MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
TITAN INDUSTRIES LIMITED |
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Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635 126, Tamilnadu |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
26.07.1984 |
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Com. Reg. No.: |
1456 |
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CIN No.: [Company
Identification No.] |
L74999TZ1984PLC001456 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHET08980G |
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PAN No.: [Permanent
Account No.] |
AAACT5131A |
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Legal Form : |
Public Limited Liability Company Company’s Shares Are Listed On The
Stock Exchange |
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Line of Business : |
Manufacturers and Sellers of Watches, Jewellery Pieces, Table
Clocks, etc. |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 930288 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company and a part of Tata
group. The company is progressing well. Directors are reported as experienced
and respectable businessmen. Trade relations are reported as faire. Business
is active. Payments are usually correct and as per commitments. Fundamentals are strong and healthy. The company can be considered normal for business dealings at usual
trade terms and conditions The company can be regarded as a promising business partner in medium
to long-run. |
LOCATIONS
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Registered Office : |
29, Sipcot Industrial Complex, Hosur – 635 126, |
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Tel. No.: |
91-4344-554199 |
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Mobile No.: |
91-4344-276037 |
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Fax No.: |
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E-Mail : |
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Website : |
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Corporate Office : |
Golden Enclave, Tower A, |
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Tel. No.: |
91-80-5593551 (20 Lines) |
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Fax No.: |
91-80-5589923 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Rameshram Mishra |
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Designation : |
Chairman and Director |
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Date of Birth/Age : |
14th December 1953 |
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Qualification : |
IAS |
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Date of Appointment : |
26th July 2004 |
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Name : |
Mr. Arun Ramanathan |
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Designation : |
Director |
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Date of Birth/Age : |
25.04.1949 |
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Qualification : |
IAS |
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Date of Appointment : |
31.07.2002 |
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Name : |
Mr. Bhaskar Bhat |
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Designation : |
Managing Director |
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Date of Birth/Age : |
49 Years |
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Qualification : |
B. Tech., PGDM |
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Name : |
Mr. P. Baskaradoss |
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Designation : |
Director |
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Name : |
Mr. Ishaat Hussain |
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Designation : |
Director |
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Name : |
Mr. Farrokh Kavarana |
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Designation : |
Director |
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Name : |
Mr. N. N. Tata |
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Designation : |
Director |
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Name : |
Mr. Tirumalai. Kumar Balaji |
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Designation : |
Director |
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Date of Birth/Age : |
12.07.1948 |
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Qualification : |
B.E. |
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Date of Appointment : |
01.03.1986 |
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Name : |
Mr. Arun. Charan. Mukherji |
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Designation : |
Director |
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Date of Birth/Age : |
10.12.1925 |
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Qualification : |
M.A. |
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Date of Appointment : |
01.03.1986 |
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Name : |
Mrs. Rama Bijapurkar |
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Designation : |
Director |
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Name : |
Dr. C. G. Krishnadas Nair |
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Designation : |
Director |
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Date of Birth/Age : |
17.08.1941 |
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Qualification : |
BE (Metallurgy), MSc, Engineering, PHD, Engineering |
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Date of Appointment : |
02.05.2002 |
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Name : |
Dr. R. Vijaykumar |
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Designation : |
Director |
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Date of Birth/Age : |
23.09.1955 |
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Qualification : |
Ph. D. IAS |
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Date of Appointment : |
26.06.2002 |
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Name : |
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Designation : |
Director |
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Date of Birth/Age : |
3rd December 1963 |
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Date of Appointment : |
26th July 2004 |
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Name : |
Mr. R. Vijaykumar |
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Designation : |
Director |
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Date of Birth/Age : |
20th September 1950 |
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Date of Appointment : |
29th January 2004 |
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Name : |
Mr. Shaktikanta Das |
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Designation : |
Chairman And Director |
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Date of Appointment : |
05.06.2007 |
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Name : |
Mr. D. Rajendran |
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Designation : |
Chairman And Director |
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Date of Appointment : |
05.06.2007 |
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Name : |
Mr. S. Ramasundaram |
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Designation : |
Director |
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Date of Appointment : |
05.06.2007 |
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Name : |
Mr. S. Susai |
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Designation : |
Director |
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Name : |
Mr. T. S. Surendranath |
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Designation : |
Director |
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Date of Appointment : |
26.06.2007 |
KEY EXECUTIVES
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Name : |
Ms. Usha Iyenagar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2006
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Category |
No.
