MIRA
INFORM REPORT
|
Report Date : |
16.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
VOLTAS LIMITED |
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Registered
Office : |
Voltas House,
"A", |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
06.09.1954 |
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Com. Reg. No.: |
11-009371 |
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Capital
Investment / Paid-up Capital : |
Rs.330.737
Millions |
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|
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CIN No.: [Company Identification
No.] |
L29308MH1954PLC009371 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMV07842C/
MUMV07713G/ NGPV00559G/ MUMV04539D |
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PAN No.: [Permanent Account No.] |
AAACV2809D |
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Legal Form : |
It is a public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturing of
Air Conditioners, Refrigeration Equipments, Engineering, Electrical and Agricultural
Equipments. |
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No. of Employees
: |
Not Available |
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 39809000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is 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 – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DENIED BY
|
Name : |
Mr. Ustav Shah |
|
Designation : |
Chief Financial Officer |
|
Contact No.: |
91-22-66656290 |
LOCATIONS
|
Registered
Office : |
Voltas House
"A", |
|
Tel. No.: |
91-22-56656666/
46102000/ 22618131 |
|
Fax No.: |
91-22-56656311/
22/ 46102331/ 22618504 |
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E-Mail : |
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|
Website : |
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Factory 1 : |
Thane Plant: 2nd |
|
Tel. No.: |
91-22-67920111 |
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Fax No.: |
91-22-25343258 |
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|
|
|
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 |
|
|
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|
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 |
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Fax No.: |
91-260-2669647 |
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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 |
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Overseas
Office 1 : |
Tata Limited ( 18, |
|
Tel. No.: |
44-207-2358281 / 8 (Board Line) |
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Fax No.: |
44-207-2358727 |
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E-Mail : |
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Overseas
Office 2 : |
Voltas Limited ( |
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Tel. No.: |
00971 (0) 2
6504511 (Board Line) |
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Fax No.: |
00971 (0) 2
6504341 00971 (0) 2
6504361 |
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E-Mail : |
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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) |
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Fax No.: |
9662 69115400 |
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E-Mail : |
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Overseas
Office 4 : |
Voltas Limited ( 4th Floor, Zayani
House 419, Road 1705, Diplomatic Area, |
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Tel. No.: |
9731-7581979 |
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Fax No.: |
9731-7581320 |
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E-Mail : |
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Overseas
Office 5 : |
Voltas Limited ( Al |
|
Tel. No.: |
974 44569941 / 6 /
7 (Board Line) |
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Fax No.: |
974 44551268 |
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E-Mail : |
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Overseas
Office 6 : |
Voltas Limited ( |
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Tel. No.: |
+ 966 2 6831466 |
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Overseas
Office 7 : |
Voltas Limited ( |
|
Tel. No.: |
65
- 63366778 (Board Line) |
|
Fax No.: |
65
- 63366766 |
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E-Mail : |
DIRECTORS
As on 16.08.2010
|
Name : |
Mr. A. Soni |
|
Designation : |
Managing Director |
|
|
|
|
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. N. D. Khurody |
|
Designation |
Director |
|
Date of Birth |
26.10.1936 |
|
Qualification |
M.A (Economics) |
|
Experience |
43 years |
|
Date of
Joining |
26.12.1995 |
|
Other
Directorship |
|
|
Chairman/Member
of other company |
Audit Committee –
Member |
|
|
|
|
Name |
Mr. Bir D. Singh |
|
Designation |
Director |
|
Date of Birth |
03.07.1939 |
|
Qualification |
B. Tech, (Hons.) IIT,
Kharagpur |
|
Date of
Joining |
26.12.1995 |
|
Other
Directorship |
|
|
Chairman/Member
of other company |
|
|
|
|
|
Name : |
Mr. N. M. Munjee |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. N. J. Jhaveri |
|
Designation : |
Director |
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|
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|
Name : |
Mr. S. D.
Kulkarni |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Yash Paul |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. N.
Tripathi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. N. Tata |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. N. Tripathi |
|
Designation : |
Executive
Director |
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AUDIT
COMMITTEE : |
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REMUNERATION
COMMITTEE : |
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SHAREHOLDERS/
INVESTORS GRIEVANCE
COMMITTEE : |
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CORPORATE
MANAGEMENT : |
|
KEY EXECUTIVES
|
Name : |
Mr. V. P.
Malhotra |
|
Designation : |
General Manager –
Taxation and Company Secretary |
|
|
|
|
Name : |
Mr. S. R.
Srinivasan |
|
Designation : |
Executive Vice
President |
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|
Name : |
Mr. P. N. Dhume |
|
Designation : |
Executive Vice
President |
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|
Name : |
Mr. M. M.
Miyajiwala |
|
Designation : |
Executive Vice
President |
|
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|
|
Name : |
Mr. A. J. Gole |
|
Designation : |
Vice President |
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|
Name : |
Mr. S. Bilgi |
|
Designation : |
Vice President |
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|
Name : |
Mr. Sanjay Johri |
|
Designation : |
Executive Vice President
|
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|
Name : |
Mr. S.
Venkatraman |
|
Designation : |
Executive Vice
President |
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|
Name : |
Mr. A. K. Joshi |
|
Designation : |
Vice President |
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|
|
Name : |
Mr. Ustav Shah |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
101,089,139 |
30.55 |
|
|
101,089,139 |
30.55 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
101,089,139 |
30.55 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
31,010,642 |
9.37 |
|
|
861,891 |
0.26 |
|
|
7,940 |
- |
|
|
66,730,363 |
20.17 |
|
|
60,946,821 |
18.42 |
|
|
159,557,657 |
48.22 |
|
|
|
|
|
|
6,983,346 |
2.11 |
|
|
|
|
|
|
55,742,929 |
16.85 |
|
|
2,938,475 |
0.89 |
|
|
4,573,194 |
1.38 |
|
|
89,850 |
0.03 |
|
|
2,397,563 |
0.72 |
|
|
2,085,781 |
0.63 |
|
|
70,237,944 |
21.23 |
|
Total Public shareholding (B) |
229,795,601 |
69.45 |
|
Total (A)+(B) |
330,884,740 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
330,884,740 |
- |
(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. |
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Products : |
·
Refrigerators
Household Compression Type ·
Air Conditioning
Machines Window or Wall Types Self Contained ·
Refrigerating Equipment Absorption Heat Pumps
and Centrifugal Chillers |
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Exports : |
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Countries : |
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Imports from : |
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Countries : |
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PRODUCTION STATUS (AS ON 31.03.2010)
QUANTITATIVE INFORMATION IN REGARD TO LICENSED
CAPACITY, INSTALLED CAPACITY AND ACTUAL PRODUCTION OF THE GOODS MANUFACTURED BY
THE COMPANY:
|
|
|
Installed Capacity |
Installed Capacity 2008-09 |
Actual Production |
Actual Production 2008-09 |
|
Air
conditioner and Water Coolers: |
|
|
|
|
|
|
Air conditioners for Specialised
Applications |
(Numbers) |
2000 |
2000 |
1107 |
1622 |
|
Water Coolers |
(Numbers) |
45000 |
45000 |
27686 |
19238 |
|
Freezers and Bottle Coolers |
(Numbers) |
75000 |
75000 |
75840 |
44628 |
|
Open Type Compressors with Accessories |
(Numbers) |
1000 |
1000 |
355 |
410 |
|
Packaged Air-conditioners |
(Numbers) |
18000 |
18000 |
7710 |
10193 |
|
Package Chillers |
(Numbers) |
980 |
980 |
590 |
694 |
|
Semi Hermetic Compressors |
(Numbers) |
3600 |
3600 |
694 |
1003 |
|
Vapour Absorption Machine |
(Numbers) |
75 |
135 |
46 |
36 |
|
Air Handling Unit |
(Numbers) |
2400 |
2400 |
1459 |
909 |
|
Materials
Handling Equipment: |
|
|
|
|
|
|
Forklift Trucks |
(Numbers) |
2000 |
2000 |
1160 |
1315 |
|
Hydraulic Truck Cranes |
(Numbers) |
50 |
50 |
6 |
20 |
|
Warehouse Equipment |
(Numbers) |
150 |
150 |
56 |
39 |
|
Construction and
Mining Equipment: |
|
|
|
|
|
|
Crushers |
(Numbers) |
10 |
10 |
15 |
16 |
Notes:
(i) As per the
Industrial Policy declared in July 1991 and as amended in April 1993, no
licenses are required for the products manufactured by the Company.
(ii) Installed
capacities are as certified by the Management and relied upon by the Auditors.
These are alternative and not cumulative and as such production is not strictly
comparable with the same.
(iii) Production
includes for captive consumption.
