%20LIMITED%20-143044%2027-May-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
27.05.2011 |
IDENTIFICATION DETAILS
|
Name : |
REDINGTON ( |
|
|
|
|
Registered
Office : |
SPL Guindy House,
95, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
02.05.1961 |
|
|
|
|
Com. Reg. No.: |
18-28758 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
L52599TN1961PLC028758 |
|
|
|
|
CIN No.: [Company Identification
No.] |
Rs. 786.360 Millions |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHER00540B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCR0347P |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The Company’s
Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Trading, Importing
and Distributing of Computers, Computer Peripherals, Printers, Plotters and
Spares including after sales service. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
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 27000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment
Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
– established and a reputed company having fine track. Financial position of
the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered
Office/ Corporate
Office : |
SPL Guindy House,
|
|
Tel. No.: |
91-44-22353313/14/15/16/17/18/42243281/42243499/
52243535/42243353/42243352 |
|
Fax No.: |
91-44-22352790 |
|
E-Mail : |
investors@redington.co.in |
|
Website : |
|
|
|
|
|
Sales And Service
Centers: |
Located at : · Chennai · · · ·
·
· · ·
Hubli ·
· |
|
|
|
|
Branches : |
1/11, Nook Apartment, 8, Also Located At : · · · Uttar Pradesh · · Rajasthan · Uttaranchal · Orissa · · Guwahati · · Karnataka · · Mumbai · Pune · · Tamil Nadu |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. M.
Raghunandan |
|
Designation : |
Whole time Director |
|
Address : |
22, |
|
Date of Birth
: |
01.11.1947 |
|
Qualifications
: |
B. E. MBA |
|
Date of
Appointment: |
01.03.1999 |
|
|
|
|
Name : |
Mr. R.
Jayachandran |
|
Designation : |
Director |
|
Address : |
|
|
Date of Birth
: |
27.04.1944 |
|
Date of
Appointment: |
15.10.1993 |
|
|
|
|
Name : |
Mr. R. Srinivasan |
|
Designation : |
Managing Director |
|
Address : |
15 |
|
Date of Birth
: |
28.06.1946 |
|
Date of
Appointment: |
15.10.1993 |
|
|
|
|
Name : |
Mr. Huang Chi Cheng |
|
Designation : |
Director |
|
Address: |
2nd Floor, No. 9 Lane, 139 Sec |
|
Date of Birth
: |
26.03.1957 |
|
Date of
Appointment: |
30.12.2004 |
|
|
|
|
Name : |
Mr. Raj Shankar |
|
Designation : |
Deputy Managing Director |
|
Address: |
65, |
|
Date of Birth
: |
19.06.1958 |
|
Date of
Appointment: |
30.12.2004 |
|
|
|
|
Name : |
Mr. Steven A Pinto |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J Ramachandran |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. William Adamopoulos |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. Srinivasan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tu, Shu-Chyuan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. M. Muthukumarasamy |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Ramesh Natrajan |
|
Designation : |
Head – National Sales |
|
|
|
|
Name : |
Mr. S V Rao |
|
Designation : |
Head – Strategic Business Unit (Services) |
|
|
|
|
Name : |
Mr. Jitendra K Senapti |
|
Designation : |
Head – Strategic Business Unit (Peripherals And Consumer PC) |
|
|
|
|
Name : |
Mr. Anand Chakravarthy |
|
Designation : |
Head – Strategic Business Unit (Networking And Power Products ) |
|
|
|
|
Name : |
Mr. Dinesh K Gangadharan |
|
Designation : |
Head – Strategic Business
Unit (Systems) |
|
|
|
|
Name : |
Mr. P M Sethumadhavan |
|
Designation : |
Head – Strategic Business Unit (Components) |
|
|
|
|
Name : |
Mr. R Sasikanth |
|
Designation : |
Head – Strategic Business Unit (Enterprises Products) |
|
|
|
|
Name : |
Mr. Gautam Hukku |
|
Designation : |
Head – Strategic Business Unit (Software Solutions) |
|
|
|
|
Name : |
Mr. Rajesh Khetarpal |
|
Designation : |
