MIRA INFORM REPORT
|
Report
Date : |
15.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
EVEREADY INDUSTRIES INDIA LIMITED |
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Registered
Office : |
1,
Middleton Street, Kolkata – 700 071, 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 : |
20.06.1934 |
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Com.
Reg. No.: |
21-7993 |
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CIN
No.: [Company
Identification No.] |
L31402WB1934PLC007993 |
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TAN
No.: (Tax
Deduction & Collection Account No.) |
CALE01744B |
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PAN
No.: (Permanent
Account No.) |
AAACE5778N |
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Legal
Form : |
A public limited liability company. The company’s shares
are listed on the Stock Exchanges |
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Line
of Business : |
Manufacturing
of Dry Cell Batteries, Flashlights, Electrolytic Manganese Dioxide, Cinema
Arc Carbons and Black Tea. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered
normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum
Credit Limit : |
USD
25000000 |
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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 and well established company having two segments of business namely
production and sale of batteries, flashlights and packet tea and production,
sale and export of bulk tea, from the tea estates owned by the company. Trade
relations are reported as fair. Payments are reported as correct and as per
commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
1,
Middleton Street, Kolkata – 700 071, West Bengal, India |
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Tel.
No.: |
91-33-22882147/3950
/ 22476922 |
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Fax
No.: |
91-33-22884059 |
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E-Mail
: |
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Website
: |
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Head
Office : |
2, Rainey Park, Kolkata – 700 019, West Bengal |
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Tel.
No.: |
91-33-24764995 / 24751961 |
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Fax
No.: |
91-33-24753673 |
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E-Mail
: |
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Factory : |
Manufacturing locations:
ò
BATTERY MANUFACTURING UNITS: National Carbon Plant ·
5,
Rustomjee Parsee Road, Cossipore, Kolkata – 700 002, West Bengal ·
1,
Taratola Road, Kolkata – 700 088, West Bengal ·
1075,
Tiruvottiyur High Road, Chennai – 600 019, Tamil Nadu ·
Industrial
Area, Moula Ali, Hyderabad – 500 040, Andhra Pradesh ·
B-1,
Sector-80, Noida Phase-II, Gautam Budh Nagar - 201 305, Uttar Pradesh – Battery Plant
ò
PLASTIC PROCESSING UNIT Plastics Processing Plant, B-2, Sector-80, Phase-II, District Gautam Budh Nagar – 201
305, Uttar Pradesh ò
FLASHLIGHT MANUFACTURING UNIT: The Eveready Flashing Plant, Mill Road, Aishbaug, Lucknow – 226 004, Uttar Pradesh ò
METALS & ALLOYS MANUFACTURING
UNITS: ·
Metals
& Ores Plant P-4, Transport Depot Road, Kolkata – 700 088, West Bengal ·
Metals
& Ores Plant 123/2 & 3 Ponneri Road, Vaikadu Village, Manali New
Town, Chennai - 600103 ò
ELECTROLYTIC MANGANESE DIOXIDE
MANUFACTURING UNIT: Electrolytic Manganese Dioxide Plant Plot D-4, Trans Thane Creek, Industrial Area, Thane
Belapur Road, Turbhe, Navi Mumbai – 400 705, Maharashtra ò
MACHINERY & PARTS
MANUFACTURING UNIT: Central Machine Shop Developed Plot No. 1, Industrial Estate, Guindy, Chennai –
600 032, Tamil Nadu Central Machine Shop 1075 Tiruvottiyur High Road,
Chennai - 600 019 Packet
Tea Factory Chuapara, Dist. Jalpaiguri, West
Bengal |
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Overseas representative |
15, Scotts Road, # 03-01, Thong Teek Building, Singapore –
228 128 |
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Tel.
No.: |
91-65-22359290/22359844 |
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Fax
No.: |
91-65-22357950 |
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E-Mail
: |
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Branches
: |
Ahmedabad Shop No.126/1-6,Shri
Raghuvir, Estate,National Highway No.8, Aslali,Ahmedabad-382425 Bangalore 21D,2nd
Cross,1st.Stage, Peenya Industrial Area, Banglore - 560058 Cuttack Plot no.2658,AT/PO -
Bhanpur, Cuttack - 753011 Chennai 748, Anna Salai,
Chennai - 600035 Cochin V/759, Edapally
Muvattupuzha Road, Club Junction, Edapally, Cochin 682 024 New Delhi UCO Bank Building,
5,Parliament Street, New Delhi - 110001 Guwahati Ashirwad, House No.
291, Juri Path, Zoo Narangi Road, Guwahati - 781024 Hyderabad D.NO.7-20/65, A -
Block, Opp. Eenadu Press, Moosapet, Sanathnagar, Hyderabad - 18 Indore 2-10,T.T.Nagar, Dewas
Naka, Indore-452010 (MP) 91-731-5021719,
4065960 Jaipur F-527,Road No.6, VKI
Area, Jaipur - 13 Kolkata Jeevan Deep
Building,3rd. Floor, 1, Middleton Street, Kolkata - 700071 Lucknow 6/A, Jeet Palace,Sapru
Marg, Lucknow - 226001 Mumbai Laxmi Building, Ist.
