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MIRA
INFORM REPORT
|
Report Date : |
01.09.2007 |
IDENTIFICATION
DETAILS
|
Name : |
REDINGTON ( |
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Registered
Office : |
SPL Guindy House,
95, |
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Country : |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
28.09.1994 |
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Com. Reg. No.: |
18-28758 |
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CIN No.: [Company Identification No.] |
U52599TN1994PLC028758 |
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TAN No.: (Tax
Deduction & Collection Account No.) |
CHER00540B |
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PAN No.: (Permanent
Account No.) |
AABCR0347P |
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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 : |
Trading, Importing
and Distributing of Computers, Computer Peripherals, Printers, Plotters and
Spares including after sales service. |
RATING &
COMMENTS
|
MIRA’s Rating
: |
Aa |
RATING |
STATUS |
PROPOSED
CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable
to meet normal commitments. |
Satisfactory |
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Maximum Credit
Limit : |
USD 21000000 |
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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 having fine track. Trade relations are fair.
Financial position is good. Payments are correct and as per commitments. The company is
doing very well. It can be regarded as a promising business partner in a
medium to long run. |
LOCATIONS
|
Registered
Office : |
SPL Guindy House,
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|
Tel. No.: |
91-44-22353313/14/15/16/17/18/42243281/42243499/
52243535 |
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Fax No.: |
91-44-22352790 |
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E-Mail : |
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Website : |
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Sales And
Service Centres: |
Located at : v
Chennai v
Hubli |
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Branches : |
Located at : v Uttar Pradesh v Rajasthan v Uttaranchal v Kolkata v Orissa v Guwahati v Karnataka v Mumbai v Pune v Tamilnadu |
DIRECTORS
|
Name : |
Mr. M.
Raghunandan |
|
Designation : |
Executive Director |
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Address : |
22, |
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Date of Birth
: |
01.11.1947 |
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Date of
Appointment: |
01.03.1999 |
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Name : |
Mr. R.
Jayachandran |
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Designation : |
Non Executive Director |
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Address : |
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Date of Birth
: |
27.04.1944 |
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Date of
Appointment: |
15.10.1993 |
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Name : |
Mr. R. Srinivasan |
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Designation : |
Managing Director |
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Address : |
15 |
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Date of Birth
: |
28.06.1946 |
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Date of Appointment: |
15.10.1993 |
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|
Name : |
Mr. R. Vijayaraghavan |
|
Designation : |
Independent Director |
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Address: |
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Date of Birth
: |
02.01.1950 |
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Date of
Appointment: |
11.09.1995 |
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|
Name : |
Mr. HU Jialung |
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Designation : |
Non Executive Director |
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Address: |
19th Floor, |
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Date of Birth
: |
23.02.1942 |
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Date of
Appointment: |
30.12.2004 |
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|
Name : |
Mr. Huang Chi Cheng |
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Designation : |
Non Executive Director |
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Address: |
2nd Floor, No. 9 Lane, 139 Sec |
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Date of Birth
: |
26.03.1957 |
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Date of
Appointment: |
30.12.2004 |
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|
Name : |
Mr. Raj Shankar |
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Designation : |
Non Executive Director |
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Address: |
65, |
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Date of Birth
: |
19.06.1958 |
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Date of
Appointment: |
30.12.2004 |
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|
Name : |
Mr. Steven A Pinto |
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Designation : |
Independent Director |
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|
Name : |
Mr. J Ramachandran |
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Designation : |
Chairman (Non-Executive) |
KEY EXECUTIVES
|
Name : |
Mr. T. G. Janakiraman |
|
Designation : |
Company Secretary |
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|
