MIRA
INFORM REPORT
|
Report Date : |
02.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
REDINGTON (INDIA)
LIMITED |
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Registered
Office : |
SPL Guindy House,
95, Mount Road, Guindy, Chennai - 600 032, Tamilnadu, India |
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Country : |
India |
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Financials (as
on) : |
31.03.2005 |
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Date of
Incorporation : |
28.09.1994 |
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Com. Reg. No.: |
18-28758 |
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CIN No.: [Company Identification No.] |
U52599TN1994PLC028758 |
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TAN No.: (Tax
Deduction & Collection Account No.) |
CHER00540B |
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PAN No.: (Permanent
Account No.) |
AABCR0347P |
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Legal Form : |
A Public Limited
Liability Company. The Company’s shares are listed on the Stock Exchanges. |
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Line of
Business : |
Trading, Importing
and Distributing of Computers, Computer Peripherals, Printers, Plotters and
Spares including after sales service. |
RATING &
COMMENTS
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MIRA’s Rating
: |
Aa |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit
Limit : |
USD 14700000 |
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Status : |
Good |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and reputed company having fine track. Trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company is
doing very well. It can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
|
Registered
Office : |
SPL Guindy House,
95 Mount Road, Guindy, Chennai - 600 032, Tamilnadu, India |
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Tel. No.: |
91-44-22353313/14/15/16/17/18/42243281/42243499/
52243535 |
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Fax No.: |
91-44-22352790 |
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E-Mail : |
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Website : |
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Sales And
Service Centres: |
Located at : v
Chennai v Bangalore v
Hyderabad v
Trivandrum v
Coimbatore v Visakhapatnam v
Cochin v
Madurai v
Hubli v
Calicut v
Hyderabad |
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Branches : |
Located at : v New Delhi v Chandigarh v Uttar Pradesh v Punjab v Rajasthan v Uttaranchal v Kolkata v Orissa v Bihar v Guwahati v Gujarat v Karnataka v Goa v Mumbai v Pune v Gujarat v Tamilnadu |
DIRECTORS
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Name : |
Mr. M.
Raghunandan |
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Designation : |
Executive Director |
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Address : |
22, First Street, Cenoataph Road, Chennai - 600 018, Tamilnadu |
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Date of Birth
: |
01.11.1947 |
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Date of
Appointment: |
01.03.1999 |
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Name : |
Mr. R.
Jayachandran |
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Designation : |
Non Executive Director |
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Address : |
1 Belmont Road,
Singapore - 259 959 |
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Date of Birth
: |
27.04.1944 |
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Date of
Appointment: |
15.10.1993 |
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Name : |
Mr. R. Srinivasan |
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Designation : |
Managing Director |
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Address : |
15 Ardmore Park, #05-02, Singapore – 269 852 |
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Date of Birth
: |
28.06.1946 |
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Date of
Appointment: |
15.10.1993 |
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Name : |
Mr. R. Vijayaraghavan |
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Designation : |
Independent Director |
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Address: |
33 Warran Road, Mylapore, Chennai – 600 004, Tamilnadu, India. |
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Date of Birth
: |
02.01.1950 |
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Date of
Appointment: |
11.09.1995 |
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Name : |
Mr. HU Jialung |
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Designation : |
Non Executive Director |
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Address: |
19th Floor, 104 Songde Road, Sinyi District, Taipei,
Taiwan Country |
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Date of Birth
: |
23.02.1942 |
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Date of
Appointment: |
30.12.2004 |
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Name : |
Mr. Huang Chi Cheng |
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Designation : |
Non Executive Director |
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Address: |
2nd Floor, No. 9 Lane, 139 Sec 2 Bei Sin Road, Sie Tien,