Floor, Sir P.M.Road, Fort, Mumbai - 400001 Patna S.P.Verma Road, Patna
- 800001 |
DIRECTORS
|
Name : |
Mr. B. M.
Khaitan |
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Designation
: |
Chairman |
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Qualification
: |
B. Com. |
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Date
of Appointment : |
01.04.2000 |
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Previous
Employment |
The
Bishnauth Tea Company Limited – Chairman & Managing Director |
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Name : |
Mr.
Deepak Khaitan |
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Designation
: |
Executive
Vice Chairman and Managing Director |
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Qualification
: |
B. Com
MBA (Geneva) |
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Date
of Appointment : |
01.06.1999 |
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Previous Employment |
The
Bishnauth Tea Company Limited- Manager T.E. |
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Name : |
Mr. A.
Roy |
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Designation
: |
Whole
Time Director |
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Qualification
: |
B. Tech.,
(Hons) |
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Date
of Appointment : |
02.04.1971 |
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Previous Employment |
GEC of
India Limited-Executive Assistant |
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Name : |
Mr. V. Bhandari |
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Designation
: |
Director |
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Name : |
Mr. Sanjiv Goenka |
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Designation
: |
Director |
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Name : |
Mr. P. K. Kaul |
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Designation
: |
Director |
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Name : |
Mr. A. Khaitan |
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Designation
: |
Director |
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Name : |
Mr. Bhaskar Mitter |
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Designation
: |
Director |
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Name : |
Mr. Diwan Arun Nanda |
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Designation
: |
Non-Executive Directors |
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Name : |
Mr. P. H. Ravikumar |
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Designation
: |
Nominee of ICICI Bank Limited |
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Name : |
Mr. A. Roy |
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Designation
: |
Wholetime Director |
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Name : |
Mr. S. Saha |
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Designation
: |
Wholetime Director |
KEY EXECUTIVE
|
Name : |
Mrs. T. Punwani |
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Designation
: |
General Manager Legal &
Company Secretary |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Indian
Promoters |
25163815 |
35.07 % |
|
Foreign
Promoters |
3930866 |
5.48 % |
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Persons
acting in concert |
572566 |
0.80 % |
|
Mutual
Funds and UTI |
2966304 |
4.13 % |
|
Banks,
Financial Institutions Insurance,
Companies (Central/State Government Institutions / Non-government
Institutions) |
4232116 |
5.90 % |
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FIIs |
20369048 |
28.39 % |
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Private Corporate
Bodies |
4317114 |
6.02 % |
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Indian
Public |
9725362 |
13.55 % |
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NRIs/OCBs |
470069 |
0.66 % |
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TOTAL |
71747260 |
100.000 % |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturing
of Dry Cell Batteries, Flashlights, Electrolytic Manganese Dioxide, Cinema
Arc Carbons and Black Tea. |
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Products
: |
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PRODUCTION STATUS
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Batteries
[2] |
Million pcs. |
1624.5 |
1350 |
1239.56 |
|
Flashlight
Cases [2] |
Million pcs. |
23 |
12.5(3) |
13.58 |
|
Carbon
Electrodes [2] |
Million Pcs. |
470 |
580 |
619.59 |
|
Castings,
Hard facing & Tube rods |
Tonne |
150 |
150 |
1.53 |
|
Electrolytic
Manganese Dioxide |
Tonne |
3940 |
5000 |
1128.25 |
|
Machinery
[2] |
Nos. |
50 |
50 |
- |
|
Machinery
Parts [2] |
Nos. |
500 |
500 |
-- |
|
Moulded
Plastic Components [2 & 4] |
Tonne |
1500 |
375 |
175.67 |
|
Packet
Tea |
Tonne |
Not Applicable |
9000 |
7471.13 |
GENERAL INFORMATION
|
No. of
Employees : |
5182 |
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Bankers
: |
v
Allahabad
Bank v
American
Express Bank Limited v
Central
Bank of India v
Citibank
N. A. v
HDFC
Bank Limited v
ICICI
Bank Limited v
Indian
Bank v
Standard
Chartered Grindlays Bank Limited v
State
Bank of Bikaner and Jaipur v
State
Bank of India v
UCO
Bank v
United
Bank of India |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors
: |
S. B.
Billimoria & Company Chartered Accountants |
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Associates/Subsidiaries
: |
v
Williamson
Magor Group v
Murablack
India Limited v
McNally
