MIRA
INFORM REPORT
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Report Date : |
13.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
PANASONIC HOME APPLIANCES INDIA COMPANY LIMITED |
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Registered Office : |
National Highway No. 5, Sholavaram Village, Ponneri Taluk, Tiruvallur
District, Chennai 600 067, Tamilnadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
09.09.1988 |
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Com. Reg. No.: |
16184 |
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CIN No.: [Company
Identification No.] |
L30007TN1988PLC016184 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CHEI00084A |
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PAN No.: [Permanent
Account No.] |
AAACI1304E |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
the Stock Exchanges. |
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Line of Business : |
Manufacturer, Exporter, Supplier, Dealer and Distributor of Home and
Electronic Appliances and Accessories. |
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 700000 |
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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 satisfactory track. Directors are
reported as experienced and respectable businessmen. Trade relations are
fair. Business is active. Payments are usually correct and as per
commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
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Registered Office/ Factory : |
National Highway No. 5, Sholavaram Village, Ponneri Taluk, Tiruvallur
District, Chennai 600 067, Tamilnadu, India |
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Tel. No.: |
91-44-26330133/ 397 |
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Fax No.: |
91-44-26330132 |
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E-Mail : |
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Website : |
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Corporate Office : |
SPIC House, Annexe, 6th Floor, 88, Mount Road, Guindy,
Chennai 600 032, Tamilnadu, India |
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Tel. No.: |
91-44-22304201-05 |
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Fax No.: |
91-44-22304200 |
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Branches : |
All over the World |
DIRECTORS
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Name : |
Mr. P. Obul Reddy |
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Designation : |
Chairman |
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Name : |
Mr. H. Aso |
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Designation : |
Managing Director |
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Name : |
Mr. Justice S. Natarajan |
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Designation : |
Director |
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Name : |
Mr. A. Ragavendra Rao |
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Designation : |
Director |
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Name : |
Mr. K. Subramanian |
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Designation : |
Director |
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Name : |
Mr. P. Vijayakumar Reddy |
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Designation : |
Director |
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Name : |
Mrs. Machiko Miyai |
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Designation : |
Director |
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Name : |
Mr. Ichiro Kikuchi |
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Designation : |
Director |
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Name : |
Mr. Hisao Ozono |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Tom Antony |
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Designation : |
Company Secretary |
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Email: |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.03.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Indian Promoters |
1665106 |
19.43 |
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Foreign Promoters |
4370000 |
50.99 |
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Corporate Bodies |
440699 |
5.14 |
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Mutual Funds and UTI |
2000 |
0.03 |
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Banks and Financial Institutions |
1700 |
0.02 |
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Non-Resident Indians/ OCBs |
9548 |
0.11 |
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Public |
2080401 |
24.27 |
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Clearing Member |
546 |
0.01 |
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Total |
8570000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter, Supplier and Dealer of Home and Electronic
Appliances and Accessories. |
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Products with ITC Code : |
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Brand Names : |
“PANASONIC” |
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PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Electric Cooker |
Nos. |
2500000 |
300000 |
233300 |
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Mixer Grinder |
Nos. |
300000 |
300000 |
122556 |
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Accessories |
-- |
-- |
-- |
73396 |
GENERAL
INFORMATION
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No. of Employees : |
About 210 |
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Bankers : |
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Facilities : |
Secured Loan
Unsecured Loan
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya and Company Chartered Accountants |
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Address : |
No. 48, Masilamani Road, 3rd Floor, Ehrlich Laboratories, Balaji
Nagar, Royapettah, Chennai 600 014, Tamilnadu, India |
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Holding Company : |
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Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,30,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 130.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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85,70,000 |
Equity Shares |
Rs. 10/- each |
Rs. 85.700 millions |
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(Of the above, 43,70,000 Equity Shares of Rs. 10 each are held by the
Holding Company Matsushita Electric Industrial Company Limited, Japan) |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
85.700 |
85.700 |
85.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
88.773 |
83.618 |
82.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
174.473 |
169.318 |
167.900 |
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LOAN FUNDS |
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1] Secured Loans |
4.209 |
9.967 |
14.100 |
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2] Unsecured Loans |
5.400 |
7.267 |
7.300 |
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TOTAL BORROWING |
9.609 |
17.234 |
21.400 |
