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1 | P A G E

SECTOR: FMCG REPORTING DATE: 25TH JANUARY, 2018

USHER AGRO LTD. www.usheragro.com

Usher Agro Ltd. NSE Code - USHERAGRO TABLE 1 - MARKET DATA (STANDALONE) (AS ON 24TH JANUARY, 2018)

Sector - FMCG NSE Market Price (₹) 8.00 NSE Market Cap. (₹ Cr.) 60.12

Face Value (₹) 10.00 Equity (₹ Cr.) 77.67

Business Group – N.A. 52 weeks High/Low (₹) 13.30/5.85 Net worth (₹ Cr.)* -283.91

Year of Incorporation - 1996 TTM P/E (TTM) N.A. Traded Volume (Shares) 19,278

TTM P/BV N.A. Traded Volume (lacs) 1.54

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

422, Laxmi Plaza, Laxmi Ind. Estate, COMPANY BACKGROUND

New Link Road, Andheri west, Usher Agro Limited engages in processing basic food products in India. It offers non-

basmati rice, including raw white, par-boiled, and steam rice; basmati rice; wheat

products, such as atta, maida, suji, etc.; and pulses. The company sells its products under

the brand name Rasoi Raja. Usher Agro Limited also exports its products to Italy, Holland,

Israel, the United Kingdom, Canada, the United Arab Emirates, Iran, Saudi Arabia, Benin,

Ghana, Mozambique, Kenya, and Malawi. In addition, it is involved in the operation of

rice husk fired biomass power plant with a capacity of 16 MW; manufacture of silica from

the rice husk ash; and provision of logistics services. The company was founded in 1996

and is based in Mumbai, India.

Mumbai - 400 053

Company Website:

www.usheragro.com

Revenue and Profit Performance

The revenue of the Company decreased from ₹ 84.66

crores to ₹ 25.17 crores from quarter ending Sep’16 to

quarter ending Sep’17. The Company made a loss of ₹

11.23 crores in quarter ending Sep’17 vis-a-vis making a

loss of ₹ 108.77 crores in quarter ending Sep’16.

Source: Moneycontrol

Performance vis-à-vis Market

TABLE 2- Returns

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

Usher Agro Ltd -4.29% -8.97% -2.50% -39.53%

Nifty 5.27% 6.88% 10.70% 27.19%

Nifty FMCG 4.36% 7.44% 7.13% 23.97%

Source - Capitaline/NSE

25.1752.37

84.66

-11.23

2.00

-108.77

-150

-100

-50

0

50

100

Sep'17 Mar'17 Sep'16

Quarterly revenue and Profit (₹ CRORE)

Revenue Profit

0.25

0.50

0.75

1.00

1.25

1.50

Jan 17 Mar 17 May 17 Jul 17 Sep 17 Nov 17 Jan 18

Usher Agro Ltd NIFTY NIFTY FMCG

http://www.usheragro.com/




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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 -283.91 -260.31 -176.41 N.A. N.A.

Current Assets 711.66 748.16 851.44 -4.88% -12.13%

Non-Current Assets 400.58 96.78 113.02 313.91% -14.37%

Total Assets 1,112.24 1,169.70 1,306.27 -4.91% -10.45%

Investments 0.11 86.45 86.45 -99.87% 0.00%

Finance Cost 0.77 -44.57 37.44 N.A. -219.04%

Long Term Liabilities 141.95 179.05 194.05 -20.72% -7.73%

Current Liabilities 1,254.20 1,250.96 1,288.62 0.26% -2.92%

Turnover 25.17 52.32 84.66 -51.89% -38.20%

Profit After Tax -11.23 2.00 -108.77 -661.50% N.A.

EPS (₹) -1.45 0.04 -28.59 -3,725.00% N.A.

Source - Money Control/Stock exchange filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Statutory Auditors have made Qualified Opinion in their Report for FY 2016-17, FY 2015-

16 and FY 2014-15.

Qualification on Standalone and Consolidated Financial Statements for FY 2016-17: The Statutory Auditor have made Qualified

Opinion on Standalone and Consolidated financial statements which are disclosed in on page no. 14 of Annual Report 2016-17

and Management Response is also available on same page.

Qualification on Standalone and Consolidated Financial Statements for FY 2015-16: The Statutory Auditor have made Qualified

Opinion on Standalone and Consolidated financial statements which are disclosed in on page no. 35 of Annual Report 2015-19

and Management Response is also available on same page.

