MIRA
INFORM REPORT
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Report Date : |
02.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SAMTEL ELECTRON DEVICES - DIVISION OF SAMTEL COLOR LIMITED |
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Registered Office : |
52, Community
Centre, New Friends Colony, New Delhi – 110 065, India |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
14.05.1986 |
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Com. Reg. No.: |
55-24222 |
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CIN No.: [Company
Identification No.] |
L51909DL1986PLC024222 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS21950F |
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PAN No.: [Permanent
Account No.] |
AAACS6589D |
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Legal Form : |
Subject is a public limited liability
company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Marketing of picture
tube for colour television. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 : |
USD11000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually
correct |
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Litigation : |
Clear |
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Comments : |
Subject is an old established company having satisfactory track. Trade relations are reported as fair. Payments are always correct and as per commitments. Financial position of the company is satisfactory. The company can be considered good for any normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered / Administrative Office : |
52, Community
Centre, New Friends Colony, New Delhi – 110 065, India |
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Tel. No.: |
91-11-26842791/26845410/26832151 |
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Fax No.: |
91-11-26837534 |
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E-Mail : |
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Website : |
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Plant : |
C-A, 2 and 3 Sector XXII, Industrial Area,
Meerut Road, Ghaziabad – 201003, Uttar Pradesh, India |
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Tel. No.: |
91-120-2788202-208 |
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Fax No.: |
91-120-2788200/201 |
DIRECTORS
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Name
: |
Mr. Satish K. Kaura |
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Designation
: |
Chairman and Managing Director |
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Age
: |
58 years |
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Qualification
: |
M.Tech., Carleton University, Canada |
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Experience
: |
36 years |
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Date
of Appointment: |
27th February, 1989 |
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Previous
Employment : |
Samtel India Limited – Managing Director |
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Name
: |
Mr. Arun Bharat Ram |
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Designation
: |
Director |
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Name
: |
Mr. Subodh Bhargava |
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Designation
: |
Director |
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Name
: |
Mr. V. Narayanan |
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Designation
: |
Director |
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Name
: |
Mr. S. P. Gugnani |
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Designation
: |
Director |
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Name
: |
Mr. Shailendra Swarup |
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Designation
: |
Director |
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Name
: |
Mr. N. D. Auddy |
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Designation
: |
Director |
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Name
: |
Mr. G. K. Mathur |
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Designation
: |
Director |
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Name
: |
Mr Amal Ganguli |
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Designation
: |
Director |
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Name
: |
Mrs Renuka Ramnath (ICICI Venture Fund Management Company Limited. Nominee) |
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Designation
: |
Director |
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Name
: |
Mr R Krishnakumar (ICICI Bank Nominee) |
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Designation
: |
Director |
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Name
: |
Mr R K Srivastava (LIC Nominee) |
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Designation
: |
Director |
KEY EXECUTIVES
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Name
: |
Mr. S. R. Tilwali |
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Designation
: |
Vice President – Finance |
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Age
: |
56 years |
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Qualification
: |
B.Com., FCA, ACS |
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Experience
: |
30 years |
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Date
of Appointment: |
15th September, 1989 |
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Previous
Employment : |
Shriram Fibres Limited – DGM & Company Sec. |
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Name
: |
Mr. J. C. Jhuraney |
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Designation
: |
Vice-President [Human Resources] |
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Age
: |
54 years |
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Qualification
: |
M.A. PGDPM |
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Experience
: |
33 years |
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Date
of Appointment : |
08.05.2001 |
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Previous
Employment : |
JCT Electronics Limited – Vice – President – Personnel and HRD |
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Name
: |
Mr
Arun Mohan Bansal |
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Designation
: |
Company
Secretary |
MAJOR SHAREHOLDERS
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Category
of Shareholders |
No. of Shares |
Percentage of Holding |
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Directors,
promoters and family members |
23944954 |
51.41 |
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FIIs |
2431604 |
5.22 |
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Mutual
Funds |
5875328 |
12.61 |
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Financial
Insitutions / Banks |
1253664 |
2.69 |
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NRIs /
OBCs |
5809696 |
12.48 |
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Corporates |
1449400 |
3.11 |
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Individual
Public |
5814479 |
12.48 |
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Total |
46579125 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of picture
tube for colour television. |
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Products : |
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Imports from : |
The Company Imports Raw Materials,
Components & Spares and Capital Goods from Europe and Far East |
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Terms : |
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Purchasing : |
L/C,
D/A, D/P |
PRODUCTION
STATUS
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Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Colour Picture Tubes |
Numbers |
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31.03.2006 – 6500000 31.03.2005 - 6300000 |
31.03.2006 – 5425068 31.03.2005 – 5325631 |
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Color Electron Guns |
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31.03.2006 – 7500000 31.03.2005 – 7000000 |
31.03.2006 – 6142309 31.03.2005 – 5881055 |
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Black and White Electron Guns |
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31.03.2006 – ----- 31.03.2005 – 6300000 |
31.03.2006 – 39851 31.03.2005 – 1265109 |
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Deflection Yoke |
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31.03.2006 – 6000000 31.03.2005 – 6000000 |
31.03.2006 – 5030875 31.03.2005 – 4531950 |
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Note:-
Installed Capacity
is per annum and is stated as certified by the Management and accepted by the
Auditors being a technical matter.
