MIRA INFORM REPORT
|
Report Date : |
23.01.2007 |
IDENTIFICATION DETAILS
|
Name : |
TVS ELECTRONICS LIMITED |
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Registered Office : |
“Jayalakshmi Estates”, |
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Date of Incorporation : |
18.08.1986 |
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Com. Reg. No.: |
18-13301 |
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TAN No.: (Tax Deduction &
Collection Account No.) |
CHET07536E |
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PAN No.: (Permanent Account No.) |
AAACI0886K |
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Legal Form : |
It is a Public Limited Liability company. The company’s shares
are listed on the Stock Exchange. |
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Line of Business : |
Manufacturing
and Marketing of Switch Mode Power Supplies, Uninterruptible Power Supplies,
Computer Peripherals, Computer Add-on Cards and Electronic Power
Conditioners. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
RATING
|
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is
considered normal. Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 1500000 |
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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 a well-established company having satisfactory track. Directors are well
known industrialists. Their trade relations are fair. General financial
position is satisfactory. Payments are usually correct and as per
commitments. The company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
|
Registered Office : |
“Jayalakshmi
Estates”, |
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Tel. No.: |
91-44-28272233
/ 22325506 / 22325509 / 22331411/28277155 |
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Fax No.: |
91-44-222327577/28232296 |
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E-Mail : |
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Website : |
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Administrative office : |
34, Developed Plots, South Phase, Industrial Estate, Guindy,
Chennai – 600 032, Tamilnadu |
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Tel. No.: |
91-44-2232 5506 / 2232 5509 / 2233 1411 |
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Fax No.: |
91-44-2232 7577 |
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Website: |
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Factory 1 : |
Tumkur Plant
Survey No. 36 & 37, Pandithanahalli, |
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Tel. No.: |
91-816-243270 /112 /113 |
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Fax No.: |
91-816-243278 |
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Factory 2 : |
Chennai Plant
34, Developed Plots, South Phase, Industrial Estate, Guindy,
Chennai – 600 032, Tamilnadu |
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Tel. No.: |
91-44-2232 5506 / 2232 5509 / 2233 1411 |
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Fax No.: |
91-44-2232 7577 |
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Website: |
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Factory 2 : |
Himachal Pradesh Plant Khasre, No.59/3, Village Ogli, |
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Tel. No.: |
91-1734-325116 |
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Branches : |
Nandambakkam Office |
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Tel. No.: |
91-44-22321166 |
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Fax No.: |
91-44-22329533 |
DIRECTORS
|
Name : |
Mr. Venu
Srinivasan |
|
Designation : |
Chairman |
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Date of Birth/Age : |
51 Years |
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Qualification : |
B.Tech., MBA |
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Experience : |
27 Years |
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Date of Appointment : |
12/04/2001 |
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Previous
Employment: |
Reckitt Benckiser (Reckitt and Colman) of |
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Name : |
Mr. S.
Swaminathan |
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Designation : |
Vice President
– Finance |
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Date of Birth/Age : |
45 Years |
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Qualification : |
B.Com., FCA |
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Experience : |
20 Years |
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Date of Appointment : |
14/07/1999 |
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Previous
Employment: |
Carrier
Refrigeration Limited – Vice President (Finance) |
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Name : |
Mr. S.
Shreenivasa Rao |
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Designation : |
Director |
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Name : |
Mr. Gopal
Srinivasan |
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Designation : |
Whole-time
Director |
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Name : |
Mr. T. K.
Balaji |
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Designation : |
Director |
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Qualification : |
B.E., MBA |
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Date of Appointment : |
16/07/1988 |
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Name : |
Mr. H. Lakshmanan |
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Designation : |
Director |
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Date of
Birth: |
14th
August 1933 |
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Year of
Joining : |
1953 |
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Previous
Employment: |
Sundaram
Clayton Limited – Executive Director – 1982 |
|
Other
Directorships: |
1)
Harita
NTI Limited 2)
Harita
Grammer Limited 3)
Sundaram
Clayton Senior Officers Welfare Foundation Private Limited 4)
Sundaram
Two Wheelers Limited 5)
Auctionindia.com
Private Limited 6)
Harita
Finance Limited 7)
Sundaram
Telematics Limited 8)
TVS
Investments Limited |
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|
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Name : |
Mr. S. R.
