MIRA
INFORM REPORT
|
Report Date : |
12.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
VALUE INDUSTRIES
LIMITED |
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Formerly Known As : |
VIDEOCON APPLIANCE LIMITED |
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Registered Office : |
14 KM Stone, Taluka Paithan, Chittegaon, Aurangabad – 431
005, Maharashtra |
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Financials (as on) : |
30.09.2007 |
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Date of Incorporation : |
08.03.1988 |
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Com. Reg. No.: |
046445 |
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CIN No.: [Company
Identification No.] |
L99999MH1988PLC046445 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMV09538E |
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PAN No.: [Permanent
Account No.] |
AAACV2299K |
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Legal Form : |
A Public Limited Liability company. The company’s shares are
listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and marketing of Electrical and Electronic
Appliances such as Air Conditioners, Refrigerators, Programmable Washing
Machines and Assemblies and Sub-Assemblies. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
RATING
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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 22300000 |
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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 part of Videocon Group, once a fast growing industrial
house and currently passing through depressed market conditions. The group is
controlled and financed by Dhoot family. Available information indicates high
financial responsibility of the company and group. Trade relations are fair.
General financial position is satisfactory. Payments are usually correct and
as per commitments. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
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Registered/ Factory
Office : |
14 KM Stone, Taluka Paithan, Chittegaon, Aurangabad – 431
005, Maharashtra, India |
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Tel. No.: |
91-2432-27355 / 25675 / 23655 |
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Fax No.: |
91-2432-31272 |
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E-Mail : |
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Website : |
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Administrative Office : |
171, Mittal Court, “C” Wing, Nariman Point, Mumbai – 400
021, |
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Tel. No.: |
91-22-2871798 / 2873822 |
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Fax No.: |
91-22-2873258 |
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Factory : |
15 KM Stone, Taluka Paithan, Chittegaon, Aurangabad – 431
005, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Venugopal N Dhoot |
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Designation : |
Director |
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Date of Birth/Age : |
30th September, 1951 |
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Qualification : |
BE Mechanical |
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Date of Appointment : |
30th December, 1998 |
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Other Directorship in Public Limited Company |
Ø
Videocon International Limited Ø Videocon Communications Limited Ø Kichen Appliances India Limited Ø Applicomp India Limited Ø Petrocon India Limited Ø Videocon Power Limited Ø Indian Refrigerator Company Limited Ø Shree Dhoot Trading and Agencies Limited Ø KJMC Financial Services Limited Ø Videocon Industrial Finance Limited Ø Videocon Housing Finance Limited Ø Videocon
VCR Securities Limited |
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Committees of
Other bodies in which Member |
Ø
Videocon Housing Finance Limited Ø Indian Refrigerator Company Limited Ø Shree Dhoot Trading and Agencies Limited Ø Applicomp
India Limited |
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Name : |
Mr. S. Padmanbhan |
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Designation : |
Independent Director |
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Date of Birth/Age : |
01st September, 1939 |
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Qualification : |
B. Sc, Physics, M. Sc., Physics (Honours), Bachelor of
General Law, Diploma in Developmental Economics – University of Cambridge,
Diploma in Management. |
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Date of Appointment : |
30th September, 1996 |
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Area of Expertise/Senior position Held/ Work Experience
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Ø
