MIRA INFORM REPORT
|
Report
Date : |
07.02.2007 |
IDENTIFICATION
DETAILS
|
Correct
Name : |
ITC LIMITED |
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|
|
|
Formerly
Known As : |
INDIA TOBACCO COMPANY LIMITED |
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Registered
Office : |
Virginia House, 37, Jawaharlal Nehru Road, Kolkata -
700071, West Bengal |
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|
Country
: |
India |
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|
|
|
Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
28.08.1910 |
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Com.
Reg. No.: |
21-1985 |
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CIN
No.: [Company Identification No.] |
L16005WB1910PLC001985 |
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TAN
No.: (Tax Deduction & Collection Account No.) |
CALI01571D/CALI01969C/CALI01837D |
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PAN
No.: (Permanent Account No.) |
AAACI5950L |
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Line
of Business : |
Manufacturer of Cigarettes and Tobacco. It is also engaged
in Hotel Business. |
RATING & COMMENTS
|
MIRAs
Rating : |
Aa |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum
Credit Limit : |
USD
350000000 |
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|
|
Status
: |
Good |
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Payment
Behaviour : |
Regular |
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Litigation
: |
Clear |
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Comments
: |
ITC is a reputed group of companies, having multi products
and multi business operations. Available information indicates high financial
responsibility of the company and its management. Financial position of the
company is good. Payments are usually correct and as per commitments. The company has been
faring well. Its trade relations are fair. The company can be considered good for normal business
dealings at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Virginia House, 37, Jawaharlal Nehru Road, Kolkata - 700
071, West Bengal, India |
|
Tel.
No.: |
913322260034
/ 22260029 / 22266426 / 22499371 /
9253 / 22469373 / 22889371 |
|
Fax
No.: |
913322452251-60
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E-Mail
: |
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|
Website
: |
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Plants
: |
Cigarette Factories
˜
P.
O. Pulikeshinagar, Bangalore -560 005, Karnataka ˜
Sardar
Patel Marg, P. O. Box No. 25, Saharanpur - 247 001, Uttar Pradesh ˜
93/1,
Karl Marx Sarani, P. B. No. 17203, Kolkata - 700 043, West Bengal ˜
Meenakunte
Village, Jallahobli, Bangalore (North) - 562 157, Karnataka ˜
Basdeopur
P. O., District Munger - 811 202, Munger Green Leaf Threshing Plants
˜
East
Godavari District, Anaparti - 533 342, Andhra Pradesh ˜
P.
B. No. 1, Chirala - 523 157, Andhra Pradesh Packaging & Printing Plants
˜
Basdeopur
P. O., District Munger, Munger - 811 202 ˜
P.
O. Box No. 2277, Tiruvottiyur, Chennai - 600 019, Tamilnadu Tel. No.
91-44-2434 5298 / 3585 / 7092 Fax No. 91-44-2434 0294 ˜
Tribeni
Mill, P. O. Chandrahati, District Hooghly, West Bengal - 712 504 Paper & Paperboard Mills
˜
Anrich
Industrial Estate, Village Bollarum, Medak District, Andhra Pradesh 502 325 ˜
P.
O. Chandrahati, District Hooghly - 712 504, West Bengal ˜
Sarapaka,
Khammam District - 507 128, Andhra Pradesh Cast Coating Plant
Anrich
Industrial Estate, Village Bollarum, Medak District - 502 325, Andhra Pradesh Lifestyle Retailing
Design & Technology Centre86,
Industrial Estate, Phase I, Udhyog Nagar, Gurgaon - 122 016, Haryana Wills Lifestyle Stores
˜
A-6,
Sadar Bazar, Agra Cantt., Agra 282 001, Uttar Pradesh ˜
Shop
No. 3, Time Square Building, C. G. Road, Ahmedabad 386 006, Gujarat ˜
171/12,
Rama Building, Sadar Bazar Road, Ambala Cantt., Ambala 133 001 ˜
1381/13-4,
Madan Mohan Malviya Road, Amritsar 143 001, Punjab ˜
Motiwala
Trade Centre, Shop No. B-10 & N-11, Nirala Bazar, Aurangabad 431 001,
Maharashtra ˜
No.
6, Brigade Road, Bangalore 560 001, Karnataka ˜
Shop
No. 42-44, Siddharth Complex, R. C. Dutt Road, Alkapur, Baroda 243 001,
Gujarat ˜
48-A,
Civil Lines, Bareilly 243 001, Uttar Pradesh ˜
1675,
Kirloskar Road, Belgaum 462 001, Karnataka ˜
138/42,
Usha Preet Building, Malviya Nagar, Bhopal 462 001, Madhya Pradesh ˜
794,
Shaheed Nagar, Janpath, Bhubaneshwar 751 001, Orissa ˜
SCO
14, Sector 17E, Chandigarh 160 017 ˜
No.
19, Ground Floor, Quaiser Tower, Khader Nawaz Khan Road, Nungambakkam,
Chennai 600 034, Tamilnadu ˜
Plot
No. 4676, No. AA/11, Ground Floor, Anna Nagar, Chennai 600 040, Tamilnadu ˜
Aishwareya
Commercial Centre, 196/13, T. V. Samy Road (West), R. S. Puram, Coimbatore
641 002 ˜
56,
Rajpur Road, Dehradun 248 001, Uttar Pradesh ˜
Ground
Floor No. 40/7182, M. G. Road, Ernakulam 682 035, Karnataka ˜
No.
3293, Ground Floor, M. G. Road, Panjim, Goa 403 001, Maharashtra ˜
Shop
No. G 4 & 5, G. S. Chambers, Negarjuna Circle, Hyderabad 500 082,
Andhra Pradesh ˜
Shop
No. 8 & 9, Bansi Trade Centre, 581, M. G. Road, Indore 452 001, Madhya
Pradesh ˜
Gulab
Niwas, M. I. Road, Jaipur 302 001, Rajasthan ˜
540-R,
Rainbow Road, model Town, Jalandhar 144 003, Punjab ˜
5
& 6 Residency Road, Jammu 180 001 ˜
Rave
3, Parvati Bagla Road, Kanpur 208 002, Uttar Pradesh ˜
19
B, Shakespeare Sarani, Ground Floor, Kolkata 700 071, West Bengal ˜
17/1491,
A-4 Malabar Gate, Rammohan Road, Kozhikode 673 004 ˜
85/4A,
The Mall, Ludhiana 141 001, Punjab ˜
No.
36, Jwala Sahoy Trivedi Building, Hazratganj, Lucknow 226 001, Uttar Pradesh ˜
Shop
No. 1 & 2, 14-2-99/1, Ward No. 14, Balmatta Road, Mangalore 575 001,
Karnataka ˜
Plot
No. 386, Ground Floor, Durga Chambers, Linking Road, Khar (West), Mumbai
400 052, Maharashtra ˜
Shop
No. 7 & 8, Ground Floor, Prema Building, Plot No. 67, J. P. Road,
Lokhandwala, Andheri (West), Mumbai 400 058, Maharashtra ˜
No.
6 & 6A, Tirupati Apartment, Bhulabai Desai Road, Mumbai 400 027,
Maharashtra ˜
Shop
No. 2, 3 & 32, Ruki Mahal Co-operative Housing Society Limited, Plot No.
46, 44, Sector 17, Vashi, Navi Mumbai 400 705, Maharashtra ˜
3,
4, 61 & 62, Chadda Crescent Co-operative Housing Society Limited,
Plot No. 46, 55, Sector 17, Vashi,
New Mumbai 400 705, Maharashtra ˜
No.
27-29, Poonam Chambers, Byramij Town, Nagpur 440 013 ˜
F-41,
South Extension 1, New Delhi 110 049 ˜
No.
10208, Padam Singh Road, Karol Bagh, New Delhi 110 005 ˜
E-2,
Connaught Place, New Delhi 110 005 ˜
M-12,
Greater Kailash I, New Delhi 110 048 ˜
No.
M-14 a & M-15, a, b, c, d, Plot No. 331, Block E, Sector 27, Noida, G.
B. Nagar, Uttar Pradesh 201 301 ˜
No.
1204/22, Ground Floor, Shivaji Nagar, Junglee Maharaj Road, Pune 411 004,
Maharashtra ˜
119,
Jawaharlal Nehru Street, Pondicherry 605 001 ˜
1st
& 2nd Floor, GEL Church-Commercial Complex, Main Building,
Main Road, Ranchi 834 001 ˜
1-7-293/2/A/1,
M. G. Road, Secunderabad 500 003, Andhra Pradesh ˜
UG-2,
Manav Mandir, Athawa Lines, Parle Point Circle, Surat 395 07, Gujarat ˜
Shop
No. 1, Pan African Plaza, M. G. Road, Thiruvananthapuram 695 001, Tamilnadu ˜
C-56,
P.L.A.S. Tower, 4th Cross, Thillai Nagar, Main Road, Trichy 620
018, Kerala ˜
Shop
No. 1, Rednam Manor, Dwarka Nagar, Near Diamond Park, Vishakhapatnam 530
016, Andhra Pradesh Club Stores
BangaloreKarnataka
Golf Association Bangalore
Golf Club GurgaonClassic
Golf Resort JamshedpurBeldih
Club KolkataTollygunge
Club Royal
Calcutta Golf Club MumbaiUnited
Services Club |
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Hotels
: |
ITC Hotel Sonar BanglaSheraton
& Towers, 1, JBS Haldane Avenue, Kolkata 700 046, West Bengal ITC Hotel Grand Maratha Sheraton & TowersSahar,
Mumbai - 400 099, Maharashtra ITC Hotel Maurya Sheraton & TowersDiplomatic
Enclave, New Delhi - 110 021 Chola Sheraton10,
Cathedral Road, Chennai - 600 086, Tamilnadu WelcomeHotel Mughal SheratonTaj Ganj,
Agra - 282 001, Uttar Pradesh |
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Division
Headquarters : |
Chief Executive
Head of Finance
Vice President - HRD
Chief Information
Officer
Chief Manager -
Processed Fruits
Vice President -
Operations
Trader - Edible Nuts and
Spices
Chief Trader - Coffee
and Spices
Chief Manager - Aqua
|
DIRECTORS
|
Name : |
Mr.
