MIRA INFORM REPORT

 

 

Report Date :

01.06.2011

 

IDENTIFICATION DETAILS

 

Name :

BAJAJ ELECTRICALS LIMITED

 

 

Registered Office :

45 – 47, Veer Nariman Road, Mumbai – 400 001, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

14.07.1938

 

 

Com. Reg. No.:

11-9887

 

 

Capital Investment / Paid-up Capital :

Rs.195.089 millions 

 

 

CIN No.:

[Company Identification No.]

L31500MH1938PLC009887

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMB01798G / PNEB03717A / PNEB03465A / PNEB02841G

 

 

PAN No.:

[Permanent Account No.]

AAACB2484Q / AAACB2484R

 

 

Legal Form :

Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer, Trader and Importer of Lighting Appliances and Fans.

 

 

No. of Employees :

1500 (Approximately) 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Aa (75)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

 

 

 

Maximum Credit Limit :

USD 19000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and a reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. 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.

 

It can be considered as a promising business partner in medium to long run.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date

 

INFORMATION PARTED BY

 

Name :

Mr. Vishal

Designation :

Finance Head

Contact No. :

91-22-22851279

Date :

31.05.2011

 

 

LOCATIONS

 

Registered / Corporate 1 Office :

45 – 47, Veer Nariman Road, Mumbai – 400 001, Maharashtra, India.

Tel. No.:

91 – 22 – 22823090 / 22043841 / 22045046 / 23765003

Fax No.:

91 – 22 – 22828250

E-Mail :

message@bajajelectricals.com

legal@bajajelectricals.com

amp@bajajelectricals.com

Website :

http://www.bajajelectricals.com

Location :

Owned

 

 

Head Office :

51, Mahatma Gandhi Road, Mumbai – 400 023, Maharashtra, India.

Tel. No.:

91-22-22043780 / 22875135 / 22043733

Fax No.:

91-22-22828250

 

 

Corporate Office 2 :

Ground Floor, L – 9, Type Building, Rajalaxmi Commercial Complex, Mane Farm House, Opposite Durgesh Park, Kalher Village, Bhiwandi, Thane – 421 302, Maharashtra, India

 

 

Plant 1:

Chakan Unit

 

Mahalunge, Chakan Talegaon Road, Khed, Pune – 410 501, Maharashtra, India

 

 

Plant 2:

Wind farm

 

Village Vankusawade, Taluka Patan, District Satara - 415 206, Maharashtra, India

 

 

Plant 3:

Ranjangaon unit

 

Village Dhoksanghvi, Taluka Shirur, Ranjangaon, District Pune - 412 210, Maharashtra , India

 

 

Plant 4 :

Matchwel Unit

 

Off Nagar Road, Pune – 411 014, Maharashtra, India

 

 

Depots :

Located at:

 

·         Daman

·         Dehradun

·         Goa

·         Zirakhpur

·         Faridabad

·         Jabalpur

·         Jalandhar

·         Ranchi

·         Roorkee

·         Bhiwandi

·         Kundli

·         Parwanoo

 

 

Showroom :

‘World of Bajaj Electricals’ Bajaj Bhavan, Nariman Point, Mumbai – 400 021, Maharashtra, India

Tel. No.:

91-22-20236626

 

 

Branches :

Located at:

 

·         Ahmedabad

·         Bangalore

·         Bhubaneshwar

·         Chandigarh

·         Chennai

·         Cochin

·         Delhi

·         Guwahati

·         Hyderabad

·         Indore

·         Jaipur

·         Kolkata

·         Lucknow

·         Mumbai

·         Nagpur

·         Noida

·         Patna

·         Pune

·         Raipur

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. Shekhar Bajaj

Designation :

Chairman and Managing Director

Date of Birth/Age :

54 years

Qualification :

B.Sc. (Hons.), M.B.A.

Experience :

32 years

Date of Appointment :

01.04.1980

 

 

Name :

Mr. Harsh Vardhan Goenka

Designation :

Director

 

 

Name :

Mr. A. K. Jalan

Designation :

Director

 

 

Name :

Mr. Ajit Gulabchand

Designation :

Director

 

 

Name :

Mr. M. R. Pai

Designation :

Director

 

 

Name :

Mr. V. B. Haribhakti

Designation :

Director

 

 

Name :

Mr. Madhur Bajaj

Designation :

Director

 

 

Name :

Mr. S. C. Batra

Designation :

Director

 

 

Name :

Mr. Dakshesh B. Dhruv

Designation :

Director

 

 

Name :

Mr. Anant Bajaj

Designation :

Executive Director

 

 

Name :

Mr. R. Ramakrishnan

Designation :

Executive Director

 

 

Name :

Dr. Indu Shahani

Designation :

Director

 

 

Name :

Dr. R P Singh

Designation :

Director

 

 

Name :

Mr. Anant Bajaj

Designation :

Executive Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Mangesh Patil

Designation :

Company Secretary

 

 

Name :

Mr. L. K. Mehta

Designation :

President Engineering and Projects BU

 

 

Name :

Mr. P. S. Tandon

Designation :

President Appliances BU

 

 

Name :

Mr. A. S. Radhakrishna

Designation :

Executive Vice President and Head – Fans BU

 

 

Name :

Mr. Pravin Jathar

Designation :

Executive Vice President and CFO

 

 

Name :

Mr. Vivek Sharma

Designation :

Vice President and Business Head (Morphy Richards)

 

 

Name :

Mr. Prataprao S. Gharge

Designation :

Vice President and CIO

 

 

Name :

Mr. R. Ramesh

Designation :

Vice President - Human Resources and Administration

 

 

Name :

Mr. Siddhartha Kanodia

Designation :

Vice President – Corporate Services

 

 

Name :

Mr. C. G. S.Mani

Designation :

Executive Vice President and Head -Lighting BU

 

 

Name :

Mr. Gulshan Aghi

Designation :

Executive Vice President and Head Luminaires BU

  

 

Name :

Mr. B M Mane

Designation :

Deputy General Manager (Chakan Unit)

 

 

Name :

Mr. J K Deshmukh

Designation :

Chief General Manager Operations and Head – RU (Ranjangaon Unit)

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

20,986,550

21.23

Bodies Corporate

43,460,670

43.97

Sub Total

64,447,220

65.20

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

64,447,220

65.20

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

10,211,255

10.33

Financial Institutions / Banks

941,865

0.95

Foreign Institutional Investors

8,752,176

8.85

Sub Total

19,905,296

20.14

(2) Non-Institutions

 

 

Bodies Corporate

2,133,652

2.16

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

9,119,838

9.23

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million 

2,437,149

2.47

Any Others (Specify)

801,652

0.81

Clearing Members

59,964

0.06

Non Resident Indians

517,604

0.52

Trusts

224,084

0.23

Sub Total

14,492,291

14.66

Total Public shareholding (B)

34,397,587

34.80

Total (A)+(B)

98,844,807

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Trader and Importer of Lighting Appliances and Fans.

