MIRA
INFORM REPORT
|
Report Date : |
13.12.2007 |
IDENTIFICATION
DETAILS
|
Name : |
PHILIPS
ELECTRONICS INDIA LIMITED |
|
|
|
|
Registered Office : |
7, Justice
Chandra Madhab Road, Kolkata 700020, West Bengal |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
31.01.1930 |
|
|
|
|
Com. Reg. No.: |
21-6663 |
|
|
|
|
CIN No.: [Company
Identification No.] |
U31902WB1930PLC006663 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP17956B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AACCKO806B |
|
|
|
|
Legal Form : |
A closely held
public limited company since all the shares in the market has been bought by
Philips, Holland |
|
|
|
|
Line of Business : |
Manufacturer of Electronic Products. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 30000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
The company is a
subsidiary of Koninklijke Philips Electronics N.V., a multi-national entertainment
giant. Available information indicates high financial responsibility of the
company. Trade relations are fair. Payments are reported as correct and as
per commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. The company is
now wholly owned company of Philips Holland. |
LOCATIONS
|
Registered Office : |
7, Justice
Chandra Madhab Road, Kolkata 700020, West Bengal, India |
|
Tel. No.: |
91-33-24753621/24753627/24964560/26912000 |
|
Fax No.: |
91-33-24753839/24938722/26912499 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
Owned |
|
Location : |
Commercial |
|
|
|
|
Corporate Office : |
Technopolis
Knowledge Park, Mahakali Caves Road, Chakala, Andheri (East), Mumbai - 400
093, Maharashtra, India |
|
Tel. No.: |
91-22-26912000 |
|
Fax No.: |
91-22-26912499 |
|
|
|
|
Plants
Locations / Warehouse : |
Lamp Factory, Kalwa
Kalwa Light
Factory, 3, MIDC, Industrial Area, Thane-Belapur Road, Post Box No. 79, Thane
- 400 601, Maharashtra, India Tel. No.
91-22-27600300-304 Fax No. 91-22-27600312
/ 313 Consumer Electronics Factory, Pimpri
Plot 80, Bhosari
Industrial Estate, P. O. Box No. 12, Pune - 411 026, Maharashtra, India Tel. No.
91-20-27120541 (10 Lines) Fax No.
91-20-27122049 Enabling Technologies Group, loni
Loni Kalbhor -
412 201 (Near Pune Central Railway), Maharashtra Tel. No.
91-20-26913156 Enabling Technologies Group. Kolkata
4 & 5, Canal
West Road, Kolkata - 700 015, West Bengal, India Tel. No.
91-33-22447120 / 8243 / 1335 Fax No.
91-33-22440012 Luminaire Business Unit
P/65, Taratolla
Road, Kolkata - 700 088, West Bengal, India Tel No.
91-33-24014245 / 4 Taratolla Light Factory
I, Taratolla
Road, Garden Reach, Kolkata - 700024, West Bengal, India Tel. No.
91-33-24695446/24695466 Fax. No.
91-33-24692197 Mohali Light Factory
Phase IX,
Industrial Focal Point, SAS Nagar, Mohali, Chandigarth – 160062, India Tel. No.
91-712-2211137 Fax. No.
91-172-2121685 Vadodara Light Factory
Kural Village,
Padra Jambusar Road, Baroda District - 391403, Gujarat, India Tel. No.
91-2662-242333 (5 Lines) Fax. No.
