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SECTOR: READYMADE GARMENTS REPORTING DATE: 28TH NOVEMBER, 2017

FIRST WINNER INDUSTRIES LTD. www.firstwinnerind.in

First Winner Industries Ltd. NSE Code - FIRSTWIN TABLE 1 - MARKET DATA (STANDALONE) (AS ON 4TH SEPTEMBER, 2017)

Sector - Readymade Garments NSE Market Price (`) 3.30 NSE Market Cap. (₹ Cr.) 10.50

Face Value (`) 10.00 Equity (` Cr.) 50.23

Business Group – N.A. 52 week High/Low (₹) 3.75/1.90 Net worth (₹ Cr.)* 120.91

Year of Incorporation - 2003 TTM P/E (TTM) N.A. Traded Volume (Shares) 130.00

TTM P/BV 0.09 Traded Volume (lacs) 0.00

Registered Office - Source - Capitaline, TTM - Trailing Twelve Months, N.A. - Not Applicable, * As on 30th Sept 2017

605, Business Classic, COMPANY BACKGROUND

Chincholi Bunder Road, The Company was incorporated on 22nd January, 2003 Firstwinner Trading Private

Limited. The Company name has been changed to First Winner Industries Private

Limited, and further to First Winner Industries Limited. The company has started its

operations with the objective to supply the textile fabrics to wholesalers and apparel &

garment manufacturers. Initially, the company has started trading in the textile fabrics

and now with a view to have own manufacturing a facility, the company has set up own

weaving unit during 2006-07 by installing 100 looms. The manufacturing facilities are

located at MIDC, Tarapur, District Thane, Maharashtra. The unit has total installed

capacity to manufacture 108 lakh meter grey fabrics per annum and commenced

commercial production w.e.f. 19th March, 2007. The company has executing job works

for fabric and garment manufacturers.

Malad (West), Mumbai – 400 064,

Maharashtra

Company Website:

www.firstwinnerind.in

Revenue and Profit Performance

The Company has not generated any revenue from quarter

ending Sep’16. The Company made a loss of ₹0.03 crores in

quarter ending Sep’17 vis-a-vis making a loss of ₹2.34 crores in

quarter ending Sep’16.

Source: Moneycontrol

Performance vis-à-vis Market

TABLE 2- Returns

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

First Winner Industries Ltd. 3.12% 9.09% 37.50% 50.00%

Nifty 4.05% 6.55% 14.38% 23.84%

Source - Capitaline/NSE

0.50

1.00

1.50

2.00

Dec 16 Feb 17 Apr 17 Jun 17 Aug 17

First Winner Industries Ltd NIFTY

0.00 0.00 0.00

-0.03

-1.75

-2.34

-2.50

-2.00

-1.50

-1.00

-0.50

0.00

Sep'17 Mar'17 Sep'16

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

http://www.firstwinnerind.in/




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TABLE 3 - FINANCIALS

(₹ Cr.) Sep’17 Mar’17 Sep’16 % Change

Sep ’17 vs Mar’17 Mar’17 vs Sep’16

Net Worth 120.91 120.96 125.13 -0.04% -3.33%

Current Assets 65.18 65.18 65.27 0.01% -0.15%

Non-Current Assets 171.78 171.78 171.71 0.00% 0.04%

Total Assets 236.96 236.96 236.98 0.00% -0.01%

Investments 83.97 83.97 83.97 0.00% 0.00%

Finance Cost - 2.41 2.31 N.A. 4.33%

Long Term Liabilities 61.25 61.25 57.54 0.00% 6.45%

Current Liabilities 54.80 54.75 54.31 0.09% 0.81%

Turnover - - - N.A. N.A.

Profit After Tax (PAT) -0.03 -1.75 -2.34 N.A. N.A.

EPS (₹) - - - N.A. N.A.

Source - Money Control /Stock exchange filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Statutory Auditor have raised qualifications for the FY 2015-16 & FY 2016-17.

Basis of Qualified Opinion for FY 2016-17: (AS STATED BY THE COMPANY IN ANNUAL REPORT FOR FY 2016-17)

“The standard operating procedures and internal controls procedures are not established since there are no transactions during

the year.”

Qualified Opinion for FY 2016-17:

“In our opinion, the Company has, in all material respect, except to the matters mentioned in the basis for qualified opinion

paragraph, an adequate internal financial controls system over financial reporting and such internal financial controls over

financial reporting were operating effectively as at 31 March 2017, based on the internal control over financial reporting criteria

established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of

Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.’

Management Response:

“The specific note forming the part of the accounts referred to in the Auditor’s Report are self-explanatory and give complete

information and addresses the qualification/reservation/remark/disclaimers in the Audit Report.”

It may be noted that similar qualification was raised for the FY 2015-16.

Response Comment

Frequency of Qualifications From last 2 financial years.