Yogesh Chander Deveshwar |
|
Designation
: |
Chairman |
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|
Name : |
Mr. Sahibzada Syed Habib-ur-Rehman |
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Designation
: |
Executive Director |
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|
Name : |
Mr. Anup Singh |
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Designation
: |
Executive Director |
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|
Name : |
Mr. Krishnamoorthy Vaidyanath |
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Designation
: |
Executive Director |
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|
Name : |
Mr. Charles Richard Green |
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Designation
: |
Non-Executive Director |
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|
Name : |
Mr. Ajeet Prasad |
|
Designation
: |
Non-Executive Director |
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|
Name : |
Mr. Pillappakkam Bahukutumbi Ramanujam |
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Designation
: |
Non-Executive Director |
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|
Name : |
Mr. Basudeb Sen |
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Designation
: |
Non-Executive Director |
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|
Name : |
Mr. John Patrick Daly |
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Designation
: |
Non-Executive Director |
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|
Name : |
Mr. Ram S. Tarneja |
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Designation
: |
Non-Executive Director |
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Name : |
Mr. Balakrishnan Vijayaraghavan |
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Designation
: |
Non-Executive Director |
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Name : |
Mr. Yash Pall Gupta |
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Designation
: |
Non-Executive Director |
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|
Name : |
Mr. Sunil Behari Mathur |
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Designation
: |
Non-Executive Directors |
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|
Name : |
Mr. Dinesh Kumar Mehrotra |
|
Designation
: |
Non-Executive Directors |
Other Personal
|
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|
Name : |
Mr. Biswa
Behari Chatterjee |
|
Designation : |
Executive Vice President and Company Secretary |
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Managements :-
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|
Audit Committee :- |
|
|
Mr. P. B.
Ramanujam |
Chairman |
|
Mr. S B Mathur |
Member |
|
Mr. B Vijayaraghavan |
Member |
|
Mr. K Vaidyanath |
Director responsible for the Finance Function |
|
Mr. S Basu |
Head of Internal Audit |
|
Mr. B B
Chatterjee |
Company Secretary |
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Compensation Committee :- |
|
|
Mr. B.
Sen |
Chairman |
|
Mr. C. R.
Green |
Member |
|
Mr. J P Daly |
Member |
|
Mr. S B Mathur |
Member |
|
Mr. Ram
S. Taneja |
Member |
|
|
|
|
Investor Services Committee :- |
|
|
Mr. B.
Sen |
Chairman |
|
Mr. P. B.
Ramanujam |
Member |
|
Mr. A.
Singh |
Member |
|
Mr. B. B.
Chatterjee |
Secretary |
|
|
|
|
Nominations Committee :- |
|
|
Mr. Y. C.
Deveshwar |
Chairman |
|
Mr. J P Daly |
Member |
|
Mr. C. R.
Green |
Member |
|
Mr. S B Mathur |
Member |
|
Mr. D K Mehrotra |
Member |
|
Mr. P. B.
Ramanujam |
Member |
|
Mr. B.
Sen |
Member |
|
Mr. Ram
S. Tarneja |
Member |
|
Mr. B.
Vijayaraghavan |
Member |
|
|
|
|
Corporate Management Committee:- |
|
|
Directors:- |
|
|
Mr. Y. C.
Deveshwar |
Chairman |
|
Mr. S. S.
H. Rehman |
Member |
|
Mr. A.
Singh |
Member |
|
Mr. K.
Vaidyanath |
Member |
|
|
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|
Executives :- |
|
|
Mr. K. S.
Vaidyanathan |
Member |
|
Mr. R G Jacob |
Invitee |
|
Mr. A.
Nayak |
Permanent Invitee |
|
Mr. R.
Srinivasan |
Permanent Invitee |
|
Mr. B. B.
Chatterjee |
Secretary |
MAJOR SHAREHOLDERS
Category |
No. of shares |
% of shareholding |
|
Banks, Financial Institutions, Insurance
Companies and Mutual Funds |
1,35,91,45,869 |
36.19 % |
|
Foreign Companies |
1,20,86,86,701 |
32.19 % |
|
Foreign Institutional Investors |
53,84,43,002 |
14.34 % |
|
NRIs / OCBs / Foreign Nationals |
2,39,41,653 |
0.64 % |
|
Shares Underlying Global Depository Receipts |
6,87,00,497 |
1.83 % |
|
Indian Public & others |
55,62,61,138 |
14.81 % |
|
Total |
3,75,51,78,860 |
100.00 % |
Top Ten Shareholders of the Company as on 31st
March, 2006
Names of Shareholders |
No of shares |
% of shareholding |
|
Tobacco Manufacturers
(India) Limited |
99,27,82,440 |
26.44 % |
|
Unit
Trust of India |
44,55,54,160 |
11.87 % |
|
Life
Insurance Corporation of India |
44,08,83,480 |
11.74 % |
|
Myddleton
Investment Company Limited |
16,21,03,980 |
4.32 % |
|
The New
India Assurance Company Limited |
9,77,56,835 |
2.60 % |
|
General
Insurance Corporation of India |
7,43,32,465 |
1.98 % |
|
The
Oriental Insurance Company Limited |
7,39,05,780 |
1.97 % |
|
National
Insurance Company Limited |
6,89,55,110 |
1.84 % |
|
Citibank
N.A. New York, ADR Department |
6,87,00,497 |
1.83 % |
|
Rothmans International Enterprises Limited |
5,16,51,630 |
1.38 % |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of Cigarettes and Tobacco. It is also engaged
in Hotel Business. |
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Product
: |
|
PRODUCTION STATUS
The
company's production status for the year ended 31st March, 2006 was
as under :
|
Class of Goods |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Cigarettes |
Million |
1,23,547 |
99,349 |
59,123 |
|
Smoking
Tobaccos |
Tonne |
N.A. |
N.A. |
118 |
|
Printing
/ Packaging including Flexible |
Tonne |
N.A. |
47837 |
38,316 |
|
Redried
Tobacco |
Tonne |
N.A. |
N.A. |
1,03,889 |
|
Pulp |
Tonne |
N.A. |
1,00,000 |
97,615 |
|
Paperboards
and Paper |
Tonne |
N.A. |
3,52,500 |
3,65,819 |
GENERAL INFORMATION
|
No. of
Employees : |
5000 |
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|
Bankers
: |
˜
State
Bank of India, 38, Chowringhee Lane, Kolkata - 700 071, West Bengal ˜
Standard
Chartered Grindlays Bank Limited, 41, Chowringhee Lane, Kolkata - 700 071,
West Bengal ˜
United
Bank of India, 10 Netaji Subhas Road, Kolkata - 700 001, West Bengal ˜
Citibank
N.A., Kolkata, West Bengal ˜
Facilities:
Cash / Export Credit of Rs. 363.7 millions secured by charge over certain
current assets of the company, both present and future. |
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Facilities : |
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Banking Relations : |
Good |
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|
|
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Auditors
: |
A. F.
Ferguson and Company Chartered Accountants |
|
Address
: |
Kolkata,
West Bengal |
|
|
|
|
Associates
: |
˜
Ansal
Hotels Limited ˜
Gujarat
Hotels Limited ˜
Megatop
Financial Services and Leasing Limited ˜
Newdeal
Finance and Investment Limited ˜
Peninsular
Investments Limited ˜
Russell
Investments Limited ˜
Asia
Tobacco Company Limited ˜
Maharaja
Heritage Resorts Limited ˜
Classic
Infrastructure & Development Limited ˜
International
Travel House Limited ˜
Tobacco
Manufacturers (India) Limited, UK ˜
ITC
Filtrona Limited ˜
King
Maker Marketing Inc., USA |
|
|
|
|
Subsidiaries
: |
˜
Bay
Islands Hotels Limited ˜
BFIL
Finance Limited ˜
BFIL
Securities Limited ˜
Fortune
Park Hotels Limited ˜
Gold
Flake Corporation Limited ˜
Greenacre
Holdings Limited ˜
ITC
Hotels Limited ˜
ITC
Infotech (USA) Inc ˜
ITC
Infotech India Limited ˜
ITC
Infotech Limited ˜
Landbase
India Limited ˜
MRR
Trading & Investment Company limited ˜
Surya
Nepal Private Limited ˜
Russell
Credit Limited ˜
Srinivasa
Resorts Limited ˜
Wills
Corporation Limited ˜
ITC
Global Holdings Pte. Limited, Singapore ˜
Hup
Hoon Traders Pte. Limited, Singapore ˜
Hup
Hoon Shipping Pte. Limited, Singapore ˜
Chai
Fu Trading Pte. Limited, Singapore ˜
AOZT
"Hup Hoon", Moscow ˜
Hup
Hoon Impex srl, Romania ˜
Fortune
Tobacco Company Limited, Cyprus ˜
Fortune
Tobacco Company Inc., U.S.A. |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
5,00,00,00,000 |
Ordinary Shares |
Rs 10/-
each |
Rs.
