Business information
report
1. Summary Information
|
Reference
# |
135-102626-04-020(20110523040) |
Country |
India |
|
Company Name |
TITAN INDUSTRIES LIMITED |
Principal Name 1 |
Mr. Rajeev Ranjan |
|
Status |
Very Good |
Principal Name 2 |
Mr. M.F. Farooqui |
|
Our Reference # |
142956 |
Registration # |
18-1456 |
|
Street Address |
3, SIPCOT Industrial Complex, Hosur – 635 126, Tamilnadu |
||
|
Established Date |
26.07.1984 |
SIC Code |
-- |
|
Telephone# |
91-4344-664199 |
Business Style 1 |
Manufacturers and Sellers of Watches, Jewellery Pieces,
Table Clocks, etc. |
|
Fax # |
91-4344-276037 |
Business Style 2 |
|
|
Homepage |
Product Name 1 |
Watches |
|
|
# of employees |
4353 (Approximately) |
Product Name 2 |
Clocks |
|
Paid up capital |
Rs. 443,893,080 |
Product Name 3 |
Jewellery |
|
Shareholders |
Central Government / State Government(s) 27.88% |
Banking |
Canara Bank |
|
Public Limited Corp. |
-- |
Business Period |
27 years |
|
IPO |
-- |
International Ins. |
- |
|
Public |
-- |
Rating |
A (69) |
|
Related
Company |
|||
|
Relation - Subsidiaries |
Country
|
Company
Name |
Titan Time
Products Limited |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,633,814,000 |
Current Liabilities |
12,843,307,000 |
|
Inventories |
13,403,315,000 |
Long-term Liabilities |
727,904,000 |
|
Fixed Assets |
2,626,308,000 |
Other Liabilities |
47,549,000 |
|
Deferred Assets |
0 |
Total Liabilities |
13,618,760,000 |
|
Invest& other Assets |
199,156,000 |
Retained Earnings |
6,799,940,000 |
|
|
20,862,593,000 |
Net Worth |
7,243,833,000 |
|
Total Assets |
|
Total Liab. & Equity |
20,862,593,000 |
|
Total Assets (Previous Year) |
17,794,011,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
46,744,217,000 |
Net Profit |
2,503,236,000 |
|
Sales(Previous yr) |
38,033,757,000 |
Net Profit(Prev.yr) |
1,589,635,000 |
MIRA
INFORM REPORT
|
Report Date : |
26.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
TITAN INDUSTRIES LIMITED |
|
|
|
|
Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635 126, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
26.07.1984 |
|
|
|
|
Com. Reg. No.: |
18-1456 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.443.893
millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74999TZ1984PLC001456 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHET08980G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACT5131A |
|
|
|
|
Legal Form : |
Public Limited Liability Company Company’s Shares Are Listed On The
Stock Exchange |
|
|
|
|
Line of Business : |
Manufacturers and Sellers of Watches, Jewellery Pieces, Table
Clocks, etc. |
|
|
|
|
No. of Employees
: |
4353 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 28975000 |
|
|
|
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be good. Fundamentals are strong
and healthy. Payments are reported to be regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION DECLINED BY
|
Name : |
Mr. Shekhar / Mr. Govindnand |
|
Designation : |
Accounts Department/ Accounts Department |
LOCATIONS
|
Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635 126, |
|
Tel. No.: |
91-4344-664199 |
|
Fax No.: |
91-4344-276037 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Golden Enclave, Tower A, |
|
Tel. No.: |
91-80-66609000/ 66609027 |
|
Fax No.: |
91-80-25269923/ 25263001 |
|
E-Mail : |
|
|
|
|
|
Watch Plant 1 : |
Plot Nos.3, 4 and 5, SIPCOT Industrial Complex, Hosur – 635 126, |
|
|
|
|
Watch Plant 2 : |
Mohabewala Industrial Area, Dehradun - 248002, (i) Unit 1 - Khasra No. 148D, 173B, 176A and 176B (ii) Unit 2 - Khasra No. 148B, 149B |
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|
|
|
Watch Plant 3 : |
Plot No.59, EPIP, Jharmajary Phase I, Solen District, Baddi-173205 |
|
|
|
|
Watch Plant 4 : |
Plot No. C1, C2, C3, Khasra No. 37, Village Bantakheri, Tehsil - Roorkee,
District - Haridwar, Uttaranchal, India
|
|
|
|
|
Watch Plant 5 : |
Plot No. 10B,
Khasra Nos. 150, 151, 152, 153 Sector 2, Integrated Industrial Estate,
SIDCUL, Pant Nagar 263 153, Udham Singh Nagar District, Uttarkhand, India |
|
|
|
|
Precision Engineering Plants 1 : |
No.15 B, Bommasandra Industrial Area, Hosur Road, Anekal Taluk,