Vijayakar |
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Designation : |
Director |
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Name : |
Mr. Srini
Nageshwar |
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Designation : |
Director |
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Date of
Birth: |
14/03/1942 |
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Qualification: |
B. Tech
(Electrical Engineering) |
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Other
Directorships: |
FONGIT
(Federation d’ Innovation De Technologies, Genevoise, Geneva, Switzerland,
Medical Control SA, |
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|
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Name : |
Mr. K. Dhruva |
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Designation : |
Director |
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Date of Birth/Age : |
60 Years |
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Date of Appointment : |
02/07/1992 |
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Qualification: |
B.E.
(Mechanical), MBA ( |
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Previous
Employment: |
Bharat
Electronics Limited – General Manager |
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|
|
|
Name : |
Mr. R. R. Nair |
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Designation : |
Director |
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Date of
Birth: |
02/07/1939 |
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Qualification: |
M.A., Degree in
Psychology, Post Master’s Diploma in Industrial and Personal Management |
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Other
Directorships: |
BASF India
Limited |
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|
Name : |
Mr. Sidhar Mitta |
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Designation : |
Advisor of
Board |
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Name : |
Mr. S. Venkatakrishnan |
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Designation : |
Company Secretary |
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Name : |
Mr. Colley Hwang |
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Designation : |
Advisor of
Board |
MAJOR SHAREHOLDERS
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
Foreign Institutional Investors |
100 |
0.00 % |
|
Overseas
Corporate Bodies |
6800 |
0.04 % |
|
Non-resident
Indians |
4,97,489 |
2.81
% |
|
Financial
Institutions |
62,350 |
0.35
% |
|
Mutual Funds |
4400 |
0.03
% |
|
Promoter
Company |
1,05,53,449 |
59.72
% |
|
Nationalised
Banks |
1,600 |
0.01
% |
|
Corporate
Bodies |
8,42,886 |
4.77
% |
|
Resident
Individuals |
55,31,844 |
31.30
% |
|
Directors and
Relatives |
1,71,900 |
0.97
% |
|
Total |
372,892 |
100
% |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
and Marketing of Switch Mode Power Supplies, Uninterruptible Power Supplies,
Computer Peripherals, Computer Add-on Cards and Electronic Power
Conditioners. |
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Products : |
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Exports to : |
Far East and |
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Imports from : |
Europe and |
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Terms : |
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Selling : |
L/C, D/A or D/P |
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Purchasing : |
L/C, D/A or D/P |
PRODUCTION STATUS
|
Particulars |
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Unit |
Actual Production |
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Uninterrupted
Power Supplies |
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Nos |
42769 |
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Computer
Peripherals |
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Nos |
324099 |
GENERAL INFORMATION
|
Suppliers : |
Ø
Ascent
Circuit Private Limited, Hosur, Tamilnadu Ø
Avon
Data Cables Private Limited, Ø
Aztech
International, Mumbai, Ø
BC
Components India Private Limited, Pune, Ø
EMI
Solutions Private Limited, Ø
Epitome
Components Limited, Ahmednagar, Ø
Excel
Circuits Private Limited, Ø
Gujarat
Poly-Avx Electronic Limited, Gandhi Nagar, Ø
Southern
Rubber and Plastics, Chennai, Tamilnadu Ø
Sree
Vishnu Electronics, Chennai, Tamilnadu Ø
Sri
Shankara Pressing, Chennai, Tamilnadu Ø
Super
Packaging, Chennai, Tamilnadu Ø
Techmark
Electronics Private Limited, Ø
The
Supreme Industries Limited, Chennai, Tamilnadu Ø UV Circuits Private Limited, |
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No. of Employees : |
800 |
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Bankers : |
Ø
State Bank of Ø
State Bank of Ø
State Bank of Travancore Ø
Canara Bank Ø
Federal Bank Ltd. Ø
IDBI Bank Limited Ø
ICICI Bank Ltd. Ø State
Bank of |