Head – Strategic Business Unit (Digital Lifestyle Products) |
|
|
|
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As On 12.04.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
114,507,975 |
28.85 |
|
|
114,507,975 |
28.85 |
|
Total shareholding of Promoter and Promoter Group (A) |
114,507,975 |
28.85 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
14,233,694 |
3.59 |
|
|
123,475,612 |
31.11 |
|
|
137,709,306 |
34.70 |
|
|
|
|
|
|
20,464,123 |
5.16 |
|
|
|
|
|
|
7,788,209 |
1.96 |
|
|
1,606,938 |
0.40 |
|
|
114,769,319 |
28.92 |
|
|
196,724 |
0.05 |
|
|
1,826,955 |
0.46 |
|
|
110,190,940 |
27.77 |
|
|
811,709 |
0.20 |
|
|
1,650,471 |
0.42 |
|
|
52,770 |
0.01 |
|
|
39,750 |
0.01 |
|
|
144,628,589 |
36.44 |
|
Total Public shareholding (B) |
282,337,895 |
71.15 |
|
Total (A)+(B) |
396,845,870 |
100.00 |
%20LIMITED%20-143044%2027-May-2011_files/image004.gif){kind=small}
(1) Indian%20LIMITED%20-143044%2027-May-2011_files/image005.gif){kind=small}
Bodies Corporate%20LIMITED%20-143044%2027-May-2011_files/image006.gif){kind=small}
Individual shareholders holding nominal share
capital up to Rs.0.100 Million
BUSINESS DETAILS
|
Line of
Business : |
Trading,
Importing and Distributing of Computers, Computer Peripherals, Printers,
Plotters and Spares including after sales service. |
||||||||||
|
|
|
||||||||||
|
Products : |
·
Computer Peripherals ·
Services income
|
||||||||||
|
|
|
||||||||||
|
Agencies Held: |
· IBM · Intel · Avaya · HP · Epson · Compaq · Philips · Samsung · Microsoft · APC · CA · Microsoft · Kobian · Motorala |
GENERAL INFORMATION
|
No. of
Employees : |
350
(Approximately) |
|
|
|
|
Bankers : |
· Hongkong and 30, Rajaji Salai, Chennai - 600 001, Tamilnadu · Indus Ind Bank (Facility : Consolidating Limit Rs. 400 millions ·
Citi Bank NA ·
HDFC Bank Limited 751-B, Anna Salai, ·
State Bank of Commercial Branch, ·
Bank
of ·
Barclays
Bank PLC ·
BNP
Paribas ·
Deutsche
Bank AG ·
ICICI
Bank Limited ·
IDBI
Bank Limited ·
ING
Vysya Bank Limited ·
Kotak
Mahindra Bank Limited ·
Standard
Chartered Bank ·
Union
Bank of ·
Yes
Bank Limited ·
The
Royal Bank of ·
DBS
Bank Limited |
|
|
|
|
Banking Relations : |
Good |
|
|
|
|
Statutory
Auditors : |
Deloitte Haskins
and Sells Chartered
Accountants |
|
Address: |
2nd
Floor, “ |
|
Tel. No.: |
91-44-52131124-28 |
|
Fax No.: |
91-44-52131129 |
|
|
|
|
Internal Auditors: |
Pricewaterhouse Coopers Chartered Accountant |
|
|
|
|
Subsidiaries : |
· Redington ( ·
Nook Holding Private Limited
– 50000 Shares (100%) ·
Redington Gulf FZE, ·
Redington India Investment
Limited, ·
Redington
Singapore Pte Limited · Kewalram ·
Nook Holdings Limited, ·
Redington ( ·
Cadensworth ( ·
Redington International Mauritius Limited, ·
Redington International (Holdings) Limited, ·
Redington Gulf FZE, ·
Cadensworth FZE, ·
Redington Gulf and Company, LLC ·
Redington Nigeria Limited , ·
Redington Egypt Limited , ·
Redington Kenya Limited , ·
Redington Middle East LLC, ·
Redington · Redington Arabia Limited, Saudi Araba ·
Redington Africa Distribution FZE. ·
Redington ·
Redington Distribution Pte Limited , ·
Redington Bangladesh Limited, ·
Redington ·
Easyaccess Financial Services Limited, ·
Redington ·
Redington Limited, ·
Redington Uganda Limited, ·
Africa Joint Technical Services, ·
Nook Micro Distribution Limited, ·
RGF Private Trust Company Limited, ·
Cadensworth United Arab Emirates LLC, ·
Redington Morocco Limited, ·
Redington Tanzania Limited, ·
Redington SL (Private) Limited, |
|
|
|
|
Holding
Company : |
· Redington ( · Redington Pte. Limited, 1, ·
Chanrai Investment Corporation
Limited |
CAPITAL STRUCTURE
After - 20.07.2010
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
425000000 |
Equity Shares |
Rs. 2/- each |
Rs. 850.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
396330055 |
Equity Shares |
Rs. 2/- each |
Rs. 792.660 Millions |
|
|
|
|
|
As On: 31.03.2010
Authorised Capital: Rs. 850.000 Millions
Issued, Subscribed & Paid-up Capital: Rs.