Bangalore - 562158, Karnataka, India |
|
|
|
|
Precision Engineering Plants 2 : |
Plot Nos. 27 and 28, SIPCOT Industrial Area, Hosur - 635 126, |
|
|
|
|
Jewellery and Clock Plants 1 : |
29, SIPCOT Industrial Complex, Hosur - 635126, |
|
|
|
|
Jewellery and Clock Plants 2 : |
Khasra No. 238, Kuanwala Dehradun - 248 001, |
|
|
|
|
Prescription Eyewear
Lens Laboratory : |
Plot No. 27, Survey No.125, KIADB Industrial Area, Chikaballapur - 562
101 Karnataka, |
|
|
|
|
Regional Office
: |
Located at: ·
·
Kolkata ·
Mumbai ·
|
|
|
|
|
Overseas Branch Office : |
Unit No. 11 and 12, 20/F, Metro Loft No.38, Kwai Hei Street, Kwai
Chung N T, Hong Kong |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Rajeev Ranjan |
|
Designation : |
Chairman (from 29.01.2010) |
|
|
|
|
Name : |
Mr. M.F. Farooqui |
|
Designation : |
Chairman (up to 29.01.2010) |
|
|
|
|
Name : |
Mr. Bhaskar Bhat |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Sunil Paliwal |
|
Designation : |
Director (from 29.01.2010) |
|
|
|
|
Name : |
Ms. Anita Praveen |
|
Designation : |
Director (up to 29.01.2010) |
|
|
|
|
Name : |
Mr. V. Parthasarathy |
|
Designation : |
Director (from 20.10.2008) |
|
|
|
|
Name : |
Mr. Ishaat Hussain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N.N. Tata |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T.K. Balaji |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C.G. Krishnadas Nair |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Nihal Kaviratne,CBE |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Vinita Bali |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Hema Ravichandar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. Poornalingam |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
A.R. Rajaram |
|
Designation : |
Head - Legal and Company Secretary |
|
|
|
|
Name : |
Mr. Shekhar |
|
Designation : |
Accounts Department |
|
|
|
|
Name : |
Mr. Govindnand |
|
Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2011
|
Category of
Shareholder |
Total No. of
Shares |
% of total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
12,373,836 |
27.88 |
|
|
11,369,567 |
25.61 |
|
|
23,743,403 |
53.49 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
23,743,403 |
53.49 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
3,674,765 |
8.28 |
|
|
3,336 |
0.01 |
|
|
481,217 |
1.08 |
|
|
4,319,076 |
9.73 |
|
|
8,478,394 |
19.10 |
|
|
|
|
|
|
1,292,059 |
2.91 |
|
|
|
|
|
|
5,522,688 |
12.44 |
|
|
5,335,217 |
12.02 |
|
|
17,547 |
0.04 |
|
|
17,097 |
0.04 |
|
|
450 |
- |
|
|
12,167,511 |
27.41 |
|
Total Public shareholding (B) |
20,645,905 |
46.51 |
|
Total (A)+(B) |
44,389,308 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
44,389,308 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Sellers of Watches, Jewellery Pieces,
Table Clocks, etc. |
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Products : |
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GENERAL INFORMATION
|
Suppliers : |
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No. of Employees : |
4353 (out of which
2630 were in the factories, 800 in retail, about 578 in sales and marketing
while the rest 345 were in support functions.) (Approximately) |
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Bankers : |
|
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|
|||||||||||||||||||||||||||||||||
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Facilities : |
1. The 6.75%
debentures are redeemable at par at the end of five years from the dates of
allotment on May 12, 2006 and June 09, 2006 and are secured by way of legal mortgage
on the immovable properties and plant and machinery situated at Hosur. 2. The term
loans from banks shown under secured loans include: a) Loan of Rs.
Nil (2009: Rs.333.233 millions) secured by a first charge by way of
hypothecation of movable assets (save and except current assets) and secured
by way of an equitable mortgage of immovable properties of the Company, both
present and future. b) Foreign
currency loan of Rs.199.644 millions (2009: Rs.253.700 millions) secured by a
first charge over the Company’s present and future fixed (movable and
immovable) assets.
