TRUE VALUE SOLUTIONS LTD

SUBMITTED BY:

I V S SWAMY

(11915648)

SUBMITTED TO:

RUPINDER KATOCH

LOVELY PROFESSIONAL UNIVERSITY

 CONTENTS
TITLE PG.NO
1) INTRODUCTION…………………………………………………………....
INTRODUCTION:
True Value Solutions Limited is a Public incorporated on 14 January 2002. It is
classified as Non-govt company and is registered at Registrar of Companies, Delhi.
Its authorized share capital is Rs. 5,000,000 and its paid-up capital is Rs. 500,000.
It is involved in Business activities N.E.C. True Value Solutions Limited's Annual
General Meeting (AGM) was last held on 20 August 2018 and as per records from
Ministry of Corporate Affairs (MCA), its balance sheet was last filed on 31 March
2018.
Directors of True Value Solutions Limited are Rajiv Champakasseril Surendra Nath,
Rikki Kalra, Ashish Jain, .True Value Solutions Limited's Corporate Identification
Number is (CIN) U74999DL2002PLC113814 and its registration number is 113814.
It's a public unlisted company and is classified as 'company limited by shares'.
Company's authorized capital stands at Rs 50.0 lakhs and has 10.0% paid-up
capital which is Rs 5.0 lakhs. True Value Solutions Limited last annual general
meet (AGM) happened on 20 Aug, 2018. The company last updated its financials
on 31 Mar, 2018 as per Ministry of Corporate Affairs (MCA).
True Value Solutions Limited is majorly in Business Services business from last 17
years and currently, company operations are active.
 LIQUIDITY RATIOS
1. Current ratio of the company: -
Formulae: Current Assets/Current Liabilities
Table no.1 Comparison of current ratio of True value solutions ltd
in Mar 2019 with that of Apollo tricoat tubes ltd and RCI Industries and Technologies ltd
(2018-19)

Competitors
True Value solutions ltd Apollo tricoat tubes RCI Industries and
ltd Technologies ltd
Current ratio 23.43 0.51 1.13

Chart Title
1.2
1
0.8
0.6
0.4
0.2
0
Competitors

True Value solutions ltd Current ratio 23.43

Sources:
https://m.moneycontrol.com/stock/truevaluesolutionsltd/tsl/financials/financials-ratio
https://moneycontrol/company/Apollotricoattubesltd/ratios.html
Interpretation:
1 – True value solutions ltd is having a current ratio of 23.43 which is greater than the ideal
ratio (2:1)
2-The company is having sufficient current assets to pay off the current liabilities.
3- Sufficient margin of safety of is not available to current liabilities.
4-This unsatisfactory current ratio indicates that business can pay all of its debts on time.
5- Current ratio of the company is unsatisfactory.
The current ratio of the company is 23.43 which is greater than the competitors Apollo tricoat
tubes ltd 0.51 and RCI industries and technologies ltd that means the current assets are
sufficient to pay current liabilities in Indo count, satisfactory in RCI industries and technologies
ltd and unsatisfactory in Apollo tricot tubes ltd.
Current ratios in (2017-2018): -

competitors
True value solutions ltd Apollo tricoat tubes ltd RCI industries and
technologies ltd

Current ratio 64.05 3.33 1.38

Chart Title
3.5
3
2.5
2
1.5
1
0.5
0

Sources:
https://m.moneycontrol.com/stock/truevaluesolutionsltd/financials/financials-ratio
https://www.goodreturns.in/company/apollotricoattubesltd/ratios.html
https://www.goodreturns.in/company/RCIindustries and technologies ltd/ratios.html
Interpretation:
1 – True value solutions ltd having a current ratio of 64.05 which is greater than the ideal ratio
(2:1)
2-The company is having insufficient current assets to pay off the current liabilities.
3- Sufficient margin of safety of is not available to current liabilities.
4-This unsatisfactory current ratio indicates that business can pay all of its debts on time.
5- Current ratio of the company is unsatisfactory.
The current ratio of the company is 64.05 which is greater than the competitors of Apollo
tricoat tubes ltd 3.33 and RCI industries and technologies ltd that means the current assets are
insufficient to pay current liabilities in Indo count, satisfactory in RCI industries and technologies
ltd and unsatisfactory in Apollo tricoat tubes ltd.

