MIRA
INFORM REPORT
|
Report Date : |
05.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
VOLTAS LIMITED |
|
|
|
|
Registered
Office : |
Voltas House,
"A", |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
06.09.1954 |
|
|
|
|
Com. Reg. No.: |
11-009371 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 330.885 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29308MH1954PLC009371 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV07842C/
MUMV07713G/ NGPV00559G/ MUMV04539D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV2809D |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of
Air Conditioners, Refrigeration Equipments, Engineering, Electrical and
Agricultural Equipments. |
|
|
|
|
No. of Employees
: |
11527 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 50870000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an
established company having fine track. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office : |
Voltas House
"A", |
|
Tel. No.: |
91-22-56656666/
46102000/ 22618131 |
|
Fax No.: |
91-22-56656311/
22/ 46102331/ 22618504 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Thane Plant: 2nd |
|
Tel. No.: |
91-22-67920111 |
|
Fax No.: |
91-22-25343258 |
|
|
|
|
Factory 2 : |
Uttarakhand
Plant (EM AND RBG) Plot No.1, Sector 8,, I.I.E. Pant Nagar Industrial Area, District |
|
Tel. No.: |
91-5944-250006 / 8 |
|
|
|
|
Factory 3 : |
Dadra Plant (EM AND RBG) Shreenath
Industrial Estate, C Building, Survey No.197, Near Dadra Check Post, Dadra –
396 230, |
|
Tel. No.: |
91-260-6619999 / 2669648 |
|
Fax No.: |
91-260-2669647 |
|
|
|
|
Factory 4 : |
Uttarakhand Plant (UPBG) Plot Nos.2-5,
Sector 8 I.I.E. Pantnagar Industrial Area, District Udham Singh Nagar,
Rudrapur - 263 145, |
|
Tel. No.: |
91-5944-250009 |
|
|
|
|
Overseas
Office 1 : |
Tata Limited ( 18, |
|
Tel. No.: |
44-207-2358281
/ 8 (Board Line) |
|
Fax No.: |
44-207-2358727 |
|
E-Mail : |
|
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|
Overseas
Office 2 : |
Voltas Limited ( |
|
Tel. No.: |
00971 (0) 2
6504511 (Board Line) |
|
Fax No.: |
00971 (0) 2
6504341 00971 (0) 2
6504361 |
|
E-Mail : |
|
|
|
|
|
Overseas
Office 3 : |
Saudi Ensas Company for Engineering
Services WLL P O Box No. 8292, Salama Centre, Tower 5B,
3rd Floor, Prince
Sultan Street, Jeddah
21482 Kingdom
of Saudi Arabia |
|
Tel. No.: |
9662 6831466,
6165957 / 8 / 9 (Board Line) |
|
Fax No.: |
9662 69115400 |
|
E-Mail : |
|
|
|
|
|
Overseas
Office 4 : |
Voltas Limited ( 4th Floor, Zayani
House 419, Road 1705, Diplomatic Area, |
|
Tel. No.: |
9731-7581979 |
|
Fax No.: |
9731-7581320 |
|
E-Mail : |
|
|
|
|
|
Overseas
Office 5 : |
Voltas Limited ( Al |
|
Tel. No.: |
974 44569941 / 6 /
7 (Board Line) |
|
Fax No.: |
974 44551268 |
|
E-Mail : |
|
|
|
|
|
Overseas
Office 6 : |
Voltas Limited ( |
|
Tel. No.: |
+ 966 2 6831466 |
|
|
|
|
Overseas
Office 7 : |
Voltas Limited ( |
|
Tel. No.: |
65
- 63366778 (Board Line) |
|
Fax No.: |
65
- 63366766 |
|
E-Mail : |
DIRECTORS
As on 16.08.2011
|
Name : |
Mr. Ishaat
Hussain |
|
Designation : |
Chairman cum
Managing Director |
|
Date of Birth |
02.09.1947 |
|
Qualification |
Chartered
Accountant, |
|
Date of
Joining |
26.04.1999 |
|
Other
Directorship |
|
|
Chairman/Member
of other company |
|
|
|
|
|
Name : |
Mr. Sanjay Johri |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Nasser Munjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
|
|
|
Name : |
N.D. Khurody |
|
Designation : |
Director |
|
|
|
|
Name : |
N.N Tata |
|
Designation : |
Director |
|
|
|
|
Name : |
J.S. Billimoria |
|
Designation : |
Director |
|
|
|
|
Name : |
S.N. Menon |
|
Designation : |
Director |
|
|
|
|
Name : |
Nani Javeri |
|
Designation : |
Director |
|
|
|
|
Name : |
R.N. Mukhija |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. V. P.
Malhotra |
|
Designation : |
General Manager –
Taxation and Company Secretary |
|
|
|
|
AUDIT
COMMITTEE : |
|
|
|
|
|
Remuneration Committee : |
|
|
|
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|
SHAREHOLDERS/
INVESTORS GRIEVANCE
COMMITTEE : |
|
|
|
|
|
CORPORATE
MANAGEMENT : |
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
101012237 |
30.53 |
|
|
101012237 |
30.53 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
101012237 |
30.53 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
26113227 |
7.89 |
|
|
802.146 |
0.24 |
|
|
76448098 |
23.10 |
|
|
58265133 |
17.61 |
|
|
161628604 |
48.85 |
|
|
|
|
|
|
5659110 |
1.71 |
|
|
|
|
|
|
42975745 |
17.04 |
|
|
1807950 |
1.32 |
|
|
|
|
|
|
89850 |
0.55 |
|
|
2186494 |
1.32 |
|
|
2105027 |
0.64 |
|
|
68243899 |
20.62 |
|
Total Public shareholding (B) |
229872503 |
69.47 |
|
Total (A)+(B) |
330884740 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
330884740 |
100.00 |
(1)
Indian
Bodies
Corporate
Individual
shareholders holding nominal share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Air Conditioners, Refrigeration Equipments, Engineering, Electrical and
Agricultural Equipments. |
||||||||||
|
|
|
||||||||||
|
Products : |
·
Refrigerators
Household Compression Type ·
Air
Conditioning Machines Window or Wall Types Self Contained ·
Refrigerating Equipment Absorption Heat Pumps
and Centrifugal Chillers |
GENERAL INFORMATION
|
No. of Employees : |
11527 (Approximately) |
|||||||||
|
|
|
|||||||||
|
Bankers : |
Overseas
|
|||||||||
|
|
|
|||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Messrs Deloitte
Haskins and Sells Chartered
Accountants |
|
|
|
|
Solicitors : |
|
|
|
|
|
Membership : |
Confederation of
Indian Industry |
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Joint Ventures : |
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
600000000 |
Equity Shares |
Re.1/- each |
Rs.600.000
millions |
|
4000000 |
Redeemable Preference Share |
Rs.100/- each |
Rs.400.000
millions |
|
|
Total |
|
Rs.1000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
330884740 |
Equity Shares |
Re.1/- each |
Rs.330.885
millions |
|
|
Less: Calls in Arrears |
|
Rs.0.142 millions |
|
|
Total |
|
Rs.330.743 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
330.743 |
330.737 |
330.734 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
12386.648 |
9621.515 |
6959.205 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
12717.391 |
9952.252 |
7289.939 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
939.055 |
190.806 |
1284.426 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
939.055 |
190.806 |
1284.426 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13656.446 |
10143.058 |
8574.365 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1946.013 |
1670.714 |
1633.946 |
|
|
Capital work-in-progress |
31.842 |
76.112 |
96.514 |
|
|
|
|
|
|
|
|
INVESTMENT |
3862.289 |
3399.666 |
2358.003 |
|
|
DEFERREX TAX ASSETS |