91-2662-242308 |
|
|
|
|
Regional
Offices / Branch : |
Northern Region 9th Floor, Ambadeep, 14, Kasturba Gandhi Marg, New Delhi- 110 001 Tel. : 91-11-2373 8616 Fax : 91-11-2373 8570 Eastern Region 7, Justice Chandra Madhab Road, Kolkata - 700 020 Tel.: 91-33-2475 3621 Fax : 91-33-2475 3839 Western Region Technopolis Knowledge Park, Mahakali Caves Road, Chakala, Andheri
(East), Mumbai 400 093 Tel.: 91-22-6691 2000 Fax : 91-22-6691 2499 Southern Region Temple Towers - 5th
Floor, Old No. 476, New No. 672, Anna Salai, Nandanam, Chennai 600035. Tel. 91-44-6650 1000 Fax : 91-44-6650 1085 Royal Philips Electronics Koninklijke Philips Electronics N. V. Breitner Center, Amstelplein2,
1096 BC Amsterdam, P. O. Box 77900,
1070 MX Amsterdam, The Netherlands Tel.-.31-20-5977777 |
|
|
|
|
Overseas
Offices : |
Royal Philips
Electronics, Koninklijke Philips, Electronics N. V. Breitner Center, Amstelplein 2,
Amsterdam, Holland |
DIRECTORS
|
Name : |
Mr. S. M. Datta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K. Ramchandran |
|
Designation : |
Vice Chairman and Managing Director |
|
Address : |
Technopolis Knowledge Park, Mahakaji Caves Road, Chakala, Andheri (East),
Mumbai- 700093 |
|
Qualification
: |
BE (Hons) MBA - IIM (Kolkata) |
|
Date of
Appointment : |
17/05/1993 |
|
Previous
Employment |
Voltas Limited |
|
|
|
|
Name : |
Mr. Cornells J. M. Reuvers |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. S. Venkataramani |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Alexius Collette |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Vineet Kaul |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Rajeev Bakshi |
|
Designation : |
Non Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. R. J. Wani |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Datye VS |
|
Designation : |
Senior General
Manager- HTP |
|
|
|
|
Name : |
Mr. Desai R. A. |
|
Designation : |
Senior General
Manager – Lighting |
|
|
|
|
Name : |
Mr. Gupta V. K. |
|
Designation : |
Senior General
Manager – Lighting |
|
|
|
|
Name : |
Mr. Arun Maira |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kaul Vineet |
|
Designation : |
Director and
Senior Vice President – HRM |
|
|
|
|
Name : |
Mr. Kohli Sudhir |
|
Designation : |
General Manager –
CE |
|
|
|
|
Name : |
Mr. Majmudar T.
K. |
|
Designation : |
General Manager –
DAP |
|
|
|
|
Name : |
Mr. Mallick
Santanu |
|
Designation : |
Senior General
Manager – F and A Lighting |
|
|
|
|
Name : |
Mr. Nandakishore
R. |
|
Designation : |
Senior General
Manager – Lighting Commercial |
|
|
|
|
Name : |
Mr. Nambissan
Ashok |
|
Designation : |
Senior General Manager
– ICI India Limited Legal and Sec and
General Counsel |
|
|
|
|
Name : |
Mr. Ramachandran
K. |
|
Designation : |
Vice Chairman and
Managing Director |
|
|
|
|
Name : |
Mr. Sharma Rakesh |
|
Designation : |
Vice Chairman and
Managing Director |
|
|
|
|
Name : |
Mr. Subramanian
Soundarajan |
|
Designation : |
Industrial Head –
Chief Executive |
|
|
|
|
Name : |
Mr. Sukumaran
Suresh |
|
Designation : |
Senior General
Manager – Chief Executive |
|
|
|
|
Name : |
Mr. S. Talwar |
|
Designation : |
Industrial Head –
Lighting |
|
|
|
|
Name : |
Mr. Vaidya Anil
V. |
|
Designation : |
Senior General
Manager – IT |
|
|
|
|
Name : |
Mr. Vankatramani.