786.360 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 |
786.360 |
778.657 |
778.657 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5973.415 |
5365.213 |
4916.895 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6759.775 |
6143.870 |
5695.552 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3095.549 |
1568.194 |
1175.810 |
|
|
2] Unsecured Loans |
659.680 |
1330.880 |
1346.825 |
|
|
TOTAL BORROWING |
3755.229 |
2899.074 |
2522.635 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
1.312 |
2.861 |
|
|
|
|
|
|
|
|
TOTAL |
10515.004 |
9044.256 |
8221.048 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
670.730 |
552.035 |
531.297 |
|
|
Capital work-in-progress |
13.137 |
102.803 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
4590.509 |
3209.325 |
3208.247 |
|
|
DEFERREX TAX ASSETS |
24.976 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4224.121
|
2734.457 |
3018.239 |
|
|
Sundry Debtors |
6785.545
|
6450.226 |
4287.159 |
|
|
Cash & Bank Balances |
199.637
|
559.572 |
775.923 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
770.200
|
785.556 |
641.769 |
|
Total
Current Assets |
11979.503
|
10529.811 |
8723.090 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
6254.090
|
4932.582 |
3872.178 |
|
|
Other Current Liabilities |
0.000
|
0.000 |
0.000 |
|
|
Provisions |
509.761
|
417.136 |
369.408 |
|
Total
Current Liabilities |
6763.851
|
5349.718 |
4241.586 |
|
|
Net Current Assets |
5215.652
|
5180.093 |
4481.504 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10515.004 |
9044.256 |
8221.048 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
64496.142 |
60661.565 |
57710.071 |
|
|
|
Other Income |
102.672 |
52.771 |
92.670 |
|
|
|
TOTAL (A) |
64598.814 |
60714.336 |
57802.741 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods sold |
60852.606 |
57205.489 |
54887.002 |
|
|
|
Employee Compensation Costs |
793.919 |
753.787 |
610.682 |
|
|
|
Trading Expenses |
195.493 |
174.322 |
211.482 |
|
|
|
Managerial Remuneration |
3.906 |
4.308 |
8.900 |
|
|
|
Auditor’s remuneration |
4.860 |
3.713 |
3.020 |
|
|
|
Bad Debts Written off and Provision for doubtful debts |
48.545 |
32.799 |
36.656 |
|
|
|
Other Expenditure |
683.479 |
801.244 |
562.447 |
|
|
|
TOTAL (B) |
62582.808 |
58975.662 |
56320.189 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2016.006 |
1738.674 |
1482.552 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
330.378 |
449.054 |
406.635 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1685.628 |
1289.620 |
1075.917 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
154.050 |
47.108 |
40.208 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1531.578 |
1242.512 |
1035.709 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
537.017 |
435.625 |
364.568 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
994.561 |
806.887 |
671.141 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Dividend including dividend distribution
tax relating to previous year |
2.828 |
0.000 |
|
|
|
|
Proposed dividend on equity shares including
dividend distribution tax |
459.711 |
364.398 |
|
|
|
BALANCE CARRIED
TO THE B/S |
532.022 |
442.489 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
938.400 |
|
|
|
TOTAL EARNINGS |
NA |
938.400 |
|
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
12.68 |
10.36 |
NA |
|
%20LIMITED%20-143044%2027-May-2011_files/image007.gif){kind=small}
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd Quarter |
31.03.2011 4th
Quarter |
|
Net Sales |
17565.300 |
20330.700 |
21506.600 |
23824.700 |
|
Total Expenditure |
17063.900 |
19820.600 |
20910.700 |
22996.200 |
|
PBIDT (Excluding OI) |
501.400 |
510.100 |
595.900 |
828.500 |
|
Other Income |
39.200 |
22.700 |
0.100 |
1.300 |
|
Operating Profit |
540.600 |
532.800 |
596.000 |
829.800 |
|
Interest |
82.900 |
93.000 |
116.900 |
137.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
457.700 |
439.800 |
479.100 |
692.100 |
|
Depreciation |
35.400 |
38.500 |
39.400 |
21.400 |
|
Profit Before Tax |
422.300 |
401.300 |
439.700 |
670.700 |
|
Tax |
142.900 |
128.500 |
144.800 |
233.400 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported Profit After Tax |
279.400 |
272.800 |
294.900 |
437.300 |
|
Net Profit |
279.400 |
272.800 |
294.900 |
437.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.54
|
1.39 |
1.16 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.37
|
2.05 |
1.79 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.11
|
11.21 |
11.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.20 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.56
|
1.34 |
1.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.77
|
1.97 |
2.06 |
LOCAL AGENCY FURTHER INFORMATION
History
The company was incorporated
on 02.05.1961 at Mumbai in
The Registered Office of the company was shifted from Mumbai in
Subject is an integrated supply chain solution provider. The
second largest distributor of IT products in
Subject is a leading provider of IT products, logistics management and
other services ranked 9th by DQ Top 20 issue of 2002. Subject serves
more than 5500 IT resellers in
It represents more than 15 leading global brands covering product
categories like systems, software, peripherals, components, network products,
mobile phones, etc. The company generated as sales turnover of Rs. 13500
millions ($ 285 millions) in its last financial year ended 31.03.2002.
Subject is a part of 140 years old $2 billion Transnational Kewalram
Chanrai Group headquartered at
The group has IT products and service business in
The company started its’ Indian operations in 1993 at Chennai with a
vision to become a leading distributor of world class IT products with a clear
emphasis on supply chain excellence and operational efficiency.
Subject started with distribution of HP peripherals and continued adding
newer products / brands to its portfolio, growing from 5 employees, 3 branches,
25 dealers and Rs. 90 millions sales in 1994 to 350 employees, 28 branches,
over 5500 dealers and Rs. 13500 millions in the year ended 31st
March, 2002.
The company has emerged as the industry's most efficient distribution
company. The company evolved its business from a small manual operation to a
very large technology driven operation, which provides "Best value for
money" to its customers.