of shares held |
%
of shareholding |
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Tamilnadu industrial development corporation Limited |
11,784,606 |
27.88 |
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Tata group companies |
10,574,276 |
25.01 |
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FFI / FLLs / OCBs |
4,327,436 |
10.24 |
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Bodies corporate |
2,491,745 |
5.89 |
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Unit trust |
2,456 |
0.01 |
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Mutual funds |
174,360 |
0.41 |
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Nationaliesed banks |
3,653 |
0.01 |
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others |
12,917,738 |
30.55 |
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Total |
42,276,270 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and Sellers of Watches, Jewellery Pieces,
Table Clocks, etc. |
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Products : |
Watches, Clocks, Jewellery |
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Exports : |
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Countries : |
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Imports : |
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Countries : |
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GENERAL INFORMATION
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Suppliers : |
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No. of Employees : |
2959 |
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Bankers : |
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Facilities : |
Secured Loans
Unsecured Loan
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Auditors : |
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Name : |
A. F. Ferguson & Company Chartered Accountants |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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8,00,00,000 |
Equity |
Rs. 10/- each |
Rs. 800.000 millions |
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40,00,000 |
Redeemable cumulative preference |
Rs. 100/- each |
Rs. 400.000 millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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4,22,76,270 |
Equity |
Rs. 10/-
each |
Rs. 422.763
million |
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2,00,000 |
Redeemable cumulative preference |
Rs. 100/- each |
Rs. 20.000
millions |
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10,00,000 |
Redeemable cumulative preference |
Rs. 100/-
each |
Rs. 100.000 milions |
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2,00,000 |
Redeemable cumulative preference |
Rs. 100/-
each |
Rs .20.000
milions |
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4,00,000 |
Redeemable cumulative preference |
Rs. 100/-
each |
Rs. 40.000
millions |
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1,40,000 |
Redeemable cumulative preference |
Rs. 100/-
each |
Rs. 14.000
millions |
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20,60,000 |
Redeemable cumulative preference |
Rs. 100/-
each |
Rs. 206.000
millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
822.763 |
822.763 |
822.763 |
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2] Share Application Money |
0.000 |
0.000 |
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3] Reserves & Surplus |
1502.957 |
949.652 |
828.493 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
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NETWORTH |
2325.72 |
1772.415 |
1651.256 |
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LOAN FUNDS |
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1] Secured Loans |
1488.377 |
1935.230 |
2036.099 |
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2] Unsecured Loans |
1190.961 |
1246.681 |
2031.032 |
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TOTAL BORROWING |
2679.338 |
3181.911 |
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DEFERRED TAX LIABILITIES |
237.548 |
293.198 |
351.404 |
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TOTAL |
5242.506 |
5247.524 |
6069.791 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1764.551 |
1651.289 |
1732.968 |
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Capital work-in-progress |
195.649 |
97.829 |
40.659 |
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INVESTMENT |
270.203 |
270.203 |
275.833 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
3743.944
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2716.182 |
1641.191 |
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Sundry Debtors |
901.193
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770.896 |
1481.617 |
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Cash & Bank Balances |
382.869
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441.754 |
268.492 |
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Other Current Assets |
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Loans & Advances |
1439.599
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1716.380 |
1936.921 |
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Total
Current Assets |
6467.605
|
5645.212 |
5328.221 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
3331.357
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|
1506.227 |
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Provisions |
267.198
|
333.065 |
134.728 |
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Total
