MIRA
INFORM REPORT
|
Report Date : |
10.12.2011 |
IDENTIFICATION DETAILS
|
Name : |
SHARP INDIA LIMITED |
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Registered
Office : |
Gat No. 686/4 Tal. Sirur Koregaon, Bhima, Pune – 412 216, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
05.07.1985 |
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Com. Reg. No.: |
11-36759 |
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Capital
Investment / Paid-up Capital : |
Rs.259.440 Millions |
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CIN No.: [Company Identification
No.] |
L36759MH1985PLC036759 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
pnek05203C |
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PAN No.: [Permanent Account No.] |
aaack8541m |
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Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of Consumer Durable Electronics. |
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No. of Employees
: |
300 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (32) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 980000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a company of Sharp Corporation, The company can be considered for business dealings with slight
caution, initially. |
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) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory : |
Gat No. 686/4 Tal. Sirur Koregaon, Bhima, Pune – 412 216, Maharashtra,
India |
|
Tel. No.: |
91-2137-666520 / 252417 (4 Lines) |
|
Fax No.: |
91-2137-252417 |
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E-Mail : |
mayuresh.vaze@sharpindialimited.com shekhar.chavan@sharpindialimited.com |
|
Website : |
www.sharpindialimited.com |
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Location : |
Owned |
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Region Offices: |
WESTERN REGION -
SHARP INDIA LIMITED Located at : · Pune · Mumbai · Ahmedabad · Indore EASTERN REGION - SHARP INDIA LIMITED Located at : · Kolkata SOUTHERN REGION - SHARP INDIA LIMITED Located at : · Bangalore · Kerala · Chennai · Coimbatore · Hyderabad
NORTHERN REGION -
SHARP INDIA LIMITED Located at : · New Delhi |
DIRECTORS
As on 31.03.2011
|
Name : |
Takashi Mikami |
|
Designation : |
Managing Director |
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Name : |
Mr. T Sakamoto |
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Designation : |
Executive Director |
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Name : |
Mr. S S Vaidya |
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Designation : |
Director |
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Name : |
Mr. Sanjay Asher |
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Designation : |
Director |
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Name : |
Mr. Tomio Isogai |
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Designation : |
Director |
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Name : |
Mr. H. Takayama |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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20755200 |
80.00 |
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20755200 |
80.00 |
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Total shareholding of Promoter and Promoter Group (A) |
20755200 |
80.00 |
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(B) Public Shareholding |
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|
1700 |
0.01 |
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|
1200 |
0.00 |
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|
2900 |
0.01 |
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|
463080 |
1.78 |
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Individual shareholders holding nominal share capital up to Rs.0.100
Million |
3468216 |
13.37 |
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Individual shareholders holding nominal share capital in excess of
Rs.0.100 Million |
1087912 |
4.19 |
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|
166692 |
0.64 |
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|
31431 |
0.12 |
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|
134261 |
0.52 |
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|
1000 |
-- |
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|
5185900 |
19.99 |
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Total Public shareholding (B) |
5188800 |
20.00 |
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Total (A)+(B) |
25944000 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
25944000 |
100.00 |
(1) Indian
Bodies Corporate
Clearing MembersBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Consumer Durable Electronics. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2011