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Name : |
Mr. M. Muthukumarasamy |
|
Designation : |
Company Secretary |
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|
Name : |
Mr. S. V. Krishnan |
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Designation : |
Secretary |
|
Address: |
02 8th Street, Flat No. C2, Ashreya Srinivas Apartments,
Nanganallur, Chennai – 600 064. |
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Date of Birth
: |
21.04.1973 |
|
Date of
Appointment: |
30.11.2002 |
SHAREHOLDING
PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoter Holding |
|
|
|
Foreign Bodies
Corporate |
33901595 |
43.54 |
|
Total of Promoter Holding |
33901595 |
43.54 |
|
Non Promoter Holding |
|
|
|
Institutions |
|
|
|
Mutual Funds/
UTI |
749254 |
0.96 |
|
Financial
Institutions / Banks |
14915 |
0.02 |
|
Foreign
Institutional Investors |
8136658 |
10.45 |
|
Non Institutions |
|
|
|
Bodies Corporate |
30320224 |
38.94 |
|
Indian Public |
3501627 |
4.50 |
|
NRI's/OCB's/Foreign
Nationals |
1151659 |
1.48 |
|
Others |
89814 |
0.11 |
|
Total of Non Promoter Holding |
43964151 |
56.46 |
|
Grand Total |
77865746 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Trading,
Importing and Distributing of Computers, Computer Peripherals, Printers,
Plotters and Spares including after sales service. |
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Products : |
Ø
Computer
Peripherals Ø
Services
income
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Agencies Held: |
Ø IBM Ø Intel Ø Avaya Ø HP Ø Epson Ø Compaq Ø Philips Ø Samsung Ø Microsoft Ø APC Ø CA Ø Microsoft Ø Kobian Ø Motorala |
GENERAL
INFORMATION
|
No. of
Employees : |
350 |
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Bankers : |
Ø Hongkong and Shanghai Banking Corporation
Limited 30, Rajaji Salai, Chennai - 600 001, Tamilnadu Ø Indus Ind Bank (Facility : Consolidating Limit Rs. 400 millions Ø
Citi Bank NA Ø
HDFC Bank
Limited 751-B, Anna Salai, Ø
State Bank
of Commercial Branch, Ø
ABN AMRO
Bank N.V. Ø
Bank of Ø
ICICI Bank
Limited Ø
IDBI Bank
Limited Ø
Kotak
Mahindra Bank Limited Ø
Standard
Chartered Bank Ø
Union Bank
of |
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Facilities: |
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Banking Relations : |
Good |
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Auditors : |
Deloitte Haskins
& Sells Chartered
Accountants |
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Address: |
2nd
Floor, “ |
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Tel. No.: |
91-44-52131124-28 |
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Fax No.: |
91-44-52131129 |
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Subsidiaries : |
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Holding
Company : |
Ø Redington ( III Floor, Les Cascade, Ø Redington Pte. Limited 1, Phillip Street, # 07-00, Ø Chanrai Investment Corporation Limited |
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Associate
Companies: |
Ø Redington Singapore Pte Limited Ø Kewalram Singapore Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8,50,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 850.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7,78,65,746 |
Equity Shares |
Rs. 10/- each |
Rs. 778.657 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF
FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
SHAREHOLDERS FUNDS |
|
|
|
|
1] Share Capital |
778.657 |
630.800 |
607.000 |
|
2) Advance Share Capital |
0.000 |
0.000 |
0.000 |
|
3] Reserves & Surplus |
4571.567 |
3045.400 |
2556.300 |
|
NETWORTH |
5350.224 |
3676.200 |
3163.300 |
|
LOAN FUNDS |
|
|
|
|
1] Secured Loans |
1243.215 |
805.200 |
375.400 |
|
2] Unsecured Loans |
1927.419 |
1188.200 |
749.000 |
|
TOTAL BORROWING |
3170.634 |
1993.400 |
1124.400 |
|
Finance Lease
Obligation |
0.415 |
0.000 |
0.000 |
|
DEFERRED TAX LIABILITIES |
10.207 |
0.000 |
0.000 |
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|
|
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TOTAL
|
8531.480 |
5669.600 |
4287.700 |
|
|
|
|
|
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APPLICATION OF FUNDS |
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|
|
|
|
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|
|
|
FIXED ASSETS [Net Block] |
297.111 |
206.400 |
149.100 |
|
Capital work-in-progress |
8.703 |
5.100 |
0.900 |
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|
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INVESTMENTS |
2380.773 |
1775.600 |
1589.300 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
Inventories |
2941.799 |
1779.500 |
951.900 |
|
Sundry Debtors |
5288.968 |
3443.100 |
2538.600 |
|
Cash & Bank Balances |
938.186 |
330.700 |
89.200 |
|
Loans & Advances |
845.869 |
801.100 |
493.800 |
|
Total Current
Assets |
10014.822 |
6354.400 |
4073.500 |
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
Current Liabilities |
3418.895 |
2236.500 |
1260.500 |
Provisions
|
751.034 |
435.400 |
264.600 |
Total
Current Liabilities
|
4169.929 |
2671.900 |
1525.100 |
Net Current Assets
|
5844.893 |
3682.500 |
2548.400 |
|
|
|
|
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TOTAL
|
8531.480 |
5669.600 |
4287.700 |
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|||
|
Sales Turnover |
47125.641 |
36926.600 |
25025.400 |
|||
|
Other Income |
49.611 |
882.600 |
223.400 |
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|
Total Income |
47175.252 |
37809.200 |
25248.800 |
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Profit/(Loss) Before Tax |
656.293 |
453.300 |
272.100 |