Bharat Engineering Company Limited v
Williamson
Financial Services Limited v
Worthington
Pump (India) Limited v
Kilburn
Engineering Limited v
Light
Metal Industries Limited v
India
Foils Limited v
Standard
Batteries Limited v
Kilburn
Reprographics Limited v
Energizer
India Limited v
Babcock
Borgig Limited v
Dewrance
Macneill and Company Limited v
Macneill
Engineering Limited v
Kilburn
Electricals Limited v
McNama
Consultant Limited v
Veco
India Limited v
Project
India Blend Limited v
Dakorji
Properties Limited v
Deutsche
Babcock Limited and others SUBSIDIARIES v
Nepal
Battery Company Limited v Dufflaghur Investments Limited |
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Membership:
|
Confederation
of Indian Industry |
CAPITAL STRUCTURE
Authorized
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
111560000 |
Equity Shares |
Rs. 5/- each |
Rs. 557.800 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
71747260 |
Equity Shares |
Rs. 5/- each |
Rs. 358.736 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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|
SHAREHOLDERS
FUNDS |
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|
|
|
|
1] Share
Capital |
358.736 |
278.895 |
557.791 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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3]
Reserves & Surplus |
5983.232 |
4157.083 |
6605.625 |
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|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
6341.968 |
4435.978 |
7163.416 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
3471.656 |
4961.444 |
7080.823 |
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|
2]
Unsecured Loans |
316.992 |
125.239 |
373.146 |
|
TOTAL
BORROWING
|
3788.648 |
5086.683 |
7453.969 |
|
|
Deferred
Payment Liability |
0.000 |
0.000 |
0.000 |
|
|
Deferred
Tax Liability (Net) |
60.459 |
26.976 |
47.126 |
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|
|
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|
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TOTAL
|
10191.075 |
9549.637 |
14664.511 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
8594.763 |
8925.941 |
12518.651 |
|
Capital work-in-progress
|
214.032 |
102.374 |
75.317 |
|
|
|
|
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INVESTMENT
|
474.687 |
14.729 |
179.187 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
2027.643
|
1459.856
|
1216.442 |
|
|
Sundry Debtors
|
446.176
|
247.353
|
376.454 |
|
|
Cash & Bank Balances
|
65.926
|
114.725
|
153.596 |
|
|
Other Current Assets
|
0.000
|
0.000
|
306.008 |
|
|
Loans & Advances
|
486.571
|
287.207
|
2430.583 |
Total Current Assets
|
3026.316
|
2109.141
|
4483.083 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
1659.509
|
1284.644
|
1716.137 |
|
|
Provisions
|
472.629
|
321.527
|
1082.274 |
Total Current Liabilities
|
2132.138
|
1606.171
|
2798.411 |
|
Net
Current Assets
|
894.178
|
502.970
|
1684.672 |
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES
|
13.415 |
3.623 |
206.684 |
|
|
|
|
|
|
|
TOTAL
|
10191.075 |
9549.637 |
14664.511 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
8109.468 |
6808.307 |
8931.500 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
994.943 |
482.958 |
(93.954) |
Provision for Taxation
|
198.369 |
19.849 |
(90.127) |
Profit/(Loss) After Tax
|
796.574 |
463.109 |
(3.827) |
|
|
|
|
|
Export Value
|
95.998 |
58.087 |
506.364 |
|
|
|
|
|
Import Value
|
776.540 |
666.301 |
420.298 |
|
|
|
|
|
Total Expenditure
|
7116.992 |
6325.349 |
9025.454 |
QUARTERLY
|
PARTICULARS |
30.06.2006 [1st Quarter] |
30.09.2006 [2nd
Quarter] |
31.12.2006 [3rd Quarter] |
|
Sales Turnover |
2266.600 |
1935.200 |
1901.600 |
|
Other Income |
07.700 |
02.400 |
04.000 |
|
Total Income |
2274.300 |
1937.600 |
1905.600 |
|
Total Expenditure |
1953.800 |
1751.400 |
1902.100 |
|
Operating Profit |
320.500 |
186.200 |
03.500 |
|
Interest |
105.800 |
104.800 |
96.600 |
|
Gross Profit |
214.700 |
81.400 |
[93.100] |
|
Depreciation |
53.100 |
53.600 |
37.000 |
|
Tax |
49.000 |
13.000 |
03.600 |
|
Reported PAT |
121.800 |
20.500 |
[140.400] |
200606
Quarter 1 –
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 12 Complaints disposed off
during the quarter 12 Complaints unresolved at the end of the quarter Nil 1.
The Company is engaged in the business of manufacture and sale of dry cell
batteries, flashlights and packet tea as well as sale of mosquito coils which
come under a single business segment known as Fast Moving Consumer Goods
(FMCG). 2. Trial proceedings before the Magistrate, Bhopal, on the modified
charges framed under the directions of the Supreme Court that commenced in
September 1997, are yet to be concluded. As per advice by legal counsel,
allegations against the Company are without any firm basis and the possibility
of proceedings against the Company succeeding is extremely remote. Since the
charges are very likely to fail, no provision is necessary at this stage. 3. On
May 11, 2006, 5,00,000 shares of Rs 5/- were allotted on conversion of warrants
and the capital increased to Rs 361.236 million. 4. The unaudited financial
result for the quarter ended June 30, 2006 do not take into consideration the
effect of adjustments to be carried out in accordance with the requirements of
accounting standard 15 (received) Employee Benefits-as the required information's
and valuation are yet to be made available by the actuary. 5. Figures of the
previous periods have been regrouped /rearranged wherever considered necessary.