169.636 |
190.347 |
215.858 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7557.118
|
6085.733 |
10514.305 |
|
|
Sundry Debtors |
10023.094
|
8472.800 |
8168.447 |
|
|
Cash & Bank Balances |
4290.297
|
4028.569 |
4002.444 |
|
|
Other Current Assets |
7491.244
|
4536.478 |
0.000 |
|
|
Loans & Advances |
2600.954
|
2362.073 |
2249.334 |
|
Total
Current Assets |
31962.707
|
25485.653 |
24934.530 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
12179.942
|
9855.086 |
|
|
|
Other Current Liabilities |
9227.232
|
8367.744 |
|
|
|
Provisions |
2908.867
|
2456.604 |
2447.580
|
|
Total
Current Liabilities |
24316.041
|
20679.434 |
20664.486 |
|
|
Net Current Assets |
7646.666
|
4806.219 |
4270.044 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13656.446 |
10143.058 |
8574.365 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales and Services |
51348.728 |
44933.747 |
40332.869 |
|
|
|
Other Income |
817.843 |
751.987 |
941.649 |
|
|
|
TOTAL (A) |
52166.571 |
45685.734 |
41274.518 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of sales, Services and Expenses |
47092.590 |
40959.784 |
37689.170 |
|
|
|
Exceptional Items |
(448.009) |
(363.939) |
(320.044) |
|
|
|
TOTAL (B) |
46644.581 |
40595.845 |
37369.126 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5521.990 |
5089.889 |
3905.392 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
130.811 |
69.569 |
66.153 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5391.179 |
5020.320 |
3839.239 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
164.546 |
163.925 |
165.948 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5226.633 |
4856.395 |
3673.291 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1691.300 |
1414.200 |
1147.401 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3535.333 |
3442.195 |
2525.890 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
820.554 |
622.540 |
586.040 |
|
|
|
|
|
|
|
|
|
Add |
Amount
Transferred to Foreign Projects Reserve |
0.000 |
27.500 |
30.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2700.000 |
2500.000 |
1900.000 |
|
|
|
Proposed Dividend |
661.769 |
661.769 |
529.416 |
|
|
|
Tax on Dividend |
107.356 |
109.912 |
89.974 |
|
|
BALANCE CARRIED
TO THE B/S |
886.762 |
820.554 |
622.540 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
474.056 |
347.602 |
263.843 |
|
|
|
Commission Earnings |
135.651 |
176.926 |
325.245 |
|
|
|
Other Earnings |
50.438 |
62.202 |
73.583 |
|
|
TOTAL EARNINGS |
660.145 |
586.73 |
662.671 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
232.394 |
159.217 |
248.594 |
|
|
|
Finished Goods |
4515.394 |
3890.721 |
4253.586 |
|
|
|
Stores & Spares |
2159.162 |
1564.782 |
697.427 |
|
|
|
Capital Goods |
3.478 |
11.099 |
5.239 |
|
|
TOTAL IMPORTS |
6910.428 |
5625.819 |
5204.846 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.68 |
10.40 |
7.63 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
13815.700 |
10556.100 |
|
Total Expenditure |
|
12937.600 |
10310.200 |
|
PBIDT (Excl OI) |
|
878.100 |
245.900 |
|
Other Income |
|
305.600 |
222.900 |
|
Operating Profit |
|
1183.700 |
468.800 |
|
Interest |
|
70.800 |
60.100 |
|
Exceptional Items |
|
814.700 |
249.800 |
|
PBDT |
|
1927.600 |
658.500 |
|
Depreciation |
|
91.100 |
74.700 |
|
Profit Before Tax |
|
1836.500 |
583.800 |
|
Tax |
|
579.500 |
178.200 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
1257.000 |
405.600 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
1257.000 |
405.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.78
|
7.53 |
6.12
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.18
|
10.81 |
9.11
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.41
|
17.88 |
13.83
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.41
|
0.48
|
0.50
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.99
|
2.09
|
3.01
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31
|
1.23
|
1.21
|
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The Business Environment during the year was full of
uncertainty both in domestic as well as in international markets. In
A very challenging and competitive environment prevailed in
the Middle East and there was a significant drop in announcement of new
projects in
Engineering Products and Services business had a conducive environment and in particular, Textile Machinery business performed well despite several unfavorable conditions like closure of looms in Tirupur due to environmental issues, high cotton prices and suspension of the Textile Up gradation Fund.
Materials handling business performed well due to higher
volumes. Despite several new mining projects getting impacted due to
non-availability of clearances and low award of new Road Construction projects,
Mining and Construction business has done well. In the Mining business, the
focus has been more on maintenance and operation contracts and stock and sale
of spares and accessories. A significant achievement of the business during the
year was its entry in
Exceptionally severe summer and the generally upbeat consumer sentiment in the early part of the year helped in significant improvement in volumes of Air conditioners, where the growth in Company’s volumes continued to be higher than the industry, resulting in an increase in the market share, from 15% to around 18%.
The Company continued to focus on higher productivity and lower costs as a means to improve its competitive position.
FINANCE
The Money market during most part of 2010-11 was tight with
rising interest costs and inflation in
Despite this, the liquidity position of the Company continues to be satisfactory with liquid investments of Rs. 2250.000 Millions. The Company also ensured that surplus funds are used to reduce borrowings of its subsidiary companies so that the overall cost of funds is minimised. However, there were some project specific borrowings in the international business which resulted in overall consolidated borrowings of Rs. 1380.000 Millions.
Inflationary pressures in
TATA BUSINESS
EXCELLENCE MODEL (TBEM)
The Company continued to put greater efforts on its business
excellence model through a number of improvement initiatives including Six
Sigma projects for operational excellence. The Balanced Scorecard mechanism
adopted by the Company was made more robust through a strategy deployment
matrix aimed at effective implementation of action plans in line with the
strategic objectives. The initiatives at the manufacturing plants in the area
of Total Quality Management and Total Productive Maintenance made satisfactory
progress. OHSAS 18001 was rolled out across some major areas and during the
current year, its coverage will be extended to other parts of the organization,
to enhance the culture of safety.
