MIRA
INFORM REPORT
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Report Date : |
16.07.2007 |
IDENTIFICATION DETAILS
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Name : |
MIRC ELECTRONICS LIMITED |
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Registered Office : |
Onida House, G 1, MIDC, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.01.1981 |
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Com. Reg. No.: |
023637 |
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CIN No.: [Company
Identification No.] |
L32300MH198PLC023637 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM21150D |
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PAN No.: [Permanent
Account No.] |
AAACM8055A |
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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
Television Sets, Video Cassettes, Video Cassette Recorders, Audio and Compact
Disc Players |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 8500000 |
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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. Their trade relations are
reported as 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
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Registered Office : |
Onida House, G-1,
MIDC, |
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Tel. No.: |
91-22-2838
8535/2824 2103/28236475 |
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Fax No.: |
91-22-2838 4499 /
2832 5068 |
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E-Mail : |
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Website : |
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Factory 1 : |
Village Kudus, |
DIRECTORS
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Name : |
Mr. Gulu L.
Mirchandani |
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Designation : |
Chairman & Managing
Director |
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Qualification : |
B.E. (Mechanical) |
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Other Directorship |
He was President
of ‘Consumer Electronics and TV Manufacturers Association’ and Chairman of
the Bombay Chapter of the World Presidents’ Organisation (WPO) |
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Name : |
Mr. Vijay J.
Mansukhani |
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Designation : |
Whole-time
Director |
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Qualification : |
Graduate from the
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Experienced: |
30 Years |
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Other Directorship |
He is the Managing
Director of Adino Telecom Limited, a joint venture with Enkay
Telecommunications ( |
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Name : |
Mr. Manoj K.
Maheshwari |
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Designation : |
Director |
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Qualification : |
B.Sc.(Chemistry) and
Post Graduate in Industrial Management |
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Name : |
Mr.. Vimal
Bhandari |
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Designation : |
Director |
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Qualification : |
Chartered
Accountant |
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Other Directorship |
He is currently An
Executive Director on the Board of Infrastructure Leasing and Financial
Services Limited |
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Name : |
Mr. Harsh
Mariwala |
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Designation : |
Director |
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Qualification : |
B.Com |
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Other Directorship |
He is the Chairman
and Managing Director of Marico Industries Limited, and is also on the board
of various Public Limited Companies |
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Name : |
Mr. Gautam Doshi |
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Designation : |
Director |
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Qualification : |
Chartered
Accountant |
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Other Directorship |
He is the
Director of Ambit Corporate Finance Re. Limited |
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Name : |
Mr. Vinod Verma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
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Category Code |
Category of shareholder |
Total Number of shares |
Total
shareholding as a percentage of total number of shares |
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(A) |
Shareholding of
Promoter and Promoter Group |
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(1) |
Indian |
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(a) |
Individuals /
Hindu undivided family |
1883231 |
1.33 |
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(b) |
Bodies Corporate |
75832090 |
53.40 |
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Sub-Total (A)
(1) |
77715321 |
54.73 |
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(2) |
Foreign |
- |
- |
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Sub-Total (A)
(2) |
- |
- |
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Total
