MIRA
INFORM REPORT
|
Report Date : |
30.8.2007 |
IDENTIFICATION DETAILS
|
Name : |
PHILIPS
ELECTRONICS INDIA LIMITED |
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Registered Office : |
7, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
31.01.1930 |
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Com. Reg. No.: |
21-6663 |
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CIN No.: [Company
Identification No.] |
U31902WB1930PLC006663 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP17956B |
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PAN No.: [Permanent
Account No.] |
AACCKO806B |
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Legal Form : |
A closely held
public limited company since all the shares in the market has been bought by
Philips, |
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Line of Business : |
Manufacturer of Electronic Products. |
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 30000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company is a
subsidiary of Koninklijke Philips Electronics N.V., a multi-national entertainment
giant. Available information indicates high financial responsibility of the
company. Trade relations are fair. Payments are reported as correct and as
per commitments. The company can
be considered good for any normal business dealings at usual trade terms and
conditions. The company is
now wholly owned company of Philips Holland. |
LOCATIONS
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Registered Office : |
7, |
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Tel. No.: |
91-33-24753621/24753627/24964560/26912000 |
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Fax No.: |
91-33-24753839/24938722/26912499 |
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E-Mail : |
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Website : |
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Area : |
Owned |
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Location : |
Commercial |
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Corporate Office : |
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Tel. No.: |
91-22-26912000 |
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Fax No.: |
91-22-26912499 |
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Plants Locations
/ Warehouse : |
Lamp Factory, Kalwa
Kalwa Light
Factory, 3, MIDC, Industrial Area, Thane-Belapur Road, Post Box No. 79, Thane
- 400 601, Maharashtra, India Tel. No.
91-22-27600300-304 Fax No.
91-22-27600312 / 313 Consumer Electronics Factory, Pimpri
Plot 80, Bhosari
Industrial Estate, P. O. Box No. 12, Pune - 411 026, Tel. No.
91-20-27120541 (10 Lines) Fax No.
91-20-27122049 Enabling Technologies Group, loni
Loni Kalbhor -
412 201 (Near Pune Central Railway), Tel. No.
91-20-26913156 Enabling Technologies Group. Kolkata
4 & 5, Tel. No.
91-33-22447120 / 8243 / 1335 Fax No.
91-33-22440012 Luminaire Business Unit
P/65, Tel No.
91-33-24014245 / 4 Taratolla Light Factory
I, Tel. No.
91-33-24695446/24695466 Fax. No.
91-33-24692197 Mohali Light Factory
Phase IX,
Industrial Focal Point, SAS Nagar, Mohali, Chandigarth – 160062, Tel. No.
91-712-2211137 Fax. No.
91-172-2121685 Vadodara Light Factory
Kural Village, Tel. No.
91-2662-242333 (5 Lines) Fax. No.