S. |
|
Designation : |
Director and
Senior Vice President Lighting |
|
|
|
|
Name : |
Mr. Agarwal
Sudhir |
|
Designation : |
Senior General
Manager – Chief Executive |
|
|
|
|
Name : |
Mr. Chopra Rejeev |
|
Designation : |
Senior General
Manager – Luminaries |
|
|
|
|
Name : |
Mr. Inglis John
Bruce |
|
Designation : |
Director and
Senior Vice President – Finance |
|
|
|
|
Name : |
Mr. Karwal Rajeev |
|
Designation : |
Senior Vice
President – Chief Executive |
|
|
|
|
Name : |
Mr. Saharsrabudhe
MV |
|
Designation : |
Senior General
Manager – Chief Executive |
|
|
|
|
Name : |
Mr. Sengupta S. |
|
Designation : |
Senior General
Manager – Projects |
|
|
|
|
Name : |
Mr. Shivakumar D. |
|
Designation : |
Vice President –
Chief Executive |
|
|
|
|
Name : |
Mr. Srinivasant
R. |
|
Designation : |
Senior General
Manager – F and A CE |
|
|
|
|
Name : |
Mr. Van Heumen Geet
A. M. |
|
Designation : |
Director and
Senior Vice President - Finance |
|
|
|
|
Name : |
Mr. Ashok
Nambissan |
|
Designation : |
Senior General
Manager - Legal and Sec and General
Council |
|
Qualification
: |
B. L.., BCL, Dip
PM |
|
Date of Appointment
: |
28/06/1999 |
|
Previous
Employment |
ICI India Limited
|
|
|
|
|
Name : |
Mr. Geert A. M.
Van Heumen |
|
Designation : |
Director and
Senior Vice Presidence - Finance |
|
Qualification
: |
H.B. S. Coml./Economical
SPD (equive to IMCA/ACCA), Additional Cournces in Marketing, I. T. Logs,
Finance and General Marketing |
|
Date of
Appointment : |
01/08/2000 |
|
Previous
Employment |
KPENY |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Electronic Products. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Brand Names : |
“PHILIPS” |
||||||||
|
|
|
||||||||
|
Terms : |
|
||||||||
|
Selling : |
Cash and Credit |
||||||||
|
|
|
||||||||
|
Purchasing : |
Cash, Credit and
L/C |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Electronic Components |
Pcs. in ‘000 |
6000 |
-- |
-- |
|
Television
receivers |
Pcs. in ‘000 |
250 |
-- |
-- |
|
Radio Sets, Tape Recorders, Compact Disc Players/ Systems/Combination
Sets |
Pcs. in ‘000 |
1500 |
-- |
-- |
|
Lamps |
Pcs. in ‘000 |
511171 |
345083 |
327552 |
|
Glass Shells |
Pcs. in ‘000 |
146230 |
547976 |
518135 |
|
Filaments |
Pcs. in ‘000 |
750000 |
450000 |
433698 |
|
Molybdenum Wire |
Kgs. |
12000 |
12000 |
119 |
|
Accessories for Fittings |
Pcs. in ‘000 |
7500 |
7500 |
3096 |
|
Electronic HF Ballasts |
Pcs. in ‘000 |
150 |
1500 |
895 |
|
Electro Medical Apparatus |
Pcs. |
24615 |
24615 |
-- |
GENERAL
INFORMATION
|
Suppliers : |
Ø
3 M Silition Ø
Aakar Arts Ø
Aarkay Lamp
Components Ø
Aarkay
Minerals Ø
Ache
Appliances Private Limited Ø
AGL
Electronics Corporation Ø
BDJ Stamping
Industries Ø
Dheeraj
Industries Ø
Eagle
Constructions Ø
Electrical
Components Manufacturing Company Ø
Engineering
Equipment Corporation Ø
Gurnath Engineers Ø
Fates
Electrical Ø
Jain Auto
Industries Ø
Janaki
Engineering Ø
Khosla
Engineering Private Limited |
|
|
|
|
Customers : |
Manufacturers,
Wholesalers and Government Bodies |
|
|
|
|
No. of Employees : |
3403 |
|
|
|
|
Bankers : |
Ø Punjab National Bank, Kolkata, West
Bengal, India Ø Corporation Bank, Kolkata, West Bengal,
India Ø ABN Amro Bank N.V., Kolkata, West Bengal,
India Ø Standard Chartered Grindlays Bank,
Kolkata, West Bengal, India Ø Citibank N A, Kolkata, West Bengal, India Ø Bank of America NT and SA, Kolkata, West
Bengal, India |
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Bharat S. Raut
and Company Chartered
Accountants |
|
|
|
|
Holding
Company: |
Ø Koninklijke Philips Electronics N. V Breitner Centre, Amstelplein2, I096, BC Amsterdam, P. O. Box
