MIRA
INFORM REPORT
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Report Date : |
19.03.2011 |
IDENTIFICATION DETAILS
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Name : |
BAJAJ ELECTRICALS LIMITED |
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Registered Office : |
45 – 47, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
14.07.1938 |
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Com. Reg. No.: |
L31500MH1938PLC009887 |
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CIN No.: [Company
Identification No.] |
11-9887 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMB01798G PNEB03717A PNEB03465A PNEB02841G |
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PAN No.: [Permanent
Account No.] |
AAACB2484Q AAACB2484R |
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Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer,
Exporter and Importer of Lighting, Appliances and Fans. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (75) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 19000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a 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
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
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Name : |
Mr. Purendare |
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Designation : |
Senior GM – Accounts |
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Contact No. : |
91-22-23765003 |
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Date : |
17.03.2011 |
LOCATIONS
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Registered Office
: |
45 – 47, |
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Tel. No.: |
91 – 22 –
22823090 / 22043841 / 22045046 / 23765003 |
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Fax No.: |
91 – 22 – 22828250 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Head Office : |
51, |
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Tel. No.: |
91-22-22043780 /
22875135 / 22043733 |
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Fax No.: |
91-22-22828250 |
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Corporate
Office 1 : |
45 – 47, |
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Tel. No.: |
91 – 22 – 204
3842 / 204 3843 / 204 3841 / 204 5341 / 204 5046 |
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Fax No.: |
91 – 22 – 2851279 |
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E-Mail : |
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Website : |
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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 |
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Plant 1: |
Chakan
Unit Mahalunge, |
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Plant 2: |
Wind
farm Village Vankusawade,
Taluka Patan, District Satara - 415 206, |
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Plant 3: |
Ranjangaon
unit Village
Dhoksanghvi, Taluka Shirur, Ranjangaon, District Pune - 412 210, |
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Plant 4 : |
Matchwel
Unit Off |
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Depots : |
Located at: ·
·
Dehradun ·
·
Zirakhpur ·
·
·
Jalandhar ·
·
Roorkee ·
Bhiwandi ·
Kundli ·
Parwanoo |
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Showroom : |
‘World of Bajaj Electricals’
Bajaj Bhavan, Nariman Point, Mumbai – 400 021, |
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Tel. No.: |
91-22-20236626 |
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Branches : |
Located at: ·
Ahmedabad ·
·
Bhubaneshwar ·
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Chennai ·
·
·
Guwahati ·
·
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Jaipur ·
Kolkata ·
·
Mumbai ·
·
Noida ·
·
Pune ·
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DIRECTORS
|
Name : |
Mr. Shekhar Bajaj |
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Designation : |
Chairman and
Managing Director |
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Date of
Birth/Age : |
54 years |
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Qualification
: |
B.Sc. (Hons.),
M.B.A. |
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Experience : |
32 years |
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Date of
Appointment : |
01.04.1980 |
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Name : |
Mr. Harsh Vardhan
Goenka |
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Designation : |
Director |
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Name : |
Mr. A. K. Jalan |
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Designation : |
Director |
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Name : |
Mr. Ajit
Gulabchand |
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Designation : |
Director |
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Name : |
Mr. M. R. Pai |
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Designation : |
Director |
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Name : |
Mr. V. B.
Haribhakti |
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Designation : |
Director |
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Name : |
Mr. Madhur Bajaj |
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Designation : |
Director |
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Name : |
Mr. S. C. Batra |
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Designation : |
Director |
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Name : |
Mr. Dakshesh B.
Dhruv |
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Designation : |
Director |
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Name : |
Mr. Anant Bajaj |
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Designation : |
Executive
Director |
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Name : |
Mr. R.