|||
|
Provision for Taxation |
232.111 |
161.900 |
99.500 |
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|
Profit/(Loss) After Tax |
424.182 |
291.400 |
172.600 |
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Earnings in Foreign Currency : |
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||
|
|
Claim Settlement
from Suppliers (Net) |
519.295 |
639.128 |
NA |
|
|
|
|
FOB Value of
Exports |
113.899 |
149.406 |
NA |
|
|
|
|
Interest from
Subsidiary |
7.381 |
1.747 |
NA |
|
|
|
Total Earnings |
640.575 |
790.281 |
NA |
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Imports : |
|
|
|
|
||
|
|
Trading Stocks |
11054.419 |
9641.415 |
NA |
|
|
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Total Imports |
11054.419 |
9641.415 |
NA |
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Expenditures : |
|
|
|
|||
|
|
Manufacturing Expenses |
0.000 |
23.400 |
18962.000 |
||
|
|
|
149.380 |
0.000 |
0.000 |
||
|
|
Administrative Expenses |
0.000 |
231.500 |
213.500 |
||
|
|
Raw Material Consumed |
45120.116 |
24295.900 |
0.000 |
||
|
|
Salaries, Wages, Bonus, etc. |
404.628 |
190.200 |
146.700 |
||
|
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Interest |
326.386 |
151.400 |
107.700 |
||
|
|
Depreciation & Amortization |
34.885 |
26.500 |
28.000 |
||
|
|
Other Expenditure |
483.564 |
57.800 |
0.000 |
||
|
Total
Expenditure |
46518.959 |
37355.900 |
24976.700 |
|||
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2007 |
|
Type |
|
|
1st
Qtr |
|
Sales Turnover |
|
|
12960.200 |
|
Other Income |
|
|
26.900 |
|
Total Income |
|
|
12987.100 |
|
Total Expenditure |
|
|
12687.200 |
|
Operating Profit |
|
|
299.900 |
|
Interest |
|
|
105.600 |
|
Gross Profit |
|
|
194.300 |
|
Depreciation |
|
|
09.300 |
|
Tax |
|
|
66.100 |
|
Reported PAT |
|
|
118.900 |
200706
Quarter 1 –
Expenditure Includes Cost of Goods Sold Rs 12342.20 million
Employee Cost Rs 148.80 million Other expenditure Rs 196.20 million Tax
indicates Tax expense including Fringe Benefit Tax & Deferred Tax EPS is
Basic & Diluted Status of Investor Complaints for the quarter ended June
30, 2007 Complaints Pending at the beginning of the quarter 04 Complaints
Received during the quarter 202 Complaints disposed off during the quarter 206
Complaints unresolved at the end of the quarter Nil 1. The consolidated
financial results have been prepared in accordance with Accounting Standard -
21 on Consolidated Financial Statements issued by the Institute of Chartered
Accountants of India and includes financial results of its wholly owned
subsidiaries viz. Cadensworth (India) Private Limited, Nook Holdings Private
Limited, Redington (India) Investments Private Limited and consolidated
financials of Redington Gulf FZE and its subsidiaries and Redington
Distribution Pte. Limited and its subsidiary. 2. The financial results have
been presented in the new format under Clause 41 of the listing requirement
although the revised format would become effective from the quarter ending
September 30, 2007. 3. Other income for the quarter includes Rs 15.50 million
on short-term deposits with banks out of IPO proceeds pending utilization. 4.
The proceeds of the initial public offer are being utilized for the purposes
stated in the offer document. 5. The Company primarily operates in the business
segment of distribution of information technology and related products and as
the turnover from other products handled by the Company like telecom, consumer
durables and other non-IT products are less than 10% of the total turnover,
there are no reportable segments to be disclosed as required under Accounting
Standard 17 'Segment Reporting'. Redington (India) Limited and its subsidiaries
(Group) operates in India, Middle East, Africa and Singapore and as the
turnover from the overseas operations constitutes more than 10% of the total turnover,
geographical segment has been considered as the primary segment for
consolidated financial results and necessary disclosures have been made 6. The
above results have been reviewed by the Audit Committee and taken on record by
the Board of Directors at their meeting held on July 25, 2007. 7. A Limited
Review has been carried out by the statutory auditors of the company on the
results for the quarter ended June 30, 2007. The consolidated financial results
include those relating to overseas subsidiaries, the financial results of which
have been reviewed by respective statutory auditors. 8. Previous period / year
figures have been regrouped to conform to the current period's classification.
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.57 |
0.46 |
0.43 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.09 |
0.26 |
|
Current Ratio |
1.36 |
1.55 |
1.97 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
102.21 |
103.20 |
83.36 |
|
Inventory |
19.96 |
27.04 |
28.76 |
|
Debtors |
10.79 |
12.35 |
12.90 |
|
Interest Cover Ratio |
2.85 |
2.99 |
2.80 |
|
Operating Profit Margin(%) |
2.22 |
1.92 |
1.80 |
|
Profit Before Interest And Tax
Margin(%) |
2.14 |
1.84 |
1.69 |
|
Cash Profit Margin(%) |
0.97 |
0.87 |
0.80 |
|
Adjusted Net Profit Margin(%) |
0.90 |
0.79 |
0.69 |
|
Return On Capital Employed(%) |
14.24 |
13.67 |
14.05 |
|
Return On Net Worth(%) |
9.40 |
8.52 |
8.20 |
STOCK PRICES
|
Face Value |
Rs.10.00/- |
|
High |
Rs.270.00/- |
|
Low |
Rs.265.00/- |
LOCAL AGENCY
FURTHER INFORMATION
History
The company was
incorporated on 2nd May, 1961 at Mumbai in
The Registered Office of the company was shifted from Mumbai in
Subject is a leading provider of IT products, logistics management and
other services ranked 9th by DQ Top 20 issue of 2002.