Taiwan. |
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Date of Birth
: |
26.03.1957 |
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Date of
Appointment: |
30.12.2004 |
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Name : |
Mr. Raj Shankar |
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Designation : |
Non Executive Director |
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Address: |
65, Chulia Street, 49-04 OCBC Centre, Singapore. |
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Date of Birth
: |
19.06.1958 |
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Date of
Appointment: |
30.12.2004 |
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Name : |
Mr. Steven A Pinto |
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Designation : |
Independent Director |
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Name : |
Mr. J Ramachandran |
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Designation : |
Chairman (Non-Executive) |
KEY EXECUTIVES
|
Name : |
T. G. Janakiraman |
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Designation : |
Company Secretary |
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Name : |
Mr. S. V. Krishnan |
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Designation : |
Secretary |
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Address: |
02 8th Street, Flat No. C2, Ashreya Srinivas Apartments, Nanganallur,
Chennai – 600 064. |
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Date of Birth
: |
21.04.1973 |
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Date of
Appointment: |
30.11.2002 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names
of Shareholders |
No. of Shares |
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Redington
(Mauritius) Limited |
38663197 |
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BTS Asset
Management Limited |
1895440 |
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R. Govindan |
10 |
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Aniruddha Joshi |
10 |
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P. S. Neogi |
10 |
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B Arunachalam |
10 |
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Sahara Mutual
Fund |
20 |
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M Raghunandan |
10 |
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S V krishnan |
10 |
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Synnex Mauritius
Limited |
22038188 |
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E H Kasturi
Rangan |
10 |
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A Sethuraman |
10 |
BUSINESS DETAILS
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Line of
Business : |
Trading,
Importing and Distributing of Computers, Computer Peripherals, Printers,
Plotters and Spares including after sales service. |
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Products : |
Ø
Computer
Peripherals Ø
Services
income
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Agencies Held: |
Ø IBM Ø Intel Ø Avaya Ø HP Ø Epson Ø Compaq Ø Philips Ø Samsung Ø Microsoft Ø APC Ø CA Ø Microsoft Ø Kobian Ø Motorala |
GENERAL
INFORMATION
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No. of
Employees : |
350 |
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Bankers : |
Ø Hongkong and Shanghai Banking Corporation
Limited 30, Rajaji Salai, Chennai - 600 001, Tamilnadu Ø Indus Ind Bank 3 Village Road, Nungambakkam, Chennai – 600 001, Tamilnadu (Facility : Consolidating Limit Rs. 400 millions Ø
Citi Bank NA 2 Club House Road, Chennai – 600002 Ø
HDFC Bank
Limited 751-B, Anna Salai, Mariam Center, Chennai – 600 002. Ø
State Bank
of India Commercial Branch, 232 NSC Bose Road, Chennai – 600 001. |
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Facilities: |
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Banking Relations : |
Good |
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Auditors : |
Deloitte Haskins
& Sells Chartered
Accountants |
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Address: |
2nd
Floor, “Temple Tower, 672, Anna Salai, Nandanam, Chennai – 600 035. |
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Tel. No.: |
91-44-52131124-28 |
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Fax No.: |
91-44-52131129 |
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Subsidiaries : |
Ø Redington (India) Investment Private
Limited – 50000 (100%) Ø
Nook Holding
Private Limited – 50000 Shares (100%) Ø
Redington
Gulf FZE Ø
Redington
India Investment Limited |
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Holding
Company : |
Ø Redington (Mauritius) Limited III Floor, Les Cascade, Edith
Cavell Street, Mauritius Ø Redington Pte. Limited 1, Phillip Street, # 07-00, Singapore City Ø Chanrai Investment Corporation Limited |
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Associate
Companies: |
Ø Redington Singapore Pte Limited Ø Kewalram Singapore Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
65000000 |
Equity Shares of |
Rs. 10/- |
Rs. 650.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
60701445 |
Equity Shares of |
Rs. 10/- |
Rs. 607.014 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
630.800 |
607.000 |
293.900 |