6. The above statement which was subject to a limited review by the Auditors
was reviewed by the Audit committee and taken on record by the Board of
Directors of the Company at its meeting held on July 21, 2006.
200609
Quarter 2 –
1.The company is engaged in the business of
manufacture and sale of dry cell batteries, flashlights and packet tea as well
as sale of mosquito coils which come under a single business segment known as
Fast Moving Consumer Goods (FMCG). 2.Geographical Segment- Sales within India -
Rs.4660.552 Millions Sales outside India - Rs.89.839 Millions 3.Investor
grievances report- No of investor grievances pending at the beginning of the
quarter-NIL No of investor grievances received during the quarter-1 No of
investor grievances replied/resolved during the quarter-1 No of investor
grievances pending at the end of the quarter-NIL 4.Trial proceedings before the
Chief Judicial Magistrate, Bhopal on the modified changes framed under the
directions of the Supreme Court that commenced in September 1997 are yet to be
concluded. As per advice of legal counsel, allegations against the company are
without any firm basis and the possibility of proceedings against the company.
Succeeding is extremely remote. Since the charges are very likely to fall, no
provision is necessary at this stage. 5. On September 27 2006, 440000 shares of
Rs.5/- were allotted on conversion of warrants and the paid up capital
increased to Rs.363.436 Millions. 6.The unaudited financial results for the
quarter and half year ended 30, September 2006 do not take into consideration
the effect of adjustments to be carried out in accordance with the requirements
of Accounting Standard 15 (Revised) - Employee Benefits - as the required
information and valuation are yet to be made available by the actuary. 7.
Figures of the previous periods have been regrouped/rearranged wherever considered
necessary.
200612
Quarter 3 –
1. The company is engaged in the business of
manufacture and sale of dry cell batteries, flashlights and packet tea as well
as sale of mosquito coils which come under a single business segment known as
Fast Moving Consumer Goods (FMCG). 2. Geographical segment- Sales within India
- Rs.6713.362 Millions Sales outside India - Rs.180.218 Millions 3.Effective
1st April 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, the net additional opening liability as on 1st
April 2006 aggregating to Rs.2.394 Millions (net of Deferred Tax Asset of
Rs.1.215 Millions) in respect of various employee benefits has been adjusted
against the opening balance of general reserves. 4. Investor grievances report-
No. of investor grievances pending at the beginning of the quarter-NIL No. of
investor grievances received during the quarter-2 No. of investor grievances
replied/resolved during the quarter-2 No. of investor grievances pending at the
end of the quarter-NIL 5.Trail proceedings before the Chief Judicial
Magistrate, Bhopal on the modified changes framed under the directions of the
Supreme Court that commence in September 1997 are yet to be concluded. As per
advice of legal counsel, allegations against the company are without any firm
basis and the possibility of proceedings against the company succeeding is
extremely remote. Since the charges are very likely to fail no provision is
necessary at this stage. 6. Figures of the previous periods have been
regrouped/rearranged wherever considered necessary. 7. The above statement has
been subject to a limited review by the statutory auditors reviewed by the
audit committee and taken on record by the board of directors of the company at
its meeting held on January 29 2007.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt
Equity Ratio |
1.10 |
2.28 |
3.04 |
|
Long Term
Debt Equity Ratio |
0.83 |
1.62 |
2.04 |
|
Current
Ratio |
0.87 |
0.83 |
0.87 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed
Assets |
0.77 |
0.66 |
0.81 |
|
Inventory
|
4.74 |
5.57 |
8.10 |
|
Debtors |
23.85 |
23.91 |
24.58 |
|
Interest
Cover Ratio |
1.45 |
1.59 |
0.83 |
|
Operating
Profit Margin (%) |
11.11 |
11.19 |
9.69 |
|
Profit
Before Interest and Tax Margin (%) |
8.90 |
8.71 |
6.38 |
|
Cash Profit
Margin (%) |
4.16 |
5.72 |
3.00 |
|
Adjusted
Net Profit Margin (%) |
1.94 |
3.23 |
-0.30 |
|
Return on
Capital Employed (%) |
8.68 |
7.28 |
6.19 |
|
Return on
Net Worth (%) |
3.97 |
8.76 |
-1.15 |
STOCK PRICES
|
Face Value |
Rs.5/- |
|
High |
Rs.76.00/- |
|
Low |
Rs.74.50/- |
LOCAL AGENCY FURTHER INFORMATION
History:
Eveready
Industries is a leading player in Indian dry cell batteries market.
Incorporated in 1934 the company was - formerly a subsidiary of Union Carbide
Corporation, US and was subsequently taken over by B M Khaitan and the Williamson
Magor group of companies. The name of the company was changed to Eveready
Industries LIMITED eleven years after its Bhopal plant was involved in one of
the world's worst industrial disasters.