77900, 1070 MX Amsterdam, The
Netherlands Tel. No. 31-20-5977777 Fax No. 31-20-597 7150 |
|
|
|
|
Membership: |
Confederation of
Indian Industry |
|
|
|
|
Parent Company
: |
Koninklijke
Philips Electronics N. V. (KPENV) Breitner Center,
Amsteiplein 2, 1096 BC, Amsterdam, P O Box # 77900, 1070 MX, Amsterdam, the
Netherlands Tel No. :
31-20-5977777 |
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Associates: |
Hind Lamps Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
92000000 |
Equity Shares |
Rs. 10/- each |
Rs. 920.000 millions |
|
20000000 |
Non -convertible cumulative redeemable preference shares |
Rs. 10/- each |
Rs. 200.000 millions |
|
|
Total |
|
Rs. 1120.000 millions |
|
|
|
|
|
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70260733 |
Equity Shares |
Rs.10/- each |
Rs. 703.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
703.000 |
703.000 |
703.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6974.000 |
5005.000 |
4326.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7677.000 |
5708.000 |
5029.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
70.000 |
83.000 |
90.000 |
|
|
2] Unsecured Loans |
38.000 |
36.000 |
33.000 |
|
|
TOTAL BORROWING |
108.000 |
119.000 |
123.000 |
|
|
DEFERRED TAX LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
TOTAL |
7785.000 |
5827.000 |
5152.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2295.000 |
2737.000 |
2671.000 |
|
|
Capital work-in-progress |
366.000 |
134.000 |
166.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
11.000 |
11.000 |
11.000 |
|
|
DEFERREX TAX ASSETS |
254.000 |
268.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1902.000
|
2243.000 |
2519.000 |
|
|
Sundry Debtors |
2687.000
|
3595.000 |
2822.000 |
|
|
Cash & Bank Balances |
5178.000
|
1528.000 |
1999.000 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1399.000
|
1294.000 |
1611.000 |
|
Total
Current Assets |
11166.000
|
8660.000 |
8951.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
4889.000
|
4825.000 |
6023.000 |
|
|
Provisions |
1418.000
|
1158.000 |
624.000 |
|
Total
Current Liabilities |
6307.000
|
5983.000 |
6647.000 |
|
|
Net Current Assets |
4859.000
|
2677.000 |
2304.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7785.000 |
5827.000 |
5152.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
Sales Turnover |
26111.000 |
28003.000 |
24364.000 |
|
|
Other Income |
132.000 |
17.000 |
0.000 |
|
|
Total Income |
26243.000 |
28020.000 |
24364.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3029.000 |
983.000 |
1492.000 |
|
|
Provision for Taxation |
899.000 |
176.000 |
463.000 |
|
|
Profit/(Loss) After Tax |
2130.000 |
807.000 |
1029.000 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
454.000 |
1011.000 |
0.000 |
|
|
Service Revenue etc. |
4345.000 |
4161.000 |
0.000 |
|
Total Earnings |
4799.000 |
5172.000 |
0.000 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1222.000 |
1896.000 |
0.000 |
|
|
Stores & Spares |
21.000 |
24.000 |
0.000 |
|
|
Capital Goods |
91.000 |
170.000 |
0.000 |
|
|
Others |
102.000 |
121.000 |
0.000 |
|
Total Imports |
1436.000 |
2211.000 |
0.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Material cost |
14308.000 |
16365.000 |
|
|
|
Expenses |
9826.000 |
9937.000 |
22220.000 |
|
|
Interest |
45.000 |
61.000 |
|
|
|
Depreciation /
Amortisation |
603.000 |
617.000 |
|
|
Total Expenditure |
24782.000 |
26980.000 |
22220.000 |
|
KEY RATIOS
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
Debt Equity Ratio |
0.02 |
0.02 |
0.03 |
|