During the year the Company’s Unitary Products business
participated in the Tata Group level TBEM External Assessment and its
performance was rated as ‘Good Performance’, entitling the business to an award
at the Group level. Other businesses were subjected to a process of Internal
Assessment to evaluate their respective progress on the Business Excellence
journey. The overseas Electro mechanical business recently received the “Dubai
Quality Appreciation Programme Award” at UAE. This prestigious award was
presented to Subject by the Crown Prince of Dubai in the presence of the UAE
Prime Minister/Dubai’s Ruler, at a ceremony
IT INITIATIVES
The Company has taken various IT initiatives and SAP modules
implemented for the international Electro mechanical business have started
showing benefits in terms of better budgetary control. The Primavera project
management system has yielded better visibility of project schedules and
variances.
Customer Relationship Management (CRM) software for the
domestic Electro-mechanical business helped in better tracking of service calls
and service SLAs for maintenance projects. Project dashboards prepared in SAP
Business Objects yielded better control on project costs and working capital of
domestic Electro-mechanical as well as Mining and Construction Equipment
businesses.
The Unitary Products business continued its focus on
enhancing its Customer Relationship Management (CRM) system and using the
database for enabling better service deliveries. The automated system helped in
better management of dealer accounts.
The Company has also successfully made its IT systems IFRS
compliant.
COMMUNITY DEVELOPMENT
Community development takes the form of human development
through Subject Core Competency projects. The underlying belief is in the
sharing of knowledge and instruction and not charitable donation. The desired
outcome is to free recipients from dependence on hand-outs and make them
self-reliant and employable, with technical capabilities attested by
end-of-course certificates and various ‘soft’ skills. The Company continued to
partner with the
The Company increased its footprint by tying up with CAP
Foundation (
Affirmative Action is defined as a voluntary commitment by Indian companies to help the Government and civil society in the national endeavour to ensure equal opportunity to members of the Scheduled Castes and Scheduled Tribes (SCs/STs) communities. A beginning was made to embed Affirmative Action initiatives in the Company’s HR and other business activities. About 260 SC/ST trainees are presently undergoing technical training through such programmes.
Subject Organization of Women (VOW), a registered Public Charitable Trust, has been working towards providing medical and educational relief to the needy. The membership of VOW consists of lady employees and the wives of male employees. VOW supported the Bethany Society in the formation of self-help groups for women, the Shanti Avedna Sadan for terminally ill cancer patients and the Snehalaya Charitable Trust for vocational training for the mentally andphysically challenged, besides giving medical relief to the poor and needy. Under the aegis of VOW, volunteers from Subject as well as other Tata companies visited a village of the Kathkari tribe at Panvel to celebrate International Women’s Day. The volunteers donated food and utility items to all families in the village.
GLOBAL COMPACT AND CARBON DISCLOSURE PROJECT
The Company is a signatory to the UN Global Compact and adheres to the ten key principles based on universally agreed and internationally applicable values and goals in the areas of Human Rights, Labour Standards and Environment.
The Company is also a signatory to the Carbon Disclosure Project initiated by CDP-UK with Confederation of Indian Industries and World Wild Life Fund. The Company shares information pertaining to sustainability-related issues with CDP, on an annual basis.
SUBSIDIARIES AND
JOINT VENTURES
Uncertain conditions in the
Weather maker Limited (WML) engaged in the business of manufacturing galvanized iron, aluminium, black mild steel, stainless steel ducts and other specialty air distribution products is a wholly-owned subsidiary of the Company and has its manufacturing facility in Jebel Ali Free Zone, UAE. WML has reported turnover of AED 27.659 million and Profit of AED 3.882 million for the year ended 31st December, 2010.
Saudi Ensas Company for Engineering Services WLL (Saudi Ensas), a wholly-owned subsidiary of the Company
in Jeddah,
The Company has entered into a joint venture arrangement with Mustafa Sultan Group and established a joint venture company – Voltas Oman LLC on 15th February, 2011 in Sultanate of Oman with initial capital of Omani Riyal 500,000, to engage in the business of executing electro-mechanical projects in Sultanate of Oman. Voltas Oman LLC is a subsidiary of Subject and 65% of its capital is held by Voltas Netherlands B.V., a wholly owned subsidiary of Subject. The first financial year of Voltas Oman LLC is for the period between 15th February, 2011 and 31st December, 2011.
Lalbuksh Voltas Engineering Services and Trading LLC (Lalvol), a limited liability company incorporated in Sultanate of Oman is a joint venture company engaged in the business of Water Well Drilling, Water Management and Landscaping. The Company along with its subsidiary – Voltas Netherlands B.V. held 49% share capital and balance 51% was held by Lalbuksh Contracting and Trading Establishment LLC., the local partner.
Subject has recently through Voltas Netherlands B.V., acquired 11% shareholding of the local partner and increased the overall shareholding of Subject Group in Lalvol to 60%. Upon completion of the legal process, Lalvol became a subsidiary of the Company effective 31st March, 2011.
Universal Comfort Products Limited (UCPL), a wholly-owned
subsidiary of the Company, engaged in the business of manufacturing air
conditioners, has due to larger volumes of own manufactured air
conditioners, recorded higher turnover of Rs. 4920.000
Millions and Net Profit of Rs. 270.000 Millions
for the year ended 31st March, 2011 as compared to turnover of Rs.
3320.000 Millions and Net Profit of Rs. 140.000 millions
in the previous year.
During the year the Company increased its shareholding in
Rohini Industrial Electrical Limited (RIEL) from 67.33% to 83.67% of its share
capital. RIEL is engaged in undertaking large turnkey electrical and
instrumentation projects for industrial and commercial sectors. The performance
of RIEL was a major disappointment, where due to multiplicity of reasons,
profit of Rs.140.000 millions achieved in 2009-10 slid into a loss
of Rs.
350.000 millions in 2010-11, a swing of Rs. 490.000
millions However, the margins in the carry forward order book are at a
satisfactory level and therefore, going forward, there should be improvement in
its performance.
Pursuant to a joint venture arrangement with KION Group,
Germany, the Company has subsequent to the close of the financial year,
transferred its Materials Handling business to a joint venture company (JVC) –
Voltas Materials Handling Private Limited. Majority of the equity share capital
of the JVC is held by Linde Material Handling Asia Pacific Private Limited,
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The Company has shown a modest increase in revenues and
profits, in spite of several adverse factors. These included the slow-down in
capital investment; the rise in interest rates and commodity costs; and
increasing competition for fewer orders. On the positive side, there was strong
demand in areas of private consumption, greatly benefiting the Company’s
consumer durables business.