Chief Executive officer of Zilla Parishad – 1 Year Ø Collector of a District was incharge of the koyna Earthquake Ø Director of Tourism, Government of Maharashtra – 1 Year Ø Chief Executive Officer – Bombay Building Repair and Reconstruction Board and Ex. Office Dy. Secretary Housing. Government of Maharashtra Ø Managing Director – The State industrial and Investments Corporations of Maharashtra Limited |
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Other Directorship in Public Limited Company |
Ø
Videocon International Limited Ø Videocon Communications Limited Ø Kichen Appliances India Limited Ø Applicomp India Limited Ø Petrocon India Limited Ø Videocon Power Limited Ø Desai Brothers Limited Ø Asian Electrical Limited Ø Premier Automoblies Limited Ø Sudarshan Chemical Industrial Limited Ø State Bank of India Ø Videocon
VCR Securities Limited |
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Committees of
Other bodies in which Member |
Ø
Videocon Communications Limited Ø Applicomp India Limited Ø Videocon Power Limited Ø Petrocon India Limited Ø Kichen Appliances India Limited Ø Premier Automoblies Limited Ø Asian
Electrical Limited |
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Name : |
Mr. Rajkumar N. Dhoot |
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Designation : |
Director |
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Name : |
Mr. Naveen B. Mandhana |
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Designation : |
Director |
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Name : |
Mr. Sanjeev K. Shelgikar |
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Designation : |
Director |
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Name : |
Mr. Pradipkumar N. Dhoot |
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Designation : |
Director |
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Name : |
Mr. Avinash Malpani |
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Designation : |
Director |
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Name : |
Mr. C. P. Jaggi |
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Designation : |
Director |
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Date of Birth/Age : |
56 years |
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Qualification : |
B.E. (Hons.) |
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Experience : |
35 years |
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Date of Appointment : |
1st January, 1992 |
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Previous Employment |
LML Limited – General Manager |
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Name : |
Mrs. Renuka Ramnath |
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Designation : |
ICICI Nominee Director |
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Name : |
Mr. S. K. Saha |
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Designation : |
UTI Nominee Director |
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Name : |
Mr. A. K. Ahuja |
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Designation : |
IFCI Nominee Director |
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Name : |
Mr. Subhash S. Dayama |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Hiren N. Shah |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.09.2007
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Category of Shareholder |
No. of Shares |
Percentage of
Holding |
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Shareholding of Promoter and Promoter Group2 |
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Indian |
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Individuals/ Hindu Undivided Family |
2219813 |
6.69 |
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Bodies Corporate |
9963234 |
30.03 |
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Public shareholding |
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Institutions |
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Mutual Funds/ UTI |
14476 |
0.04 |
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Financial Institutions / Banks |
10454 |
0.03 |
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Insurance Companies |
944756 |
2.85 |
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Foreign Institutional Investors |
1875 |
0.01 |
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Non-institutions |
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Bodies Corporate |
3768225 |
11.36 |
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Individuals |
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Individuals -i. Individual shareholders holding nominal
share capital up to Rs 0.100 Million |
12790838 |
38.56 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
3461329 |
10.43 |
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Total |
33175000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and marketing of Electrical and Electronic
Appliances such as Air Conditioners, Refrigerators, Programmable Washing
Machines and Assemblies and Sub-Assemblies. |
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Products : |