shareholding of Promoter and Promoter Group (A) = (A) (1) + (A) (2) |
77715321 |
54.73 |
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(B) |
Public shareholding |
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(1) |
Institutions |
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(a) |
Mutual Funds /
UTI |
2750 |
0.00 |
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(b) |
Financial
Institutions / Banks |
14708 |
0.01 |
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(c) |
Insurance
Companies |
3058585 |
2.15 |
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(d) |
Foreign
Institutional Investors |
15153837 |
10.67 |
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Sub –Total (B)
(1) |
18229880 |
12.84 |
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(2) |
Non-Institutions |
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(a) |
Bodies Corporate |
12085087 |
8.51 |
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(b) |
Individuals |
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i. Individuals
shareholders holding nominal share capital upto Rs. 0.100 million |
31704873 |
22.33 |
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Ii. Individual
shareholders holding nominal share capital in excess of Rs. 0.100 million |
1446730 |
1.02 |
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(c) |
Any other
(specify) |
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i. Clearing
Members |
271712 |
0.19 |
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ii. Non-Resident
Indians |
545981 |
0.38 |
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Sub –Total (B)
(2) |
46054383 |
32.43 |
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Total Public
shareholding (B) = (B) (1) + (B) (2) |
64284263 |
45.27 |
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GRAND TOTAL (A) + (B) + (C) |
141999584 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of
Television Sets, Video Cassettes, Video Cassette Recorders, Audio and Compact
Disc Players |
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Products : |
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Brand Names : |
IGO |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
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Televisions |
Nos. |
2300000 |
3000000 |
914486 |
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Washing Machines |
Nos. |
780000 |
380000 |
78356 |
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Air-Conditioners |
Nos. |
300000 |
100000 |
21181 |
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Television
Components and Spares |
Nos. |
NA |
NA |
NA |
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Electronic
Turners |
|
3720000 |
3720000 |
2094464 |
GENERAL INFORMATION
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No. of
Employees : |
2000 |
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Bankers : |
v
State
Bank of v
Canara
Bank v
SBI
Commercial & International Bank Limited v
IDBI
Bank Limited v
HDFC
Bank Limited v
The
South Indian Bank Limited |
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Facilities : |
Of the above Rs.
207.450 (Previous year : Rs. 499.266 is repayable within one year) |
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Banking Relations : |
Satisfactory |
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Auditors : |
v
N. M.
Raiji & Company Chartered
Accountants |
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Associates/Subsidiaries : |
Ø
Onida
Finance Limited Ø
Onida
Savak Limited Ø
Onida
Saka Limited Subsidiaries :
Ø
Akasaka
Electronics Limited Ø
Imercius
Technologies India Limited |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
35000000 |
Equity shares |
Rs.10.00 each |
Rs.350.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14193500 |
Equity Shares |
Rs.10.00 each |
Rs.141.000
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 |
141.935 |
140.476 |
140.476 |
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2] Share Application Money |
0.000 |
1.459 |
0.000 |
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3] Reserves & Surplus |
2012.768 |
1806.280 |
1735.163 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH
|
2154.703 |
1948.215 |
1875.639 |
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LOAN FUNDS |
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1] Secured Loans |
1354.496 |
1263.259 |
937.829 |
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2] Unsecured Loans |
307.450 |
749.266 |
227.019 |
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TOTAL BORROWING
|
1661.946 |
2012.525 |
1164.848 |
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DEFERRED TAX LIABILITIES |
194.118 |
138.655 |
187.453 |
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TOTAL
|
4010.767 |
4099.395 |
3228.940 |
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APPLICATION OF FUNDS
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FIXED ASSETS [Net Block]
|
2067.492 |
2025.625 |
1889.486 |
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Capital work-in-progress
|
0.101 |
43.527 |
1.000 |
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INVESTMENT
|
211.353 |
208.762 |
86.591 |
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DEFERREX TAX ASSETS