GENERAL INFORMATION
|
No. of
Employees : |
Not Available |
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|
Bankers : |
In v
State
Bank of v
Bank of
v
Punjab
National Bank v
Citibank
N. A. v
BNP
Paribas v
Export
- Import Bank of v
The
Royal Bank of Overseas v
Emirates
NBD Bank pjsc (UAE) v
Union
National Bank (UAE) v
Abu
Dhabi Commercial Bank (UAE) v
HSBC
Bank Middle East Limited (UAE, v
The
Commercial Bank of v
First
Gulf Bank (UAE) v
Doha
Bank ( v
The
Royal Bank of |
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Facilities : |
|
|
Banking Relations : |
-- |
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Auditors : |
|
|
Name : |
S. B. Billimoria
and Company Chartered
Accountants |
|
|
|
|
Name : |
Messrs Deloitte
Haskins and Sells Chartered
Accountants |
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|
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Solicitors : |
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|
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Membership : |
Confederation of
Indian Industry |
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Associates : |
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Subsidiaries : |
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Joint Venture : |
|
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|
|
|
Holding
Company : |
Tata Sons Limited
(Promoters holding together with its subsidiary is more than 20%) |
CAPITAL STRUCTURE
As on 31.03.2010
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.0.148 million |
|
|
Total |
|
Rs.330.737 Millions |
Equity Share Capital includes:
(a) 9,76,61,300 shares
of Re.1 each allotted as fully paid bonus shares by capitalising Rs.8.082
millions out of the Securities Premium Account, Rs.10.000 millions from Capital
Reserve and Rs.79.579 millions out of General Reserve.
(b) 1,77,29,040
shares of Re.1 each allotted to the erstwhile shareholders of Tata-Merlin and
Gerin Limited (TMG), The National Electrical Industries Limited (NEI), Volrho
Limited, Wandleside National Conductors Limited (WNC) and Hyderabad Allwyn
Limited (HAL) consequent upon the amalgamation of these companies with the
Company.
(c) 11,97,84,000
shares of Re.1 each allotted to the holders of Convertible Part `A’ of Rs.60 of
the 14% Secured Redeemable Partly Convertible Debentures 1992-99 on compulsory
conversion thereof into equity shares.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
330.737 |
330.734 |
330.695 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9621.515 |
6959.205 |
5052.507 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NET WORTH
|
9952.252 |
7289.939 |
5383.202 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
190.806 |
1284.426 |
476.660 |
|
|
2] Unsecured
Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
190.806 |
1284.426 |
476.660 |
|
|
DEFERRED TAX LIABILITIES |
0.839 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
10143.897 |
8574.365 |
5859.862 |
|
|
|
|
|
|
|
|
APPLICATION OF
FUNDS |
|
|
|
|
|
|
|
|
|
|
|
1670.714 |
1633.946 |
1407.465 |
||
|
Capital work-in-progress |
76.112 |
96.514 |
187.521 |
|
|
|
|
|
|
|
|
INVESTMENTS |
3399.666 |
2358.003 |
2679.263 |
|
|
DEFERREX TAX ASSETS |
191.186 |
215.858 |
204.312 |
|
|
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
10617.488 |
10514.305 |
6095.857 |
|
|
Sundry Debtors |
8472.800 |
8168.447 |
5316.916 |
|
|
Cash & Bank Balances |
4028.569 |
4002.444 |
2752.078 |
|
|
Other Current Assets |
0.000 |
0.000 |
0.000 |
|
|
Loans & Advances |
2384.948 |
2249.334 |
1432.369 |
|
Total Current Assets |
25503.805 |
24934.530 |
15597.220 |
|
|
|
|
|
|
|
Less:
CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
|
Sundry
Creditors & Other Current Liabilities
|
18240.982 |
18216.906 |
12173.931 |
|
|
Provisions
|
2456.604
|
2447.580
|
2041.988 |
|
Total Current Liabilities |
20697.586 |
20664.486 |
14215.919 |
|
Net Current Assets
|
4806.219 |
4270.044 |
1381.301 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
TOTAL
|
10143.897 |
8574.365 |
5859.862 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
45417.911 |
40332.869 |
30445.300 |
|
|
|
Other Income |
756.105 |
941.649 |
814.600 |
|
|
|
TOTAL (A) |
46174.016 |
41274.518 |
31259.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of sales, Services and Expenses |
41448.066 |
37689.170 |
27992.500 |
|
|
|
TOTAL (B) |
41448.066 |
37689.170 |
27992.500 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4725.950 |
3585.348 |
3267.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
69.569 |
66.153 |
59.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4656.381 |
3519.195 |
3207.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
163.925 |
165.948 |
135.600 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL
ITEMS |
363.939 |
320.044 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4856.395 |
3673.291 |
3072.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1050.261 |
1147.401 |
988.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3442.195 |
2525.890 |
2083.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
622.540 |
586.040 |
400.000 |
|
|
|
|
|
|
|
|
|
Add |
AMOUNT
TRANSFERRED FROM FOREIGN PROJECTS RESERVE |
27.500 |
30.000 |
0.040 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
2500.000 |
1900.000 |
1897.600 |
|
|
|
Proposed Dividend |
661.769 |
529.416 |
0.000 |
|
|
|
Tax on Dividend |
109.912 |
89.974 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
820.554 |
622.540 |
586.040 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
347.602 |
263.843 |
NA |
|
|
|
Commission Earnings |
176.926 |
325.245 |
NA |
|
|
|
Other Earnings |
62.202 |
73.583 |
NA |
|
|
TOTAL EARNINGS |
586.730 |
662.671 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
159.217 |
248.594 |
NA |
|
|
|
Finished Goods |
3890.721 |
4253.586 |
NA |
|
|
|
Stores & Spares |
1564.782 |
697.427 |
NA |
|
|
|
Capital Goods |
11.099 |
5.239 |
NA |
|
|
TOTAL IMPORTS |
5625.819 |
5204.846 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.40 |
7.63 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
13751.600 |
10707.800 |
9930.500 |
17094.000 |
|
Total Expenditure |
12616.300 |
9569.400 |
9197.400 |
15709.500 |
|
PBIDT (Excl OI) |
1135.300 |
1138.400 |
733.100 |
1384.500 |
|
Other Income |
208.600 |
193.900 |
138.300 |
141.800 |
|
Operating Profit |
1343.900 |
1332.300 |
871.400 |
1526.300 |
|
Interest |
47.500 |
32.700 |
26.200 |
24.400 |
|
Exceptional Items |
(7.400) |
182.300 |
154.500 |
118.600 |
|
PBDT |
1289.000 |
1481.900 |
999.700 |
1620.500 |
|
Depreciation |
39.700 |
40.100 |
42.500 |
42.200 |
|
Profit Before Tax |
1249.300 |
1441.800 |
957.200 |
1578.300 |
|
Tax |
403.300 |
462.700 |
287.100 |
538.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
846.000 |
979.100 |
670.100 |
1040.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
846.000 |
979.100 |