Ramakrishnan |
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Designation : |
Executive
Director |
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Name : |
Dr. Indu Shahani |
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Designation : |
Director |
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Name : |
Dr. R P Singh |
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Designation : |
Director |
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Name : |
Mr. Anant Bajaj |
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Designation : |
Executive
Director |
KEY EXECUTIVES
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Name : |
Mr. Mangesh Patil |
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Designation : |
Company Secretary |
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Name : |
Mr. L. K. Mehta |
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Designation : |
President Engineering and Projects BU |
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Name : |
Mr. P. S. Tandon |
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Designation : |
President Appliances BU |
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Name : |
Mr. A. S. Radhakrishna |
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Designation : |
Executive Vice President and Head – Fans BU |
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Name : |
Mr. Pravin Jathar |
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Designation : |
Executive Vice President and CFO |
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Name : |
Mr. Vivek Sharma |
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Designation : |
Vice President and Business Head (Morphy Richards) |
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Name : |
Mr. Prataprao S. Gharge |
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Designation : |
Vice President and CIO |
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Name : |
Mr. R. Ramesh |
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Designation : |
Vice President - Human Resources and Administration |
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Name : |
Mr. Siddhartha Kanodia |
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Designation : |
Vice President – Corporate Services |
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Name : |
Mr. C. G. S.Mani |
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Designation : |
Executive Vice President and Head -Lighting BU |
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Name : |
Mr. Gulshan Aghi |
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Designation : |
Executive Vice President and Head Luminaires BU |
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Name : |
Mr. B M Mane |
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Designation : |
Deputy General Manager (Chakan Unit) |
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Name : |
Mr. J K Deshmukh |
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Designation : |
Chief General Manager Operations and Head – RU (Ranjangaon Unit) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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20,666,905 |
20.91 |
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43,460,670 |
43.97 |
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64,127,575 |
64.88 |
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Total shareholding of Promoter and Promoter Group (A) |
64,127,575 |
64.88 |
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(B) Public Shareholding |
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10,679,447 |
10.80 |
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931,352 |
0.94 |
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8,245,262 |
8.34 |
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19,856,061 |
20.09 |
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2,199,500 |
2.23 |
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9,366,065 |
9.48 |
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2,497,754 |
2.53 |
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797,852 |
0.81 |
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123,038 |
0.12 |
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506,483 |
0.51 |
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168,173 |
0.17 |
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14,861,171 |
15.03 |
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Total Public shareholding (B) |
34,717,232 |
35.12 |
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Total (A)+(B) |
98,844,807 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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Total (A)+(B)+(C) |
98,844,807 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter
and Importer of Lighting, Appliances and Fans. |
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Products: |
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Exports : |
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Products : |