Current Liabilities |
3598.555
|
2661.047 |
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Net Current Assets |
2869.050
|
2984.165 |
3687.266 |
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MISCELLANEOUS EXPENSES |
143.053 |
244.038 |
333.065 |
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TOTAL |
5242.506 |
5247.524 |
6069.791 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
14401.850 |
10967.196 |
8969.739 |
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Other Income |
24.294 |
27.263 |
0.000 |
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Total Income |
14426.144 |
10994.459 |
8969.739 |
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Profit/(Loss) Before Tax |
868.818 |
323.634 |
140.283 |
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Provision for Taxation |
132.620 |
74.145 |
25.145 |
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Profit/(Loss) After Tax |
736.198 |
249.489 |
115.138 |
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Earnings in Foreign Currency : |
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Export of goods on FOB basis |
873.553 |
894.024 |
803.224 |
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Interest |
47.294 |
64.081 |
0.000 |
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Other Earnings |
6.723 |
6.816 |
6.598 |
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Total Earnings |
927.57 |
964.921 |
809.822 |
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Imports : |
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Raw Materials |
1841.242 |
1258.650 |
1322.855 |
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Stores & Spares |
29.040 |
17.982 |
24.361 |
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Capital Goods |
177.887 |
11.836 |
28.934 |
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Total Imports |
2048.169 |
1376.150 |
1288.468 |
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Expenditures : |
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Interest |
248.357 |
7988.500 |
309.174 |
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Depreciation & Amortization |
196.644 |
0.000 |
196.126 |
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Other Expenditure |
1286.325 |
214.738 |
9815.525 |
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Excise duty |
0.000 |
0.000 |
376.218 |
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Total Expenditure |
13307.326 |
10320.825 |
8579.456 |
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SUMMARISED RESULTS
|
PARTICULARS |
31.03.2007 |
|
Type |
Full year |
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Sales turnover |
20902.400 |
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Other income |
32.200 |
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Total income |
20934.600 |
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Total
expenditure |
19158.000 |
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Operating profit |
1776.600 |
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Interest |
204.200 |
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Gross profit |
1572.400 |
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Depreciation |
255.900 |
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Tax |
403.800 |
|
Reported PAT |
941.300 |
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Dividend (%) |
500.000 |
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity
Ratio |
1.43 |
2.12 |
2.67 |
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Long
Term Debt-Equity Ratio |
0.69 |
1.01 |
0.89 |
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Current
Ratio |
1.23 |
1.25 |
1.11 |
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TURNOVER
RATIOS |
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Fixed
Assets |
3.68 |
2.90 |
2.48 |
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Inventory |
4.67 |
5.28 |
6.28 |
|
Debtors |
18.06 |
10.22 |
5.75 |
|
Interest
Cover Ratio |
4.83 |
2.93 |
2.08 |
|
Operating
Profit Margin(%) |
10.77 |
11.20 |
12.01 |
|
Profit
Before Interest And Tax Margin(%) |
9.46 |
9.50 |
9.78 |
|
Cash
Profit Margin(%) |
7.63 |
6.37 |
6.09 |
|
Adjusted
Net Profit Margin(%) |
6.33 |
4.67 |
3.86 |
|
Return
On Capital Employed(%) |
29.86 |
21.65 |
16.75 |
|
Return
On Net Worth(%) |
56.29 |
38.82 |
27.27 |
STOCK PRICES
|
Face Value |
Rs.100 |
|
High |
Rs. 1,100.00 |
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Low |
Rs.1,061.20 |
LOCAL AGENCY FURTHER INFORMATION
Fixed assets:
Land – freehold
Land – leasehold
Building
Plant, machinery and equipment
Furniture, fixtures and equipment
Vehicles
History :
Titan Industries (TIL)[Formerly Titan
Watches], promoted by Tamilnadu Industrial Development Corp(TIDCO) and the Tata
Group is the leading manufacturer of Watches and branded Jewellery.
TIL incorporated in 1984 has set
up an integrated watch manufacturing facility at Hosur in Tamilnadu in 1987
with initial technical know-how from Europe and
brands in 1997.
The company has three operating
divisions namely the Time Products Division (Watches and Precision
Engineering), the Jewellery Division (Tanishq) and the International Business
Division which was formed by different SBUs for different product groups.
The company which has honed the precision engineering expertise over the years
has leveraged its expertice in this area and start supplying dashboard instrumentation
components and assemblies to global automotive majors, as also cetain critical
components for aerospace industries.