5000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
3,75,51,78,860 |
Ordinary Shares |
Rs 10/-
each |
Rs.
3755.200 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share
Capital |
3755.200 |
2482.200 |
2476.800 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
|
|
3]
Reserves & Surplus |
86859.600 |
76461.800 |
61623.800 |
|
|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
90614.800 |
78944.000 |
64100.600 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
336.700 |
886.900 |
315.600 |
|
|
2]
Unsecured Loans |
860.600 |
1566.700 |
892.900 |
|
TOTAL
BORROWING
|
1197.300 |
2453.600 |
1208.500 |
|
|
DEFERRED
TAX LIABILITIES |
3247.600 |
3760.900 |
877.400 |
|
|
|
|
|
|
|
TOTAL
|
95059.700 |
85170.600 |
66186.500 |
|
|
|
|
|
|
|
APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block]
|
41617.300 |
39507.600 |
32983.100 |
|
Capital work-in-progress
|
2434.000 |
1861.500 |
3137.400 |
|
|
|
|
|
|
|
INVESTMENT
|
35170.100 |
38746.800 |
30539.600 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
26362.900
|
20029.900
|
15342.100 |
|
|
Sundry Debtors
|
5479.600
|
5277.600
|
2301.500 |
|
|
Cash & Bank Balances
|
8558.200
|
556.600
|
340.400 |
|
|
Other Current Assets
|
1468.000
|
1425.200
|
8171.800 |
|
|
Loans & Advances
|
9750.300
|
8103.600
|
8697.700 |
Total Current Assets
|
51619.000 |
35392.900 |
34853.500 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
21890.300
|
19256.400
|
28498.300 |
|
|
Provisions
|
13890.400
|
11081.800
|
6828.800 |
Total Current Liabilities
|
35780.700 |
30338.200 |
35327.100 |
|
Net
Current Assets
|
15838.300 |
5054.700 |
(473.600) |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
95059.700 |
85170.600 |
66186.500 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
100766.100 |
78752.600 |
66953.200 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
32691.900 |
26730.700 |
23190.600 |
Provision for Taxation
|
10338.400 |
48167.700 |
7262.100 |
Profit/(Loss) After Tax
|
22353.500 |
21914.000 |
15928.500 |
|
|
|
|
|
Export Value
|
17935.100 |
12686.500 |
10775.100 |
|
|
|
|
|
Import Value
|
6094.000 |
5970.900 |
4123.700 |
|
|
|
|
|
Total Expenditure
|
68074.200 |
52021.900 |
43762.600 |
QUARTERLY
RESULTS
|
Particulars |
30.06.2006 1st Quarter |
30.09.2006 2nd Quarter |
31.12.2006 3rd
Quarter |
|
Sales Turnover |
28497.500 |
28876.400 |
31655.700 |
|
Other Income |
849.400 |
794.800 |
697.900 |
|
Total Income |
29346.900 |
29671.200 |
32353.600 |
|
Total Expenditure |
18791.800 |
19149.100 |
20827.700 |
|
Operating Profit |
10555.100 |
10522.100 |
11525.900 |
|
Interest |
07.200 |
34.800 |
-08.700 |
|
Gross Profit |
10547.900 |
10487.300 |
11534.600 |
|
Depreciation |
876.400 |
909.700 |
921.000 |
|
Tax |
3148.700 |
2781.600 |
3439.600 |
|
Reported PAT |
6522.800 |
6796.000 |
7174.000 |
200606 Quarter 1
Expenditure Includes
(Increase) / Decrease in Stock in Trade Rs (2411.30) million Consumption of Raw
Materials Rs 14716.60 million Staff Cost Rs 1525.50 million Other Expenditure
Rs 4961.00 million Tax indicate Provision for taxation (including prior year
adjustments) EPS is Basic Status of Investor Complaints for the quarter ended
June 30, 2006 Complaints Pending at the beginning of the quarter Nil Complaints
Received during the quarter 08 Complaints disposed off during the quarter 08
Complaints unresolved at the end of the quarter Nil 1. The above results were
reviewed by the Audit Committee and approved at the meeting of the Board of
Directors of the Company held on July 21, 2006. 2. Figures for the
corresponding previous quarter have been re-arranged, wherever necessary, to
conform to the figures of the current quarter. 3. Gross Income comprises Segment
Revenue and Other Income. 4. Effective April 01, 2006, the Company has adopted
the revised Accounting Standard - 15 (AS-15) Employee Benefits as issued by the
Institute of Chartered Accountants of India. Pursuant to this, based on
actuarial valuation: a. The net additional opening liability as on April 01,
2006 for defined benefit plans towards Pension and Gratuity amounting to Rs 1.7
million has been adjusted against the opening balance of avenues reserves, and
b. There is an additional charge of Rs 16.90 million for the current quarter
towards liability for Pension and Gratuity. 5. Profit after tax of Rs 5583.00
million for the quarter ended June 30, 2005 included a once-of income (net of
tax) of Rs 194.90 million, which arose from the settlement reached with the
owners of Searock hotel. Consequently, the underlying growth in Profit after
tax for the quarter ended June 30, 2006 is 21.1%. 6. Provision for Taxation
includes Rs 30.8 million (corresponding previous quarter Rs 43.20 million) for
Fringe Benefit Tax. 7. The above as per clause 41 of Listing Agreement Limited
Review: The Limited Review as under Clause 41 of the Listing Agreement has been
completed and related Report farwarded to the Stock Exchanges. The Report does
not have any impact on the above 'results and Notes' for the quarter ended
30.06.2006 which needs to be explained.
2006-09
Quarter 2
Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (117.40) million Consumption of Raw Materials Rs 12428.30
million Staff Cost Rs 1496.70 million Other Expenditure Rs 5341.50 million Tax
indicate Provision for taxation (including prior year adjustments) 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 01 Complaints disposed off during the quarter 01 Complaints
unresolved at the end of the quarter Nil 1. The above results were reviewed by
the Audit Committee and approved at the meeting of the Board of Directors of
the Company held on October 30, 2006. 2. Figures for the corresponding previous
quarter and half year ended September 30, 2005, have been re-arranged, wherever
necessary, to conform to current presentation. 3. Gross Income comprises
Segment Revenue and Other Income. 4. During the quarter, 21,69,670 Ordinary
Shares of Re 1/- each were issued and allotted under the ITC Employee Stock
Option Scheme. Consequently, the issued and paid up share capital of the
Company as on September 30, 2006 stands increased to Rs 375,73,48,530/-. 5.
Provision for taxation includes Rs 31.70 million & Rs 62.50 million for
Fringe Benefit Tax for the quarter and half year ended September 30, 2006
respectively. (Corresponding previous quarter and half year ended September 30,
2005 - Rs 52.00 million and Rs 95.20 million respectively). 6. The Company has
increased its shareholding in King Marketing, Inc USA (KMM), from 50% to
50.98%, effective October 25, 2006. Consequently, KMM, which is primarily in
the business of distribution of tobacco products became a subsidiary of the
Company from the said date. 7. The Limited Review as required under clause 41
of the Listing Agreement has been completed and the related report forwarded to
the Stock Exchanges. This Reprt does not have any impact on the above results
and Notes for the quarter and half year ended September 30, 2006 which needs to
be explained.
200612
Quarter 3
Expenditure Includes (Increase) / Decrease in
Stock in Trade Rs (773.60) million Consumption of Raw Materials Rs 14249.60
million Staff Cost Rs 1647.10 million Other Expenditure Rs 5704.60 million Tax
indicate Provision for taxation (including prior year adjustments) EPS is Basic
Status of Investor Complaints for the quarter ended December 31, 2006
Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 03 Complaints disposed off during the quarter 03 Complaints
unresolved at the end of the quarter Nil 1. The above results were reviewed by
the Audit Committee and approved at the meeting of the Board of Directors of
the Company held on January 31, 2007. 2. Figures for the corresponding previous
quarter and nine months ended December 31, 2005, have been re-arranged,
wherever necessary, to conform to current presentation. 3. Gross Income
comprises Segment Revenue and Other Income. 4. During the quarter, 2817390
Ordinary Shares of Re 1/- each were issued and allotted under the ITC Employee
Stock Option Scheme. Consequently, the issued and paid up share capital of the
Company as on December 31, 2006 stands increased to Rs 3760.165 Millions. 5.