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GENERAL
INFORMATION
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Suppliers : |
Ø Abhijeet
Dies and Tools Private Limited Ø Anil Polymer Private Limited Ø Annapurna Electronics and Services Limited Ø Arvind Mechnanical and Electrical Engineers Private Limited Ø Durga and Sons Private Limited Ø Cast All Technologies Private Limited Ø Delstar Private Limited Ø Dhoot Transmission Private Limited Ø Har Hal Plastic Engineering Private Limited Ø Ellora Gases Private Limited Ø Harness Cable Connector Private Limited Ø Hydero Controls Specialities Private Limited Ø Machhar Packaging Services Private Limited Ø Mangalam Coils Private Limited Ø Monarch Self Adhesive Tapes (India) Private Limited Ø Oracle Electronics and Engineering Private Limited Ø Siddhant Pressing Private Limited Ø Silverline Metal Engineering Private Limited Ø Surya Spring Private Limited Ø Blue Star Engineers Ø Vivel Poly Products Ø Zenith Metaplast Private Limited Ø Ganesh Plasto Industries Ø Star Krupa Ø S.V.S. Wire Private Limited Ø Able Moulders Ø Akshay Flexi Hoses Ø Laxmi Plasto |
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No. of Employees : |
2000 |
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Bankers : |
Ø Indian
Bank Ø Bank of India Ø Allahabad Bank Ø Punjab National Bank Ø HDFC Bank Limited Ø IndusInd Bank Limited Ø Axis Bank Limited Ø State Bank of Indore Ø Bank of Baroda Ø State Bank of Hyderabad Ø State Bank of Bikaner and Jaipur Ø The Federal Bank Limited Ø The Dhanalakshmi Bank Limited Ø
UCO Bank Ø
State Bank of Indore |
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Facilities : |
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Banking Relations
: |
Satisfactory |
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Auditors : |
Ø Khandelwal
Jain and Company Chartered Accountants Address: 12-B, Baldota Bhavan, 117, Maharshi Karve Road, Opposite Churchgate Railway Station, Mumbai – 400 020, Maharashtra, India Ø Kadam and Company Chartered Accountants Address: Ahmednagar College Road, Kothi, Near Badve Petrol Pump, Ahmednagar – 414 001, Maharashtra, India |
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Associates/Subsidiaries : |
Ø Videocon
Exports Limited Ø Videocon Petroleum Limited Ø Videocon Industrial Finance Limited Ø Videocon Housing Finance Limited Ø Videocon Properties Limited Ø Videocon International Limited Ø Videocon International Ø Applicomp India Limited Ø Holzmann Videocon Engineers Limited Ø Ahmednagar Electronics Private Limited Ø Cosmic Stereo Electronics Private Limited Ø Indian Refrigerator Company Limited Ø Kitchen Appliances (India) Limited Ø Rajkumar Engineering Private Limited |
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Membership : |
Confederation of Indian Industry |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
55,000,000 |
Equity Shares |
Rs.10/- each |
Rs.550.000 millions |
|
7,500,000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs.750.000 millions |
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Total |
|
Rs.1300.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
33,175,000 |
Equity Shares |
Rs.10/- each |
Rs.331.750 millions |
|
|
Calls in arrears |
|
Rs.0.990 millions |
|
307731 |
8% Cumulative Redeemable Preference Shares |
Rs.80/- each |
Rs.24.620 millions |
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Total |
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Rs.355.380 Millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2007 |
30.09.2006 |
30.09.2005 |
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
355.380 |
361.530 |
339.000 |
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2] Share Capital Suspense |
61.380 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
4048.050 |
3609.630 |
3676.300 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
4464.810 |
3971.160 |
4015.300 |
|
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LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
4760.020 |
4359.060 |
3879.700 |
|
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2] Unsecured Loans |
3654.350 |
2153.050 |
80.600 |
|
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TOTAL BORROWING |
8414.370 |
6512.110 |
3960.300 |
|
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DEFERRED TAX LIABILITIES |
884.560 |
751.220 |
0.000 |
|
|
Grant from Ozone Projects Trust Fund |
32.930 |
41.080 |
0.000 |
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TOTAL |
13796.670 |
11275.570 |
7975.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7873.860 |
5352.480 |
4763.200 |
|
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Capital work-in-progress |
0.000 |
0.000 |
14.300 |
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|
|
|
|
|
|
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INVESTMENT |
399.440 |
431.680 |
420.000 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
3332.800
|
2883.150 |
2598.500 |
|
|
Sundry Debtors |
2757.640