Actual production of
colour picture tubes for 2005-06 excludes production of 55,136 tubes on live IV
and 45,987 tubes on line V during trials.
GENERAL
INFORMATION
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No. of Employees : |
1614 |
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Bankers : |
+ Punjab National Bank, ECE House, K. G. Marg, New Delhi, India + Standard Chartered Grindlays Bank, Parliament Street, New Delhi, India + Standard Chartered Grindlays Bank Limited, H Block, Connaught Circus, New Delhi, India + ICICI Bank Limited, Connaught Circus, New Delhi, India + Canara Bank, Industrial Finance Branch, New Delhi, India + State Bank of India + UTI Bank Limited + Export-Import Bank of India |
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Banking Relations : |
Satisfactory |
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Auditors : |
Price Waterhouse Chartered Accountants New Delhi |
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Associates : |
Ř Samcor Glass Limited Ř Samtel India Limited Ř Teletube Electronics Limited Ř Samtel Electron Devices, GmbH, Germany Ř International Electron Devices Limited Ř Roxy Investment Private Limited Ř Lenient Consultants Private Limited Ř CEA Consultants Private Limited Ř SW Consultants Private Limited Ř Tish Consultants Private Limited Ř Kaura Properties Private Limited Ř Kaura Investment Private Limited Ř Swaka Consultants Private Limited Ř Punswat Consultants Private Limited Ř Dolsun Containers Private Limited Ř Samtel Engineering Services Limited |
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Subsidiaries : |
+ Paramount Capfin Lease Private Limited 52, Community Centre, New Friends Colony, New Delhi – 110065, India + Blue Bell Trade Links Private Limited 52, Community Centre, New Friends Colony, New Delhi – 110065, India |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
74,990,000 |
Equity Shares |
Rs.10/- each |
Rs.749.900
millions |
|
1,000 |
12% Preference Shares |
Rs.100/- each |
Rs. 0.100 millions |
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Total |
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Rs.750.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
46,58,21,000 |
Equity Shares |
Rs.10/- each |
Rs.
465.821 millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
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SOURCES OF FUNDS |
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31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
465.821 |
406.250 |
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2] Advance Subscription |
|
39.680 |
26.167 |
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3] Reserves & Surplus |
|
2344.132 |
1901.864 |
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4] (Accumulated Losses) |
|
0.000 |
0.000 |
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NETWORTH |
|
2849.633 |
2334.281 |
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LOAN FUNDS |
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1] Secured Loans |
|
4301.494 |
3598.501 |
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2] Unsecured Loans |
|
100.000 |
0.000 |
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3] Deferred Payment Liability |
|
32.736 |
56.037 |
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TOTAL BORROWING |
|
4434.230 |
3654.538 |
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DEFERRED TAX LIABILITIES |
|
973.544 |
995.272 |
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TOTAL |
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8257.407 |
6984.091 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
5236.945 |
5426.758 |
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Capital work-in-progress |
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2404.342 |
1290.430 |
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Preoperative Expenditure Pending Allocation |
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931.125 |
194.019 |
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INVESTMENT |
|
330.099 |
330.099 |
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DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
|
1493.189 |
1092.563 |
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Sundry Debtors |
|
376.671 |
488.319 |
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Cash & Bank Balances |
|
37.614 |
25.121 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
618.543 |
624.002 |
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Total Current Assets |
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2526.017 |
2230.005 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
|
3063.064 |
2270.679 |
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Provisions |
|
108.057 |
216.541 |
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Total Current Liabilities |
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3171.121 |
2487.220 |
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Net Current Assets |
|
(645.104) |