Long Term Debt Equity Ratio |
0.02 |
0.02 |
0.03 |
|
Current Ratio |
1.63 |
1.41 |
1.31 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.88 |
3.95 |
3.45 |
|
Inventory |
12.78 |
11.92 |
11.44 |
|
Debtors |
8.43 |
8.77 |
10.67 |
|
Interest Cover Ratio |
33.87 |
17.11 |
32.74 |
|
Operating Profit Margin (%) |
8.03 |
5.82 |
9.09 |
|
Profit Before Interest and Tax Margin (%) |
5.75 |
3.68 |
6.52 |
|
Cash Profit Margin (%) |
6.08 |
4.99 |
6.93 |
|
Adjusted Net Profit Margin (%) |
3.81 |
2.84 |
4.36 |
|
Return on Capital Employed (%) |
22.47 |
19.20 |
35.00 |
|
Return on Net Worth (%) |
15.13 |
15.35 |
24.54 |
LOCAL AGENCY
FURTHER INFORMATION
History
Philips India was incorporated in 1930 as a private limited
company under the name Philips Electricals Company (India) by N V Philips
Gloeilampenfabrieken, Eindhoven, the Netherlands. It acquired its present name
in 1956, after privatisation and was converted into a public limited company in
1957. Initially, the company commenced by trading in radios and subsequently,
set up plants to manufacture consumer electronics, electronic components,
industrial electronics and lighting. The company is also into office automation
products.
Its consumer electronic products are manufactured at its plants in Pimpri and
Kolkata. Electronic components, passive devices and printed circuit boards for
consumer electronic products are manufactured at Loni, Pune. The company supplies
components to other companies as well. The Kalwa (Thane) plant manufactures a
range of lamps such as GLS lamps, fluorescent lamps, mercury vapour/sodium
vapour lamps and their components such as glass shells, filament wires, etc.
The company diversified into the telecommunications segment to manufacture
two-way radios and pagers. It set up a joint venture project with Webel
Telecommunications in Calcutta in which it has a 51% stake. It is acquiring a
4% stake in Punjab Anand Lamps and Industries from the co-promoters, Anand and
Associates.
Philips India has sold off its non-ceramic passive components business at Loni
near Pune to the Netherlands-based B C Components International for Rs 325
Millions. Also, the colour television factory at Salt Lake, Calcutta to the
Videocone group. Currently, all the company's manufacturing facilities have
been actively involved in the implementation of the Philips Global
Environmental Policy and the Eco-Vision Programme.
The parent company, Royal Philips Electronics N.V Netherlands, had made an open
offer to buy Philips India's shares from the public at Rs 105. The offer ended
on 12 Dec 2000. After the offer, the parent company has an 82.86% stake in the
company now. The company's Lighting Division has maintained its contract record
of being the preferred supplier of high quality lighting systems to prestigious
projects like, the Pondicherry Cricket stadium, the Guru Nanak Stadium
etc.
The Amalgamation of Philips Glass India Limited, Electric Lamp Manufacturers
(India) Limited and Punjab Anand Lamp Industries Limited with the Company was
sanctioned by the all the 3 states High Courts effective from 26th April, 2003. The company introduced cost
effective products like Juicer Mixer Grinder and DIVA range of lightweight dry
irons and the same well accepted in the market. The company is expecting to
register higher growth by the introduction of CAS a driving demand for set top
boxes. The company was awarded The Most Respected Company in India in the
Consumer Durables for 2002 by Business world Magazine. The Company is also
divested to Communication, Security and Imaging (CSI) in January 2003.