91-2662-242308 |
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Regional
Offices / Branch : |
Northern Region 9th Floor, Ambadeep, 14, Kasturba Gandhi Marg, Tel. : 91-11-2373 8616 Fax : 91-11-2373 8570 Eastern Region 7, Tel.: 91-33-2475 3621 Fax : 91-33-2475 3839 Western Region Tel.: 91-22-6691 2000 Fax : 91-22-6691 2499 Southern Region Tel. 91-44-6650 1000 Fax : 91-44-6650 1085 Royal Philips Electronics Koninklijke Philips Electronics N. V. Breitner Center, Amstelplein2,
1096 BC Amsterdam, P. O. Box 77900,
1070 MX Amsterdam, The Netherlands Tel.-.31-20-5977777 |
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Overseas
Offices : |
Royal Philips
Electronics, Koninklijke Philips, Amstelplein 2, |
DIRECTORS
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Name : |
Mr. S. M. Datta |
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Designation : |
Chairman |
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Name : |
Mr. K. Ramchandran |
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Designation : |
Vice Chairman and Managing Director |
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Address : |
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Qualification
: |
BE (Hons) MBA - IIM (Kolkata) |
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Date of Appointment
: |
17/05/1993 |
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Previous
Employment |
Voltas Limited |
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Name : |
Mr. Cornells J. M. Reuvers |
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Designation : |
Executive Director |
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Name : |
Mr. S. Venkataramani |
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Designation : |
Executive Director |
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Name : |
Mr. Alexius Collette |
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Designation : |
Executive Director |
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Name : |
Mr. Vineet Kaul |
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Designation : |
Executive Director |
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Name : |
Mr. Rajeev Bakshi |
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Designation : |
Non Executive Director |
KEY EXECUTIVES
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Name : |
Mr. R. J. Wani |
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Designation : |
Company Secretary |
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Name : |
Mr. Datye VS |
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Designation : |
Senior General
Manager- HTP |
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Name : |
Mr. Desai R. A. |
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Designation : |
Senior General
Manager – Lighting |
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Name : |
Mr. Gupta V. K. |
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Designation : |
Senior General
Manager – Lighting |
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Name : |
Mr. Arun Maira |
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Designation : |
Director |
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Name : |
Mr. Kaul Vineet |
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Designation : |
Director and
Senior Vice President – HRM |
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Name : |
Mr. Kohli Sudhir |
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Designation : |
General Manager –
CE |
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Name : |
Mr. Majmudar T.
K. |
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Designation : |
General Manager –
DAP |
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Name : |
Mr. Mallick
Santanu |
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Designation : |
Senior General
Manager – F and A Lighting |
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Name : |
Mr. Nandakishore
R. |
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Designation : |
Senior General
Manager – Lighting Commercial |
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Name : |
Mr. Nambissan
Ashok |
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Designation : |
Senior General
Manager – ICI India Limited Legal and Sec and
General Counsel |
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Name : |
Mr. Ramachandran K. |
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Designation : |
Vice Chairman and
Managing Director |
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Name : |
Mr. Sharma Rakesh |
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Designation : |
Vice Chairman and
Managing Director |
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Name : |
Mr. Subramanian
Soundarajan |
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Designation : |
Industrial Head –
Chief Executive |
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Name : |
Mr. Sukumaran
Suresh |
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Designation : |
Senior General
Manager – Chief Executive |
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Name : |
Mr. S. Talwar |
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Designation : |
Industrial Head –
Lighting |
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Name : |
Mr. Vaidya Anil
V. |
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Designation : |
Senior General Manager
– IT |
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Name : |
Mr. Vankatramani.
S. |
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Designation : |
Director and
Senior Vice President Lighting |
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Name : |
Mr. Agarwal
Sudhir |
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Designation : |
Senior General
Manager – Chief Executive |
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Name : |
Mr. Chopra Rejeev |
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Designation : |
Senior General
Manager – Luminaries |
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Name : |
Mr. Inglis John
Bruce |
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Designation : |
Director and
Senior Vice President – Finance |
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Name : |
Mr. Karwal Rajeev |
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Designation : |
Senior Vice
President – Chief Executive |
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Name : |
Mr. Saharsrabudhe
MV |
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Designation : |
Senior General
Manager – Chief Executive |
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Name : |
Mr. Sengupta S. |
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Designation : |
Senior General
Manager – Projects |
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Name : |
Mr. Shivakumar D. |
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Designation : |
Vice President –
Chief Executive |
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Name : |
Mr. Srinivasant
R. |
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Designation : |
Senior General
Manager – F and A CE |
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Name : |
Mr. Van Heumen
Geet A. M. |
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Designation : |
Director and
Senior Vice President - Finance |
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Name : |
Mr. Ashok Nambissan |
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Designation : |
Senior General
Manager - Legal and Sec and General
Council |
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Qualification
: |
B. L.., BCL, Dip
PM |
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Date of
Appointment : |
28/06/1999 |
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Previous
Employment |
ICI India Limited
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Name : |
Mr. Geert A. M. Van
Heumen |
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Designation : |
Director and
Senior Vice Presidence - Finance |
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Qualification
: |
H.B. S.