Subject serves more than 5500 IT resellers in
It represents more than 15 leading global brands covering product
categories like systems, software, peripherals, components, network products,
mobile phones, etc.
The company generated as sales turnover of Rs. 13500 millions ($ 285
millions) in its last financial year ended 31st March, 2002.
The group has IT products and service business in
The company started its’ Indian operations in 1993 at Chennai with a
vision to become a leading distributor of world class IT products with a clear
emphasis on supply chain excellence and operational efficiency.
Subject started with distribution of HP peripherals and continued adding
newer products / brands to its portfolio, growing from 5 employees, 3 branches,
25 dealers and Rs. 90 millions sales in 1994 to 350 employees, 28 branches,
over 5500 dealers and Rs. 13500 millions in the year ended 31st
March, 2002.
The company has emerged as the industry's most efficient distribution
company. The company evolved its business from a small manual operation to a
very large technology driven operation, which provides "Best value for
money" to its customers.
Subject imports Home PCs, Notebooks, Commercial PCs,
Servers, Accessories, IMPACT
Components, Workstations, Printers, Software and Spares
Subject export Home PCs, Notebooks, Commercial PCs,
Servers, Accessories, IMPACT
Components, Workstations, Printers, Software and Spares
Corporate Overview
Redington (India) Limited, founded in 1993
is a leading provider of IT products, Logistics Management and other services
ranked 10th by DQ Top 20 issue of 2003. Redington serves more than 6700 IT
resellers in
The Group: Redington (India) Limited is a part of 140
years old $2 billion Transnational Kewalram Chanrai group head quartered in
Singapore. The group has a very strong business history with operations spread
over 40 countries covering US, Asia, Europe and
Redington started its Indian operations in 1993 at Chennai with a vision
to become a leading distributor of world class IT products with a clear
emphasis on supply chain excellence and operational efficiency. Redington
started with distribution of HP peripherals and continued adding newer
Products/Brands to its portfolio, growing from 5 employees, 3 branches, 25
dealers and Rs. 90 ($2 million) millions sales in 1994 to 600 employees, 35
branches over 6700 dealers and Rs. 20810 ($476 million) millions in the recent
financial year (ending March 2004). Redington has emerged as the industry's
most efficient distribution company. The company evolved its business from a
small manual operation to a very large technology driven operation which
provides "Best value for money" to its customers.
Customer Profile: Redington sells only to its resellers and does not
sell directly to end users. Along with the expansion of product portfolio, and
geographics, Redington has successfully expanded into new market segments. From
a customer base of 25, largely mini distributors in 1994, Redington today sells
to more than 6700 customers including VARs, System Integrators, GID's ,
Government Resellers, Corporate resellers, Retailers. OEM's and E-tailers.
The company’s
product range includes :
System
·
Home PCs
·
Notebooks
·
Commercial PCs
·
Workstations
·
Servers
·
Accessories
·
Mobile Phones
·
Networking
Products
·
Printer –
Inkjet
·
Laserjet
Printers
·
Dot Matrix
Printers
·
Scanners
·
Coiers
·
Fax Machines
·
Plotters
·
CD Writers
·
Printer
Servers
·
Toner
Catridges
·
Ink Catridegs
·
Media Paper
·
Ribbons
·
Transparencies
– CDs
·
Processors
·
Mother Boards
·
Hard Disks
·
Disk Drives
·
Monitors
·
UPS
·
Mini Servers
·
Mid Range
Servers
·
Servers
·
Desktops
·
Ink
Cartridges, Tone, CDR, CDRW
- Plotters
(Design Jets), Allinone
Performance:
The Company's revenues witnessed an impressive growth driven by the multi-
pronged strategy of introduction of new products across various segments, value
added services, aggressive marketing campaigns and leveraging long standing
relationship with its vendors/channel partners.
Despite operations in difficult-to-penetrate, price sensitive and diverse
geographies, the company has made all its endeavour to grow its Sales and PAT
on a consistent basis.
The consolidated revenue of the Company was Rs. 90671.400 Millions as against
Rs. 67935.600 Millions in the previous year a growth of 33.47% with a CAGR of
56.06% for the last five years. The consolidated profit after tax was Rs.1017
Millions as against Rs. 743.400 Millions in the previous year, a growth of
36.80% with a CAGR of 76.06% for the last five years.
