1. Summary Information
|
|
|
Country |
|
|
Company Name |
SALORA
INTERNATIONAL LIMITED |
Principal Name 1 |
Mr.
Gopal Sitaram Jiwarajka |
|
Status |
Moderate |
Principal Name 2 |
Mr.
Sitaram Jiwarajka |
|
|
|
Registration # |
55 – 4962 |
|
Street Address |
D-13/4, Okhla Industrial Area, Phase II, |
||
|
Established Date |
20.11.1968 |
SIC Code |
-- |
|
Telephone# |
91-11-49207100 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-11-26388581 |
Business Style 2 |
Distributors |
|
Homepage |
Product Name 1 |
Coluor TV |
|
|
# of employees |
359 (Approximately) |
Product Name 2 |
FBT/DY |
|
Paid up capital |
Rs.88,145,000 |
Product Name 3 |
Mobile Phone |
|
Shareholders |
Shareholding Promoter and Prompter Group - 66.72 % Public Shareholding - 33.28% |
Banking |
State Bank of |
|
Public Limited Corp. |
YES |
Business Period |
43 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
B (30) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary
|
-- |
Salora Capital Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1,143,800,000 |
Current Liabilities |
457,301,000 |
|
Inventories |
548,917,000 |
Long-term Liabilities |
509,844,000
|
|
Fixed Assets |
414,438,000 |
Other Liabilities |
40,848,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
1,007,993,000 |
|
Invest& other Assets |
81,742,000 |
Retained Earnings |
1,092,759,000 |
|
|
|
Net Worth |
1,180,904,000 |
|
Total Assets |
2,188,897,000 |
Total Liab. & Equity |
2,188,897,000 |
|
Total Assets (Previous Year) |
2,782,459,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
5,120,472,000 |
Net Profit / (Loss) |
(91,276,000) |
|
Sales(Previous yr) |
5,196,053,000 |
Net Profit(Prev.yr) |
(61,827,000) |
MIRA
INFORM REPORT
|
Report Date : |
08.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
SALORA INTERNATIONAL LIMITED |
|
|
|
|
Registered
Office : |
D-13/4, Okhla Industrial Area, Phase II, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation
: |
20.11.1968 |
|
|
|
|
Com. Reg. No.: |
55 - 4962 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.88.145 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1968PLC004962 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
DELS08465C |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Distribution of televisions and loudspeakers,
FBT and deflection yoke; marketing of telephones, fax machines, printer,
monitors and other IT products. |
|
|
|
|
No. of Employees
: |
359 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4700000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Profitability
of the company is under pressure, However, trade relations are reported as fair.
Business is active. Payments are reported to be slow but correct. The company can be considered for business dealings with some caution. |
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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 / Head Office : |
D-13/4, Okhla Industrial Area, Phase II, |
|
Tel. No.: |
91-11-49207100 / 101 / 39848010 / 20 / 26833668/ 26834078/ 26833910/ 26831329 |
|
Fax No.: |
91-11-26388581 / 26835999 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory : |
Plot No. B-31-34 and 50-53, Sector – 80, Noida, |
|
|
|
|
Branch Office 1: |
Shop No-7, Basement, Maradia Plaxa, Near Associate Petrol
Pump, |
|
Tel. No.: |
91-79-26562754 |
|
|
|
|
Branch Office 2 : |