Coml./Economical SPD (equive to IMCA/ACCA), Additional Cournces in Marketing,
I. T. Logs, Finance and General Marketing |
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Date of
Appointment : |
01/08/2000 |
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Previous
Employment |
KPENY |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Electronic Products. |
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Products : |
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Brand Names : |
“PHILIPS” |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash, Credit and
L/C |
PRODUCTION STATUS
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Electronic Components |
Pcs. in ‘000 |
6000 |
-- |
-- |
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Television
receivers |
Pcs. in ‘000 |
250 |
-- |
-- |
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Radio Sets, Tape Recorders, Compact Disc Players/ Systems/Combination
Sets |
Pcs. in ‘000 |
1500 |
-- |
-- |
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Lamps |
Pcs. in ‘000 |
511171 |
345083 |
327552 |
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Glass Shells |
Pcs. in ‘000 |
146230 |
547976 |
518135 |
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Filaments |
Pcs. in ‘000 |
750000 |
450000 |
433698 |
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Molybdenum Wire |
Kgs. |
12000 |
12000 |
119 |
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Accessories for Fittings |
Pcs. in ‘000 |
7500 |
7500 |
3096 |
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Electronic HF Ballasts |
Pcs. in ‘000 |
150 |
1500 |
895 |
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Electro Medical Apparatus |
Pcs. |
24615 |
24615 |
-- |
GENERAL INFORMATION
|
Suppliers : |
Ø
3 M
Silition Ø
Aakar
Arts Ø
Aarkay
Lamp Components Ø
Aarkay
Minerals Ø
Ache
Appliances Private Limited Ø
AGL
Electronics Corporation Ø
BDJ
Stamping Industries Ø
Dheeraj
Industries Ø
Eagle
Constructions Ø
Electrical
Components Manufacturing Company Ø
Engineering
Equipment Corporation Ø
Gurnath
Engineers Ø
Fates
Electrical Ø
Jain
Auto Industries Ø
Janaki
Engineering Ø
Khosla
Engineering Private Limited |
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Customers : |
Manufacturers,
Wholesalers and Government Bodies |
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No. of Employees : |
3403 |
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Bankers : |
Ø
Punjab
National Bank, Kolkata, West Ø
Corporation
Bank, Kolkata, West Ø
ABN
Amro Bank N.V., Kolkata, West Ø
Standard
Chartered Grindlays Bank, Kolkata, West Bengal, Ø
Citibank
N A, Kolkata, West Ø
Bank
of |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
Bharat S. Raut
and Company Chartered
Accountants |
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Holding Company: |
Ø
Koninklijke
Philips Electronics N. V Breitner Centre, Amstelplein2, I096, BC
Tel. No. 31-20-5977777 Fax No. 31-20-597 7150 |
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Membership: |
Confederation of
Indian Industry |
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Parent Company
: |
Koninklijke
Philips Electronics N. V. (KPENV) Breitner Center,
Amsteiplein 2, 1096 BC, Amsterdam, P O Box # 77900, 1070 MX, Amsterdam, the
Netherlands Tel No. :
31-20-5977777 |
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Subsidiaries : |
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Associates: |
Hind Lamps Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
92000000 |
Equity Shares |
Rs. 10/- each |
Rs. 920.000 millions |
|
20000000 |
Non -convertible cumulative redeemable preference shares |
Rs. 10/- each |
Rs. 200.000 millions |
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Total |
|
Rs. 1120.000 millions |
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Issued, Subscribed
& Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
70260733 |
Equity Shares |
Rs.10/- each |
Rs. 703.000 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
703.000 |
703.000 |
703.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6974.000 |
5005.000 |
4326.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7677.000 |
5708.000 |