 

 

Products:
Item Code No.
Product Description

841451.02

Ceiling Fans

850940.00

Mixer

853910.00

Filament Lamps excluding Ultra Violet or Infra Red Lamps

851640.00

Electric Iron

730820.01

Galvanized Structures

 
 

Imports :

 

Products :

Appliances and Fans

Countries :
  • China

 

 

PRODUCTION STATUS as on 31.03.2010

 

Class of goods
Unit
Licensed Capacity
* Installed Capacity

Actual Production

Fans

Nos.

1000000

800000

347434

Parts and Accessories of Fans

Nos.

50000

---

--

Magneto assemblies

Nos.

500000

300000

--

Parts and Accessories for Magneto

Nos.

25000

25000

--

Electric Motors

Nos.

25000

--

--

Parts and  Accessories for electric motors

Nos.

5000

--

--

Dies made of Steel

Nos.

90

24

--

Power Generated

 

--

2.8 MW

4151102 KWH

Highmast Shafts **

Nos.

--

4000

4600

Swaged / Octagonal Poles  **

Nos.

 

--

56000

33255

Lattice Mast / Transmission Line Towers/ Others (Galvanising Job Work etc.) **

M. Tons

--

24000

17446

 

 

Note:

 

* The installed capacity as certified by the Management, being a technical matter accepted by the Auditors as correct.

** The installed capacity is interchangeable based on business prospects.

 

 

GENERAL INFORMATION

 

No. of Employees :

1500 (Approximately) 

 

 

Bankers :
  • State Bank of Bikaner and Jaipur, Mumbai
  • Bank of Rajasthan Limited, Mumbai
  • Bank of India, Mumbai
  • State Bank of India
  • Yes Bank Limited
  • Union Bank of India
  • Industrial Development Bank of India Limited
  • ICICI Bank
  • HDFC Bank Limited
  • Dena Bank
  • Barclays Bank PLC

 

 

Facilities:

 

Secured Loan

As on 31.03.2010

(Rs. in Millions)

As on 31.03.2009

(Rs. in Millions)

A) Long Term Loans :

From Banks

 

 

Rupee Loans

110.000

315.588

From Institutions

Rupee Loans

0.000

2.422

B) Working Capital Loans :

Cash Credit from consortium banks

 

 

Foreign Currency Loans

164.258

100.820

Rupee Loans

408.563

807.353

Interest Accrued and Due on above Loans

1.030

0.284

IDBI Bank Limited

0.000

250.000

C) Car Loans :

HDFC Bank Limited

0.000

0.441

ICICI Bank

0.000

3.347

Kotak Mahindra Primus Limited

0.000

0.055

Total

683.851

1480.310

 

 

 

Unsecured Loan

 

 

Sales Tax Deferral Loan

(an incentive under 1993 Package Scheme of Incentives of SICOM)

369.481

373.209

Short Term Loans:

From Banks :

Arab Bangladesh Bank Limited

65.000

50.000

Barclays Bank PLC

400.000

200.000

From Others :

Inter-corporate Deposits

0.000

35.000

Total

834.481

658.209

 

Note:

 

1) Long Term Rupee loans from Banks are secured by Exclusive charge over Office Premises

 

i) bearing no 801-Rustomjee Aspriree Off. Eastern Express Highway, Sion, Mumbai - 400 022 and

ii) doors Nos. 103, 103A and 103/1, Nelson Manickam Road, Aminjakarai, Chennai – 600029

 

2) Working capital Loans are Secured by

 

i. First pari passu charge by way of hypothecation of inventories and book debts, excluding Project Specific assets exclusively charged to IDBI Bank Limited

 

ii. First pari passu charge by way of Equitable Mortgage of the Company’s immovable properties at Wardha and Mumbai (Reay Road);

 

iii. First pari passu charge over present and future

 

Fixed Assets of the Company, situated at;

 

a) Ranjangaon Units: Dhoksanghvi, Tal.-Shirur, Ranjangaon, Pune-412 210;

 

b) Chakan Unit: Mahalunge, Chakan Talegaon Road, Khed, Pune-410 501;

 

c) Wind Farm: Vankusawade, Tal. Patan, Dist. Satara, Maharashtra-415 206;

 

d) Residential and Commercial properties situated at Mumbai, Ahmedabad,

Raipur, Hyderabad and Bangalore.

 

These securities also extend to the various credit facilities including Bank Guarantees and Letters of Credit of Rs. 3807.771 Millions (previous year Rs. 2639.712 Millions) executed on behalf of the Company established in the normal course of business. Further Company has availed facilities for Bank Guarantees and Letters of Credit of Rs. 1327.588 Millions (Previous Year Rs. 1225.295 Millions) from IDBI Bank Limited which are secured by exclusive first charge on Company’s movable properties and entire current assets pertaining to specific projects and subservient charge on the Company’s entire movable assets including Stocks and Book Debts etc.

 

3) Short Term Loans are secured by subservient charge on the Company’s entire movable assets including Stocks and Book Debts etc.

 

4) Car Loans are Secured by way of hypothecation of vehicles acquired out of

the said loans.