Rajender Path, Nippo Office Premises, Free |
|
Tel. No.: |
91-612-2320059 / 2321103 |
|
|
|
|
Branch Office 3: |
Jai Complex, Serve No. 691/A/1B, Plot No. 6. CTS-1902,
Bibwewadi Corner, Near |
|
Tel. No.: |
91-20-24219512 |
|
|
|
|
Branch Office 4: |
Shop No. 565, Basement, |
|
Tel. No.: |
91-124-4236058 |
|
|
|
|
Branch Office 5: |
Basement and Ground Floor F-71, Ram Path, Shyam Nagar,
Jaipur, |
|
Tel. No.: |
91-141-4002612 |
|
|
|
|
Branch Office 6: |
House No. 2, Avtar Nagar, Near Med City, |
|
Tel. No.: |
91-161-5034263 |
|
|
|
|
Branch Office 7: |
Flat No.-09, |
|
Tel. No.: |
91-135-2720303 |
|
|
|
|
Branch Office 8: |
310, Shalimar Corporate Centre, 8/B, South Tukoganj,
Indore-452001, |
|
Tel. No.: |
91-731-2514160 to164 |
|
|
|
|
Branch Office 9: |
S.C.O. 327, Sector 40 D, |
|
Tel. No.: |
91-171-2688362 |
|
|
|
|
Branch Office 10: |
128, Building No. 3, 1st Floor, Rahul Mittal Industrial Estate, Andheri-Kurla-Road, Andheri (East) Mumbai-400059, Maharashtra, India |
|
Tel. No.: |
91-22-42545000 / 01 / 02 |
|
|
|
|
Branch Office 11: |
545 A, Gandhi Nagar, Jammu-180004, Jammu and Kashmir, |
|
Tel. No.: |
91-191-2431768 |
|
|
|
|
Branch Office 12: |
5, |
|
Tel. No.: |
91-33-22230573 |
|
|
|
|
Branch Office 13: |
Munni Market, 2nd Floor, Opposite ICICI Bank,
Bhangagarth, |
|
Tel. No.: |
91-361-2452156 |
|
|
|
|
Branch Office 14: |
21, Ravi Nagar, Raipur-492001, |
|
Tel. No.: |
91-771-2446332-334 |
|
|
|
|
Branch Office 15: |
A-11, Sahid Nagar, Bhubaneshwar - 751007, |
|
Tel. No.: |
91-674-2543252 |
|
|
|
|
Branch Office 16: |
1-1-167/2, First Floor, |
|
Tel. No.: |
91-40-27807315 / 16 / 27807319 / 20 |
|
|
|
|
Branch Office 17: |
Wadji Vijay Apartment, 2nd Floor Above Satkar Hotel, 18
June Road Panjim-403001, |
|
Tel. No.: |
91-832-22422963 |
|
|
|
|
Branch Office 18: |
Blue Moon Xlant, No. 388 9th Main, Sector-7, Near State Bank of Mysore HSR Layout, Banglore- 560034, Karnataka, India |
|
Tel. No.: |
91-80-25726428 / 25726429 |
|
|
|
|
Branch Office 19: |
37/2236, Angel Tedeum , North Palathuruthuroad, Kathikadavu, Ernakulam, Cochin -682017, Kerala, India |
|
Tel. No.: |
91-484-2344776 / 2344745 / 2374745 / 2374746 |
|
|
|
|
Branch Office 20: |
New No.8 (Old No. 34) |
|
Tel. No.: |
91-44-28251332 |
|
|
|
|
Branch Office 21: |
40/822, C-2, C-3, II nd Floor Erumbayil Complex Lyyayyil, Junction Chittoor Road, Ervakulam, Cochin-682011, Kerala, India |
|
|
|
|
Branch Office 22: |
37/2236, Angel Tedeum , North Palathuruthuroad, Kathikadavu, Ernakulam, Cochin -682017, Kerala, India |
|
Tel. No.: |
91-484-2344776 / 2344745 / 2374745 / 2374746 |
|
|
|
|
Branch Office 23: |
H/O, Ramesh Sarawagi, Kamla Kant Road, Nawa Toli, Harmu Road, Ranchi-834001, Jharkhand, India |
|
Tel. No.: |
91-651-2332238 |
|
|
|
|
Branch Office 24: |
76, |
|
Tel. No.: |
91-7104-222459 |
|
|
|
|
Branch Office 25: |
Sunil Market C/O. S.K. Grower 49, Sankr Gardern, Near
Income Tax Colony, Jalandhar-144001, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr.
Sitaram Jiwarajka |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr.
Gopal Sitaram Jiwarajka |
|
Designation : |
Vice
Chairman and Managing Director |
|
|
|
|
Name : |
Mr.
Gautam Khaitan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
P. N. Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Sanjeev Kaul Duggal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr.