(257.215) |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
|
8257.407 |
6984.091 |
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
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Sales Turnover [including other income] |
|
7827.921 |
9638.157 |
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Profit/(Loss)
Before Tax |
|
(5.635) |
863.068 |
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Provision
for Taxation |
|
(13.970) |
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Profit/(Loss)
After Tax |
|
8.335 |
645.282 |
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Export
Value |
|
1579.147 |
2325.280 |
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Import
Value |
|
3527.626 |
3096.053 |
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Total
Expenditure |
|
7833.556 |
8775.089 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
|
Sales Turnover |
2049.500 |
3006.500 |
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Other Income |
1.200 |
3.300 |
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Total Income |
2050.700 |
3009.800 |
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Total Expenditure |
1836.900 |
2680.400 |
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Operating Profit |
213.800 |
329.400 |
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Interest |
92.900 |
167.600 |
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Gross Profit |
120.900 |
161.800 |
|
Depreciation |
123.300 |
158.500 |
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Tax |
(5.100) |
1.200 |
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Reported PAT |
2.700 |
(6.000) |
200606
Quarter 1 --------------- NOTES: 1. The above results were taken on record at
the meeting of Board of Directors held on 21st July, 2006. 2. The Company is
engaged in the business of TV picture tubes & parts and there are no
separate reportable segments as per AS - 17 on Segment reporting. 3. Pursuant
to the Samtel Employee Stock Option Scheme 2001, the Company has issued and
allotted 20,650 equity shares to its eligible employees on 17th May, 2006. 4.
The number of investors' complaints during the quarter, resolved and pending
are - Number of complaints pending at beginosing of the quat-der :Nil - Total
number of complaints received during the quarter : 46 - Total number of
complaints disposed of during the quarter : 46 - Number of complaints pending
at close of the quarter : Nil 5. Response to Auditors' qualification in the
annual audited financial statements as at March 31, 2006. a) In respect of an
old receivable of Rs.176.100 Millions as on 31st March, 2006, the Company has
during the current quarter received an amount of Rs. 5.000 Millions. The
balance outstanding are being renegotiated with the customer for
re-schedulement. The management considers this debt to be fully recoverable. b)
In respect of managerial remuneration amounting to Rs. 5.587 Millions included
in the staff cost during the year ended on 31st March, 2006, the Company has
filed the necessary application on 31st May, 2006 with the Ministry of Company Affairs
seeking their approval. 6. In view of AS -15 (revised 2005) 'Employee Benefits'
issued by Institute of Chartered Accountant of India which is applicable w.e.f.
April 1,2006, the adjustments on account of transitional provision will be
dealt in the general reserve at the year end and additional charge on account
of employee benefits amounting to Rs. 1.200 Millions has been provided for in
the current quarter. 7. The Company has commenced commercial production of 29'
Super Flat Color Picture Tubes and Electron Guns for 29' Super Flat Color
Picture Tubes on 2nd July 2006. 8. Previous year / period figures have been
regrouped / recast, wherever necessary, to conform to current period's
classification.
200609
Quarter 2 --------------- Notes Expenditure Includes (Increase)/Decrease in
stock in Trade Rs (154.20) million Consumption of Raw Material Rs 2218.60
million Staff Cost Rs 209.00 million Other expenditure Rs 407.00 million Tax
Includes Provision for Deferred Tax Rs 8.10 million Fringe Benefit Tax Rs 1.20
million EPS is Basic Status of Investor Complaints for the quarter ended
September 30, 2006 Complaints Pending at the beginning of the quarter Nil
Complaints Received during the quarter 63 Complaints disposed off during the
quarter 63 Complaints unresolved at the end of the quarter Nil 1. The above
results were taken on record at the meeting of Board of Directors held on
October 28, 2006. 2. The Company is engaged in the business of TV picture tubes
& parts and there are no separate reportable segments as per AS - 17 on
Segment reporting. 3. Response to Auditors' qualification in the annual audited
financial statements as at March 31, 2006. a. In respect of an old receivable
of Rs 17.60 million as on March 31, 2006, the Company has recovered an amount of
Rs 7.50 million till September 30, 2006. The balance outstanding are being
renegotiated with the customer for re-schedulement. The management considers