|
|
|
|
|
Banking
Relations : |
Fair |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
|
|
|
|
|
Promoters : |
|
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80000000 |
Equity Shares |
Rs.10/- each |
Rs.800.000 millions |
|
4000000 |
Redeemable Cumulative Preference Shares |
Rs.100/- each |
Rs.400.000 millions |
|
|
Total |
|
Rs.1200.000
millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
44389308 |
Equity Shares |
Rs.10/- each |
Rs.443.893
millions |
|
|
|
|
|
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 |
443.893 |
443.893 |
443.893 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
6799.940 |
5068.542 |
3917.762 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7243.833 |
5512.435 |
4361.655 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
727.904 |
1167.551 |
1881.135 |
|
|
2] Unsecured Loans |
0.000 |
586.500 |
693.750 |
|
|
TOTAL BORROWING |
727.904 |
1754.051 |
2574.885 |
|
|
DEFERRED TAX LIABILITIES |
47.549 |
181.780 |
247.117 |
|
|
|
|
|
|
|
|
TOTAL |
8019.286 |
7448.266 |
7183.657 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2626.308 |
2744.785 |
2724.609 |
|
|
Advances on capital account and Capital work-in-progress, at cost |
122.867 |
195.249 |
99.913 |
|
|
|
|
|
|
|
|
INVESTMENT |
76.289 |
76.644 |
473.922 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
13403.315
|
12026.917
|
10210.905 |
|
|
Sundry Debtors |
936.076
|
1062.216
|
964.531 |
|
|
Cash & Bank Balances |
1867.184
|
546.910
|
519.130 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1830.554
|
1141.290
|
991.683 |
|
Total
Current Assets |
18037.129
|
14777.333
|
12686.249 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
7221.721 |
|
8019.038 |
|
|
Other Current Liabilities |
4274.176
|
2444.233
|
|
|
|
Provisions |
1347.410
|
934.447
|
781.998 |
|
Total
Current Liabilities |
12843.307
|
10345.745
|
8801.036 |
|
|
Net Current Assets |
5193.822
|
4431.588
|
3885.213 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8019.286 |
7448.266 |
7183.657 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales Income |
46744.217 |
38033.757 |
29937.451 |
|
|
|
Other Income |
118.585 |
52.605 |
17.726 |
|
|
|
TOTAL (A) |
46862.802 |
38086.362 |
29955.177 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operating and Other Expenses |
42794.643 |
35068.855 |
27433.469 |
|
|
|
TOTAL (B) |
42794.643 |
35068.855 |
27433.469 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4068.159 |
3017.507 |
2521.708 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
254.188 |
294.339 |
201.399 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3813.971 |
2723.168 |
2320.309 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
600.801 |
417.606 |
297.277 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
3213.170 |
2305.562 |
2023.032 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
709.934 |
715.927 |
440.163 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
2503.236 |
1589.635 |
1582.869 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2110.253 |
2185.451 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to debenture redemption reserve |
52.800 |
52.800 |
NA |
|
|
|
Proposed dividend on equity shares |
665.840 |
443.893 |
NA |
|
|
|
Tax on dividends |
110.588 |
75.440 |
NA |
|
|
|
Transfer to general reserve |
1055.100 |
1092.700 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
2729.161 |
2110.253 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on FOB basis |
1006.130 |
1301.121 |
1383.855 |
|
|
|
Interest |
0.000 |
0.000 |
37.082 |
|
|
|
Others |
9.376 |
24.490 |
3.036 |
|
|
TOTAL EARNINGS |
1015.506 |
1325.611 |
1423.973 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials & Components |
19816.351 |
10881.183 |
11203.117 |
|
|
|
Stores & Spares |
88.794 |
104.670 |
66.824 |
|
|
|
Capital Goods |
115.685 |
77.093 |
148.822 |
|
|
TOTAL IMPORTS |
20020.830 |
11062.946 |
11418.763 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
56.39 |
35.81 |
33.85 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
|
Net Sales |
12528.300 |
15360.600 |
19548.100 |
17779.400 |
|
Total Expenditure |
11415.000 |
13624.100 |
17596.000 |
16717.700 |
|
PBIDT (Excl OI) |
1113.300 |
1736.500 |
1952.100 |
1061.700 |
|
Other Income |
80.200 |
80.600 |
152.600 |
239.900 |
|
Operating Profit |
1193.500 |
1817.100 |
2104.700 |
1301.600 |
|
Interest |
25.300 |
23.800 |
20.300 |
12.700 |
|
PBDT |
1168.200 |
1793.300 |
2084.400 |
1258.900 |
|
Depreciation |
81.900 |
85.900 |
85.700 |
91.300 |
|
Profit Before Tax |
1086.300 |
1707.400 |
1998.700 |
1197.600 |
|
Tax |
273.500 |
429.700 |
623.000 |
359.600 |
|
Profit After Tax |
812.800 |
1277.700 |
1375.700 |
838.000 |
|
Net Profit |
812.800 |
1277.700 |
1375.700 |
838.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
5.34
|
4.17
|
5.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.87
|
6.06
|
6.76 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
15.55
|
13.16
|
13.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.44
|
0.42
|
0.46 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.87
|
2.20
|
2.61 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.40
|
1.43
|
1.44 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
As a result of joint venture between the Tata Group and Tamil
Nadu Industrial Development Corporation, the Subject was born in the year 1984
and commenced its business in the year 1986. Started as a watch company,
Subject' main focus has been to increase the breadth and depth of its portfolio
of product offerings. The company has four main business units, such as
Watches, Jewellery, Eyewear and Precision Engineered Components. International
labels such as Tommy Hilfiger and Hugo Boss are now a part of its basket; along
with Fastrack a brand targeting youth and the mid-range brand Sonata. It has
manufacturing and assembly operations at Hosur, Dehradun, Roorkee and Baddi in
Himachal Pradesh and an ECB plant in
FINANCIAL RESULTS:
In its silver
jubilee year, Subject has come out with a sterling performance. Sales income
for the year 2009-10 was Rs.47031.200 millions, crossing the billion dollar
(US) figure and registering a growth of 22.2% over last year sales of
Rs.38477.200 millions. The year started on a sombre note against the backdrop
of a slowdown worldwide but the recovery of the Indian economy and strategic
steps taken by Subject have helped register a historic performance.
Profit before tax
for the Company grew by 39.4% to Rs.3213.200 millions, while net profit grew by
57.5% over last year to Rs.2503.200 millions.
Both Watches and
Jewellery segments benefited from a good wedding season in the first quarter of
2009-10. Retail sales were extremely good for watches post October 2009.