The Company commenced its operations in the year 1993 by distributing
information technology products. From then on the company has continuously
expanded its operations across
Hewlett Packard honored the company as an excellent service provider' in the
year of 2000. The call centre operations of the company was started in the year
2002 for servicing Compaq's Presario range of products and ranked Best
Distributor India' for the year 2002-2003 by Computer Associates. Commenced
distribution and servicing of Motorola mobile phones during the year 2003. Once
again the company ranked as Best Distributor in
A distribution agreement was made between the company and Apple Computer
International Private Limited,
Performance
FY'10 was the 17th year of the Company's Indian
operations and in all
these 17
years the company has shown significant growth in
revenue and profit year on year. The members would be happy to
note that even in the difficult year, the growth was maintained.
The Consolidated revenue of the Company was Rs. 137786.500 Millions as
against Rs.126830.900 Millions in the previous year with a CAGR of 19% for five
years. The Consolidated net profit for the year was Rs. 1843.300 Millions as
against Rs.1596.600 Millions in the previous year with a CAGR of 25% for the last five years.
The Stand alone revenue of the
Company was Rs. 64598.800 Millions as
against Rs. 60714.400 Millions in
the previous year with a CAGR of 15% for five
years and the profit after tax was Rs. 994.600 Millions as against Rs.
806.900 Millions in the previous year
with CAGR of 36% for the last five years.
The Earnings Per Share (EPS) on consolidated basis (based
on weighted average number of shares) increased to Rs. 23.51 in
the year as compared to Rs. 20.50 in the previous year. EPS on standalone basis
has increased to Rs. 12.68 from Rs. 10.36 in the previous year.
DISTRIBUTION
BUSINESS:
INFORMATION
TECHNOLOGY PRODUCTS:
Following the global
meltdown, there was slowdown
in the
sale of IT products
until the first half of the year
. On the
back of gradual recovery of
business sentiments during the second half of the year, the sales growth picked up and enabled
the Company to show positive growth for
the full year.
The Company has adopted various strategies to maintain its overall growth objectives by
adding key vendors to its portfolio
and intensifying its focus
in tier II cities and towns setting the base for accelerated growth in the ensuing years.
The aggressive pace of both the Central and State Governments
to drive their e-governance
projects and increased budgetary
allocation for the education
and health sector
is expected to stimulate
demand for IT
products. Strong traction in
desktop sales, continued consumer
confidence and a revival in IT
spend spurred personal computer (PC) sales during the January-March 2010
quarter, recording 33%
year-on-year growth (IDC Research).
It is expected when most budget
announcements are translated into actual expenditure, it would trigger huge
demand for IT products. The Company is
poised to exploit all these opportunities to its
advantage with a clear focus on growth areas.
Tie-up with key vendors to
complement the product bouquet has always
been an important growth
strategy for the
Company and last
fiscal was significant from this point of view, with the addition of
Oracle, D-Link, LG-Nortel, RSA
Security, Iomega, Citrix,
Lifesize Communications,
NComputing, NetApp, Array Network, Ricoh and Fujitsu.
The Company's overseas subsidiaries have signed new distribution
contracts with vendors like Dell, Fujitsu and Lenovo in the Systems space
for select countries in
Middle East and Africa and also signed
new contracts with vendors
like Juniper Networks,
Check point Software,
Netgear, Coral Telecom, Ascom and
Molex in the value added distribution space.
During the financial year, the Company has added more than 2,000 channel partners in
NON-INFORMATION
TECHNOLOGY PRODUCTS:
In the NON-IT
products space, the Company
currently has presence
in Digital Lifestyle, Telecom,
Consumer Electronics and Digital
Printing industry. The Company's
decision to venture into verticals other than IT products had enabled it to
grow its revenue even during a difficult
and challenging year. Today, the
Company is a Supply Chain Solutions player for many products, though IT
products currently constitute a major share to the Company's total revenue.
Digital Lifestyle
Products:
Until previous year, the Company was distributing products like
Apple Mac Notebooks, Apple Ipods,
Microsoft Xbox gaming consoles and gaming contents.
During the year,
the Company has
added MapmyIndia's navigation
devices and Jabra's wireless telecom accessories. With the highway travel becoming
increasingly popular in the country,
MapmyIndia's navigation GPS
devices loaded with India's best maps and
satellite based voice guided navigation ensuring safe travel, would
be in high demand in future.
Telecom:
During the year, telecom products such as Blackberry
smart phone in India and inclusion of more territories for distributing
Nokia hand sets in Middle East and Africa, enabled the
Company to sustain its growth strategy.
The demand for Blackberry Smartphones has been encouraging in the year.
The Company's strong relationship with large retail store customers has enabled
it to show consistent monthly growth both in terms of units sold and sales
revenue.
The Company has recently tied up with LG electronics for distribution of
their mobile phones in the Tamilnadu market. This gives them entry into the
high growth mobile handset space.
The Company's MEA operations have obtained a new distribution contract
from Nokia for
Consumer
Electronics:
India, being a vast
market with a strong consumer base and
a growing interest in life-style
products, the Company has extended its experience in distribution of
technology products to Consumer Electronics products
as well.