this debt to be fully recoverable. b. In respect of managerial remuneration
amounting to Rs 5.587 million included in the staff cost during the year ended
on March 31, 2006, the Company has filed the necessary application on May 31,
2006 with the Ministry of Company Affairs seeking their approval. 4. Response
to Auditors' comments in the report on their limited review of the unaudited
financial results for this quarter:- In the managements' view, the customs duty
/ sales tax aggregating to Rs 7.90 million in respect of materials to be
utilised in the company's export oriented unit (EOU) is recoverable under the
provisions of the related legislation. 5. In view of AS - 15 (revised 2005)
'Employee Benefits' issued by Institute of Chartered Accountant of India which
is applicable w.e.f. April 01, 2006, the adjustments on account of transitional
provision will be dealt in the general reserve at the year end and additional
charge on account of employee benefits amounting to Rs 1.50 million has been
provided for in the current quarter. 6. On February 13, 2005 the company has
issued 22,00,000 warrants having optional right of conversion into shares to
Promoter companies namely CEA Consultants Private Limited & Samtel Display
System Private Limited (formerly known as Roxy Investment Private Limited),
against payment of an advance subscription amount of Rs 39.680 million. As the
above allottees of warrants have not exercised the right for conversion, the
advance subscription amount of Rs 39.68 million has been forfeited and
transferred to Capital Reserve. 7. During the quarter, new production lines for
manufacturing of 29' Super Flat Color Picture Tubes ( Line # 4) and 21' Super
Flat Color Picture Tubes ( Line #5) have been commissioned on July 02, 2006 and
July 31, 2006 respectively. The new lines have incurred a loss (PBDT)
aggregating to Rs 106.00 million on Net Sales / Income from Operations of Rs
764.20 million during the quarter. 8. Previous year/period figures have been
regrouped/recast, wherever necessary, to conform to current period's
classification.
KEY
RATIOS
|
PARTICULARS |
|
|
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
|
|
1.58 |
1.45 |
|
Long Term Debt-Equity Ratio |
|
|
1.44 |
1.39 |
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Current Ratio |
|
|
0.61 |
0.59 |
|
TURNOVER RATIOS |
|
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|
Fixed Assets |
|
|
0.99 |
1.20 |
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Inventory |
|
|
6.74 |
10.55 |
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Debtors |
|
|
20.15 |
20.03 |
|
Interest Cover Ratio |
|
|
0.99 |
3.54 |
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Operating Profit Margin(%) |
|
|
9.98 |
17.03 |
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Profit Before Interest And Tax Margin(%) |
|
|
4.15 |
12.28 |
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Cash Profit Margin(%) |
|
|
5.94 |
11.00 |
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Adjusted Net Profit Margin(%) |
|
|
0.11 |
6.25 |
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Return On Capital Employed(%) |
|
|
5.48 |
24.36 |
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Return On Net Worth(%) |
|
|
0.39 |
30.43 |
STOCK PRICES
|
Face
Value |
Rs.10/-
each |
|
High |
Rs.38.00 |
|
Low |
Rs.31.75 |
LOCAL AGENCY
FURTHER INFORMATION
Samtel
Color (SCL) was incorporated on 15 May '86, promoted by S K Kaura, Teletube
Electronics and Samtel (India) and is managed by the chairman and managing
director S K Kaura.
SCL is engaged in the manufacture of colour picture tubes, colour
Electron Guns, Black & White Electron Guns and Deflection Yokes. The
Company is the largest integrated picture tube manufacturer in the country with
a market shares in excess of 50%. The company is also the only CRT manufacturer
in India. They have successfully developed several new products through
in-house R&D-such as the Desgin and launch of the 14',20' & 21'
conventional colour picture tubes & the 21' True Flat Tube in 2003.
The company came out with a public issue aggregating Rs 75 Millions in
Apr.'88, to part-finance the setting up of a plant for the manufacture of 0.5
Millions colour picture tubes at the total cost of Rs 757.1 Millions.
SCL is having two subsidiaries namely Paramount Capfin Lease Private
Limited and Blue Bell Trade Links Private Limited.
In Nov.'95, the company started a project for installing line-2 for
producing 1.2 mln medium-sized picture tubes at Ghaziabad, Uttar Pradesh, at an
estimated cost of Rs 1550 Millions. Its technical collaboration with Mitsubishi
Electric Corporation, Japan, expired in Jan.'95.
SCL was awarded the ISO 9002 certification in Sep.'93. As a part of
its backward integration, the company promoted Samcor Glass to manufacture
glass shells at Kota, Rajasthan.
During 1999-2000, the company merged Samtel Electron Devices with
itself effective from April 1, 1997. It has also made 100% investment in
Paramount Capfin Lease Private Limited & & Blue Bell Trade Link Private
Limited to make a subsidiary company.