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Countries : |
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Imports : |
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Products : |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit |
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Purchasing : |
L/C, Cash, Credit |
PRODUCTION STATUS as on 31.03.2010
Class of goods
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Unit
|
Licensed Capacity
|
* Installed Capacity
|
Actual
Production |
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Fans |
Nos. |
1000000 |
800000 |
347434 |
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Parts and
Accessories of Fans |
Nos. |
50000 |
--- |
-- |
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Magneto
assemblies |
Nos. |
500000 |
300000 |
-- |
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Parts and
Accessories for Magneto |
Nos. |
25000 |
25000 |
-- |
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Electric Motors |
Nos. |
25000 |
-- |
-- |
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Parts and Accessories for electric motors |
Nos. |
5000 |
-- |
-- |
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Dies made of
Steel |
Nos. |
90 |
24 |
-- |
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Power Generated |
|
-- |
2.8 MW |
4151102 KWH |
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Highmast Shafts
** |
Nos. |
-- |
4000 |
4600 |
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Swaged /
Octagonal Poles ** |
Nos. |
-- |
56000 |
33255 |
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Lattice Mast / |
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
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No. of
Employees : |
2000 (In office +
in factory + in branches) |
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Customers : |
Dealer |
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Bankers : |
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Banking Relations : |
Good |
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Auditors : |
Dalal and Shah Chartered
Accountants |
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Memberships: |
Confederation of Indian Industry |
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Associates : |
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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 |
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Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
97544495 |
Equity Shares |
Rs. 2/- each |
Rs.195.089
millions |
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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]
Expected Sales (2010-2011) : Rs. 27500.000 Millions
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
195.089 |
172.858 |
172.858 |
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2] Stock option outstanding |
1.620 |
28.443 |
13.151 |
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3] Reserves & Surplus |
4747.016 |
2248.834 |
1561.772 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4943.725 |
2450.135 |
1747.781 |
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LOAN FUNDS |
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1] Secured Loans |
683.851 |
1480.310 |
1559.258 |
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2] Unsecured Loans |
834.481 |
658.209 |
807.734 |
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TOTAL BORROWING |
1518.332 |
2138.519 |
2366.992 |
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DEFERRED TAX LIABILITIES |
0.000 |
3147.200 |
41.254 |
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TOTAL |
6462.057 |
4620.126 |
4156.027 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1016.189 |
946.000 |
916.196 |
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Capital work-in-progress |
0.899 |
24.770 |
3.003 |
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INVESTMENT |
365.585 |
315.585 |
223.276 |
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DEFERREX TAX ASSETS |
5.029 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
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Inventories |
2094.325
|
1777.048
|
1621.750
|
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Sundry Debtors |
7506.892
|
5591.582
|
4253.471
|
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Cash & Bank Balances |
612.376
|
538.135
|
319.555
|
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Other Current Assets |
0.043
|
0.043
|
0.218
|
|
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Loans & Advances |
1776.589
|
1131.156
|
889.535
|
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Total
Current Assets |
11990.225
|
9037.964
|
7084.529
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2983.772
|
2603.401
|
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|
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Other Current Liabilities |
3289.093
|
2588.207
|
|
|
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Provisions |