The Company continued to adapt its offerings and focus to
suit the prevailing markets and trends. It also intensified its efforts to
optimize costs and streamline processes to make them quicker to respond to
emerging opportunities.
The Company has evolved its business plans for the next five
years. These were captured and launched under the banner of ‘Voltas Vision
2015-16: Engineering solutions for a greener tomorrow’. The Vision was built on
the foundation of Tata Values and supported by the five cultural pillars of
Smart Thinking, Winning Attitude, Innovation & Initiative, Flexibility and
Teamwork (SWIFT)
The business segments of Subject (standalone and
consolidated) are:
Electro-mechanical Projects and Services
Engineering Products and Services
Unitary Cooling Products for Comfort and Commercial use
Others
The domestic addressable market for Mechanical, Electrical
and Plumbing (MEP) saw robust growth in certain sectors such as Healthcare and
Urban Infrastructure, mainly fuelled by the fructification of Government
investments. However, other traditional sectors such as Buildings and Office
Space remained flat, with demand dampened by spiraling commodity prices and
availability of surplus space.
The Company’s domestic Electro-mechanical business responded
in the areas of rising opportunities, resulting in
an overall increase in domestic order booking by 24%, and in
manufacturing output by 26% compared to the previous year. The Company made its
debut in the highly promising Metro Rail business by securing the order for
Chennai Metro Rail Project (CMRL) Phase-I. The project is for ‘design and
build’ Environment Control System (ECS) for 19 underground stations, including
one crossover station, spanning a 24 km distance, valued around Rs.
2000.000 millions.
Leveraging its record of successful completion of the F1
Grand Prix Circuit at
The Company strengthened its foothold in the healthcare
segment by securing orders for Heating Ventilation and Air conditioning (HVAC)
for the three AIIMS hospitals. This achievement builds on the repute
established in earlier successful hospital projects across
The Company notched a significant triumph in its thrust into
the ‘Green’ building sector, a key market in which it is well positioned, by
securing the order for HVAC solutions for the upcoming Paryavaran Bhawan
(Headquarters to the Ministry of Environment and Forests) in
In the development and launch of new products, the Company
again demonstrated its eco-friendly and energy saving focus. Some key examples
are:
Commissioning of the solar Vapour Absorption Machine (VAM)
working on steam and hot water, at
Introduction of Inverter Scroll VRF (Variable Refrigerant
Flow) System in addition to Digital scroll VRF System offering a full range of
choice for customers and enhancing the Company’s reach and competitive
advantage. Introduction of Ultraviolet lamp systems (for Air Handling Units
(AHU) coils and supply air ducts), kitchen exhaust and Sewage Treatment Plant
odour control systems, making it the most comprehensive Indoor Air Quality
(IAQ) player in
The Company has received various noteworthy recognitions and
certifications testifying to its adherence to global standards and norms,
principally:
Approval by the Air conditioning Heating and Refrigeration
Institute (AHRI) of the Company’s Dadra test facility, for having
satisfactorily met the test certificate requirements for conducting AHRI
certification tests on water chilling packages in accordance with the current
AHRI standards 550/590.
Conformite Europeene (CE) certification for the Company’s
VAMs and AHUs the AHUs also conform to EN1886: 1998 requirements, while the
chilled water coil is certified under AHRI-410.
Leveraging its global standards and compliances, the Company
commenced exporting to
In the Company’s international markets in the
The Company’s chosen geographies of
One of the Company’s significant achievements was the
satisfactory completion and commissioning of a major Design and Build project,
namely the recently inaugurated Ferrari World in Abu Dhabi, part of the Yas
Island Development in which the Company earlier carried out its successful Yas
Marina F1 Circuit project. As the world’s largest indoor theme park, Ferrari
World is truly an iconic development, in which the Company demonstrated project
capability of global calibre, in the face of formidable challenges. Ferrari
World is the flagship of Aldar Properties, one of the largest developers in the
area and as such holds the promise of further business of similar scale and
scope.
Arising out of delays in concluding designs with employers
on major projects namely,
The Company won several prestigious awards in the Middle
East, namely MEP Contractor of the Year, MEP Project of the Year (Ferrari Theme
Park) and MEP Project Manager of the Year. The Company also won the prestigious
Dubai Quality Appreciation award in the construction sector, in its first year
of participation. These accolades, along with the successful completion of
numerous iconic developments in the last few years, have reaffirmed the
Company’s recognized international standing.
Continuing with its strategy of careful selection of
geographies and local partners, the Company formed a Joint Venture Company
(JVC) in Sultanate of Oman, with Mustafa Sultan Enterprises, one of the trusted
business houses in the area and a prominent technology leader with diversified
businesses in various growth segments. The Company has a majority stake of 65%
in the JVC, with the balance 35% with the local partner.
The Company also signed a Joint Venture Agreement with
Olayan Group to form a 50:50 JVC in KSA. Olayan is one of the most influential
Groups in KSA, known for its presence in innumerable businesses through very
successful Joint Ventures with globally reputed companies; partnering with the
Group is expected to boost the Company’s business prospects in KSA.
Universal Voltas LLC (an Abu Dhabi-based JVC with 49%
Subject shareholding, carrying out small-to-medium-sized electro-mechanical
projects) recorded a drop in turnover from Rs. 1900.000 millions
to Rs. 1550.000 millions although the operating profit increased from Rs. 20.000
millions to Rs. 230.000 millions.
The slowdown in UAE affected the performance of the JVC, particularly the
intake of new orders. The JVC is, however, expected to show improvement in
performance in the ensuing year.
Weather maker Limited (a wholly-owned subsidiary in Jebel
Ali Free Zone, engaged in manufacturing of Air
Distribution products) had also witnessed performance lower than the
previous year, principally due to the economic slowdown in Dubai. Although it
operates in a challenging market, the Company managed its overall resources
well to achieve profits close to the budgeted levels.
Other Subsidiaries and JVC’s in this segment, viz., Saudi
Ensas Company for Engineering Services WLL, KSA and Universal Weathermaker
Factory LLC,
As a result of
With a view to upscaling the operations of Water Management
business, organizational changes were made during the year, including setting
up of a high-calibre leadership team, to provide fresh impetus to this
businessDuring the year, the Company’s Water Management business successfully
handed over a Sewage Treatment Plant (STP) at Keorapukur in Kolkata, of 45
million litres/day (MLD) capacity; an 8.3 MLD STP at Naba Diganta Industrial
Township, a project undertaken by the Company and JUSCO in Public- Private
Partnership; and a 7 MLD Effluent Treatment Plant (ETP) for Eastern Railways.