Eveready Industries manufactures and markets Carbon Zinc Batteries,
Rechargeable Batteries, Alkaline Batteries, Flashlights & Packet Tea. The
Company was the first to introduce batteries in India in 1905. The Company has
completed 100 years of its services and leads the market, in the segment of Dry
Cell Batteries and Flashlights with a market share of 46%.EIL is the world's
third largest producer of Carbon Zinc Batteries and selling more than a billion
units a year. The company is the owner of popular drycell brand 'Eveready' and
markets Carbon Zinc Batteries, Rechargeable Batteries, Alkaline Batteries &
full range of brass,aluminum and plastic flashlights under this brandname in
India. The packet tea is marketed under the brand name 'Greendale'.
The capacity of the company to produce batteries stood at 1350 Million Pcs as
on Mar 31, '05 and 12.5 Million Pieces for flashlights including the expansion
carried out during the fiscal 2004-05. EIL entered alkaline batteries segment
in 2001-02 by launching alkaline batteries under its own umberlla brand 'Eveready'.
But before that in 1995 the company through Energizer India Private Limited, a
50:50 JV between EIL and Ralston Purina Overseas Battery Company of US,
manufactures reowned Energizer brand of alkaline batteries in India. In 1995, a
MoU was signed with Gold Peak Industries, Hong Kong, to develop rechargeable
Ni-Cd and Ni-Mg batteries in India. The company has already commenced marketing
miniature watch batteries. During 1999-2000, the company commissioned a new
poly sleeve jacketed battery line at Camperdown Works at Calcutta.
EIL battery plant and metal processing plant at Calcutta, as well as the
electrolytic manganese dioxide plant at Bombay have received the ISO 9002
certification.
Since 1996-97 the company under goes series of mergers and demergers. In
1996-97, McLeod Russel India (MRIL) and Faith Investments were amalgamated with
the company. The business of MRIL is being carried on by the company as its tea
division in the trading name of Mcleod Russel. Later Bishnauth Tea Company was
amalgamated with Eveready Industries India Limited And recently the company
demerged its Bulk Tea division to McLeod Russel India Limited (formely Eveready
Company India Limited, a Company floated to facilitate demerger) effective
April 1, 2004.
The company has decided to set up a factory in Uttaranchal for the manufacture
of dry cell batteries with a capacity of 400.000 Millions pieces per annum at
an estimated investment of Rs.600.000 Millions .The project is envisaged to be
implemented before September 2006.
The company has shifted its entire manufacturing facilities at Guindy, Chennai
to its another existing unit at Chennai on Tiruvottiyur High Road. The
integrated plant will have a capacity of upto 450 Million batteries per annum.
As a result of this shifting, 8.39 acres of prime land at Guindy will be
released and the company has entered into an agreement with Khivraj TechPark
Limited of Chennai for development of this site as a building complex
particularly suitable for the Information Technology Sector, having a
Information Technology sector, having a built-up area in excess of 10,00,000
Sq.ft. and build at a cost of the developer company Khivraj Techpark but
towards consideration for the land the copany will in return gets an upfront
payment of Rs.250.000 Millions and 20% of the built-up area together with
proportionate car parking spaces. Williamson Magor & Co Limited was ceased
to be associate from 10th January 2005.
Fixed
assets
v
Goodwill
v
Estate
and development
v
Land
freehold
v
Patents/trade
marks
v
Land
leasehold
v
Buildings
v
Plant
v
Machinery
v
Equipments
v
Motor
and other vehicles
v
Furniture
v
Fixtures
v
Office
appliances
The
company is in trade terms with :
- K. L. Engineering Works
- D. Kapur Private Limited
- Fork Truck Services Private
Limited
- Indian Union Manufacturers
Private Limited
- Arora Industrial Products
- Monarch Plastics
- Reliance Instruments
- New Kripal Engineering Works
- Precious Trading Company
- Alok Industries
- Jyoti Test House
- Nagpur Pulverisers &
Minerals
- New Pack Plastics Private
Limited
- Techmate Engineering
- Asiatic Chemicals Industries
- EssVee Precision Tools
- Hindustan Spring Industries
- J. K. Industries
- Kasturi Classic Industries
- Kalpana Engineering Works
- Mahalakhsmi Engineering
Services
- Multitech Engineers
- Prompt Tech Engineers
- Sekar Industries
- Collets India
- Macro Engineering
- S. R. Foundries
- J. R. industrial Heaters
- Popular Tool Makers
- Push Up Tool Udyog Private
Limited
- S. P. Industries
- Trishia Gear Industries
- United Bearing Company
- V. S. Engineering Works
- Tan Tech Industries
- Balaji Engineering Works
- J. P. Ghosh & Company
- Kevin Enterprises
- Nath Peters Hygene Limited
- Prince Printers
- Sri Satya Machine Tools
- Sri Sai Electronics
- AB Packaging Works
- Concord Containers Private
Limited
- Chetana Laminates Private
Limited
- Chetana Packaging
Industries
- Deshal Minerals
- Lakshmi Industries
- Sindhu Packaging Solutions
- Lokenath Industries
- Advanced Electronics
- Asian Engineering &
Services
- Balaji Offset Printers
- Elecint Automation
- En Pro Hitech Distributors
- Habasit Laloka Private Limited
- Intech Aircon Marketings
- R. Peer Khan
- Shree Systems Enterprises
- Sri Kali Electronics
- Sahani Metals Craft Private