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Colour TV receivers, LCD and sub-assemblies thereof |
|
300000 |
200000 |
140474 |
|
Video cassette recorders/video cassette players/ video tape deck
mechanisms |
|
500000 |
335000 |
Nil |
|
Two-in-one radio-cum-cassette
recorders (audio products) |
|
** |
90000 |
Nil |
|
Radio receivers
combined with sound recorders reproducing apparatus |
|
** |
24000 |
Nil |
|
Video Compact Disk Player |
|
** |
10000 |
Nil |
* On single shift basis, some of the capacities are inter-changeable
with other products depending on the need
** Registered with Ministry of Industry, Government of India
Installed capacity has been certified by the management, this being a
technical matter
GENERAL INFORMATION
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No. of Employees : |
300 (Approximately) |
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Bankers : |
·
Citi
Bank N. A. ·
State Bank of ·
Bank of ·
The Bank of
Tokyo-Mitsubishi Ufj Limited ·
The Mizuho Corporate Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S R batliboi and Company Chartered Accountants |
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Holding Company
: |
Sharp Corporation - Japan |
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Fellow
Subsidiary : |
· Sharp Electronics (Malaysia) SDN. BHD., Malaysia · Sharp Manufacturing Company (M) SDN BHD., Malaysia · Sharp Business Systems (India) Limited · Sharp Manufacturing Thailand Company Limited, Thailand · Sharp Appliances (Thailand) Limited, Thailand · P.T. Sharp Electronics Indonesia. · Sharp Roxy Sales (Singapore) Pte. Limited, Singapore · Sharp Electronics (Singapore) Pte. Limited, Singapore |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25944000 |
Equity Shares |
Rs.10/- each |
Rs.259.440
Millions |
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|
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Note:
Of the above,
20755200 equity shares of Rs.10/- each are held by Sharp Corporation, Japan,
the Holding Company.
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 |
259.440 |
259.440 |
259.440 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
180.600 |
180.600 |
180.600 |
|
|
4] (Accumulated Losses) |
(194.457) |
(202.626) |
(218.707) |
|
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NETWORTH |
245.583 |
237.414 |
221.333 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
40.036 |
0.000 |
8.838 |
|
|
2] Unsecured Loans |
50.000 |
0.000 |
10.000 |
|
|
TOTAL BORROWING |
90.036 |
0.000 |
18.838 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
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TOTAL |
335.619 |
237.414 |
240.171 |
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|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
141.786 |
125.793 |
123.435 |
|
|
Capital work-in-progress |
0.546 |
0.000 |
0.000 |
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|
|
|
|
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|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
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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 |
|
|
|
|
|
|
Inventories |
229.254
|
145.190
|
115.360
|
|
|
Sundry Debtors |
129.074
|
90.651
|
73.282
|
|
|
Cash & Bank Balances |
54.176
|
59.042
|
34.363
|
|
|
Other Current Assets |
0.244
|
0.202
|
0.440
|
|
|
Loans & Advances |
56.063
|
44.714
|
92.673
|
|
Total
Current Assets |
468.811
|
339.799
|
316.118
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
155.850
|
134.676
|
99.597
|
|
|
Current Liabilities |
96.359
|
70.852
|
75.393
|
|
|
Provisions |
23.315
|
22.650
|
24.392
|
|
Total
Current Liabilities |
275.524
|
228.178
|
199.382
|
|
|
Net Current Assets |
193.287
|
111.621
|
116.736
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
335.619 |
237.414 |
240.171 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales and Service Income |
1116.165 |
1069.631 |
915.114 |
|
|
|
Other Income |
6.859 |
10.630 |
4.190 |
|
|
|
TOTAL (A) |
1123.024 |
1080.261 |
919.304 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
192.061 |
194.158 |
155.424 |
|
|
|
Raw Material Consumed |
551.451 |
546.949 |
454.413 |
|
|
|
Purchases of Traded Goods |
284.901 |
174.679 |
136.215 |
|
|
|
Personnel Expenses |
111.921 |
108.396 |
102.478 |
|
|
|
Increase/(Decrease) in Finished Goods |
(47.699) |
11.042 |
38.905 |
|
|
|
TOTAL (B) |
1092.635 |
1035.224 |
887.435 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
30.389 |
45.037 |
31.869 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5.756 |
5.154 |
10.953 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
24.633 |
39.883 |
20.916 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16.451 |
23.785 |