Provision for taxation includes Rs 35.20 million & Rs 97.70 million for
Fringe Benefit Tax for the quarter and nine months ended December 31, 2006
respectively. (Corresponding previous quarter and nine months ended December
31, 2005 - Rs 52.20 million and Rs 147.40 million respectively). 6. The above
is as per Clause 41 of the Listing Agreement. 7. The Limited Review as required
under clause 41 of the Listing Agreement has been completed and the related
report forwarded to the Stock Exchanges. This Report does not have any impact
on the above results and Notes for the quarter and nine months ended December
31, 2006 which needs to be explained.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.02 |
0.03 |
0.02 |
|
Long Term Debt Equity Ratio |
0.01 |
0.01 |
0.01 |
|
Current Ratio |
1.15 |
0.97 |
1.06 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.74 |
2.58 |
2.66 |
|
Inventory |
6.99 |
7.55 |
8.48 |
|
Debtors |
29.59 |
34.24 |
51.28 |
|
Interest Cover Ratio |
153.80 |
52.84 |
68.85 |
|
Operating Profit Margin (%) |
22.05 |
22.45 |
21.96 |
|
Profit Before Interest and Tax Margin (%) |
20.00 |
20.11 |
19.92 |
|
Cash Profit Margin (%) |
15.83 |
15.90 |
15.53 |
|
Adjusted Net Profit Margin (%) |
13.78 |
13.56 |
13.48 |
|
Return on Capital Employed (%) |
37.73 |
36.89 |
39.58 |
|
Return on Net Worth (%) |
26.55 |
25.52 |
27.34 |
STOCK PRICES
|
Face Value |
Rs. 10.00/- |
|
High |
Rs. 188.00/- |
|
Low |
Rs. 184.05/- |
LOCAL AGENCY FURTHER INFORMATION
History:
Started in 1990, ITC-IBD today holds a prominent
position among the exporting community in India. It contributes over 60% of ITC
Group's total foreign exchange earnings.
ITC-IBD attributes its leverage in the industry,
to a focussed approach on strengthening its core competencies in select
commodities. Today, IBD continues to deliver the pick of India's agri
commodities like Feed Ingredients - Soyameal, Rapeseed Meal; Food grains - Rice
(Basmati & Non Basmati), Wheat & Wheat Products, Pulses; Coffee, Black
Pepper; Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil & Marine
products like Shrimps and Prawns, Processed Fruits - Mango, Papaya and Guava
Products.
Its beginnings were humble. A leased office on Radha Bazar
Lane, Kolkata, was the centre of the companys existence. The company
celebrated its 16th birthday on August 24, 1926, by purchasing the
plot of land situated at 37, Chowringhee, Kolkata, for the sum of Rs. 0.310
million. This decision of the company was historic in more ways than one. It
was to mark the beginning of a long and eventful journey into Indias future.
The companys headquarter building, Virginia House, which came up on that
plot of land two years later, would go on to become one of Kolkatas most
venerated landmaks. The companys ownership progressively undiagnosed and the
name of the company was changed to ITC Limited in 1974. Currently British
American Tobacco Company (U.K.) controls 31.7% equity stake in company.
Though the first six decades of the companys existence were
primarily devoted to the growth and consolidation of the Cigarette and Leaf
Tobacco businesses, the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life of the
company.
In 1975, the company launched its hotels business with the
acquisition of a hotel in Chennai, which was rechristened "Hotel Chola". It chose the hotels business for its
potential to earn high levels of foreign exchange, create tourism
infrastructure, and generate large scale direct and indirect employment. Since then the company's hotels business has
grown to occupy a position of leadership, with 40 owned and managed properties
spread across India. It also has a
marketing and reservation arrangement with the Sheraton Corporation, the
reputed international hotel chain.
In 1979, the company entered the paperboards business by promoting
ITC Bhadrachalam Paperboards Limited, which today has become the market leader
in India.
In 1985, it set Surya Tobacco Company in Nepal as a joint
venture with the reputed Soaltee Group.
In 1990, it acquired Tribeni Tissues Limited, a speciality paper
manufacturing company and a major supplier of tissue paper to the cigarette
industry. In 1992, leveraging its
agri-sourcing competency, the company set up the International Business
Division (IBD) for export of agri-commodities.
This division is today one of India's largest exporters.
Recently, the company's packaging and printing business has
launched a line of high quality greeting cards under the brand name
"Expressions". It has also
entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wears for men and women.
During 2002, ITC Bhadrachalam Paperboards Limited, a
subsidiary company was merged with the company. The shareholders of ITCPBL were allotted one equity share of the
company for every sixteen shares held.
ITC Bhadrachalam Paperboards (ITCBPL) incorporated in July,
1975 commenced business in October, 1979. Part of the ITC group, in 1986,
ITCBPL came out with a right issue of 15.90 millions equity shares (premium:
Rs. 90) aggregating to Rs. 1590 millions on 3:10 basis, to part finance its
expansion plans. It manufactures a wide range of baseboards, papers and
paperboards for packing cigarettes, safety matches, detergents, etc. Its
product range also includes superior quality cultural paper, coated and
speciality papers and boards.
During the year 2000-2001 the company developed superior
products for critical applications like liquid packaging and premium quality
graphics printing. It also embarked on a modernisation-cum-upgradation project of
the pulp mill with an outlay of Rs. 2260 millions.
The company was merged with ITC, its group company during
the year 2002. The shareholders of the company were allotted one equity share
of ITC for every 16 shares held.
The company has pioneered the manufacture of cigarettes in
India and has, since 1910, maintained its leadership position in the
industry. It has diversified brands
across product categories. Its
successful brands include Gold Flake, Wills, Classic, Bristol and
Scissors. It also sells two luxury
filter brands of its parent company, Benson and Hedges and 555.
The Scheme of Amalgamation of the erstwhile ITC Bhadrachalam
Paperboards (ITC Bhadrachalam) with company was sanctioned by the Honourable
High Court at Kolkata and the Honourable High Court of Judicature of Andhra
Pradesh at Hyderabad, on 24th January 2002 and 8th
February, 2002, respectively. Upon completion of the requisite formalities, the
Scheme became effective on 13th March 2002, and operative from 1st
April, 2001. ITC Bhadrachalam thus became a Division of company under the
nomenclature Bhadrachalam Paperboards Division.
In consideration of the amalgamation, 20,96,982 fully
paid-up ordinary shares of Rs. 10/- each of company were issued and allotted on
6th May, 2002 to the members of ITC Bhadrachalam. The new ordinary
shares rank pari passu with the existing ordinary share of the company. The
paid up share capital of the company has consequently increased from Rs.
2454.100 millions to Rs. 2475.100 millions.
Milestones
1996
Flat 10 packs launchced
1997
10s hinged-lid packs introduced for regular size filters
1999
New factory at Bangalore commenced operations
2000
Brownfield project at Saharanpur factory completed
Entry into Lifestyle Retailing business with first store in
Delhi
2001
Regular size filters offered in 5s packs
Wills Lifestyle chain rapidly scaled upto 29 stores
Engry into the foods Business with lauch of Kitchens of
India.
Expressions valued Customer programme started
2002
Beveled edge packs introduced
mint-o trademark acquired relaunched in lemon and mint
flavours, Candyman added to confectionery rang, Aashirvaad atta rolled out
Chain expanded to 48 stores; Master Design Facility
established; Wills Classic formal wear launched; John Players introduced in
the mid-priced popular segment.
Entry into Greeting Cards business
Expressions Paperkraft premium paper products launched
Entry into marketing of safety matches
2003
India Kings marketed in contour packs; Insignia lauched
in shoulder box
Integrated Group Research and Development Centre established
Aashirvaad Salt introduced; Candyman range expanded to deposited candies
and eclaris; Sunfeast biscuits lauched; Aashirvaad Ready Meals offered;
mint-o in lemon mint flavour.
Wills Clublife evening wear launched.
Expressions Classmate mass market notebooks for schools
and colleges introduced.
Entry into marketing of Agarbatties
2004
Long Size filters offered in wave packs
Kitchens of India extended to cooking pastes
Mangaldeep brand of Agarbatties added to portfolio.
Fixed Assets
Ψ
Trademarks and Goodwill
Ψ
Know-how, Business and Commercial Rights
Ψ
Land Freehold
Ψ
Buildings Freehold
Ψ
Leasehold Properties
Ψ
Licensed Properties - Building Improvement
Ψ
Railway Sidings etc.
Ψ
Plant and Machinery
Ψ
Capitalised Software
Ψ
Computers etc.
Ψ
Furniture and Fixtures
Ψ
Motor Vehicles etc.
Directors Profile:
Y. C. Deveshwar
Y. C. Deveshwar, Chairman
of ITC Limited since January 1, 1996, is respected for the deep insight with
which he steers a multi-business corporation like ITC, and is credited with
several key strategic interventions which have positioned ITC as a well
managed, well governed, value creating, top league Company in India.
An engineering graduate
from NT, Delhi, Deveshwar was handpicked by the Government in 1991 to head the
national carrier, Air India, as Chairman and Managing Director. He had a
successful stint in this assignment till 1994, during which period he was also
a member on the Boards of Indian Airlines, International Airports Authority of
India, Airports Authority of India and Air Mauritius Limited. Deveshwar is the
President of the Confederation of Indian Industry, India's premier industry
body. He also serves on the Executive Committees of other prominent trade and
industry bodies. He is a member of the Board of Governors of the Indian School
of Business, Hyderabad. The Government of India has nominated him the Chairman
of the Society and Board of Governors of the Indian Institute of Management,
Calcutta. He is also a member of the National Manufacturing Competitiveness
Council.