The Subsidiaries of TIL are Titan Time Products Ltd (TTPL), Titan International
Holdings NV, Titan Brand Holdings NV and Titan Watch Co Ltd. During 2004-05 the
TTPL, a joint venture company of TIL and Economic Development Corporation of
TIL's has set up Titan International Marketing, an associate, in the
TIL is now looking to diversify into the highly profitable personal accessories
business, leveraging on its Titan brand name.
Watch Business
Titan Industries one of the
leading global watch manufacturer, markets its watches under 'Titan','Sonata'
'Fasttrack'and 'Dash' brand names. TIL markets its clocks under the brand name of
'Titan Synchronoy'.
TIL's exclusive upmarket retail chain, 'The World of Titan' has 172 stores in
101 locations. The company's watches are presently sold in about 40 countries
of the world through marketing subsidiaries based in
Jewellery
Titan Industries entered the precious jewellery segment in 1995 under the brand
name 'Tanishq' and 'Titan'. It is
The company has increased the installed capacity of watches by 1 Million pieces
during 2004-05 and with this expansion the total installed capacity of watches
has increased to 9 Million pieces. During 2004-05 the company has set up a new
watch assembly unit was established at Baddi Himachal Pradesh with an assembly
capacity of 2 Million watches per annum.
During 2004-05 the company has launched two brands- Fastrack sunglasses and
Tommy Hilfiger Watches. The company has entered into the fragrance business
through launch of Evolve and these are available in
awards
·
Subject was adjudged the most respected Consumer
durables company by IMRB with the award sponsored by Business World.
·
Titan and Tanishq were both voted the most admired
time-wear and jewellery brands at the Images Fashion Awards 2003 and 2004.
·
Titan Edge ultra slim watch adjudged as the best
Indian Life Style product design by Business world.
·
The Rotary Club of
·
The Golden Peacock-Environment Management Award
2003 at the 5th World Congress on Environment Management.
·
PHDCII award for Corporate Social
Responsibility - 2003.
trade terms
The company is in trade terms with: -
·
A. S. R. Packaging Private Limited
·
AAA Products Private Limited
·
Amonia Marketing Company
·
Arasu Enterprises
·
Arihant Technomac Limited
·
Art & Jewells
·
Bangalore Mechatronics Private Limited
·
Bangalore Refinary Private Limited
·
Centura Watch Cases Private Limited
·
Chakson Engineering Company
·
Classic Dials Private Limited
·
Conee Chains Private Limited
·
Cony Bands Private Limited
·
Delta Products
·
G. B. Rubber Products
·
Hirsch Watch Straps Private Limited
·
Hitech Times
·
Horological Components Private Limited
·
Huja Industries
·
Indo Plast
·
Medicon Leather Private Limited
·
P & S Galvasols
·
Peebee Enterprises
·
Perfect Engineering Works
·
Plasma Gold Coatings Private Limited
·
Plastic Moulding Service
·
Sona Band
·
Sona Horologicals Private Limited
·
Suraj Enterprises
·
Tecnicrafts Industries
·
Vardhan Banda Limited
·
Hitech Times
·
Sree Lakshmi Enterprises
joint venture
The company has joint venture with Titan Time Products Limited.
imports and exports
The company imports its' requirements from
It exports its products to
The company has been accredited with ISO 9001 Certification.
The company is in the process of implementing the ISO 14001 Environment
Management System Standard. The
certification is expected in the current financial year.
The company's fixed assets of important value include leasehold and
freehold land, buildings, plant, machinery and equipment, furniture, fixtures
and equipments and vehicles.
The company employs around 2959 persons in its set up.
As per website
details:
Titan Industries
Limited
While the Company
had provided for its accumulated losses in
in the previous
year.
Finance
During the year
urrder review, the Company redeemed preference shares aggregating Rs. 206.0
millions which carried an average dividend rate of 6.67% and raised an
equivalent amount of Rs. 206.0 millions by way of private placement of
preference shares at an average dividend rate of 6.00%. The Company raised a
total of Rs. 3358.3 millions from borrowings, of which Rs.1674.8 millions were
from Commercial banks and the balance of Rs.168.35 millions from other sources.