Tanishq ran a successful promotion the ‘Queen of Diamonds’ and the new Eyewear
business had an extremely impactful activation in the first half of the year
and a very successful advertising campaign in the last quarter of the year.
The Jewellery
segment sales grew by 26.8% to Rs.35041.900 millions and the Watch segment
sales grew by 13% to Rs.10267.800 millions. Sales of others including Eyewear
and Precision Engineering rose by 11.4% to Rs.1517.600 millions.
The year witnessed
expansion of the Company’s retail network with a net addition of 52 stores
(81,267sq.ft.) across Watches, Jewellery and Eyewear businesses. As on 31st
March 2010, the Company has a total of 539 stores, with over 6,85,000 sq. ft of
retail space, delivering a retail turnover of Rs.44000.000 millions.
To support the
increase in sales growth, the Company has established one more assembly unit on
29th March 2010, at an excise duty free zone in
International
Operations
The Company
achieved an export turnover of Rs.1010.000 millions during the year. Exports
include sale of watches and precision engineered components.
The international
markets for watches presented a mixed picture, with markets such as
Finance
During the year,
the Company raised a total of Rs.104.300 millions from commercial banks.
Borrowings of Rs.1104.700 millions were repaid during the year. The Company
incurred Rs.441.600 millions as capital expenditure in respect of refurbishment
and expansion programmes at manufacturing facilities and retail outlets and in
IT Hardware systems.
The Company’s
continued effort at conserving cash and containing capital employed has enabled
the company to reduce its borrowings by more than Rs.1000.000 millions and
generate net cash inflow of Rs.2320.000 millions.
During the year,
the Company’s long term debt rating was upgraded from AA- Stable (pronounced as
AA minus) to AA Stable. This indicates high degree of safety.
The Indian economy
however started showing revival during the later half of the year. Due to
Inflationary pressures, Reserve Bank of
As on 31st March
2010, there were no fixed deposits held by the Company from the public,
shareholders and employees other than unclaimed deposits amounting to Rs.0.800
million.
An amount of
Rs.52.800 millions has been transferred to the debenture redemption reserve in
accordance with statutory requirements and the terms of Rights Issue.
As amount of
Rs.1055.100 millions has been transferred to the general reserve.
During the year,
the Company made payments aggregating to Rs.4566.500 millions by way of
central, state and local taxes and duties as against Rs.3882.300 millions in
the previous year.
Amortization of
Trademarks
During the year,
the Company reviewed the expected pattern of economic benefits from the use of
trademarks. Consequent to such review, a further amount of Rs.240.400 millions
has been amortized.
Change in the
method of valuation of inventory
Consequent to the
adoption of hedge accounting of gold, for a more accurate reflection of the
operational performance and appropriate presentation of the financial
statements, the Company has adopted First-in-First-Out (FIFO) method of
valuation of gold from April 1, 2009 as against weighted average method adopted
upto March 31, 2009. This change has resulted in a higher profit before taxes
of Rs.134.100 millions during the year ended March 31, 2010.
Subsidiaries
As part of the
proposal to reduce the number of subsidiary companies, the Board of Directors
of the Company have approved the amalgamation of Tanishq (
Titan Mechatronics
Limited ceased to be a subsidiary of the Company on 30th March 2010 consequent
to the Company divesting its entire shareholding in the subsidiary.
As at 31st March 2010,
the Company has the following subsidiaries:
1) Titan
TimeProducts Limited,
2) Tanishq (
3) Titan
Properties Limited, Hosur
The performance highlights of these subsidiary companies for FY 2009-10
are as under:
Titan TimeProducts
Limited sold 6.27 million (2008-09: 6.85 million) Electronic Circuit Boards in
2009-10 registered a turnover of Rs.146.159 millions (2008-09: Rs.159.138
millions) and a net profit of Rs.3.443 millions (2008-09: Rs.8.068 millions).
Tanishq (
None of these companies has declared a dividend.
Outlook for
2010-11
The year 2009-10
started on a rather cautious note against the backdrop of the global economic
meltdown. However, during the later half of 2009-10, Indian economy showed a
turn around with a double digit industrial growth and enhanced consumer
confidence.
The Watch business
will continue to pursue profitable growth through investment in brands,
sensible expansion of retail net work, making Titan a premium brand, product
innovation and new product collections and other initiatives in Manufacturing
and Sourcing.
The watch business
will also continue to drive profitable growth in existing Asian markets, focus
on marketing investments in
The Jewellery
business will continue its growth path through various initiatives, including
launching of new collections, setting up large format stores, increasing share
of studded jewellery and achieving design leadership.
The Precision
Engineering Division of the Company, which was significantly impacted in
2009-10 due to the global melt down and the slow down of the Indian
manufacturing sector, will continue to build technical expertise comparable to
leading international players, develop industry specific capabilities, focus on
developing quality vendors, besides seeking opportunities for moving up the
value chain.
The Company’s
fledgling Eyewear business will pursue its focus on enhancing its market share
through several initiatives, including expansion of its retail net work,
introduction of technologically superior lens products, build awarenenss /brand
appeal through mass media, and by creating a differentiated and consistent
service ambience across all stores.