|
3158.310 |
2118.900 |
|
|
Cash & Bank Balances |
138.520
|
142.320 |
162.200 |
|
|
Other Current Assets |
13.450
|
15.610 |
0.000 |
|
|
Loans & Advances |
930.920
|
467.120 |
301.400 |
|
Total
Current Assets |
7173.330
|
6666.510 |
5181.000 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
1595.560
|
1088.480 |
2361.900 |
|
|
Provisions |
54.400
|
86.620 |
41.000 |
|
Total
Current Liabilities |
1649.960
|
1175.100 |
2402.900 |
|
|
Net Current Assets |
5523.370
|
5491.410 |
2778.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13796.670 |
11275.570 |
7975.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.09.2007 |
30.09.2006 |
30.09.2005 |
|
|
Sales Turnover |
12914.830 |
11198.570 |
11294.700 |
|
|
Other Income |
266.090 |
275.460 |
54.900 |
|
|
Total Income |
13180.920 |
11474.030 |
11349.600 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
295.770 |
16.140 |
385.600 |
|
|
Provision for Taxation |
168.200 |
(21.970) |
113.800 |
|
|
Profit/(Loss) After Tax |
127.570 |
38.110 |
271.800 |
|
|
|
|
|
|
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
745.880 |
781.930 |
NA |
|
|
Capital Goods |
1.830 |
0.670 |
NA |
|
Total Imports |
747.710 |
782.600 |
NA |
|
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|
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Expenditures : |
|
|
|
|
|
|
Cost of Goods Sold |
10702.960 |
9439.390 |
0.000 |
|
|
Manufacturing Expenses |
552.020 |
462.340 |
0.000 |
|
|
Administrative Expenses |
0.000 |
0.000 |
39.900 |
|
|
Raw Material Consumed |
0.000 |
0.000 |
8854.800 |
|
|
Purchases made for re-sale |
0.000 |
0.000 |
170.600 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
(47.400) |
|
|
Salaries, Wages, Bonus, etc. |
200.710 |
140.530 |
0.000 |
|
|
Interest |
542.590 |
421.730 |
500.100 |
|
|
Power & Fuel |
0.000 |
0.000 |
65.400 |
|
|
Excise Duty |
0.000 |
0.000 |
343.200 |
|
|
Employees Cost |
0.000 |
0.000 |
126.100 |
|
|
Impairment Loss |
40.060 |
269.430 |
0.000 |
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
166.500 |
|
|
Depreciation & Amortization |
846.810 |
724.470 |
744.800 |
|
Total Expenditure |
12885.150 |
11457.890 |
10964.000 |
|
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.09.2008 (Full Year) |
|
Sales Turnover |
|
|
12776.600 |
|
Other Income |
|
|
87.600 |
|
Total Income |
|
|
12864.200 |
|
Total Expenditure |
|
|
11277.600 |
|
Operating Profit |
|
|
1586.600 |
|
Interest |
|
|
550.400 |
|
Gross Profit |
|
|
1036.200 |
|
Depreciation |
|
|
908.700 |
|
Tax |
|
|
41.000 |
|
Reported PAT |
|
|
86.500 |
KEY RATIOS
|
PARTICULARS |
30.09.2007 |
30.09.2006 |
30.09.2005 |
|
Debt Equity Ratio |
2.07 |
1.90 |
1.32 |
|
Long Term Debt
Equity Ratio |
0.62 |
0.86 |
0.72 |
|
Current Ratio |
0.93 |
1.18 |
1.21 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.04 |
1.05 |
1.09 |
|
Inventory |
4.31 |
4.24 |
4.51 |
|
Debtors |
4.53 |
4.41 |
5.30 |
|
Interest Cover
Ratio |
1.37 |
1.14 |
1.77 |
|
Operating Profit
Margin (%) |
12.41 |
10.86 |
14.44 |
|
Profit Before
Interest and Tax Margin (%) |
6.08 |
4.63 |
7.84 |
|
Cash Profit
Margin (%) |
7.03 |
6.54 |
9.00 |
|
Adjusted Net
Profit Margin (%) |
0.71 |
0.31 |
2.41 |
|
Return on Capital
Employed (%) |
7.36 |
6.74 |
12.97 |
|
Return on Net
Worth (%) |
2.61 |
1.25 |
10.22 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY:
Promoted by the Dhoot family,
the company is one of the leaders of the Videocon group. Commencing business
with colour television sets in 1982, the company now manufactures and markets a
wide range of products like light dimmers, solid state fan regulators, musical
door bells/chimes, voltage stabilisers, emergency lamps and quartz clocks under
the Rider brand name. The group's flagship company first went public in Oct.'87
and the issue was over-subscribed by 27 times. The group has wide ranging
interest in trading, investment and manufacturing.
Enthused by the market response for their products and acknowledging the
need for indigenisation, the company undertook a major
expansion-cum-diversification programme in 1989, to manufacture color TVs,
BandW picture tubes, major electronic components and audio systems. Washing
machines, refrigerators, airconditioners, vacuum cleaners, bread-making
machines and motors, are the other items in their list of products. To raise
capital for this diversification programme, the company visited the capital
market once again in Sep.'91 with a debenture issue.
The company has collaborations with two Japanese companies -- Matsushita
and Toshiba. It is also the first company in the electronics industry to go for
an Euro-issue. The $90-mln GDR issue attracted investor support from the UK,
the US, Germany, France, Switzerland, Hongkong and Singapore.
The company has installed New Capacitor Banks to improve the power factor resulting
in reduction in energy consumption. The company is developing and planning to
introduce more auotmated products and new models and varieties of washing
machines with advanced features in the coming days.
