bsel infrastructure realty ltdector: construction streporting date 1 june, 2016 ‘yyyy bsel...

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

STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: CONSTRUCTION REPORTING DATE: 1ST JUNE, 2016

‘YYYY

BSEL INFRASTRUCTURE REALTY LTD www.bsel.com

BSEL Infrastructure Realty Ltd 1st June, 2016 TABLE 1 - MARKET DATA (STANDALONE) (As on 31st May, 2016)

NSE Code - BSELINFRA NSE Market Price (₹) 2.85 NSE Market Cap. (₹ Cr.) 23.88

Sector - Construction Face Value (₹) 10.00 Equity (₹ Cr.) 82.62

52-week High/Low (₹) 4.40/1.50 Net worth (₹ Cr.) 488.57

Business Group: TTM P/E 41.29 Traded Volume (Shares) 3,066

Indian Private TTM P/BV 0.01 Traded Volume (lacs) 0.09

Year of Incorporation - 1995 Source - Capitaline

COMPANY BACKGROUND

Corporate Office: BSEL Infrastructure Realty Ltd Is an India-Based Real Estate Development Company. The

Main Business Activity of BSEL Infrastructure Realty Involves Real Estate Development Like

Construction of Hotels, It Parks, Business Arcades, And Shopping Malls. They Also Offer All

Infrastructure Related Developmental Services at Competitive Prices. They Are a Pioneer

and One of the Market Leaders Among the Real Estate Development Companies Operating

in India.

BSEL infrastructure realty ltd was incorporated on 15th November, 1995 as well south

enterprises and was promoted by babulal shermal jain. in the year 1998, the company name

was changed into BSEL information system ltd to facilitate their wide pool of customers with

it based services and in the year 2003, the company got their present name BSEL

infrastructure realty ltd.

737 7th Floor Commodity

Exchange, Plot 2 3 & 4

Sector-19, Vashi,

Navi Mumbai – 400 705

Company Website:

www.bsel.com

TABLE 2 - PRICE PERFORMANCE

31st May,

2016

29th May,

2015

30th May,

2014

% Change CAGR for

2 years 2016 vs 2015 2015 vs 2014

Price (₹) 2.90 2.30 2.60 26.09% -11.54% 5.61%

Trading Volume (Shares)

(yearly avg.) 97,141 54,821 29,474 77.20% 86.00% -

NSE Market Cap. (in ₹ Cr.) 23.96 19.00 21.48 26.11% -11.55% 5.62%

Source - Money Control

TABLE 3 - FINANCIALS

(₹ Cr.) 2015 2014 2013 % Change CAGR for 2

years 2015 vs 2014 2014 vs 2013

Net Worth 488.57 471.01 437.92 3.73% 7.56% 5.62%

Current Assets 78.06 75.94 77.11 2.79% -1.52% 0.61%

Non-Current Assets 411.60 395.96 361.13 3.95% 9.64% 6.76%

Total Assets 489.67 471.90 438.24 3.77% 7.68% 5.71%

Investments 408.49 393.01 358.33 3.94% 9.68% 6.77%

Finance Cost 0.00 0.00 0.00 N.A. N.A. N.A.

Long Term Liabilities 0.49 0.41 0.00 19.51% - N.A.

Current Liabilities 0.61 0.48 0.32 27.08% 50.00% 38.07%

Turnover 0.38 0.71 0.98 -46.48% -27.55% -37.73%

Profit After Tax (PAT, Cr.) 0.50 -1.57 -0.08 N.A. N.A. N.A.

EPS (₹) 0.06 -0.19 -0.01 N.A. N.A. N.A.

Source - Money Control/Annual Report

http://www.bsel.com/




2 | P A G E


‘YYYY


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 qualification in last three

years.

Have the auditors made any adverse remark

in last 3 years? No

Are the material accounts audited by the

Principal Auditors? Yes

The Consolidated Financial Statements of one wholly owned

Subsidiary along with two Sub-Subsidiaries have been audited

by other auditors whose reports have been furnished to main

auditor and auditors opinion is based solely on the said report.