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DEFERRED TAX LIABILITIES |
7.525 |
10.578 |
0.000 |
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TOTAL |
191.607 |
197.130 |
189.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
79.799 |
81.843 |
82.400 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
1.930 |
1.930 |
0.000 |
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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 |
79.462
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55.204 |
47.400 |
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Sundry Debtors |
56.512
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32.567 |
50.400 |
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Cash & Bank Balances |
53.135
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50.985 |
45.800 |
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Other Current Assets |
1.703
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1.716 |
0.000 |
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Loans & Advances |
27.099
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18.805 |
21.700 |
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Total
Current Assets |
217.911
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159.277 |
165.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
72.504
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33.502 |
51.500 |
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Provisions |
35.529
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12.418 |
6.900 |
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Total
Current Liabilities |
108.033
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45.920 |
58.400 |
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Net Current Assets |
109.878
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113.357 |
106.900 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
191.607 |
197.130 |
189.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
726.160 |
553.703 |
534.800 |
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Other Income |
10.470 |
6.518 |
28.700 |
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Total Income |
736.630 |
560.221 |
563.500 |
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Profit/(Loss) Before Tax |
25.069 |
17.688 |
31.500 |
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Provision for Taxation |
9.888 |
6.480 |
1.100 |
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Profit/(Loss) After Tax |
15.181 |
11.208 |
30.400 |
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Earnings in Foreign Currency : |
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Export Earnings |
39.136 |
44.901 |
NA |
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Total Earnings |
39.136 |
44.901 |
NA |
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Imports : |
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Raw Materials |
24.659 |
20.965 |
NA |
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Stores & Spares |
0.095 |
0.513 |
NA |
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Capital Goods |
1.096 |
0.561 |
NA |
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Others |
169.450 |
142.107 |
NA |
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Total Imports |
195.300 |
164.146 |
NA |
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Expenditures : |
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Cost of Goods Sold |
198.350 |
161.582 |
0.000 |
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Manufacturing Expenses |
499.854 |
368.667 |
7.800 |
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Excise Duty |
0.000 |
0.000 |
52.200 |
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Raw Material Consumed |
0.000 |
0.000 |
316.000 |
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Selling and Administration Expenses |
0.000 |
0.000 |
95.900 |
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Managerial Remuneration |
0.000 |
0.000 |
36.900 |
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Interest |
1.584 |
0.712 |
2.200 |
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Power & Fuel |
0.000 |
0.000 |
4.600 |
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Depreciation & Amortization |
11.773 |
11.573 |
11.600 |
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Other Expenditure |
0.000 |
0.000 |
4.800 |
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Total Expenditure |
711.561 |
542.534 |
532.000 |
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QUARTERLY RESULTS
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Particulars |
30.06.2007 |
30.09.2007 |
31.12.2007 |
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Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
160.200 |
201.700 |
261.600 |
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Other Income |
1.600 |
2.200 |
1.900 |
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Total
Income |
161.800 |
203.900 |
263.500 |
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Total Expenditure |
153.300 |
186.600 |
254.700 |
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Operating Profit |
8.500 |
17.300 |
8.800 |
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Interest |
0.200 |
0.800 |
1.200 |
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Gross Profit |
8.300 |
16.500 |
7.600 |
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Depreciation |
2.800 |
3.000 |
3.900 |
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Tax |
2.200 |
5.300 |
2.200 |
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Reported PAT |
3.400 |
8.600 |
1.600 |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio |
0.08 |
0.11 |
0.15 |
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Long Term Debt
Equity Ratio |
0.08 |
0.11 |
0.15 |
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Current Ratio |
2.13 |
2.76 |
3.16 |
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TURNOVER RATIOS |
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Fixed Assets |
3.42 |
2.68 |
2.44 |
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Inventory |
11.96 |
11.92 |
11.08 |
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Debtors |
18.08 |
14.74 |
10.49 |
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Interest Cover
Ratio |
10.26 |
10.83 |
4.23 |
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Operating Profit
Margin (%) |
4.90 |
5.08 |
3.89 |
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Profit Before
Interest and Tax Margin (%) |
3.44 |
3.19 |
1.73 |
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Cash Profit
Margin (%) |
3.35 |
3.73 |
3.50 |
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Adjusted Net
Profit Margin (%) |
1.89 |
1.83 |
1.34 |
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Return on Capital
Employed (%) |
14.94 |
10.38 |
5.09 |
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Return on Net
Worth (%) |
8.84 |
6.64 |
4.53 |
LOCAL AGENCY
FURTHER INFORMATION
PERFORMANCE
During the year Company achieved a total turnover of Rs.805.562 millions as
against Rs.611.672 millions in the previous year, higher by 31.69%. The export
turnover also increased to Rs.140.100 millions from Rs.130.900 millions in the
previous year.