Overall, the year
2010-11 will be a year where the Company would drive for strong and profitable growth
in all its Indian consumer businesses, retain focus on elimination of wasteful
costs, and skillfully navigate the international businesses which will continue
to pose challenges due to sluggish demand in some of the geographies.
Awards and
Recognition
Subject received
the Award for the Most Admired Timewear Brand of the Year in 2009. And to
follow was, the Most Admired Jewellery Brand of the Year. Titan has won for the
ninth consecutive year and Tanishq has won for the seventh consecutive year.
While honouring
Subject’ sustainable advantages, Indian Fashion Award (IFA) presented the
Company with a special award to acknowledge its uncontested leadership in the
Timewear and Jewellery categories.
MANAGEMENT DISCUSSION AND ANALYSIS
For the country,
the year 2009-10, was indeed a challenging one, following the impact of the
global financial crisis on the developing world. This was most significantly
felt actually during the second half of 2008-09, with the growth rate hovering
around the 6 to 6.5 percent range. The pundits had forecasted that this trend
would persist for a longer period and the delayed and sub-normal monsoon, added
to the general atmosphere of uncertainty. There was considerable concern
however on the double digit food inflation (17.9% in January 2010) and the
simultaneous inflation in fuel, power and lubricants, which was above the 10%
range. Nevertheless, in spite of these adverse factors, India surprised the
world by its remarkable recovery, not only in terms of its overall growth rate,
but significantly in terms of its fundamental indicators which were blinking
positive and this cemented the belief and confidence in India’s sustainable
progress.
The Company had
adopted the maxim of ‘cautious optimism’, with a company-wide effort at
reducing costs, redeploying manpower, conserving cash and containing capital
employed.
The outlook for
the Indian economy looks promising in the future, with several indicators
turning to positive during the last 6 months. Agriculture is on priority and is
expected to return to the projected path soon. The fundamentals of the economy
are steadily improving and the projected growth rate stands at 8.5%. The
optimists in fact predict that the economy can breach the 9% mark in 2010-2011
moving to a double digit growth in 4 years time, well on its way to be amongst
the fastest growing economies of the world.
Business Overview
In its silver
jubilee year, Subject indeed came up with a sterling performance, in spite of a
backdrop of a challenging economic scenario. The recovery of the Indian economy
in the second half of the year is well reflected by their best ever
performance, attributed to initiatives both of revenue growth and cost
reduction undertaken by the Company. Income grew by 22% from Rs.38480.000
millions last year to Rs.47030.000 millions this year while Net Profit grew by
57% from Rs.1589.600 millions last year to Rs.2503.200 millions this year.
Watches
Global trends in
the Watches Industry
During 2009,
global production of watches was estimated at 865 million timepieces, a
significant decline of 20% compared to the previous year. This decline was led
by sharply lower demand in several recession-hit markets, including
The premium and
luxury end of the global watches market witnessed a steep decline during 2009,
with export sales of the Swiss watch industry, which is central to this
segment, declining by 22% during the year after achieving a record high during
2008. The Japanese watches industry, also amongst the largest in the world,
declined by more than 15%. However, the first few months of 2010 appear to be
more upbeat, and the global watches industry is therefore forecasting a far
better outlook for the current calendar year.
The Swatch group,
the global market leader in wrist watches, performed relatively better than the
overall global market, with sales declining by only 8.1% during 2009. This
compares with a growth of 4.3% achieved by the group during 2008.
The Indian watches
market
During 2009, the Indian
watches market grew by an estimated 6% to a total size of 46 million watches.
This is similar to the growth achieved during 2008, but lower than the
historical five-year average growth rate of 8%.
During 2009, the
Company managed to further increase its market share in multi-brand watch
outlets (as measured by M/s Francis Kanoi Research) by 1.5% in terms of value,
notwithstanding competition from over 60 global brands.
Market leadership
and growth was achieved through a well crafted portfolio of distinctive brands
which cater to virtually all large consumer segments – Titan which is their
flagship brand, Titan Raga for women, Titan Zoop for school-going children,
Fastrack for college-going youth, Sonata for the economy market and Xylys,
their unique Swiss-made offering, at the premium end of the market. Their
strong nationwide reach, retail presence, distribution and service network,
manufacturing and design capability is unmatched in the country, adding further
to their appeal, access and strength. Their vision of being world-class,
innovative, contemporary and building
Based on these
strong pillars, the watches business of the Company achieved a record profit
before taxes of Rs.1390.000 millions and a robust ROCE of 49 % during 2009-10,
notwithstanding challenging market and economic conditions. The watches
business won the coveted “Sustained Excellence Award” of the Tata Group during
2009, which reflects a very high level of excellence across all areas of the
business.
Key milestones and
areas of focus
Their watches are
now sold in
Their flagship
brand Titan launched several new collections of watches during the year, to stimulate
consumer demand and drive multiple watch ownership. These included Titan Raga
Flora, Titan Purple and a new collection of the iconic Titan Edge. The year
also marked Titan’s entry into the automatic watches segment, which is likely
to grow significantly in future years. Titan Zoop, a new sub-brand for
children, was rolled out across the country.
Sonata, their
economy brand, continued to remain
This market
segment is currently dominated by the unorganized sector, and therefore
represents a large growth opportunity for the future.