During 2001-2002, the company commenced third production unit with
a capacity of 2.2 million tubes p.a. to manufacture 15' Colour Display Tubes
for computer monitors and 21' Super Flat TV tubes. at a cost of Rs 3400
Millions. The project is being financed from internal accruals and debt.
In 2004-05, The company has invested in two more lines namely line
4 and line 5. Line 4, located at Ghaziabad (UP), is being set-up at a cost of
Rs.1210 Millions, which will have manufacturing capabilities for large CPTs,
including 29' super-flat CPTs. It will have a capacity of 1.5 million CPTs per
annum. The line is undergoing pilot runs and is expected to start commerical
production from October 2005. Line 5, Which will manufacture mid-size CPTs, is
being set-up with an investment of Rs.1620 Millions. With a capacity of 2.5
million CPTs, this line is being established in Kota (Rajasthan). The process
of erecting machinery and equipment has begun and the start production will be
commenced by 4th Quarter of 2005-06.
During 2004-05 the company has increased its installed capacity of colour
picture tubes by 1,000,000 Nos, color electron guns 1,000,000 Nos and
Deflection Yokes by 600000 Nos. With this expansion,the total installed
capacity of colour pictures tubes, color electron guns and Deflection Yokes has
increased upto 6,300,000 Nos., 7,000,000 Nos. and 6,000,000 respectively.
Samtel
Color’s new lines 4 and 5 commence commercial operations
Sales volume increases 28% in July over same month last year
Total annual capacity rises to 10 million tubes
Better business environment and higher volumes to drive performance
New Delhi, 07th.August 2006: Samtel Color Limited, the largest integrated manufacturer of Colour Picture Tubes (CPT) for television sets in India, today announced that its two new manufacturing lines, Line 4 and Line 5, have become commercially operational.
The Company’s Line 4 (capacity 1.5mill.per annum), which manufactures 29-inch super flat CPTs at Ghaziabad, and Line 5 (capacity 2.5mill.per annum), which manufactures 21-inch super flat CPTs at Kota, moved into commercial production in July 2006. These two lines have added 4 million tubes per annum to Samtel’s overall capacity, taking it to over 10 million tubes per annum.
As a result of this capacity increase, Samtel has reported a sharp increase of 28% in sales for the month of July 2006 at 584,000 tubes against 457,000 tubes in the same month last year. This is likely to increase going forward as Lines 4&5 begin delivering optimal volumes.
As a result of the shifts within the sector and the full commercialisation of its new lines, Samtel Color has witnessed a noticeable increase in its domestic market share from about 38-40% last year to around 50% now.
About Samtel Color Limited
Samtel Color Limited is the flagship company of the Rs 12.5 billion Samtel Group. The Company manufactures Colour TV picture tubes. The Company has a market share of around 50% in the domestic market and is supplying picture tubes to all the major domestic TV manufacturers including multinationals. The Company is also the largest manufacturer of 21” Pure Flat Tubes and the only manufacturer of 29” super flat tubes in India.
The Samtel Group is India’s largest integrated manufacturer of a wide range of display devices like colour and monochrome TV picture tubes, tubes for avionics, medical and industrial applications and their components including CRT glass, electron guns, heaters, cathodes and deflection yokes. It has nine factories and employs over 5000 people.
Samtel Q1FY2007 revenues up 5% at Rs 2356 mn
Line 4 commences
full commercial operations in July
Domestic market
share up significantly
CPT realisation trends and raw material prices
normalise
- Samtel announces price increase for CPTs
- Uncompetitive capacities continue to shut down globally
- More balanced demand-supply scenario emerging
Growth outlook driven by:
- Strong order book domestically– fully booked for next 3 months,
- Improving realisations and encouraging traction in both domestic
and global markets
- Combined benefits of Lines 4 and 5, expected to reflect Q2FY2007
onwards
New Delhi, July 21, 2006: Samtel Color Limited (Samtel), the largest
integrated manufacturer of Colour Picture Tubes (CPT) for television sets in
India, today announced its results for Q1FY2007.
Commenting on the performance, Mr. Satish
Kaura, Chairman and Managing Director, Samtel Color Limited, said:
"We are pleased
to report a strong operating quarter, which reflects a significant improvement
in market conditions and a noticeable increase in our market share. The changed
business environment is now resulting in a normalised price trend, where we
have actually been able to implement a slight price increase for some of our
products.