670.100 |
1040.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.45
|
6.12
|
6.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.69
|
9.11
|
10.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.87
|
13.83
|
18.09 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.48
|
0.50
|
0.57 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.09
|
3.01
|
2.73 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23
|
1.21
|
1.10 |
LOCAL AGENCY FURTHER INFORMATION
ADDITIONAL
INFORMATION:
INFORMATION IN
REGARD TO RAW MATERIALS AND COMPONENTS CONSUMED:
|
(a) Items |
Unit of Measurement |
Quantity |
2008-09 Quantity |
Value Rupees in Lakhs |
2008-09 Value Rupees in Lakhs |
|
Steel/Ferrous Metals |
M. Tonnes |
4525.91 |
6108 |
2577.36 |
3070.67 |
|
Non-Ferrous Metals |
M. Tonnes |
760 |
641 |
2388.64 |
2373.48 |
|
Compressors |
M. Tonnes |
139078 |
75362 |
5197.77 |
3789.87 |
|
Others (Items
individually not exceeding 10% of total) |
|
|
|
20695.00 |
21593.58 |
|
|
|
|
|
30858.77 |
30827.60 |
|
(b) |
% to total Consumption |
Value Rupees in Lakhs |
2008-09 % to total Consumption |
2008-09 Value Rupees in Lakhs |
|
Imported |
19.96 |
6158.09 |
19.58 |
6036.48 |
|
Indigenous |
80.04 |
24700.68 |
80.42 |
24791.12 |
|
|
100.00 |
30858.77 |
100.00 |
30827.60 |
INFORMATION IN
REGARD TO PURCHASES, SALES, OPENING STOCKS AND CLOSING STOCKS:
Purchases (Other
than Raw Materials and Components):
|
Class of Goods |
Purchases |
||||
|
Unit of
Measurement |
Quantity |
Quantity 2008-09 |
Rupees in Lakhs |
Rupees in Lakhs 2008-09 |
|
|
Air-conditioners and Water Coolers |
|
|
|
|
|
|
Room
Air-conditioners Numbers Including C.U.’s |
Numbers |
560205 |
340834 |
71003.14 |
49436.95 |
|
|
|
|
|
|
|
|
Air-conditioners
for Specialised Applications |
Numbers |
Nil |
Nil |
Nil |
Nil |
|
Water Coolers |
Numbers |
84347 |
48559 |
2835.61 |
1678.73 |
|
Refrigerators |
Numbers |
Nil |
Nil |
Nil |
Nil |
|
Freezers and
Bottle Coolers |
Numbers |
738 |
94 |
54.49 |
21.76 |
|
Compressors |
Numbers |
271672 |
14699 |
9645.27 |
182.45 |
|
Indoor Unit |
Numbers |
123919 |
Nil |
4703.82 |
Nil |
|
Air-conditioning
and Refrigeration |
|
|
|
|
|
|
Turnkey jobs |
Number of jobs |
|
|
|
|
|
Packaged
Air-conditioners |
Numbers |
|
|
|
|
|
Package Chillers
|
Numbers |
|
|
|
|
|
Vapour
Absorption Machines |
Numbers |
|
|
|
|
|
Air Handling
Units (A.H.U.) |
Numbers |
|
|
|
|
|
Sundry Equipment
for Air-conditioning and Refrigeration, Consumer Durables and Spare Parts (Refer Note
below) |
|
|
|
5822.77 |
3270.27 |
|
Materials
Handling Equipment and Spares |
|
|
|
|
|
|
Forklift Trucks |
Numbers |
3 |
25 |
20.84 |
292.76 |
|
Warehousing
Equipment |
Numbers |
Nil
|
Nil |
Nil
|
Nil |
|
Sundry Material Handling
Equipment, Spares for Forklift Trucks, etc. (Refer Note below) |
|
|
|
1087.66 |
1395.11 |
|
Hydraulic Truck
Cranes |
Numbers |
15 |
Nil |
143.72 |
Nil |
|
Machine Tools |
|
|
|
|
|
|
Machine Tools,
Accessories and Sundry Equipment |
|
|
|
2.36 |
8.02 |
|
Pollution
Control |
|
|
|
|
|
|
Equipment and
Systems |
|
|
|
|
|
|
Water Pollution
Control Equipment and Systems |
|
|
|
897.89 |
949.25 |
|
Construction and
Mining Equipment |
|
|
|
|
|
|
Excavators |
Numbers |
Nil
|
23 |
Nil
|
3157.22 |
|
Crushers |
Numbers |
8 |
61 |
1184.30 |
10956.44 |
|
Screening
Equipment |
Numbers |
8 |
72 |
591.45 |
7174.64 |
|
Dumper |
Numbers |
Nil
|
3 |
Nil
|
442.74 |
|
Accessories and
Spares for Drilling and Mining |
|
|
|
5647.82 |
6094.88 |
|
Textile
Machinery and Equipment (Refer Note below) |
|
|
|
2911.93 |
2633.54 |
|
Pesticides and
Chemicals |
|
|
|
|
|
|
Chemicals and
Minerals |
|
|
|
Nil
|
3321.48 |
|
Agro Industrial
Products |
|
|
|
|
|
|
Hydraulic Pumps,
Motors, and Other Agro Industrial Products |
|
|
|
53.29 |
79.86 |
|
Others |
|
|
|
|
|
|
Turnkey
Contracts |
|
|
|
|
|
|
Camera |
Numbers |
617 |
418 |
6.03 |
1.26 |
|
Room Heaters |
Numbers |
|
|
|
|
|
Services
Rendered |
|
|
|
|
|
|
|
|
|
|
106612.39 |
91097.36 |
Sales:
|
Class of Goods |
Sales |
||||
|
Unit of
Measurement |
Quantity |
Quantity 2008-09 |
Rupees in Lakhs |
Rupees in Lakhs 2008-09 |
|
|
Air-conditioners and Water Coolers |
|
|
|
|
|
|
Room
Air-conditioners Numbers Including C.U.’s |
Numbers |
485798 |
367644 |
89711.87 |
68247.56 |
|
|
|
|
|
|
|
|
Air-conditioners
for Specialised Applications |
Numbers |
1071 |
1657 |
1030.80 |
1265.48 |
|
Water Coolers |
Numbers |
81583 |
74076 |
8368.18 |
7391.07 |
|
Refrigerators |
Numbers |
3 |
20 |
0.07 |
0.45 |
|
Freezers and
Bottle Coolers |
Numbers |
73052 |
49976 |
11001.78 |
7402.83 |
|
Compressors |
Numbers |
254800 |
14699 |
9286.67 |
197.21 |
|
Indoor Unit |
Numbers |
105761 |
Nil |
4389.82 |
Nil |
|
Air-conditioning
and Refrigeration |
|
|
|
|
|
|
Turnkey jobs |
Number of jobs |
1015 |
1116 |
63049.23 |
75777.92 |
|
Packaged
Air-conditioners |
Numbers |
6204 |
6863 |
4251.43 |
5077.02 |
|
Package Chillers
|
Numbers |
445 |
523 |
4282.90 |
4951.41 |
|
Vapour
Absorption Machines |
Numbers |
37 |
32 |
1622.68 |
1635.78 |
|
Air Handling
Units (A.H.U.) |
Numbers |
235 |
243 |
548.42 |
352.79 |
|
Sundry Equipment
for Air-conditioning and Refrigeration, Consumer Durables and Spare Parts (Refer Note
below) |
|
|
|
8271.85 |
5239.83 |
|
Materials
Handling Equipment and Spares |
|
|
|
|
|
|
Forklift Trucks |
Numbers |
1175 |
1321 |
10106.79 |
12730.17 |
|
Warehousing
Equipment |
Numbers |
44 |
40 |
192.32 |
198.05 |
|
Sundry Material
Handling Equipment, Spares for Forklift Trucks, etc. (Refer Note below) |
|
|
|
2092.87 |
2216.70 |
|
Hydraulic Truck
Cranes |
Numbers |
20 |
20 |
502.36 |
2087.61 |
|
Machine Tools |
|
|
|
|
|
|
Machine Tools,
Accessories and Sundry Equipment |
|
|
|
2.18 |
17.62 |
|
Pollution
Control |
|
|
|
|
|
|
Equipment and
Systems |
|
|
|
|
|
|
Water Pollution
Control Equipment and Systems |
|
|
|
1435.93 |
1309.17 |
|
Construction and
Mining Equipment |
|
|
|
|
|
|
Excavators |
Numbers |
2 |
35 |
75.62 |
3807.81 |
|
Crushers |
Numbers |
50 |
55 |
7625.78 |
8227.98 |
|
Screening
Equipment |
Numbers |
36 |
47 |
3716.97 |
4726.66 |
|
Dumper |
Numbers |
Nil
|
3 |
Nil
|
444.00 |
|
Accessories and
Spares for Drilling and Mining |
|
|
|
12109.93 |
7357.53 |
|
Textile
Machinery and Equipment (Refer Note below) |
|
|
|
3707.92 |
3311.35 |
|
Pesticides and
Chemicals |
|
|
|
|
|
|
Chemicals and
Minerals |
|
|
|
Nil
|
3679.51 |
|
Agro Industrial
Products |
|
|
|
|
|
|
Hydraulic Pumps,
Motors, and Other Agro Industrial Products |
|
|
|
315.40 |
402.02 |
|
Others |
|
|
|
|
|
|
Turnkey
Contracts |
|
|
|
177988.89 |
153650.63 |
|
Camera |
Numbers |
6 |
146 |
1.54 |
1.33 |
|
Room Heaters |
Numbers |
Nil
|
2 |
Nil
|
0.01 |
|
Services
Rendered |
|
|
|
30817.33 |
25317.00 |
|
|
|
|
|
456507.53 |
407024.50 |
Note: Spare parts and
sundry equipment purchased are either used for internal service / warranty or
for sales. The purchases disclosed above are to the extent of sales made during
the year.