2. Quick ratio or liquid ratio: -

Formulae- Quick Assets/ Current Liabilities
Table no.2 Comparison of Quick ratio of True value solutions ltd in Mar 2019 with that of
Apollo tricoat tubes ltd and RCI industries and technologies ltd. (2018-2019)

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd
Quick ratio 23.43 0.36 0.94

Chart Title
1
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0

Competitors

Sources –
https://m.moneycontrol.com/stock/true value solutions ltd/financials/financials-ratio
https://www.goodreturns.in/Apollo tricoat tubes//ratios.html
https://www.goodreturns.in/company/RCI Industries and technologies ltd/ratios.html
Interpretation-
1 –True value solutions ltd is having a current ratio of 23.43which is not equal to ideal ratio (1:1)
2-The company is having sufficient Quick assets to pay off the current liabilities.
3- Insufficient margin of safety of is available to current liabilities.
4-This unsatisfactory quick ratio indicates that business can pay all of its debts on time.
5- Current ratio of the company is unsatisfactory.
The Quick ratio of the company is true value solutions ltd which is greater than the competitors
Apollo tricoat tubes ltd 0.36 and RCI Industries and technologies ltd that means the current
assets are sufficient to pay current liabilities in Indo count, Unsatisfactory with of Apollo tricoat
tubes ltd and RCI industries and technologies ltd.
Quick ratios of (2017-2018): -

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd
Quick ratio 64.02 3.29 0.99

Chart Title
3.5

2.5

1.5

0.5

Competitors
Sources –
https://m.moneycontrol.com/stock/true value solutions ltd/financials/financials-ratio
https://www.goodreturns.in/company/apollo tricoat tubes ltd /ratios.html
https://www.goodreturns.in/company/RCI industries and technologies ltd/ratios.html
Interpretation-
1 –True value solutions ltd is having a current ratio of 64.02 which is not equal to ideal ratio
(1:1)
2- The company is having sufficient Quick assets to pay off the current liabilities.
3- Insufficient margin of safety of is available to current liabilities.
4-This unsatisfactory quick ratio indicates that business can pay all of its debts on time.
5- Current ratio of the company is unsatisfactory.
The Quick ratio of the company is 64.02 which is greater than the competitors Apollo tricoat
tubes ltd and RCI industries and technologies ltd that means the current assets sufficient to pay
True value solutions ltd, Unsatisfactory in Apollo tricoat tubes ltd and RCI industries and
technologies ltd.
 Turnover ratio
1. Stock or inventory turnover ratio: -
Formulae – Cost of Goods Sold/ Average Investment
Table no.3 Comparison of inventory ratio of true value solutions ltd in Mar 2019 with that of
Apollo tricoat tubes ltd and RCI industries and technologies ltd. (2018-2019)

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd
Inventory 686.22 0.91 13.83
turnover ratio

Chart Title
800
700
600
500
400
300
200
100
0
True value solutions ltd Apollo tricoat tubes ltd RCI industries and
technologies ltd

turnover ratio

Sources:
https://m.moneycontrol.com/stock/truevaluesolutionsltd/financials/financials-ratio
https://www.goodreturns.in/company/apollo tricoat tubes ltd/ratios.html
https://www.goodreturns.in/compan/RCI industries and technologies ltd/ratios.html

Interpretation:
1.True value solutions ltd inventory ratio is 686.22 is high turnover ratio
2.It says that the firm is efficient to managing its stock
3.High turnover ratio shows fast moving stock
4.The company true value solutions ltd stock is quickly converted into cash
The inventory turns over ratio of the company true value solutions ltd is almost greater than
the competitor Apollo tricoat tubes ltd which is0.91 and less than RCI industries and
technologies ltd to sustain in the competition in respect of sales with Trident ltd, the company
true value solutions ltd should try to increase its inventory turnover ratio.