Our order book is
robust and we are fully booked for the next three months. Our new Line 4 has
already commenced full commercial operations, and Line 5 is likely to follow
suit shortly, resulting in substantial volume growth from the second quarter of
this year. As both these lines will manufacture higher value products, our
operating performance is likely to deliver strong growth in revenues as well as
earnings for the full year FY2007."
Q1FY2007 results overview
Samtel Color has reported a significant
improvement in revenues for the quarter, with improvements in market dynamics
and operational metrics indicating an encouraging trend going forward.
Net revenues for the quarter were 6.5% higher
at Rs 2049 million compared to the corresponding quarter last year.
Sales volumes at 1.48 million units are higher
compared to both the corresponding quarter last year and sequentially preceding
quarter. The business environment, which remained challenging during most of
FY2006, is now showing clear signs of improvement, with CPT price trends
normalising and raw material prices aligning to the changed market environment.
As several uncompetitive manufacturing units in the CPT sector decommissioned
over the past few months, Samtel Color has witnessed a noticeable increase in
its domestic market share from about 38-40% last year to around 50% now.
Resultantly, PBIDT for Q1FY2007 was at Rs. 214
million, after an impact on overheads due to liquidation of some inventory that
was being carried from the previous year. The Company reported a cash profit of
Rs. 123million. and Net profit after taxes for the quarter stood at Rs 3
million, reflecting the impact on overhead costs due to liquidation of carried
inventory .
Note: All references in this note to EPS and
CEPS estimates complete dilution of warrants issued to promoters, resulting in
an equity capital of Rs. 488 million or 48.80 million equity shares of Rs. 10
paid up.
About Samtel Color Limited
Samtel Color Limited is the flagship company of
the Rs 12.5 billion Samtel Group. The Company manufactures Colour TV picture
tubes. The Company has a market share of around 50% in the domestic market and
is supplying picture tubes to all the major domestic TV manufacturers including
multinationals. The Company is also the largest manufacturer of 21” Pure Flat
Tubes and the only manufacturer of 29” super flat tubes in India.
The Samtel Group is India’s largest integrated
manufacturer of a wide range of display devices like colour and monochrome TV
picture tubes, tubes for avionics, medical and industrial applications and
their components including CRT glass, electron guns, heaters, cathodes and
deflection yokes. It has nine factories and employs over 5000 people.
Plant
Locations
Colour
Picture Tube Works Manufacturing Unit I
Village Chhappraula, Tehsil Dadri Bullandshahar Road, District Ghaziabad, (now in District Goutam Budh Nagar) – 201009, Uttar Pradesh, India
Tel. 91-120-2674512/518
Fax. 91-120-2674504
Colour
Picture Tube Works Manufacturing Unit II
Plot No 2, Village Chhaprula Bisrakh Road, District Ghaziabad (now in District Goutam Budh Nagar) – 201009, Uttar Pradesh, India
Colour
Picture Tube Works Manufacturing Unit III
Village Naya Nohra, Kota – Baran Road, Kota (Rajasthan)
Colour
Electron Gun Division Manufacturing Unit
Samtel Electronic Devices Limited (a division of Samtel Colour Limited)
C-3, Sector - XXII, Industrial Area, Meerut Road, District Ghaziabad - 201003, Uttar Pradesh, India
Tel. 91-120-2788202 to 2788208
Fax. 91-120-2788200
Black
and White Gun and Deflection Yoke
Samtel Electronic Devices Limited (a division of Samtel Colour Limited)
Plot No. 6, Industrial Area, Sector -2, Parwanoo - 173 220, District Solan, Himachal Pradesh, India
Tel. 91-1792-233411/684/233050/233556
Fax. 91-1792-233680
OPERATIONS
The domestic market
for Color Picture Tubes (CPT) grew from approx. 10 million tubes in 2004-05 to
approx 10.6 million tubes in 2005-06.The Company's production increased from
5.32 million color picture tubes in 04-05 to 5.52 million color picture tubes
in 05-06. The sales volume during the year under review was marginally higher
at 5.52 million CPTs against 5.29 million achieved in the previous year.
In the international
market, CPT prices during the 2005-06 dropped at a steeper rate of 18-20% in
various product groups against normal drops of 6-8%. The prices in the domestic
market also fall in line with them adversely affecting profitability during the
year.
In its endeavor to
become a strong global player in the CPT business, the Company continues to
benchmark and upgrade its key operating parameters and business practices to
world standards. It is making focused efforts through TQM & Six Sigma
initiative for continuous improvements in product and process quality.