Deveshwar
has been honoured with several recognitions within India/ including the
Honorary Fellowship of the All India Management Association, the Distinguished
Alumni Award of the Indian Institute of Technology, Delhi, the Meridien
Hotelier of the Year Award and the Marketing Man of the Year from A and M, the
country's leading marketing publication. Deveshwar has also been honoured with
the Manager Entrepreneur of the Year Award 2001, by Ernst and Young.
Other Directorships
|
Name of the Company |
Position |
|
Surya Nepal Private Limited |
Chairman and Director |
|
International Travel House Limited |
Director |
|
HT Media Limited |
Director |
|
Woodlands Medical Centre Limited |
Director |
|
West Bengal Industrial Development Corporation Limited |
Director |
Committee
Memberships of other Companies: Nil
S. S. H. Rehman
S. S. H. Rehman was
appointed a Director on the Board of ITC on November 21, 1997. He began his
career with the Indian Army, moving over to the hospitality industry in 1975
and joining ITC in 1979. Since then Rehman has been General Manager of
Welcomgroup's premier hotels across India as also its Regional Director, Vice
President- Operations and President. Rehman was appointed Managing Director of
the erstwhile ITC Hotels Limited in 1994 and continued in that position till
July, 2003. He is currently in charge of the Hotels, Travel and Tourism and
Foods businesses of the Company.
Other Directorships
|
Name of the Company |
Position |
|
ITC Infotech India Limited |
Chairman and Director |
|
ITC
Infotech Limited |
Chairman and Director |
|
ITC Infotech (USA), Inc. |
Chairman and Director |
|
Asia Tobacco Company Limited |
Chairman and Director |
|
Surya Nepal Private Limited |
Director |
|
West Bengal Industrial Development Corporation Limited |
Director |
|
The Tollygunge Club Limited |
General Committee Member |
Committee
Memberships of other Companies: Nil
Anup
Singh
Anup Singh was appointed
a Director on the Board of ITC on November 21, 1997. He joined ITC in 1968
after receiving a Bachelor's degree in Electrical Engineering from NT,
Kharagpur. He was a key participant in the Company's major strategic initiative
in the mid seventies to implement the concept of 'Management by Objectives
(MBO)'.
Singh has had a long stint in ITC's Cigarette business,
including heading it as the Chief Executive. He has also been the Chief
Executive of the erstwhile Specialty Papers Division. He is currently in charge
of the Cigarettes, Information Technology and Lifestyle Retailing businesses of
the Company.
He is immediate Past
President and a Committee member of the Indian Chamber of Commerce. He is also
a Director of The Tobacco Institute of India.
Name of the Company Committee Position
Other Directorships
|
Name of the Company |
Position |
|
ITC Infotech India Limited |
Chairman and Director |
|
ITC Infotech Limited* |
Chairman and Director |
|
ITC Infotech (USA), Inc.* |
Chairman and Director |
|
Asia Tobacco Company Limited |
Chairman and Director |
|
Surya Nepal Private Limited* |
Director |
|
West Bengal Industrial |
Director |
|
Development Corporation |
General Committee |
|
Limited |
Member |
|
The Tollygunge Club Limited |
Committee Memberships of other Companies: Nil |
K. Vaidyanath
K. Vaidyanath was inducted
into the ITC Board on January 1 7, 2001. He holds responsibility for the Company's
Finance and IT functions, its investment subsidiary, Agri Business and
Corporate Communications. Before his
elevation to the Board, he was the Company's Chief Financial Officer. An MBA
from XLRI, Jamshedpur, Vaidyanath has been with ITC for the past 29 years. He
has held various positions in the Company's Finance function including that of
Head of Finance of ITC's Packaging, Hotels and International Businesses. He has
also been Head of Corporate Planning and Treasury, as well as Internal Audit.
Vaidyanath is a Committee member of the Bengal Chamber of Commerce and
Industry. He was adjudged one of the best CFOs in the country in a survey
conducted by Business Today magazine in 2005.
Other Directorships
|
Name of the Company |
Position |
|
Russell
Credit Limited |
Chairman and Director |
|
Gold Flake Corporation Limited |
Chairman and Director |
|
Wills Corporation Limited |
Chairman and Director |
|
Greenacre Holdings Limited |
Chairman and Director |
|
ITC Infotech India Limited |
Director |
|
Agro Tech Foods Limited |
Director |
|
Classic Infrastructure and Development Limited |
Director |
Committee Memberships of other Companies
|
Russell Credit Limited |
Audit Committee |
Chairman |
|
Gold Flake Corporation Limited |
Audit Committee |
Chairman |
|
Greenacre Holdings Limited |
Audit Committee |
Chairman |
|
ITC Infotech India Limited |
Audit Committee |
Member |
J. P. Daly
J. P. Daly joined the ITC
Board as a representative of BAT on January 21, 2005. His academic
qualifications include a Master of Business Administration from the University
of Dublin and a Diploma in Marketing from the Institute of Marketing, UK. Daly
was appointed Director, Asia Pacific, BAT in October 2004. He has occupied
senior positions for nearly 20 years in the tobacco and pharmaceutical
industries. Prior to the merger of British American Tobacco and Rothmans
International in 1999, Daly was the Strategic Planning Director - EU in
Rothmans Europe and the Managing Director - Japan and Korea in Rothmans Asia.
After the completion of the merger he was appointed Regional Manager Middle
East, South and Central Asia and then as Area Director - Middle East.
Other Directorships
|
Name of the Company |
Position |
|
British-American Tobacco
Middle East FZ-LLC* |
Director |
|
British American Tobacco (Australasia Holdings) Pty.
Limited* |
Director |
Committee Memberships of other Companies: Nil
C. R. Green
C. R. Green has represented BAT on the ITC Board from April
16, 1999. He joined BAT in 1993 after a long and distinguished career in the
oil industry. He has spent over 18 years with Texaco, the US oil major in a
variety of roles including Director of Texaco, Brazil and its Regional Manager
for Latin America.
In the tobacco industry, Green has worked with Brown and
Williamson, where he was Vice President
P. B.
Ramanujam
P. B. Ramanujam has represented the General Insurance
Corporation of India (GIC) and its erstwhile subsidiaries on the Board of ITC
since October 30, 1998. He has held several responsibilities in GIC covering
finance, accounts / investments, reinsurance, information technology etc. He
was General Manager and Director with the National Insurance Company Limited
and the Managing Director of GIC till July 31, 2004.
Ramanujam
has served as a faculty member at the National Insurance Academy, Pune. He was
also the Chairman of the committee appointed by the interim Insurance
Regulatory Authority (IRA) for prescribing norms, rules and regulations in the
area of finance. He has also been a member of two other IRA committees on
technical issues and investment matters, and Insurance Regulatory Information
System. He has recently been appointed Chairman of FICCI's Reinsurance
Sub-Committee. He is also a Member of the Insurance Tariff Advisory Committee
and the Finance Committee of Insurance Regulatory and Development Authority
(IRDA).
Other
Directorships
|
Name
of the Company |
Position |
|
Nicco Corporation Limited |
Director |
|
BOC India Limited |
Director |
Committee
Memberships of other Companies: Nil
Basudeb
Sen
Basudeb
Sen has been on the Board of ITC since March 23, 1995, first as a nominee, then
as a representative of UTI, and from July 28, 2000 as an Independent
Non-Executive Director. Sen has over 32 years of management experience in
different areas of commercial banking, development banking and investment
management. He is an M.A. in Economics and a Ph.D. from Indian Statistical
Institute, besides being an alumnus of the Harvard Business School. He has
contributed several articles in academic / professional journals and financial
papers on a wide range of issues related to management, economics, banking,
financial markets and
energy.
He has served as Chairman and Managing Director of
the Industrial Investment Bank of India Limited and as Executive Director of
UTI. He has managed critical business responsibilities in various areas
including strategic planning, risk management system, investment portfolio
management and fund marketing and credit and project appraisal.
In the
last two decades, Sen has served as Chairman and / or Member of various working
groups / committees set up by SEBI, RBI, Indian financial institutions and
industry associations on suth issues as consortium lending, corporate
governance, institutional disinvestment, overseas investment by mutual funds,
money markets and corporate debt restructuring, as also on the Boards of
several companies in sectors like infrastructure, engineering, petrochemicals,
electronics and financial services.
Other Directorships
Name of the
Company Position
Gujarat NRE
Coke Limited Director
South Asian
Petrochem Limited Director
Srei
Venture Capital Limited Director
Committee Memberships of other
Companies
Name of the Company Committee Position
Gujarat NRE
Coke Limited Audit
Committee Member
South Asian
Petrochem
Limited Shareholders'
Member
Grievance Committee
Audit
Committee Member
Ram S. Tarneja
Ram S. Tarneja joined the
ITC Board as an Independent Non-Executive Director on November 25, 1996. His
present Chairmanships include, among others, that of Jolly Board Limited,
Nissin ABC Logistics Private Limited and the Pan Asian Management and Rural
Research Organisation. Tarneja was Managing Director - Bennett, Coleman and
Company Limited, until May 1991 and continues to be on the Board of that
company. He is past President, Indian Merchants Chamber, All India Management
Association, Indian Newspaper Society, Indian Institute of Personnel
Management, Asian Association of Management Organisations and others.