FINANCIAL RESULTS:
During the year, the Company posted a total income of
Rs.13,180.92 Million as against total income of Rs.11,474.03 Million for the
previous year ended 30th September 2006. The profit after tax amounted to
Rs.127.57 Million as against profit after tax of Rs. 38.11 Million for the
previous period.
On October 26, 2007, the Hon'ble High Court of Judicature at Bombay sanctioned
the Scheme of Amalgamation of Ranjangaon Industries Private Limited (Formerly
Matsushita Washing Machine India Private Limited) with the Company. The Scheme
became effective on October 31, 2007. The appointed date was March 1, 2006. The
performance of the Company includes the effect of said amalgamation. Pursuant
to the Scheme, the Company will allot 6,138,359 Equity Shares of the Company to
the Shareholders of erstwhile Ranjangaon Industries Private Limited.
SIGNIFICANT DEVELOPMENTS AFTER BALANCE SHEET DATE:
The Board of Directors of the Company, at its meeting held on February 9, 2008,
inter-alia accorded their approval to the following:
* In order to diversify its activities and to de-risk the business model,
the Company has proposed to expand its product portfolio. The Board of
Directors of the Company has proposed to alter the Object Clause of the
Company, by insertion of additional clause relating to providing, executing,
implementing, hiring, working as EPC Contractors, Providing turnkey services
for industrial activities and manufacturing, trading, of all kinds of
machineries, components, engineering equipments, etc., and
* Change the name of the Company to "subject"
The Board has decided to pass inter-alia the above mentioned business(es)
through Postal Ballot.
MANAGEMENT
DISCUSSION AND ANALYSIS
Videocon Appliances Limited ("VAL or the "Company") is engaged
in the Manufacturing and Trading of various Consumer Electronics and Home
Appliances viz. Air Conditioners, Washing Machines and Refrigerators. VAL was
originally established in 1988. The Company is since then, a major player in
the Consumer Electronics and Home Appliances Industry. The products of the
Company have a wide acceptance across the Country and enjoys high levels of
Consumer Satisfaction and confidence.
INDUSTRY STRUCTURE AND DEVELOPMENT:
The Indian Economy appears to be moving in a new growth era. In the year, the real
GDP grew by 9.2% which represents the second highest GDP growth for the
Country. There has been a huge investment in various sectors and this coupled
with opening up of various sectors for Foreign Direct Investment has acted as
catalyst in the Indian Growth Story.
The Consumer durable goods industry in India is on the edge of an exponential
growth. There are various factors that fuelled the high growth for the
Industry. The rise in the income levels and standard of living has given rise
to huge demand for various High end products. The low penetration level of
Consumer durables in rural area is also a major factor affecting the industry,
since a major portion of the growth is from rural area. The industry is now
worth Rs. 200 billion and growing further.
The Company foresees an excellent growth for its products in the coming years.
The Indian economy is increasingly becoming consumption - led, creating a
number of opportunities for the growth of products of the Company. The Company
also sees tremendous growth opportunities in rural markets, where the
penetration level for refrigerator is as low as 2% and that for washing machine
is 0.5%. The Company also has been very aggressive on the Research and
Development, which further enhances the growth potential for the Company. The
Company is primarily into the business of manufacturing and trading of
following:
WASHING MACHINE:
This segment has shown a modest growth of 10% during the
period. The growth has been mainly on account of growth in the demand for Fully
Automatic Washing Machines. The Company has been able to increase its market
share by constant improvement in its existing models and introducing products
with advance features. The Company has launched X-Lent range of washing
machines with advances features such as:
* Fuzzy Logic
* Memory Control
* Stainless Steel Drum
* Delayed Start
* Anti rodent base
* Stainless Steel Finish
* Low Water consumption technology
The Company has received excellent response from its customers for the product.
The Company is striving hard to upgrade its products to enable it to compete
with the Indian as well as foreign players.
REFRIGERATOR:
The Refrigerator Segment consists of two sub-segments viz.,
Frost Free and Direct Cool. There has been a high growth in Frost Free segment
as compared to Direct Cool. The Frost Free Refrigerators account for nearly 25%
of the Refrigerator market in India. The Company has been introducing models
with advanced features, so at to enhance its market share. The Products of the Company
comes with advanced features such as:
* Multi Air Flow
System
* Platinum Auto Deodorizer
* Chrome Plated Door
* Digital Omni flow
* CFC Free
* Humidity Control Crisper
The Company expects an improvement in the overall market Share
in the coming years through constant innovation and greater cost
efficiency.