The Directors submit their report and audited accounts for
the year ended December 31, 2006.
The Indian economy appears set on a sustainable high-growth trajectory with GDP
growth averaging 8% over the last four years. In the first nine months of the
current fiscal year, industrial production has grown 10.8% reflecting continued
economic buoyancy. The strong surge in domestic consumption in the housing,
automotive and consumer durable sectors is a signal of overall optimism and
confidence in the economy. Higher foreign direct investment inflows, growing
savings rate and the anticipated larger government outlays in agriculture,
health and the social services support growth momentum. However concerns over
inflation and the Central bank's monetary policies could contain credit
availability in the coming year thereby moderating growth.
Sales for the year ended December 31, 2006 fell marginally
by 7%, from Rs.28,389 million to Rs 26,486 millions. All the businesses
reported robust growth in sales, except for Consumer Electronics. Medical
Systems which grew by 22%, Domestic Appliances and Personal Care, which grew by
19% and Lighting which grew by 12%, were the strong performers during the year
2006. Despite the drop in sales, operating profit increased by 40% on the back
of profitable growth of the Lighting and Software businesses. Exceptional items
for the year include profits of Rs.1,261 millions on account of sale of
Semiconductors and Speaker Systems businesses, profits of Rs. 362 millions on
sale of assets and a charge of Rs 79 millions under Employees' Voluntary
Retirement Scheme.
Business
Manufacturing and
Selling of electronic components, printed circuit boards, precision metal piece
parts, radio sets, tape recorders and combination sets, colour television
receivers, public address systems and professional grade microphones,
electronic measuring instruments, lamps, glass shells, glass tubings,
fluorescent powder, filaments, tungsten wire, molybdenum wire, dumet and other
component wires, burners for MV lamps, burners for SON lamps, diamond dies,
fittings, accessories for fittings, electro medical apparatus, specialised
tools and injection moulded engineering industrial plastic products.
BUSINESS
PERFORMANCE:
The Notes to the Profit and Loss Account for the year provide segment results.
Required disclosures are made below for Lighting, Consumer Electronics, the Innovation
Campus (Software), Medical Systems and Domestic Appliance and Personal Care
division.
LIGHTING:
The Division enjoyed double-digit growth, making it the fifth consecutive year
of growth. Overall the Division sales grew by 12%, with the Automotive,
Lighting Electronics, Luminaires and Lamps businesses growing at healthy rates.
Market shares increased in these business groups, giving the division an
overall share of close to 30% in a growing market, where existing lighting and
new non-lighting players are making their presence felt with new products and
increasing their production capacities.
Compact Fluorescent Lamps (CFL) led growth in the lamps segment The excellent
growth in CFL was also in line with the energy conservation initiatives taken
by various state governments/energy conservation authorities. The rural market
strategy envisaged a few years ago continues to help the business sustain its
growth ambitions. Regular introduction of new and cost-competitive products
from the Luminaires and Lighting Electronics groups have helped these
businesses to grow and maintain market leadership. The Division executed some
key lighting projects across the country including the one at the Howrah Bridge
in Kolkata using state of the art LED lamps which is displayed on the front
cover of this year's Annual Accounts.
The Division remains committed to cost, quality and process improvements.
The outlook for 2007 remains positive and the Division expects to sustain
growth through increased market penetration, new and cost-competitive products
and increased focus on energy saving products.
CONSUMER ELECTRONICS:
The Entertainment Solutions portfolio had a tough first half in 2006, with
business performance declining on account of high stocks in channel, large
volumes of slow moving models and pricing issues. However corrective actions
during this period resulted in the second half of 2006 showing marked
improvement with a growth of 2% in value which was in line with the market. The
DVD and Home Theatre segments recovered quickly with the introduction of a
feature-packed new range and localisation of products. Market shares improved
in the second half of 2006.