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Facilities : |
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Banking Relations : |
Satisfactory
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Auditors : |
Sundaram &
Srinivasan Chartered
Accountants 23, |
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Associates/Subsidiaries
: |
˜
TV
Sundaram Iyengar & Sons Limited ˜
Sundaram
Fastners Limited ˜
TVS
Suzuki Limited – a part of TVS Group ˜
Sundram
Telematics Limited ˜
ICL
Foundries Limited ˜
TVS
Finance and Services Limited, Chennai, Tamilnadu ˜
Sundram
Infosel Limited, Chennai ˜
TVS
Motor Company Limited, Chennai, Tamilnadu ˜
TVS
Investments Limited, Chennai, Tamilnadu ˜
Auction
India.com Limited, Chennai, Tamilnadu ˜
Harita
Technical Services Limited, Chennai, Tamilnadu ˜
TVS
Electronics Limited |
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Parent
company: |
Sundaram-Clayton Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 millions |
Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
17672818 |
Equity Shares |
Rs.10/- each |
Rs.176.728 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 (15 Months) |
31.12.2003 (12 Months) |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
176.728 |
176.728 |
176.728 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
235.384 |
219.534 |
193.509 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
412.112 |
396.262 |
370.237 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
352.282 |
324.200 |
544.789 |
|
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2] Unsecured Loans |
533.726 |
329.581 |
154.639 |
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TOTAL
BORROWING
|
886.008 |
653.781 |
699.428 |
|
|
DEFERRED TAX LIABILITIES |
29.786 |
45.187 |
37.014 |
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|
|
|
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TOTAL
|
1327.906 |
1095.230 |
1106.679 |
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APPLICATION OF FUNDS
|
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block]
|
371.488 |
537.162 |
491.248 |
|
Capital work-in-progress
|
14.954 |
14.592 |
12.401 |
|
|
|
|
|
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INVESTMENT
|
164.173 |
163.673 |
163.673 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
|
Inventories
|
289.408 |
428.843 |
452.065 |
|
|
Sundry Debtors
|
811.587 |
504.928 |
511.894 |
|
|
Cash & Bank Balances
|
33.771 |
30.442 |
88.157 |
|
|
Other Current Assets
|
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances
|
146.708 |
135.828 |
190.057 |
Total Current Assets
|
1281.474 |
1100.041 |
1242.173 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Current Liabilities
|
458.164 |
680.157 |
770.221 |
|
|
Provisions
|
46.019 |
40.081 |
32.595 |
Total Current Liabilities
|
504.183 |
720.238 |
802.816 |
|
Net Current
Assets
|
777.291 |
379.803 |
439.357 |
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES
|
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
1327.906 |
1095.230 |
1106.679 |
|
PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 (15 Months) |
31.12.2003 (12 Months) |
Sales Turnover [including other income]
|
2657.257 |
3173.989 |
2655.015 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
28.821 |
54.854 |
48.626 |
Provision for Taxation
|
(2.898) |
14.723 |
11.921 |
Profit/(Loss) After Tax
|
31.722 |
40.131 |
36.705 |
|
|
|
|
|
Export Value
|
367.561 |
443.968 |
335.516 |
|
|
|
|
|
Import Value
|
970.535 |
1208.950 |
NA |
|
|
|
|
|
Total Expenditure
|
2645.451 |
3119.135 |
2602.389 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
|
Sales Turnover |
|
513.4 |
682.7 |
|
Other Income |
|
13.5 |
10.9 |
|
Total Income |
|
526.9 |
693.6 |
|
Total Expenditure |
|
514.8 |
649.9 |
|
Operating Profit |
|
12.1 |
43.7 |
|
Interest |
|
19.3 |
20.0 |
|
Gross Profit |
|
(7.2) |
23.7 |
|
Depreciation |
|
18.3 |
19.9 |
|
Tax |
|
02.6 |
02.6 |
|
Reported PAT |
|
(21.7) |
00.3 |
Notes:
200606 Quarter
1
1. The above unaudited financial
results were reviewed by the audit committee and taken on record by the Board
of Directors on , 27th July, 2006. Pursuant to Clause 41 of the Listing
Agreement with the Stock Exchanges, the statutory auditors have carried out a limited
review of these unaudited financial results. 2. Previous period figures have
been regrouped wherever necessary to conform to current period's
classification. 3. Since the group of products sold and services rendered by
the company pertains to Information Technology related products and services,
the operations of the company have been reclassified as a single reportable
segment with effect from 1st April, 2005. 4. During the quarter ended 30.06.2006,
6 investor complaints were received, which have all been attended to. No
complaints were pending at the beginning or at the end of the quarter.