 

 

Banking Relations :

Good

 

 

Auditors :

Dalal and Shah

Chartered Accountants

 

 

Memberships:

Confederation of Indian Industry

 

 

Associates :
  • Hind Lamps Limited
  • Bajaj Ventures Limited
  • Starlite Lighting Limited
  • Hind Musafir Agency Limited
  • Bajaj Auto Limited
  • Bajaj Hindusthan Limited
  • Jamnalal Bajaj Seva Trust
  • Maharashtra Scooters Limited
  • Mukand Engineers Limited
  • Mukand Limited
  • Bajaj International Private Limited
  • Hindustan Housing Company Limited
  • Hindustan Construction Company Limited
  • Jamnalal Sons Private Limited
  • Hercules Hoist Limited
  • Bajaj Allianz General Insurance Company Limited
  • Bajaj Consumer Care Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

20000000

Equity Shares

Rs. 10/- each

Rs.200.000 millions

 

Issued, Subscribed and Paid-up Capital :

No. of Shares

Type

Value

Amount

97544495

Equity Shares

Rs. 2/- each

Rs.195.089 millions

 

Notes:

 

1. Of the above equity shares :

 

(a) 14,000 Equity Shares of Rs.2/- each (Previous year 2,800 Equity shares of Rs.10/- each) are allotted as fully paid pursuant to a contract without payment being received in cash,

 

(b) 863,900 Equity Shares of Rs.2/- each (Previous year 172,780 Equity shares of Rs.10/- each) are issued to the Deferred Shareholders pursuant to the Scheme of Conversion of Deferred Shares into Equity Shares,

 

(c) 187,700 Equity Shares of Rs.2/- each (Previous year 37,540 Equity shares of Rs. 10/- each) are issued as fully paid to the Shareholders of the erstwhile Matchwel Electricals (India) Limited in terms of the Scheme of Amalgamation,

 

(d) 55,218,400 Equity Shares of Rs.2/- each (Previous year 1,10,43,680 Equity shares of Rs. 10/- each) are allotted as fully paid Bonus Shares by capitalising Reserves.

 

(e) 1,02,41,695 Equity Shares of Rs.2/- each (Pre-subdivision 20,48,339 Equity shares of Rs. 10/- each) have been allotted to QIBs, during the year, pursuant to the resolution passed by the shareholders through Postal Ballot on 18th November, 2009.

 

2. The Company has granted stock options under the Company’s Employees’ Stock Option Scheme and stock options outstanding as at 31st March, 2010 are 29,16,080 under Growth Plan and 10,800 under Loyalty Plan. The stock options granted under Growth Plan have not been vested. During the year, the Company has issued and alloted 8,74,000 Equity shares to the eligible employees on their exercise of Loyalty options. 

 

 

 

 

 

 

 

 

 

 

 

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

195.089

172.858

172.858

2] Stock option outstanding

1.620

28.443

13.151

3] Reserves & Surplus

4747.016

2248.834

1561.772

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

4943.725

2450.135

1747.781

LOAN FUNDS

 

 

 

1] Secured Loans

683.851

1480.310

1559.258

2] Unsecured Loans

834.481

658.209

807.734

TOTAL BORROWING

1518.332

2138.519

2366.992

DEFERRED TAX LIABILITIES

0.000

31.472

41.254

 

 

 

 

TOTAL

6462.057

4620.126

4156.027

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

1016.189

946.000

916.196

Capital work-in-progress

0.899

24.770

3.003

 

 

 

 

INVESTMENT

365.585

315.585

223.276

DEFERREX TAX ASSETS

5.029

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
2094.325
1777.048
1621.750

 

Sundry Debtors
7506.892
5591.582
4253.471

 

Cash & Bank Balances
612.376
538.135
319.555

 

Other Current Assets
0.043
0.043
0.218

 

Loans & Advances
1776.589
1131.156
889.535

Total Current Assets
11990.225
9037.964
7084.529

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditors
2983.772
2603.401

1459.231

 

Other Current Liabilities
3289.093
2588.207
2186.033

 

Provisions
643.005
512.585
425.713

Total Current Liabilities
6915.870
5704.193
4070.977

Net Current Assets
5074.355
3333.771
3013.552

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

6462.057

4620.126

4156.027

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

22271.536

17640.649

13731.652

 

 

Operating Income

14.732

16.481

13.109

 

 

Other Income

28.628

57.010

50.139

 

 

TOTAL                                     (A)

22314.896

17714.140

13794.900

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Goods Traded and Material Consumed

16523.576

13149.279

10081.018

 

 

Personnel Cost

971.540

771.133

636.340

 

 

Other Expenditure

2448.013

1918.409

1595.227

 

 

Amounts Written off

64.735

37.251

0.000

 

 

Transferred to Contract Work-in-progress carried forward

(155.684)

(17.290)

0.000

 

 

Provision of Irrecoverable portion of loan given to a company

50.000

0.000

0.000

 

 

TOTAL                                     (B)

19902.180

15858.782

12312.585

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

2412.716

1855.358

1482.315

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

314.487

369.719

293.415

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2098.229

1485.639

1188.900

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

91.995

85.472

74.524

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2006.234

1400.167

1114.376

 

 

 

 

 

Less

TAX                                                                  (H)

753.500

506.718

383.109

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1252.734

893.449

731.267

 

 

 

 

 

Less

PRIOR PERIOD EXPENSES

5.483

2.141

NA

Less

PROVISION FRO TAXES IN RESPECT OF EARLIER YEAR

76.300

0.000

NA

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

217.304

178.231

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

795.000

650.000

NA

 

 

Proposed Dividend

234.178

172.858

NA

 

 

Tax on Equity Share Dividend

38.894

29.377

NA

 

BALANCE CARRIED TO THE B/S

320.183

217.304

NA

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

41.929

81.239

26.347

 

TOTAL EARNINGS

41.929

81.239

26.347

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

7.615

1.876

3.350

 

 

Stores & Spares

4.850

2.647

3.832

 

 

Capital Goods

19.545

22.942

4.352

 

 

Others

1071.825

1048.001

654.595

 

TOTAL IMPORTS

1103.835

1075.466

666.129

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

13.01

10.31

NA

 

Diluted

12.68

9.95

NA

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover (Approximately) 

 

 

27400.000

 

The above information has been parted by Mr. Vishal.

 

 

QUARTERLY RESULTS

 

PARTICULAR

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

TYPE

1st Quarter

2nd Quarter

3rd  Quarter

4th Quarter

Net Sales

4838.700

5877.800

6895.100

9795.900

Total Expenditure

4430.700

5432.100

6186.400

8778.700

PBIDT (Excl OI)

408.000

445.700

708.700

1017.200

Other Income

12.400

15.100

7.000

22.800

Operating Profit

420.400

460.800

715.700

1040.000

Interest

56.900

76.100

92.600

65.200

Exceptional Items

0.000

0.000

0.000

(50.000)

PBDT

363.500

384.700

623.100

924.800

Depreciation

23.500

23.400

26.600

34.100

Profit Before Tax

340.000

361.300

596.500

890.700

Tax

114.900

127.500

190.100

315.200

Profit After Tax

225.100

233.800

406.400

575.500

Prior Period Expenses

(0.100)

(1.400)

(0.500)

(0.900)

Net Profit

225.000

232.400

405.900

574.600

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
5.61

5.04

5.30

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
9.01

7.94

8.12

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
15.42

14.02

13.93

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.41

0.57

0.64

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
1.71

3.20

3.68

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
1.73

1.58

1.74

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The Details of Sundry Creditors:

 

Particulars

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

31.03.2008

Rs. in Millions

Sundry Creditors

 
 

 

Dues of Micro, Small & Medium Enterprises
0.939
0.150

0.250

Other than Micro, Small & Medium Enterprises
2982.833
2603.251

1458.981

Total

2983.772
2603.401

1459.231

 

HISTORY:

 

Subject is a 68 year old diversified Company with its operations in Lighting, Luminaires, Appliances, Fans and Engineering and Projects. Incorporated in 1938, subject commenced its operations as Radio Lamp Works and changed its name to the present one in 1960. 