Limited
- Minerva Packaging Products
- Sati Industries
- Amutham Paper Cutting Works
- Hitech Lamination Films Private
Limited
- Jaishree Packaging
- Prudent Pruners
- Shetron Limited
- Shridevi Pulverising Mill
- Mahalakshmi Engineering
Services
- Rollwell Bearings
- Abhaya Precision Industries
Private Limited
- B. D. Engineering Works
- Sarkar Industries
- Ambica Chemicals &
Industrial Corporation
- Wengal Corrugated Gum
- Sonu Machine Tools Apparatus
- Metores Engineering Corporation
- Opto Instruments Private
Limited
- Power Management
- Applied Data Logix
- C. M. HO & Company
- Continental Engineering Company
- Hallmark Irrigation Equipments
Private Limited
- Kamakhya (India) Limited
- Vikram Forging & Allied
Industries Limited
- Aluminium Industries (Assam)
Private Limited
The company has been accredited with ISO 9002 Certification.
Operational
Review
Batteries and Flashlights
The
Company registered value growth of 12% in dry battery sales during the year
under review. As per available data, the dry battery industry had only a
marginal growth of 2.1% by volume (Source: AC Nielsen).
The value growth for the Company was contributed by both the volume growth at a
level higher than the industry as well as price growth. As a result of sales
growth at higher than the market growth rate, the Company ended up with an
estimated market share of 47.2% in the year under review as compared to 45.6%
in the previous period (Source: AC Nielsen). This was the 6th consecutive year
when the Company improved its market share.
The pillars behind the Company's sustained good performance continue to be its
fundamental strengths on distinct quality edge, penetrative distribution and
effective marketing.
Both battery and flashlights businesses, however, saw unprecedented squeeze on
margins on account of very steep input cost increases. Special mention needs to
be made of zinc which is used for the manufacture of both battery and a major
segment of flashlights and constitutes over 30% of the raw material cost of
these two businesses. This metal was in a steep bull run during the year under
review.
The Company took a series of pricing actions whereby the above adverse impacts
were passed on to the market. However, since the input costs - especially that
related to zinc - were rising continuously, there were time lags between
incurring the increased costs and consequent implementation of pricing actions,
in line with the supply chain throughput. This time lag contributed to the loss
of Rs.350 Millions in zinc alone during the year and a total of Rs.480 Millions
for all materials (about 53% of PBDIT from Operations). Had this not been for
such adverse impact, the PBDIT margins would have been significantly
higher.
The growth in battery sales has contributed to capacities being in near full
usage. The Greenfield project proposed at Uttaranchal, to augment capacity, is
currently under construction in full swing. This capacity is for the `AA'
segment.
Capacities are also being planned for the `D' segment - for both Bare Bottom as
well as False Bottom batteries. Work is already under way towards putting up
such capacity in the existing plant locations.
The manufacturing operations of the Company continued to focus on total quality
management, safety, energy conservation and cost control. This helped the
Company in achieving manufacturing excellence, which manifested in wider
recognition reflected in the following awards:
1. Two of the Company's manufacturing facilities at Kolkata received CII
Eastern Region Productivity Awards, given for significant and sustained
improvement in productivity every year. These received the first and second
prizes.
2. Quality Circles of Hyderabad and Kolkata units won awards in state, regional
and national level competitions held by CII and QCFI.
The Cossipore unit at Kolkata was certified for ISO 14000 and OSHAS 18000
management systems. With this, four units of the Company are now OSHAS 18000
certified and all units of the Company have ISO 14000 certification except for
one unit which has ISO 9000 certification.
The Company's EMD (a raw material for dry batteries) manufacturing operations
at Thane, Maharashtra became completely un-remunerative on account of higher
quality imported EMD being available in the market for battery manufacturing at
costs lower than the Company's EMD manufacturing costs. As a measure of cost
protection, the Company has decided on suspension of EMD operations and has put
in place actions by which the manufacturing facilities will be closed from the
close of March 31, 2007.
Packet Tea
The packet tea business of the Company continued to leverage the wide and deep
national distribution reach. The business had a value growth of 15.3%, which
was mainly contributed by a very healthy volume growth of 17.8%. The market
continues to be severely competitive. However, the Company remains focused on
this business as a driver for revenue growth.
Mosquito Coil
During the year under review, the Company diversified its product portfolio
into a new product range, viz., mosquito repellents. This is in line with the
Company's plans to grow organically in newer FMCG products using its
distribution chain. Mosquito coils are the first products in this range, which
were launched in 2 states - Assam and West Bengal - in January 2006.