The Company has shown a jump in the level of new order
booking in this business, with orders for water systems for the steel melt shop
at Rourkela Steel Plant an intake pump house for Kolkata Municipal Water and
Sanitation Authority; an ETP with water reuse and zero liquid discharge for
Matix Fertilizers; a water treatment plant (WTP) and STP for the new Kolkata
Airport, among others. In terms of equipment business, the Company secured
orders for providing reactor clarifiers used in the pre-treatment of water for thermal
power generation, from Thermax, Wipro, BGR and others. Some of these are of the
largest diameters in the country.
ENGINEERING PRODUCTS
AND SERVICES
The Company’s Engineering Products and Services business witnessed strong overall growth leading to higher revenues and profitability.
The spinning sector of the Indian textile industry showed
sustained growth in 2010-11, with many new projects being initiated hence the
Company’s Textile Machinery business witnessed growth of over 50% in order
booking for Spinning machinery, despite the suspension of TUF scheme from July
2010. However, this affected the post spinning segment, resulting in subdued
demand for weaving, knitting and dyeing machinery. There were other pressures,
such as high input prices for cotton and synthetic fibre and increase in
interest rates, which also constrained the demand. Nevertheless, the Company
was able to consolidate and increase its business for THIES dyeing machinery
and weaving looms from
The mining and construction sectors sustained growth in demand for various categories of equipment, driven by the many mining and infrastructure projects. This led to higher off take of the Company’s Mining and Construction Equipment, such as crushing and screening equipment, mobile and crawler cranes, large excavators and mining loaders.
The Company earned sustained revenues from Parts and
Maintenance Contract Services, leading to good profitability for this business.
Such service capability played a key role in the Company’s successful entry
into
The demand for material handling equipment in the Indian
market was buoyant. The Company’s Materials Handling Equipment business
recorded its highest-ever order booking and sales of forklifts, warehousing
equipment and material handling systems. The order booking and sales increased
by around 40% and 34%, respectively. The Company introduced new range of
forklifts and warehousing equipment, which has improved its market position and
competitive advantage. The Company has also increased its business in exports
to the African market and obtained large orders for supply to
To better realize its future prospects, the Company has
recently transferred its Material Handling business to a JVC formed with the
KION Group of
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
The Indian room air conditioning industry got off to a very promising start in 2010. Due to the advent of a hot and early summer coupled with rising incomes, the industry registered a growth in sales volume of around 35%, according to estimates. While all players experienced rapid growth, the Company’s Unitary Cooling Products business made the best use of the favorable market conditions to achieve volume growth, in sales of air conditioners, of nearly 48%, making its brand the fastest-growing in the AC market and fuelling turnover growth of 37%, with divisional contribution growing by 33%.
Another significant factor was the continuing trend towards
energy-efficiency, with consumers increasingly upgrading to higher Star-rated
products. Consciousness of more efficient products (such as Inverter ACs), and
those that use greener refrigerants, is also gaining ground. Another notable
trend is the preference for coloured panels for split ACs. Taking cognizance of
consumer preferences, the Company launched new range of more than 70 models of
Window and
The advertising platform of “Sensible Cooling” was extended into the second year with the intent of educating the consumer on appropriate use, installation and maintenance of ACs, in order to derive maximum benefits. This platform, along with strategic media buys such as World Cup and IPL, helped the brand reach an all-time high market share of 18% in February 2011, according to GfK-Nielsen reports.
The Company continued to refine its flexible business model with the introduction of locally outsourced assembly, judiciously mixed with in-house manufacturing. New contract manufacturers were appointed in various parts of the country to shorten the time-to-market and also help the Company reduce its carbon footprint. This business model won recognition for its innovative spirit in the form of the TATA Innovista 2011 Award in the “Promising Innovations” category, won by the Company.
Other notable recognitions won by the Company included:
For business excellence: the TBEM Active Promotion Award
For brand performance: Power Brand 2011, Readers’ Digest Trusted Brand 2010 and Super brand 2010-11
For energy efficiency: Empower Award 2010 and Urjavaran Award
The Company’s Commercial Refrigeration business witnessed modest growth at around 13%.
Universal Comfort Products Limited (UCPL), the Company’s wholly-owned subsidiary and manufacturing arm for its room ACs, performed exceedingly well, with production ramped up to nearly 350,000 units and net profit of Rs. 270.000 millions as against Rs. 140.000 millions in the previous year.
OTHERS
Segment ‘Others’ comprises Lalbuksh Voltas Engineering Services and Trading LLC (Lalvol), a Joint Venture company (JVC), in Sultanate of Oman, engaged in horticulture, water management and purification. Lalvol had a shortened accounting period of nine months to facilitate change of financial year (April – March) to calendar year (January – December). The performance was affected by slow down of some of the contracts under execution. The JVC is, however, poised for improved order booking and overall performance in the ensuing year. Taking into consideration the long term business interest, the Company had acquired 11% shareholding out of 51% held by the local partner. The aggregate shareholding of the Company along with its subsidiary is 60% with the said acquisition. Upon completion of the legal process in Sultanate of Oman for transfer of the aforesaid shareholding, the JVC is now a subsidiary of the Company effective 31st March, 2011.
OPPORTUNITIES AND
OUTLOOK
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
Going forward, the domestic electro-mechanical (EM) business may be impacted by a slowdown in the first half of 2011-12, given rising interest rates, increased competition and consequent pressure on profit margins, dampening the investment sentiments. Once corporates gain confidence about the sustainability of the recent growth in consumption, growth is likely to pick up again in the second half, with new investment undertaken to support market demand.
The Company expects opportunities for its MEP offerings, arising from investments in the following key areas:
(a) Commercial construction, expected to increase multifold over the next few years. This will be driven by IT/ ITES related projects. Other key demand drivers include banking and financial services, fast moving consumer goods (FMCG) and telecom
(b) Industrial segment, especially capacity expansions planned by major companies in the next 5 years
(c) Infrastructure, in which substantial investments have been announced in both Public and Private sectors, to be realized in the coming years.
Additionally, in the construction sector, the Company sees opportunity for MEP growth, particularly arising from new economy growth in tier-2 and tier-3 markets.
There are opportunities for HVAC growth arising from:
The prevailing low penetration of central air conditioning in Indian markets
The increasing thrust on energy efficiency, reduced carbon footprint and climate change initiatives undertaken by corporates in their commercial construction.
In order to suitably seize these opportunities, the Company has made strategic plans for growth and the major areas are:
Ensuring customer engagement by aligning the offerings more closely with their requirements
Expanding into the EM space in chosen segments, while sustaining the market share in HVAC
Further developing cost-efficiencies to deliver maximum value to the customer
In-house R and D capabilities, new product development and manufacturing excellence aligned with the Company’s ‘Green’ orientation.