Opening Stocks:
|
Class of Goods |
Opening Stock |
||||
|
Unit of
Measurement |
Quantity |
Quantity 2008-09 |
Rupees in Lakhs |
Rupees in Lakhs 2008-09 |
|
|
Air-conditioners
and Water Coolers |
|
|
|
|
|
|
Room
Air-conditioners |
Numbers |
83505 |
110610 |
10692.75 |
13771.79 |
|
Water Coolers |
Numbers |
6396 |
12741 |
540.81 |
945.10 |
|
Air-conditioners
for Specialised Applications |
Numbers |
57 |
93 |
98.84 |
218.58 |
|
Refrigerators |
Numbers |
11 |
32 |
0.23 |
0.92 |
|
Freezers and
Bottle Coolers Numbers |
Numbers |
3799 |
9114 |
365.43 |
1061.34 |
|
Packaged Air-conditioners
|
Numbers |
588 |
632 |
289.07 |
332.38 |
|
Package Chillers
|
Numbers |
45 |
33 |
426.87 |
304.93 |
|
Vapour
Absorption Machines |
Numbers |
3 |
1 |
148.85 |
20.64 |
|
Air Handling
Units (A.H.U.) |
Numbers |
61 |
40 |
151.62 |
74.14 |
|
Sundry Equipment
for Air-conditioning and Refrigeration, Consumer Durables and Spare Parts |
|
|
|
2023.81 |
2327.61 |
|
Compressors |
Numbers |
|
|
|
|
|
Indoor Unit |
Numbers |
|
|
|
|
|
Materials
Handling Equipment and Spares |
|
|
|
|
|
|
Forklift Trucks |
Numbers |
26 |
7 |
217.15 |
69.19 |
|
Warehousing
Equipment |
Numbers |
1 |
2 |
3.18 |
6.69 |
|
Sundry Material
Handling Equipments, Spares for Forklift Trucks, etc. |
Numbers |
|
|
94.80 |
51.46 |
|
Hydraulic Truck
Cranes |
Numbers |
Nil |
Nil |
Nil |
Nil |
|
Machine Tools |
|
|
|
|
|
|
Machine Tools,
Accessories and Sundry Equipment |
|
|
|
1.95 |
0.45 |
|
Pollution
Control Equipment and Systems |
|
|
|
|
|
|
Electrostatic Precipitators,
Mechanical Dust Collectors, etc.- Components and Parts |
|
|
|
135.58 |
24.90 |
|
Construction and
Mining Equipment |
|
|
|
|
|
|
Excavators |
Numbers |
2 |
14 |
79.00 |
468.00 |
|
Crushers |
Numbers |
31 |
9 |
5558.00 |
692.68 |
|
Sundry Screening
Equipments |
Numbers |
37 |
12 |
3505.00 |
683.06 |
|
Sundry
Equipment, Accessories and Spares for Drilling and Mining |
|
|
|
4002.33 |
2578.27 |
|
Textile
Machinery and Equipment |
|
|
|
361.63 |
370.52 |
|
Chemicals |
|
|
|
|
|
|
Chemicals and
Minerals |
|
|
|
Nil |
274.51 |
|
Others |
|
|
|
|
|
|
Camera |
Numbers |
675 |
702 |
4.90 |
4.75 |
|
Room Heaters |
Numbers |
18 |
22 |
0.36 |
0.44 |
|
|
|
|
|
28702.16 |
24282.35 |
Closing Stocks:
|
Class of Goods |
Closing Stock |
||||
|
Unit of
Measurement |
Quantity |
Quantity 2008-09 |
Rupees in Lakhs |
Rupees in Lakhs 2008-09 |
|
|
Air-conditioners
and Water Coolers |
|
|
|
|
|
|
Room
Air-conditioners |
Numbers |
156550 |
83505 |
17308.75 |
10692.75 |
|
Water Coolers |
Numbers |
35646 |
6396 |
1705.47 |
540.81 |
|
Air-conditioners
for Specialised Applications |
Numbers |
93 |
57 |
115.15 |
98.84 |
|
Refrigerators |
Numbers |
8 |
11 |
0.17 |
0.23 |
|
Freezers and Bottle
Coolers Numbers |
Numbers |
6982 |
3799 |
912.23 |
365.43 |
|
Packaged
Air-conditioners |
Numbers |
665 |
588 |
420.65 |
289.07 |
|
Package Chillers
|
Numbers |
52 |
45 |
575.29 |
426.87 |
|
Vapour
Absorption Machines |
Numbers |
10 |
3 |
557.74 |
148.85 |
|
Air Handling
Units (A.H.U.) |
Numbers |
102 |
61 |
289.18 |
151.62 |
|
Sundry Equipment
for Air-conditioning and Refrigeration, Consumer Durables and Spare Parts |
|
|
|
3219.61 |
2023.81 |
|
Compressors |
Numbers |
16872 |
|
604.36 |
|
|
Indoor Unit |
Numbers |
18123 |
|
520.31 |
|
|
Materials
Handling Equipment and Spares |
|
|
|
|
|
|
Forklift Trucks |
Numbers |
12 |
26 |
139.05 |
217.15 |
|
Warehousing
Equipment |
Numbers |
12 |
1 |
47.88 |
3.18 |
|
Sundry Material Handling
Equipments, Spares for Forklift Trucks, etc. |
Numbers |
|
|
21.13 |
94.80 |
|
Hydraulic Truck
Cranes |
Numbers |
1 |
Nil |
9.55 |
Nil |
|
Machine Tools |
|
|
|
|
|
|
Machine Tools,
Accessories and Sundry Equipment |
|
|
|
Nil |
1.95 |
|
Pollution
Control Equipment and Systems |
|
|
|
|
|
|
Electrostatic
Precipitators, Mechanical Dust Collectors, etc.- Components and Parts |
|
|
|
161.80 |
135.58 |
|
Construction and
Mining Equipment |
|
|
|
|
|
|
Excavators |
Numbers |
Nil |
2 |
Nil
|
79.00 |
|
Crushers |
Numbers |
4 |
31 |
488.28 |
5558.00 |
|
Sundry Screening
Equipments |
Numbers |
9 |
37 |
545.44 |
3505.00 |
|
Sundry
Equipment, Accessories and Spares for Drilling and Mining |
|
|
|
5209.17 |
4002.33 |
|
Textile Machinery
and Equipment |
|
|
|
315.27 |
361.63 |
|
Chemicals |
|
|
|
|
|
|
Chemicals and
Minerals |
|
|
|
Nil |
Nil |
|
Others |
|
|
|
|
|
|
Camera |
Numbers |
1030 |
675 |
9.53 |
4.90 |
|
Room Heaters |
Numbers |
16 |
18 |
0.21 |
0.36 |
|
|
|
|
|
33176.22 |
28702.16 |
QUANTITIES OF FINISHED GOODS
CAPITALISED/(DECAPITALISED), SCRAPPED, ISSUED AGAINST SCHEMES AND / OR
TRANSFERRED TO JOBS DURING THE YEAR.
|
|
Unit of
Measurement |
Quantity |
Quantity 2008-09 |
|
|
|
|
|
|
Room
Air-conditioners |
Numbers |
1362 |
295 |
|
Water Coolers |
Numbers |
1200 |
66 |
|
Refrigerators |
Numbers |
Nil |
1 |
|
Air-conditioners
for Specialised Applications |
Numbers |
Nil |
1 |
|
Freezers and
Bottle Coolers |
Numbers |
343 |
61 |
|
Camera |
Numbers |
256 |
299 |
|
Room Heaters |
Numbers |
2 |
2 |
|
Packaged
Air-conditioners |
Numbers |
1429 |
3374 |
|
Package Chillers
|
Numbers |
138 |
159 |
|
Vapour
Absorption Machines |
Numbers |
2 |
2 |
|
Forklift Trucks |
Numbers |
2 |
Nil |
|
Warehouse
Equipment |
Numbers |
1 |
Nil |
|
Air Handling
Unit (A.H.U.) |
Numbers |
1183 |
645 |
|
Indoor Unit |
Numbers |
35 |
Nil |
INFORMATION ABOUT
CONSOLIDATED SEGMENTS:
|
|
Rupees in Lakhs |
2008-09 Rupees in Lakhs |
|
1. SEGMENT REVENUE |
|
|
|
(a) Segment - A (Electro - mechanical Projects and Services) |
311340.70 |
276678.85 |
|
(b) Segment - B (Engineering Products and Services) |
46802.90 |
54219.11 |
|
(c) Segment - C (Unitary Cooling Products for Comfort and Commercial
use) |
118709.02 |
92228.24 |
|
(d) Others |
3911.13 |
10390.58 |
|
Less: Inter segment revenue |
175.36 |
927.00 |
|
Net Sales / Income from Operations |
480588.39 |
432589.78 |
|
|
|
|
|
2. SEGMENT RESULTS |
|
|
|
(a) Segment - A (Electro - mechanical Projects and Services) |
30909.39 |
21341.55 |
|
(b) Segment - B (Engineering Products and Services) |
7684.76 |
6264.53 |
|
(c) Segment - C (Unitary Cooling Products for Comfort and Commercial
use) |
12029.26 |
5503.01 |
|
(d) Others |
717.64 |
901.91 |
|
|
51341.05 |
34011.00 |
|
|
|
|
|
Less: (i) Interest Paid |
984.40 |
1275.19 |
|
(ii) Interest Received |
(1090.15) |
(1343.28) |
|
(iii) Other unallocable expenditure net of unallocable income |
(1732.88) |
(3093.15) |
|
Profit from Ordinary Activities before Tax |
53179.68 |
37172.24 |
|
Particulars |
Segment Assets |
Segment
Liabilities |
||
|
|
Rupees in Lakhs |
As at 31-3-2009 Rupees in Lakhs |
Rupees in Lakhs |
As at 31-3-2009 Rupees in Lakhs |
|
(a) Segment - A
(Electro - mechanical Projects and Services) |
179345.51 |
178510.52 |
158490.51 |
164979.12 |
|
(b) Segment - B (Engineering Products and
Services) |
19468.58 |
25990.56 |
9872.00 |
13086.97 |
|
(c) Segment - C
(Unitary Cooling Products for Comfort and Commercial use) |
48777.49 |
38608.37 |
34633.18 |
22493.03 |
|
(d) Others |
2356.52 |
3449.39 |
1214.12 |
2142.47 |
|
Segment Total |
249948.10 |
246558.84 |
204209.81 |
202701.59 |
|
Unallocated |
88418.25 |
75746.60 |
25639.68 |
40628.89 |
|
|
338366.35 |
322305.44 |
229849.49 |
243330.48 |
|
Particulars |
Capital
Expenditure |
Depreciation |
Non-Cash Expenses other than
Depreciation |
|||
|
|
Rupees in Lakhs |
Rupees in Lakhs |
Rupees in Lakhs |
2008-09 Rupees in Lakhs |
Rupees in Lakhs |
2008-09 Rupees in Lakhs |
|
(a) Segment - A
(Electro – mechanical Projects and Services) |
1305.75 |
2381.90 |
890.30 |
787.59 |
1048.96 |
4023.19 |
|
(b) Segment - B
(Engineering Products and Services) |
216.51 |
510.88 |
135.10 |
122.00 |
275.56 |
88.23 |
|
(c) Segment - C
(Unitary Cooling Products for Comfort and Commercial use) |
159.72 |
175.10 |
406.63 |
505.46 |
1593.94 |
529.26 |
|
(d) Others |
33.46 |
83.92 |
71.43 |
78.35 |
73.55 |
119.10 |
|
Segment Total |
1715.44 |
3151.80 |
1503.46 |
1493.40 |
2992.01 |
4759.78 |
|
Unallocated |
843.85 |
1889.13 |
637.50 |
602.96 |
— |
— |
|
|
2559.29 |
5040.93 |
2140.96 |
2096.36 |
2992.01 |
4759.78 |
INFORMATION ABOUT
CONSOLIDATED SECONDARY BUSINESS SEGMENTS:
|
Particulars |
Rupees in Lakhs |
2008-09 Rupees in Lakhs |
|
Revenue by Geographical Market |
|
|
|
|
282424.48 |
261994.01 |
|
|
178309.11 |
153519.99 |
|
Others |
19854.80 |
17075.78 |
|
Total |
480588.39 |
432589.78 |
|
|
|
|
|
Capital Expenditure |
|
|
|
|
1066.18 |
1549.12 |
|
|
599.58 |
1517.17 |
|
Others |
49.68 |
85.51 |
|
Total |
1715.44 |
3151.80 |
|
|
|
|
|
Carrying Amount of Segment Assets |
|
|
|
|
147275.57 |
128071.23 |
|
|
98323.61 |
109788.21 |
|
Others |
4348.92 |
8699.40 |
|
Total |
249948.10 |
246558.84 |
HISTORY:
Subject a premier air-conditioning company has established a
strong leadership in
Subject was promoted by Tata Sons and Volkart Brothers, a Swiss firm in the
year 1954. Its products include Room Air conditioner, Refrigeration Equipment,
Water Coolers, Forklift Trucks, Cranes, Pumps and Modular Office Furniture
Systems. The Company's sourcing and marketing operations cover Textile
Machinery, Machine Tools, Mining and Construction Equipment, and Industrial
Chemicals.