5029.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
70.000 |
83.000 |
90.000 |
|
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2] Unsecured Loans |
38.000 |
36.000 |
33.000 |
|
|
TOTAL BORROWING |
108.000 |
119.000 |
123.000 |
|
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DEFERRED TAX LIABILITIES |
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|
|
|
|
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|
|
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TOTAL |
7785.000 |
5827.000 |
5152.000 |
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APPLICATION OF FUNDS |
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|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
2295.000 |
2737.000 |
2671.000 |
|
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Capital work-in-progress |
366.000 |
134.000 |
166.000 |
|
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|
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INVESTMENT |
11.000 |
11.000 |
11.000 |
|
|
DEFERREX TAX ASSETS |
254.000 |
268.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1902.000
|
2243.000 |
2519.000 |
|
|
Sundry Debtors |
2687.000
|
3595.000 |
2822.000 |
|
|
Cash & Bank Balances |
5178.000
|
1528.000 |
1999.000 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1399.000
|
1294.000 |
1611.000 |
|
Total
Current Assets |
11166.000
|
8660.000 |
8951.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
4889.000
|
4825.000 |
6023.000 |
|
|
Provisions |
1418.000
|
1158.000 |
624.000 |
|
Total
Current Liabilities |
6307.000
|
5983.000 |
6647.000 |
|
|
Net Current Assets |
4859.000
|
2677.000 |
2304.000 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7785.000 |
5827.000 |
5152.000 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
|
Sales Turnover |
26111.000 |
28003.000 |
24364.000 |
|
|
Other Income |
132.000 |
17.000 |
0.000 |
|
|
Total Income |
26243.000 |
28020.000 |
24364.000 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
3029.000 |
983.000 |
1492.000 |
|
|
Provision for Taxation |
899.000 |
176.000 |
463.000 |
|
|
Profit/(Loss) After Tax |
2130.000 |
807.000 |
1029.000 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
454.000 |
1011.000 |
0.000 |
|
|
Service Revenue etc. |
4345.000 |
4161.000 |
0.000 |
|
Total Earnings |
4799.000 |
5172.000 |
0.000 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
1222.000 |
1896.000 |
0.000 |
|
|
Stores & Spares |
21.000 |
24.000 |
0.000 |
|
|
Capital Goods |
91.000 |
170.000 |
0.000 |
|
|
Others |
102.000 |
121.000 |
0.000 |
|
Total Imports |
1436.000 |
2211.000 |
0.000 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Material cost |
14308.000 |
16365.000 |
|
|
|
Expenses |
9826.000 |
9937.000 |
22220.000 |
|
|
Interest |
45.000 |
61.000 |
|
|
|
Depreciation /
Amortisation |
603.000 |
617.000 |
|
|
Total Expenditure |
24782.000 |
26980.000 |
22220.000 |
|
KEY RATIOS
|
PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
|
Debt Equity Ratio |
0.02 |
0.02 |
0.03 |
|
Long Term Debt Equity Ratio |
0.02 |
0.02 |
0.03 |
|
Current Ratio |
1.63 |
1.41 |
1.31 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
3.88 |
3.95 |
3.45 |
|
Inventory |
12.78 |
11.92 |
11.44 |
|
Debtors |
8.43 |
8.77 |
10.67 |
|
Interest Cover Ratio |
33.87 |
17.11 |
32.74 |
|
Operating Profit Margin (%) |
8.03 |
5.82 |
9.09 |
|
Profit Before Interest and Tax Margin (%) |
5.75 |
3.68 |
6.52 |
|
Cash Profit Margin (%) |
6.08 |
4.99 |
6.93 |
|
Adjusted Net Profit Margin (%) |
3.81 |
2.84 |
4.36 |
|
Return on Capital Employed (%) |
22.47 |
19.20 |
35.00 |
|
Return on Net Worth (%) |
15.13 |
15.35 |
24.54 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.105.45 |
|
Low |
Rs.99.00 |
LOCAL AGENCY FURTHER INFORMATION
History
Philips
Its consumer electronic products are manufactured at its plants in Pimpri and
Kolkatta. Electronic components, passive devices and printed circuit boards for
consumer electronic products are manufactured at Loni, Pune. The company
supplies components to other companies as well. The Kalwa (Thane) plant
manufactures a range of lamps such as GLS lamps, fluorescent lamps, mercury
vapour/sodium vapour lamps and their components such as glass shells, filament
wires, etc.