18.660 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8.182 |
16.098 |
2.256 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.013 |
0.017 |
1.456 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H)
(I) |
8.169 |
16.081 |
0.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(202.626) |
(218.707) |
(219.507) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(194.547) |
(202.626) |
(218.707) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export at FOB value |
0.157 |
0.704 |
1.652 |
|
|
TOTAL EARNINGS |
0.157 |
0.704 |
2.356 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
497.945 |
466.858 |
334.806 |
|
|
|
Stores & Spares |
3.344 |
1.997 |
2.674 |
|
|
|
Capital Goods |
38.227 |
19.271 |
1.084 |
|
|
|
Others |
210.847 |
122.461 |
142.730 |
|
|
TOTAL IMPORTS |
750.363 |
610.587 |
481.294 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
0.31 |
0.62 |
0.03 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2011 |
|
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
|
244.960 |
193.660 |
|
Total Expenditure |
|
|
275.700 |
146.100 |
|
PBIDT (Excl OI) |
|
|
(30.740) |
47.560 |
|
Other Income |
|
|
0.480 |
0.940 |
|
Operating Profit |
|
|
(30.260) |
48.500 |
|
Interest |
|
|
2.390 |
2.420 |
|
Exceptional Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
(32.650) |
46.070 |
|
Depreciation |
|
|
5.180 |
5.720 |
|
Profit Before Tax |
|
|
(37.830) |
40.350 |
|
Tax |
|
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
(37.830) |
40.350 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
0.73
|
1.48
|
0.08 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.73
|
1.50
|
0.24 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.34
|
3.45
|
0.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03
|
0.06
|
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.49
|
0.96
|
0.98 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.48
|
1.58 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
Gross sales and service income during the year has marginally increased by
5.48%, over the previous year. This was mainly due to increase in sales of LCD
Televisions, Refrigerators and Microwave Ovens.
During the current year, the company has made a profit of Rs.8.169
Millions after tax. The company passed a special resolution on 22nd March 2011
through postal ballot for "Redefining the Role of Sharp India Limited:
Focus on Manufacturing". Now as per the aforesaid resolution the company
will focus on manufacturing of CTV and LCD and any other products which may be added
in the future. Sharp Business Systems (India) Limited is entrusted with the
sales, service and distribution of products manufactured by the company with
effect from 1st April 2011.
MANAGEMENT
DISCUSSION AND ANALYSIS
In the mixed picture presented on global scenario Indian Economy has
emerged with remarkable rapidity from the slowdown caused by global financial
crises from 2007- 2009. However continued high inflation, sharp increase in oil
prices as a result of the turmoil in the Middle East and North Africa and
temporary slowdown in the industrial growth is adding uncertainty to the pace
of global recovery.
Indian Economy recorded a growth of around 8.6 % during the year, as
compared to 7.2% in the earlier year. Further it is expected that the growth
for 2011-2012 to be in the range of 8.75% to 9.25 %.
INDUSTRY STRUCTURE
AND DEVELOPMENT
The consumer electronics and home appliance industry market in India is
growing at moderate speed. The boom in real estate/ housing industry, higher
disposable income and availability of variety of products as per consumer
choice are responsible for growth in the consumer durable sector.
Colour Television continues to be the main product of the Consumer
Electronics Industry in India, Though CRT segment dominated the Indian television
market; there is a rapid growth in demand for LCD TVs. Consumer preference is
increasing for high definition TV with better image quality, high and clear
audio output and better colour resolution.
LCD TVs are replacing older CRT TVs for a number of reasons. LCDs take
up less space than bulky CRT TVs, consume less energy and are free from the
radiation that is emitted from cathode rays in the CRT TVs. As a result, the
sleek, energy efficient LCD TVs have been at the top of the wish list for many
consumers around the world.
LCD TV sales in India are gaining momentum in 2011. India represents one
of the last strong holds for CRT TV, with consumers in other economy have
transitioned the majority or nearly all their television purchasing to LCD
display technology in recent years. However the allure and declining prices of
LCD TV along with increased consumer awareness have spurred the sales of the
LCD TVs and eroded the dominance of CRT TVs.