Overall, at the close of 2006, the Entertainment Solutions business reported a
higher profitability as compared to 2005. The thrust for the coming year will
be in Home Theatres and Portable Digital Audio MP3 Players in addition to the
Accessories business. DVD-HDD is also slotted for a test launch in 2007, with
the objective of driving innovations to the top end in the DVD segment.
The Colour Television industry showed a value growth of 8.8% in 2006 helped by
a shift in consumer preferences towards Flat and Large Screen Televisions, as
well as LCD. However the Industry continues to face sharp ,price erosion,
especially in Real Flat CRT and LCD segments, resulting in pressure on margins.
To improve cost competitiveness and respond to emerging market trends,
localisation of LCD TV manufacturing and a change to localised designs in CRT
is planned for 2007, with a strong business focus on the fast growing Flat
Television and LCD segments.
MEDICAL SYSTEMS:
The Medical Systems Division operates in the Diagnostic Imaging segment, which
includes CT, MRI, X-rays, Cardiovascular System, Nuclear Medicine, PET-CT and
Ultrasound Imaging Systems, and is also a significant player in patient
monitoring. The total business in 2006 amounted to Rs 2,804 million-a growth of
around 22%.
In 2006, the Division recorded strong growth in most business lines, winning
major contracts across its entire product range, including those from major
private hospital groups as also from large Government postgraduate teaching
hospitals. Strong account management backed by excellent customer focus has
been the key success factors of the year. There was excellent growth in
Magnetic Resonance Imaging (MRI) business during the year in both 1.5 and 3
Tesla segments. Cardiac Computerised Tomography (CT) systems continued to do well
during 2006, maintaining a market share of around 30%. The CMS/Patient
Monitoring business continued to retain dominant market position with the sale
of 1,200 units of the newly-launched 'Suresigns VM series monitors'.
Cardiovascular and 4-dimension systems contributed to the success of the
Ultrasound equipment group in 2006. The Customer Support group has performed
consistently well, meeting and often exceeding customer expectations, resulting
in good loyalty-based repeat orders.
Customer purchasing patterns are changing and an increasing number of decisions
are now based on lifecycle costs, putting pressure on margins. With a CAGR in
revenues of 8-10%, the Medical Systems Division is looking forward to
continuing its growth initiatives successfully in 2007.
DOMESTIC APPLIANCES and PERSONAL
CARE:
The Domestic Appliances and Personal Care Division sales grew by more than 19%
during the year when the overall market grew by around 6.5%. The Kitchen
Appliances segment grew by more than 25%, contributed mainly by high end Mixer
Grinders and Toasters. Growth in Shavers was also substantial and several new
products from the international range were introduced in the last
quarter.
Philips maintained its overall No. 1 brand position in the addressable market
segment. The year was characterised by steep increases in raw material prices
which, to some extent, affected growth. Although margins continued to be under
pressure, the Division was able to maintain its profitability.
The outlook for 2007 is one of stronger growth and continued emphasis on Key
Accounts.
INNOVATION CAMPUS:
Philips Innovation Campus (PIC) has built up extensive know-how
and expertise in the software engineering and technology domains for lifestyle
and healthcare products. During the year the strength of the Medical group
increased and more growth is expected in future. However, there were reductions
in the Consumer Electronics (CE) group. PIC further extended its area of
operations to cover business application development for various Philips
organizations.
The divestment of the erstwhile Semiconductor Division was completed at the end
of September 2006. Consequent to the divestment, PIC's strength at the end of
2006 was 949 as compared to 1,656 at the end of 2005. The retention rate
remained reasonable as compared to the IT industry average. Sales (total
deliveries) amounted to Rs 3,843 millions as compared to Rs.3,558 millions in
2005, a nominal increase of 8% over the previous year. However, on a comparable
basis the deliveries recorded an increase of 21% over the previous year. The CE
and Medical groups of PIC were evaluated to be performing at CMMI Level 3
standards.