Stock ratios in (2017-2018): -

Competitors

True value Apollo tricoat tub RCI industries and technologies

solutions ltd es ltd ltd
Inventory 13.18 240.87 16.12
turnover ratio

Chart Title
300
250
200
150
100
50
0
True value solutions Apollo tricoat tub es RCI industries and
ltd ltd technologies ltd

turnover ratio

Sources:
https://m.moneycontrol.com/stock/true value solutions ltd financials/financials-ratio
https://www.goodreturns.in/company/Apollo tricoat tubes ltd/ratios.html
https://www.goodreturns.in/company/rci industries and technologies ltd/ratios.html

Interpretation:
1.True value solutions ltd inventory ratio of 13.18 is high turnover ratio
2.It says that the firm is efficient to managing its stock
3.High turnover ratio shows fast moving stock
4.The company true value solutions ltd stock is quickly converted into cash
The inventory turns over ratio of the company true value solutions ltd is almost less than the
competitor Apollo tricoat tubes ltd which is 240.87 and greater than RCI industries and
technologies ltd to sustain in the competition in respect of sales with Trident ltd, the company
true value solutions should try to increase its inventory turnover ratio.

2. Debtors turnover ratio:

Formulae – Net Credit Sales/ Average Debtors

Table no.4 Comparison of Debtor turnover ratio of True value solutions ltd in Mar 2019 with
that of Apollo tricoat tubes ltd and RCI industries and technologies ltd. (2018-2019)

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and Sources:
technologies
ltd https://m.money
control.com/stock/T
rue value solutions
Debtor 6.81 3.53 3.63 ltd
turnover ratio

/financials/financials-ratio
 https://www.goodreturns.in/company/apollo tubes ltd/ratios.html

https://www.goodreturns.in/company/RCI industries and techno ltds/ratios.html

Interpretation:
1.True value solutions ltd Debtor turnover ratio of 6.08 which shows company is collecting
money 6 times in a year.
2.It says that that the firm is efficient in collecting the money from its debtors
3.High debtor turnover ratio shows fast company collecting the money and being in
profitable sector
4.The company Indo count stock shows the positive output of collecting the money from
debtors
The debtor turnover ratio of true value solutions ltd is 6.81 very high compared to Apollo
tricoat tubes which is of RCI industries and technologies ltd. To sustain in the competition in
respect debtor’s turnover with Apollo tricoat tubes ltd, the company Indo count should try to
increase its Debtor turnover ratio.

Debtors turnover ratios in (2017-2018): -

Competitors
True value Apollo tricoat RCI industries
solutions ltd tubes ltd and
technologies
ltd
Debtor 4.64 3.94 3.60
turnover ratio

Sources:

https://m.moneycontrol.com/stock/true value solutions ltd/financials/financials-ratio

https://www.goodreturns.in/company/apollo tricoat tubes/ratios.html
https://www.goodreturns.in/company/RCI industries and techno ltd/ratios.html

Interpretation:
 1.True value solutions ltd Debtor turnover ratio of 4.64 which shows company is collecting
money 4 times in a year.
2.It says that that the firm is efficient in collecting the money from its debtors
3.High debtor turnover ratio shows fast company collecting the money and being in
profitable sector
4.The company Indo count stock shows the positive output of collecting the money from
debtors
The debtor turnover ratio of True value solutions ltd is 4.64 good compared to Apollo tricoat
tubes ltd which is only 3.94 and even RCI industries and techno Ltd. To sustain in the
competition in respect of debtor’s turnover with Apollo tricoat tubes ltd, the company Indo
count should try to increase its Debtor turnover ratio.