The sale of Consumer Electronics products has shown an increased growth
percentage every year. When the Industry has grown by 15% during the year,
compared to previous year, the revenue from sale of consumer electronics
products to the Company has grown by 65%. This was possible with the immense
support received from the trade partners and the vendors.
Within a short
span from the start of
consumer durable business
the Company has expanded its
branch network for sale of consumer electronics products to 14 cities with a
market base of about 2,500 channel partners.
With an objective to become a one-stop shop for retailers, the Company
has entered into partnerships with
vendors like LG, Whirlpool, Godrej
etc in the Consumer Electronics space.The addition of
Godrej consumer appliances during this
year is a welcome addition in this
segment.
Digital Printing:
In early 2005,
the Company, joined hands with
HP Indigo and
started distribution and after
sales service of
Digital Printing machines. Currently the Company has about 80
HP Indigo printing machines operating
in
For short-run jobs,
Digital Printing Machines are
more cost effective compared to
conventional offset printing machines, while providing
much quicker 'turn-around-time' for such jobs.
The unique establishment
of Redington's 'HP Indigo
Digital Press Demo Centre'
and its 'Indigo Training
Facility' in Chennai demonstrates the Company's
strong commitment to its customers in the
graphic arts and digital
publishing industry in India. The
Demo centre is the fifth such centre for HP Indigo globally.
AFTER SALES
SERVICES BUSINESS:
The Company enhanced
its after sales service
support from existing warranty and post warranty support
for IT and Telecom products to pre-sale and post sale support for enterprise products.
These services include pre sale technical support, design, installations,
remote technical support and 24x7 on-site support. The Company could carve out more business
from existing customers and vendors by providing superior services and ensuring customer satisfaction. The Company extended and
strengthened its support network by adding more locations. The Company
delivers services to customers
through 48 owned service centres
(Previous Year - 43) and 220 partner
service centres (Previous Year -
211) in India. In MEA markets, the Company's subsidiaries have 20 owned service
centres (Previous Year 18) and 15 partner service centres
(Previous Year 15).
Complementing the new initiative in the distribution space, the
Company's service unit extended its support services to new telecommunication
vendors as well. Today, Blackberry
customers can avail services at 27
locations across the Country and
efforts are on to extend these services
from more locations. To provide a
new experience to the customers of Blackberry smart phones, the Company is
planning to invest in Blackberry exclusive service centres in large cities. One
such centre is already operational at Chennai during the year .
The Company's Service
Division started their
Remote Infrastructure
Management Services from
their new Network Operations
Centre (NOC) at Chennai.
Through this facility they can remotely manage services of there
corporate customers using advanced technology. The Company will extend this
support to IT as well as Telecom enterprise customers.
The Company also provides L1,L2,L3 and L4 services and offer
warranty and post warranty
repair support for Mobile
Handsets(GSM and CDMA), Fixed Wireless
Phones (FWP), Fixed Wireless Terminals (FWTs) and Personal Digital Assistant
(PDA).
The Company's strong forward and reverse logistics capabilities enable
spare parts to reach nook and corners of
The Company's overseas subsidiary in MEA has established 3 new service
centers in that region. All these service centers in the region have been
accredited ISO 9001:2008 quality rating. The subsidiary has been given 'The
Best After Sales Service Provider Award'
by Value Added Reseller (VAR), a leading
channel magazine in the
SUPPLY CHAIN SOLUTIONS:
Automated
Distribution Centre:
The first ADC in Chennai has started operations effective last
fiscal. In
Commencing operations from these network of ADCs is expected to
enhance productivity in throughput and enable tie-up for third
party logistics services.
The transition to the new automated warehousing facility at Chennai has
bee smooth with zero variance in stocks
and minimal loss of operations time.
Third Party
Logistics (3PL) Services:
The year was a challenging one for the 3PL business. Economic slow down resulted in reduced
inventories and volume for the companies in various industries with a
corresponding impact in 3PL operations. Many Corporates looked at cutting down
supply chain related cost in order to maintain margins. The cost assumed higher
importance than the quality of service and speed of delivery.
However, the Company was able to maintain an edge over competition to
retain contracts with leading brands like Cadbury, Sonicwall, Vodafone and
Kuehne + Nagel and established its presence in the market place. During the
year, the Company signed up with IFB and Girias (Large Format Retailer) for 3PL
services.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL ECONOMIC
OUTLOOK:
The impact of economic slowdown seems to be vanishing in the emerging
economies. In most advanced economies, the recovery remained sluggish by past
standards, whereas in many emerging and developing economies, it was relatively
vigorous. Global production and trade which was declining in the first half of
the year bounced back in the second half of the year. The prediction of United
Nations regarding the rise in global economic growth by 2.4% is a good
indication. If the growth of the world economies continues at this pace, it
would spur the demand.
The Global Information Technology Report 2009-10(GITR) highlighted
the key role of Information and Communication Technology
(ICT) as an enabler of a more economically, environmentally and socially sustainable
world in
the aftermath of one of the most serious economic crises in decades. It
is also stated that many countries would be successful by leveraging ICT and
taking full advantage of ICT advances to enhance overall competitiveness. GITR
has raised India's Ranking
from 54th to
43rd for its
preparedness to effectively use
ICT for different
purposes like general
business, regulatory and infrastructure environment.