Borrowings-of Rs. 386.09 millions were repaid during the year. Rs. 451.3
millions was incurred as capital expenditure in respect of Precision
Engineering Division, internationalization and expansion programmes. The
average cost of borrowings for the year was 8.21 % as against 9.14% in the
previous year. At present, the average cost of borrowings is 7.42%. As on 31st
March, 2006, the Company held fixed deposits of Rs.108.4 millions from the
public, shareholders and employees. There were no overdue deposits other than
unclaimed deposits amounting to Rs. 02.1 million. During the year under review,
the Company made payments aggregating to Rs. 2214.5 millions by way of central,
state and local taxes and duties as against Rs.1841.7 millions in the previous
year.
Subsidiaries
The Company has
four subsidiaries, viz. two direct wholly-owned subsidiaries, Titan
TimeProducts Limited and Titan
International Holdings
BV, Amsterdam (TIHBV) and two other subsidiaries, viz. Titan Brand Holdings NV,
Curacao (TBHNV) and Titan Watch Company Limited, Hongkong (TWCL). Titan Brand
Holdings'NV is a direct subsidiary but not wholly-owned and TWCL is a deemed
subsidiary as it is a subsidiary of TIHBV.
Titan Timeproducts
Limited sold 64.66 lakh Electronic Circuit Boards during the year and made a
net profit of
Rs. 521.7 millions
Its products continue to be of an exceptionally high quality and are produced
at reasonable costs, comparable with international prices. Both TIHBV and TBHNV
made a small profit during the year. No dividend has been declared. TWC
continues to be inactive and had no income or expenses, and this situation will
continue as the Company has directly opened a sourcing office in Hongkong. As
per Section 212(1) of the Companies Act, 1956, the Company is required to
attach to its Accounts the Directors' Report, Balance Sheet and Profit and Loss
Account of each of these subsidiaries. As the consolidated accounts present a
complete picture of the financial results of the Company and its subsidiaries,
the Company had applied to the Central Government seeking exemption from
attaching the documents referred to in Section 212 (1). Approval for the same
has been granted. Accordingly, the Annual Report of the Company does not
contain the individual financial statements of these subsidiaries, but contains
the audited consolidated financial statements of the Company and its
subsidiaries. The Annual Accounts of these subsidiary companies, along with the
related information, is available for inspection at the Company's registered
office and copies shall be provided on request. The statement under Section 212
(1)(e) of the Companies Act, 1956, is annexed together with the Annual Accounts
of the Company.
International
Operations
The Company
achieved an export turnover of Rs.880 millions during the year. Titan
International (Middle East) FZE (TIME), the associate company which markets our
products in the Middle East and
Titan Watches
& Jewellery International (Asia Pacific) Pte Limited (TAPL), the associate
company in
Associate
Companies
Samrat Holdings
Limited (the erstwhile RDI Print & Publishing Limited) made a profit after
taxes of Rs. 60.3 millions for the year. It declared and paid an interim
dividend of 200% in February 2006.For the past three years, Titan Properties
Limited has been working on a proposal to dispose of its property in
Outlook for
2006-07
The Company's
on-going initiatives to improve its operations have already started yielding
results, with an all time
high profit
recorded by the Company in the year 2005-06. During the current year, the
domestic watch division is
pursuing
aggressive growth in the main stream brands viz; Titan, Sonata and Fastrack,
while adding turnover through new initiatives like Xylys, Sunglasses and
licenced brands. The Jewellery division has set itself a very ambitious growth
target, through various key initiatives including strengthening the
merchandising mix for wedding and high value jewellery, launching of new
studded collections and localising the marketing efforts significantly. The
year 2005-06 saw the formation of the International Business Division for an
unified approach to building market presence across diverse geographies. This
division will continue its efforts to create impact in the market place through
retailing initiatives and creation of new exclusive products for international
markets.
