S E I SERVICES EPORTING ATE …...1 Dinesh Kumar 11.27% 1 JM Financial Services Limited 4.17% 2 Sree Sahasya Enterprises Pvt. Ltd. 4.83% 2 Thunuguntla Haritha 1.69% 3 Sheshank Kumar

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

STAKEHOLDERS EMPOWERMENT SERVICES

1 | P A G E

SECTOR: TELECOMMUNICATION EQUIPMENT & INFRA SERVICES REPORTING DATE: 30TH JANUARY, 2018

XL ENERGY LTD. www.xlenergy.co

XL Energy Ltd. NSE Code - XLENERGY TABLE 1 - MARKET DATA (STANDALONE) (AS ON 24TH JANUARY, 2018)

Sector – Telecommunication Equipment NSE Market Price (`) 3.65 NSE Market Cap. (₹ Cr.) 8.95

& Infra Services Face Value (`) 10.00 Equity (` Cr.) 22.77

52 week High/Low (₹) 5.00/1.40 Net worth (₹ Cr.)* 9.28

Business Group – N.A. TTM P/E (TTM) N.A. Traded Volume (Shares) 22,852

Year of Incorporation - 1985 TTM P/BV N.A. Traded Volume (lacs) 0.83

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

Registered Office - COMPANY BACKGROUND

H.No 19-66/11/D-4 Laxmipuram, XL Energy Limited is an India-based company, which is engaged in manufacturing,

trading, production and sale of solar photovoltaic (SPV) modules. The Company offers

solar cells and solar modules, which include multi crystalline silicon solar cells and poly

crystalline modules. The Company's product and services range covers project

development through to operation, with maintenance and inspection, as well as

insurances for customer's photovoltaic system and its yield. The Company is also

engaged in providing engineering, procurement and construction (EPC) solutions. The

Company manufactures its SPV modules and systems to various agencies in India and

overseas. It plans, builds, operates and owns photovoltaic plants providing all services

from a single source. It delivers approximately 75 megawatts of solar modules to

countries all over the world. The Company has set up 1.75 megawatts solar plant in

Spain and three megawatts of solar plants in India with 14 megawatts in the pipeline

ECIL Kapra Medchal Malkajgiri,

Hyderabad – 500 062, Telangana

Company Website:

www.xlenergy.co

Revenue and Profit Performance

The Company has not generated operating revenue for quarter

ended Sep’17. The Company made a loss of ₹0.60 crores in

quarter ending Sep’17 vis-a-vis making a loss of ₹0.22 crores in

quarter ending Sep’16.

Source: Moneycontrol

Performance vis-à-vis Market

TABLE 2- Returns

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

XL Energy Ltd. -10.98% 10.96% 114.71% 10.61%

Nifty 5.27% 6.88% 10.70% 27.19%

Source - Capitaline/NSE

0.00

0.79

0.13

-0.60 -1.36-0.22

-1.5

-0.5

0.5

1.5

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 Apr 17 Jul 17 Oct 17 Jan 18

XL Energy Ltd NIFTY

http://www.xlenergy.co/




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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 9.28 10.75 12.20 -13.67% -11.89%

Current Assets 134.02 243.42 249.04 -44.94% -2.26%

Non-Current Assets 676.34 710.56 711.30 -4.82% -0.10%

Total Assets 810.36 953.98 960.34 -15.05% -0.66%

Investments 26.48 26.48 26.48 0.00% 0.00%

Finance Cost 0.00 0.00 0.01 N.A. -100.00%

Long Term Liabilities 50.29 51.11 51.14 -1.60% -0.06%

Current Liabilities 750.78 892.11 896.99 -15.84% -0.54%

Turnover 0.00 0.79 0.13 N.A. 507.69%

Profit After Tax -0.60 -1.36 -0.22 N.A. N.A.

EPS (₹) -0.27 -0.60 -0.10 N.A. N.A.

Source - Money Control/Stock exchange filing

AUDIT QUALIFICATIONS

Audit Qualifications in last 3 years: The Statutory Auditors have made Adverse observation on Consolidated Financial

Statements for FY 2016-17 and FY 2015-16.