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2) Advance Share Capital |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3045.400 |
2556.300 |
754.700 |
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NETWORTH |
3676.200 |
3163.300 |
1048.600 |
|
LOAN FUNDS |
|
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1] Secured Loans |
805.200 |
375.400 |
479.400 |
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2] Unsecured Loans |
1188.200 |
749.000 |
213.300 |
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TOTAL BORROWING |
1993.400 |
1124.400 |
692.700 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL
|
5669.600 |
4287.700 |
1741.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
206.400 |
149.100 |
137.400 |
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Capital work-in-progress |
5.100 |
0.900 |
1.700 |
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INVESTMENTS |
1775.600 |
1589.300 |
2.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1779.500 |
951.900 |
788.200 |
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Sundry Debtors |
3443.100 |
2538.600 |
1339.900 |
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Cash & Bank Balances |
330.700 |
89.200 |
247.300 |
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Loans & Advances |
801.100 |
493.800 |
493.100 |
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Total Current Assets |
6354.400 |
4073.500 |
2868.500 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
2236.500 |
1260.500 |
967.800 |
Provisions
|
435.400 |
264.600 |
300.500 |
Total
Current Liabilities
|
2671.900 |
1525.100 |
1268.300 |
Net
Current Assets
|
3682.500 |
2548.400 |
1600.200 |
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TOTAL
|
5669.600 |
4287.700 |
1741.300 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
Sales Turnover |
36926.600 |
25025.400 |
19635.000 |
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Other Income |
882.600 |
223.400 |
56.300 |
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Total Income |
37809.200 |
25248.800 |
19691.300 |
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Profit/(Loss) Before Tax |
453.300 |
272.100 |
233.400 |
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Provision for Taxation |
161.900 |
99.500 |
84.400 |
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Profit/(Loss) After Tax |
291.400 |
172.600 |
149.000 |
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Expenditures : |
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Manufacturing Expenses |
26.600 |
23.400 |
18962.000 |
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Administrative Expenses |
278.900 |
231.500 |
213.500 |
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|
Raw Material Consumed |
36415.300 |
24295.900 |
0.000 |
|
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Salaries, Wages, Bonus, etc. |
299.900 |
190.200 |
146.700 |
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Interest |
227.400 |
151.400 |
107.700 |
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Depreciation & Amortization |
28.700 |
26.500 |
28.000 |
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Other Expenditure |
79.100 |
57.800 |
0.000 |
|
Total
Expenditure |
37355.900 |
24976.700 |
19457.900 |
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KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.46 |
0.43 |
0.68 |
|
Long Term
Debt-Equity Ratio |
0.09 |
0.26 |
0.47 |
|
Current Ratio |
1.55 |
1.97 |
2.02 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
103.19 |
83.36 |
70.86 |
|
Inventory |
27.04 |
28.76 |
24.78 |
|
Debtors |
12.35 |
12.90 |
16.26 |
|
Interest Cover
Ratio |
2.99 |
2.80 |
3.17 |
|
Operating Profit
Margin(%) |
1.92 |
1.80 |
1.88 |
|
Profit Before
Interest And Tax Margin(%) |
1.84 |
1.69 |
1.74 |
|
Cash Profit
Margin(%) |
0.87 |
0.80 |
0.90 |
|
Adjusted Net
Profit Margin(%) |
0.79 |
0.69 |
0.76 |
|
Return On Capital
Employed(%) |
13.67 |
14.05 |
20.81 |
|
Return On Net
Worth(%) |
8.52 |
8.20 |
15.30 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.134.90 |
|
Low |
Rs.131.00 |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was
incorporated on 2nd May, 1961 at Mumbai in Maharashtra having
Company Registration Number 11998.
The Registered Office of the company was shifted from Mumbai in
Maharashtra to Chennai in Tamilnadu with effect from 28.09.1994 and a new
Company Registration Number 28758 of Chennai ROC was obtained.
Subject is a leading provider of IT products, logistics management and
other services ranked 9th by DQ Top 20 issue of 2002 .
Subject serves more than 5500 IT resellers in India covering over 220
cities.
It represents more than 15 leading global brands covering product categories
like systems, software, peripherals, components, network products, mobile
phones, etc.
The company generated as sales turnover of Rs. 13500 millions ($ 285
millions) in its last financial year ended 31st March, 2002.
Subject is a part of 140 years old $2 billion Transnational Kewalram
Chanrai Group headquartered at Singapore.
The group has a very strong business history with operations spread over
40 countries covering USA, Asia, Europe and Africa. The group’s operations are highly diversified and cover areas
like IT products and services, international trading, property development,
textiles manufacturing, etc.