The criterion applied for the selection of this product range included the
large size of the mosquito repellent market - given India's perennial problems
with mosquito and attendant diseases. Large-scale usage of coils in the rural
mass market also was of particular interest, where the Company's distribution
network is extremely strong. Initial response to the launch was encouraging and
this segment will offer handsome revenue growth and profitability for the
Company in future.
Real Estate
The Company operates its various manufacturing units at major cities, sitting
on lands which are of considerable value. It was felt that relocating
manufacturing operations from such valuable properties would unlock value for
the Company. With this principle the Company relocated its manufacturing
facilities from one of its locations at Chennai and liberated the space to
initiate development. The Company had received Rs.250 Millions on handing over
the land for such development in the previous year. In the year under review,
it realized a further Rs.720 Millions towards pre-selling of the space allotted
to the Company in such development.
The Company is now committed to sustain efforts in this area and will initiate
similar developments at the other such properties and will maximize returns
from such activities.
Prospects
There are enough indications which point to a sustainable GDP growth in excess
of 8%. The Company offers products which are at the base of the hierarchy of
consumer needs. Thus dry batteries, flashlights, packet tea and mosquito coils
are the first few items of consumption as new people come to consumerism and people
with increasing income levels can afford higher consumption. The FMCG market
continues to show signs of robust growth and the Company is confident that it
will continue to ride this robustness.
The Company has the two essential assets required of a FMCG operation, viz., a
strong brand and a penetrative distribution. It is thus poised to take full
advantage of the favorable market conditions.
The only cause for some concern at this stage appears to be the continuing bull
run of zinc. Despite several price increase actions in the recent past, the
uptrend of zinc seems to continuously beat such actions. The upside in zinc
does not seem to have been fully exhausted and the Company is prepared to see
some more action on this front and is ready to meet such contingencies through
pricing and cost conservation measures - on a proactive basis.
The Company's Greenfield project at Uttaranchal is progressing as per plan and
is well in position to commence production before March 2007, so as to be able
to avail of the tax and excise duty benefits.
Issue of Global Depository
Receipts
During the year under review, the Company successfully issued Global Depository
Receipts (GDRs). The total amount issued was US $ 33 million with 1,59,68,258
GDRs represented by 1,59,68,258 fully paid up equity shares of Rs.5/-, at an
issue price of Rs.95/- (US $ 2.066) for each such share. The Company has also
received the listing approval for the abovementioned shares. Proceeds on this
account were utilized mainly to pay down debt.
Issue of Convertible Warrants on
preferential basis
During the year under review, the Company issued and allotted 67,50,000
Convertible Warrants on a preferential basis to 17 proposed allottees on
October 5, 2005. A sum of Rs. 6,41,25,000/- in the aggregate being 10% of the
price of the underlying equity shares @ Rs. 95/- per share was received from
the proposed allottees. Proceeds on this account were mainly utilized to repay
debt. Subsequently, one of the allottees exercised part of its option so as to
convert 5,00,000 Convertible Warrants out of the 55,65,000 Convertible Warrants
held by it and consequently 5,00,000 equity shares of Rs. 5/- each at a premium
of Rs. 90/- per share i.e. at an aggregate price of Rs. 95/- per share has been
allotted to the said allottee on May 11, 2006.
Accordingly, the share capital of the Company as at May 11, 2006 stands
increased to Rs.36,12,36,300/- represented by 7,22,47,260 equity shares of Rs.
5/- each. Necessary application for listing of the abovementioned shares as
allotted is in process.
Subsidiary Company
The Company and its nominees acquired the shares of Powercell Battery India
Limited (formerly known as BPL Soft Energy Systems Limited), transfer whereof
was completed on November 23, 2006. Consequent to this, Powercell Battery India
Limited (PBIL) became a wholly owned subsidiary of the Company with effect from
that date.
The consolidated accounts presented under this Annual Report include the
financial numbers of PBIL for the period November 23, 2005 to March 31, 2006.
The statement under section 212(3) of the Companies Act, 1956 is
attached.
PBIL is the fourth largest player in the battery market. It has come to this
level within a very short period of time and has built up a distribution
network which is deep and penetrative. Acquisition of PBIL makes the combined
market share of the dry battery market with the Company a very formidable one.
As a result, this will also allow the Company better pricing power.
PBIL's performance in the recent past prior to take over by the Company was
somewhat depressed due to several constraints including an industrial unrest.
However, a quick turn around has been accomplished with the takeover of PBIL by
the Company. All parameters indicate to a successful future of this subsidiary
with great benefits of synergy between it and the Company.
Finance
The financial position of the Company improved significantly during the year
under review. Operating revenue, profit from sale of real estate and proceeds
from GDRs and Convertible Warrants provided a sound financial base. This
allowed the Company not only to run operations in an optimal manner, but also
gave it the acquisition opportunity mentioned earlier in this Report.