Notes
200609
Quarter 2
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 02
Complaints disposed off during the quarter 02 Complaints unresolved at the end
of the quarter Nil 1. The above unaudited financial results were reviewed by
the Audit committee and taken on record by the Board of Directors on 28th
October 2006. Pursuant to clause 41 of the listing agreement with the Stock
Exchanges, The statutory auditors have carried out a limited review of these
unaudited financial results. 2. Previous period figures have been grouped
wherever necessayr to conform to current peirods classification. 3. Since the
group of products sold and services rendered by the company pertains to
informantion technologies related products and services, the operations of the
company have been reclassified as a single reportable segment with effect from
1st April 2005.
KEY RATIOS
|
PARTICULARS |
31.03.2005 (15 Months) |
31.12.2003 (12 Months) |
31.12.2002 (12 Months) |
|
Debt Equity
Ratio |
2.28 |
2.16 |
2.02 |
|
Long Term Debt
Equity Ratio |
0.76 |
0.54 |
0.32 |
|
Current Ratio |
1.07 |
0.92 |
0.87 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.04 |
3.03 |
3.48 |
|
Inventory |
7.86 |
6.26 |
6.17 |
|
Debtors |
4.29 |
5.39 |
6.30 |
|
Interest Cover
Ratio |
-3.87 |
2.17 |
1.96 |
|
Operating
Profit Margin (%) |
-5.59 |
5.14 |
5.36 |
|
Profit Before
Interest and Tax Margin (%) |
-8.22 |
2.95 |
3.52 |
|
Cash Profit
Margin (%) |
-7.49 |
3.35 |
3.14 |
|
Adjusted Net
Profit Margin (%) |
-10.12 |
1.16 |
1.30 |
|
Return on
Capital Employed (%) |
-17.53 |
6.73 |
9.18 |
|
Return on Net
Worth (%) |
-70.69 |
8.37 |
10.25 |
STOCK PRICES
|
Face
Value |
Rs.
10/- |
|
High |
Rs.
62.00/- |
|
Low |
Rs.
58.10/- |
LOCAL AGENCY FURTHER INFORMATION
The company’s
fixed assets of important values includes land, buildings, plant and machinery,
intellectual property rights, furniture, fixture and equipments and vehicles.
HISTORY
The company was incorporated on 18th August, 1986 at
Chennai in Tamilnadu as a Private Limited Company having Company Registration
Number 13301 of 1986.
Subject was promoted by Sundaram Clayton (a member of TVS Group
Companies). It produces Uninterrupted Power Supplies (UPS), Magnetic Cartridge
Tape Drives and Computer Peripherals i.e. Printers (Dot Matrix, Laser and Heavy
Duty Printers) and Keyboards, etc.
The company was converted a into public limited liability company
w.e.f. 12th May, 1988.
The company has collaborations with Elgar Electronics Corporation,
USA, Citizen Watch Company,
Sundaram-Clayton Limited, the flagship company of the TVS Group,
is the main promoter with a 59% stake.