INDIAN LANDSCAPE:
The impact of global crisis has been felt by the world nations
differently and at varying degree. While this clouded
In a year that witnessed
postponement in spending decisions by
consumers, the Government sector
in India provided the much-needed fillip to the IT
industry's growth. Not only did the government spending on ICT products and
solutions help the market demand, the stimulus programs from the Government
during the year facilitated shoring up demand across all industries.
IDC expects this trend to continue in 2010 as well with large
e-governance projects to be awarded and implemented in many States (provinces)
as well as by several Central (federal) government ministries. Some of the
projects on the anvil
include the Accelerated
Power Development and
Reforms Programme (APDRP), the e-District and State Data Centre (SDC)
projects and those proposed by the
Ministries of Posts, Railways and Defence. All these projects are expected to
involve huge spending on ICT solutions in 2010. The 29 State Governments across
The year 2010 would be a transitional year for IT
deployments in Indian Public
sector and Government
Departments with the focus
shifting to automation of
the back-end processes. This is largely
guided by the realization that front-end delivery
mechanisms alone is not sufficient till the
back-end infrastructure and
organisational capacities are built
to serve the common man better. The
automation/digitization is expected to give a boost to adoption of Document
Management Services (DMS) and digital
imaging technologies by government
departments. Scanning of documents, be
it for
internal archival/storage or
for the delivery
of statutory certificates to
citizens, is going to be one of the key thrust areas
in 2010.
NATURE OF
BUSINESS:
The Company along with its
subsidiaries is in the business of
end-to-end supply chain management
of IT and non-IT products in
various geographies which has high potential for growth. The Company
also renders after sales support
services, financial services and logistics services.
The foremost objective of the
supply chain business is to ensure
ultimate reach of the products to end customer at the
optimal cost and
shortest possible time. The IT distribution industry is encompassed with
network of interconnected business
partners like value
added resellers, systems integrators, sub distributors, large
format retailers and small mom and pop stores.
The distribution channel provides geographically dispersed demand to
be served at a lower cost than
what vendors can typically achieve on their
own. The channel
makes it easier for business
to acquire new technology as opposed to acquiring that
technology in a multi-vendor model.
INDUSTRY
STRUCTURE:
IT BUSINESS:
The Company works as a national distributor for all leading international IT Brands.
It distributes a complete bouquet
of IT
products including desktops, laptops,
servers, software packages,
peripherals, components,
networking equipments, storage
products and high-end enterprise
level Servers / Storage / Software.
The Company managed
to maintain its success story
even during highly challenging times by focusing on growth areas, keeping a
tight control on costs and adding key
vendors to its portfolio.
The Company would continue to tailor its strategies to
meet the
future challenges in order to
ensure that the growth objectives are
not diluted and it
continuously identifies newer and
fresher areas for
business
acquisition.
NON -IT BUSINESS:
The Company has penetrated into distribution of non-information
technology products successfully since 2004.
In
Consumer Electronics industry consists of durable goods used for domestic purposes such as televisions, washing machines, refrigerators, microwave ovens, etc.
The growth in the consumer durables sector has
been driven primarily by factors
such as the boom in the real estate and housing industry and with
rising affluence level
of a considerable
section of the population.
As per a survey
conducted by FICCI on the
Indian consumer durables industry, a
shift in consumer
preferences towards higher-end, technologically advanced branded
products has been quite discernable.
This shift can be explained by narrowing differentials
between the prices of branded
and unbranded products added with the high quality of after sales service provided by the branded
players. The shift has also been
triggered by the availability of foreign branded products in
SERVICES:
The Company from the beginning believed in the importance
of 3rd
party neutral service provider for vendors and customers in
high growth large markets
like India, Middle East and Africa. Presence of 3rd party neutral service provider helps the brand owners to deliver
timely service and at lower
cost. The Company has been able
to map consistent growth in
there service business by being the neutral service provider, providing
customers in India with
world class service support in
association with leading global IT and Telecommunication
organizations. The Company has always been the
frontrunner in many activities providing end-to-end support
services including warranty services, supply of authorized spare parts
and upgrades to other service providers,
annual maintenance services, technical response centre, high
level repair services for mobile handsets and
motherboards etc. and thereby
giving significant value-addition to
the vendors and customers.
THIRD PARTY
LOGISTICS:
Globalization resulted in Indian firms' demanding new logistics
capabilities and more complex solutions for logistics challenges. There is a
greater realization about importance expert logistics services. Due to economies of scale, 3PL service
provider like the Company, are better positioned to provide a cost effective
solution to these expert logistic needs.
More companies are turning towards 3PL to help them in successful
management of supply chain processes.
3PL provides the ability to bring down conventional logistics costs and
handle more complicated tasks.
The 3PL industry is expected to become a $90
million industry from
the current $58 million,
as around 55 per cent of Indian companies
are outsourcing logistic services, which used to be between 10-15 per
cent ten years ago (Source: Business
Standard). Value added services are currently the most important driving factor
for such a shift giving hopes for further shift in future.