|
0.000 |
0.000 |
1.886 |
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CURRENT ASSETS, LOANS &
ADVANCES
|
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Inventories
|
1748.806
|
1642.477
|
937.849
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Sundry Debtors
|
1131.171
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903.385
|
840.509
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Cash & Bank Balances
|
367.242
|
208.043
|
71.203
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Other Current Assets
|
0.000
|
0.000
|
0.000
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Loans & Advances
|
469.153
|
543.041
|
896.860
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Total Current Assets
|
3716.372
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3296.946
|
2746.421
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Less :
CURRENT LIABILITIES & PROVISIONS
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Current Liabilities
|
1828.915
|
1355.208
|
1314.518
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Provisions
|
155.636
|
120.257
|
181.926
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Total Current Liabilities
|
1984.551
|
1475.465
|
1496.444
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Net Current Assets
|
1731.821
|
1821.481
|
1249.977
|
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TOTAL
|
4010.767 |
4099.395 |
3228.940 |
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PROFIT &
LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
12249.648 |
10961.775 |
9413.265 |
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Profit/(Loss) Before Tax
|
506.115 |
405.905 |
531.799 |
Provision for Taxation
|
178.190 |
128.060 |
93.760 |
Profit/(Loss) After Tax
|
327.925 |
277.845 |
438.039 |
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Export Value
|
498.357 |
457.972 |
303.010 |
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Import Value
|
2780.645 |
2293.083 |
1613.638 |
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Total Expenditure
|
11743.533 |
10555.870 |
8744.873 |
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2007 (Full Year) |
|
Sales Turnover |
|
|
15139.000 |
|
Other Income |
|
|
40.700 |
|
Total Income |
|
|
15179.700 |
|
Total Expenditure |
|
|
14265.300 |
|
Operating Profit |
|
|
914.400 |
|
Interest |
|
|
202.800 |
|
Gross Profit |
|
|
711.600 |
|
Depreciation |
|
|
197.400 |
|
Tax |
|
|
173.000 |
|
Reported PAT |
|
|
341.200 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.90 |
0.83 |
0.59 |
|
Long Term Debt
Equity Ratio |
0.90 |
0.83 |
0.45 |
|
Current Ratio |
1.81 |
1.80 |
1.52 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
4.34 |
4.25 |
4.33 |
|
Inventory |
7.90 |
9.21 |
9.21 |
|
Debtors |
13.17 |
13.62 |
12.40 |
|
Interest Cover
Ratio |
3.87 |
4.14 |
9.33 |
|
Operating Profit
Margin (%) |
6.77 |
6.14 |
7.25 |
|
Profit Before
Interest and Tax Margin (%) |
5.09 |
4.51 |
5.93 |
|
Cash Profit
Margin (%) |
4.13 |
3.97 |
5.68 |
|
Adjusted Net
Profit Margin (%) |
2.45 |
2.34 |
4.36 |
|
Return on Capital
Employed (%) |
17.55 |
15.31 |
18.63 |
|
Return on Net
Worth (%) |
15.99 |
14.53 |
21.76 |
STOCK PRICES
|
Face Value |
Rs.1.00 |
|
High |
Rs.20.75 |
|
Low |
Rs.20.20 |
LOCAL AGENCY FURTHER INFORMATION
History
Incorporated as a private limited company by Gulu
Mirchandani, Vijay Mansukhani and Sonu Mirchandani of the Onida group, MIRC Electronics
manufactures the well-known Onida brand of colour televisions (CTVs) and video
cassette recorders. Other group companies are Onida Saka, Onida Savak and
Monica Electronics.
MEL tapped the capital market to finance its CTV expansion, and diversification
into the audio segment. Commercial production at the expanded capacity started
from Jul.'95. The company has opened Onida Arcades, exclusive retail shops, and
introduced state-of-the-art wide-vision TVs and audio systems. MEL was awarded
the ISO 9001 certification during 1994-95
.
The company concentrated on reinforcing and improving the penetration of
its sales and after sales support infrastructure. During 1997-98, the company
came out with a new range of products christened 'Techno Value', which has been
launched with considerable success. In 1998-99, it introduced the WEBCRUISER -
the world's first internet TV, the trendy TV and PIP in the 25" segment.
In 1999-2000, the company introduced multi-coloured Candy in the 14 inch TV segment.
In the fiscal 2001, it came out with 29KY Thunder series which was
amongst the first 650 watt television set in the world and has embarked on the
process to launch a plasma display tube television in collaboration with
Fujitsu. With effect from 1st April,2001 Onida Infotech Serivces Ltd was merged
with MIRC Electronics Ltd. In 2001-02 it had launched the 29 inch Home
Theatre,the first to convert a mono recording into a 5.1 output surround sound.
PROFILE
Subject is the maker
of the Onida brand of TVs has grown a number of connectivity options in its
backyard. There are VSAT links, leased lines, VPN links, ISDN links, RF (Radio
Frequency) links, and dial up links. The company is now able to share its SAP
R/3 data among 140 users across 38 locations nationwide without the fear of
losing valuable transaction and operations data in a communications breakdown.