Fastrack, their
youth brand, also launched several new and innovative lines of watches and
sunglasses, such as the Bikers’ Collection. During the year, Fastrack also
began a successful foray into the youth accessories market, with the national
launch of bags, belts, wallets and wristbands. To showcase and retail the
entire range of Fastrack products, a number of exclusive Fastrack stores were
opened during the year.
At the premium end
of the watches market, the Company also piloted a new retail store format, called
“Helios”, which aims to develop retail space for the rapidly growing premium
and luxury watches market in
Their “World of
Titan” retail store network, grew to 291 stores by March 2010. Similarly, their
“Titan Watch Care Centres”, which offer service to millions of consumers who
own and use their watches, increased their presence to 225 locations. They now
offer their consumers authorized service facilities in over 768 points
nationwide. They also continued to forge strong partnerships with modern
departmental stores such as Shoppers’ Stop, Pantaloons, Central, Lifestyle,
Westside and Reliance Retail, which are changing the shopping paradigm in
Their
international business witnessed a mixed year, with some markets such as
Manufacturing,
Sourcing, Technology and Design
During the year, a
new assembly unit was opened in Pant Nagar (
The Design Studio
and watch manufacturing worked with Foley Designs, a design firm and Bharat Electronics
Limited (BEL) to produce the baton for the Commonwealth Games (picture on the
cover page of this annual report) which was handed over to President of India,
Her Excellency Smt. Pratibha Devisingh Patil by the Queen Elizabeth II to mark
the commencement of the journey of the baton through all the Commonwealth
countries.
“Titan Experience
Zone” was created by the Design Studio to showcase the Watch Division’s
capabilities and achievements in an interesting and high tech manner at the
Company’s store in Hosur.
Jewellery
The international
investment demand for gold, especially Exchange Traded Funds (ETFs), kept the
dollar price of gold rising throughout most of 2009-10. This factor, combined
with a steadily depreciating rupee, kept the rupee price of gold at very high
levels. On average, the rupee price of gold was around Rs 1474/gram for 22k,
which was more than 20% as compared to 2008-09 levels.
The high gold rate
during the current year along with its volatility seems to have been
internalized by the customers. Post the subdued first and second quarters of
2009-10, they have witnessed a significant growth in volumes in the following
two quarters.
The surge in
volume growth in the last two quarters of 2009-10 has led the Tanishq brand to
post a double digit growth in volumes for the FY 09-10.
Sales and
Marketing
Tanishq
outperformed the industry, which grew only by 5-10% in value terms, whereas
Tanishq retail sales clocked a 38% value growth. The Industry witnessed a
decline in tonnage sales of Gold by 15%, where as Tanishq grew in volumes by
11%. Similarly, the Diamond Jewellery market growth for the industry was around
20% where as Tanishq grew by 47%.
The Tanishq
Boutique Retail Chain saw the addition of only 1 store, which was the first of
its Large Format Store strategy set for the Brand. This store spans across
20,000 sq.ft on
These collections
were extremely well received by their customers and clearly added great value
and sheen to the Brand and made it stronger. The “Queen of Diamond” contest, a
Tanishq marketing initiative was a great success during the Diwali season,
leading to a 40% growth over same period of 2008-09.
The two key
Tanishq relationship programs, “The Golden Harvest Scheme” (GHS) and Anuttara,
saw a surge in the enrollment base. The GHS, an installment based Jewellery
buying initiative, saw record enrollments leading to 15% of its retail sale
coming from the GHS. The new enrollments of 09-10 are expected to increase the
sales contribution of GHS to 25% of 2010-11 retail sales. The Anuttara loyalty
program saw the member base rise to over 4, 50,000 members during the year.
Gold Plus, the
mass market Jewellery brand of the Company, grew by 22% over the previous
financial year. Gold Plus focused more on consolidating in the existing
markets, and hence did not expand its network. Gold Plus closed one of its
stores in Bheemavaram in view of its low market potential and presently has 29
stores in 29 towns. The customer base of Gold Plus crossed the 3 lakh mark and
the unique loyalty program, Ananta has about 80 K members. Gold Plus launched
several successful collections like the 3 D Peacock collection and the Maya
collection. Gold Plus also bagged 4 international awards (MAA Global and MAA
Asia Pacific) for its unique campaign of the World’s largest Bangle. The
Company’s third jewellery brand, Zoya has two stores which cater to high end
consumers looking for exclusive designs and retail environment.
Integrated Supply
Chain
The Integrated
Supply Chain Management (ISCM) operations accepted the challenge of the higher
sales requirement. With little incremental investment, all requirements of
alignment, cost and quality were met as per the planned targets, thanks to the
support of their able and committed vendor base.
On the back of
such a good operational performance and coupled with tight controls on retail
and factory overheads, the domestic operations turned in a profit before tax of
Rs.2510.000 millions, which is so far the best ever. Return on capital was in
excess of 90% and the cash flow from operations was in excess of Rs.1900.000
millions.
Their first-mover
advantage in this industry remains unchallenged. The entry of other corporate
players into jewellery began with much fanfare, but has not lived up to the
initial hype. Obviously it takes years to acquire the assets and competencies
that they have with us: their brands, network and business partners on the
asset side, and their design, merchandising and marketing, manufacturing,
vendor management and supply chain, and retail operations and customer
management on the capability side.