AIR CONDITIONERS:
There has been an exponential growth in this segment. The
reduction in the cost of split Air Conditioners has seen a spurt in the demand
as compared to window Air Conditioners. The growth in this segment is mainly on
account of hot climatic conditions in India, reduction in price of Air
Conditioners, increasing urbanization and rising income levels. The Company
expects the growth in the segment to double in the next five years. The Company
has introduced various features to make the products of the Company competitive
in the market. The products of the Company comes with features such as:
* Anti Bacterial Filter
* ESP Plasma Ionizer
* PTCR (Positive Temperature Go-efficient Resistor)
* Self Diagnosis Function
* Ion Recharger
OPPORTUNITIES AND THREATS:
The Company has identified certain opportunities so as to maximize the wealth
of its stakeholders such as:
* Growing Economy and increasing GDP can drive demand for
consumer goods;
* The Large scale operations can improve the margins of the
Company; * There are opportunities to outperform in Domestic Market with
innovative Products;
* To make effective use of Fully Integrated Manufacturing Facility;
* Launch of own brand in emerging markets;
* Focus of customer is shifting from un-branded to branded goads in view
of reduction in prices;
* Increasing trend to
shift products with latest technology; and Consumer friendly finance options to
purchase products.
The Company also perceives certain threats that can be of potential harm to the
Company. The threats perceived
by management are as mentioned herein below:
* The Prices of Consumer Electronics and Home Appliances have been
continuously decreasing, putting pressure
on margins of the Company;
* Exchange schemes and pricing can have a negative impact on
Industry;
* Fast changing advancement in technology can lower the sales of
the Company;
* Videocon brand is popular in Indian markets. It is still to establish
its brand value in overseas markets; and
* The Cost of marketing, advertising and after sale services are ever
increasing.
SEGMENT PERFORMANCE:
The Company has only one segment viz., "Consumer Electronics and
Components/parts thereof" as per the Accounting Standard on Segment
Reporting (AS-17) of ICAI.
FINANCIAL PERFORMANCE:
The financial performance for the year
is not comparable with the performance of the previous year, since during
the year `Ranjangaon Industries Private Limited' was amalgamated with the
company. Hence, the figures for the current year include performance of
`Ranjangaon Industries Private Limited' from 1st October, 2006 to 30th
September 2007.
Sales
During the year under consideration, the Company achieved a
turnover of Rs.13,393.04 million as against Rs.11,630.11 million during the
previous year ended on 30th September 2006, thereby recording an increase of
15.16% in turnover as compared to previous year.
Other Income
Other income for the year was Rs. 266.09 million as against
Rs.275.46 million during the previous year ended on 30th September, 2006,
representing an decrease of 3.40% as compared to previous year. Other income
comprises of Income from investments and securities division, profit on sale of
fixed Assets, exchange rate fluctuation, interest and Miscellaneous
income.
Expenditure:
Cost of Goods Consumed:
Cost of Goods Consumed stood at Rs.10,702.96 Million as
against Rs.9,439.39 Million during the previous year ended on 30th September
2006.
Salaries Wages and Employees Benefits:
During the year the
Salary and Wages stood at Rs.200.71 Million as against Rs.140.53 Million for
the previous period ended on 30th September, 2006 representing an increase of
42.82% as compared to previous year.
Manufacturing and Other Expenses:
During the year the
manufacturing and other expenses were Rs.552.02 Million as against Rs. 462.34
Million for the previous year ended on 30th September, 2006 representing an
increase of 19.40% as compared to previous year.
Interest and Finance Charges:
For the year ended 30th September 2007, Interest and Finance
charges amounted to Rs.542.59 Million as against Rs.421.73 million for the
previous year ended on 30th September, 2006 thereby recording an increase of
28.66% compared to previous period. The increase is mainly on account of
increase in interest rates and increase in borrowings.
Depreciation:
Net Depreciation (excluding depreciation on revalued assets) amounted to Rs.
846.821 Million as against Rs. 724.47 Million far the previous year ended on
30th September, 2006 thereby recording an increase of 16.89% as compared to
previous year. The increase in depreciation is on account of additions of fixed
assets.