643.005
|
512.585
|
425.713
|
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Total
Current Liabilities |
6915.870
|
5704.193
|
4070.977
|
|
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Net Current Assets |
5074.355
|
3333.771
|
3013.552
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
6462.057 |
4620.126 |
4156.027 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
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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 |
-- |
|
|
Less |
PROVISION FRO
TAXES IN RESPECT OF EARLIER YEAR |
76.300 |
0.000 |
-- |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
217.304 |
178.231 |
-- |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
795.000 |
650.000 |
-- |
|
|
|
Proposed Dividend |
234.178 |
172.858 |
-- |
|
|
|
Tax on Equity Share Dividend |
38.894 |
29.377 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
320.183 |
217.304 |
-- |
|
|
|
|
|
|
|
|
|
|
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 |
-- |
|
|
|
Diluted |
12.68 |
9.95 |
-- |
|
QUARTERLY RESULTS
(UNAUDITED)
|
PARTICULARS |
30.06.2010 (Rs. In
Millions) |
30.09.2010 (Rs. In
Millions) |
31.12.2010 (Rs. In
Millions) |
|
|
1st
Quarter |
2nd
Quarter |
3rd Quarter |
|
Net Sales |
4838.700 |
5877.800 |
6895.100 |
|
Total Expenditure |
4430.700 |
5432.100 |
6186.400 |
|
PBIDT (Excl OI) |
408.000 |
445.700 |
708.700 |
|
Other Income |
12.400 |
15.100 |
7.000 |
|
Operating Profit |
420.400 |
460.800 |
715.700 |
|
Interest |
56.900 |
76.100 |
92.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
363.500 |
384.700 |
623.100 |
|
Depreciation |
23.500 |
23.400 |
26.600 |
|
Profit Before Tax |
340.000 |
361.300 |
596.500 |
|
Tax |
114.900 |
127.500 |
190.100 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
225.100 |
233.800 |
406.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
(0.100) |
(1.400) |
(0.500) |
|
Other Adjustment |
0.000 |
0.000 |
0.000 |
|
Net Profit |
225.000 |
232.400 |
405.900 |
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:
Rs. In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
2983.772
|
2603.401
|
NA |
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
In 1992-93, a Memorandum of Understanding was concluded with The Black and
Decker Corporation of
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,
During 1998-99, the company entered an agreement with the Black and Decker
Corp,
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
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
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,
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
records 2010-11;
(ii) the illumination of the Bandra Worli Sea Link bridge, which has
become a new land mark of the city of
(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),
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
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
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
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
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
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 |
|
|
|
APPLIANCES
- Irons
- Toasters
- OTGs
- Electric
Kettles
- Coolest
- Room Heaters
- Storage Water
Heaters
- Instant Water
Heaters
- Immersion
Heaters
- Microwave
Ovens
- Mixers
- Food
Processor
- Emergency
Light
- Coffee Maker
- DVD Players
The
company is in trade terms with:
· Prakash Corrugated
· KSP Electricals Private Limited
· Jaysri Industries
· Decpro Paints
· Pramuk Stampings Private Limited
·
· Spotwell Engineering Works Private Limited
·
· Gild Packaging
· Shree Plastics
Fixed
Assets:
- Goodwill
- Freehold
and
- Roads and Culverts
- Buildings
- Ownership Premises
- Dies
- Jigs and Patterns
- Trade Marks
- Vehicles
- Temporary Structures
- Furniture and Fixtures and Equipments
- Plant and Machinery
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED HALF YEAR ENDED 30TH
SEPTEMBER, 2010
(Rs. In Millions)
|
Particulars |
Quarter
Ended 30.09.2010 (Unaudited) |
Half year Ended 30.09.2010 (Unaudited) |
|
1 a) Net Sales/ Income from Operations |
5871.700 |
10708.600 |
|
b) Other Operating Income |
6.100 |
7.900 |
|
2. Total
Income (a+b) |
5877.800 |
10716.500 |
|
3. Expenditure |
|
|
|
a) Increase/ Decrease in stock in trade and work in progress |
[329.100] |
[814.600] |
|
b) Consumption of Raw Material |
444.800 |
800.500 |
|
c) Purchase of Traded goods |
4328.000 |
8157.100 |
|
d) Employee Cost |
375.300 |
613.900 |
|
e)Depreciation |
23.400 |
46.900 |
|
f) Other Expenditure |
618.100 |
1105.900 |
|
g) Total |
5455.500 |
9909.700 |
|
4. Profit from Operations Before Interest and Exceptional Item (2-3) |
422.300 |
806.800 |
|
5. Other Income |
18.100 |
27.500 |
|
6. Profit before Interest and Exceptional Item (4+5) |
437.400 |
834.300 |
|
7. Interest |
76.100 |
133.000 |
|
8. Profit After Interest but before Exceptional Items (6-7) |
861.300 |
701.300 |
|
9. Provision for Immovable portion Loans given to Company |
-- |
-- |
|
10. Profit form Ordinary Activities before Tax ( 8-9) |