About 9% of the equity capital is held by financial institutions,
mutual funds and banks. The remaining 32% is held by the public.
In 1988 it diversified into computer software development and in this
regard it has set a facility. The company won the PC Quest best Indian product
award for dot matrix printers for three consecutive years till 1991.
The company has promoted Modular Infortech in Joint venture with
Indian software major, Modular Systems in 2000 and it has participated in the
equity of the JV Company and picked up 33% stake at a cost of Rs. 23 millions.
The new company plans to develop Indian language web based tools, applications
services and solutions, database tools and infrastructure components.
During the year 2000-01, the company was taking steps to merge its
wholly owned subsidiary, ICL Foundries with itself.
During the year 2002-03 two new products viz TVS Sprint, a retail
automation product and TVS Proton, world’s quickest Bill printer were launched.
The above products are indigenously developed one. The company is having plants
at Tumkur (
YEAR EVENTS
1986
The Company was
incorporated as a private limited company on 1st August, and it became a Public
Limited Company on 12th May, 1988. It was promoted by Sundaram - Clayton
Limited.
The Company's
object is to manufacture switch mode power supplies, uniterruptible power
supplies, dot matrix printers, magnetic cartridge tape drivers and keyboards.
The following
technical Collaborations were entered into :-
(i)
With
Elgar Electronics Corporation, U.S.A for the manufacture of uninterruptible
power supplies.
(ii)
With
Citizen Watch Company Limited,
(iii)
With
Tallgrass Technologies Corporation, U.S.A for the manufacture of magnetic
cartridge tape drives.
The Company
undertook to establish facilities for the manufacture of : -
(i) 7,200 nos. per
annum of uninterruptible power supplies and stand by power systems.
(ii) 25,000 nos.
per annum of switch mode power supplies.
(iii) 14,000 nos.
per annum of tape drives and
(iv)
20,000
nos. per annum of keyboards.
The
project was being implemented under two divisions with common service
facilities. The power supplies division would engage in the manufacture of
uninterruptible and switch mode power supply systems while the computer
peripherals division would undertake the manufacture of dot matrix printers,
cartridge tape drives and key boards.
700
No. of equity shares subscribed for by the directors and their friends and
75,00,000 shares were allotted at par to Sundaram Clayton, Limited the
promoters of the Company. 67,99,300 No. of equity shares issued at par of which
2,50,000 shares reserved and allotted on a firm basis to Life Insurance
Corporation of
(i)
7,10,000
shares to the employees (including Indian working directors)/workers of the
Company and those of Sundaram-Clayton Ltd., (only 59,000 shares taken up).
(ii)
6,54,900
shares to the shareholders of the Sundaram Clayton Ltd. (fully taken up); and -
(iii) 20,00,000 shares to non-resident Indian/persons of Indian origin residing
abroad on repatriation basis (fully taken up).
The
balance of 31,84,400 shares together with the unsubscribed 6,51,000 shares of
the employees quota offered and allotted to general public (public issue in
November, 1988).
1988
DGTD
registration was obtained in September to set up facilities for the manufacture
of computer software.
1989
Besides
new models for printers and tape drives, the Company also introduced new
products such as monitors, floppy drives and on-line uninterruptible power
supply systems.
In
March, an industrial licence was received for the manufacture of certain new
products such as fax cards, lan cards, telex cards, modems etc.
A
letter of Intent was obtained in February 1989, for the manufacture of
dedicated electro mechanical sub-assemblies and parts for computers and
computer peripherals by establishment of a new undertakings.
The
Research and Development unit modified the 24 wire printer of the collaborator
Citizen Watch Company Limited to bring out an indigenous 24 wire printer. In
respect of cartridge tape drives, efforts were focussed on supporting tape
drives in various operating systems and machines by developing device drives
and adaptation of QIC 100 tape drives for Indian conditions.
In
addition, a range of entry level products both in Arcnet and Elhernet net
working standards were developed.
4,400
No. of equity shares, forfeited in 1990-91 reissued.