Gold prices
crossed the $1200/Tr.oz level in December 2009, mainly due to higher investment
demand globally, amidst depressed economic scenarios in the
Eyewear
The eyewear
Industry saw heightened activity in 2009-10. Numerous new stores were setup,
there was enhanced media activity and a slew of promotions were seen.
Subject focused on
consolidating its eyewear business, enhancing profitability and building brand
awareness and appeal. It has expanded its retail chain to 82 stores and is
present in 41 towns as on March 2010. Brand awareness has significantly improved
and consumers today recognize Titan Eye+ a preferred destination for eyewear.
The brand will continue to innovate and meet the latent needs of the middle and
upper middle Indian consumer.
The eyewear
industry continues to be largely unorganized with few national/regional optical
chains. Competitive activity has increased and larger players are beginning to
intensify their efforts to grow the market. It is estimated that this industry
is currently growing at over 15% per annum.
With the threat of
an economic downturn receding, increased market activity and greater awareness
and exposure to international eyewear trends, it is expected that this industry
will grow at a faster pace over the next 3-5 years.
Titan Eye+ has
envisioned a lead role for itself in redefining the eyewear industry in
CONTINGENT
LIABILITIES NOT PROVIDED FOR (AS ON 31.03.2010)
Contingent
liabilities not provided for - Rs.535.117 millions comprising of the following:
·
Sales Tax - Rs.30.730 millions (relating to the
applicability of rate of tax, computation of tax liability, submission of
certain statutory forms)
·
Customs Duty - Rs.31.694 millions relating to
compliance with the terms of notification, export obligations)
·
Excise Duty - Rs.339.779 millions relating to
denial of exemption by amending the earlier notification, computation of the
assessable value, denial of input credit on service tax)
·
Income Tax - Rs.123.860 millions (relating to disallowance of deductions
claimed)
·
Others - Rs.9.054 millions (relating to
miscellaneous claims)
FIXED ASSETS:
- Land –
Freehold
- Land –
Leasehold
- Plant,
Machinery and Equipment
- Furniture,
Fixtures and Equipment
- Vehicles
- Intangible
Assets – Trade Marks
AUDITED FINANCIAL RESULTS FOR
THE PERIOD ENDED 31.03.2011
(Rs. in millions)
|
PARTICULARS |
Year Ended |
|
31.03.2011 |
|
|
(Audited) |
|
|
|
|
|
Sales / Income from
operations |
65708.600 |
|
Less : Excise Duty |
499.700 |
|
Net sales / Income from operations |
65208.900 |
|
Other operating income |
7.500 |
|
|
|
|
Expenditure |
|
|
Decrease / (increase) in stock in trade and work in
progress |
(5002.800) |
|
Consumption of raw materials |
44546.600 |
|
Purchase of traded goods |
8495.800 |
|
Employee cost |
3929.600 |
|
Advertising |
3032.700 |
|
Depreciation / Amortisation |
344.800 |
|
Other expenditure |
4350.900 |
|
Total expenditure |
59697.600 |
|
|
|
|
Profit from
operations before other income and interest |
5518.800 |
|
Other income |
553.300 |
|
Profit before interest |
6072.100 |
|
Interest |
82.100 |
|
Profit before taxes |
5990.000 |
|
Income taxes - Current |
1686.000 |
|
- Deferred |
(32.400) |
|
Profit after taxes |
4336.400 |
|
Less: Income tax of earlier years |
32.200 |
|
Net Profit |
4304.200 |
|
Paid-up equity share capital (face value: Rs.10 per share) |
443.900 |
|
Paid-up Debt Capital (6.75% non convertible debentures of
RS. 250 each) |
528.300 |
|
Reserves excluding revaluation reserves |
9809.900 |
|
Debenture Redemption Reserves |
259.700 |
|
Basic and diluted earnings per equity share (Rs.) (Not
Annualised) |
96.96 |
|
Promoters and
Promoter group shareholding |
|
|
a) Pledged / Encumbered |
|
|
- Number of shares |
-- |
|
- % of shares (as a % of the total shareholding of the
group) |
-- |
|
- % of shares (as a % of the total share capital of the
Company) |
-- |
|
b) Non-encumbered |
|
|
- Number of shares |
23743403 |
|
- % of shares (as a % of the total shareholding of the
group) |
100.00% |
|
- % of shares (as a % of the total share capital of the
Company) |
53.5% |
WEBSITE DETAILS:
COMPANY PROFILE
Subject is the organization that brought about a paradigm
shift in the Indian watch market when it introduced its futuristic quartz
technology, complemented by international styling. With
The success story began in 1984 with a joint venture between the Tata Group and the Tamil Nadu Industrial Development Corporation. Presenting Titan quartz watches that sported an international look, Subject transformed the Indian watch market. After Sonata, a value brand of functionally styled watches at affordable prices, Subject reached out to the youth segment with Fastrack, its third brand, trendy and chic. The company has sold 100 million watches world over and manufactures 12 million watches every year.
