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KRBL (BOM:530813) Beneish M-Score : -1.85 (As of May. 16, 2024)


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What is KRBL Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -1.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for KRBL's Beneish M-Score or its related term are showing as below:

BOM:530813' s Beneish M-Score Range Over the Past 10 Years
Min: -2.95   Med: -2.03   Max: 2.68
Current: -1.85

During the past 13 years, the highest Beneish M-Score of KRBL was 2.68. The lowest was -2.95. And the median was -2.03.


KRBL Beneish M-Score Historical Data

The historical data trend for KRBL's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

KRBL Beneish M-Score Chart

KRBL Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -0.91 -2.95 -2.31 -2.15 -1.85

KRBL Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -1.85 - - -

Competitive Comparison of KRBL's Beneish M-Score

For the Packaged Foods subindustry, KRBL's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


KRBL's Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, KRBL's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where KRBL's Beneish M-Score falls into.



KRBL Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of KRBL for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.733+0.528 * 0.9271+0.404 * 0.2127+0.892 * 1.2738+0.115 * 0.9705
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0+4.679 * 0.189787-0.327 * 1.2107
=-1.85

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar23) TTM:Last Year (Mar22) TTM:
Total Receivables was ₹2,851 Mil.
Revenue was ₹53,632 Mil.
Gross Profit was ₹15,783 Mil.
Total Current Assets was ₹46,311 Mil.
Total Assets was ₹55,909 Mil.
Property, Plant and Equipment(Net PPE) was ₹8,992 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹757 Mil.
Selling, General, & Admin. Expense(SGA) was ₹0 Mil.
Total Current Liabilities was ₹7,295 Mil.
Long-Term Debt & Capital Lease Obligation was ₹368 Mil.
Net Income was ₹7,010 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹-3,601 Mil.
Total Receivables was ₹3,054 Mil.
Revenue was ₹42,106 Mil.
Gross Profit was ₹11,488 Mil.
Total Current Assets was ₹35,947 Mil.
Total Assets was ₹47,480 Mil.
Property, Plant and Equipment(Net PPE) was ₹9,113 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹742 Mil.
Selling, General, & Admin. Expense(SGA) was ₹726 Mil.
Total Current Liabilities was ₹4,870 Mil.
Long-Term Debt & Capital Lease Obligation was ₹505 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(2851.1 / 53632.3) / (3053.8 / 42105.6)
=0.05316 / 0.072527
=0.733

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(11487.9 / 42105.6) / (15783.3 / 53632.3)
=0.272835 / 0.294287
=0.9271

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (46310.6 + 8992.2) / 55909) / (1 - (35947.3 + 9112.5) / 47480.2)
=0.010843 / 0.050977
=0.2127

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=53632.3 / 42105.6
=1.2738

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(742.2 / (742.2 + 9112.5)) / (756.5 / (756.5 + 8992.2))
=0.075314 / 0.0776
=0.9705

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 53632.3) / (726.1 / 42105.6)
=0 / 0.017245
=0

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((367.8 + 7294.6) / 55909) / ((504.9 + 4869.9) / 47480.2)
=0.137051 / 0.113201
=1.2107

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(7009.8 - 0 - -3601) / 55909
=0.189787

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

KRBL has a M-score of -1.85 suggests that the company is unlikely to be a manipulator.


KRBL (BOM:530813) Business Description

Traded in Other Exchanges
Address
Sector-62, 5th and 6th Floor, C-32, Gautambudh Nagar, Noida, UP, IND, 201301
KRBL Ltd is a basmati rice processing company. The company's operations include seed development, contract farming, procurement of paddy, storage, processing, packaging, branding, and marketing of basmati rice. Operating segments include Agri and energy. Agri includes agricultural commodities, such as rice, furfural, seed, bran, and bran oil. The energy segment includes power generation from wind turbines, husk-based power, and solar power. Geographical segments consist of India, the Middle East, and others. The India segment contributes the majority of income to the company.

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