Patanjali Govind Keswani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Surinder Sood |
|
Designation : |
Chief Finance Officer |
|
|
|
|
Name : |
Mr. Y. P. Bansal |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5317337 |
60.37 |
|
|
558929 |
6.35 |
|
Sub Total |
5876266 |
66.72 |
|
|
|
|
|
Total
Shareholding Promoter and Prompter Group (A) |
5876266 |
66.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
400 |
-- |
|
|
100 |
-- |
|
|
200 |
-- |
|
Sub Total |
700 |
0.01 |
|
|
|
|
|
|
822739 |
9.34 |
|
|
|
|
|
|
1439150 |
16.34 |
|
|
619463 |
7.03 |
|
|
48982 |
0.56 |
|
|
46507 |
0.53 |
|
|
175 |
-- |
|
|
2300 |
0.03 |
|
Sub Total |
2930334 |
33.27 |
|
Total Public Shareholding (B) |
2931034 |
33.28 |
|
Total (A) + (B) |
8807300 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Sub Total |
-- |
-- |
|
Total (A) + (B) + (C) |
8807300 |
-- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Distribution of televisions and
loudspeakers, FBT and deflection yoke; marketing of telephones, fax machines,
printer, monitors and other IT products. |
||||||||
|
|
|
||||||||
|
Products : |
|
||||||||
|
|
|
||||||||
|
Brand Names : |
|
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit |
Installed
Capacity* |
Actual
Production |
|
TV Sets and Sub Assemblies thereof |
Nos. |
300000 |
159414 |
|
Electronic Components |
Nos. |
13600000 |
4466706 |
Note : *The installed capacity
is as certified by the management and not verified by the auditors, being a
technical matter.
GENERAL INFORMATION
|
No. of Employees : |
359 (Approximately) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Note : 1.
2. Working
Capital Loans referred to in 'B' are secured by hypothecation of inventories
and receivables and first pari-passu charge with PICUP on immovable
properties of Noida units as collateral security. 3. Buyers Credit
loan from bank referred to in ' B ' above are secured against FDRS. 4. Interest free
Loan from PICUP under sales tax deferred scheme is secured by first charge on
all movable fixed assets (present and future) of Noida units and first
pari-passu charge with bank(s) on immovable properties of Noida units.
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
K.
Prasad and Company Chartered Accountants |
|
|
|
|
Subsidiaries |
|
|
|
|
|
Associates / Joint
Ventures : |
|
|
|
|
|
Related Parties : |
|
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8820000 |
Equity Shares |
Rs.10/- each |
Rs.88.200
Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8807300 |
Equity Shares |
Rs.10/- each |
Rs.88.073 Millions |
|
|
Add : Share
Capital Forfeited (12700 Equity Shares @ Rs.5.65/- each) |
|
Rs.0.072 Millions |
|
|
Total |
|
Rs.88.145
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
88.145 |
88.145 |
88.145 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1092.759 |
1184.035 |
1245.862 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1180.904 |
1272.180 |
1334.007 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
484.474 |
549.166 |
869.344 |
|
|
2] Unsecured Loans |
25.370 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
509.844 |
549.166 |
869.344 |
|
|
DEFERRED TAX LIABILITIES |
37.621 |
72.906 |
110.774 |
|
|
|
|
|
|
|
|
TOTAL |
1728.369 |
1894.252 |
2314.125 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
414.438 |
461.704 |
496.524 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
81.742 |
81.692 |
81.693 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
548.917
|
906.327 |
1008.027 |
|
|
Sundry Debtors |
668.104
|
957.950 |
1045.308 |
|
|
Cash & Bank Balances |
62.133
|
24.103 |
27.582 |
|
|
Other Current Assets |
68.127
|
9.869 |
13.822 |
|
|
Loans & Advances |
345.436
|
344.735 |
311.976 |
|
Total
Current Assets |
1692.717
|
2242.984 |
2406.715 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
403.268
|
835.176 |
574.013 |
|
|
Other Current Liabilities |
54.033
|
53.031 |
82.261 |
|
|
Provisions |
3.227
|