BUSINESS RESTRUCTURING:
The Semiconductor Business was divested to Philips Semiconductors India Private
Limited (now known as NXP Semiconductors India Private Limited) with effect
from October 1, 2006, at a total consideration of Rs.1,917 million. The Speaker
Systems group forming a small part of the Consumer Electronics Division, was
transferred to Premium Sound Solution Private Limited on December 27, 2006, at
a consideration of Rs.96 million.
The Lighting
division maintained its contract record of being the preferred supplier of high
quality lighting systems to prestigious projects :
> The Pondicherry Cricket Stadium
> The Guru Nanak Stadium Ludhiana,
Punjab
> The Ramoji Rao Film City in Hyderabad
> The Road Lighting Project in Navi
Mumbai
> Dwarka City in Delhi
It also has
partnership with Infosys Technologies Limited.
|
Business
Segments |
Type of products
/ services |
|
a. Lighting |
Lamps, Glass
shells, Fittings, Accessories for fittings, Electronic HF Ballasts |
|
b. Consumer
Electronics |
Radio sets, tape
recorders, compact /digital video disc players/ systems and combinations
sets, Accessories for radio sets and tape recorders, Television receivers,
Monitors. |
|
c. Software
development services |
Development of
embedded software. |
|
d. Medical
systems |
Medical
electronics equipment |
|
e. Other
segments |
Domestic appliances
and Service Revenue etc |
Fixed Assets
Intangibles
- Software
Land
Buildings
Leaseholds
-Land
- Improvements
- Other assets
Machinery and equipment
Furniture and fittings
Vehicles
Trade Reference:
Ø
Jain Auto
Industries
Ø
Sri Ram Industries
Ø
Asian Magnetic
Devices Private Limited
Ø
Khosla
Engineering Private Limited
Ø
National Torch
and Tubes
Ø
Water Proof
Corporation Private Limited
Ø
India
Industries
Ø
ELF Filaments
Industries Private Limited
Ø
Print Aakar
Private limited
Ø
Megh Pack
Industries
Ø
Mathure Fluxes
Ø
Crown
Engineering Enterprises
Ø
Meet
Engineering Private Limited
Ø
Wolfarm Moly
Products
Ø
Crown
Packaging Private Limited
Ø
Nirmal Arts
Ø
Sehmbey
Products
Ø
Shree Santram
Engineers
Ø
Tirupati
Plastic Private Limited
Ø
Ajanta Plastic
Ø
R. R. Polymer
Ø
Vallabh Chips
Industries
Ø
Shree
Padmavati Minerals
Ø
Rachita
Minerals
Ø
Aarkay
Chemicals
Ø
Aarkay Lamp
Components
Ø
Shivam
Industries
Ø
Ashok
Industries
Ø
Crown Engineering
Ø
Techno
Corporation
Ø
3 Mall
Solition
Ø
Wellman inc
Ø
Parekh
Industries
Ø
Primax
Engineers
Ø
Reliable Enterprises
Ø
Suhani
Enterprises
Ø
Ache
Appliances Private Limited
Ø
Fates
Electrical
Ø
Electrical
Components Manufacturing
Ø
Fluro Lighting
Private Limited
Ø
Mitcom Jyoti
Ø
Niroma
Industries
Ø
Power
Accessories
Ø
Raj Luxmi Poly
Plast Enterprise
Ø
Non-Ferrous
Casting and Company
Ø
Avinash
Engineering
Ø
Dheeraj
Industries
Ø
Eagle
Electronics
Ø
Gurunath
Engineers
Ø
Vidyut
Teletronics Limited
Ø
Wizard India
Limited
Ø
Seven Seas
Incorporate
Ø
Om Sai
Decoplast
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 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.39.37 |
|
UK Pound |
1 |
Rs.80.49 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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 |
|