The company has its Factories situated at Chakan, Village Vankusawade and Village Dhoksanghvi respectively. Subject has 19 branch offices, a chain of 600 distributors, 3000 authorised dealers, over 1,20,000 retail outlets and over 200 service franchises spread across the country. At present, subject has five major strategic business units comprising of home appliances, fans, lighting, luminaires and engineering and projects. Subject is in the business of manufacturing, erection and commissioning of Transmission Line Towers, Telecom Towers, Mobile Telecom Towers and Wind Energy Towers. Export of all subject's products except of its engineering and projects business unit is taken care of by group company Bajaj International Private Limited 


In 1992-93, a Memorandum of Understanding was concluded with The Black and Decker Corporation of USA for setting up a Joint Venture Company for the manufacture of Portable Electric Power Tools and Small Home Appliances in India. 


During 1994-95, subject subdivided the equity shares of Rs.100/- each in to shares of Rs.10/- each. 


Subject offered rights issues in Apr.'95 at a premium of Rs 190 per share to part-finance its project to implement a joint venture, Black and Decker Bajaj Private Limited with the Black and Decker Corporation, US, for the manufacture of power tools and houseware, and to expand the capacity of die-casting components from 25,000 pa to 40,000 pa. In 1996 subject's Matchwel unit has been awarded ISO 9002 Certification by TUV, Bayan, Germany, in respect of fans, die-castings and magneto assemblies manufactured at Matchwel unit.

 
During 1998-99, the company entered an agreement with the Black and Decker Corp, USA to purchase their 50% holding in the Black and Decker bajaj, thus making it a 100% subsidiary in 1999-2000. Subsequently, the company was renamed Bajaj Ventures Limited and subject with a view to unlock part of the investments, disposed off 50% of the shareholding in Bajaj Ventures Limited during 2001-2002, due to which the company ceased to be the subsidiary of subject. Subject had set up facilities for manufacture of highmast and other related products along with galvanizing plant at an approximate cost of Rs.450 millions. The plant located at Ranjangaon near Pune commenced its commercial production from April 2001. 


The company has introduced two models of nature switches which turn on/off depending upon the ambient lux level. The switches being automatic, willcontain the waste in use of electricity due to human errors. The Ranjangaonunit, a division of Engineering and Projects, has received the coveted ISO-9001certification and from 2002 it is actively working on ISO-14001certification. 


During December 2002 the company has executed one of the prestigious orders for illumination of eight outdoor and indoor stadiums at Hyderabad for the National Games 2002. 


During 2003-04, the company issued 43,21,440 equity shares of Rs.10/- each at a premium of Rs.15/- per share aggregating 108.036 millions as rights issue in the ratio of 1:1. The proceeds of the rights issue has been utilised for the repayment of ICDs. 


During 2005-2006, the companies production capacity of Swaged/Octagonal Poles expanded from 10,000 Nos to 19700 Nos and Lattice Mast/Transmission Line Towers/Others expanded from 22525 Nos to 24000 Nos. The companies production capacity of Products like Fans, Parts and Accessories for Magneto, Magneto Assemblies, Dies made of Steel, Power, Highmast Shafts, stood at 1000000 Nos, 25000 Nos, 300000 Nos, 24 (2.8 MW), 2275 Nos respectively.

 

Placement of Equity Shares of the Company with Qualified Institutional Buyers

 

The Company completed a private placement of shares under Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, during the second week of December, 2009. Pursuant to Members’ approval at the Extra-Ordinary General Meeting of the Company held on November 18, 2009, the Company allotted 20,48,339 Equity Shares of Rs. 10 (Rupees Ten) each at the Issue Price of Rs. 785/- (Rupees Seven Hundred Eighty Five), to various Qualified Institutional Buyers (QIBs) on December 11, 2009. This was at a slight premium over Rs. 782.44 (Rupees Seven Hundred Eighty Two and paise forty four), the floor price as determined by the formula prescribed by SEBI. In the immediate term, the money raised has been used to retire some of the short-term debts on the Company’s books. This is in line with the issue purpose mentioned in the Placement Document filed with various authorities.

 

Increase in number of shares

 

The increase in the number of shares is due to the allotment of 20,48,339 equity shares of Rs.10 each on account of allotment of shares to Qualified Institutional Buyers in accordance with Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and issue of 1,74,800 equity shares of Rs.10 each to the employees upon exercise of their stock options. These shares were included, on weighted average basis, for the computation of EPS.

 

Sub-division in face value of Equity Shares of the Company

 

By Postal Ballot, the results of which were announced on November 18, 2009, shareholders of the Company approved a sub-division of the Company’s equity shares to 5 shares of a face value of Rs. 2 for every share of a face value of Rs.10. It is expected that the lower face value of Equity Shares will bring in additional interest from retail investors and contribute towards enhancement in the liquidity in the Company’s scrip on the Stock Exchanges.

 

It may be noted that the number of shares, for the purpose of computation of Earnings Per Share (EPS), has been suitably adjusted following the sub-division of equity share of Rs. 10 each to 5 equity shares of Rs. 2 each in

January, 2010.

 

Operations:

 

Lighting

 

The turnover of lighting products viz. Lamps, Tubes, Luminaires, and Domestic fittings increased by about 9.8% at Rs.5360.000 Millions during the year from Rs.4880.000 Millions in the previous year.

 

The Luminaires BU is continuously working on developing energy-efficient consumer luminaires. It has successfully launched LED based luminaries for landscape, commercial and retail lighting applications. It has partnered with Securiton of Switzerland and Delta Controls of Canada to offer cutting edge solutions in Fire Alarms, Security systems and Integrated Building Management Systems (IBMS) to its institutional customers. The CFL (Compact Fluorescent Lamps) sales has increased significantly and crossed the Rs.1500.000 Millions mark.