The Indian subsidiaries of the company are Simto Investment Company Limited and
Auto Aircon (India) Limited, and the foreign subsidiaries are Metrovol FZE
(UAE), VIL Overseas Enterprises B.V. (The Netherlands), Voice Antilles N.V.
(Netherlands Antilles) and Weathermaker Limited.
In its pursuit of latest world-class technologies, Company has entered into
numerous international tie-ups with
In 1998-99, Company undertook a restructuring program, and sold its white goods
business to Electrolux and transferred its chemicals plant at Patancheru to
Ralchem, a subsidiary of Rallis
Voltas International Limited a wholly owned subsidiary comapany merged with the
company with effective from April 1, 2001. In the year 2001, the company has
entered into a Joint Venture agreement with Fedders International Inc.,
In the same year, Voltas Switchgear Limited (VSGL) ceased to be a subsidiary of
the company, consequent upon transfer of the company's 74% shareholding in VSGL
to Precious Trading and Investments Limited Also in the same year, the company
has incresed production capcity of Refrigerators by 100000 nos to 400000
nos.
Virat and VSL, wholly-owned subsidiaries of the company were analagated with
the company from April 1, 2002. In July 2002, the company entered into a JV
agreement with Sermo Montaigu of France and formed a JV, Sermo-PM India Limited
Voltas-Air International Company (VAIL) was a joint venture company between
Voltas and Air International, Australia, became subsidiary of the company
effective December 5, 2002.
The company has increased the production capacity of Refrigerators and
Commercial Refrigeration from 400000 nos to 506000 nos. and for Water coolers
to 24000 nos from 8000 nos. Also they installed Air conditioners for
Specialised Applications having an capacity of 3300 nos. in the same
year.
During 2004, the company made alliance with Al Hashar Group, a leading business
house in the Middle East, for the distribution of Coolling Appliances of Voltas
in
In the year 2005-06, WML has become a wholly owned subsidiary of the Company.
The company has increased the production capacity of Packaged Air conditioners
from 10050 nos to 11050 nos.
In the year 2006-07, two new plants at Pantnagar in Uttarakhand for central air
conditioning equipment and commercial cooling products were commissioned. UCPL,
a joint venture company is in the process of establishing a new manufacturing
facility with annual capacity of 300000 units at Pantnagar in Uttarakhand,
which is expected to become operational in 2007-08. The company has increased
the production capacity Packed Air conditioners by 5000 nos., and Package
Chillers by 280 nos. Also they installed Vapour Absorption Machine and Terrain
Cranes Crusher with the production capacity of 35 nos and 10 nos
respectively.
OPERATIONS:
The after-effects of the global slowdown of 2008, spilled
over into the first half of the financial year 2009-10. Though there was an
improvement in the domestic business environment in the latter half of the
financial year, the emergence of the
Against this backdrop, the Turnover of the Company grew by 12% to Rs.45650.000 Millions and the Profit before Tax increased by over 32% to Rs.4850.000 Millions. The Earning per share for the year was Rs.10.40, an increase of 36%.
The growth of the Company was due to both external factors
as well as the efforts of the Management. On the external front, as the general
outlook improved and consumers resumed spending, there was a significant
pick-up in the consumer durables sector and this benefited Their Unitary
Products Business. A planned expansion of the distribution channel, improved
supply chain management and better product-mix and an aggressive advertising
strategy fuelled growth of sales of both Room Air Conditioners as well as
Refrigeration products in
The effective execution of projects by the Company’s
international electro-mechanical business also contributed significantly to the
improved profitability of the Company. The Company won laurels for its role in
completing the Formula 1 Race Track in
The general economic uncertainty did, however, lead to a
slowdown in the award of new electro-mechanical projects, both domestically and
overseas. An overhang of supply in the commercial buildings sector has slowed
down the pace of implementation of new projects. To mitigate this impact, The
Company is making a deliberate move to take on more electro-mechanical projects
in the industrial segment, including building up capabilities and requisite
technical pre-qualifications. The Company’s equity stake in Rohini Industrial
Electricals Limited was in line with this strategy, enabling it to expand the
domestic project offerings significantly into electrical contracting. The
rising price of oil has also led to a sustained thrust by governments in the
The Company’s management took several initiatives to mitigate the volatility in global metal prices as well as currency fluctuations, entering into advance contracts where feasible. There was also a conscious thrust to evolve a leaner cost structure and this enabled the Company to improve its performance.
FINANCE
The Company’s policies in respect of finances and foreign exchange helped the Company steer through a challenging environment.
The Company’s cash flow for the year has been good and in line with profitability. With continued good working capital management, the amount and number of days of receivables have declined. Most of the excess stock has been liquidated. At the end of the year, the Company held liquid investments in excess of Rs.2000.000 Millions as against Rs.1210.000 Millions at the end of the previous year. The return on liquid investments has been lower compared to the previous year due to the low interest yields that prevailed during the year.
The Company has also given advances to its subsidiary companies to meet their liquidity imbalances and reduce dependence on external financing. With efficient realization of collections, the Company has reduced floats in the system. In the International Operations, cash balances have risen from Rs.2400.000 Millions per end of the previous year to Rs.3080.000 Millions. During the year, the Company invested around Rs.240.000 Millions in acquiring a further 16% shareholding in Rohini Industrial Electricals Limited and the Company now owns 67% in Rohini. The Company’s external debt, at the year end was negligible at Rs.190.000 Millions and the Net Worth was Rs.9950.000 Millions.
On management of foreign exchange, except conversion of balances held overseas, the results have been encouraging. The Company’s philosophy is to hedge the known risks in a conservative manner.
TATA BUSINESS
EXCELLENCE MODEL (TBEM)
As a part of ongoing efforts to create a culture of continuous improvement and total employee engagement, the Company focused on various initiatives, such as Six Sigma, Process Management and Process Improvement, Strategy Deployment Matrix and Total Productive Maintenance. These have been progressing well, and providing the desired benefits. The Company has undertaken implementation of OHSAS 18001 in its drive towards a strong and effective safety policy.
During the year, the international Electro-Mechanical business (EM) and the domestic Electro-Mechanical and Refrigeration business (EM and R) participated in the Tata Group level TBEM External Assessment. While the performance of EM and R was steady as compared to the previous assessment, the performance of EM showed considerable improvement, entitling the business to an award at the Group level. Both EM and EM and R began work on action plans for further improvements based on feedback reports from the Assessments. The Company has developed a pool of trained TBEM Assessors to support its Business Excellence initiatives and also to provide External Assessors at the Group level.
IT INITIATIVES
During the year, the Company initiated and completed several strategic projects in IT. The Human Capital Management (SAP-HCM) system for overseas employees integrated all employees on a single platform, yielding better control over manpower costs. SAP modules implemented for international Electro-mechanical business would result in better project management through increased visibility and operational control.
Customer Relationship Management (CRM) software implemented for the domestic Electro-mechanical business will help in better service delivery of maintenance projects. Unitary Products business upgraded its existing CRM software by incorporating Dealers’ Service Reports and claims, with linkage through the SAP system.
The upgrade of SAP to the latest version would also enable the Company comply with the reporting requirements proposed under IFRS.
COMMUNITY DEVELOPMENT
The Company plays an active role in improving the quality of life of the communities amongst which it operates, through a well-defined framework for implementing its Community Development philosophy.
Through its Core Competency projects, the Company continues
to provide hands-on technical training to youth from less privileged
backgrounds. The involvement of the Company in terms of employees’ time,
knowledge and interest, as well as financial assistance, goes a long way to
wards the projects’ usefulness and productivity. The objective of the programme
is to impart vocational training to underprivileged youth to empower them,
educate them, and enhance their employability. The Company continues to partner
with the
As part of the implementation of its Affirmative Action
policy, in accordance with CII guidelines, the Company has rolled out
initiatives in the areas of Employment, Employability, Entrepreneurship and Aid
in Education. The Company has adopted the Policy of Positive Discrimination in
recruitment towards candidates belonging to SC/ST communities. Similarly, the
Company has a tie-up with selected Technical Institutes across
As part of Aid-in-Education, the Company provides monetary
help to deserving SC/ST students from engineering colleges. During the year,
the Company extended scholarships to 24 students from the Mechanical and
Electrical streams. In addition, the Company sponsored a youth delegate to the
Climate Change Convention held at the Bella Centre in
In accord with its commitment to energy-saving and ‘green’ initiatives,
the Company partnered with The Energy and Resources Institute (TERI) to sponsor
electrification of 10 villages entirely through sustainable energy sources. The
initiative was carried forward by Unitary Products business, linked to a
nationwide drive to promote awareness of energy-saving products such as
During the year, the Company’s volunteers participated in numerous activities, including care for the elderly, income generation programmes, tutoring and mentoring of orphans and underprivileged, volunteer visits to care-giving institutions, blood donation drives, awareness programmes such as for Road Safety and Environment, and assistance to SC/ST children with specialized Englishlanguage classes and mid-day meals.