The Company manages low turnaround time at cost effective mode supported
by investment in Distribution Centre and high quality warehouse management
software. Supply Chain Solution services
form an integral part of the Company's operations. The Company's initiative
to set up
Automated Distribution
Centres(ADCs) at four Metros in
India and one in Dubai
is progressing well. ADC at Chennai started its operations in the
last financial year. It was challenging to implement a best of breed warehouse
management system, performance testing of high end Very Narrow Aisle (VNA)
equipments and giving adequate training to the manpower. Unlike a normal
warehouse, the uniqueness of ADC is having process driven operations.
OVERSEAS
OPERATIONS:
The Company always aims at networking seamlessly beyond boundaries. The Company's overseas subsidiaries
contribute equally to the growth. The global turmoil last year has affected the
growth in IT industry in the overseas operations. Majority of there vendors de-grew
their revenue in this market due to serious erosion of demand, mainly from
corporate segment. In the
However, the Company's subsidiary,
During the last 3 to 4 years, Redington-Gulf is making conscious effort
to move into distribution of value products in MEA markets. The value division
was started with focus on networking products and solutions. The vision behind
value-added distribution is to establish the Company as a leading
one-stop-solutions provider for
information management, information convergence and
information security vertical.
With the addition of 5
brands in the
year, currently the
Company's overseas subsidiary,
Redington-Gulf has about 15 brands in this space and is showing a
consistent growth. The Value Division is
associated with some of the
leading global brands
including Avaya, Ascom, Coral Maksat,
Cisco, HP ProCurve, HP
Software, Juniper, Microsoft,
Nortel, Netgear, RedHat, SonicWall, Trapeze Networks and
TrendMicro.
In the Telecom segment, a
significant performer in there African market
was Nokia in
couple of years. In
While the Company's overseas subsidiaries have set their
footprint in Africa in
the early 2000, there are
continuous efforts to
expand the geographical spread
within that region. Recently,
two new markets,
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED MARCH 31, 2011
Rs.
in Millions
|
Particular |
Standalone |
|
|
Year Ended 31.03.2011 |
|
|
|
|
(a)
Net Sales / Income from operations |
83160.100 |
|
(b)
Other Operating Income |
67.200 |
|
Total
Income |
83227.300 |
|
Expenditure |
|
|
(Increase)
/ Decrease in stock in trade and work in progress |
(1565.300) |
|
Purchase
of traded goods |
80205.700 |
|
Employees
cost |
831.000 |
|
Depreciation |
134.700 |
|
Other
expenditure |
1320.000 |
|
Total |
80926.100 |
|
Profit
from operations before other income, interest and exceptional Items |
2301.200 |
|
Other
income |
63.300 |
|
Profit
before interest and exceptional Items |
2364.500 |
|
Interest |
430.500 |
|
Profit before tax |
1934.000 |
|
Tax
expense |
649.600 |
|
Profit after tax and before
minority interest |
1284.400 |
|
Minority/ non controlling
interest |
0.000 |
|
Net
Profit (+) / Loss (-) for the year period |
1284.400 |
|
Paid
up equity share capital (Face value of Rs.2/- per share) |
792.700 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
6848.000 |
|
Earning
per share (EPS) |
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
3.25 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
3.23 |
|
Public
shareholding |
|
|
Number of shares |
281822080 |
|
Percentage of shareholding |
71.00 |
|
Promoters
and Promoters group Shareholding- |
|
|
a)
Pledged /Encumbered |
|
|
Number
of shares |
Nil |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
Nil |
|
Percentage
of shares (as a % of total share capital of the company) |
Nil |
|
b)
Non Encumbered |
|
|
Number
of shares |
114507975 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
29.00 |
CONSOLIDATED SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED
Rs.