1990
Exports
declined to Rs. 7.800 millions due to a severe cutback in exports to
The
newly introduced products such as computer monochrome monitors, on-line
uninterruptible power supply system etc. was well received in the market.
1991
New
models of 24 wire printers with graphic printing capabilities and 5 KVA models
of uninterrupted power supplies were introduced.
New
models of high quality switch mode power supplies - 264 wats and 90 wats were
designed and developed.
A
new version of 80-column printer with push tractor facility to meet specific
application requirement in post office was developed.
Also,
a new model 11205 tape drive was developed. The Qicsecure' software was
enhanced to work with Dos and UNIX operating systems in Local Area Networks.
The Telecom Engineering Centre gave its approval for the GIII Compatible Fax
Card developed in house.
1994
Company's
operating margins reduced substantially due to the impact of reduced prices of
fully imported peripherals coupled with steep appreciation of Japanese Yen
against Rupee.
The
Company issued 24,16,665 - 14% fully convertible debentures of Rs.60 each to
promoters viz. Sundaram Clayton Limited on preferential basis.
1995
There
was considerable pressure on the profit margins due to the increased inventory,
coupled with unexpected fluctuation in major foreign currencies.
162,000
shares issued due to conversion of loan. 25,63,318 shares issued due to
conversion of debentures.
1996
Each
debenture was converted into 1 equity share of Rs.10 each at a premium of Rs.50
per share on August 2.
1997
The
Company launched its QX (`Quiet Excellence') series of business printers which
it says are ideal for reports, multiple copy printing and similar desk top
publishing applications.
The
Lexmark colour inkjet printer CJ 1020 launched by Indmark Infocom, a wholly
owned subsidiary of the Company.
The
company launched its new `OX' series of printers for business printing.
The
power systems business, which has a technical collaboration with Invertomatic
Victron, has likely to bring in about 25% of company’s overall revenues.
The
company is a leading computer peripheral manufacturer, had bagged its third
major industry award for the year with ELCINA (Electronic Component Industries
Association) awarding the Electronics Man of the year.
The
Company had been awarded the Export House status by the Government of India.
TVSE
recently introduced its range of UPS systems in a big way in the domestic
market, which was till now confined only to the export market.
The
Rs. 1400 millions state-of-the art production facility has been set up recently
at Tumkur.
1998
The
company introduced the fastest speed printers. Several new low cost printers.
In
the new Chennai plant, it was proposed to introduce time control of air
conditioning (AC) units with change over arrangement to fan.
In
the Tumkur plant it was proposed to implement solar heating for catering to the
hot water requirements of the industrial canteen.
Sundram
Infocom Private Limited, has become a subsidiary of the company during this
period.
The
Company has launched two new variations of its uninterrupted power supply
system range for the small office/home office segment. The new products named
Start UPS300J and Start UPS500J.
The
company which manufactures uninterrupted power supply (UPS) systems was
considering spinning off the UPS division into a separate wholly-owned
subsidiary to bring about a strategic shift in its export focus of the product.
1999
The
equity shares of the company had been made available for dematerialisation,
with effect from 26th March, under the "Depository System" operated
by the National Securities Depositories Limited.
The
Company, the largest computer peripherals manufacturing company in
The
Company, a leading manufacturer of computer peripherals like dot matrix printers,
key boards and UPS systems, is all set to enter the software business through a
separate venture.
2000
Lexmark
T series, the latest in the range of laser printers from company, a subsidiary
of Sundaram Clayton and a part of the TVS Group of companies, has been launched
in Pune.
The
Company has introduced Lexmark Z-series colour inkjet printers.
The
Chennai-based computer peripherals manufacturers,company has tied up with the
Pune-based Indian language software company, Modular Systems Ltd. to set up a
joint venture Modular Infotech.
The
Company has launched the second phase of its road show to cover 100 towns
beginning with
The
company is a subsidiary of Sundaram Clayton, part of the 80-year old TVS group
and manufacturer of computer hardware and peripherals in
The
company has tied-up with Ingram Micro India, a subsidiary of Ingram Micro Inc
to provide a nationwide distribution of its products.