A sharp growth is expected in the LED TV market in the forthcoming
years. Considering the availability in all sizes and the reduction in prices,
the LED TV is poised to transform the existing premium category to a
generalized category. Eco- friendliness, saving on power consumption and ultra
slim features will accelerate the transformation of LED televisions while
growth is expected to continue. This is in line with the global trend.
OUTLOOK
The Company will focus on manufacturing of various models of LCD TVs in
addition to the current range of CRT TV in the forthcoming year, which will
make their product offering more competitive and with indigenous features. They
are planning to explore OEM opportunities within and outside India to leverage
their production capacity. All these will definitely help them to put their
foot forward with respect to competition.
FINANCIAL AND
OPERATIONAL PERFORMANCE
The financial highlights for the fiscal 2010-2011 are dealt with in the
Directors' Report. Gross sales and service income during the year has increased
by 5.48%, over the previous year. This was mainly due to increase in sales of
LCD Televisions, Refrigerators and Microwave Ovens. In terms of volume turnover
of LCD TV increased by 47%. Refrigerators by 29% and Microwave ovens by 106%.
The company will focus on manufacture of CTV and LCD televisions in the current
fiscal 2011- 2012.
During the current year, the company has made a profit of Rs.8.169
Millions after tax.
BACKGROUND
Subject ('the Company') was incorporated on July 5, 1985. The Company is
principally engaged in the manufacture and sale of colour televisions and LCD
TV's. Further, the Company is also engaged in trading microwave ovens,
refrigerators, colour televisions, LCD TV's, air conditioners and audio
systems.
Sharp Corporation ('Sharp'), a company incorporated in Japan, holds 80
per cent of the issued share capital of the Company. The Company has a
technical collaboration with Sharp for the manufacture of colour televisions
('CTVs').
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30, 2011
(Rs.
In Millions)
|
Particulars |
Quarter ended 30.09.2011 (Unaudited) |
Six Month ended 30.09.2011 (Unaudited) |
|
|
|
|
|
Income from Operations |
|
|
|
Gross Sales including service income |
224.551 |
502.044 |
|
Less: Excise
duty on sales |
30.891 |
63.421 |
|
Net Sales |
193.660 |
438.623 |
|
|
|
|
|
Total Expenditure |
|
|
|
(Increase)/Decrease
in stock in trade |
61.780 |
84.025 |
|
Consumption of raw
materials |
53.499 |
238.094 |
|
Purchase of traded goods |
0.000 |
0.000 |
|
Staff Costs |
15.107 |
32.052 |
|
Depreciation |
5.722 |
10.904 |
|
Provision for
Doubtful Debts |
(26.209) |
8.549 |
|
Other
expenditure |
41.924 |
59.081 |
|
Total Expenditure |
151.823 |
432.705 |
|
|
|
|
|
Profit/(Loss) from Operations before Other
Income, Interest |
41.837 |
5.918 |
|
|
|
|
|
Other Income |
0.938 |
1.416 |
|
|
|
|
|
Profit before Interest |
42.775 |
7.334 |
|
|
|
|
|
Interest |
2.424 |
4.817 |
|
|
|
|
|
Profit/ (Loss) after interest and before tax |
40.351 |
2.517 |
|
|
|
|
|
Tax Expense |
0.000 |
0.000 |
|
|
|
|
|
Net Profit After Tax |
40.351 |
2.517 |
|
|
|
|
|
Paid-up equity
share capital (Face Value of Rs.10/- each ) |
259.440 |
259.440 |
|
|
|
|
|
Reserves
(excluding Revaluation Reserves and debit balance in the profit and loss
account) |
0.000 |
0.000 |
|
|
|
|
|
Earnings Per
Share (EPS) |
|
|
|
-Basic (Rs.) |
1.56 |
0.10 |
|
-Diluted (Rs.) |
1.56 |
0.10 |
|
|
|
|
|
Public
Shareholding |
|
|
|
-Number of
shares |
5188800 |
5188800 |
|
-Percentage of
shareholding |
20.00 |
20.00 |
|
|
|
|
|
Promoters and promoter group shareholding |
|
|
|
a.
