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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 (βΉ) 1.40 NSE Market Cap. (βΉ Cr.) 11.72
Sector - IT - Software Face Value (βΉ) 2.00 Equity (βΉ Cr.) 15.84
52 week High/Low (βΉ) 3.45/ 1.15 Net worth (βΉ Cr.) 74.36
Business Group β Indian Private TTM P/E N.A. Traded Volume (Shares) 1,471
Year of Incorporation β 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 β 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 (βΉ) 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 βΉ Cr.) 11.09 15.84 10.30 -29.99% 53.79% 3.76%
Source - Money Control
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SECTOR: IT-SOFTWARE REPORTING DATE: 31ST MAY, 2016
TABLE 3 - FINANCIALS
(βΉ 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 - βΉ Cr.) -26.57 -31.15 -15.40 N.A. N.A. N.A.
EPS (βΉ) -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 βΉ
1.31 crores in its Annual General Meeting held on 31st December, 2011. Due to paucity of funds, the amount of βΉ0.78
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 βΉ 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 Companyβs 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 -
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Tricom India Ltd. www.tricominfo.com
SECTOR: IT-SOFTWARE REPORTING DATE: 31ST MAY, 2016
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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SECTOR: IT-SOFTWARE REPORTING DATE: 31ST MAY, 2016
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 Decβ14 to
Decβ15.
Preferential issue to promoters The Company has allotted 1,35,10,000/- Equity Shares of βΉ 2/- each fully paid up
amounting to βΉ 1,823.85 Lacs including premium of βΉ 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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SECTOR: IT-SOFTWARE REPORTING DATE: 31ST MAY, 2016
Glossary
Equity: The equity shares capital of the Company
Net Worth: The amount by which the Assets exceeds the liabilities excluding shareholdersβ 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
πΈππ =Profit After Tax
Number of outstanding shares
P/E ratio: It is the ratio of the Companyβs share price to earnings per share of the Company
π/πΈ πππ‘ππ =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.
πΌππ£πππ‘πππ¦ ππ’ππππ£ππ πππ‘ππ =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
π·πππ‘πππ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Accounts recievables
Fixed Asset Turnover: The fixed-asset turnover ratio is a financial ratio of net sales to fixed assets
πΉππ₯ππ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Fixed Assets
Current Asset Turnover: The current-asset turnover ratio is a financial ratio of net sales to fixed assets
πΆπ’πππππ‘ π΄π π ππ‘ ππ’ππππ£ππ πππ‘ππ =Sales Turnover
Current Assets
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SECTOR: IT-SOFTWARE REPORTING DATE: 31ST MAY, 2016
Operating Profit Margin: Operating margin is a measurement of what proportion of a Companyβs revenue is left over after
paying for variable costs of production such as wages, raw materials etc. It can be calculated by dividing a Companyβs operating
income (also known as βoperating profitβ) during a given period by its sales during the same period.
ππππππ‘πππ ππππππ‘ ππππππ =Operating profit
Sales Turnover
Net Profit Margin: Net profit margin is the percentage of revenue left after all expenses have been deducted from sales
πππ‘ ππππππ‘ ππππππ =Net profit
Sales Turnover
Return on Assets: ROA tells you what earnings were generated from invested capital (assets)
π ππ‘π’ππ ππ π΄π π ππ‘π =Net profit
Total Assets
Return on equity/net worth: return on equity (ROE) is the amount of net income returned as a percentage of shareholdersβ
equity.
π ππ‘π’ππ ππ πΈππ’ππ‘π¦ =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.
π ππ‘π’ππ ππ πΆππππ‘ππ πΈπππππ¦ππ =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.
πΆπ’πππππ‘ πππ‘ππ =Current Assets
Current Liabilities
Quick ratio: The quick ratio is a measure of how well a Company can meet its short term financial liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories
Current Liabilities
Cash ratio: The ratio of the liquid assets of a Company to its current liabilities.
ππ’πππ πππ‘ππ =Current Assets β Inventories β 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.
πππππππ πΆππππ‘ππ ππ’ππππ£ππ πππ‘ππ =πππππ ππ’ππππ£ππ
Current Assets β 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.
π·πππ‘ π‘π πΈππ’ππ‘π¦ πππ‘ππ =πβπππ‘ ππππ π·πππ‘ + πΏπππ ππππ π·πππ‘
πππ‘ ππππ‘β
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.
πΌππ‘ππππ π‘ πΆππ£πππππ π ππ‘ππ =πΈππππππ π΅πππππ πΌππ‘ππππ π‘ πππ πππ₯
πΉππππππ πΆππ π‘
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SECTOR: IT-SOFTWARE REPORTING DATE: 31ST MAY, 2016
Market Cap/Sales ratio: Market Cap/sales ratio, Priceβsales 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.
ππππππ‘ πΆππ/πππππ πππ‘ππ =ππππππ‘ πΆππ
πππππ ππ’ππππ£ππ
Market Cap/ Net Worth ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net worth.
ππππππ‘ πΆππ/πππ‘π€πππ‘β πππ‘ππ =ππππππ‘ πΆππ
πππ‘π€πππ‘β
Market Cap/ PAT ratio: It is a valuation ratio calculated by dividing Companyβs market cap to net profit.
ππππππ‘ πΆππ/ππ΄π πππ‘ππ =ππππππ‘ πΆππ
πππ‘ ππππππ‘
Market Cap/ EBITDA ratio: It is a valuation ratio calculated by dividing Companyβs market cap to EBITDA.
ππππππ‘ πΆππ/πΈπ΅πΌππ·π΄ πππ‘ππ =ππππππ‘ πΆππ
πΈπ΅πΌππ·π΄
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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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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Research Analyst: Waheed Shaikh