3.921 |
14.533 |
|
Total
Current Liabilities |
460.528
|
892.128 |
670.807 |
|
|
Net Current Assets |
1232.189
|
1350.856 |
1735.908 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1728.369 |
1894.252 |
2314.125 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5120.472 |
5196.053 |
7138.871 |
|
|
|
Other Income |
17.554 |
15.633 |
10.501 |
|
|
|
TOTAL (A) |
5138.026 |
5211.686 |
7149.372 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials
Consumed and Purchase of Goods |
4360.089 |
4774.634 |
6328.140 |
|
|
|
Personnel
Expenses |
187.348 |
186.031 |
196.316 |
|
|
|
Manufacturing
& Other Expenses |
256.159 |
257.352 |
373.257 |
|
|
|
(Increase)/Decrease
in Stock |
354.958 |
(11.635) |
96.789 |
|
|
|
TOTAL (B) |
5158.554 |
5206.382 |
6994.502 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(20.528) |
5.304 |
154.870 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
67.256 |
60.886 |
100.443 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(87.784) |
(55.582) |
54.427 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
38.749 |
42.719 |
52.008 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(126.533) |
(98.301) |
2.419 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(35.257) |
(36.474) |
5.229 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(91.276) |
(61.827) |
(2.810) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
135.953 |
197.780 |
210.894 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
0.000 |
|
|
|
Dividend |
0.000 |
0.000 |
8.807 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
1.497 |
|
|
BALANCE CARRIED
TO THE B/S |
44.677 |
135.953 |
197.780 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export
of goods calculated on FOB basis |
1356.132 |
388.799 |
388.537 |
|
|
|
|
384.145 |
0.000 |
0.000 |
|
|
|
Service
charges including Service Tax |
8.674 |
12.980 |
0.000 |
|
|
|
Reimbursement
of component under warranty service |
24.967 |
91.820 |
0.000 |
|
|
|
Others |
0.000 |
0.000 |
41.651 |
|
|
TOTAL EARNINGS |
1773.918 |
493.599 |
430.188 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
144.814 |
188.721 |
136.237 |
|
|
|
Trading Goods- Direct Purchase |
280.983 |
473.127 |
78.007 |
|
|
|
Trading |
388.960 |
1557.571 |
2516.882 |
|
|
|
Spares |
0.239 |
0.379 |
0.740 |
|
|
|
Capital Goods |
1.633 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
816.629 |
2219.798 |
2731.866 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(10.36) |
(7.02) |
(0.32) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
Type |
1ST
Quarter |
|
Net Sales |
830.250 |
|
Total Expenditure |
834.150 |
|
PBIDT (Excl OI) |
(3.900) |
|
Other Income |
8.550 |
|
Operating Profit |
4.650 |
|
Interest |
15.410 |
|
Exceptional Items |
0.000 |
|
PBDT |
(10.760) |
|
Depreciation |
9.040 |
|
Profit Before Tax |
(19.800) |
|
Tax |
(4.610) |
|
Provisions
and contingencies |
0.000 |
|
Profit
After Tax |
(15.190) |
|
Extraordinary
Items |
0.000 |
|
Prior
Period Expenses |
0.000 |
|
Other
Adjustments |
0.000 |
|
Net Profit |
(15.190) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(1.78)
|
(1.19) |
(0.04) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.47)
|
(1.89) |
0.03 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.00)
|
(3.56) |
0.08 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.11)
|
(0.08) |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.82
|
1.13 |
1.15 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.68
|
2.51 |
3.59 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS OPERATIONS AND FUTURE OUTLOOK
During the period, the
Company has been able to achieve net sales of Rs.5120.500 Millions
despite increasing competition in the market as compared to Rs.5196.100
Millions in the Financial Year 2009–10 showing a decrease of 1.45%. The Company
suffered a net loss after tax of Rs.91.300 Millions in the
Financial Year 2010–11 as compared to Rs.61.800 Millions in the Financial
Year 2009–10.