The stand alone revenue of the Company was Rs. 47175.300 Millions as against
Rs.36955.100 Millions in the previous year. The profit after tax was Rs.
424.200 Millions as against Rs. 291.400 Millions in the previous year.
The Consolidated Earnings Per Share (EPS) on weighted average number of shares
increased to Rs.15.36 in the current year as compared to Rs.12.23 in the
previous year.
Distribution Business:
Robust growth in the IT products sale was observed in the country on the back
of above 8% growth in the country's GDP for last financial year. The Company
being a leading distributor of these products, achieved a higher growth in its
sales, by increasing the sales in its existing product lines and by addition of
new product lines. In the process, the Company has partnered with more vendors
like Gigabyte, HCL Infosystems,
The Company continues to enjoy excellent relationship with all its long
standing suppliers like Hewlett Packard, Intel, IBM, Microsoft, Lenovo,
Samsung, Epson, Computer Associates, Systimax, APC, Wipro, Cisco and
Seagate.
As a result of its long business partnership with IBM, a 'Tivoli Competency
Center' has been set up at the Company's premises at Mumbai, which would
provide Tivoli Partners across the country a platform for showcasing Tivoli
products besides demonstrating the product capabilities. This Centre of
Excellence will help partners who do not possess the requisite technical
knowledge and/or skills to engage a distributor or IBM in their business
transaction.
With the continuing growth of IT and ITES industries, the performance of the
Company is expected to grow in the ensuing financial years.
Service Business:
The demand for service providers is growing. Capitalising on this situation,
the Company forayed into the service arena with the background of IT
distribution. The Company has increased its reach by opening 80 service centres
through partners in addition to the existing 43 Redington Service
Centres.
The Company has maintained its leading position as an after sales service
provider. The Technical Call Centre of the Company, efficiently supports and
manages the service of HP Presario range of PC products.
During the financial year, the revenue from service business was Rs.579.500
Millions compared to previous year of Rs.384.200 Millions. The Company could
achieve this growth owing to a strong and well established network of service
centres and good partner relationship coupled with online information system
that provides better control and enables accountability and performance.
As a part of the Company's plan to enter high-end Telecom repair space, the
Company has setup a High Level Repair Centre (HLRC). The company has also
continued to maintain service outlets in certain key metropolitan cities.
The repair and replacement activity being carried out by the Company's wholly
owned subsidiary in
Overseas operations:
The Company's international business is conducted through two key subsidiaries,
Redington Gulf FZE,
Redington Gulf FZE, the wholly owned overseas subsidiary of the Company was
rated as No.1 Distributor in the
During the year, the revenue of Redington Gulf FZE and its subsidiaries grew by
over 60% while the profit grew over 30%. Apart from the organic growth in the
IT vertical, the subsidiary's growth was enabled by addition of the telecom
vertical, which had its first full year of operation. The subsidiary has also
continued to grow organically by adding new vendors largely in the better
margin space like Cisco, Sonic Wall, etc.
Redington Gulf FZE is in the process of selecting a suitable space in Jebel Ali
Free Zone Area,
During the year,
MANAGEMENT
DISCUSSION AND ANALYSIS
In the last two years the Company has been transforming itself from a pure IT
products distribution Company to an end-to-end supply chain solution provider
across many verticals and geographies. While IT products still constitute a
large portion of the revenues, over the coming years, they expect the non-IT
products and services share to increase. Some of the verticals where the
Company has made a foray are telecom products, gaming consoles and titles,
digital lifestyle products and consumer durables.
The Company provides Supply Chain Solutions to over 40 international brands and
relationship with major brands have been for years. Some of these brands are
Hewlett Packard, Epson, Intel, Microsoft, IBM, Samsung, Acer, APC, HCL, Cisco,
Wipro, Xerox, Nokia, Lenovo, Linksys and Seagate. Through its network of over
57 warehouses, the Company distributes products to over 15,000 resellers across
the geographies in
The Consolidated turnover for the fiscal 2007 grew by 33.44% to touch
Rs.90613.900 Millions, while the Profit before Tax grew by 37.78% to
Rs.1272.500 Millions and the Profit after Tax was Rs.1017 Millions - an
increase of 36.80% over the previous year.
The discussion starts with the industry structure & the company's business,
strengths, risks & concerns followed by an analysis of the Company's
consolidated and stand alone financials.
INDUSTRY STRUCTURE & NATURE OF
BUSINESS:
Structure:
Globally the products distribution and services industry generally consists of
traditional distribution business, fee based supply chain services business and
after sales service business.
In the traditional distribution model, the distributor buys, holds title to and
sells products and /or services to resellers who, in turn, sell directly to
end-users or other resellers.