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 -

TABLE 4: BOARD PROFILE (AS PER ANNUAL REPORT - FY 2016-17)

Regulatory Norms Company

% of Independent Directors on the Board 50% 60%

% of Promoter Directors on the Board - 40%

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 (%) - 80.00%




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Composition of Board: As per Regulation 17(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,

2015 "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 has 60% of Independent Directors and hence, it meets the regulatory

requirements.

Board Diversity: The Company has 5 directors out of which 3 are Male and 2 are Women.

Holding of position of MD/ CEO & Chairman by same person: The Company has appointed Mr. Rinku Patodia 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 Sep’17 Mar’17 Sep’16

% Change

Sep ’17 vs

Mar’17

Mar’17 vs

Sep’16

Turn

ove

r

Rat

ios

Inventory Turnover N.A. N.A. N.A. N.A. N.A.

Debtors Turnover N.A. N.A. N.A. N.A. N.A.

Fixed asset Turnover N.A. N.A. N.A. N.A. N.A.

Current Asset Turnover N.A. N.A. N.A. N.A. N.A.

Ret

urn

Rat

ios Operating Profit Margin N.A. N.A. N.A. N.A. N.A.

Net Profit Margin N.A. N.A. N.A. 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 1.19 1.19 1.20 -0.08% -0.95%

Quick Ratio 1.19 1.19 1.20 -0.08% -0.95%

Cash Ratio 0.06 0.06 0.06 0.07% -3.87%

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

Solv

ency

Rat

ios Debt to equity ratio 0.93 0.93 0.85 0.09% 9.79%

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

Trad

ing

Rat

ios

Market Cap / Sales N.A. N.A. N.A. N.A. N.A.

Market Cap/ Net Worth 0.14 0.11 0.12 20.11% -5.20%

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

Market Cap/EBITDA N.A. N.A. N.A. N.A. N.A.

Source - Money Control/Stock exchange filing

TABLE 6 - TRADING VOLUME

Particulars Sep’17 Mar’17 Sep’16

% Change

Sep ’17 vs

Mar’17

Mar’17 vs

Sep’16

Trading Volume (shares) (avg. of 1 qtr) 2,102 1,670 1,372 25.82% 21.75%

Trading Volume (shares) (high in 1 qtr) 16,730 39,240 5,255 -57.36% 646.72%

Trading Volume (shares) (low in 1 qtr) 20 1 10 1,900.00% -90.00%

Ratio - High/low trading volume 836.50 39,240.00 525.50 -97.87% 7,367.17%

Ratio - High/average trading volume 7.96 23.49 3.83 -66.12% 513.32%

Source - Capitaline




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TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Sep-17 Mar-17 Sep-16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 49.46 49.46 49.46 • No new equity shares were issued during the

period from Sept 16 to Sept 17.

• There was no change in the ‘promoter

shareholding’ during the said period.

• No major change was observed in the shareholding

pattern during the said period.

• The promoters have pledged or encumbered 5.51%

of their shareholding.

Public - Institutional

shareholding 0.00 0.00 0.00

Public - Others shareholding 50.54 50.54 50.54

Non-Promoter Non-Public

Shareholding 0.00 0.00 0.00

Source - NSE

MAJOR SHAREHOLDERS (AS ON 30TH SEPTEMBER, 2017)

S. No. Promoters Shareholding S. No. Public Shareholders Shareholding

1 Solitaire Texfab And Traders Pvt. Ltd. 7.70% 1 Karsam Tele Trading. Pvt. Ltd. 5.08%

2 Rikosh Fashions Pvt. Ltd. 7.58% 2 Take-Home Multi Trading Pvt. Ltd. 4.58%

3 Bhagwat Textiles Pvt. Ltd. 7.56% 3 Humble Multitrading Pvt. Ltd. 4.58%

4 Starwood Exports Pvt. Ltd. 7.39% 4 Naitik Multitrading Pvt. Ltd. 4.58%

5 Firstwinner Textiles India Pvt. Ltd. 7.37% 5 Creeper Multitrading Pvt. Ltd. 4.58%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have not sold/bought any shares in financial year 2016-17.

Preferential issue to promoters No preferential issue of shares was made to the promoters in financial year 2016-

17.

Preferential issue to others No preferential issue of shares was made to other shareholders in financial year

2016-17.

GDRs issued by the Company The Company did not issue any GDRs during financial year 2016-17.

Issue of ESOPs/Issue of shares other than

Preferential allotment

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

during financial year 2016-17.

Source - Annual Report FY 2016-17

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

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

1 Interest Income 100

Source - Annual Report FY 2016-17




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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




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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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Tel +91 22 4022 0322

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Research Analyst: Mukesh Solanki


mailto:[email protected]

mailto:[email protected]

http://www.sesgovernance.com/