861.300 |
701.300 |
|
11. Tax Expenses- Current |
130.000 |
255.000 |
|
- Deferred |
[2.500] |
[12.600] |
|
12. Net Profit form Ordinary Activities after tax (10-11) |
233.800 |
458.900 |
|
13. Prior Period Adjustments |
1.400 |
1.500 |
|
Provision for Taxes in respect of earlier year |
-- |
-- |
|
14. Net Profit for the period before extraordinary items (12-13) |
232.400 |
457.400 |
|
15. Extra-Ordinary Items (Net of tax) |
-- |
-- |
|
16. Net Profit for the period after extraordinary items (14-15) |
232.400 |
467.400 |
|
17. Paid-up equity share capital (Face value of Rs. 2/-) |
196.400 |
196.400 |
|
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 |
2.36 |
4.67 |
|
Diluted |
2.34 |
4.61 |
|
|
|
|
|
20. Earning per share after extra ordinary items fro the period (not to
be annualized) |
|
|
|
|
|
|
|
Basic |
2.36 |
4.67 |
|
Diluted |
2.34 |
4.61 |
|
|
|
|
|
21. Public Shareholding |
|
|
|
- Number of Shares |
34087720 |
34087720 |
|
- Percentage of Shareholding |
34.72 |
34.72 |
|
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) |
1.95 |
1.95 |
|
Percentage of Share (as a % of the total share capital of the company) |
1.27 |
1.27 |
|
b. Non-Encumbered |
|
|
|
No. of Shares |
62842775 |
62842775 |
|
Percentage of Share (As a % of the total shareholding of promoter and
promoter group) |
98.05 |
98.05 |
|
Percentage of Share (as a % of the total share capital of the company) |
64.01 |
64.01 |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL
EMPLOYED
FOR THE QUARTER AND HALF YEAR ENDED 30TH
SEPTEMBER
(Rs. In Millions)
|
Particulars |
Quarter
Ended 30.09.2010 (Unaudited) |
Half year Ended 30.09.2010 (Unaudited) |
|
PRIMARY
SEGMENT INFORMATION |
|
|
|
1. SEGMENT
REVENUE |
|
|
|
a) Lighting |
1513.6000 |
2613.400 |
|
b) Consumer Durables |
2797.700 |
5427.400 |
|
c) Engineering and Projects |
1560.400 |
2667.800 |
|
d) Others |
6.100 |
7.900 |
|
Sub- Total
(a+b+c+d) |
5877.800 |
10716.500 |
|
Less: Inter segment Revenue |
-- |
-- |
|
Net Sales/
Income form Operations |
5877.800 |
10716.500 |
|
2. SEGMENT
RESULTS (PROFIT/ LOSS) |
|
|
|
a) Lighting |
67.500 |
89.400 |
|
b) Consumer Durables |
317.400 |
568.200 |
|
c) Engineering and Projects |
48.000 |
161.500 |
|
d) Others |
3.600 |
3.500 |
|
Sub- Total
(a+b+c+d) |
436.500 |
822.600 |
|
Less: |
|
|
|
a) Interest |
76.100 |
133.000 |
|
b) Other Un-Allocable Expenditure net of unallocable income |
[0.900] |
[11.700] |
|
Operating
Profit Before Tax |
361.300 |
701.300 |
|
3. CAPITAL
EMPLOYED |
|
|
|
a) Lighting |
947.300 |
947.300 |
|
b) Consumer Durables |
1044.000 |
1044.000 |
|
c) Engineering and Projects |
5064.500 |
5064.500 |
|
d) Others |
51.200 |
51.200 |
|
e) Other Unllocable |
1182.700 |
1182.700 |
|
Total
(a+b+c+d) |
8289.700 |
8289.700 |
Notes:
1. Disclosure of asses and liabilities as per clause 41(i) (ea) of the
listing agreement for the half year ended 30th September 2010
(Rs. In Millions)
|
Particulars |
Half year Ended 30th
September, 2010 (Unaudited) |
|
SOURCES OF
FUNDS |
|
|
1. Shareholders’ Funds |
|
|
a) Share Capital |
196.400 |
|
b) Stock Option Outstanding |
0.700 |
|
c) Reserve and Surplus |
5228.100 |
|
|
5425.200 |
|
2. Loan Funds |
2864.500 |
|
3. Deferred Tax |
-- |
|
Total |
8289.700 |
|
APPLICATION OF
FUNDS |
|
|
1. Fixed Assets |
1011.300 |
|
2. Investments |
365.600 |
|
3. Deferred Tax |
17.600 |
|
4. Current Assets, Loans and Advances |
|
|
a) Inventories |
2827.000 |
|
b) Sundry Debtors |
7531.300 |
|
c) Cash and Bank Balances |
500.500 |
|
d) Other Current Assets |
0.100 |
|
e) Loans and Advances |
2629.700 |
|
|
13488.600 |
|
Less: Current Liabilities and Provisions |
|
|
a) Liabilities |
6169.700 |
|
b) Provisions |
423.700 |
|
|
6593.400 |
|
Net Current
Assets |
6895.200 |
|
Total |
8289.700 |
2. 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, Tubes, Liminaires, ‘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.
3. The figures of the previous year/ period have been regrouped wherever
necessary.
4. Status on Investment complaints for the quarter: Opening Balance- Nil,
New-6, Disposals-6, Unresolved – Nil/
5. 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
27.10.2010 and subjected to a “Limited review” by the Statutory auditors. 7
WEBSITE DETAILS:
HISTORY:
The ' Bajaj ' group of
Jamnalal Bajaj was the founding father of the Bajaj Group. The adopted
‘fifth’ son of Mahatma Gandhi, and the 'merchant prince' who held the wealth he
created in trust for the people of his country. Trust - a simple word that
contains a whole philosophy handed down by Jamnalal Bajaj to his successors. He
valued honesty over profit, actions over words and common good over individual
gain.
Kamalnayan Bajaj, elder son of Jamnalal Bajaj, followed footsteps of his
illustrious father and consolidated the bajaj foundation. With characteristic
foresight and pragmatic vision, he launched a steady diversification programme
which gave the current name "Bajaj" both its shape and size. His
unique management style created a work culture that matched well with the
national spirit he had inherited.