The company diversified into the telecommunications segment to manufacture
two-way radios and pagers. It set up a joint venture project with Webel
Telecommunications in
Philips
The parent company, Royal Philips Electronics N.V Netherlands, had made an open
offer to buy Philips
The Amalgamation of Philips Glass India Limited, Electric Lamp Manufacturers (
The Directors submit their report and audited accounts for
the year ended December 31, 2006.
The Indian economy appears set on a sustainable high-growth trajectory with GDP
growth averaging 8% over the last four years. In the first nine months of the
current fiscal year, industrial production has grown 10.8% reflecting continued
economic buoyancy. The strong surge in domestic consumption in the housing,
automotive and consumer durable sectors is a signal of overall optimism and
confidence in the economy. Higher foreign direct investment inflows, growing
savings rate and the anticipated larger government outlays in agriculture,
health and the social services support growth momentum. However concerns over
inflation and the Central bank's monetary policies could contain credit
availability in the coming year thereby moderating growth.
Sales for the year ended December 31, 2006 fell marginally
by 7%, from Rs.28,389 million to Rs 26,486 millions. All the businesses
reported robust growth in sales, except for Consumer Electronics. Medical
Systems which grew by 22%, Domestic Appliances and Personal Care, which grew by
19% and Lighting which grew by 12%, were the strong performers during the year
2006. Despite the drop in sales, operating profit increased by 40% on the back
of profitable growth of the Lighting and Software businesses. Exceptional items
for the year include profits of Rs.1,261 millions on account of sale of
Semiconductors and Speaker Systems businesses, profits of Rs. 362 millions on
sale of assets and a charge of Rs 79 millions under Employees' Voluntary
Retirement Scheme.
Business
Manufacturing and
Selling of electronic components, printed circuit boards, precision metal piece
parts, radio sets, tape recorders and combination sets, colour television
receivers, public address systems and professional grade microphones,
electronic measuring instruments, lamps, glass shells, glass tubings,
fluorescent powder, filaments, tungsten wire, molybdenum wire, dumet and other
component wires, burners for MV lamps, burners for SON lamps, diamond dies,
fittings, accessories for fittings, electro medical apparatus, specialised
tools and injection moulded engineering industrial plastic products.
BUSINESS
PERFORMANCE:
The Notes to the Profit and Loss Account for the year provide segment results.
Required disclosures are made below for Lighting, Consumer Electronics, the
Innovation Campus (Software), Medical Systems and Domestic Appliance and
Personal Care division.
LIGHTING:
The Division enjoyed double-digit growth, making it the fifth consecutive year
of growth. Overall the Division sales grew by 12%, with the Automotive,
Lighting Electronics, Luminaires and Lamps businesses growing at healthy rates.
Market shares increased in these business groups, giving the division an
overall share of close to 30% in a growing market, where existing lighting and
new non-lighting players are making their presence felt with new products and
increasing their production capacities.
Compact Fluorescent Lamps (CFL) led growth in the lamps segment The excellent
growth in CFL was also in line with the energy conservation initiatives taken
by various state governments/energy conservation authorities. The rural market
strategy envisaged a few years ago continues to help the business sustain its
growth ambitions. Regular introduction of new and cost-competitive products
from the Luminaires and Lighting Electronics groups have helped these
businesses to grow and maintain market leadership. The Division executed some
key lighting projects across the country including the one at the
The Division remains committed to cost, quality and process improvements.
The outlook for 2007 remains positive and the Division expects to sustain
growth through increased market penetration, new and cost-competitive products
and increased focus on energy saving products.