Fee based supply chain services encompass the end-to-end functions of supply
chain, taking a product from the point of manufacturing through delivery to the
customer, but not take market risk or inventory risk.
After-sales services are fee-based services provided to customers on behalf of
vendors during the warranty period and directly to the end customers during the
post warranty period.
Nature of Business:
The Company provides end-to-end supply chain solutions for all categories of IT
(Information Technology) products (PCs, Peripherals, PC building blocks,
networking products, software products and enterprise solution products) and
Non-IT products (telecom products, gaming consoles and titles, digital
lifestyle products and consumer durables).
IT PRODUCTS
PC consumption would be a good indicator of the demand for IT products. As the
demand for PC increases, the corresponding demand for other products viz.
peripherals, accessories, parts, components, etc. grow correspondingly. In the
geographies where the Company operates, the PC user base has increased at a
rapid pace driven primarily due to demand from large enterprises, small
&medium businesses, government enterprises and educational institutions.
This pace of growth is expected to continue in the ensuing years.
A recent IDC report predicts increased spending on IT products worldwide
(including markets where the Company does not operate). While the annual growth
on software and services are expected to be stable at 6% in fiscal 2007, the
growth in the hardware side is expected to increase by 50 basis points at
6.5%.
Indian Business Scenario:
The IT industry is witnessing steady and increasing growth driven primarily by
the investments in the IT/ITES sector and an increase in communication,
computing, infrastructure spending and increased internet usage.
The PC market witnessed a 20% growth in fiscal over the previous year driven
mainly by an 85.6% annual growth in notebook PCs, while Desktop PCs grew by
11%. Notebook PC's which contributed 6.1% of the PC market in 2005 now
contributes almost 20%.
The overall PC installed base in the country grew from 9.5 million units in
2004 to cross 22 million in 2007 - CAGR of 32.3%. The country now has one PC
for every 50 Indians. (Data Source: IDC)
The ongoing retail revolution in
The after-sales service market dominated by the service agents without
authorization from vendors is witnessing a shift to the authorized service
providers due to customers preferences of getting the products serviced by
trained and skilled specialists using genuine parts. In a competitive market
scenario, as part of their product offering, vendors generally offer extended
warranty support products and this has gained wide acceptability among
customers. Institutional Customers look for one-stop service providers to take
care of facility management services for their entire range of IT products,
which can be handled only by large authorized neutral service providers. This
shift in trend is expected to continue in the coming years. With increase in PC
sales, the after sales service markets are expected to grow in proportion to
the number of units sold.
Overseas Business Scenario:
The Middle East & Africa market comprises of 20 major countries whose
economies are fuelled primarily by increasing oil prices. The economies of
these countries are also buoyant due to increased government spending and
foreign investments in the area of retail, constructions, sports related
infrastructure, media, etc. All of this has resulted in large multinational
vendors setting up establishments in this part of the world.
However, the differences in country specific regulatory environment, duty
structures, currencies, trade terms, etc. have proved to be an entry barrier to
global vendors from setting up their own distribution channel and this has
provided an opportunity for the distributors with country specific knowledge to
make themselves an integral part of IT products distribution chain and moving
into supply chain space.
The demand for PC and notebooks grew by 25% in Fiscal 2007 and they expect this
growth to continue. (Source: http://www.emsnow.com)
The Market in South Asia like
NON-IT PRODUCTS:
Non-IT products that form part of their supply chain are predominantly gaming
devices, digital printing machines, consumer durables and telecom
products.
Indian Business Scenario:
- Gaming Device:
Gaming category is new to
The Company started distributing Microsoft's XBox gaming consoles and gaming
titles / software during the year.
- Digital Printing Machines:
Digital printing machines are cost effective substitutes to conventional offset
printing machines for low print volumes, customized solutions and variable data
printing. Around 52 trillion pages get printed worldwide, off which only 4% get
printed through digital printing machines. 78% of the printing jobs are less
than 5,000 sheets and 33% of the Customers demand that their print jobs be
completed within 24 hours from order - all of which points towards significant
opportunities to the cost effective digital printing way.
The Company has partnered with HP Indigo to offer total print solutions to the
printing industry. The Company has a demo center in Chennai and has installed
21 digital printing machines each costing over a crore of rupees and supports
these machines.
- Consumer Durables:
The consumer durable industry can be broadly categorized under consumer
electronics and household appliances. The product includes colour televisions
sets, refrigerators, washing machines, air conditioners etc. Rising income
levels and replacement demand are the key growth drivers of this
industry.