Voltas Organisation of Women (VOW), exclusively run by lady employees and the wives of male employees, continued to live up to its objective of helping the needy by way of providing financial assistance in the field of health and education and promoting the upliftment of women. In 2009, VOW organized street plays on human trafficking, domestic violence and property rights of women. VOW also supported vocational training for women through its various partners.
GLOBAL COMPACT AND
CARBON DISCLOSURE PROJECT
The Company is a signatory to the 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.
ENVIRONMENT AND
SAFETY
Towards this end the Company recently completed a Carbon Footprint mapping exercise for all its manufacturing plants and has undertaken initiatives to reduce its Carbon Footprint. During the year, the Company formally adopted a Policy on Climate Change. The Thane Manufacturing Plant is in an advanced stage of ISO 14001 standard implementation, which deals with environmental issues. The Company has also reached an advanced stage of OHSAS 18001 standard implementation at one of its manufacturing plants, one project site and at the Head Office. During the year this initiative will be further extended to other parts of the organization. All the manufacturing plants have appropriate safety initiatives under way, headed by senior officials who diligently oversee the safety aspect.
SUBSIDIARIES
Weathermaker Limited (WML) engaged in the business of manufacturing galvanized iron, aluminium, black mild steel and stainless steel duct 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 33.423 million and profit of AED 5.053 million for the year ended 31st December, 2009.
The rehabilitation/financial restructuring of Saudi Ensas Company for Engineering Services WLL (Saudi Ensas), a wholly-owned subsidiary of the Company in Jeddah, Kingdom of Saudi Arabia (KSA) is almost complete. Saudi Ensas is engaged in the execution and operations/ maintenance of electro-mechanical installations in KSA and has for the year ended 31st December, 2009, recorded turnover of SR 10.248 million and net profit of SR 0.109 million. The Company has provided financial assistance from time to time, aggregating SR 19.955 million (equivalent to Rs.240.000 Millions approx.) to Saudi Ensas. KSA has huge business potential and provides good opportunity to the Company’s overseas electro-mechanical business. It was therefore decided to establish a branch office of the Company in KSA, subject to requisite approvals including commercial registration. While small and medium size projects would be catered to by Saudi Ensas, large size projects would be executed by the Company’s branch office in KSA.
Universal Comfort Products Limited (UCPL), a whollyowned subsidiary of the Company, engaged in the business of manufacturing air conditioners, has recorded a turnover of Rs.3320.000 Millions and net profit of Rs.140.000 Millions for the year ended 31st March, 2010.
During the year, the Company increased its shareholding in Rohini Industrial Electricals Limited (RIEL) from 51% to 67.33% of its share capital. RIEL is engaged in undertaking large turnkey electrical and instrumentation projects for industrial and commercial sectors and recorded turnover of Rs.2140.000 Millions and net profit of Rs.90.000 Millions for the year ended 31st March, 2010.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW
The Company continued its journey on the path of growth, and
took significant steps to ensure long-term sustainability in the face of risks and
uncertainties in the economic environment. The Company has now crossed
significant milestones in terms of Consolidated Profit of Rs.5000.000 millions
and Consolidated Net Worth of Rs.10000.000 millions. Over the last few years,
the Company has significantly deleveraged its Balance Sheet. The analysis below
is on Standalone Voltas performance and the performance of Company’s
Subsidiaries and Joint Ventures are analysed separately.
The Company sustained its focus on shaping its offerings of projects, services and products to the prevailing market circumstances and challenges. There have also been significant measures to optimize costs and streamline processes so as to better leverage opportunities in the expected economic resurgence.
3. The business segments of the Company are:
‘A’ - Electro-mechanical Projects and Services
‘B’ - Engineering Products and Services
‘C’ - Unitary Cooling Products for Comfort and Commercial Use
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
The domestic market for HVAC (Heating Ventilation and Air Conditioning) has shown signs of recovery during the review period. However, the size of the market has not reverted to the pre-downturn levels. The Building Environment segment has seen a slowdown in projects for commercial buildings, due to scarcity of funds available to builders. The Healthcare sector, however, supported by government investments, has shown rapid growth and presents a positive outlook. In the Industrial sector there has been a delay in planned procurement by the power plants and the backlog is likely to spill into next year.
Despite these constraints, the Order book of domestic Electro-mechanical business has grown by 21% over the previous year, due to inroads into MEP business, focus on urban infrastructure projects, forays into multi-disciplinary industrial projects and repeat orders from existing customers. 45% of the total order booking was from repeat customers.
The Company secured MEP orders for two international airport
modernization projects initiated during 2009-10, reinforcing its reputation in
the Airport sector. The first order was from ITD-ITDCEM for Netaji Subhas
Chandra Bose International Airport (Kolkata) and the second was from CCCL-HPI
for
Redefined market segmentation and clear customer focus has resulted in development and progress in all the segments addressed by the Company. The Building Environment and Urban Infrastructure segments together contributed to 70% share of order bookings. Major orders included Sofitel (Accor Group) Hotel in Mumbai, Le Meredien Hotels in Coimbatore, ESIC Hospital in New Delhi, TATA Medical Trust in Kolkata, Army Hospitals in Delhi, Amanora Mall in Pune, Infiniti Mall and Neptune Mall in Mumbai, Ascendas Phase-3 at Siruseri and TCS Phase-2 at Hyderabad.
The Company leveraged its strengths to address the rapidly growing demand in the Power and Metal industries. With its diversified offerings, the Company secured a breakthrough order from Maithon Power for Low Pressure piping and Electrical Balance of Plant (EBOP) for Primary Water systems. This was further augmented by a major order from Tata Steel for Low Pressure piping works. These orders demonstrate the capabilities of the Company in Industrial, Mechanical and Electrical services.
The Company was awarded a specialty multi-disciplinary project from Mahindra Engine Research and Development
Centre, Chennai, the first of its kind to involve twelve specialized systems, including HVAC, Electrical, Compressed air, Fire detection (gas detection) and fire protection (water mist), Building Management Systems, Public Address system and Fuel supply. Additionally, the Company was entrusted with the responsibility for Project Management Consultancy of acoustics in the engine test room, as well as test cell and fan analytical gases.
Repeat orders were secured from Maruti for its facilities at
Mundra, Manesar and
included specialized mechanical and electrical services beyond the conventional HVAC systems.
The Company maintained commendable track record of on-time progress in fast track projects, by executing 9 out of the 13 stadiums being built for the Commonwealth Games, New Delhi, as well as 4 training venues. The pace of work was maintained against difficult working conditions, including working at great heights and met the highest technical requirements, such as low velocity of air.
The Company established integrated state-of-theart testing facilities
for its Energy Conservation Building Code (ECBC)/ASHRAE 90.1 compliant standard
range of chillers, manufactured at its Dadra plant. The manufacturing
capabilities received a new impetus with the successful commissioning of
indigenously developed co-generation Vapour Absorption Machines (VAM) of large
capacity (1450 TR) for Thyagaraja Stadium in
In the low-temperature refrigeration area, the Company has established its capabilities in design, manufacture and commissioning of chiller packages for specialized purposes, as demonstrated by the successful commissioning of ultra-low temperature chiller packages for BARC at -75º C, and Rallis’ fertilizer and petrochemicals plant at -65º C, as well as Jayashree Chemicals’ chlorine liquefaction plant (200 MTPA).
The Company also participated in execution of a prestigious project based on a technical paper published by BARC Scientific Division, to enhance the shelf life of onions to 6 months. While the irradiation requirements were handled by BARC, the process cooling was undertaken by the Company – an instance of new area in which the trust of clients has been won and vindicated.
There has been significant growth in the Variable Refrigerant Flow (VRF) segment. VRF systems engineered
by the Company contributed significantly to the triumph of
projects which won the 4 most prestigious awards conferred at the Emerson Cup
2009 for
The Company’s careful selection of geographies and customers
sustained its thrust in international Electrome chanical business through a
very difficult business environment. Profitability of the International
Operations improved very significantly on the back of good quality order book.
The Company commissioned several large projects during the year. These included
two prestigious projects in GCC, which were delivered within their timeframes,
namely the Burj Khalifa (Dubai), the world’s tallest man-made structure, and
the Yas Marina F1 Circuit (Abu Dhabi), which the Company completed and
delivered well in time for the UAE’s first Grand Prix event, earning an
unprecedented letter of appreciation from the Chairman of Aldar Properties, the
Developers. The Company also completed the large District Cooling Plant in
Dubai International Financial Centre. This along with the critical District
Cooling Plant at
The economic recession last year resulted in a slowdown in
certain geographies in which the Company operates, such as
The Company’s international Electro-Mechanical business successfully re-certified its Quality Management System for the ISO 9001: 2000 standard and renewed its Business Excellence drive by participating in the Group’s TBEM External Assessment. The Company improved its score from 317 to 453 on a 1000 point scale, thereby winning a ‘Serious Adoption Award’, reflecting the positive outcome of various improvement initiatives.