3. Creditors turnover ratio: -

Formulae – Net Cr Purchases/ Average Payable
Table no.5 Comparison of creditor turnover ratio of true value solutions ltd in Mar 2019
with that of Apollo tricoat tubes ltd and RCI industries ltd. (2018-2019)

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd
Creditor
2.11 4.22 3.58
turnover ratio

Sources:

https://www.moneycontrol.com/financials/indocountindustries/ratios/ICI07
 https://m.moneycontrol.com/stock/srindustries/SRI/financials/financials-ratio
https://www.moneycontrol.com/financials/trident/ratios/AI01

Interpretation:
1. True value solutions ltd creditor turnover ratio of 2.11 which shows company is paying
money 2 times in a year.
2.It says that that the firm is not so efficient in paying the money from its creditors.
3.low creditor turnover ratio shows how low company paying the money.
4.The company True value solutions ltd stock shows the negative output of paying the
money to creditors.
The Creditor turnover ratio of true value solutions ltd is very low compared to RCI industries
and techno ltd which is only 2.11 but it is comparatively low compared to Apollo tubes ltd
which is 3.58. To sustain in the competition in respect of creditors’ turnover with ltd, the
company Indo count should try to increase its creditor turnover ratio.

Creditors ratios in (2017-2018):

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd
Creditor
3.05 4.55 3.69
turnover ratio

Sources:

https://www.moneycontrol.com/financials/indocountindustries/ratios/ICI07
https://m.moneycontrol.com/stock/srindustries/SRI/financials/financials-ratio
https://www.moneycontrol.com/financials/trident/ratios/AI01

Interpretation:
 1.True value solutions ltd creditor turnover ratio of 3.05 which shows company is paying
money 3 times in a year.
2.It says that that the firm is low efficient in paying the money from its creditors.
3.low creditor turnover ratio shows how fast company paying the money.
4.The company True value solutions ltd stock shows the negative output of paying the
money to creditors.
The Creditor turnover ratio of True value solutions ltd is very low compared to Apollo tubes ltd
which is only 4.55 but it is comparatively low compared to RCI industries ltd which is 3.69. To
sustain in the competition in respect of creditors’ turnover with Aarti ltd, the company Indo
count should try to increase its creditor turnover ratio

Solvency Ratio

1. Debt equity ratio: -

Formulae – Long Term Debts/ Shareholders
Table no.9 Comparison of Debt equity ratio of True value solutions ltd in Mar 2019 with
that of Apollo tricoat tubes ltd and RCI industries and technologies ltd. (2018-2019)

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd
Debt equity 0.05 0.12 1.04
ratio
Sources:
https://www.moneycontrol.com/financials/indocountindustries/ratiosVI/ICI07#ICI07
https://www.moneycontrol.com/financials/srindustries/ratiosVI/SRI#SRI
https://www.moneycontrol.com/financials/trident/ratiosVI/AI01#AI01
Interpretation:
1- Debt equity ratio of Indo count company is 0.05 which is less than the ideal ratio 1:2
2- The company won’t get the advantage of trading on equity
3- So, there will be less burden on fixed interest charges
4- So, the lender margin of safety is high

The True value solutions ltd ratio if the company is high compared to the competitor Apollo
tubes ltd which is 0.12 which show Negative debt equity ratio means that the value of the
company is negative. It means that that the company's liabilities are more than its assets. The
company RCI industries and techno ltd debt equity ratio of high 1.04 which shows the lender
margin of safety is high.

(2017-2018)
Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd
Debt equity 0.36 0.11 1.18
ratio
Sources:
https://www.moneycontrol.com/financials/true value solutions ltd/ratiosVI/ICI07#ICI07
https://www.moneycontrol.com/financials/apollondustries/ratiosVI/SRI#SRI
https://www.moneycontrol.com/financials/trident/ratiosVI/AI01#AI01
Interpretation:
1- Debt equity ratio of True value solutions ltd company is 0.36 which is less than the ideal
ratio 1:2
2- The company won’t get the advantage of trading on equity
 3- So, there will be less burden on fixed interest charges
4- So, the lender margin of safety is high

The True value solutions ltd ratio if the company is high compared to the competitor of RCI
industries and techno ltd which is 0.11 which show Negative debt equity ratio means that the
value of the company is negative. It means that that the company's liabilities are more than its
assets. The company Apollo tubes ltd debt equity ratio of high 1.18 which shows the lender
margin of safety is high.