The group has IT products and service business in India, USA, Singapore,
Dubai, Iran, Egypt, Saudi Arabia, Jordan and Kuwait. The IT products and services business generated revenue of $ 525
millions in the financial year 2001-02.
The company started its’ Indian operations in 1993 at Chennai with a
vision to become a leading distributor of world class IT products with a clear
emphasis on supply chain excellence and operational efficiency.
Subject started with distribution of HP peripherals and continued adding
newer products / brands to its portfolio, growing from 5 employees, 3 branches,
25 dealers and Rs. 90 millions sales in 1994 to 350 employees, 28 branches,
over 5500 dealers and Rs. 13500 millions in the year ended 31st
March, 2002.
The company has emerged as the industry's most efficient distribution
company. The company evolved its business from a small manual operation to a
very large technology driven operation, which provides "Best value for
money" to its customers.
Subject imports Home PCs, Notebooks, Commercial PCs,
Servers, Accessories, IMPACT Components,
Workstations, Printers, Software and Spares
Subject export Home PCs, Notebooks, Commercial PCs,
Servers, Accessories, IMPACT
Components, Workstations, Printers, Software and Spares
Corporate Overview
Redington (India) Limited, founded in 1993
is a leading provider of IT products, Logistics Management and other services
ranked 10th by DQ Top 20 issue of 2003. Redington serves more than 6700 IT
resellers in India covering over 450 cities. Redington (India) represents more
than 15 leading Global brands covering product categories like Systems,
Software, Peripherals, Components, Network products, Mobile Phones etc. The
company generated a sales turnover of Rs. 20810 millions ($476 million) in its last financial year which ended March 31st 2004.
The Group: Redington (India) Limited is a part of 140
years old $2 billion Transnational Kewalram Chanrai group head quartered in
Singapore. The group has a very strong business history with operations spread
over 40 countries covering US, Asia, Europe and Africa. The Group's operations
are highly diversified and cover areas like IT Products and Services,
International Trading, Property Development, Textiles Manufacturing etc. The
group has IT products and service business in India, US, Singapore, Dubai,
Iran, Egypt, Saudi Arabia, Jordan and Kuwait. The IT products and Services
business generated revenue of $841 million in the financial year 2003-04.
Redington started its Indian operations in 1993 at Chennai with a vision
to become a leading distributor of world class IT products with a clear
emphasis on supply chain excellence and operational efficiency. Redington
started with distribution of HP peripherals and continued adding newer Products/Brands
to its portfolio, growing from 5 employees, 3 branches, 25 dealers and Rs. 90
($2 million) millions sales in 1994 to 600 employees, 35 branches over 6700
dealers and Rs. 20810 ($476 million) millions in the recent financial year
(ending March 2004). Redington has emerged as the industry's most efficient
distribution company. The company evolved its business from a small manual
operation to a very large technology driven operation which provides "Best
value for money" to its customers.
Customer Profile: Redington sells only to its resellers and does not
sell directly to end users. Along with the expansion of product portfolio, and
geographics, Redington has successfully expanded into new market segments. From
a customer base of 25, largely mini distributors in 1994, Redington today sells
to more than 6700 customers including VARs, System Integrators, GID's ,
Government Resellers, Corporate resellers, Retailers. OEM's and E-tailers.
The company’s
product range includes :
System
·
Home PCs
·
Notebooks
·
Commercial PCs
·
Workstations
·
Servers
·
Accessories
·
Mobile Phones
·
Networking
Products
·
Printer –
Inkjet
·
Laserjet
Printers
·
Dot Matrix
Printers
·
Scanners
·
Coiers
·
Fax Machines
·
Plotters
·
CD Writers
·
Printer
Servers
·
Toner
Catridges
·
Ink Catridegs
·
Media Paper
·
Ribbons
·
Transparencies
– CDs
·
Processors
·
Mother Boards
·
Hard Disks
·
Disk Drives
·
Monitors
·
UPS
·
Mini Servers
·
Mid Range
Servers
·
Servers
·
Desktops
·
Ink
Cartridges, Tone, CDR, CDRW
·
Plotters
(Design Jets), Allinone
Business :
The Company achieved a turnover of Rs 134.50 millions as against Rs 77.70
millions in the previous year registering a growth of 73%. As compared to the
industry growth of around 45 percent the company registered a phenomenal growth
of 73 percent, thanks to the ever increasing presence and visibility in the
market place resulting in increased market share particularly in Small Office
Home Office and home segments of personal computers besides introduction of
hard disk drives business which has been well accepted by customers coupled
with increased sales of Intel range of products.