Company has registered a profit before tax of Rs.25.069 millions as against Rs.
17.688 millions, in the previous year, higher by 41.73%. The profit after tax
of Company stood at Rs.15.181 millions as against Rs.11.218 millions in the
previous year, higher by 35.33%.
FUTURE PROSPECTS
In domestic market, the Company is poised to further increase the sales of
Cooker, Mixies, Beauty Care and Health Care Products. Company intends to give a
renewed focus on sales of Microwave ovens. Steps are being taken to strengthen
the service network and further strengthening of accounts receivables. Exports
have shown a growth of 7% during the period 2006-07 over 2005-06 and targets a
growth of 15% for the year 2007-08. On the export front, Company continues with
its efforts to increase the exports to countries like Latin America, African
countries and other neighbouring countries. Considering the increasing trend in
the prices of raw materials like aluminium, copper, steel etc efforts are
channelised to try and reduce the material cost which will enable us to be more
competitive.
INNOVATION
Successfully completed the in-house production of Mixie Chutney
Cup.
The company hs exported 22124 Nos. of Electronic Rice Coockers and 18970
Nos. of Mixies during the year 2006-2007.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRIAL REVIEW
The Company continued to sustain its leadership position in the Electric Cooker
segment as well as in the premium price segment of the Mixer Grinder Market.
Quality of the product continues to be the strength of the Company to secure
maximum customer satisfaction.
During the year 2006-2007, the Company had continued its trading
activities and increased its product range of Beauty Care, Health Care and
Personal Care products as well as Microwave ovens. In the year 2007-2008, the
Company is planning to increase the product line by importing new models in
Beauty Care, Health Care segment in addition to Massage Lounger JOBA (a new
wellness product in the fitness category) and introducing Jar Type in Electric
Cooker segment.
ANALYSIS OF FINANCIAL CONDITION AND
RESULTS
During the year, the Company registered a growth of 32% in total turnover
compared to that of the previous year. The Domestic sales recorded a growth of
40.41% compared to the previous year. Sales of the traded goods recorded a
growth of 33.16% compared to the previous year. On the export front the Company
could achieve a marginal growth of 7% only as compared to the previous year,
which was mainly due to the Company equipping itself to adhere to certain
international safety standards. In order to meet the market preferences (both
domestic and international), as an advantageous feature, the Company is
planning to introduce a new model mixer grinder with Plastic Blender Jar,
better utility value and interlocking safety facility.
For the financial year 2006 - 2007, the income from other sources
increased considerably, an increase of 61% as compared to the previous year.
This was mainly on account of receipt of refunds from the statutory authorities
viz., Customs and Sales Tax, besides obtaining the interest receipts from Banks
on the Fixed Deposits.
During the year the Company achieved a profit before tax of Rs.25.100 millions
as against Rs.17.700 millions in the previous year, an increase of 42%. In
spite of absorption of increase in the prices of raw materials like Aluminium,
Copper, Steel, ABS and other Plastic Materials amounting to Rs.20.800 millions
(net cost up), the Company was able to register an increase of 35% in net
profit after tax which stood at Rs.15.200 millions as against Rs.11.200
millions in the previous year.
OUTLOOK ON OPPORTUNITIES, THREATS, RISKS
AND CONCERNS
The Company intends to utilise the wide distribution network across the country
to increase the sales of its products. The Company is planning to produce a
major component part of Electric Cooker viz., Thermostat parts by using the
in-house manufacturing facility. Introduction of new design of Mixer Grinder
with new shape and safety facility would create new opportunities for the
Company. Entry of new players both Multinationals and domestic companies in the
industry, and increased levies on imported products are the main causes of
concern at this stage.