2. Interest coverage ratio: -

Formulae – Earnings After Income & Tax / Fixed Interest Charges
Table no.10 Comparison of Interest coverage ratio of True value solutions ltd in Mar 2019
with that of Apollo tricoat tubes ltd and RCI industries and Technologies ltd (2018-2019)

Competitors

True value Apollo tricoat RCI industries

solutions ltd tubes ltd and
technologies
ltd

Interest 2.36 5.03 4.11

coverage ratio

Sources:
https://www.moneycontrol.com/financials/true value solutions/consolidated/ICI07?
classic=true
https://www.moneycontrol.com/financials/srindustries/ratiosVI/SRI#SRI
https://www.moneycontrol.com/financials/rci techno industries /tiosVI/AI01#AI01
Interpretation:
1- The company True value solutions ltd having 2.36 ratio of interest coverage ratio
2- It shows the debt serving capacity of the company
3- The company having less ratio, it shows that not safety is available to creditors
4- There are less chances of creditors who will show the interest as there are less chances
of paying the interest of the company.

Interest coverage ratio of True value solutions ltd is so low which shows that the of interest
payment is less. But the company RCI industries ltd ratio is more which is 5.03, it says that
company rate of return towards the interest is so more compared to its competitors. Compared
to True value solutions ltd coverage ratio, Apollo tubes ltd having high ratio which is 4.11 which
says that is giving more interest compared to its competitors.

(2017-2018):

Competitors

True Value Apollo tricot RCI industries

solutions ltd tubes ltd and
technologies
ltd

Interest 1.78 5.27 4.09

coverage ratio

Sources:
https://www.moneycontrol.com/financials/truevaluesolutions/consolidated-ratios VI/ICI07?
classic=true
https://www.moneycontrol.com/financials/apolloindustries/ratiosVI/SRI#SRI
https://www.moneycontrol.com/financials/trident/ratiosVI/AI01#AI01
Interpretation:
1- The company True value solutions ltd having 1.78 ratio of interest coverage ratio
2- It shows the debt serving low capacity of the company
3- The company having less ratio, it shows that not safety is available to creditors
4- There are less chances of creditors who will show the interest as there are less chances
of paying the interest of the company.

Interest coverage ratio of true value solutions ltd is so low which shows that the of interest
payment is less. But the company Apollo tubes ltd ratio is more which is 5.27, it says that
company rate of return towards the interest is so more compared to its competitors.
Compared to true value solutions ltd coverage ratio, RCI industries and techno ltd having
high ratio which is 4.09 which says that is giving more interest compared to its competitors

Profitability ratio
1. Dividend per share: -
Formulae- Dividend paid / No of shares
Table no.6 Comparison of dividend per share of 2019 to 2018 and 2017

Years

2019 2018 2017

Dividend per
share

Sources:
https://www.moneycontrol.com/financials/indocountindustries/ratios/ICI07
Interpretation:
1- Dividend per share of True value solutions ltd is 000which means that investors getting
return for each share value of investment.
2- It shows that the investor is getting high level of return compared to the investment.
3- The company Indo count is having more return in terms of dividend per share.
4- We can say that it is advisable to invest shares in the Indo count company

Dividend per share of the company Indo count is less in the year 2019 compared to the years
2018 and 2017. So, it is advisable to invest in the company to get high return on investment.
Compared to the year 2019 dividend per share is more in years 2018, which is 0.80 and in the
year 2017, which is 0.80(same as the year 2018). It is also advisable to invest in the company to
get in to get high return on investment in 2018 and 2017 also.

2. Earning per share: -

Formulae – NP after Tax – Preference Dividend/ No of equity shares outstanding
Table no.7 Comparison of Earning per share of 2019 to 2018 and 2017.