The Company enjoys a premium customer relationship with all its vendors-Hewlett
Packard Intel, Microsoft, Compaq, Samsung, IBM & Epson.
Service :
The Company had an excellent year in the Service business by focussing on
Skills revenues during the year. The Company has moved into a franchise model
for select locations to improve on Reach. The company is the leading service
partner for Samsung Monitors accounting for over 70% market share.
Finance :
The Company was upgraded to P1+ rating (read as P one plus) for Rs. 500
millions of Commercial Paper by Crisil. This rating indicates very strong
financial position to service both Principle & interest.
The Company's business model, process orientation and financial strength have
attracted an international investor to privately place funds with the
organisation. This has come in the form of Advance for share capital.
Subsidiary Companies :
As the accounting year of the subsidiary companies viz. Redington India
Investments Limited and Nook Holdings Limited has been extended to 30thJune
2001, the relevant accounts would be attached to the accounts of the Company in
the following year.
Business Outlook :
The Company is looking to the immediate future with optimism. The boom in the
Home segment and the awareness of Internet as a media for information by the
community at large, the potential for business in their country is
enormous.
With a view to spread their reach, the company has entered into an agreement
with a leading international Software Organization to create a private market
place for sale of Computers on the Web.
Financial Highlights:
The company has registered
a record turnover which is 27 per cent higher over the previous year, despite
keen competition and lower margin. The net profit for the year is also higher
by 11 per cent over last year.
Investment:
During the year company
acquired 100% equity holding in Redington Gulf FZE which has similar lies of
business in Middle East Countries & Africa. The consolidated turnover of
the company including the subsidiary for the year 2004-05 is Rs. 40479.703
Millions.
Expansion:
During the year company,
entered in to a strategic tie-up with Synex Group based in Taiwan, who are
pioneers in distribution of information technology products. This collaboration
would help the company in introducing more products and achieving significant
growth in turnover. Synnex Group holds 36.31% in the equity of the company.
Distribution Business:
The company has tied-up
new product distribution arrangement during the year with BENQ, SEAGATE,
ZENITH, ACER and PHILIPS. Besides adding new product lines in the IT Segment,
the company has also tied up with XEROX for distribution of their Office
Automation Products. The full potential of these arrangement would reflect in
the company’s performance in the coming years.
The company continues to
enjoy excellent relationship with all its existing suppliers- Hewlett Packard,
Intel, IBM, Microsoft, Motorola, Samsung, Epson, Computer Associates, Avaya,
APC, TVSE, Wipro, Cisci and EMC.
With the continuing growth
of ITES industry coupled with the reduction in custom /excise duty on computers
and components and the expected growth of the Indian telecom industry, the
company performance is expected to register significant growth.
Service Business:
The company has maintained
its leading position as after sales provider. The technical Call Center of the
company efficiently support and manage the service of HP Presario range of PC
products.
During the financial year
the company has opened exclusive Motorola service outlets in Certain key
metropolitan cities.
Credit Rating:
The company continues to enjoy
the highest rating P1+ (read a P one plus) for Commercial Paper /Short term
borrowings by CRISIL. This rating indicates very strong financial position to
service both principal and interest.
Fixed Assets:
Land & Building, Plant
& Machinery, Furniture & Fixtures, Office Equipment, Computers &
Software, Vehicles.