Ramkrishna Bajaj took over the reins of the "Bajaj group" in
1972 after Kamalnayan Bajaj and steered the Group from strength to strength for
over 22 years. He had also actively participated in the freedom struggle of the
country. In post independent
Shekhar Bajaj, Chairman and Managing Director of Subject, started his
career with Bajaj Sevashram after which he worked at Bajaj International, the
group's export company. Mr. Shekhar Bajaj joined Bajaj Electricals in 1980,
became the Managing Director in 1987 and took over as the Chairman and Managing
Director in 1994
Mr. Bajaj is the Chairman of Bajaj Group companies Bajaj International
and Hercules Hoist Private Limited and on the Board of Directors of Bajaj Auto
and IDBI Bank. He was the President of ASSOCHAM, former President of Indian
Merchant Chambers (IMC) and Council for Fair Business Practices (CFBP).
Brief history of the Company
The Company was incorporated as Radio Lamp Works Limited under the
Indian Companies Act, 1913 as a public company limited by shares, pursuant to a
certificate of incorporation dated July 14, 1938. Subsequently the name of the
Company was changed to Bajaj Electricals Limited, pursuant to a fresh
certificate of incorporation dated October 1, 1960.
In 1964, Matchwell Electricals (
In the financial year 1993-1994, the Company entered into a joint
venture with Black and Decker Corporation,
In January 1998, the Company established a new manufacturing unit at
Chakan near Pune and commenced operations of manufacturing of fans and die-cast
components. The production of fans at the manufacturing activities of the
Matchwell unit also was gradually shifted to the Chakan unit.
In September 1999, the Company established and commissioned a wind
energy generation unit with an installed capacity of 2.8 mega watts at Village
Vankusawade, Tal. Patan, District Satara,
In the year 2000-2001 the Company set-up the manufacturing facilities
including a fabrication unit and a galvanizing plant at Ranjangaon, near Pune
for the manufacture of high masts, lattice towers, and related products, and
the said manufacturing facilities commenced commercial production with effect
from April 1, 2001.
In November 2002, the Company entered into a technical collaboration and
brand licensing agreement with Morphy Richards,
In the financial year 2002-2003 the Company discontinued manufacturing
die-cast components.
In the year 2005 the company entered into a Distribution agreement with
Trilux Lenze of
In the year 2007, they acquired 32% of the share capital of Starlite
Lighting Limited, a company engaged in the manufacture of Compact Fluorescent
Lamps ("CFLs").
PROFILE:
Subject is a part of the Rs.200000 millions "Bajaj Group" who are in the business of steel, sugar, two wheelers and three wheelers besides an impressive range of consumer electrical products. They are a 70 year old company with a turnover of over Rs.14040 millions aiming to be a Rs.20010 millions company in the next couple of years.
Bajaj Electricals has 19 branch offices, a chain of 600
distributors, 3000 authorised dealers, over 2,50,000 retail outlets and over
230 service franchises spread across the country. BEL today has five major
strategic business units comprising of home appliances, fans, lighting,
luminaires and engineering and projects. They are also in the business of
manufacturing, erection and commissioning of
CORPORATE:
Build Trust: They will conduct all there business dealings with fair and ethical business practices and strive to build trust in the minds of all there stakeholders.
Belief in Excellence: They believe in setting higher levels of Excellence in all there actions and will recognize and reward the excellence achieved by there team members.
Delighting Customers: They will delight there customers by providing them world-class products and services and thereby enhance their quality of life.
Ensuring Accountability: They will work in a transparent, performance oriented environment and define clear accountability for there employees, while empowering them to achieve their performance goals with speed and efficiency.
Encouraging Teamwork: They will ensure dignity and respect for the individual while encouraging Teamwork.
Personal Growth: Every employee will be enabled to learn at the work place with significant opportunities for Personal Growth and Contribution to the organization.
Trade References
- Power Grid Corporation
- Bharat AV Electricals
- National Thermal Power corporation
- Airport Authority of
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.45.09 |
|
|
1 |
Rs.72.82 |
|
Euro |
1 |
Rs.63.43 |
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 |
YES |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.