Strategic
initiatives in the form of value engineering, effective negotiation and
alternate sourcing are being made to continuously drive down raw material
costs. As the tube price dropped steeply during the year, the company has very
aggressively driven the above initiatives to reduce Bill of material(BOM) costs
also .By March,06 it has been in a position to reduce and realign its BOM to
Selling price ratio to end 2004-05 levels .
Details of Samtel
Color's strategy and operations are discussed in the section titled
"Management Discussion and Analysis".
EXPORTS
Samtel Color's CRT exports
were at 1.67 million tubes in 2005-06 against 1.7 million tubes in 2004-05. In
addition to laying emphasis on promoting exports by establishing and developing
strategic long-term relationships with large overseas customers, the company is
also expending its presence in newer markets.
OUTLOOK
The Indian economy
continues to be on a sustained higher economic growth path and we, therefore,
expect the domestic TV market to remain buoyant in the coming year. Demand for
21" full flat TV's continues to show high growth in the domestic market.
Company is the largest manufacturer of these tubes in the country and expects
to benefit from this growing demand in 06-07. Sample of 29" tubes under
manufacture in its new line IV are under approval with major domestic customers
and the company expects volumes to built up in the coming quarters. This is
expected to help the company further improve its market share in the domestic
market. Exports are expected to grow further due to increased availability of
tubes from its new line IV & V in 06-07.
NEW PROJECTS
There has been a
delay in starting commercial production of 29" tubes in line IV due to
some equipment stabilization related issue. The same are being resolved and the
line is expected to go in to commercial production by the end of this
quarter.Tubes produced from this line are under approval with leading domestic
customers & company expect volume to pick-up in the coming months. Line-V
for manufacturing of medium size tubes at Kota -Rajasthan, is also under trial
runs & is expected to start commercial production in coming months. Sales
of tubes from these lines are expected to help improve operation during 06-07
and beyond.
SUBSIDIARY COMPANIES
Paramount Capfin
Lease Private Limited., a subsidiary of your Company, dealing in investments,
has earned a Profit of Rs 2.262 Millions (after tax) for the year ended 31s
March 2006. The results of the company are attached to this report, along with
the statement specified in Section 212 of the Companies Act, 1956.
Blue Bell Trade
Links Private Limited is also a subsidiary of your Company. No activity was
undertaken in the company and it incurred expenses of Rs. 0.007 Millions during the year ended 31st March 2006.
The results of the
company are attached to this report along with the statement specified in
Section 212 of the Companies Act, 1956.
Future plan of action
1 The research and
development work in certain areas mentioned in 'a' above is planned to be
stepped in future.
2 Market launch of
15" True Flat Tube .
3 Development of
21" Slim Tube
4. Develop prototype
of Low Cost 29" Tube using cost effective alternate materials.
5 Upgrade existing
POP facility to help manufacture 250 panels p.m. and begin their test marketing
.Improve the brightness of 42" SD POP prototype to 1100 cd / m2 and
contrast ratio to 10000 : 1 .
6 Intiate the
development of prototype of 50" High Definition PDP .
7 Other cost
innovation projects to reduce material consumption in CRT materials.
|
SECURED LOANS |
31.03.2006 |
31.03.2005 |
|
From
Financial Institution |
|
|
|
Redeemable
Non – convertible Debentures |
117.500 |
196.667 |
|
Partly-convertible Debentures |
0.000 |
500.000 |
|
From Technology Development Board |
19.444 |
27.222 |
|
From Banks |
|
|
|
Cash Credit Accounts |
487.188 |
144.004 |
|
Rupee Loan |
3047.487 |
2078.991 |
|
Foreign Currency Loans |
611.287 |
625.477 |
|
Car Loan |
18.588 |
13.640 |
|
Redeemable Non-convertible Debentures |
0.000 |
12.500 |
|
|
4301.494 |
3598.501 |
Notes :
(1) Following Redeemable Non - Convertible
Debentures have been privately placed by the Company :