Qualification on Consolidated Financial Statements for FY 2014-15: The Statutory Auditor have made Qualified Opinion on

Standalone financial statements. However, they have made Qualified opinion on Consolidated financial statements which is

disclosed in detailed on page no. 94 of Annual Report 2014-15.

Response Comment

Frequency of Qualifications Yes Similar qualification for FY 2016-

17, FY 2015-16 and FY 2014-15

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% 56%

% of Promoter Directors on the Board - 22%

Number of Women Directors on the Board At least 1 2

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 (%) - 84.78%

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 there is no regular Chairman

on the Board. The Company has 56% of Independent Directors and hence, it meets the regulatory requirements.

Board Diversity: The Company has 9 directors out of which 7 are male and 2 are females.




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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 8.39 3.28 0.54 156.09% 509.29%

Debtors Turnover 0.04 0.08 0.14 -52.05% -46.88%

Fixed asset Turnover 0.06 0.54 0.75 -88.38% -27.83%

Current Asset Turnover 0.04 0.07 0.10 -49.42% -29.67%

Ret

urn

Rat

ios Operating Profit Margin -23.12% -66.86% -74.01% N.A. N.A.

Net Profit Margin -44.62% 3.82% -128.48% -1,267.17% N.A.

Return on Assets (ROA) N.A. 0.17% N.A. N.A. N.A.

Return on Equity (ROE) N.A. -0.77% N.A. N.A. N.A.

Return on Capital Employed (ROCE) N.A. -2.46% N.A. N.A. N.A.

Liq

uid

ity

Rat

ios

Current Ratio 0.57 0.60 0.66 -5.12% -9.48%

Quick Ratio 0.57 0.59 0.54 -3.46% 8.68%

Cash Ratio 0.02 0.04 0.08 -49.66% -50.99%

Working Capital Turnover ratio N.A. -0.00 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 N.A. N.A. N.A. N.A. N.A.

Trad

ing

Rat

ios

Market Cap / Sales 2.58 1.20 1.06 114.31% 13.97%

Market Cap/ Net Worth N.A. N.A. N.A. N.A. N.A.

Market Cap/PAT N.A. 31.46 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 Dec’17 June’17 Dec’16

% Change

Dec ’17 vs

June’17

June’17 vs

Dec’16

Trading Volume (shares) (avg. of 1 qtr) 84,096 47,811 1,99,246 75.89% -76.00%

Trading Volume (shares) (high in 1 qtr) 7,63,406 1,51,634 16,40,665 403.45% -90.76%

Trading Volume (shares) (low in 1 qtr) 3,868 3,763 28,638 2.79% -86.86%

Ratio - High/low trading volume 197.36 40.30 57.29 389.79% -29.66%

Ratio - High/average trading volume 9.08 3.17 8.23 186.23% -61.48%

Source - Capitaline

TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Dec-17 Jun-17 Dec-16 Comments

Shar

eho

ldin

g (%

)

Promoter shareholding 14.98 14.98 14.98 • No new equity shares were issued during the

period from 1st Jan’ 17 to 31st Dec’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 16.35% of their

shareholding.

Public - Institutional shareholding 51.15 51.15 51.15

Public - Others shareholding 33.87 33.87 33.87

Non-Promoter Non-Public

Shareholding 0.00 0.00 0.00

Source - NSE




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MAJOR SHAREHOLDERS (AS ON 31st DECEMBER 2017)

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

1 Vinodkumar Chaturvedi 5.88% 1 IDBI Bank Limited 12.14%

2 Manoj Pathak 4.23% 2 ICICI Bank Limited 10.88%

3 Narayani Nivesh Nigam 2.33% 3 Axis Bank 8.83%

4 Usher Capitals Limited 1.93% 4 Bank of Maharashtra 4.23%

5 State Bank of India 2.91%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

Market Activity of Promoters The promoters have not sold/bought any shares during FY 2016-17.

Preferential issue to promoters No preferential issue of shares was made to the promoters during FY 2016-17.

Preferential issue to others No preferential issue of shares was made to other shareholders during FY 2016-17.

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

Issue of ESOPs/ Issue of shares other

than Preferential allotment The Company does not have any Employee Stock Option Scheme.

Source - Annual Report FY 16-17

TABLE 8: PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

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

1. Rice & Rice Product wheat 96.10%

Source - Annual Report FY 16-17




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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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