The
company is set to produce printed circuit boards on contract manufacture basis
for customers abroad.
The
company has won PC Quest's Users Choice Award in the dot matrix printe category
for the year 2000.
The
company has launched HD 745 - the 24 wire high-speed dot-matrix printers for
high volume printing.
The
company has been awarded the Electronic Component Industries Association's
quality award for 1999-00 and a certificate of merit was awarded in recognition
of its good performance in the export of UPS systems.
Software
firm Modular Infotech has joined hands with the company for marketing its
software products in northern
2001
Company,
the manufacturer of computer peripherals, has re-launched Start UPS Lite (SUL
500) with operating voltage of 140 to 300 volts, the widest operating voltage
in the industry.
2002
The
Board of Directors of the company at its meeting held on July 25, 2002 cleared
the proposal to acquire the business of an unlisted company viz
Auctioninida.com Private Limited and that the valuation to be based on the
certificate to be obtained from an independent Chartered Accountant.
Mr.
K. S. Ramesh, one of the Directors of the Company had resigned from the
Directorship of the Company and relieved w e f June 30, 2002.
TECHNICAL COLLABORATIONS
The company has
technical collaborations with :
Ø
Citizen
Watch Company Limited,
Ø
Victron
B.V., The Netherland
Ø
Lantech
Computer Company,
Ø
Elgar
Electronics Corporation,
Ø
Tallgrass
Technologies Corporation,
The company’s
business is in two groups –
Product and Solutions Business Group
This group is the market leader in dot matrix printers with a
market share of around 40%. This business group delivered a turnover of Rs.
2140 millions (81% of the total turnover against Rs. 1650 millions last year)
Electronic Manufacturing
Services (
This business group, excluding the inter-segment revenue, has
contributed Rs. 470 millions to the turnover (18% turnover) against Rs. 570
millions last year. The drop in turnover was because of lower off-take by
external customers due to their phasing out certain products. The business has
invested in new products in its power segment in line interactive UPS and
online UPS. Exports at Rs. 340 millions were at same level as last year. the
drive for new customer acquisitions during the year is expected to deliver
growth in future.
REVIEW OF PERFORMANCE
The
net turnover of the company was Rs.2590 millions for the year. On a comparable
basis this represents a growth of 16% over a turnover of Rs.2230 millions,
excluding Payment Systems in the corresponding period of the previous year.
The
Products and Solutions (P&S) business group consisting of Printers,
Supplies, Keyboards, PCS and Solutions, registered 11% growth with revenue of
Rs.178 millions excluding Payment system products during the year compared to
Rs.1610 millions during the corresponding period in previous year. The market
share in value terms for DMP was at 41% on an average during the year as
compared to 40% during the corresponding period in previous year.
The
Customer Support (CS) business group consisting of contract manufacturing for
OEMs .traded products like Set Top Box and field support business generated
revenue of Rs. 810 millions during the year as against Rs.620 millions last year,
thereby registering 31% growth.
The
Contract Manufacturing' business grew by 17% during the year generating revenue
of Rs. 650 millions compared to Rs.560 millions during the corresponding period
in previous year.
FINANCE
The
businesses have generated a net cash of Rs.184.5 millions from operations
during the year under review. It is significant to note that there has been a
reduction in the Company's borrowings from Rs.953.0 millions to Rs.886.0
millions. During the year, they had undertaken a close review of working
capital and fixed assets for improving capital productivity. Based on a
detailed analysis and assessment, a sum of Rs.316.3 millions was charged off.
The
Company launched Total Cost Management Program to improve cost productivity by
driving efficiencies in manufacturing and supply chain achieving a savings of Rs.70
millions during the year.
The
Company has transferred its unutilised property at Nandambakkam to its wholly
owned subsidiary, Sravanaa Properties Limited, for a sum of Rs.450 millions
with a purpose to develop the property in view of burgeoning real estate market
for IT Park in Chennai. This will provide the economic support for the growth
of the existing businesses.