The other positive development was that in addition to scheduled repayment of
debt, the Company was able to prepay some part of its debt portfolio.
Borrowings were at Rs.3788.6 Millions as at March 31, 2006 compared to
Rs.5086.7 Millions as at March 31, 2005 - thus lower by Rs.1298.1
Millions.
The balance sheet position is significantly improved due to factors mentioned
above and the Company has the financial ability to meet the future needs of
business.
Employee Relations
One of the Company's key strengths is its people. Relations with employees
remained cordial and satisfactory. The Board would like to place on record its
appreciation of employees for their contributions to the business.
The Company believes in a system of Human Resource Management which rewards
merit based performance and playing an active role in improving employee
skills. Actions during the year under review were supportive of this
policy.
The Eveready Academy of Sales Training (EAST) continues to place successful
students in the management cadre of the Company.
A statement of particulars of employees as required under section 217(2A) of
the Companies Act, 1956 (Act) forms a part of this report as a separate
Annexure. In terms of section 219 (1)(b)(iv) of the Act, this Report is being
sent to all Members without the said annexure. Any member interested in taking
inspection or obtaining a copy of the statement may contact the Secretary of
the Company at its Registered Office during working hours.
Exports and Foreign
Exchange Earnings and Outgo
During the year under review, the Company exported batteries of 51.30 million
pcs and flashlights of 479.44 K pcs against 44 million pcs and 332 K pcs
respectively in 2004-05.
Eveready Industries India Limited is one of India’s most
reputed FMCG companies.
The company has a portfolio comprising dry cell
batteries (carbon zinc batteries, rechargeable batteries and alkaline
batteries), flashlights (torches) and packet tea. It has recently forayed into
the mosquito repellant industry under the brand name, ‘Poweron’.
Eveready is India’s largest selling brand of dry cell
batteries and flashlights (torches), with dominant market shares of about 46%
and 85% respectively.
Eveready is the world’s third largest producer of carbon
zinc batteries, selling more than a billion units a year. Its carbon zinc
batteries dominate the Indian market with a complete range for all equipment
types.
The turnover in the financial year 2005-06 for Eveready
Industries India Limited. was approx. US $ 176 million.
The Eveready brand is synonymous with
power, with a durable franchise that has spanned over a century.
Eveready is celebrating its centenary year in India in
2005.
The new tagline “The Next Century of Power”
affirms Eveready’s commitment to being technology leaders well into the
future, evolving with consumers to meet their changing needs.
From small beginnings with an import consignment
in 1905 of Rs 500, Eveready today dominates the Indian market and stands
for portable power and light to millions of consumers.
As a brand, the War cry promises empowerment to
young consumers in urban India.
The iconic symbol similarly stands for the
assurance of power to rural consumers.
Eveready's packet tea business is also a fast-growing
business and poised for greater gains in market share.
Carbon Zinc
Eveready Industries India Limited is the world’s third
largest producer of Carbon Zinc batteries, selling over 1 billion batteries
every year.
Present in all segments of Dry cell batteries, Eveready holds the
dominant market share in every segment.
|
|
Eveready has invested in building one of the deepest and
widest distribution networks in India through the following initiatives:
·A growing family of
nearly 4000 distributors.
·A team of 1000 exclusive
vans servicing retailer needs by covering the length and breadth of India.
·A consumer reach across
around 80 per cent of all battery selling retail outlets in India (source MODE)
Eveready is now not just expanding its distribution
network; it is also customizing it in line with the growing preference to buy
most products in rural malls and urban large-format hypermarkets.
CMT REPORT
[Corruption, Money laundering & Terrorism]
The Public Notice information has been collected from
various sources including but not limited to: The Courts, India Prisons
Service, Interpol, etc.
1] INFORMATION ON DESIGNATED PARTY
No
exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that
subject is or was the subject of any formal or informal allegations,
prosecutions or other official proceeding for making any prohibited payments or
other improper payments to government officials for engaging in prohibited
transactions or with designated parties.
3] Asset Declaration :
No
records exist to suggest that the property or assets of the subject are derived
from criminal conduct or a prohibited transaction.
4] Record on Financial Crime :
Charges or
conviction registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with Government :
No record exists to
suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report
:
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments
on Corporate Governance to identify management and governance. These factors
often have been predictive and in some cases have created vulnerabilities to
credit deterioration.
Our Governance Assessment focuses principally on the
interactions between a company’s management, its Board of Directors,
Shareholders and other financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local
laws, regulations or policies that prohibit, restrict or otherwise affect the
terms and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.09 |
|
UK Pound |
1 |
Rs.86.59 |
|
Euro |
1 |
Rs.57.92 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP
CAPITAL |
1~10 |
7 |
|
OPERATING
SCALE |
1~10 |
4 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS
SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT
LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT
POINTS |
|
|
|
--BANK
CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER
ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT
POINTS |
|
|
|
--SOLE
DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT
ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER
MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
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 |