Years

2019 2018 2017

Earnings per share 0.06 0.44 0.03

Sources:
https://www.moneycontrol.com/financials/indocountindustries/ratios/ICI07
Interpretation:
1- The company true value solutions ltd is having 0.06 times of the investment
2- In true value solutions ltd for one share the earing of shareholder is 0.06 Rupees
3- It says that the company is less profitable and company has less profits to distribute to its
shareholders.
4- We can also say that the company has weak financial position
5- It is not so reliable to invest in the True value solutions ltd.

Compared to the year 2018 and 2017 the Earing per share of the company of the year 2019 is
less. We can clearly see the reducing return for every year. The Earning per share of the
company in 2018 is 0.44 which is less than the year 2019 and The Earning per share of the
company in 2017 is 0.03 which is much higher than that of the year 2019 and 2018.Altough the
investors are getting more return than the investment amount but the investor should think
twice to invest as the share value has been reducing from year to year gradually.

3. Price earnings ratio: -

Formulae – Market Price Share / Earnings Per share
Table no.8 Comparison of Earning per share of 2019 to 2018 and 2017.

Years

2019 2018 2017

P/E ratio 0.00 12.78 15.65

Sources:
https://www.moneycontrol.com/india/stockpricequote/textiles-spinning-cotton-
blended/indocountindustries/ICI0
Interpretation:
1- The company True value solutions ltd less profit on the investment.
2- In True value solutions ltd the market price of the share of the company is 0.00 times
the earnings of the company.
3- It says that the company is very less profitable and company has more profits to
distribute to its shareholders.
4- We can also say that the company has very weak financial position
5- It is not so reliable to invest in the True value solutions ltd.

Compared to the year 2018 and 2017 the Earing per share of the company of the year 2019 is
less. We can clearly see the reducing price earnings ratio for every year. The price earing ration
of the company in 2018 is 12.78 which is more than the year 2019 and The Earning per share of
the company in 2017 is 15.65 which is much higher than that of the year 2019 and
2018.Altough the investors are getting less than the investment amount but the investor should
think twice to invest as the share value has been reducing from year to year gradually.

4. Return on investment: -
Formulae – NP before Interest & Tax / Capital Employed.
Table no.9 Comparison of Earning per share of 2019 to 2018 and 2017.

Years

2019 2018 2017

Return on 5.22 5.13 4.75

investment

Sources:
 https://in.investing.com/equities/indo-count-industries-ltd-ratios

Interpretation:
1- The True value solutions ltd return on investment is less which 5.22.
2- We can say on rupee 100 invested in a company the company gets a return of 5.22
which shows the Overall efficiency of firm
3- The true value solutions objective is to maximize the earning of its investors

Compared to the year 2018 and 2017 the Return on investment of the company of the year
2019 is less. We can clearly see the reducing return of investment for every year. The return on
investment ratio of the company in 2018 is 5.13 which is more than the year 2019 and The
Earning per share of the company in 2017 is 4.75 which is less than that of the year 2019 and
2018.

5.Return on equity capital: -

Formulae – NP after Tax – Preference Dividend / Shareholders
Table no.10 Comparison of Earning per share of 2019 to 2018 and 2017.

Years

2019 2018 2017

Return on equity 1.81 2.04 4.58

capital
Sources:
https://in.investing.com/equities/indo-count-industries-ltd-ratios

Interpretation:
1-The true value solutions ltd Return on equity capital is more which is 1.81
2-It shows the company is low efficient in getting income on investment
3- We can say on rupee 100 invested by equity share holder a return of 1.81 which shows the
Overall efficiency of firm.
4- True value solutions objective is to maximize the earning of its Equity holders
Compared to the year 2018 and 2017 the Return on equity capital of the company of the year
2019 is less. We can clearly see the reducing return on equity capital for every year. The return
on Return on equity capital of the company in 2018 is 2.04 which is more than the year 2019
and The Return on equity capital of the company in 2017 is 4.58 which is more than that of the
year 2019 and 2018.