Company's foreign collaborator, viz., Matsushita Electric Industrial Co., Japan
(MEI) who is also a major shareholder of the Company, insist that certain
safety devices, which are not mandatory in India and as such are not observed
by the Company's competitors should be immediately introduced in the
manufacture of Mixer Grinder. Similarly as a matter of their global policy, MEI
is keen to avoid certain hazardous substances in the manufacture of Cooker and
Mixie here. These may increase the cost of production and affect price
competitiveness of the Company's products viz., Mixer Grinder in Indian market
but make them more superior in terms of safety features vis-a vis its
competitors as well as will help in boosting the export sales.
CONTINGENT
LIABILITIES
The company has received a Demand from Service Tax cell of Central
Excise Department regarding Service Tax Liability of Rs.1.834 millions payable
on Royalty as per the order of Deputy Commissioner ( Appeals). The Company has
gone on appeal against the order with the Appellate authorities and the matter
is pending for the issuance of final orders. The Company has been advised by
the Legal counsel that the said sum is recoverable from the collaborator as per
the terms of Technical Assistance Agreement.
The company has received a demand notice from Income Tax Dept for the
Assessment Year 2004-05 amounting
to Rs.1.173 millions. The company has preferred an appeal against the
order of Dy. Commissioner of Income Tax and the appeal is pending before the
Commissioner of Income Tax (Appeals).
SECURED LOANS
Interest-Free Sales Tax Loan - Cooker Project from State Industries
Promotion Corporation of Tamil Nadu Limited
is secured by a first charge on the immovable properties and Machinery,
Plant, Fixtures, etc. Two Directors have guaranteed the loan in their
individual capacities.
The Cash Credit and Bill Discounting facilities from Banks are secured
by a first charge on inventories and book debts. However, the Company does not
have any amount outstanding as on 31st March 2007.
FIXED ASSETS
- Land
- Building
- Plant and
Machinery
- Furniture,
Fixtures and Fittings
- Vehicles
AS PER WEB:
Profile
Panasonic's vision of the digital future is driven by the needs and aspirations
of our business customers and millions of consumers around the world who use
our products every day. They share their dream to live a fuller life by
providing ways of working smarter and enjoying the rewards of technological
advances.
As they move forward together with our customers into the uncharted future of
the 21st century with the prospect of future technologies and systems yet to be
thought of, Panasonic's standards are still firmly grounded in the philosophy
of company founder Konosuke Matsushita. He began our journey in 1918 by
inventing a two-socket light fixture. Profound in its import yet elegantly
simple, Konosuke Matsushita's breakthrough led to what is now one of the
world's largest electronics companies. As he built Matsushita Electric
Industrial Company Limited, they never lost sight of the importance of putting
the needs of his customers and the public first.
Panasonic will continue its Customer First tradition of creating new
products that resolve the challenges in business and personal life, helping us
all enjoy more of what life has to offer. The name Panasonic is synonymous with
innovation, quality, performance and ease of use. They look forward to a bright
and shining technological future, and to playing a leading role in the
digitally networked society, propelled by the creativity and dedication of our
employees here and around the world.
Panasonic is much more than a well-known brand name. It stands for the
depth and diversity of their research capabilities, manufacturing expertise and
product selection. It stands for the advanced technology of products, from
easy-to-use consumer goods to sophisticated medical, broadcast, business and
industrial systems.
More importantly, Panasonic stands for a commitment to quality, value
and innovation. In North America, this commitment is backed up by employees
working in research and development centers from California's Silicon Valley to
Video Valley in New Jersey, state-of-the-art manufacturing plants, one of the
country's largest customer call centers in Virginia and sales and service
organizations that deal with the public and business-to-business relationships
in nearly every state. In all of their dealings, the customer is always first.
This was their bedrock philosophy through the 20th century and it will carry us
through the 21st century.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.41.68 |
|
UK Pound |
1 |
Rs.81.23 |
|
Euro |
1 |
Rs.64.13 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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. |
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 |
|