|
No of Debentures |
Interest Rate |
Face Value |
Redemption details |
|
Nil (Previous year 10,00,000) |
|
|
|
|
Nil (Previous year 5) |
14.00 |
Rs 100
@ |
12 quarterly installments from 8th March, 2003 |
|
Nil (Previous year 5) |
14.00 |
Rs. 1,00,00,000 @ @ |
12 quarterly installments from 18th March,
2003 |
|
5 (Previous year 5) |
14.00 |
Rs. 1,00,00,000 # |
3 annual instalments from 30th November, 2003 |
|
15,00,000 (Previous year 15,00,000) |
13.75 |
Rs
100## |
20 annual instalments from1st January, 2005 |
@ outstanding Nil
(Previous year Rs. 25.00) per debenture
@ @ outstanding Nil
(Previous year Rs. 24,99,999.00) per debenture
# outstanding Rs.
24,99,999.00 (Previous year Rs. 58,33,333.00) per debenture
## outstanding Rs.
70.00 (Previous year Rs. 95.00) per debenture
These debentures are
secured on first pari-passu charge basis in favour of Debenture Trustees by
joint mortgage by way of deposit of title deeds of all immovable properties and
hypothecation of all movable assets of the Company (save and except book
debts), present and future, subject to prior charges in favour of the bankers
for working capital requirement.
(2) Covered by a
Corporate Guarantee given by the Company and secured by way of specific charge
created on assets purchased from the proceeds of this loan for the purpose of
the Research and Development project.
(3) Secured by a
first pari-passu charge over inventories and book debts and a second charge
created/to be created by way of deposit of title deeds of the immovable
properties of the Company, both present and future.
(4) Secured as follows:
- Joint mortgage by
way of deposit of title deeds of all the immovable properties, present and
future. (Rs. 920.853 Millions) (Previous year Rs. 994.756 Millions).
- Hypothecation of
all the movable assets (save and except book debts), subject to prior charges
in favour of the bankers for working capital requirements (Rs. 705.161
Millions) (Previous year Rs. 1124.149 Millions).
- Second pari-passu
charge on the current assets of the Company for Rs. 1751.513 Millions (Previous
year Rs. 412.500 Millions).
- First pari-passu
charge by hypothecation on all the movable and immovable fixed assets of the
Company (Rs. 588.742 Millions) (Previous year Rs. 450.000 Millions).
- First pari-passu
charge by hypothecation on all the movable and immovable fixed assets of the
Company, except land and building at Parwanoo (H.P.) (Rs. 2056.513 Millions)
(Previous year Rs. 407.500 Millions).
- Joint mortgage by
way of deposit of title deeds of all the immovable properties, present and
future, except land and building at Parwanoo (H.P.) (Rs. 2576.379 Millions)
(Previous year Rs. 1034.235 Millions).
- Specific charge on
the assets created / to be created from this loan (Rs. 69.440 Millions)
(Previous year Rs. 63.640 Millions).
- First pari-passu
charge by way of hypothecation on all the movable and immovable fixed assets
and current assets of the Company except land and building at Parwanoo (H.P.)
(Rs. 369.866 Millions) (Previous year Rs. 176.735 Millions).
- Joint mortgage by
way of deposit of title deeds of all immovable properties, present and future
at Plot No. 2, Greater Noida Industrial Development Area. Distt. Gautam Budh
Nagar, UP (Rs. 1.11.525 Millions) (Previous year Rs. 129.393 Millions).
(5) Secured by
hypothecation of specific vehicles
(6) The Company had,
on April 15, 2004 issued one Partly Convertible Debenture (PCD) of a face value
of Rs. 50,00,00,005 at par to the Western India Trustee and Executor Company
Limited (India Advantage Fund-ll). As per terms of conversion, during the year,
the said PCD has been partly converted into 58.82.353 equity shares ot the
Company @ Rs. 82.65 per share based on the agreed formula. The balance of Rs.
13.823 Millions left after the above conversion has been redeemed at a premium
of 10%.
Term loans /
Debentures repayable / convertible within one year Rs. 1132.701 Millions
(Previous year Rs. 1202.522 Millions)
|
UNSECURED
LOANS |
|
|
|
Inter Corporate Deposits (secured by a personal guarantee of the
Chairman and Managing Director) |
100.000 |
0.000 |
|
|
100.000 |
0.000 |
Fixed Assets
Tangible Assets
- Free Hold Land
- Lease Hold Land
- Factory Building
- Non-Factory Building
- Plant and Machinery
- Furniture, Fixtures and
Office Equipment
- Vehicles (acquired on
Finance Lease)
- Capital Spares
Intangible Assets
- Goodwill
- Technical Designs / Drawings
- Software for Internal Use
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.44.11 |
|
UK
Pound |
1 |
Rs.86.79 |
|
Euro |
1 |
Rs.57.44 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
45 |
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 |
|