 

Consumer Durables

 

The turnover of consumer durables, which include fans and small appliances, increased by over 26.6% at Rs.9570.000 Millions during the year from Rs.7560.000 Millions in the previous year. Bajaj Platini range of premium appliances have been launched successfully. The Company’s Morphy Richards brand has emerged as the fastest growing premium appliances brand with a growth of 32.9% and a CAGR of 26.0%. The Company has continued to enhance its product portfolio with new categories and models, invest in technology and quality improvement in order to gain a competitive advantage.

 

Chakan Unit

 

The production at this Unit increased during the year to 3,47,434 nos. of fans as against 3,12,035 nos. of fans in the previous year. This unit has also contributed significantly to the new product innovation initiatives and value engineering efforts.

 

Engineering and Projects

 

The E and P BU has achieved a turnover of Rs.7550.000 Millions as compared to Rs.5430.000 Millions in the previous year, registering a growth of 39.0%. The Unit produced 4,600 Highmasts and 33,255 Poles as against 3,682 and 38,078 respectively in the previous year. The Unit also manufactured 17,446 MT of transmission line towers as against 20,106 MT in the previous year. The BU’s order book position at the end of the year 2009-10 stood at Rs.7500.000 Millions.

 

Infrastructure development and the power sector continue to be the Government’s focus areas, which offer a good long term opportunity to this division to improve its growth and profitability in the future.

 

Wind Energy

 

The 2.8 MW Wind Farm at Village Vankusawade in Maharashtra generated 41,51,102 electrical units during the year (Previous Year 47,84,467 units).

 

Stock Options

 

The Remuneration and Compensation Committee of the Company has, in its meeting held on 30th April, 2009 cancelled 5,55,000 outstanding options and re-granted 4,66,385 stock options under Growth Plan to the eligible employees, at an exercise price of Rs.215.55. This revision was in consideration of the unusual meltdown of the stock market, which had resulted in a steep fall in the market price of the Company’s shares compared to the price prevalent when the stock options were granted. The revision would achieve the basic objectives of the ESOP Scheme of motivating the employees to contribute to the growth and profitability of the Company as also to attract and retain talent in the organization.

 

The Remuneration and Compensation Committee has also, in its meeting held on 28th January, 2010, granted 1,44,000 incremental stock options under Growth Plan to 69 eligible employees consisting of promotees and new joinees, at a price of Rs.866.75 per option, being the closing equity price of the Company on the National Stock Exchange of India Limited, where the trade volume was high. This is as per their eligibility under ESOP 2007 of the Company.

 

Details of the shares issued under ESOP, as also the disclosures in compliance with Clause 12 of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 are set out in the Annexure to this Report.

 

None of the management employees or Wholetime Directors has received options exceeding 5% of the value of the options issued for the year ended March, 2010. Likewise, no employee has been issued share options during the year equal to or exceeding 1% of the issued capital of the Company at the time of grant.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Overall Review

 

Subject is a 72-year-old diversified Company, with interests in Lighting, Luminaires, Appliances, Fans, and Engineering and Projects. In the financial year 2009-10, overall profitability of the Company has improved mainly due to the better sales performance of all the BU’s excluding Luminaires BU. An improved product mix, value engineering and the ability to pass on a part of the steep increase in input costs to customers, favourable forex movement and reduction in interest costs are also amongst the major reasons for the better performance of the Company.

 

The gross turnover of the Company has increased to Rs.22522.700 Millions as against Rs.17941.300 Millions last year, registering a growth of 25.5%. The industry continued to witness intense fluctuations in raw material costs, high levels of competition and consequent pressures on margins.

 

The Company, in order to negate the impact of the intense competition and to be on the path of growth, continued its focus on enhancing revenue growth through introduction of new products, expansion of the dealer and retailer network along with good brand building efforts in addition to the various other actions for effective cost control, value engineering, competitive sourcing and improving credit discipline. The market also witnessed a slowing down in construction activity and lower spends on Infrastructure / Industrial Investments.

 

However, India continues to be on a growth trajectory and the Company has positioned itself to reap the benefits of future investments in demand conditions and infrastructure expansion.

 

Business Review

 

Engineering and Projects Business Unit (EandP BU)

 

EandP BU has doubled its turnover in the last 2 years and achieved a record turnover of Rs.7550.000 Millions with a growth of 39% and a CAGR of 40% in the year. The order book of the BU as on 1st April, 2010 stood at around Rs.7500.000 Millions.

 

The TLT Division has clocked a turnover of Rs.2800.000 Millions with 62% growth, whereas Special Projects Division has clocked a turnover of Rs.2650.000 Millions with 64% growth.

 

Despite increasing levels of competition due to the entry of many new players in the Highmast and Street Lighting domain, they have been able to sell nearly 4,450 Highmasts and over 35,000 poles of different varieties during the year.

 

The Ranjangaon Unit has achieved the highest tonnage of over 35,000 MT which includes over 25,000 MT of Transmission Line Towers. This Unit was commissioned in April, 2001 and since then has made a steady progress to achieve near 90% capacity utilization.

 

The noteworthy achievements for the EandP BU for the year gone by are:

 

(i) the design, development, supply, installation and commission of tallest flag post of 63 m height in Kaithal, Kurukshetra District of Haryana, hoisting largest flag of 14 x 22 m which has already entered the LIMCA Book of 2010-11;

 

(ii) the illumination of the Bandra Worli Sea Link bridge, which has become a new land mark of the city of Mumbai;

 

(iii) the order for the execution of Flood Lighting of Wankhede Stadium, Mumbai to host the World Cup Cricket finals 2011.

 

The thrust and diversification into the Rural Electrification business is also giving good results and currently they have seven projects under execution through National Electric Supply Company Limited (NESCL), National Hydro Power Corporation (NHPC) and Madhya Pradesh Poorva Kshetra Vidyut Vitran Company Limited (MPPKVVCL), Jabalpur. Once completed, Bajaj Electricals would be associated with providing electricity connections of over 8 lakh BPL households in the country.

 

The Transmission Line Division is executing EPC orders for important customers like Power Grid Corporation of India Limited (PGCIL), Damodar Valley Corporation (DVC), Gujarat Electricity Transmission Company Limited (GETCO), Andhra Pradesh Transmission Corporation (APTransco), Tamilnadu Electricity Board (TNEB), Power Koldam Transmission Company Limited (PKTCL), Maharasthra State Electricity Transmission Company Limited(MSETCL), etc.