Creating a bandwidth in Human Resources for meeting long-term growth aspirations
In the Company’s
In the transportation segment, major projects have been
announced in
With increasing population, urbanization and
industrialization, the demand for water and waste water treatment is expected
to grow significantly. The industry is expected to grow in the range of 20%-25%
per annum over the next 3-5 years. This segment offers substantial
opportunities for the Company, in terms of market expansion, adoption of
appropriate technologies and increasing the scope and scale of work. Moreover,
the Company is in a position to capitalize on the highly successful execution
of sewage / waste water treatment facility of
ENGINEERING PRODUCTS
AND SERVICES
With the Indian economy poised to grow at 8%, the investment in capital goods and engineering products is likely to be sustained in the future, to support infrastructure projects such as airports, power plants, ports and roads, and also growth in manufacturing industries like textiles, automobiles and engineering. This would provide good opportunities for the Company’s Engineering Products and Services, in textile machinery and mining and construction equipment businesses.
The pending orders booked for textile spinning machinery is large and the Company will reap the benefits by execution of these orders over the coming years. The TUF scheme has been reinstated by the Government of India and will provide a boost for investment, especially in post-spinning sectors. Consequently, the Company expects sustained growth of its Textile Machinery business.
The Company has orders for mining equipment for coal and
iron ore projects, as well as many service contracts for maintenance and other
services. These will provide strong revenues and profitability in future years.
The Company’s own range of wheeled crushing and screening plants and cranes is
also seeing a pick-up in business, with good prospects for growth, linked to
the investments expected in infrastructure and road projects.
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
The domestic Room AC industry is expected to continue to grow by 25% in the years ahead, though there exists a distinct possibility of slightly tempered growth this year, given the delayed summer and un seasonal rains in the current season. Higher disposable incomes and rising wages, coupled with low penetration of ACs, will continue to drive demand. As consumers become increasingly conscious of energy efficiency, Star-rated products will increase as a consequence.
With significant demand coming from tier-2 and tier-3 markets, the Company will renew its efforts towards channel expansion beyond its current presence of 5,000 touch points. The Company is also investing in upgrading its service infrastructure and CRM (Customer Relationship Management) systems, in order to serve the customers better and faster. The Company has also lined up investments in R and D to continuously improve its products and offer innovative solutions to its customers.
Growth in demand in the Commercial Refrigeration segment is
expected to be driven by the need for quality products for end-user segments
such as retail, dairy and brewery, and cold chains. The Company, with its
superior product development capabilities and good market presence is
well-placed to further consolidate its market leadership position.
ENGINEERING PRODUCTS AND SERVICES
All the businesses in this segment are vulnerable to investment slowdown caused by increase in interest rates as well as to fluctuating exchange rates and the resultant uncertainties in material input costs. Additionally, there are threats, which are peculiar to specific businesses.
Since
A significant threat in mining and construction equipment sectors lies in delay/s in obtaining environment clearances for mining and infrastructure projects which would lead to considerable delays in project execution. In addition, there is a trend towards consolidation amongst global companies.
UNITARY COOLING PRODUCTS FOR COMFORT AND COMMERCIAL USE
As an increasing number of brands enter the market, the AC industry is witnessing signs of fragmentation. This tendency, coupled with limited product differentiation amongst brands, is the single most critical challenge for the Company’s room AC business, reinforcing the need for a sustainable value proposition. Further, as organized retail grows in size, so will its bargaining power, thereby compressing the margins of the Industry.
Sales forecasting and inventory planning is another major challenge, especially in light of increasingly erratic and unpredictable climatic conditions that could impact the demand. Macro-economic circumstances such as high interest rates and INR-USD fluctuations, along with surging commodity prices, are putting profitability under pressure.
BUSINESS DESCRIPTION
Subject is an engineering solutions provider and project
specialist. The Company offers engineering solutions for a range of industries
in areas, such as heating, ventilation and air conditioning, refrigeration,
electro-mechanical projects, textile machinery, mining and construction
equipment, materials handling equipment, water management and treatment, cold
chain solutions, building management systems, and indoor air quality. Business
segments of Subject are Electro-mechanical Projects and Services, Engineering
Products and Services, Unitary Cooling Products for Comfort and Commercial use,
and others. Others Segment consists of Lalbuksh Voltas Engineering Services and
Trading LLC (Lalvol), a Joint Venture company (JVC), in Sultanate of Oman,
engaged in horticulture, water management and purification. As of March 31, 2011,
the Company held 60% interest in Lalbuksh Voltas Engineering Services and
Trading L.L.C. For the nine months ended 31 December 2010, Subject revenues
increased 6% to RS35.67B. Net Income increased 5% to RS2.56B. Revenues reflect
an increase in income from engineering products and services and higher income
from Unitary Cooling Products for Comfort and Commercial use segment. Net
income was partially offset by increase in employee cost and increase in
consumption of raw material and services expenses.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX
MONTHS ENDED 30TH SEPTEMBER 2011
Rs. In Millions
|
Particulars |
Quarter Ended 30.06.2011 |
Sixth Month Ended 30.06.2011 |
|
Sales / Income from Operations |
10421.500 |
24307.200 |
|
Less: Excise Duty |
58.800 |
145.300 |
|
a) Net Sales / Income from Operations |
10362.700 |
24161.900 |
|
b) Other Operating Income |
193.400 |
209.900 |
|
Total Operating Income |
10556.100 |
10707.800 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
721.100 |
320.800 |
|
(b) Consumption of Raw Materials |
6109.100 |
11294.900 |
|
(c) Purchase of traded goods |
1281.900 |
6944.200 |
|
(d) Employees Cost |
1354.800 |
2707.100 |
|
(e) Depreciation |
74.700 |
165.800 |
|
(f) Other Expenditure |
843.400 |
1980.800 |
|
Total Expenditure |
10384.900 |
23413.600 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