The Economy - an
overview:
The world's
largest democracy and free market continues to shine as well as smile in spite
of occasional hiccups. The country's GDP has for the first time in the last ten
years experienced a consistent average growth rate of 8% per annum. However the
last time when it happened in the mid nineties, the investment rates were
significantly lower, which projected a GDP growth rate of only 6 - 6.5%. This
is the key driver of progress and it is crucial that investment rates are
increased so as to sustain an annual GDP growth rate of 8%.
The scenario
inspite of some ifs and buts, generally promises to be optimistic and is likely
to lead to progressive
reforms, reduction
in tariffs, growing Foreign Direct Investment (FDI) and more importantly, a
much needed thrust in infrastructure, and if all these fall into place, then
the country's economy will be on a sustained high.
The risk factors
that could spoil the party arise from the fact that
Business Overview
- best ever performance
Titan Industries
clocked its best ever performance in the year ended 31st March 2006 with a
sales growth of 30% and nearly a threefold increase in profit after taxes.
Japanese watch production (complete watches plus movements) decreased by about
2% in volume to 724 million units and 5% in value terms, when compared to the
previous year. The growth rates of the Japanese giants Citizen and Seiko were
single digit increases in the spectrum of 3 - 4%. In comparison, the Swatch
Group grew by over 8% and has confidently set its eyes in expanding and
consolidating its operations in
Brand Titan:
2005-06 was a
superlative year for brand TITAN. It saw the most admired brand clock in a
pacesetting 23% growth in topline over the previous year. This increase in
sales reflected the retail sales growth seen in the World of Titan showrooms as
well as multi-branded watch outlets. The dramatic growth was fuelled by
sustained marketing campaigns throughout the year, which targeted specific
needs of consumer segments, e.g. the Gold & Steel launch, the Fastrack
re-launch and the Titan Wall Street and RAGA campaigns. During the year, a
record 116 new products were launched in the Titan product portfolio. The brand
scaled new heights in imagery and customer satisfaction scores, leading to a
growth in brand preference, loyalty as well as market share. The later part of
the year also saw the high profile launch of XYLYS, a new brand in the fast
growing premium "Swiss Made" market segment. The brand was launched
in Mumbai,
rolled out to the
remaining top 8 towns in the first half of 2006-07. This brand targets the
growing breed of young,
affluent,
fashionable yet discerning consumers, who seek to make a sophisticated style
statement by the watches
they wear.
SOME RISKS AND
CONCERNS
In the watch
industry, market saturation for the product category is a risk in the long term
which is being addressed through brand extensions to other product categories
such as sunglasses and other synergistic personal wear/ accessories. The grey
market continues to be a threat for gaining market share in the watch segment.
Possible technological obsolescence in the product category is a risk to reckon
with, which is being dealt with by the Company by attempting to enrich watches
functionally by adding more features.
The gold price
volatility continues to be a risk factor as the volatility has increased in the
recent past due to international demand/supply being affected by multifarious
factors including the weakening/hardening of global currencies, interest rates
and gold hoarding, as an investment option. The hedging techniques are being
refined and upgraded to dealwith, both the quantum of exposure and the
increasing susceptibility to price volatility, in the form of availing a metal
loan to the maximum extent possible and entering into derivative contracts for
the balance exposure. The competition risk exacerbated by a geo political risk
in the
The Precision
Engineering Division is yet to stabilize and generate full year revenues which
are in turn dependent on the pace of productionising the components
/sub-assemblies in the aerospace and automotive segments. The Division's
break-even and cash flow are being delayed due to intermediate stages ranging
from development of toolings, approval of proto-types and productionising the
orders on hand from captive customers. The lead time for catering to orders on
hand has increased and is a risk in the near term to the extent of cost and time
overruns in the execution of orders, resulting in delayed billings thus
contributing to lower top-line than estimates.The withdrawal of Excise duty as
well as Income Tax exemptions from some of the areas of our operations in
Dehradun, where it was previously exempted, is an unfortunate and disappointing
development, which we are representingagainst at the highest level. Categories
of shareholdings as on march 31, 2006
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 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.40.97 |
|
|
1 |
Rs.80.73 |
|
Euro |
1 |
Rs.54.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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 |
|