CONSUMER ELECTRONICS:
The Entertainment Solutions portfolio had a tough first half in 2006, with
business performance declining on account of high stocks in channel, large
volumes of slow moving models and pricing issues. However corrective actions
during this period resulted in the second half of 2006 showing marked
improvement with a growth of 2% in value which was in line with the market. The
DVD and Home Theatre segments recovered quickly with the introduction of a
feature-packed new range and localisation of products. Market shares improved
in the second half of 2006.
Overall, at the close of 2006, the Entertainment Solutions business reported a
higher profitability as compared to 2005. The thrust for the coming year will be
in Home Theatres and Portable Digital Audio MP3 Players in addition to the
Accessories business. DVD-HDD is also slotted for a test launch in 2007, with
the objective of driving innovations to the top end in the DVD segment.
The Colour Television industry showed a value growth of 8.8% in 2006 helped by
a shift in consumer preferences towards Flat and Large Screen Televisions, as
well as LCD. However the Industry continues to face sharp ,price erosion,
especially in Real Flat CRT and LCD segments, resulting in pressure on margins.
To improve cost competitiveness and respond to emerging market trends,
localisation of LCD TV manufacturing and a change to localised designs in CRT
is planned for 2007, with a strong business focus on the fast growing Flat Television
and LCD segments.
MEDICAL SYSTEMS:
The Medical Systems Division operates in the Diagnostic Imaging segment, which
includes CT, MRI, X-rays, Cardiovascular System, Nuclear Medicine, PET-CT and
Ultrasound Imaging Systems, and is also a significant player in patient
monitoring. The total business in 2006 amounted to Rs 2,804 million-a growth of
around 22%.
In 2006, the Division recorded strong growth in most business lines, winning
major contracts across its entire product range, including those from major
private hospital groups as also from large Government postgraduate teaching
hospitals. Strong account management backed by excellent customer focus has
been the key success factors of the year. There was excellent growth in
Magnetic Resonance Imaging (MRI) business during the year in both 1.5 and 3
Tesla segments. Cardiac Computerised Tomography (CT) systems continued to do
well during 2006, maintaining a market share of around 30%. The CMS/Patient
Monitoring business continued to retain dominant market position with the sale
of 1,200 units of the newly-launched 'Suresigns VM series monitors'.
Cardiovascular and 4-dimension systems contributed to the success of the
Ultrasound equipment group in 2006. The Customer Support group has performed consistently
well, meeting and often exceeding customer expectations, resulting in good
loyalty-based repeat orders.
Customer purchasing patterns are changing and an increasing number of decisions
are now based on lifecycle costs, putting pressure on margins. With a CAGR in
revenues of 8-10%, the Medical Systems Division is looking forward to
continuing its growth initiatives successfully in 2007.
DOMESTIC APPLIANCES and PERSONAL
CARE:
The Domestic Appliances and Personal Care Division sales grew by more than 19%
during the year when the overall market grew by around 6.5%. The Kitchen
Appliances segment grew by more than 25%, contributed mainly by high end Mixer
Grinders and Toasters. Growth in Shavers was also substantial and several new
products from the international range were introduced in the last
quarter.
Philips maintained its overall No. 1 brand position in the addressable market
segment. The year was characterised by steep increases in raw material prices
which, to some extent, affected growth. Although margins continued to be under
pressure, the Division was able to maintain its profitability.
The outlook for 2007 is one of stronger growth and continued emphasis on Key
Accounts.
INNOVATION CAMPUS:
Philips Innovation Campus (PIC) has built up extensive know-how
and expertise in the software engineering and technology domains for lifestyle
and healthcare products. During the year the strength of the Medical group
increased and more growth is expected in future. However, there were reductions
in the Consumer Electronics (CE) group. PIC further extended its area of
operations to cover business application development for various Philips
organizations.