171.200 |
958.200 |
|
Other Income |
222.900 |
528.500 |
|
Profit/(Loss) before Interest and Exceptional items |
394.100 |
1486.700 |
|
Interest |
60.100 |
130.900 |
|
Profit / (Loss) after interest before Exceptional items |
334.000 |
1355.800 |
|
Exceptional Items |
249.800 |
1064.500 |
|
Profit / (Loss) From
Ordinary activities before Tax |
583.800 |
2420.300 |
|
Provision for Taxation |
|
|
|
- Current including Differed Tax |
178.200 |
757.700 |
|
- Fringe benefit Tax |
0.000 |
0.000 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
405.600 |
1662.600 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
330.700 |
330.700 |
|
Reserves (Excluding Revaluation Reserves) |
|
|
|
Public Share
Holding |
|
|
|
-Basic |
1.22 |
5.02 |
|
-Diluted |
1.22 |
5.02 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
229872503 |
229872503 |
|
- Percentage of shareholding |
69.47% |
69.47% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
- |
Nil |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
- |
Nil |
|
- Percentage of shares(as a % of the total share capital of the company) |
- |
Nil |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
101012237 |
101012237 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
30.53% |
30.53% |
CONSOLIDATED SEGMENT INFORMATION FOR THE QUARTER ENDED 30.06.2010
Rs. In Millions
|
Sr. No |
Particulars |
Quarter Ended 30.06.2011 |
Sixth Month Ended 30.06.2011 |
|
1 |
Segment Revenue |
|
|
|
|
a) Segment – A (Electro-mechanical Projects and Services) |
6964.100 |
13116.000 |
|
|
b) Segment – B (Engineering Products and Serivces) |
1202.200 |
2174.700 |
|
|
c) Segment – C (Unitary Cooling Products for Comfort and Commercial use) |
2199.300 |
8880.900 |
|
|
d) Others |
|
|
|
|
Less: inter segment revenue |
2.900 |
9.700 |
|
|
Net Sales/Income
from operations |
10362.700 |
24161.900 |
|
2 |
Segment Results
after Exceptional Items |
|
|
|
|
a) Segment – A (Electro-mechanical Projects and Services) |
44.600 |
300.800 |
|
|
b) Segment – B (Engineering Products and Services) |
177.800 |
347.900 |
|
|
c) Segment – C (Unitary Cooling Products for Comfort and Commercial use) |
50.300 |
549.000 |
|
|
d) Others |
0.000 |
0.000 |
|
|
Total |
272.700 |
1197.700 |
|
|
Less: Interest (Net) |
60.100 |
130.900 |
|
|
Less: Other unallocable expenditure net of un-allocable income |
(371.200) |
(1353.500) |
|
|
Profit from
Ordinary Activities before tax |
583.800 |
2420.300 |
|
|
Capital Employed |
|
|
|
|
a) Segment – A (Electro-mechanical Projects and Services) |
5734.600 |
5734.600 |
|
|
b) Segment – B (Engineering Products and Serivces) |
1013.800 |
1013.800 |
|
|
c) Segment – C (Unitary Cooling Products for Comfort and Commercial use) |
2771.300 |
2771.300 |
|
|
d) Others |
(5.500) |
(5.500) |
|
|
e) Unallocated |
4876.100 |
4876.100 |
|
|
Total |
14390.300 |
14390.300 |
Notes:
- Segment ‘C” is seasonal in nature with sales usually being highest in the first quarter.
- The company has transferred the materials handling business (part of segment B’) effective 1st may 2011. Accordingly revenues, results and capital employed of segments B’ of the current quarter and six months are not comparable with the quarter.
- Segment results before exceptional items
(Rs. in millions)
|
Segment – A |
44.600 |
695.700 |
300.800 |
1234.500 |
2550.600 |
|
Segment – B |
177.800 |
264.200 |
347.900 |
540.000 |
1031.400 |
|
Segment – C |
50.300 |
244.100 |
549.000 |
713.700 |
1332.200 |
|
Others |
0.000 |
(0.100) |
0.000 |
(5.100) |
(7.600) |
|
Unallocated Income / (Expenses)- Net |
121.400 |
80.900 |
289.000 |
98.700 |
2.800 |
|
Interest |
(60.100) |
(25.300) |
(130.900) |
(65.600) |
(130.800) |
|
TOTAL |
334.000 |
1259.500 |
1355.800 |
2516.200 |
4778.600 |
Notes:
1) The Company has opted to publish
consolidated financial results, pursuant to option made available as per Clause
41 of the Listing Agreements.
2) Exceptional Items - Net:
(a) For the quarter ended 3Qth September, 2011
(quarter ended 30 September, 2010) comprises
Profit on sale of properties surrender of
tenancy rights Rs. 249.800 millions (Rs. 183.000 millions) and Charge of
Voluntary Retirement Scheme / Early Separation Scheme - Nil (Rs. 0.700
millions)
(b) For the six months ended September, 2011
(Six months ended 30 September, 2010) comprises:
Profit on sale of properties surrender of
tenancy rights Rs. 271.000 millions (Rs. 183.000 millions), Profit on transfer
of Materials Handling business – Rs. 793.500 millions (Nil) and Charge of
Voluntary Retirement Scheme Early Separation Scheme - Nil (Rs. 8.100 millions)
(c) For the year ended 31 March, 2011
comprises
Profit on sale of properties Rs. 416.900
millions, Net Surplus on Liquidation of a Subsidiary Rs. 41.400 millions and
Charge of Voluntary Retirement Scheme / Early Separation Scheme – Rs. 10.300
millions
3) There were no investor complaints pending
as on 1st July, 2011 and 30th September, 2011 three complaints were received
during the quarter ended 30th September, 2011 and disposed off.
4) Statement of Assets and Liabilities
(Rs. in millions)
|
Particulars |
As at 30.09.2011 |
As at 30.09.2010 |
|
Shareholders’ Funds |
|
|
|
(a) Capital |
330.700 |
330.700 |
|
(b) Reserves and Surplus |
14059.600 |
11446.100 |
|
Loan Funds |
2431.500 |
611.800 |
|
Total |
16821.800 |
12388.600 |
|
Fixed Assets |
1899.000 |
1900.700 |
|
Investments |
3897.300 |
2643.900 |
|
Deferred Tax Assets |
236.400 |
213.900 |
|
Current Assets, Loans and Advances |
|
|
|
(a) Inventories |
7582.300 |
6685.300 |
|
(b) Sundry Debtors |
11320.600 |
8769.400 |
|
(C) Cash and Bank balances |
2674.500 |
4826.700 |
|
(d) Other current assets |
6574.800 |
5589.100 |
|
(e) Loans and Advances |
2707.700 |
2437.400 |
|
Less : Current Liabilities and Provisions |
|
|
|
(a) Liabilities |
18179.700 |
18908.800 |
|
(b) Provisions |
1891.100 |
1769.000 |
|
Total |
16821.800 |
12388.600 |
5) The above results have been reviewed by the
Board Audit Committee and approved by the Board of Directors at its Meeting
held on 9th November, 2011.
6) The Statutory Auditors of the Company have
conducted a “Limited Review” of the aforesaid financial results.
7) Figures for previous period / year have
been regrouped, wherever necessary.
FIXED ASSETS:
v
v
v Building
v Plant and Machinery
v Furniture and Fittings
v Vehicles
v Intangible Assets: Manufacturing Rights and Technical Know-how
v Software
WEBSITE DETAILS:
PROFILE:
Company offers engineering solutions for a wide spectrum of
industries in areas such as heating, ventilation and air conditioning,
refrigeration, electro-mechanical projects, textile machinery, machine tools,
mining and construction equipment, materials handling, water management,
building management systems, indoor air quality and chemicals.
The Company's strengths lie principally in the:
- Design and manufacture of industrial equipment
- Management and execution of air conditioning and public works
projects
- Sourcing, installation and servicing of technology-based systems
- Representation of global technology leaders, serving diverse
industrial sectors and applications.