 

The Eand P BU is working on various system improvement exercises to take on the increased competition, bring down the working capital requirements and also prepare for higher volume business which is expected from the infrastructure boom in the country.

 

Appliances BU

 

Appliances BU offers a wide range of Domestic Appliances including Water Heaters, Mixers, Food Processors, Microwave Ovens, Air Coolers, Steam and Dry Irons, Electric Kettles, Water Filters, Toasters, Rice Cookers, Oven-Toaster-Grillers, Microwave Ovens, Juicer-Mixer-Grinders, Hair Dryers, Chimneys, Gas Stoves, Hobs, Room Heaters, Home UPS etc.

 

The Appliances BU continues to be on the path of aggressive growth and has achieved a turnover of Rs.5050.000 Millions with a growth of 25% and CAGR of 26% to remain a dominant No.1 player in Small Appliances Industry, nearly double the size of its closest competitor.

 

This BU has sold nearly 5.2 million pieces in FY 2009-10, which means nearly one piece is sold in every 4 seconds (considering 12 hours a day), with 24 lacs Irons, 3.2 lacs Water Heaters, thus regaining the No. 1 position in water heaters.

 

This BU has also entered the Modern Retail Format and Corporate Sales in a big way with a dedicated team focused on this business.

 

Morphy Richards (MR) has achieved sales of Rs.730.000 Millions inspite of intense competition from international premium brands. MR brand has emerged as a fastest growing and leading brand in the premium segment of “Small Domestic Appliances” industry with a growth of 33% and CAGR of 26%. It has a strong presence in modern retail formats, CSD and in premium trade outlets.

 

Fans BU

 

The Fans BU has an attractive range of ceiling, table, pedestal, wall mounted, exhaust and fresh air fans, in various sizes and colours, manufactured in plants having ISO 9001 / 9002 quality certifications.

 

The BU has done exceedingly well by achieving a turnover of around Rs.3790.000 Millions with a growth of 28% and a CAGR of 24% - with a market share of around 16%. The BU has many successes to its credit in terms of introduction of new models, gains in market and shop shares in key counters, improved rural penetration, etc. Today, the most talked about CRM initiative in the Fan industry is the highly appreciated Bajaj Fans Privilege Club and the Bajaj Fans Star Club programs with nearly 400 dealers qualifying as members to these prestigious Clubs.

Bajaj Fans introduced Star Rated decorative Fans, New Models under the kids fan category with Bajaj-Disney Brand, besides introducing many new models. The year gone by also saw the introduction of many new models of Air-circulators and a wide range of industrial exhaust fans, Cooler-kits, Pumps and motors.

 

Bajaj fans are sold in almost 50,000 outlets across the country - of which around 18% are in rural areas and small towns with below 50,000 population. With an aggressive marketing and promotional strategy the BU is poised to take advantage of its unique position in the industry in the coming years too.

 

Chakan Unit of the Company has produced over 3,50,000 fans for the BU and has done innovative work on new product development, value engineering initiatives, quality improvement efforts, etc. during the year.

 

Luminaires BU

 

The Luminaires BU markets a comprehensive range of luminaires (light fittings) covering, commercial, industrial, flood lighting, street lighting, post-top lighting luminaires besides special luminaires for flame proof and increased safety applications. This BU is certified for ISO 9001 while the various products are manufactured in plants conforming to ISO 9002 requirements. The luminaires are offered to suit a wide variety of light sources ranging from CFL, FTL to HID lamps of various types and ratings. The BU has a Lighting Development Centre and LDMS to carry out scientific illumination layouts for various applications and a well-equipped laboratory approved by the Department of Science and Technology. At present, this BU is developing a new generation of energy saving luminaires with LEDs.

 

The Luminaries BU has achieved a turnover of Rs.2750.000 Millions with a CAGR of 9%. The entire Luminaires industry in India went through a de-growth, primarily due to the slow down in key sectors like IT, Retail, Construction and Manufacturing.

 

Also, the parliamentary elections in the beginning of 2009 -10 and the assembly elections resulted in postponement of major buying decision by the governmental undertakings.

 

The BU has signed an agreement with Ruud Lighting Inc. of USA for distributing their LED range of products in SAARC countries and also acquired rights to manufacture the Ruud Lighting ( BETA LED ) range of products in India. This will be an important part of the strategy for LED products.

 

The BU has identified “Green Building Technologies Solutions” as one of its major initiatives to promote new products such as LED, Induction Lamps, Trilux, IBMS, etc. It has conducted panel discussions in mega cities like Delhi, Mumbai and Hyderabad and got an encouraging response to its Green Buildings initiatives.

 

Photolux application design software has been developed by the BU for lighting professionals. It empowers them to make illumination designs accurately and with a speed. The BU continues to promote the premium end Trilux Luminaires. Trilux business was very successful last year with major orders from Delhi PWD for street lighting for the Common Wealth games, Volkswagen factory, TCS Chennai, etc.

 

In keeping with Company’s commitment to protect the environment, the BU has assisted its major vendors in obtaining ISO 14001 certification.

 

As a part of the strategic diversification in product lines, the BU has entered into a new business line i.e. IIBMS (Integrated Intelligent Building Management Systems). This covers HVAC Controls, Fire Alarms, Access and Security controls, managed by a BMS. The BU has tied up with two major partners i.e Securiton of Switzerland and Delta Controls of Canada to offer cutting edge BACNET Technology to its institutional customers. This venture will provide a competitive edge to the Company and the Company will now be looked upon by customers for end-to-end solutions in total energy management, lighting and controls of Buildings and facilities.

 

Lighting BU

 

The Lighting BU markets a wide range of Light Sources and Domestic Luminaires. The Light Sources include General Lighting Service (GLS) lamps, Fluorescent Tube Lights (FTL), Compact Fluorescent Lamps (CFL), special purpose lamps, etc. Keeping in line with the objective of the company to lay special emphasis on the Green, Environment – friendly technologies and products, the BU is planning a major foray in LED based products. The entry into LED portable lights is a step in that direction. A strong distribution network exists for marketing these products both in urban and rural areas.