in Millions
|
Particular |
Year Ended 31.03.2011 |
|
Segment Revenue |
|
|
|
83666.600 |
|
Overseas |
91190.200 |
|
Total |
174856.800 |
|
|
|
|
Less: Inter Segment Revenue |
(179.400) |
|
Net Sales/ Income From Operation |
174677.400 |
|
Add: Other Income |
103.400 |
|
Revenue |
174780.800 |
|
|
|
|
Segment Results (Profit before interest and tax) |
|
|
|
2762.200 |
|
Overseas |
1708.700 |
|
Total |
4470.900 |
|
|
|
|
Less: Interest |
960.900 |
|
Profit Before Tax |
3510.000 |
|
|
|
|
Capital Employed |
|
|
Segment Assets – Segment Liabilities |
|
|
|
5739.900 |
|
Overseas |
9568.700 |
|
Total |
15308.600 |
STATEMENT OF ASSETS AND LIABILITIES AS PER CLAUSE 41 (V) OF THE LISTING
AGREEMENT:
|
|
|
Rs in Millions |
|
Particulars |
Years ended |
|
|
As on 31.03.2011 |
||
|
Audited |
||
|
|
|
|
|
SHAREHOLDERS FUNDS |
|
|
|
Share Capital |
792.700 |
|
|
Reserves & Surplus |
6848.000 |
|
|
Shareholders Funds |
7640.700 |
|
|
Minority Interest
|
0.000 |
|
|
|
|
|
|
Secured Loans |
3575.200 |
|
|
Unsecured Loans |
1575.000 |
|
|
|
|
|
|
TOTAL |
12790.900 |
|
|
|
|
|
|
FIXED ASSETS |
676.400 |
|
|
INVESTMENT |
4630.000 |
|
|
Deferred Tax
Assets (Net) |
40.500 |
|
|
|
|
|
|
CURRENT ASSETS,
LOANS & ADVANCES |
|
|
|
Inventories |
7174.300 |
|
|
Sundry Debtors |
8542.700 |
|
|
Cash & Bank
Balances |
1502.000 |
|
|
Other Current
Assets |
0.000 |
|
|
Loans &
Advances |
1342.100 |
|
|
|
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
Other Current
Liabilities |
10549.300 |
|
|
Provisions |
567.800 |
|
|
|
|
|
|
Net
Current Assets |
7444.000 |
|
|
|
|
|
|
TOTAL |
12790.900 |
|
Notes:
1. The board of directors has recommended a dividend of Rs.1.10 per equity shares of Rs.2/- each (i.e. 55%) (Previous year Rs.5/-) per equity shares of Rs.10/- each i.e. 50%) for the financial year ended March 31, 2011
2. Out of the 23,35,973 options granted by the Company under the Employee Stock Option Plan 2008, 4,69,957 options lapsed, of which 3,12,143 options were reissued, 1400265 options exercised and 7,77,894 options were outstanding as on March 31, 2011.
3. During the quarter 335,620 equity shares of Rs.2/- each fully paid-up with a total premium of Rs.8.126 millions were issued and allotted pursuant to the exercise of stock options granted under Redington (India) Limited Employee Stock Option Plan 2008.
4. Subsequent to the Balance Sheet date, the Company issued and allotted 1028725 equity shares of Rs.2/- each fully paid up pursuant to the exercise of stock options under Employee Stock Option Plan 2008.
5. The proceeds of initial public offer in 2007 have now been fully utilized.
6. Arena
Bilgisayar Sanayl Ve Ticaret Anonim Sirketi,
7. As the operations of the company’s overseas subsidiaries constitute more than 10% of the turnover geographical segment has been considered as the primary segment for consolidated financial results. The Company primarily operates in distribution business and after sales services of IT and other products and as the revenue from service segment is less than 10% of the total revenue, there are no reportable segments as required to be disclosed under the Accounting Standard 17 “Segment Reporting”.
8. Tax expense represents income tax netted for deferred tax adjustment.
9. Previous year figures have been regrouped to conform to the current year’s classification.
10. The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on May 19, 2011.
11. During the current quarter, 1 complaint received from investor was resolved. No complaint was pending at the beginning and at the end of the quarter.
Fixed Assets:
· Land and Building,
· Plant and Machinery
· Furniture and Fixtures
· Office Equipment
· Computers and Software
·
Vehicles
AS PER WEBSITE
Corporate
Profile:
Subject along with its subsidiaries is in the business of
end-to-end supply chain management of IT and Non-IT products in various
potential geographies of South Asia, Middle East and
With a large distribution network and a market penetration of more than 18 countries, Redington is amongst the largest, supply chain solution providers to over 75 leading manufacturers of Information Technology, Telecom, Lifestyle and Consumer Electronics Products, worldwide. Redington also provides warranty and post warranty services. Supported by a wide and well connected distribution network of more than 23,600 channel partners, team of trained and talented workforce and Automated Distribution Centres, Redington has drawn up plans to take its place amongst the key world class, supply chain solution providers.
Commencing the Indian operations in 1993, Redington’s consolidated revenue for FY 2009-10 is Rs. 137786.500 millions and the consolidated net profit for the FY 2009-10 is Rs. 1843.300 millions.
Redington’s higher than industry average growth in the price
sensitive Indian market and difficult to penetrate
News:
22.09.2010
Redington to buy 49%
stake in Turkish IT co for $42.45 mn
Press
Trust of
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IT distributor Redington (
Redington International Holdings, a subsidiary of the company, has entered into
a share purchase agreement with the promoters of Arena Bilgisayar Sanayi Ve
Ticaret Anonim Irketi(Arena) to acquire a 49.4 per cent stake, Redington
(India) said in a filing to the Bombay Stock Exchange.
“This is a part of the company's strategy to explore opportunities in new
markets," the company added.
The transaction would get consummated on satisfaction of all conditions
including, but not limited to, all legal permits that are required, it said.
The company is hopeful the acquisition will enhance the company's overseas
business and will be value-accretive for shareholders.
Arena is a distributor of information technology products in
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.45.29 |
|
|
1 |
Rs.73.84 |
|
Euro |
1 |
Rs.64.18 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
Yes |
|
--LITIGATION |
YES/NO |
No |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
No |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
No |
|
--EXPORT ACTIVITIES |
YES/NO |
Yes |
|
--AFFILIATION |
YES/NO |
Yes |
|
--LISTED |
YES/NO |
Yes |
|
--OTHER MERIT FACTORS |
YES/NO |
Yes |
|
TOTAL |
|
66 |
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.