Other
Directorships
|
Name of
the Company |
Position |
|
jolly
Board Limited |
Chairman
and Director |
|
Transcorp
International Limited |
Director |
|
Nesco
Limited |
Director |
|
Bharat
Gears Limited |
Director |
|
Bennett,
Coleman and Company Limited |
Director |
|
Housing
Development Finance Corporation Limited |
Director |
|
Ballarpur
Industries Limited |
Director |
|
Rallis
India Limited |
Director |
|
Otis
Elevator Company (India) Limited |
Director |
|
Phillips
Carbon Black Limited |
Director |
|
Gati
Limited |
Director |
|
Phoenix
Township Limited |
Director |
|
SOWiL
Limited |
Director |
Committee
Memberships of other Companies
|
Name of
the Company |
Committee |
Position |
|
Bharat
Gears Limited |
Audit
Committee |
Chairman |
|
Bennett,
Coleman and Company Limited |
Audit
Committee |
Chairman |
|
Housing
Development Finance Corporation Limited |
Shareholders
/ Investors Grievance Committee |
Chairman |
|
Ballarpur
Industries Limited |
Shareholders
/ Investors Grievance Committee |
Chairman |
|
Rallis
India Limited |
Audit
Committee Shareholders
/ Investors Grievance Committee |
Member |
|
Otis
Elevator Company (India) Limited |
Audit
Committee Member |
Member |
B.
Vijayaraghavan
B. Vijayaraghavan joined the ITC Board as an
Independent Non-Executive Director on November 25, 1996. Vijayaraghavan was in
the Indian Administrative Service from 1957 to 1993, when he retired in the
rank of Chief Secretary to the Government of Tamil Nadu. He has served as
Secretary to the Tamil Nadu Government in the Public Works, Forests and
Fisheries, Prohibition and Excise and Home departments. He has been the
Chairman of the Tamil Nadu Electricity Board, Member Board of Revenue and
Commissioner of Commercial Taxes, Tamil Nadu, Chairman and President - Tuticorin
Alkali Chemicals and Fertilisers Limited, Chairman and Managing Director
State Industries Promotion Corporation of Tamil Nadu and Vigilance Commissioner
and Commissioner for Administrative Reforms, Tamil Nadu.
After his retirement from Government service, Vijayaraghavan
was a Member of the Syndicates of Alagappa University and Bharathidasan
University, Member of the Governing Council, Salim AN Centre for Ornithology
and Natural History and Member of the Committee for Economic Reforms, jammu and
Kashmir and a Trustee of the Indian Bank Mutual Fund. Vijayaraghavan is
currently Chairman, Chennai Snake Park Trust. He does not hold directorship or
committee membership of any other company.
Notes:
1. Other Directorships and Committee Memberships of Directors
are as on 31st March, 2005.
2.
Other Directorships exclude Directorships in Indian Private Limited Companies,
Memberships of Managing Committees of Chambers
of Commerce / Professional Bodies and Alternate
Directorships.
3. Committee Memberships are in respect of Audit Committee
and Investors Grievance Committee of Indian Companies.
Denotes foreign Company.
Business:
Subject is engaged in the business as manufacturers of
Cigarettes and Unmanufactured Tobacco.
It is also engaged in Hotel Business.
Subject is one of the
most valuable companies India. It is a market leader in India in Cigarettes and
Tobacco and also operates business like Hotels, Packaging, Speciality Papers
and Paperboards. It has recently entered the Lifestyle Retailing business with
the launch of the Wills Sport range of relaxed wear. It has also spun off
its information Technology business into a wholly owned subsidiary of Indian
agri-commodities.
India is the third
largest tobacco producer in the world, after the U.S.A. and China. The country
produces an estimated 550 millions kg of tobacco annually. It is also one of
the worlds biggest market for tobacco. The company has pioneered the
manufacture of cigarettes in India and has, since 1910, maintained its
leadership position in the industry. It has diversified its brand across
product categories. Its successful brands include Gold Flake, Wills, Classic,
Bristol and Scissors. It also sells two luxury filter brands of its parent
company, Benson and Hedges and 555.
Awards
·
Golden Peacock Global
Award;
- Greentech Environment
Excellence Gold Award;
- Highest Green Rating from
Centre for Science and Environment;
- Cll ENCON Award;
- CAPEXIL Top Export Award;
Indira
- Priyadarshini Vrikshamitra
Award;
- Cll Vantech Industry Rolling
Trophy;
- Rajiv Gandhi Parti Bhoomi Mitra
Award;
- National Award for Energy
Conservation;
- Gold Award for Safety from the
Royal Society for Prevention of Accidents (UK).
Company
Performance
The Company posted yet another year of impressive results
testifying to the robustness of the corporate strategy of creating multiple
drivers of growth. The performance is even more satisfying when viewed in the
light of the challenging business environment of the cigarette industry,
incubation costs of new FMCG businesses and the rural marketing initiatives and
gestation costs of investments in the paperboards business.
Gross Turnover for the year 2005-06 grew by 21.5% to Rs.162240 millions, driven
by good top line growth across all businesses of the Company.
Pre-tax profit (before exceptional items) increased by 22.3% to Rs.32690
millions, while post-tax profit (before exceptional items) at Rs.22800 millions
registered a growth of 24.1%. The financials for the year include Rs.450
millions (post-tax) towards once off assistance to contract manufacturers in
view of the retrospective withdrawal of Central Excise exemption on cigarettes
manufactured in the North Eastern States during the year 2000 (last year's
exceptional items represent net income amounting to Rs.3540 millions (post-tax),
most of which relate to past litigation). Inclusive of this exceptional item,
the Company's Profit After Tax stands at Rs.22350 millions. Earnings Per Share
(before exceptional items) for the year stands at Rs. 6.08. Cash flows from
Operations were Rs.29970 millions during the year. The ITC scrip gained 118%
during the year outperforming the benchmark BSE Sensex by 44 percentage points.
In order to strike a balance between the need to sustain strategic
investments for a secure future and the annual expectation of shareholders for
growing income, the Directors are pleased to recommend a dividend of Rs.2.65
per Ordinary Share of Re.1/- each {previous year (adjusted for stock split and
bonus issue): Rs.2.07 per share} for the year ended 31st March, 2006. The cash
outflow in this regard will be Rs.11346.8 millions (previous year Rs.8817.0
millions) including Dividend Tax of Rs.1395.6 millions (previous year Rs.1084.5
millions). The Board further recommends a transfer to General Reserve of
Rs.11500 millions (previous year Rs.11000 millions). Consequently, the Board
recommends leaving an unappropriated balance in the Profit and Loss Account of
Rs.5620.6 millions (previous year Rs. 6114.1 millions).
Foreign exchange earnings
The Company continues to view foreign exchange earnings as a
key priority. All businesses in the ITC portfolio are mandated to engage with
overseas markets in a bid to test competitiveness and seek growth
opportunities. The ITC Group's contribution to foreign exchange earnings over
the last ten years amounted to nearly USD 2.5 billion, of which agri exports
constituted 65%. Earnings from agri exports is an indicator of the Company's
contribution to the rural economy through effectively linking small farmers
with international markets.
During the financial year 2005-06, the Company, its subsidiaries and the
ITC-Welcome group hotel chain together earned Rs.19410 millions in foreign
exchange. Direct foreign exchange earned by the Company amounted to Rs.17940
millions. The Company's expenditure in foreign currency amounted to Rs.6790
millions, comprising purchase of raw materials, spares and other expenses at
Rs.5390 millions, and import of capital goods at Rs.1400 millions.
Branded packaged foods
The Company's Branded Packaged Foods business continued to
expand rapidly with sales recording an impressive growth of 87% over the
previous year. Product portfolio was further augmented during the year with the
launch of a number of differentiated and innovative products leveraging the in-house
capability of the ITC R&D Centre at Bangalore. The range now comprises more
than 100 distinct food products under 5 brands. The Company's unwavering
commitment to internationally benchmarked quality standards enabled it to
further enhance the market standing of all its brands.
The Biscuits category was rapidly scaled up during the year with sales doubling
over previous year's levels. The Sunfeast' range was further expanded with the
launch of Cookies (Sunfeast Golden Bakes') in 3 exciting variants and Sweet and
Salt Crackers (Sunfeast Snacky') in 2 unique variants. These products have met
with excellent consumer response and continue to gain consumer franchise.
Sunfeast Dark Fantasy', a dark chocolate and vanilla cream offering, was
extended to select markets during the year. It has redefined the premium
segment and further strengthened the Company's quality reputation. These
product launches/extensions, along with the strong growth trend in the sales of
other value added products in the Creams and Marie segment, enriched the
portfolio and improved realizations. During the year, the outsourced and
distributed manufacturing capacities were geared up to support the increase in
scale of operations.