With a license for premium fashion watches of global brands, Subject repeated its pioneering act and brought international brands into Indian market. Tommy Hilfiger and Hugo Boss, as well as the Swiss made watch – Xylys owe their presence in Indian market to Subject.
Entering the largely fragmented Indian jewellery market with
no known brands in 1995, Subject launched
Subject has leveraged its manufacturing competencies and branched into precision engineering components and subassemblies, machine building and automation solutions, tooling solutions and electronic sub-assemblies in 2002. Subject has also made its foray into prescription eyewear, launching the Titan Eye+ chain of world class optical stores in 2007.
With over 500 retail stores across a carpet area of 6,60,000
sq. ft, Subject has emerged as
Backed by over 4,300 employees, two exclusive design studios for watches and jewellery, over five manufacturing units, and innumerable admirers world over, Subject continues to grow and sets new standards for innovation and quality. The organization is all geared to repeat the Titan and Tanishq success story with each new offering
AWARDS AND ACCOLADES
Over the years, Subject has received several prestigious awards and distinctions. Some of the recent and most noteworthy recognitions are:
• Subject received the Award for the Most Admired Timewear Brand of the Year in 2009 for the ninth successive year for Titan, and the Most Admired Jewellery Brand of the Year for the seventh consecutive year for Tanishq.
• Goldplus bags 2 dragons and 2 certificate of merits at the Promotion marketing awards of Asia 2009.
• Jewellery Division was declared the winner of the “GOLD AWARD" in FMCG sector in the GreenTech Environment Excellence Award 2009.
• Jewellery Division wins first prize in “Innovation in Supply Chain Management” organized by Indian Institute of Material Management for the second consecutive year and ranked amongst the top five amongst 50 global entries at Europen Business School, Weisbaden Germany .
• Titan brand won the “Most Valuable Brand in the State” award at the IIPM and The Sunday Times STATE EXCELLENCE AWARD.
• Both Titan and Sonata feature in the Top 100 Brands-2009 in the Annual Survey conducted by Economic Times. While Titan is ranked at Number 4, Sonata increase their rank to 86. Titan is ranked number 1 in the consumer durables category.
• Jewellery Division of Subject won the Eight Annual Madras Management Association award on Managerial Excellence for Manufacturing sector.
• Subject bagged 24th position across all industry
categories and 1st position in the Retail Industry category in the Economic
Times –
PRESS RELEASES:
TITAN INDUSTRIES
ANNOUNCES RESULTS BEYOND EXPECTATIONS OF ALL- ANNOUNCES BONUS ISSUE OF EQUITY
SHARES
Titan Industries Limited is living its dreams .The Company came up with an outstanding performance for 2010-11 beating expectations of all market gurus. Sales income for the year 2010-11 was Rs.65708.6 millions registering a growth of 39.7% over last year. Titan Industries pursued aggressive growth during 2010-11 in all its business, protecting and wherever possible enhancing profit margins resulting in a very attractive return on capital. At the same time the Company invested in strategic initiatives taking into account long term and sustainable growth. All these backed by the talent and commitment of employees and business associates have helped Titan Industries record a historic performance.
Profit before tax for the Company grew by 86.4 % to Rs. 5990 millions, while net profit grew by 71.9% over last year to Rs.4304.2 millions.
The dynamism of Indian economy and positive consumer sentiment reflected in consistent double digit sales growth, month after month across all retail formats of watches, jewellery and eyewear.
The Watches business of the Company recorded an income of Rs.12664.6 millions, a healthy growth of 23.3% and enhanced its market share by 1.8% to 45.1%. This was achieved through excellent planning and execution of key initiatives. The income from Jewellery segment grew by 43.5%, crossing the Rs.50000 millions mark to Rs.50272.3 millions, contributing to 76% of the Company’s topline. The profit, before interest and taxes, from the jewellery segment was Rs.4291 millions for the year. The Eyewear business expanded rapidly during the year and touched the mark of 150 stores, of Titan Eye Plus, across 48 towns. A host of innovative collections of frames and special lenses, targeting different consumer segments were successfully launched. The B2B business of Precision Engineering also performed much better than the previous year as the Aerospace, Automobile and Automation industries showed signs of recovery from the impact of global economic crisis.
The year witnessed aggressive expansion of its retail network with a net addition of over 122 stores by Watches, Jewellery and Eyewear businesses. As on 31st March 2011, the Company had over 665 stores, with over 810,000 sq.ft of retail space delivering a retail turnover in excess of Rs.61500 millions.
Mr. Bhaskar Bhat, Managing Director of the Company stated that “It has been a remarkable year for Titan Industries Limited in terms of setting new standards. In fact, the Company has moved on to a new platform of performance as well as future expectations. Given the high expectations of all our stakeholders and aspirations of our employees, we move confidently into the new financial year.”
After considering the excellent performance of the Company, the directors have recommended a dividend of 250%
The Board of Directors have further approved issue of bonus shares in the ratio of 1 (one) equity share for every 1 (one) existing equity share held.
The Board has also approved the sub-division of the equity share of the Company of a face value of Rs.10 each into 10 (ten) equity shares of Rs. 1 (one) each.
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.45.38 |
|
|
1 |
Rs.73.31 |
|
Euro |
1 |
Rs.63.70 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
|
69 |
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.