Operations
Company’s operations have been organized into four
independent business-specific clusters. Each of these has its own facilities for
market coverage and service to customers.
Electro-Mechanical
Projects and Services
- Electrical, Mechanical, HVAC and Refrigeration Solutions
- Electrical, Mechanical and HVAC Solutions (International)
- Water Management and Treatment
Engineering
products and Services
- Textile Machinery
- Mining and Construction Equipment
- Machine Tools
- Materials Handling Solutions
Unitary
Cooling Products for
- Comfort and Commercial Use
- Cooling Appliances
- Commercial Refrigeration
Others
- Chemicals Trading
Manufacturing
Company’s possesses total capability in the manufacture of
room/split air conditioners, industrial air conditioning and refrigeration
equipment, water coolers, commercial refrigerators, visicoolers, freezers and
fork-lift trucks. All these products bear the stamp of state-of-the-art
automated manufacturing plants resulting in consistently high quality and
reduced costs.
Furthermore, the Company is partnered with Fedders
International Inc. of
Projects
Over the years, Company has built up a substantial
reputation and is actively engaged in turnkey projects in fields such as
electro-mechanical works comprising electrical building services, HVAC, plumbing,
public Health, fire fighting, ELV and specialised systems; electrical power
projects; environmental and water pollution control; pumping stations and water
supply; water and waste water treatment projects. The Company has ISO 9001 -
2000 standards certification in this business, and has successfully undertaken
and executed project works in the Middle East, Far East and South East Asia,
CIS countries and
Marketing
Company’s sourcing and marketing operations cover air
conditioners, textile machinery, machine tools, mining and construction
equipment and industrial chemicals. In these sectors, the company demonstrates
its specialised engineering expertise, as well as its extensive network for
global sourcing.
NEWS:
Voltas
is now at the top of the list of '
The ranking is based on numerous criteria pertaining to
policies and practices beneficial to investors, as well as overall performance
norms.
To summarise the qualifying requirements and the elimination
and judging process followed by Business Today:
ENTRY
QUALIFICATIONS
- Entry limited to companies listed on BSE and NSE, with market
capitalization exceeding Rs.2500.000 Millions on 30 June '08
- From these, further limited to companies with daily turnover
exceeding Rs.10.000 Millions on NSE and BSE combined
- Further limited to companies which outperformed the BT 50 index for
each of the last three years
- Eliminated companies whose shares were not traded on July 1, 2005;
or which listed after June 30, 2008.
JUDGING
PARAMETERS
35 marks out of 100 for return to investors. Measured by
share price appreciation over last 3 years (adjusted for rights/bonus issues).
More than 1000% return (total, not annualised) received the full 35 marks
65 marks out of 100 for investor care, measured by 4 norms:
- Regular dividend distribution (full marks if average payment over
last 3 years exceeded 100%)
- Timely disclosure of shareholder information (full marks for under
10-day gap between quarter ending and results declaration)
- Low rate of investor complaints: zero marks if more than one
complaint per Rs.10.000 millions of public holding
- Timely convening of AGM: full marks if within 60 days of financial
year ending
- Based on this rigorous scrutiny,
BOARD OF DIRECTOR
R. N. MUKHIJA -
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. R.N. Mukhija is Non-Executive Independent Director of Subject. He is B. Tech. graduate in Electrical Engineering from IIT, Kharagpur. After graduation, he joined Larsen and Toubro Limited (L and T) in 1965 and held senior level responsibilities/positions in marketing, manufacturing/R and D. Mr. Mukhija was a Whole time Director and President (Electrical and Electronics) in L and T and retired in October 2010.
NOEL NAVAL TATA NON
INDEPENDENT NON-EXECUTIVE DIRECTOR
Mr. Noel N. Tata is Non Independent Non-Executive Director
of Subject. He holds B.A. (Economics) from
PRESS RELEASE
Voltas Limited
Announces Increase In Lalbuksh Voltas Engineering Services and Trading LLC In
Sultanate Of
Apr 05, 2011
Voltas Limited (Voltas) announced that Lalbuksh Voltas
Engineering Services and Trading LLC (Lalvol) a limited liability company
incorporated in the Sultanate of Oman is also a Joint Venture Company (JVC) of
Voltas Limited And
Mustafa Sultan Group Form Joint Venture Company
Mar 28, 2011
Voltas Limited announced a Memorandum of Understanding between Voltas and Mustafa Sultan Group to form a Joint Venture company (JVC) in the Sultanate of Oman. Accordingly upon completion of the legal process involved, a limited liability company - Voltas Oman LLC was incorporated in the Sultanate of Oman with initial capital of Omani Riyal (RO) 500,000 to be held in proportion 65% by Voltas Group and balance 35% by Mustafa Sultan Group. The JVC would engage in the business of executing electro mechanical projects in Sultanate of Oman.
Voltas Limited And
KION Group Join Forces In
Mar 21, 2011
Voltas Limited announced that the Company at its Meeting
held on March 19, 2011, have approved the proposal for formation of a joint
venture with Linde Material Handling GmbH (LMH), an affiliate of KION Group,
Germany for Materials Handling (MH) business of the Company. The transfer of MH
business is subject to fulfillment/satisfaction of certain conditions precedent
to Closing of the transaction. Upon Closing, the Company's MH operations would
be transferred to a Joint Venture Company (JVC), where LMH would hold majority
shareholding. The Company would also enter into a Supply Agreement with the JVC
for forklifts to be manufactured at Thane Plant and grant license for use of '
Tata
group chairmen: legacies and challenges
Mint
24 November 2011
Ratan Tata The current incumbent's stint coincided with the economic liberalization of the country, which unleashed a period of unforeseen growth for both the group and the country. When he took over, Ratan Tata's biggest challenge was to establish his authority over the heads of some Tata companies who ran their units as personal fiefdoms. Tata eased out some of these chiefs, consolidating his hold over the group, then spearheaded its expansion into new sectors such as telecommunications, cars, insurance, water, low-cost housing and food. History will best remember him for the acquisitions the group made: NatSteel, Tetley, Videsh Sanchar Nigam Ltd, General Chemical Industrial Products, Corus, Jaguar Land Rover, the heavy-vehicle unit of Daewoo Motors and several hotels around the world. His legacy also includes the development of the Tata Indica and the Tata Nano cars.
Cyrus P. Mistry The 43-year-old is at once both an insider and an outsider. His immediate challenge will be to learn the ropes quickly, graduating from running real estate and construction firms of the Shapoorji Pallonji Group (he will quit this role) that are based in the country and keep a very low profile, to managing a complex group that derives 58% of its revenue from overseas.
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.51.35 |
|
|
1 |
Rs.80.51 |
|
Euro |
1 |
Rs.69.14 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
NO |
|
--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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.