Pledged/Encumbered |
|
|
|
Number of shares |
0.00 |
0.00 |
|
Percentage of Shares
(as a %of the total shareholding of promoter and promoter group) |
0.00 |
0.00 |
|
Percentage of
Shares (as a % of the total share capital of the company) |
0.00 |
0.00 |
|
|
|
|
|
b.
Non-encumbered |
|
|
|
Number of shares |
20755200 |
20755200 |
|
Percentage Of
Shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
|
Percentage of
Shares (as a % of the total share capital of the company) |
80.00 |
80.00 |
STATEMENT OF
ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
As on 30.09.2011 |
|
Shareholders funds |
|
|
- Share Capital |
259.440 |
|
-
Reserves and Surplus |
180.600 |
|
Loan Funds |
151.855 |
|
Total |
591.895 |
|
|
|
|
Fixed Assets (net including Capital work in progress) |
166.860 |
|
Investments |
0.000 |
|
|
|
|
Current Assets, Loans and Advances |
|
|
- Inventories |
161.344 |
|
- Sundry Debtors |
159.818 |
|
-
Cash and Bank Balances |
1.552 |
|
- Loans and Advances |
132.158 |
|
Total |
454.872 |
|
|
|
|
Less : Current Liabilities and Provisions |
|
|
- Liabilities |
205.858 |
|
- Provisions |
15.920 |
|
Total |
221.778 |
|
|
|
|
Miscellaneous Expenditure (Not Written off or Adjusted) |
|
|
Profit and Loss Account |
191.941 |
|
Total |
591.895 |
Notes :
1) The above results have been reviewed by the
Audit Committee of the Board and have been approved by the Board of directors
at its meeting held on 5th November 2011.
2) Consumption of raw materials for the
quarter and six months ended September 30, 2011 is net of credit of Rs.61.848
Millions (quarter ended September 30,2010 Rs.8.342 Millions) and Rs.91.534
Millions (six months ended September 30, 2010 Rs.12.347 Millions), respectively
towards price adjustments / discounts
3) In consideration of prudence as set out in
paragraphs 15 to 18 of Accounting Standard 22 (AS-22), Deferred tax asset is
not recognised, for the quarter ended September 30, 2011.
4) The company operates in only one segment
i.e. 'consumer electronics'.
5) Previous period/year figures have been
regrouped, wherever necessary, to conform to current period's presentation.
6) Effective April 01, 2011, the Company has shifted
to a new business model wherein it has focused on its core strength of
manufacturing. The products manufactured by the Company have been sold to Sharp
Business Systems (India) Limited (SBSIL) a 100% subsidiary company of Sharp
Corporation, Japan during the current quarter. SBSIL will handle the after
sales service activity for all products manufactured by the Company. Due to the
change in business model, the results of the current quarter are not comparable
with the results of the previous corresponding quarter.
7) The Company did not have any investor
complaints pending at the beginning of the quarter. During the quarter ended
September 30, 2011, the Company received no complaint and hence there are no
complents lying unresolved at the quarter ended September 30, 2011.