Rohini Industrial Electricals Limited, which is engaged in Industrial Electrical Projects and where the Company holds 67% shareholding, performed satisfactorily during the year with a turnover of Rs.2140.000 Millions against Rs.1910.000 Millions in the previous year. The operating profit of the Company was lower at Rs.140.000 Millions against Rs.170.000 Millions last year, due to higher input costs. There was also an increase in employee cost and sales expenses. Benefits from some of these costs are likely to accrue in the coming years. Rohini has a robust Order Book and this should augur well for the future.
Universal Voltas Limited (UVL),
Weather maker Limited, based in Jebel Ali Free Zone in
The Company’s overall carry forward Order Book for the Electro-mechanical Projects and Services segment was Rs.42270.000 Millions, as at 31st March, 2010.
ENGINEERING PRODUCTS
AND SERVICES
The Indian textile industry witnessed growth in the second half of 2009-10 which led to higher investment in machinery, in both spinning and post-spinning segments like fabric forming, processing and finishing. The order booking and despatches for spinning machinery increased by 25% over the previous year, driven by domestic demand as also strong export of yarn and garments. The Company was also able to consolidate its relationship with Thies GmbH for dyeing machinery and booked orders of over Euro 10 million.
The Indian construction equipment industry witnessed growth in the second half of 2009-10, led by higher investments in infrastructure and road projects. The iron ore mining segment also picked up post-September 2009
due to the increase in exports to
The Indian materials handling equipment industry continued to see a downturn in 2009-10, without any pick up in investments in manufacturing capacity by customers. Though there was some improvement in the fourth quarter, forklift and crane production and sales for the year declined by 11% and 70%, respectively. The Company maintained its market share for forklifts and increased its sales of warehousing equipment, parts and service.
The down turn was a good opportunity for relooking at the cost structure and improving internal efficiencies. This will help in long term sustainability of the operations.
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
The Indian air conditioner industry witnessed growth of 25% during the year , reflecting the nation’s economic recovery from the recessive downturn of the previous year. Two significant trends were in evidence: the industry’s movement towards energy-efficient ‘Star’ rated products, and the higher growth rate in split ACs compared to window ACs.
In this climate of renewal, the Company’s Unitary Cooling Products Business registered robust growth of 30% in volume, well above the industry average. The split AC segment was the major contributor with 38% growth, while window ACs registered 17% growth. To further advance its lead, the Company made significant efforts to extend its reach in semi-urban and rural markets, by expanding its sales and service network from 3700 to over 4600 dealers, distributors and retailers, through a focused channel expansion program. In addition, an organized retail vertical has been set up to cater to the demands of these growing demographic strata.
The Company also sustained its developmental focus by introducing an extended range of ‘Star’ rated products. The objective was to cater to the diversity of priorities, preferences, income groups and aesthetic tastes, while maintaining key differentials and attributes, such as the new eco-system technology, self-diagnosis, auto-louver step adjustment, optimized cross-flow vane and other intelligent features.
The new advertising platform of ‘Sensible Cooling’ has been well appreciated, with its thrust on educating the consumer on optimal usage of air conditioners. Following its pioneering launch of energy-efficient air conditioners, the Company continued to hold the high ground in this market. Brand recall reached an all-time peak and the Company’s overall share in the room air conditioner market has been sustained at 16.5%.
The Company’s increased focus on commercial refrigeration, through a separate sales vertical, continues to show good results, with robust growth of 46%, despite the economic slowdown. The water cooler business registered steady growth of 15%, while water dispensers evidenced growth of 13%, thus sustaining market leadership.
The Company has successfully adopted a flexible business model with a judicious mix of outsourcing and in-house manufacturing, which has helped maintain a lowcost and lean operating structure. Operations at the Pantnagar manufacturing facility of the Company’s wholly-owned subsidiary (UCPL) have stabilized, with the facility producing in excess of 2,00,000 units in the year.
Universal Comfort Products Limited (UCPL), the manufacturing arm for this segment, has done very well during the year. The loading of the plant improved substantially due to localization as mentioned above and it contributed Net Profit of Rs.130.00 Millions against a loss of Rs.210.00 Millions in the previous year. Some of the loss in the previous year arose from closure of its Dadra Plant and consequent impairment of assets.
Lalbuksh Voltas Limited, a joint venture company based in the Sultanate of Oman dealing in horticulture, water management and purification, etc., and included in Others Segment, continued to do very well and achieved a turnover of Rs.690.000 Millions as against Rs.580.000 Millions in the previous year. Its operating profit increased significantly from Rs.90.000 Millions in the previous year to Rs.190.000 Millions.
OPPORTUNITIES AND
OUTLOOK
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
With the economic recovery expected to gain momentum in 2010-11, domestic markets are likely to attract new or renewed investment and growth. Those which hold significant opportunities for the Company include healthcare, which would attract both governmental and private investment in hospitals; urban infrastructure, specifically metro rail transport; airports and ports; power, steel and manufacturing sectors; and educational/research institutions. The Company is well placed to seize these opportunities with its proven integrated capabilities in MEP contracting, as well as in electrical works through Rohini Industrial Electricals Limited, its subsidiary company. The years on year improvement in the value and quality of the order book are good indicators of the strength of the Company for future growth.
New opportunities are also being opened up by the growing industrial focus on energy-efficiency, reduction of carbon footprint, carbon credit trading and ‘Green buildings’ in the commercial sector, as mandated by the government’s Bureau of Energy Efficiency. With its established record in this area, the Company has a strong competitive edge.
The principal driver of the GCC economies being oil revenue,
the sharp drop in oil prices early in the year had resulted in some of the
Governments adopting a cautious approach towards their spending. Oil prices
picked up during the latter half of the year 2009-10 and currently stand at
about USD 70 a barrel vis-à-vis USD 40 a barrel at the start of the year,
indicating that an economic recovery was under way. Furthermore, Governments of
GCC countries are committed to invest in developing infrastructure, education
and healthcare over the next few years, especially,
The Company is in the process of restructuring its international operations to expand its geographical presence and enhance focus on projects in industry, infrastructure and oil and gas, which have greater assurance of Government spending in the attempt to pull economies out of the recession.
ENGINEERING PRODUCTS
AND SERVICES
It is expected that investments in capital goods and engineering products will be sustained in the next few years as the Indian economy regains its growth path, including infrastructure projects such as airports, ports, power and roads and manufacturing industries such as textiles. This would provide good opportunity and demand for engineering products and services of the Company in the segments of mining and construction equipment, materials handling equipment and textile machinery.
The Company has pending orders for large mining equipment from coal projects as well as on-going parts and service contracts which will sustain the revenues in future. Demand for crushing and screening equipment and cranes is also expected to be strong for infrastructure and road projects.
The market for materials handling equipment is beginning to revive, with growth and increased investments in manufacturing sectors such as two-wheelers, automobiles, general engineering and power. These are expected to lead to additional requirement in logistics, warehousing and materials handling, driving the demand for forklifts, cranes and warehousing equipment.
New projects are now being planned in the spinning sector, yielding good demand for spinning machinery and services. The post-spinning sector, particularly processing and finishing, also has a number of projects on the anvil which should sustain demand.
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
The domestic room air conditioner industry is expected to grow by around 25% in the year ahead, driven by its presently low penetration levels, coupled with rising middle-class aspirations, growth in disposable incomes and the increasing impact of climate change. Better availability of reliable power supply and lower cost of running air conditioners with energy efficient machines are also likely to accelerate the pace of growth in demand. The Company plans to seize these opportunities, through a focused channel expansion effort in B and C class towns and by creating a product mix suited to the requirements of the emerging customer base. 45. The commercial refrigeration segment is expected to continue to grow at 35%, driven by a growing demand supply gap as well as the need for quality infrastructure in user industries such as retail, dairy, ice cream and brewery. With its high-quality products and superior on-time delivery and service, the Company is well placed to maintain its leadership position.
THREATS
ELECTRO-MECHANICAL
PROJECTS AND SERVICES
With the Company’s increased exposure in the industrial and infrastructural sectors, any delays in the planned execution of announced projects could impact the business projections.
Attracted by the growing Indian economy, many multinational companies are considering entry into the MEP sector. In addition, some of the main contractors are developing in-house MEP capabilities and this is expected to cause competitive pressure for the business and is also likely to impact the operating margins.
The Company’s major markets in UAE could be adversely
affected by debt restructuring and the difficulties of
A major risk could arise in the event of a global slowdown
and resultant drop in oil prices/revenues which could impact the GCC Governments’
ability to drive growth. 50. The demographic mix of the labour workforce within
the GCC countries includes a large proportion of expatriate workers, which
could be a cause of concern and unrest in countries like
The Company’s overseas revenues are directly impacted by
fluctuations in currency rates, since its
ENGINEERING PRODUCTS
AND SERVICES
The growth in the Indian economy and industry is attracting
global and domestic manufacturers to set up operations in
Other potentially adverse factors relate to increase in input costs of steel and other raw materials and fluctuations in foreign exchange rates. These could impact margins for the Company’s own manufactured and traded products. The Company has set up processes for cost reduction through value engineering and other initiatives to protect the margins. Global uncertainty and instability could also adversely affect the domestic investment climate which could have a direct bearing on the Engineering Business.