Form 8 Particular
for creation or modification of charges
|
Name of the
company |
REDINGTON
(INDIA) LIMITED |
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|
Presented By |
REDINGTON (INDIA)
LIMITED AND HSBC LIMITED, RAJAJI SALAI, CHENNAI. |
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|
1) Date and
description of instrument creating the change |
14.09.1995 Hypothecation
agreement of revolving stock and other movable assets and also present and
future book debts dated 14.09.1995 |
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|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 60.000
Millions |
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|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
The whole of the
company’s stocks viz. Raw Materials, Work-in-progress, Finished Goods (both
Present & Future) including stocks-in-transit and also present and future
book debts lying and/or situated any were in India. |
||||||||
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Rate of Interest
– Hongkong Bank Prime + 2% p.a. |
||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
Hong Kong &
Shanghai Banking Corporation
Limited, 30, Rajaji Salai, Chennai. |
||||||||
|
6) Date and brief description of instrument
modifying the charge |
21.01.2003 Letter from
Hongkong & Shahghai Banking Corporation Limited, Rajaji Salai, Chennai –
600 001, addressed to the company regarding the reduction in limit from Rs. 670.000
Millions to Rs. 315.000 Millions. |
||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The limit of Rs.
670.000 Millions already extended to the company has now been reduced to Rs.
315.000 Millions as detailed below:
The Securities
which are already hypothecated to the bank shall continue to secure the
present reduced limit of Rs. 315.000 Millions , together with interest,
costs, charges, and all other expenses which may be debited to the
appropriate account from time to time. All other terms
and conditions remain the same. |
|
Name of the
company |
REDINGTON
(INDIA) LIMITED |
|
Presented By |
REDINGTON
(INDIA) LIMITED |
|
1) Date and
description of instrument creating the change |
Letter of Hypothecation
of Stocks and Book Debts dated 24.09.2005, in favour of HDFC Bank Limited. |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 100.000
Millions |
|
3) Short particular
of the property charged. If the property acquired is subject to charge, date
of the acquired of the property should be given |
Pari passu first
charge on Stocks and Book debts of the company, present & future on a
pari passu basis with other lenders. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Various credit
facilities (both fund based and non fund based) to the extent of Rs. 100.000
Millions. |
|
5) Name and
Address and description of the person entitled to the charge. |
HDFC Bank Limited 751-B, Anna
Salai, Mariam Center, Chennai – 600 002. |
|
6) Date and brief description of instrument
modifying the charge |
NIL |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
NIL |
|
Name of the
company |
REDINGTON
(INDIA) LIMITED |
||||||||||||
|
Presented By |
Indusind Bank
Limited 3, Village
Road, Nungambakkam, Chennai – 600 034. |
||||||||||||
|
1) Date and
description of instrument creating the change |
Agreement of
Hypothecation of Goods and Assets dated 12.07.1996. |
||||||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 95.000
Millions |
||||||||||||
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Goods and Book
debts and all other movable taxes. |
||||||||||||
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
19.5% p.a. on
Quarterly rests + Interest Tax. |
||||||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
Indusind Bank
Limited 3, Village Road,
Nungambakkam, Chennai – 600 034. |
||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
25.08.2005 Letter from
Indusland Bank, Chennai Branch for reduction in overall Limits. |
||||||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The total Credit
Limits reduced from Rs. 200.000 Millions to Rs. 140.000 Millions. Amount (In Millions)
All other terms
& conditions of original charge & subsequent modification remain
unchanged. |
|
Name of the
company |
REDINGTON
(INDIA) LIMITED |
|||||||||||||||||||||
|
Presented By |
State Bank of
India Commercial
Branch, Chennai – 600 001 |
|||||||||||||||||||||
|
1) Date and
description of instrument creating the change |
Dated 07.02.1994 Agreement of Loan for overall limit Agreement of hypothecation
of goods and assets. Letter regarding
the grant of individual limits with in the overall limit. All dated
07.02.1994 |
|||||||||||||||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 60.000
Millions
|
|||||||||||||||||||||
|
3) Short particular
of the property charged. If the property acquired is subject to charge, date
of the acquired of the property should be given |
Hypothecation of
Stocks (Computer peripherals) and receivables. |
|||||||||||||||||||||
|
4) Gist of the terms
and conditions and extent and operation of the charge. |
3.25% over SBAR
with a minimum of 18.25% (inclusive of interest tax 0.75%) Margin : Stocks:
25%. Receivables : 50% (Cover Period: 60
days) |
|||||||||||||||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
State Bank of
India Commercial
Branch, Chennai – 600 001 |
|||||||||||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
Dated 23.11.2005 Supplemental
Agreement of Loan for Increase in the Overall Limit in Form CIA. Supplemental
Agreement of Hypothecation of goods and assets for increase in the overall
limit in form C2A. Supplemental
Agreement of Pledge of Goods and Assets for increase in the overall limit in
Form C3A. Letter regarding
the grant of individual limits with in the overall limit in form C5. All dated
23.11.2005 and relates to one and the same charge. |
|||||||||||||||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The credit
facility extended to the company from Satte bank of India, Commercial Branch,
Chennai – 600 001has now been enhanced from Rs. 360.000 Millions to Rs.