Since MEL runs an
ERP which demands data be available all the time and has users sprinkled in
multiple locations nationwide, it had to ensure multiple connectivity options.
And the initiative has paid off very well.
Subject was founded
in 1981 and began computerization five years ago by deploying LANs at various
locations with CAT 5 structured cabling. RF links were deployed in a couple of
years between its offices in Mumbai and Thane to share information.
The RF links
connect the HO (Head Office) to two locations in Mumbai, the Mumbai branch
office and the Onida Infotech building. Bandwidth of the RF links is 1.5 Mbps
and they are backed up with dialup links. The RF equipment includes wireless
transceivers and wireless modems from Wi-LAN.
The Company uses
HCL Infinet’s network to support a 64 Mbps leased line which connect to 20
branch offices nationwide. Each link is backed up with 128K ISDN links. The
company also uses the service provider’s VPN for security. A firewall sits
between the mail server at the HO and the Internet. A 128K DSL and a back up 64K DSL link help
make the connection.
The Company earlier
had a PAMA link between the HO and the
Financial performance:
MIRC had another successful year with a growth of 12.64 % in
the overall turnover of Rs. 13432.100 millions from Rs. 11925.100 millions fro
the year ended 31st March, 2006. Profit before tax registered a
growth of 24.69 % at Rs. 506.100 million from Rs. 405.900 millions, while
profit after tax stood at Rs. 327.900 millions up from Rs. 277.800 millions an
increase of 18.02%.
Merger of Onida Savak Ltd. with the company:
As a strategic consolidation initiative, the Board of Directors of the company considered the proposal to amalgamate
Onida Savak Ltd. (OSL) with the company
in return for synergic benefits. This merger was approved by the members at the
extra-ordinary general meeting held on 3rd June 2005. Since OSL was classified
as a sick company under the provisions of the Sick Industrial Companies
(Special Provisions) Act, 1985 (SICA), a relevant petition was filed before the
Appellate Authority for Industrial and Financial Reconstruction/Board for
Industrial and Financial Reconstruction. The Board by its order approved the
Scheme with effect from its transfer date i.e. 31st March 2005 and the accounts
being presented incorporate the impact of the amalgamation.
The Company’s
Management decided to sell the Onida Infotech Division on a going concern basis
and concentrate on its core business. The Onida Infotech Division had been
engaged in the designing, developing, marketing and supporting of software in
the field of Enterprise Resource Planning (ERP) and relevant extensions. In
pursuance with a resolution passed through postal ballot by the shareholders
and the scrutiniser’s report dated 12 November 2003, the Company approved the
sale of the Onida Infotech Division.
During the year
under review, the said division was sold together with employees, directly
relevant to the business with a continuity of service and full protection of
the existing terms and conditions.
Fixed Assets:
Ø
Goodwill
Ø
Trademarks
Ø
Ø
Buildings
Ø
Plant
& Machinery
Ø
Electrical
Fitting
Ø
Furniture
& Fixtures
Ø
Office Equipments
Ø
Motor
Vehicles
Ø
R And D
Building
Ø
R And D
Plant And Machinery
Ø
Electrical
Fitting
Ø
Furniture
Ø
Fixture
And Equipments.
Onida Today
Onida today enjoys a strong equity among consumers making it one of the leading
brands in
Onida has recently made a foray in other household appliances including
air-conditioners, washing machines, DVDs, Plasma and LCD televisions and home
theatre systems.
For offices, Onida has also introduced state-of-the-art multi-media
presentation products.
The Network
Onida has a network of 33 branch offices, 208 Customer Relation Centers and 41
depots spread across
The transition of Onida from a family-owned business to a professionally
managed company has largely been made possible by the vision of the Chairman
& Managing Director, Mr.G.L.Mirchandani.
Products
- LCD Television
- Plasma Television
- DVD Player
- DVD Recorder
- Air Conditioner
- Washing Machine
- Microwave Oven
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.40.37 |
|
|
1 |
Rs.82.18 |
|
Euro |
1 |
Rs.55.67 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
|
46 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|