Adverse observation on Consolidated Financial Statements for FY 2016-17 by Statutory Auditors: The Statutory Auditors have

made Qualified Opinion on Consolidated financial statements which are disclosed in Annual Report 2016-17 on page no. 16 &17

and Management Response is also available on same page.

Adverse observation on Consolidated Financial Statements for FY 2015-16 by Statutory Auditors: The Statutory Auditors have

made Qualified Opinion on Consolidated financial statements which are disclosed in Annual Report 2015-16 on page no. 17 & 18

and Management Response is also available on same page.

Response Comment

Frequency of Qualifications Yes For last two years i.e. FY

2016-17 & 2015-16

Have the auditors made any adverse remark in last 3 years? Yes For last two years i.e. FY

2016-17 & 2015-16

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% 40%

% of Promoter Directors on the Board - 60%

Number of Women Directors on the Board At least 1 1

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 (%) - 100%

Composition of Board: The Company has 40% of Independent Directors. The Company has not disclosed the name of the

Chairman of the Board. However, the Company has stated that "The composition of the Board is in conformity with Regulation

17 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015".

Board Diversity: The Company has 5 directors out of which 4 are male and 1 is female.




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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 N.A. 0.01 0.00 N.A. 516.56%

Debtors Turnover N.A. 0.01 0.00 N.A. 511.05%

Fixed asset Turnover N.A. 0.00 0.00 N.A. 508.33%

Current Asset Turnover N.A. 0.00 0.00 N.A. 521.72%

Ret

urn

Rat

ios Operating Profit Margin N.A. -168.35% -46.15% N.A. N.A.

Net Profit Margin N.A. -172.15% -169.23% 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 0.18 0.27 0.28 -34.58% -1.72%

Quick Ratio 0.08 0.19 0.19 -58.78% -2.09%

Cash Ratio 0.00 0.01 0.02 -94.95% -23.25%

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

Solv

ency

Rat

ios Debt to equity ratio 85.40 83.94 74.26 1.74% 13.04%

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

Trad

ing

Rat

ios

Market Cap / Sales N.A. 5.76 48.15 N.A. -88.04%

Market Cap/ Net Worth 0.97 0.42 0.51 128.88% -17.51%

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 Dec’17 June’17 Dec’16 % Change

Dec ’17 vs June’17 June’17 vs Dec’16

Trading Volume (shares) (avg. of 1 qtr) 4,961 2,753 3,024 80.23% -8.97%

Trading Volume (shares) (high in 1 qtr) 47,150 18,074 26,696 160.87% -32.30%

Trading Volume (shares) (low in 1 qtr) 140 15 21 833.33% -28.57%

Ratio - High/low trading volume 336.79 1,204.93 1,271.24 -72.05% -5.22%

Ratio - High/average trading volume 9.50 6.57 8.83 44.75% -25.63%

Source - Capitaline

TABLE 7 (A): OWNERSHIP & MANAGEMENT RISKS

Dec-17 Jun-17 Dec-16 Comments

Shar

eho

ldin

g (%

)

Promoter

shareholding 22.23 22.23 22.23 • No new equity shares were issued during the

period from 1st January, 2017 to 31st

December, 2017.

• There was no change in the shareholding

during the said period.

• The promoters have pledged 99.80% of their

shareholding.

Public - Institutional

shareholding 0.00 0.00 0.00

Public - Others

shareholding 77.77 77.77 77.77

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 Dinesh Kumar 11.27% 1 JM Financial Services Limited 4.17%

2 Sree Sahasya Enterprises Pvt. Ltd. 4.83% 2 Thunuguntla Haritha 1.69%

3 Sheshank Kumar 2.27% 3 Globe Fincap Limited 1.35%

4 Sharukh Kumar 2.03% 4 Businessmatch Services (India) Pvt. Ltd. 1.23%

5 Akshay Mittal 1.06%

Source - NSE

TABLE 7 (B): OWNERSHIP & MANAGEMENT RISKS

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

Preferential issue to promoters No preferential issue of shares was made to the promoters in 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 did not issue any shares to the employees under any of its ESOP Scheme

in FY 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. Solar Photovoltaic Panels 100%

Source - Annual Report FY 2016-17




5 | P A G E



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




6 | P A G E



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



7 | P A G E



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




8 | P A G E



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