The Company is currently distributing consumer durables in select regions in
Overseas Business Scenario:
- Telecom Products:
Presently the Company distributes Nokia mobile phones in
Fixed Assets:
- Land & Building
- Plant & Machinery
- Furniture & Fixtures
- Office Equipment
- Computers & Software
- Vehicles
Form 8 Particular
for creation or modification of charges
|
Name of the
company |
REDINGTON
( |
||||||||
|
Presented By |
REDINGTON ( |
||||||||
|
1) Date and
description of instrument creating the change |
14.09.1995 Hypothecation
agreement of revolving stock and other movable assets and also present and
future book debts dated 14.09.1995 |
||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 60.000
Millions |
||||||||
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
The whole of the
company’s stocks viz. Raw Materials, Work-in-progress, Finished Goods (both
Present & Future) including stocks-in-transit and also present and future
book debts lying and/or situated any were in |
||||||||
|
4) Gist of the terms
and conditions and extent and operation of the charge. |
Rate of Interest
– Hongkong Bank Prime + 2% p.a. |
||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
Hong Kong &
Shanghai Banking Corporation Limited,
30, Rajaji Salai, Chennai. |
||||||||
|
6) Date and brief description of instrument
modifying the charge |
21.01.2003 Letter from
Hongkong & Shahghai Banking Corporation Limited, Rajaji Salai, Chennai –
600 001, addressed to the company regarding the reduction in limit from Rs.
670.000 Millions to Rs. 315.000 Millions. |
||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The limit of Rs.
670.000 Millions already extended to the company has now been reduced to Rs.
315.000 Millions as detailed below:
The Securities
which are already hypothecated to the bank shall continue to secure the
present reduced limit of Rs. 315.000 Millions , together with interest,
costs, charges, and all other expenses which may be debited to the
appropriate account from time to time. All other terms
and conditions remain the same. |
|
Name of the
company |
REDINGTON
( |
|
Presented By |
REDINGTON ( |
|
1) Date and
description of instrument creating the change |
Letter of Hypothecation
of Stocks and Book Debts dated 24.09.2005, in favour of HDFC Bank Limited. |
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 100.000
Millions |
|
3) Short particular
of the property charged. If the property acquired is subject to charge, date
of the acquired of the property should be given |
Pari passu first
charge on Stocks and Book debts of the company, present & future on a
pari passu basis with other lenders. |
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
Various credit
facilities (both fund based and non fund based) to the extent of Rs. 100.000
Millions. |
|
5) Name and
Address and description of the person entitled to the charge. |
HDFC Bank Limited 751-B, Anna
Salai, |
|
6) Date and brief description of instrument
modifying the charge |
NIL |
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
NIL |
|
Name of the
company |
REDINGTON
( |
||||||||||||
|
Presented By |
Indusind Bank
Limited 3, |
||||||||||||
|
1) Date and
description of instrument creating the change |
Agreement of
Hypothecation of Goods and Assets dated 12.07.1996. |
||||||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 95.000
Millions |
||||||||||||
|
3) Short
particular of the property charged. If the property acquired is subject to
charge, date of the acquired of the property should be given |
Goods and Book
debts and all other movable taxes. |
||||||||||||
|
4) Gist of the
terms and conditions and extent and operation of the charge. |
19.5% p.a. on
Quarterly rests + Interest Tax. |
||||||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
Indusind Bank
Limited 3, |
||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
25.08.2005 Letter from
Indusland Bank, Chennai Branch for reduction in overall Limits. |
||||||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The total Credit
Limits reduced from Rs. 200.000 Millions to Rs. 140.000 Millions. Amount (In Millions)
All other terms
& conditions of original charge & subsequent modification remain
unchanged. |
|
Name of the
company |
REDINGTON
( |
|||||||||||||||||||||
|
Presented By |
State Bank of Commercial
Branch, Chennai – 600 001 |
|||||||||||||||||||||
|
1) Date and
description of instrument creating the change |
Dated 07.02.1994 Agreement of Loan for overall limit Agreement of hypothecation
of goods and assets. Letter regarding
the grant of individual limits with in the overall limit. All dated
07.02.1994 |
|||||||||||||||||||||
|
2) Amount secured
by the charge/amount owing on the securities of charge |
Rs. 60.000
Millions
|
|||||||||||||||||||||
|
3) Short particular
of the property charged. If the property acquired is subject to charge, date
of the acquired of the property should be given |
Hypothecation of
Stocks (Computer peripherals) and receivables. |
|||||||||||||||||||||
|
4) Gist of the terms
and conditions and extent and operation of the charge. |
3.25% over SBAR
with a minimum of 18.25% (inclusive of interest tax 0.75%) Margin : Stocks:
25%. Receivables : 50% (Cover Period: 60
days) |
|||||||||||||||||||||
|
5) Name and
Address and description of the person entitled to the charge. |
State Bank of Commercial
Branch, Chennai – 600 001 |
|||||||||||||||||||||
|
6) Date and brief description of instrument
modifying the charge |
Dated 23.11.2005 Supplemental
Agreement of Loan for Increase in the Overall Limit in Form CIA. Supplemental
Agreement of Hypothecation of goods and assets for increase in the overall
limit in form C2A. Supplemental
Agreement of Pledge of Goods and Assets for increase in the overall limit in
Form C3A. Letter regarding
the grant of individual limits with in the overall limit in form C5. All dated
23.11.2005 and relates to one and the same charge. |
|||||||||||||||||||||
|
7) Particulars of
modifications specifying the terms and conditions or the extent of operations
of the charge in which modification is made and the details of the
modification. |
The credit
facility extended to the company from Satte bank of India, Commercial Branch,
Chennai – 600 001has now been enhanced from Rs. 360.000 Millions to Rs.