UNITARY COOLING
PRODUCTS FOR COMFORT AND COMMERCIAL USE
While earlier the Company had differentiated its products on
the energy-efficiency platform, energy labeling has now become mandatory.
Consequently, in future, there will be limited product differentiation across
brands. To succeed in the market place, the business has to once again create
an endearing and enduring value proposition for the customer. Further, since
the Company does not offer the full range of consumer durables, it has lower
bargaining power in organized retail stores, which are now becoming an
increasingly important distribution channel and whose numbers are growing
significantly. Inventory planning is another major challenge since over the
last two years, either the markets have slowed down suddenly resulting into
large inventories or grown at unprecedented rate resulting in need for
procuring products at higher cost, pressuring the margins. Fluctuating value of
Indian Rupee vis-à-vis US Dollars is another factor that can impact the margins.
UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE
QUARTER ENDED 30.06.2010
Rs. In Millions
|
Particulars |
|
Quarter ended 30.06.2010 |
|
Sales / Income from Operations |
|
14101.400 |
|
Less: Excise Duty |
|
70.900 |
|
a) Net Sales / Income from Operations |
|
14030.500 |
|
b) Other Operating Income |
|
52.800 |
|
Total Operating Income |
|
14083.300 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade |
|
(402.500) |
|
(b) Consumption of Raw Materials |
|
7580.800 |
|
(c) Purchase of traded goods |
|
2928.400 |
|
(d) Employees Cost |
|
1346.900 |
|
(e) Depreciation |
|
50.100 |
|
(f) Other Expenditure |
|
1353.500 |
|
Total Expenditure |
|
12857.200 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
1226.100 |
|
Other Income |
|
200.200 |
|
Profit/(Loss) before Interest and Exceptional items |
|
1426.300 |
|
Interest |
|
52.700 |
|
Profit / (Loss) after interest before Exceptional items |
|
1373.600 |
|
Exceptional Items |
|
(7.400) |
|
Profit / (Loss) From
Ordinary activities before Tax |
|
1366.200 |
|
Provision for Taxation |
|
|
|
- Current including Differed Tax |
|
429.000 |
|
- Fringe benefit Tax |
|
-- |
|
Net Profit/(Loss) From Ordinary activities after Tax |
|
937.200 |
|
Minority Interest in Profit |
|
(4.800) |
|
Profit after Minority Interest |
|
932.400 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
|
330.700 |
|
Reserves (Excluding Revaluation Reserves) |
|
-- |
|
Public Share
Holding |
|
|
|
-Basic |
|
2.82 |
|
-Diluted |
|
2.82 |
|
Average of Public Share Holding |
|
|
|
- Number of Shares |
|
230034085 |
|
- Percentage of shareholding |
|
69.52 |
|
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 |
|
100850655 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
100.00 |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
30.48 |
CONSOLIDATED SEGMENT INFORMATION FOR THE QUARTER ENDED 30.06.2010
Rs. In Millions
|
Sr. No |
Particulars |
Quarter ended 30.06.2010 |
|
1 |
Segment Revenue |
|
|
|
a) Segment – A (Electro-mechanical Projects and Services) |
6925.700 |
|
|
b) Segment – B (Engineering Products and Serivces) |
1203.400 |
|
|
c) Segment – C (Unitary Cooling Products for Comfort and Commercial use) |
5867.600 |
|
|
d) Others |
37.600 |
|
|
Less: inter segment revenue |
3.800 |
|
|
Net Sales/Income
from operations |
14030.500 |
|
2 |
Segment Results
after Exceptional Items |
|
|
|
a) Segment – A (Electro-mechanical Projects and Services) |
585.700 |
|
|
b) Segment – B (Engineering Products and Services) |
575.800 |
|
|
c) Segment – C (Unitary Cooling Products for Comfort and Commercial use) |
547.100 |
|
|
d) Others |
1.000 |
|
|
Total |
1409.600 |
|
|
Less: Interest (Net) |
52.700 |
|
|
Less: Other unallocable expenditure net of un-allocable income |
(9.300) |
|
|
Profit from
Ordinary Activities before tax |
1366.200 |
|
|
Capital Employed |
|
|
|
a) Segment – A (Electro-mechanical Projects and Services) |
2461.400 |
|
|
b) Segment – B (Engineering Products and Serivces) |
987.100 |
|
|
c) Segment – C (Unitary Cooling Products for Comfort and Commercial use) |
485.600 |
|
|
d) Others |
77.000 |
|
|
e) Unallocated |
7785.000 |
|
|
Total |
11796.100 |
Notes:
- Segment ‘C” is seasonal in nature with sales usually being highest in the first quarter.
- Segment Results before Exceptional Items
Segment – A 585.700
Segment – B 275.800
Segment – C 547.100
Others 1.000
Unallocated Income / 16.700
(Expenses) – Net
Interest (52.700)
Total 1373.600
Notes:
1. The following companies have been considered for the purpose of preparing consolidated Financial Statements as per Accounting Standard on:
a) Consolidated Financial Statements (AS 21)
b) Financial Reporting of Interests in Joint Ventures (AS 27)
|
Name of the company |
Ownership in %
either directly or through subsidiaries |
Name of the company |
Ownership in %
either directly or through subsidiaries |
|
Subsidiaries |
|
Joint Ventures |
|
|
i) Simot Investment Company Limited |
95.57 |
x) Universal Voltas, L.L.C, |
49.00 |
|
ii) Auto Aircon ( |
100.00 |
xi) Lalbuksh Voltas Engineering Services And Trading L.L.C, Sultanate Of Oman |
49.00 |
|
iii) |
100.00 |
xii) Naba Diganta Water Management Limited |
26.00 |
|
iv) Vil Overseas Enterprises B.V, The |
100.00 |
xiii) Universal Wealthermaker Factory L.L.C, |
49.00 |
|
v) Voice Antilles N.V, |
100.00 |
|
|
|
vi) Wealthermaker Limited, |
100.00 |
|
|
|
vii) Universal Comfort Products Limited |
100.00 |
|
|
|
viii) Rohini Industrial Electricals Limited |
67.33 |
|
|
|
ix) Saudi Ensas Company For Engineering Services W.L.L, |
100.00 |
|
|
2. The Company has opted to publish consolidated financial results, pursuant to option made available as per Clause 41 of the Listing Agreements, The stand-alone financial results are available on the Companys website viz. www.voltas.com and on the websites of BSE (www.bseindia.com) and NSE (www.nseindia.com).
3. Exceptional ltems-Net:
a) For the quarter ended 30.06.2010 (quarter ended 30.06.2009) comprises Profit on sale of properties / surrender of tenancy rights - Nil (Rs. 30.300 millions), Charge of voluntary retirement scheme I early separation scheme - Rs. 7.400 millions (Rs. 2.300 millions).
b) For the year ended 31.03.2010 comprises Profit on sale of properties I surrender of tenancy rights - Rs 288.100 millions, Reversal of provision for contingencies - Rs 78.300 millions, Charge of voluntary retirement scheme - Rs 2.500 millions, Impairment of fixed assets - Rs. 22.700 millions. Impairment of goodwill on consolidation - Rs. 91.000 millions.
4 The Company has entered into a Memorandum of Understanding
with Mustafa Sultan Enterprises L L C ,
5 The Company has entered into a Memorandum of Understanding
with Mustafa Sultan Enterprises L L C ,
6 There were no investor complaints pending as on 01.04.2010 and 30.06.2010 Two complaints were received during the quarter ended 30.06.2010, which were attended to.
7. The above results have been reviewed by the Board Audit Committee and approved by the Board of Directors at its Meeting held on 28.07.2010.
8. The Statutory Auditors have carried out a limited review of the Consolidated financial results for the quarter ended 30.06.2010.
9. Information on Standalone Financial Results.
Rs. In Millions
|
|
Quarter ended 30.06.2010 |
|
Net Sales / Income from Operations |
13704.300 |
|
Profit before tax |
1249.300 |
|
Profit after tax |
846.000 |
10. Figures for previous period/year have been regrouped, wherever necessary.
CONTINGENT LIABILITIES NOT PROVIDED FOR: (As on
31.03.2010)
(a) Guarantees on
behalf of other companies:
Limits Rs.759.918 millions
against which amount outstanding was Rs.564.860 millions against which a
provision has been made for contingencies Rs. Nil.
(b) Claims against
the Company not acknowledged as debts:
In respect of
various matters aggregating Rs.2513.901 millions, net of tax Rs.1659.426
millions against which a provision has been made for contingencies Rs.112.500
millions. In respect of a contingent liability of Rs.450.284 millions the
Company has a right to recover the same from a third party.
|
|
Amount
(Rs.
in millions) |
|
Taxes, Cesses and Duties (other than income tax) |
1675.484 |
|
Contractual matters in the course of business |
456.820 |
|
Real Estate Disputes and Demands |
351.976 |
|
Ex-employees matters |
24.863 |
|
Others |
4.758 |
|
|
2513.901 |
(c) Income tax
demands:
In respect of
matters decided in Company’s favour by Appellate Authorities where the
Department is in further appeal - Rs.129.563 millions.
(d) Staff demands
under adjudication: Amount indeterminate.
(e) Liquidated damages, except to the extent provided, for delay in
delivery of goods: Amount indeterminate.
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,
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.44.53 |
|
|
1 |
Rs.71.80 |
|
Euro |
1 |
Rs.63.15 |
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.