 

The manufacturing of GLS and FTL lamps is undertaken at Hind lamps, an associate company of BEL, located in U.P. The equity investment in Starlite Lighting, a CFL manufacturer has added to the CFL marketing strength. The Starlite plant makes world class products on one of its kind Swiss ‘Falma’ machines. The roll out of the T3 CFLs is also underway on the world’s fastest GE chain which has been recently installed.

 

The Lighting BU has done well despite intense competition and rapidly changing market dynamics. It has achieved a turnover of Rs.2610.000 Millions with a growth of 26% and a CAGR of 21%. The CFL segment continues to register a strong growth due to greater adoption of energy saving lamps by individuals and the Government bodies. The CFL sales, as a product segment, have touched Rs.1500.000 Millions mark in 2009-10. The BU has bagged prestigious orders from both Government undertakings and private bodies in 2009-10 in the CFL category.

 

The BU has continued to improve its retail presence by expanding its network and reaching to over 3,00,000 outlets. The Super Distributor strategy to increase the reach in Tier III and Tier IV towns has paid good dividends and the pan-India rollover is in progress.

 

The BU’s dealer-customer relationship management program “JOSH” is being carried forward to ensure a very strong and healthy relationship with its top channel partners. The Lighting BU with its improved distribution network, wide product range, and efficient sourcing strategies is poised for improved growth in the future.

 

Financial Review

 

The Company delivered superior financial performance with improvements across key parameters and has become a company with solid fundamentals. The Company raised capital of Rs.1607.900 Millions through the QIP route in the third quarter of the financial year under reporting. The Company went from being over leveraged 5 years back, to a low debt to equity ratio of around 0.31 in the year under reporting.

 

The gross turnover and other income achieved for the year ended 31st March, 2010 was Rs.22522.700 Millions, a growth of 25.53 % over the previous year.

 

PBDIT (excluding exceptional items) increased by 32.73 % from Rs. 1855.400 Millions to Rs. 2462.700 Millions.

 

The net profit after tax at Rs.1171.000 Millions was 5.20 % as compared to 4.97 % in the previous year.

 

Interest cost was lower by 14.93 % at Rs.314.500 Millions on account repayment of debts out of QIP proceeds and interest rate reduction.

 

Profit after tax, including exceptional item, was Rs.1171.000 Millions as against Rs.891.300 Millions for the previous year, an increase of 31.38 %. Profit after tax, excluding impact of exceptional item was Rs. 1302.800 Millions, representing an increase of 45.82 %.

 

Earning Per Share (EPS) for the year was Rs.13.01.

 

The Company expects to retain its focus on Profitable Growth in the year 2010-11 also

 

Transform 2010

 

Last year, Team Bajaj had embarked on a journey called ‘CHALLENGE 2009’, a major step towards achieving a target turnover of Rs.20010.000 Millions in FY 2009-10 which has been a huge success. The Company achieved a sales turnover of Rs.22522.700 Millions with a growth of 25.5% over the previous year and a CAGR of 26.5%. The Company has chosen the theme “Transform 2010” as it’s motivating and guiding factor in the current year, to continue to remain on the growth path and to achieve superior business performance driven by continuous improvements in products and processes, widening of the product range and entering new categories and geographies. Simultaneously, there will be a strong focus on cost reduction, improving margins and reducing working capital deployment.

 

Opportunities

 

The Indian economy is likely to see an improvement in GDP growth to around 8% and a return of the feel good factor. It is expected that the government will focus more strongly on the reforms agenda and take stronger economic action aimed at spurring consumption, building infrastructure and stimulating economic growth. Rural India is expected to boom with favorable monsoon and appropriate government policy. Infrastructure sector offers a huge opportunity in both urban and rural India. The construction sector and the housing sector are showing strong signs of revival.

 

All of these developments provide a significant  opportunity to Bajaj Electricals in its consumer facing businesses as well as industrial / infrastructure facing businesses.

 

Challenges

 

The Global economy, it appears will take around 12 to 18 months to recover from its past upheavals. The developments in Europe may be a cause for future concern. The commodity prices continue to behave erratically. The export oriented industries are still on the recovery path except for IT which appears to be back on a growth path. Poor infrastructure and the pace of pushing the reforms agenda are impacting the overall economic growth. Inflation is raring its head time and again. They expect to meet these challenges with better customer relationships, focused demand generation efforts and a strong business focus by the Company.

 

Future Outlook

 

They are confident that Indian GDP growth will see an improvement to about 8%. The Indian economy being a domestic consumption led economy with a large infrastructure spends has indeed bounced back faster. The Company will continue its focus on “Transformation” through better cost management, improving margins, reducing inefficiency, improving supply chain and improving productivity so that it can continue to gain market share and improve its operating performance. The Company has a balanced business portfolio, which is both consumer centric and infrastructure oriented and spread across various seasons. The strong distribution network, a powerful brand, wide product portfolio, large service infrastructure, excellent vendor base and dedicated employees along with excellent channel partners continue to be the major areas of strength for the Company. With the successful implementation of the new Oracle ERP package the Company will further improve its processes, systems and controls. This gives them reasons to be optimistic about the future success of the Company.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

 

 

As on 31.03.2010

Rs. In Millions

Disputed Income-tax Matters

30.030

Disputed Excise Matters – Gross

6.802

- Net to tax

4.490

Disputed Sales-tax Matters – Gross

64.563

- Net to tax

42.618

Claims against the company not acknowledge– Gross

155.843

- Net to tax

102.872

Guarantees/ Letter of Comfort given on behalf of other companies

505.546

Penalty/ damages/ interests, if any due to non-fulfillment of any of the terms of works contracts

Amounts not ascertainable

Uncalled liability in respect of partly paid shares held as investments

0.720

 

 

 

 

Fixed Assets:

 

  • Goodwill
  • Freehold and Leasehold Land
  • Roads and Culverts
  • Buildings
  • Ownership Premises
  • Dies
  • Jigs and Patterns
  • Trade Marks
  • Vehicles
  • Temporary Structures
  • Furniture and Fixtures and Equipments
  • Plant and Machinery

 

AUDITED FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2011

 

    Rs. In Millions

Particulars

Quarter Ended

31.03.2011

Year Ended

31.03.2011

 

 

 

1 a) Net Sales/ Income from Operations

9793.800

27394.300

b) Other Operating Income

2.100

13.200

2. Total Income (a+b)

9795.900

27407.500

3. Expenditure

 

 

a) Increase/ Decrease in stock in trade and work in progress

(83.100)

