Annual Report




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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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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


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

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



7 | P A G E



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


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

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

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



8 | P A G E



DISCLAIMER

Sources Company Information

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.

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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.

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Stakeholders Empowerment Services

Contact Information

Stakeholders Empowerment Services

A 202, Muktangan,

Upper Govind Nagar,

Malad East,

Mumbai – 400 097

Tel +91 22 4022 0322

[email protected]

[email protected]

www.sesgovernance.com.

Research Analyst: Waheed Shaikh


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/

Tricom India Ltd - NSE · Tricom India Ltd. ... among high networth investors in India and abroad...

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