The business is in the process of establishing its own production facilities
across the country, including in tax-exempt zones, with a view to servicing
proximal markets in an efficient and cost-effective manner.
The year also saw the roll out to target markets of Sunfeast Pasta Treat', a
semolina based non-fried product. This healthy snacking option is available in
4 exciting flavours and has met with encouraging response from consumers. The
Company has signed up superstar Shah Rukh Khan as the brand ambassador for
Sunfeast'. This association is expected to yield significant value addition by
reinforcing the brand attributes and reiterating the spread the smile'
positioning.
In the Staples category, Aashirvaad Atta' continued to gain increasing consumer
franchise, further consolidating its position as the clear leader amongst
national branded players with market share touching 45%. Aashirvaad Select',
the Company's premium atta offering, was extended to target markets during the
year. Plans are on the anvil to launch value added variants to augment product
range. The year also marked the entry into the branded spices market under the
Aashirvaad' brand, leveraging the brand's strong association with superior
quality and consistency.
In the Confectionery category, the Company's brands - Candyman' and Mint-o' -
posted strong growth with sales growing by nearly 70% over the previous year.
Product portfolio was bolstered during the year with the launch of Mint-o masti
blue' in a refreshingly new pack design and product formulation and Cofitino'
in the hitherto unrepresented Toffees segment. These products have met with
encouraging response from consumers.
In the Ready-to-Eat segment, product portfolio was expanded with the
introduction of number of variants in the packaged desserts and conserves and
chutneys segment under the Kitchens of India' (KOI) banner. Several new
variants were also launched during the year to augment the popular' range of
Aashirvaad Ready Meals'.
The year also marked the business' foray into the Instant Mixes markets under
the Aashirvaad' brand. The Aashirvaad Instant Mixes' range currently comprises
5 products, which are being extended to the target markets. The Kitchens of
India' brand has become synonymous with the finest packaged Indian food. Its
gourmet offerings are critically acclaimed by consumers for their authentic
recipes, excellent taste and high quality. The KOI range is also exported to
the USA, Canada, UK, Switzerland and Australia, where the products have been
well accepted by consumers. The business plans to scale up exports in the
ensuing years.
The Company plans to rapidly scale up the Branded Packaged Foods business
drawing upon the agri-sourcing strength of the e-Choupals, cuisine expertise,
product development capabilities and branding, trade marketing and distribution
competencies to establish itself as the most trusted provider of food products
in the Indian market'.
Lifestyle retailing
The Company's Lifestyle Retailing business made good
progress during the year in both premium and popular segments of the branded
apparel market. Impressive gains were made in store productivity, sell through
rates, average realisations and supply chain efficiencies. The business also
commenced exports of garments leveraging the market opportunity arising post
dismantling of the quota regime.
During the year, the Company's portfolio of products in the premium segment
comprising the Classic' range of formal wear, Wills Sport' relaxed wear and
Wills Clublife' evening wear expanded its consumer franchise significantly.
Product availability was further enhanced through the expansion of the Wills
Lifestyle' chain of exclusive stores in high potential catchment malls. The
brand is now available in over 150 locations through exclusive brand outlets'
(EBOs) and shop-in-shops'.
A strong customer privileges programme, combined with emphasis on superior
visual merchandising and in-store services helped raise the quality of consumer
experience, leading to a substantial increase in consumer loyalty.
Product portfolio was augmented during the year with the introduction of
new offerings such as suits and jackets, leather and other accessories. The
Wills Lifestyle' range was further supplemented during the year with the launch
of Essenza Di Wills', an exclusive line of prestige fragrance products, at
select Wills Lifestyle' stores. The 16-SKU range for men and women, designed to
complement the Wills Lifestyle' offerings, currently comprises perfumes,
deodorants, body lotions, bathing bars, nourishing creams, shampoos, etc. These
products have met with encouraging response from discerning consumers.
The year also marked the launch of the Wills Lifestyle India Fashion Week'
(WIFW), billed as the country's most premier fashion event. The first WIFW
event, which was held in New Delhi featuring nearly 80 designers, was a
resounding success, further strengthening the brand's association with high
fashion and premium imagery. The business has also tied-up with leading
designers to create high-end fashion products to be retailed from the Wills
Lifestyle' stores.
In the popular Youth' segment, John Players' delivered a strong performance
during the year. The brand's association with superstar and youth icon Hrithik
Roshan, who has been signed up by the Company as the brand ambassador for John
Players' reinforced its style with a playful side' positioning. This
association has created a high buzz for the brand among its youthful target
audience, mobilising large trials and garnering enhanced consumer mind share.
Distribution was strengthened through stronger presence in key multi-brand
outlets' (MBOs) and rapid expansion of the network of EBOs. The brand is now
available in 80 EBOs and over 1500 MBOs. In the short span of time since its
launch, the brand has earned high industry recognition, winning the Most
Admired Shirt Brand of the Year' award at the Images Fashion Awards 2005.
In the area of apparel exports, the Company made a healthy beginning during the
year, establishing relationships with key customers. The business is in the
process of enhancing its manufacturing capacities to take full advantage of the
emerging growth opportunities. It is also engaged in developing long term
partnerships with high potential customers.
During the year the in-house product testing laboratory was granted ISO 17025
certification by the National Accreditation Board for Calibration and
Laboratories. In line with its commitment to world-class quality, the Company
launched Six Sigma' based improvement programmes for both products and
processes. The business continued to leverage its state-of-the-art master
facility' to develop superior products. It also scaled up manufacturing at the
outsourced just-in-time' facility with a view to servicing consumer preferences
more effectively and to improve inventory management. The Company continues to
enhance competencies by inducting international experts and domain specialists
in the areas of product design, garment engineering and fabric development with
a view to strengthening its competitive position.
Greeting, gifting and
stationery
The Company scaled ups the stationery business significantly
during the year. The sales volume of Classmate' notebooks trebled over that of
last year, making it the most widely distributed notebook brand across the
country. It has established itself as the quality leader in a short span of
time. The Alfa Plus' paper used in these notebooks is custom manufactured at
the Company's Bhadrachalam unit. Besides providing superior whiteness,
brightness and smoothness, this paper is also Elemental Chlorine Free (ECF),
imparting a unique value proposition to the brand. The brand franchise of
Classmate' was significantly enhanced by extending the Classmate Young Authors
Contest 2005'- a creative story writing competition - to 15 cities and introducing
the Classmate Young Artist Competition' in six metros, with an overall reach of
120,000 students across 4,000 schools. In line with its Citizen First'
philosophy, the Company contributes Re.1 to its social responsibility
initiatives for every notebook sold.
With the emergence of organized players in the market, the Rs.50000 millions
paper stationery industry is waking up to the presence of quality branded
offerings. The Company's Classmate' and Paperkraft' brands are well poised to
achieve leadership position in the notebook market. The business is also
planning to launch a mass-market range of notebooks leveraging the Company's
distribution strengths in smaller towns and rural areas, especially in markets
served by the e-Choupal and Choupal Saagar' networks.
The Greeting Cards segment continued to be impacted by the rapid growth of
mobile telephony and messaging services. Despite challenging market conditions,
the Expressions' brand of greeting cards established itself as the market
leader in multi-brand outlets across the country. Product range in the gifting
segment was augmented during the year with the launch of pop-up books, mini
books and three more variants of Regalia' - a premium collection of greeting
cards for the connoisseur.
The business has set up a creative design studio at Chennai and has installed a
digital asset management system to safeguard its intellectual property. The
business continues to partner with small-scale enterprises across the country
for effective sourcing. It continues to remain committed to aiding small-scale
units to enhance the quality of their products and processes. The business
enjoys ISO 9001:2000 certification in recognition of its quality systems and
processes.
Growing levels of literacy, favourable demographics, government led
education initiatives and improving quality consciousness are expected to drive
demand for branded notebooks. Accordingly, the Company plans to scale up the
stationery business significantly on the back of a superior and differentiated
product range and a strong distribution network.
Hotels
The hotel industry continued on its growth path during the
year on the back of the country's strong economic performance. Foreign tourist
arrivals continued to be buoyant, registering a robust growth of 13.5% during
the calendar year 2005 to touch 3.92 million. Consequently, foreign exchange
earnings from the tourism sector touched USD5.7 billion during 2005
representing a growth of 20% over the previous year. Besides generating
valuable foreign exchange, the tourism industry has a large economic multiplier
impact and provides significant employment opportunities. While the growth in
foreign tourist arrivals has been relatively strong over the last two years,
India's share remains a mere 0.5% of world tourism. The country is not able to
service even this miniscule share to full guest satisfaction due to
demand-supply mismatch and infrastructural inadequacies. It is estimated that
India needs 130,000 rooms to service the 5 million tourists expected to arrive
in 2007. Currently, the country has 103,800 rooms in the approved category of
hotels, leaving a substantial shortfall against the expected demand.
The potential of the tourism industry to contribute to India's economic growth
is increasingly being recognized in several policy initiatives. The healthy
increase of budgetary allocation for the Ministry of Tourism in recent years,
adoption of the open skies' policy to augment airline capacity, privatization
of the airports in New Delhi and Mumbai and the planned airport up gradation
projects across the country stand testimony to the Government's commitment to
this sector. However, heightened demand for land at suitable locations
especially from real estate players for multi-use development and the
consequent steep escalation in prices has emerged as a key challenge for hotel
companies in setting up greenfield projects.