The divestment of the erstwhile Semiconductor Division was completed at the end
of September 2006. Consequent to the divestment, PIC's strength at the end of
2006 was 949 as compared to 1,656 at the end of 2005. The retention rate
remained reasonable as compared to the IT industry average. Sales (total
deliveries) amounted to Rs 3,843 millions as compared to Rs.3,558 millions in
2005, a nominal increase of 8% over the previous year. However, on a comparable
basis the deliveries recorded an increase of 21% over the previous year. The CE
and Medical groups of PIC were evaluated to be performing at CMMI Level 3
standards.
BUSINESS RESTRUCTURING:
The Semiconductor Business was divested to Philips Semiconductors India Private
Limited (now known as NXP Semiconductors India Private Limited) with effect
from October 1, 2006, at a total consideration of Rs.1,917 million. The Speaker
Systems group forming a small part of the Consumer Electronics Division, was
transferred to Premium Sound Solution Private Limited on December 27, 2006, at
a consideration of Rs.96 million.
The Lighting
division maintained its contract record of being the preferred supplier of high
quality lighting systems to prestigious projects :
> The
> The Guru Nanak Stadium
> The
> The Road Lighting Project in Navi
Mumbai
>
It also has
partnership with Infosys Technologies Limited.
|
Business
Segments |
Type of products
/ services |
|
a. Lighting |
Lamps, Glass shells,
Fittings, Accessories for fittings, Electronic HF Ballasts |
|
b. Consumer
Electronics |
Radio sets, tape
recorders, compact /digital video disc players/ systems and combinations
sets, Accessories for radio sets and tape recorders, Television receivers,
Monitors. |
|
c. Software
development services |
Development of
embedded software. |
|
d. Medical
systems |
Medical
electronics equipment |
|
e. Other
segments |
Domestic
appliances and Service Revenue etc |
Fixed Assets
Intangibles
- Software
Land
Buildings
Leaseholds
-Land
- Improvements
- Other assets
Machinery and equipment
Furniture and fittings
Vehicles
Trade Reference:
Ø
Jain
Auto Industries
Ø
Sri Ram
Industries
Ø
Asian
Magnetic Devices Private Limited
Ø
Khosla
Engineering Private Limited
Ø
National
Torch and Tubes
Ø
Water
Proof Corporation Private Limited
Ø
Ø
ELF
Filaments Industries Private Limited
Ø
Print
Aakar Private limited
Ø
Megh
Pack Industries
Ø
Mathure
Fluxes
Ø
Crown
Engineering Enterprises
Ø
Meet
Engineering Private Limited
Ø
Wolfarm
Moly Products
Ø
Crown
Packaging Private Limited
Ø
Nirmal
Arts
Ø
Sehmbey
Products
Ø
Shree
Santram Engineers
Ø
Tirupati
Plastic Private Limited
Ø
Ø
R. R.
Polymer
Ø
Vallabh
Chips Industries
Ø
Shree
Padmavati Minerals
Ø
Rachita
Minerals
Ø
Aarkay
Chemicals
Ø
Aarkay
Lamp Components
Ø
Shivam
Industries
Ø
Ashok
Industries
Ø
Crown Engineering
Ø
Techno
Corporation
Ø
3 Mall
Solition
Ø
Wellman
inc
Ø
Parekh
Industries
Ø
Primax
Engineers
Ø
Reliable
Enterprises
Ø
Suhani
Enterprises
Ø
Ache
Appliances Private Limited
Ø
Fates
Electrical
Ø
Electrical
Components Manufacturing
Ø
Fluro
Lighting Private Limited
Ø
Mitcom
Jyoti
Ø
Niroma
Industries
Ø
Power
Accessories
Ø
Raj
Luxmi Poly Plast Enterprise
Ø
Non-Ferrous
Casting and Company
Ø
Avinash
Engineering
Ø
Dheeraj
Industries
Ø
Eagle
Electronics
Ø
Gurunath
Engineers
Ø
Vidyut
Teletronics Limited
Ø
Wizard
India Limited
Ø
Seven
Seas Incorporate
Ø
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.40.96 |
|
|
1 |
Rs.82.55 |
|
Euro |
1 |
Rs.55.96 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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 |
|