SUBSIDIARY COMPANY
During
the year, the Company acquired 100% of the equity share capital of Sravanaa
Properties Limited, which is engaged in property development, by acquiring
50,000 equity shares of Rs.10/- each for cash at par amounting to Rs.0.5
millions. The reports and accounts of the Subsidiary Company (Consolidated)
along with the Statement pursuant to Section 212 of the Companies Act, 1956 are
annexed.
Press Release
TVS-E declares
audited results for the year ended FY 06
Thursday, 29
June, 2006
TVS-E declares audited results for the year ended FY 06
Chennai, 29th June 2006: TVS Electronics announced the audited annual results
for the financial year ended 31st March 2006. The total income has been Rs.2657.3
millions for FY ’06 as against Rs.3174 millions for the 15 month period with
respect to previous year FY’05. The profit after tax was Rs.3.17 Cr for the
financial year 2005-06 as against Rs.40.1 millions for the previous financial
year FY 05.
The board has recommended a dividend of 7.5% for the year ended 31st March
2006.
The company generated net cash from operations of Rs. 136.7 millions and
utilized cash for further capital expenditure program of over Rs.5 Cr and also
used surplus cash for reducing its borrowings by Rs.67 millions during the
year.
During the year, the company commenced operations in Himachal Pradesh. This
helped the company not only to remain competitive in terms of pricing but also
improved its nearness to the market. The Total Cost Management initiatives of
the company have helped the company improve cost productivity.
The company continues to be a dominant player in the Dot Matrix Printer segment
with a significant market share of 39%. The company has been declared as No.2
in DMP, for the Asia Pacific region by Gartner in APAC Dot Matrix market and
one of the fastest growing companies in this region.
The company enjoys a market share of 55% in mechanical key board business.
In the Contract Customer Support business, the company has added a few
top clients in IT and Telecom during the year.
Commenting on the company’s performance Mr. Gopal Srinivasan, Director, TVS
Electronics Limited said, “With growth
focused on DMP and Contract Customer Support Business the organisation is
poised for leveraging the opportunities in the ICT space during the current
year.”
During the year, the company transferred one of its properties at a prime location
in Chennai to its wholly owned subsidiary at market rates as part of its
proposal to leverage on the emerging market opportunities in real estate.
The Subsidiary would take up the work of development of the property for the
company’s own use and also develop additional space for commercial use for
leveraging on the potential for commercial spaces realizing value to TVS-E.
This would add value to the shareholders of TVS-E. The project is expected to
commence during the current financial year.
About TVS Electronics:
TVS Electronics Limited, a part of the 90-year-old TVS Group is one the largest
manufacturer of Computer Peripherals in the country.
The range of offerings includes; Products - Dot Matrix printers, Power
Products, Keyboards, Supplies, Point of sale Transaction Solutions,
Services-Contract Manufacturing Services (CMS) and Customer Support Services
(CCS).
TVS-E has a large distribution and service network, which reaches over 450
towns across the country with 2 National Distributors and over 3,000 Authorized
Dealer Partners. The Company has manufacturing facilities in Tumkur, Chennai
and Himachal Pradesh.
CMT REPORT [Corruption, Money laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts,
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the
subject of any formal or informal allegations, prosecutions or other official
proceeding for making any prohibited payments or other improper payments to
government officials for engaging in prohibited transactions or with designated
parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.
8] Affiliation
with Government :
No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.
9] Compensation
Package :
Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 44.23 |
|
|
1 |
Rs. 87.56 |
|
Euro |
1 |
Rs. 57.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score
serves as a reference to assess SC’s credit risk and to set the amount of
credit to be extended. It is calculated from a composite of weighted scores
obtained from each of the major sections of this report. The assessed factors
and their relative weights (as indicated through %) are as follows:
Financial condition (40%) Ownership background (20%) Payment record (10%)
Credit history (10%) Market trend (10%) Operational
size (10%)
RATING
|
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 |