The Company's hotels business posted yet another impressive financial
performance during the year with Segment Revenues growing by 36% to touch
Rs.7830 millions driven by improved occupancies and realizations across
properties. Gross Operating Profit (PBDIT) grew 64% over the previous year to
touch Rs.3170 millions during 2005-06, while Segment Results (PBIT) at Rs.2580
millions grew 83% over the previous year.
ITC Grand Central, the Company's second property in Mumbai, which was
commissioned in January 2005, posted an impressive performance to record a
positive bottomline in its first full year of operations. The business also progressed
a comprehensive renovation and product up gradation Programme during the year
in keeping with the strategy of maintaining the contemporariness of its
properties. Key initiatives during the year included renovation of guest rooms
and suites in ITC Hotel Windsor Sheraton and Towers, Bangalore, ITC Hotel
Kakatiya Sheraton and Towers, Hyderabad and ITC Hotel Maurya Sheraton and
Towers, New Delhi. The business implemented Six Sigma' Quality initiatives
across select properties with a view to further enhancing the service edge.
Buoyed by the impressive performance and the emerging opportunities in this
industry as discussed herein, the Company has embarked on an aggressive
investment led growth plan. The year marked the commencement of construction of
a new super-deluxe luxury hotel at Bangalore. The proposed hotel at Chennai is
at an advanced stage of architectural planning. Land at suitable locations at
Hyderabad, Delhi and other key centre is being identified.
The ITC-Welcomgroup chain, with its globally benchmarked levels of product and
service excellence and superior hoteliering capabilities is well positioned to
not only sustain its leadership position in the industry, but also to emerge as
the largest hotel chain in the country over the next few years.
Paperboards, paper and
packaging
The Paperboards,
Specialty Paper and Packaging segment recorded strong growth during the year
both in terms of sales and operating profits. As set out in the Segment Report
annexed as Schedule 20 to the Accounts, Segment Revenue grew by 21% to touch
Rs.18960 millions while Segment Results improved by 25.5% to Rs.3510 millions.
The segment generated strong operating cash flow of Rs.4670 millions.
The company has joint venture with the following:
˜
ITC
Filtrona Limited
ITC Filtrona maintained its market
leader in the Indian Cigarette filter industry with nearly 58% value share.
˜
King
Maker Marketing Inc., USA
King Maker Marketing Inc. (KMM), a
company registered in the State of New York, USA, has been enabling companys
foray into the US tobacco and FMCG market. KMM also provides market research
services for several clients.
˜
Maharaja
Heritage Resorts Limited
˜
CLI3L
e-Services Limited
The company has entered into Agreements with Ardath Tobacco
Company Limited, U.K., and Benson and Hedges (Overseas) Limited, U.K. both
subsidiaries of British American Tobacco (Holdings) Limited. U.K. also a
signatory to the said Agreements, for licensing, including manufacturing and
sale in India, of certain BATs International Brands to the Company.
MEMBERSHIP
˜
Confederation
of Indian Industry
Press Release:
ITC Shareholders
overwhelmingly approve merger proposal
November 20, 2004
The Calcutta High Court-convened meeting of the Shareholders of ITC Limited
took place on the 19th November, 2004 at the Science City, Kolkata, under the
Chairmanship of Justice G. N. Ray (Retired), appointed by the Hon'ble Court, to
consider a resolution for the amalgamation of ITC Hotels Limited and Ansal
Hotels Limited with ITC Limited. The result of the poll was overwhelmingly in
favour of the amalgamation with 99.99 per cent voting in favour of the
resolution.
The Chairman of the meeting declared that the resolution was
passed with the requisite majority.
(S H Venkatramani)
Head - Corporate Communications
ITC Centre, Gurgaon achieves Platinum Rating from the US Green
Building Council
Nov 16, 2004
ITC Centre, the futuristic office complex that ITC Limited is building in
Sector 32, Gurgaon, has been awarded the Platinum Green Building rating by
USGBC-LEED (U.S. Green Building Council - Leadership in Energy and
Environmental Design ). This is the highest rating in this category and ITC
Centre is the largest Platinum rated building in the world.
ITC is the first corporate house in
India to have achieved this unique international distinction.
The ITC Centre complex is being
constructed on a 2-acre plot of land. Its total built-up area is about 1,80,000
sq ft. It has a ground and three upper floors and two basements.
A few of the salient green features
incorporated in the building are; zero water discharge, 53% energy savings over
conventional building, 40% reduction in potable water use, use of treated gray
water for flushing and landscaping, Use of fly-ash in bricks and concrete, high
efficiency equipment, eco-friendly housekeeping practices and well designed
green education program.
In order to achieve the highest LEED
Rating for ITC Centre, extensive research and simulation studies were conducted
by the project team in consultation with CII, TERI, USGBC, Architects,
Engineering Consultants, Independent Commissioning Agency and the Shriram
Research and Test Centre. The design concept, scope and technical
specifications for the ITC Centre were developed to meet the unique and overall
intents of the green building. Accordingly, the building envelope, energy,
indoor air quality and water efficiency, materials and sustainability measures
were evaluated on the basis of simulation studies and optimized. In addition,
innovative ideas like green education and eco-friendly housekeeping practices
have been implemented. The building, which has been envisaged as exemplifying
modern classic architecture, will have a well articulated facade, roof and
specialized glazing with contemporary interiors and services, all of which
comply with relevant international standards.
In keeping with ITC's thrust on
protection of the environment and enrichment of ecology, the Company decided to
seek Green Building Certification for this project by an international certification
agency of stature. ITC then identified USGBC - LEED as the leading
certification authority. The building rating system of USGBC-LEED was
established in USA in 1993. It focuses on design and construction practices
that significantly reduce or eliminate the negative impact of buildings on
their occupants and on the environment on certain parameters like energy
efficiency and renewable energy, the quality of the indoor environment,
conservation of materials and resources, safeguarding water and water efficiency,
sustainable site planning and innovation and design processes. The ratings are
four: Platinum, which is the highest and the best, followed by Gold, Silver and
Certified. Out of the 150 projects around the world that USGBC-LEED has
certified so far by, only 7 have been awarded this prestigious platinum rating.
The actual rating process is based on the submission of all design documents,
simulation, construction and operating intent followed by an audit and review
process. The entire process took over a year. The facility measuring 1,81,000
sq. ft at Gurgaon has been built on a two-acre plot to accommodate various
businesses of ITC and the Welcome group Management Institute. ITC has played a
trail-blazing role in India's corporate sector in preserving and enriching the
environment through sustained induction of environment-friendly technology and
work habits. The construction of this sustainable infrastructure is yet another
demonstration of the Company's continued thrust on environment management.
ITC is the first corporate
organizations in India to launch 'Triple Bottom Line' reporting. The Company
now reports performance on not only its financial capital, but also
environmental and social capital. The USGBC-LEED Award was given to ITC during
the international Green Building Convention held in Portland, Oregon, USA on
the 11th of Nov 2004. The convention was attended by more than 6000 building
professionals from 15 countries.
In the competitive world of commodity trading,
India has two distinct advantages - the largest arable land and diverse
climatic conditions, favourable for a wide range of agri products. It was in
such a scenario that ITC's International Business Division was created to offer
the world the best of India's produce.
Perspectives
Unlike other trade players, they are focused on
transforming their commodity export business from being a price sensitive and
cash leveraged trading operation to a knowledge based and customer focused
enterprise. With an objective to sustain and strengthen their stringent quality
standards, efficient execution of contracts and accurate market information,
they have become the most reliable business partners with their customers.
Mission
The mission of IBD is to become the first choice
supply chain partner for "select" international customers accessing
the finest Agri and Aqua product offerings from India.
Ingredients for a Quality Story
Managed by a team of highly qualified
professionals, backed by sound experience and product knowledge skills, ITC-IBD
is equipped to deliver quality products and services. Their range of agri
products is procured from the most fertile of Indian farmlands. This includes
Soyabeans from Madhya Pradesh, Coffee from Coorg in Karnataka, Basmati Rice
from the Northern Plains, Groundnuts and Sesame Seeds from Gujarat to name just
a few.
All their products are carefully cleaned
processed and hygienically packed to maintain their wholesome goodness. At
every stage - buying, milling, state-of-the-art processing, storage, loading
and despatch - a high standard of quality control is maintained. This ensures
that their customers get value added products with their natural flavour, taste
and aroma intact.
Awards and Recognition
Recognising ITC-IBD's effort, the Government of
India has conferred on it the coveted "Golden Star Trading House"
status. IBD has earned many awards from the Government and various trade
organisations during the past decade for being one of the topmost exporters in
soyameal, rice etc. This impressive track record symbolises IBD's unbeatable
Sourcing and Execution Strength.
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 Intl 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 companys 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. 44.06 |
|
UK Pound |
1 |
Rs. 86.34 |
|
Euro |
1 |
Rs. 57.46 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
8 |
|
OPERATING
SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--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 |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
This
score serves as a reference to assess SCs 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 |
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 |