460.000 Millions comprising of: Amount (In Millions)
Securities: Hypothecation of
company current assets viz. Stocks and receivables on pari passu basis with
all other banks under Multiple Banking Arrangement. Earlier
Securities given by the company shall continue to cover the Enhanced limit of
Rs. 460.000 Millions Rate of Interest,
Margin and other terms and condition as per agreement. All other terms
and conditions remain the same. |
AS PER WEBSITE
12.01.2007
Redington
plans to raise Rs 14950 millions thru IPO
Redington (India), Chennai-based provider of IT products and
support services, is coming out with an initial public offering, IPO to raise
around Rs 14950
millions in the upper end of the price band of Rs 95-113 per share.
The proceeds will be used to part-fund setting up of automated distribution
centres, ADCs and service and repair centers, SRC in India and Dubai.
The company's offering of 13.200
millions equity shares of Rs 10 each comprises about 16.99% of the
fully diluted post-issue paid up capital of the company. The issue opens on
January 22 and closes on January 25.
Redington is a distributor of IT products and a provider of logistics, supply
chain management and other support services in India, West Asia and Africa. The
company is to set up four automated ADCs in India and Dubai, apart from 68 SRCs
in India.
"They will invest about Rs 425 millions in their wholly owned subsidiary
Redington Gulf FZE for establishing ADCs in Dubai and to install enterprise
resource and planning systems for operations in Middle East and Africa," R
Srinivasan, Managing Director, Redington said.
Enam Financial Consultants and Cameo Corporate Services are the lead managers
to the issue.
11.01.2007
Redington
to come up with Rs.1500 millions IPO
MD at Redington, R Srinivasan says that the money raised
from the new issue would go towards setting up a new distribution centers in
India. He adds that the company is looking to raise about Rs 1500 millions and
the price range is between Rs 95-113 per share.
Excerpts from CNBC-TV18`s exclusive interview with R Srinivasan:
Q: What kind of money are they looking to raise and what will be the
purpose?
A: They are looking to raise about Rs 1500 millions for
setting up new distribution centers in India. They are planning to set up four
distribution centrers in India.
The second objective of the issue is to set-up 68 service centres in India,
they already have 43 service centres. The third objective of the issue is to
set-up a repair facility for LCD panels, the market for which is growing quite
fast in India and repair at the moment is been done in Taiwan or in Korea.
Lastly, they intend setting up a very large distribution centre in Jebel Ali in
Dubai.
Q: How much of the revenues come from the Middle East and Africa?
A: 50% of their revenues are from the international business
and 50% from the domestic business. Last year their turnover was in the region
of about Rs 67000
millions, so approximately 50% of it is from Middle East and Africa.
Q: How much better will the margins be because of these service centres?
A: Their service margins are much higher than their product
distribution margins but in terms of their total revenue, the services do not
constitute more then 4% at this point in time.
Q: For the first half of 2007, they had done an EPS of just about Rs 5.
Would it be fair to annualize it for 2007 and say they will
close the year by about Rs 10?
A: No, on an annual basis it would be more prior to
dilution, post dilution it could be in the region of about Rs 10.3.
Q: They are
looking to raise about Rs 1500 millions and looking to issue about 13.200 millions
equity unless they are
looking to do pre IPO placement. Would it be fair to assume that they price
to IPO of about Rs 115?
A: Their price would between Rs 95-113 - that would be
correct.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service, Interpol,
etc.
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.43.13 |
|
UK Pound |
1 |
Rs.85.36 |
|
Euro |
1 |
Rs.57.64 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|