The coming period will
be challenging and at the same time bring new opportunities for them. The
Company has launched Salora Brand Mobile phone in April, 2011. The Company has
also launched Salora Brand 3G Data Card in May, 2011. In order to diversify the
distribution platform, the Company has entered into agreement with Zojirushi
Hong Kong Company Limited for exclusive distribution of their thermo ware
products in
The Company has also
entered into agreement with Shenzhen Tenda Technology Company Limited for
distribution of networking products including switches, routers, hub, gateway,
cable modem, LAN Adaptor, related antenna, optic media connector, wireless
broad band, routers, wireless LAN Adaptor. The Company also entered into
strategic tieup with Sharp Business Systems (
MANAGEMENT
DISCUSSIONS AND ANALYSIS
Industry Structure and
Development
The business of the
Company includes distribution, supply chain management and after sale service
for wide range of leading national and international brands of consumer
electronic goods, IT and telecom products and manufacturing of colour
televisions and its components. The Company’s value addition in the
distribution segment includes the forecasting of demand and procurement of
goods from manufacturers / suppliers, stocking at warehouses, supplying to
sub-distributors / channel partners with appropriate credit facility and
collection of receivables.
Consumer preferences
shifted towards high end and technologically advance branded products.
Companies in consumer electronic goods, IT and telecom industry are focusing on
customizing products to suit Indian requirements. Companies are conducting
market research to understand the Indian Consumer. The conclusion of the market
research are determining product attribute and pricing. Indian IT, telecom and
Consumer Electronic Industry is scaling new heights and its future is bright.
Opportunities
- There are opportunities to increase market
penetration by launching innovative products.
- There are opportunities to reduce cost of
products.
- The increasing popularity of easily
available customer loans is being leveraged upon by Companies to give a
moral boost to the consumers.
- Phenomenal growth of media in
- Growth in internet penetration in both urban
and rural markets will lead to growth in sale of IT products.
- There are opportunities to develop high end
products.
- Demand for consumer electronic goods, IT and
telecom products usually pick up during the festive seasons. Most of the
Companies come out with offers like free gifts, discounts etc. This period
will continue to be the growth driver for the Company.
Segment wise and Product wise Performance
Infocom Business
Salora has become one of the leading distribution Companies in
consumer electronic goods, IT and Telecom Sector. The Company has 28 branches
spread all over the Country. The Company is connected by a VPN and the complete
operation is managed by an Oracle based ERP System.
Infocom Division undertakes the distribution of the following
products:-
- Salora Mobile
Phone and 3G Data Card
- Tenda Networking
Products – Distribution Partner
- Zojirushi Thermo
ware Products – Distribution Partner
- Motorola Mobiles –
Distribution Partner for mobile handset.
- MTS – Distribution
Partner
- Acer – National
Distributor for Laptops, Desktops and projectors.
- Pleomax (Samsung)
– Distribution Partner for computer peripherals and CFL Bulbs.
- Mercury (Kobian) –
Distribution Partner for distribution of Motherboard and Computer Cabinet.
- Kingmax –
Distribution Partner for Computer peripherals and Memory Cards.
- Crystal Glass Ware
Salora Mobile Phone and 3G Data Card - The Company has
launched Salora Brand Mobile Phone in April, 2011 and 3G Data Card in May,
2011.
Tenda Networking Products – The Company has also entered into agreement
with Shenzhen Tenda Technology Company Limited for distribution of networking
products including switches, routers, hub, gateway, cable modem, LAN Adaptor,
related antenna, optic media connector, wireless broad band, routers, wireless
LAN Adaptor.
Zojirushi Thermo Ware Products - In order to diversify
the distribution platform, the Company has entered into agreement with
Zojirushi Hong Kong Company Limited for exclusive distribution of their thermo
ware products in
Motorola Mobiles – Motorola has launched high end and niche Mobile
Phones in the Indian Market and Salora is
distribution partner
for North and East region of the Country for Mass distribution and Pan
MTS – The Company is distribution partner of M/s. Sistema
Shyam Teleservices Limited for distribution of its Data Devices, handsets,
cellular mobile services and related products under brand name MTS. The Company
is National Distributor for ACER Laptops and computer
peripherals. The Company has taken substantial steps for increasing the market
share which resulted in brand building, easy availability of the products in
market, enhanced demand and growth in the sale.
The Company has also
tied up with Samsung Pleomax and Kingmax for distribution of their IT and telecom products’
accessories.