460.000 Millions comprising of: Amount (In Millions)
Securities: Hypothecation of
company current assets viz. Stocks and receivables on pari passu basis with
all other banks under Multiple Banking Arrangement. Earlier
Securities given by the company shall continue to cover the Enhanced limit of
Rs. 460.000 Millions Rate of Interest,
Margin and other terms and condition as per agreement. All other terms
and conditions remain the same. |
AS PER WEBSITE
Profile – Redington Group
Commencing the Indian operations in
1993, Redington India Limited has successfully positioned itself as a focused
distribution player with a significant reach across
Within a short span of 14 years
the Company has successfully transformed itself from a pure IT products
distribution firm with traditional cash and carry model to a leading integrated
Supply Chain Solution Provider that includes non IT products and involves the
management of inventory of greater than 4000 SKU’s (stocking units) while transacting
business with over 15000 channel partners globally.
The consolidated turnover of the
company for the financial year 2006-2007 stands at Rs.90614 million (over US$ 2
Billion).
The Company’s higher than industry
average growth in the price sensitive Indian market and difficult to penetrate
History – Redington Group
Redington
Redington
(
In
December 2004 the Synnex Group, the third Largest IT Distribution Company in
the world headquartered in
In
March 2006 ChrysCapital, a private equity firm, acquired 11 percent stake in
Redington (
Redington
through all its subsidiaries distributes products from over 40 Leading
Manufacturers, services over 12000 channel partners in
News
May
04 , 2007
Redington (
%20LIMITED%20-%20ONDD%2001-Sep-2007_files/image004.gif){kind=small}
CHENNAI: Redington (
The revenue was up 33.5 per cent at Rs.90671.400 Millions. Standalone revenue
has gone up by 27.7 per cent to Rs.47175.200 Millions. The profit after tax has
increased by 45.6 per cent to Rs.424.200 Millions.
%20LIMITED%20-%20ONDD%2001-Sep-2007_files/image005.gif){kind=small}
12.01.2007
Redington
plans to raise Rs 14950 millions thru IPO
Redington (
The proceeds will be used to part-fund setting up of automated distribution
centres, ADCs and service and repair centers, SRC in
The company's offering of 13.200
millions equity shares of Rs 10 each comprises about 16.99% of the
fully diluted post-issue paid up capital of the company. The issue opens on January
22 and closes on January 25.
Redington is a distributor of IT products and a provider of logistics, supply
chain management and other support services in
"They will invest about Rs 425 millions in their wholly owned subsidiary
Redington Gulf FZE for establishing ADCs in Dubai and to install enterprise
resource and planning systems for operations in Middle East and Africa," R
Srinivasan, Managing Director, Redington said.
Enam Financial Consultants and Cameo Corporate Services are the lead managers
to the issue.
11.01.2007
Redington
to come up with Rs.1500 millions IPO
MD at Redington, R Srinivasan says that the money raised
from the new issue would go towards setting up a new distribution centers in
Excerpts from CNBC-TV18`s exclusive interview with R Srinivasan:
Q: What kind of money are they looking to raise and what will be the
purpose?
A: They are looking to raise about Rs 1500 millions for
setting up new distribution centers in
The second objective of the issue is to set-up 68 service centres in
Q: How much of the revenues come from the Middle East and
A: 50% of their revenues are from the international business
and 50% from the domestic business. Last year their turnover was in the region
of about Rs 67000
millions, so approximately 50% of it is from Middle East and
Q: How much better will the margins be because of these service centres?
A: Their service margins are much higher than their product
distribution margins but in terms of their total revenue, the services do not
constitute more then 4% at this point in time.
Q: For the first half of 2007, they had done an EPS of just about Rs 5.
Would it be fair to annualize it for 2007 and say they will
close the year by about Rs 10?
A: No, on an annual basis it would be more prior to
dilution, post dilution it could be in the region of about Rs 10.3.
Q: They are
looking to raise about Rs 1500 millions and looking to issue about 13.200 millions
equity unless they are
looking to do pre IPO placement. Would it be fair to assume that they price
to IPO of about Rs 115?
A: Their price would between Rs 95-113 - that would be
correct.
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.40.88 |
|
|
1 |
Rs.82.58 |
|
Euro |
1 |
Rs.35.22 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|