(772.300)

b) Consumption of Raw Material

560.200

1735.700

c) Purchase of Traded goods

7167.900

19983.700

d) Employee Cost

323.800

1224.200

e)Depreciation

34.100

107.600

f) Other Expenditure

809.900

2656.600

g) Total

8812.800

24935.500

4. Profit from Operations Before Interest and Exceptional Item (2-3)

983.100

2472.000

5. Other Income

22.800

57.300

6. Profit before Interest and Exceptional Item (4+5)

1005.900

2529.300

7. Interest

65.200

290.800

8. Profit After Interest but before Exceptional Items (6-7)

940.700

2238.500

9. Provision for Irrecoverable portion Loans given to Company

50.000

50.000

10. Profit form Ordinary Activities before Tax ( 8-9)

890.700

2188.500

11. Tax Expenses- Current

303.500

755.000

                            - Deferred

2.100

(15.100)

12. Net Profit form Ordinary Activities after tax (10-11)

585.100

1448.600

13. Prior Period Adjustments

0.900

2.900

Taxes I respect of earlier years

9.600

7.800

Provision for Taxes in respect of earlier year

--

--

14. Net Profit for the period before extraordinary items (12-13)

574.600

1437.900

15. Extra-Ordinary Items (Net of tax)

0.000

0.000

16. Net Profit for the period after extraordinary items (14-15)

574.600

1437.900

17. Paid-up equity share capital (Face value of Rs. 2/-)

197.700

197.700

18. Reserve excluding Revaluation Reserve as per balance sheet

--

--

19. Earning per share before extra ordinary items for the period (Rs) (not to be annualized)

 

 

Basic

5.83

14.63

Diluted

5.74

14.40

20. Earning per share after extra ordinary items fro the period (not to be annualized)

 

 

Basic

5.83

14.63

Diluted

5.74

14.40

21. Public Shareholding

 

 

- Number of Shares

34397587

34397587

- Percentage of Shareholding

34.80

34.80

Promoters and Promoter Group Shareholding

 

 

a) Pledged/ Encumbered

 

 

No. of Shares

1250000

1250000

Percentage of Share (As a % of the total shareholding of promoter and promoter group)

1.94

1.94

Percentage of Share (as a % of the total share capital of the company)

1.26

1.26

b. Non-Encumbered

 

 

No. of Shares

63197220

63197220

Percentage of Share (As a % of the total shareholding of promoter and promoter group)

98.06

98.06

Percentage of Share (as a % of the total share capital of the company)

63.94

63.94

 

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

FOR THE QUARTER AND YEAR ENDED 31ST MARCH, 2011

 

Rs. In Millions

Particulars

Quarter  Ended

31.03.2011

(Audited)

Year Ended

31.03.2011

(Audited)

PRIMARY SEGMENT INFORMATION

 

 

1. SEGMENT REVENUE

 

 

a) Lighting

2013.300

6311.500

b) Consumer Durables

4022.000

12768.600

c) Engineering and Projects

3758.500

8314.200

d) Others

2.100

13.200

Sub- Total (a+b+c+d)

9795.900

27407.500

Less: Inter segment Revenue

0.000

0.000

Net Sales/ Income form Operations

9795.900

27407.500

 

 

 

2. SEGMENT RESULTS (PROFIT/ LOSS)

 

 

a) Lighting

160.500

323.400

b) Consumer Durables

445.900

1444.800

c) Engineering and Projects

395.900

735.700

d) Others

(1.300)

3.500

Sub- Total (a+b+c+d)

1001.000

2507.400

Less:

 

 

a) Interest

65.200

290.800

b) Other Un-Allocable Expenditure net of unallocable income

45.100

28.100

Operating Profit Before Tax

890.700

2188.500

 

 

 

3. CAPITAL EMPLOYED

 

 

a) Lighting

747.400

747.400

b) Consumer Durables

677.400

677.400

c) Engineering and Projects

5080.400

5080.400

d) Others

51.300

51.300

e) Other Unllocable

719.300

719.300

Total (a+b+c+d)

7275.800

7275.800

 

 

Notes:

 

1. Disclosure of asses and liabilities as per clause 41(i) (ea) of the listing agreement for the year ended 31st March 2011

 

Rs. In Millions

Particulars

As on 31.03.2011

(Audited)

SOURCES OF FUNDS

 

1. Shareholders’ Funds

 

a) Share Capital

197.700

b) Stock Option Outstanding

0.200

c) Reserve and Surplus

5913.200

Total

6111.100

2. Loan Funds

1164.700

Total

7275.800

 

 

APPLICATION OF FUNDS

 

1. Fixed Assets

1532.800

2. Investments

365.800

3. Deferred Tax

20.100

4. Current Assets, Loans and Advances

 

a) Inventories

2946.400

b) Sundry Debtors

10653.700

c) Cash and Bank Balances

481.300

d) Other Current Assets

0.100

e) Loans and Advances

1667.600

Total

15749.100

 

 

Less: Current Liabilities and Provisions

 

a) Liabilities

9661.300

b) Provisions

730.700

Total

10392.000

 

 

Net Current Assets

5357.100

Total

7275.800

 

  1. The Company has identified its business segments as its primary reportable segment, which comprise of Lighting, consumers Durables, Engineering and Projects and others, ‘Lighting” includes Lamps, Tubes, Luminaries, ‘consumer Durables’ includes Appliances and Fans, Engineering and Projects’ includes Transmission Line Towers, Telecommunications Towers, Highmasts, Poles and Special projects including Rural Electrification Projects and ‘Other includes wind energy.

 

  1. The company considering the revised draft rehabilitation scheme filed by Hind Lamps Limited with BIFR, has made an additional provision of Rs.50.000 million during the year against the loans advanced.

 

  1. The figures of the previous year/ period have been regrouped wherever necessary.

 

  1. Status on Investment complaints for the quarter: Opening Balance- Nil, New-2, Disposals-2, Unresolved – Nil/

 

  1. The board of directors ha recommended a dividend of 140% for the year ended 31st March, 2011, the equity shares subject to approval of the shareholder in the ensuing annual general meetings.

 

  1. The above results have been reviewed by the Audit Committee and approved by the Board of Directors of the company at their meeting held on 23.05.2011.

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                              None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.03

UK Pound

1

Rs.74.43

Euro

1

Rs.64.75

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

8

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

9

--LIQUIDITY

1~10

9

--LEVERAGE

1~10

8

--RESERVES

1~10

9

--CREDIT LINES

1~10

8

--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

 

75

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.