CONTINGENT LIABILITIES (AS ON 31.03.2011)
Claims against the Company not acknowledged as
debts
- Central Excise authorities – Rs.20.188
Millions
FIXED ASSETS
· Land – Freehold
· Factory Building
· Plant and Machinery
· Moulds, Jigs and Fixtures
· Furniture Fittings and Equipment
· Computers
· Vehicles
· SAP Software
· Technical know how
BUSINESS DESCRIPTION
Subject is an India-based company. The Company is principally engaged in the manufacture and sale of color televisions and liquid crystal display (LCD) televisions. The Company is also engaged in trading microwave ovens, refrigerators, color televisions, LCD televisions, air conditioners and audio systems. The Company operates in one business segment of consumer electronics. The Company’s products in consumer durable industry include color televisions, LCD, refrigerators, washing machines, air conditioners and micro wave ovens. The Company’s subsidiary is Sharp Corporation (Sharp). During the fiscal year ended March 31, 2010 (fiscal 2010), the Company had a production of 136,066 color televisions receivers and LCD. For the Fiscal year ended 31 March 2010, subject revenues increased 18% to RS1.08B. Net income totaled Rs.16.1 M, up from Rs.800K. Revenues reflect an increase in income from operations and higher other income. Net income reflects a decrease in interest charges and higher operating profit margins. The company is engaged in the manufacture and sale of color televisions and liquid crystal display (LCD) televisions.
BOARD OF DIRECTORS
Mr. Sanjay K. Asher
(Non-Executive Independent Director)
Mr. Sanjay K. Asher is Non-Executive Independent Director of
subject. He is a Chartered Accountant and Solicitor and partner of M/s.
Crawfordbayley and Company, Solicitors, Advocates and Notaries, Mumbai. Mr.
Sanjay Asher has been practising for a number of years on various matters
including corporate laws. He also serves on the Board of following public
limited companies: Ashok Leyland Limited, Bajaj Allianz General Insurance
Company Limited, Bajaj Allianz Life Insurance Company Limited, Balkrishna
Industries Limited, Dewas Soya Limited, Finolex Cables Limited, Finolex Plasson
Industries Limited, Kryfs Power Components Limited, Mandhana Industries
Limited, Repro India Limited, Sparsh BPO Services Limited, Shree Renuka Sugars
Limited, Sudarshan Chemicals Industries Limited, Tribhovandas Bhimji Zaveri
Limited. He is also member of audit committee and remuneration committee and
chairman of investor grievance and transfer committee of the company.
Mr. Tomio Isogai
(Non-Executive Director)
Mr. Tomio Isogai is a Non-Executive Director of subject. He graduated in English from Kyoto University of Foreign Studies in the year 1979. He has an experience of about 30 years and has held various positions in Sharp Group of Companies in various fields which include Managing Director of some regional sales subsidiaries before joining Sharp India Limited. He does not hold any shares in the Company. He is also a director in Sharp Business Systems (India) Limited.
Mr. Takashi Mikami
(Managing Director, Director)
Mr. Takashi Mikami is Managing Director, Director of subject. He is a Bachelor of Electronics from Musashi Institute of Technology from Japan in the year 1978. He has a total experience of about 33 years and he has an experience in the field of "Electrical Design". He worked with Japan Air Self Defense Force during the period 1978 to 1981, and joined Sharp Corporation, Japan in the year 1981. He has held various positions in Sharp Group of Companies before joining Sharp India Limited.
Mr. Tadasu Sakamoto
(Executive Director)
Mr. Tadasu Sakamoto is an Executive Director of subject. He Graduated in Economics from Wakayama University, Japan. He has a wide experience in the field of Economics and Finance and has held various positions in Sharp Group of Companies before joining Sharp India Limited.
Mr. S. S. Vaidya
(Non-Executive Independent Director)
Mr. S. S. Vaidya is Non-Executive Independent Director of subject. He is a Chartered Accountant and a partner of M/s. Kunte and Vaidya - Chartered Accountants, Pune. He has got a wide experience in the field of finance and taxation. He also serves on the Board of following public limited companies: BF Utilities Limited, Bosch Chassis Systems India Limited, Kalyani Steels Limited, Nandi Economic Corridor Enterprises Limited, Nandi Infrastructure Corridor Enterprises Limited, Nandi Highway Developers Limited. BF Systems Limited, Sahyadri Hospitals Limited, MRF Limited and Kalyani Investments Company Limited. He is also Chairman of audit committee and member of remuneration committee and investor grievance and transfer committee of the company.