Do the financial statements include material

unaudited financial statements? No -

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 - 25%

Number of Women Directors on the Board At least 1 1

Classification of Chairman of the Board - Non-Executive Promoter

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

Average attendance of Directors in the Board meetings (%) - 93.75%

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 Director. The Company as on 31st March, 2015 has 50% of

Independent Directors and hence, it meets the regulatory requirements.

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




3 | P A G E


‘YYYY


TABLE 5 - FINANCIAL RATIOS

Ratios 2015 2014 2013 % Change

2015 vs 2014 2014 vs 2013

Turn

ove

r

Rat

ios

Inventory Turnover 0.01 0.02 0.02 -46.48% -22.99%

Debtors Turnover 0.03 0.03 0.05 -20.47% -27.80%

Fixed asset Turnover 0.00 0.00 0.00 -48.51% -33.92%

Current Asset Turnover 0.00 0.01 0.01 -47.93% -26.43%

Ret

urn

Rat

ios

Operating Profit Margin 286.84% -102.82% 30.61% N.A. -435.87%

Net Profit Margin 131.58% -221.13% -8.16% N.A. N.A.

Return on Assets (ROA) 0.10% -0.33% -0.02% N.A. N.A.

Return on Equity (ROE) 0.10% -0.33% -0.02% N.A. N.A.

Return on Capital Employed

(ROCE) 0.61% N.A. 0.36% N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 127.97 158.21 240.97 -19.11% -34.34%

Quick Ratio 56.34 67.19 95.84 -16.14% -29.90%

Cash Ratio 33.64 24.31 31.75 38.36% -23.43%

Working Capital Turnover ratio 0.00 0.01 0.01 -47.85% -26.27%

Solv

ency

Rat

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

Interest Coverage Ratio - N.A. - N.A. N.A.

Trad

ing

Rat

ios

Market Cap / Sales 75.00 40.14 29.08 86.84% 38.03%

Market Cap/ Net Worth 0.06 0.06 0.07 -3.59% -7.03%

Market Cap/PAT 57.00 N.A. N.A. N.A. N.A.

Market Cap/EBITDA 22.80 N.A. 59.38 N.A. N.A.

Trading Volume (shares) (avg.

of 1 year) 97,768 53,119 28,910 84.05% 83.74%

Trading Volume (shares) (high

in 1 year) 12,30,242 4,95,835 2,21,306 148.12% 124.05%

Trading Volume (shares) (low

in 1 year) 2,255.00 4,038.00 35.00 -44.16% 11437.14%

Ratio - High/low trading

volume 545.56 122.79 6,323.03 344.30% -98.06%

Ratio - High/average trading

volume 12.58 9.33 7.65 34.81% 21.94%

Source - Money Control




4 | P A G E


‘YYYY


TABLE 6 (A): OWNERSHIP & MANAGEMENT RISKS

Shareholding Dec' 2015 Dec' 2014 Dec' 2013 Comments

Promoter shareholding 23.05% 21.47% 21.47%

No major change was observed in the

shareholding pattern during the said period. The

shareholding pattern has reclassified as per the

SEBI circular dated 30th November, 2015. The

promoters have not pledged any shares.

Public - Institutional

shareholding - - -

Public - Others shareholding 76.95% 76.30% 76.30%

Non Promoter Non Public

Shareholding - 2.23% 2.22%

TABLE 6 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have bought 13 lakh equity shares from the secondary

markets.

Preferential issue to promoters No preferential issue of shares was made to the promoters in last three years

Preferential issue to others No

GDRs issued by the Company The Company did not issue 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.

Source - Annual Report


%7bhttp:/www.bseindia.com/downloads1/Regulation_31_Shareholding_Pattern.pdf%7d



5 | P A G E


‘YYYY


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




6 | P A G E


‘YYYY


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


‘YYYY


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


‘YYYY


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.

Analyst Certification

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. INH000000016

This factsheet or any portion hereof may not

be reprinted, sold, reproduced or

redistributed without the written consent of

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: Sudarshan Shetty


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/