Profit Before Tax and Exceptional Items:
As a result of the forgoing, the profit before tax and
exceptional items was Rs. 335.83 Million for the year ended 30th September 2007
as against Rs.285.57 Million for the previous year ended on 30th September, 2006
there by recording an increase of 17.60% in the Profit before tax and
exceptional items.
Exceptional Items:
For the year ended 30th September 2007, The Company has
provided for impairment loss of Rs. 40.06 Million as against an impairment loss
of Rs.269.43 Million for the previous year.
Provision for Taxation:
Provision for Taxation includes Provision for Current Tax,
Deferred Tax and Fringe Benefit Tax. During the year, the Company has provided
Rs. 33.35 Million for Current Tax, Rs. 133.34 Million for Deferred Tax and
Rs.1.51 Million for Fringe Benefit Tax as against Rs. 52.50 Million for Current
Tax, Credit of Rs. 75.12 Million for deferred tax and Rs. 0.65 Million for
Fringe Benefit Tax for the previous year ended 30th September, 2006.
Net profit:
Net Profit for the year increased to Rs.127.57 Million from
Rs.38.11 Million for the previous year ended 30th September, 2006 representing
an increase of 234.74% in Net profit.
INTERNAL CONTROL SYSTEM:
The Company has an internal control system commensurate with its size and
nature of business. These provide a reasonable assurance that all its assets
are safeguarded properly and transactions undertaken are duly authorised by a
competent authority. The internal control system provides for well documented
policies, guidelines, authorization and approval procedures. The Actual
performance of the Company is compared with the established standards to check
for material deviations and their impact on the overall business operations of
the Company.
The Internal Audit Committee submits its report to the Audit Committee of the
Board to ensure compliances with policies, plans and statutory
requirements.
Ranjangaon Industries Private Limited, formerly known as
Matsushita Washing Machine India Private Limited, (RIPL or the amalgamated
company) has been amalgamated with the company with effect from 01.03.2006 (the
appointed date) in terms of the scheme of amalgamation (the scheme) sanctioned
by the Hon’ble High Court of judicature at Bombay vide its order dated
26.10.2007. The Scheme has become effective on 31.10.2007. For giving effect to
the Scheme, the following accounting treatment has been given in the accounts:
a)
Amalgamation has been accounted for under the “Pooling Interest
method” as prescribed by Accounting Standard 14 “accounting for amalgamations”
issued by the Institute of Chartered Accountants of India. Accordingly, the
assets and liabilities and reserves of RIPL have been regarded at their book
value in the accounts of the company.
b)
RIPL was mainly engaged in the business of manufacturing,
marketing and distribution of washing machines. In accordance with the Scheme,
the entire business and undertaking of RIPL stands transferred and vested in
the Company with effect from the appointed date i.e. 01.03.2006. Pursuant to
the scheme, in consideration of the said transfer, 6138359 equity shares of
Rs.10 each fully paid up, of the Company in the ratio of one fully paid up
equity share of the company for every eighteen equity shares RIPL, have to be
issued and allotted at par to the shareholders of RIPL. Pending the allotment
of the said equity shares pursuant to the scheme, the amount has been shown as
“Share Capital Suspense”. The difference between the paid up value of the
shares allotted and the paid up value of the equity share capital of RIPL
amounting to Rs.1043.52 millions has been adjusted against the reserves.
Fixed Assets :
Ø Freehold Land
Ø Leasehold Land
Ø Building
Ø Plant and Machinery
Ø Electrical Installations
Ø Computer
Ø Furniture and Fixtures
Ø Office Equipments
Ø Vehicles
WEBSITE DETAILS:
About Videocon Appliances
Videocon deems it a privilege that it is in a position to prolong instances of
joy and spirit. And lend much needed variety and flair in everyone's life.
An Indian multinational, a global force in display technologies and a
group on the threshold of even bigger things.
There are new horizons to breach, new
frontiers to conquer and simply no pause buttons on the Videocon play. Expect
the unexpected, the uncharted and the unlimited. Keep watching.
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 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.47.59 |
|
UK Pound |
1 |
Rs.74.55 |
|
Euro |
1 |
Rs.60.57 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|