Mr. Takashi Mikami
(Managing Director, Director)
Mr. Takashi Mikami is Managing Director, Director of subject. He is a Bachelor of Electronics from Musashi Institute of Technology from Japan in the year 1978. He has a total experience of about 33 years and he has an experience in the field of "Electrical Design". He worked with Japan Air Self Defense Force during the period 1978 to 1981, and joined Sharp Corporation, Japan in the year 1981. He has held various positions in Sharp Group of Companies before joining Sharp India Limited.
PRESS RELEASES
SHARP
INDIA LIMITED ANNOUNCES BUSINESS MODEL CHANGES
Sharp India Limited announced that the Board of Directors of
the Company at its meeting held on December 27, 2010 have given its consent to
the following business model changes. Sharp India Limited, (SIL) a subsidiary
Company of Sharp Corporation, Japan, is principally engaged in the
manufacturing and sale of Colour Televisions and LCD TVs. Further the Company
is also engaged in trading of Microwave Ovens Refrigerators, Colour
televisions, LCD TVs, and Air Purifiers etc. All the traded products are manufactured
by Sharp Corporation, Japan and its associate Companies. Sharp Corporation,
Japan has decided to implement new business model in India to expand overall
Indian business and accordingly effective from April 01, 2011, role of SIL will
focus on it's core strength of manufacturing. Sale of products manufactured by
SIL will be made to Sharp Business systems (India) Limited (SBSIL) a 100 %
subsidiary Company of Sharp Corporation, Japan operating In India; other
overseas subsidiaries of Sharp Corporation Japan as and when the opportunity
arises; and companies desirous of making OEM/ODM purchases. SBSIL will handle
after sales service activity for all products including consumer electronics
products manufactured by SIL.
CHANGE
IN AGM DATE AND BOOK CLOSURE DATES
India, August 04 -- With reference to earlier announcement regarding Book Closure informing that the Register of Members and Share Transfer Books of the Company will remain closed from August 30, 2011 to September 10, 2011 (both days inclusive) for the purpose of 26th Annual General Meeting (AGM) of the Company to be held on September 10, 2011, Sharp India Limited , has informed BSE that the Company have decided to postpone the date of AGM. Hence the new date of AGM and BOOK CLOSURE DATES will be informed to the Exchange in due course.
DISCLOSURES
UNDER REG. 8A OF SEBI (SAST) REGULATIONS, 1997
India, July 01 -- Sharp India Limited has submitted the disclosure under Regulation 8A of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 to BSEThe Company has received disclosures from its Promoters stating that none of their shareholding in the Company has been pledged by them during the last quarter ended June 30, 2011.
SHARP
INDIA MD K AJIKAWA RESIGNS; TAKASHI MIKAMI TAKES OVER
NEW
DELHI, June 1 Asia Pulse - Consumer electronics and IT products maker Sharp
India (BSE:523449) on Monday announced a top level management change with its
managing director K Ajikawa stepping down.
In
a filing to the Bombay Stock Exchange (BSE) the company said Ajikawa, who was
serving as managing director and director of the company, has resigned from the
post.
Takashi
Mikami has been appointed as additional director and Managing Director with
effect from on Monday, it added.
The
company also said its board of directors have decided to delist the company
from the Pune Stock Exchange.
"The
board of directors has resolved for voluntarily delisting the company's equity
shares from 'The Pune Stock Exchange' with out giving any exit opportunity to
its existing shareholders," Sharp India said.
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] 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.52.23 |
|
|
1 |
Rs.81.55 |
|
Euro |
1 |
Rs.69.60 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
no |
|
--AFFILIATION |
YES/NO |
yes |
|
--LISTED |
YES/NO |
yes |
|
--OTHER MERIT FACTORS |
YES/NO |
yes |
|
TOTAL |
|
32 |
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.