Sharp Electronic products The Company has entered into strategic tie-up with
Sharp Business Systems (
Crystal Glassware Business Nachtman (a division of
Consumer Electronic Business
The Company has two
manufacturing units at NOIDA (U.P.). One unit manufactured Colour Televisions
under the Brand Name Salora and supplied to Electronics Corporation of
Tamilnadu Limited and other parties. This unit also manufactured colour
television for M/s. Panasonic AVC Networks India Company Limited under the
Brand name “Panasonic”. The Company closed this manufacturing unit w.e.f. 31st January, 2011. This unit has been operating at higher
fixed cost resulting in operational losses. However, the Company will continue
manufacturing of consumer electronic products at its other units and on
outsource basis. Second unit manufactured Fly Back Transformer (FBT),
Deflection Yoke (DY) and Speaker. During the year 2010-11 performance of this
unit was satisfactory.
Wind Power Business
The Company has five
wind turbines having capacity of 1.25 MW each (total 6.25 MW) at Dhule, in the
State of
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2011
(Rs. in millions)
|
Particulars |
Quarter Ended |
|
30.06.2011 |
|
|
|
(Unaudited) |
|
|
|
|
1. a. Net Sales/Income from Operations |
829.662 |
|
b. Other Operating
Income |
0.588 |
|
Total Income (1a+1b) |
830.25 |
|
|
|
|
2. Expenditure |
|
|
a. (Increase)/Decrease in stock in trade and work in progress |
8.428 |
|
b. Consumption of raw materials (including processing charges) |
34.797 |
|
c. Purchase of Traded Goods |
724.320 |
|
d. Employees cost |
35.200 |
|
e. Depreciation |
9.045 |
|
f. Other expenditure |
31.397 |
|
g. Foreign Exchange Fluctuation (Net)
|
(5.450) |
|
Total |
837.737 |
|
|
|
|
3. Profit (+)/Loss (-) from Operations before Other Income, Interest and
Exceptional Items (1-2) |
(7.487) |
|
4. Other Income |
3.100 |
|
5. Profit (+)/Loss (-) before Interest and Exceptional Items (3+4) |
(4.387) |
|
6. Interest |
15.412 |
|
7. Profit/ Loss After Interest but Before Exceptional Items (5-6) |
(19.799) |
|
8. Exceptional Item |
0.000 |
|
9. Profit/ Loss from ordinary Activities before Tax (7+8) |
(19.799) |
|
10. Tax expense |
|
|
a. Current Tax Charge |
0.000 |
|
b. Deferred Tax Charge/ Credit |
(4.605) |
|
c. Earlier year : Income Tax |
0.000 |
|
11. Net Profit/ loss from Ordinary Activities After tax (9-10) |
(15.194) |
|
12. Extraordinary Item |
0.000 |
|
13. Net Profit/ Loss for the period (11-12) |
(15.194) |
|
14. Paid-up Equity share Capital (Face value of the share Rs. 10 each) |
88.073 |
|
15. Reserve excluding Revaluation Reserve as per balances sheet of
previous accounting year |
|
|
16. Earnings Per Share (EPS) (in Rs.) |
|
|
a. -Basic (not annualised) |
(1.73) |
|
b. -Diluted (not annualised) |
(1.73) |
|
17. Public shareholding |
|
|
-Number of
shares |
2931034 |
|
-Percentage of
shareholding |
33.28% |
|
18. Promoters
and promoter group shareholding |
|
|
a.
Pledged/Encumbered |
|
|
Number of shares |
-- |
|
Percentage of Shares
(as a %of the total shareholding of promoter and promoter group) |
-- |
|
Percentage of
Shares (as a % of the total share capital of the company) |
-- |
|
b.
Non-encumbered |
|
|
Number of shares |
5876266 |
|
Percentage of Shares
(as a %of the total shareholding of promoter and promoter group) |
100.00% |
|
Percentage of
Shares (as a % of the total share capital of the company) |
66.72% |
|
Earning before
Other Income, interest, depreciation and tax (1-2+2(d)) |
|
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLYED QUARTER ENDED 30.06.2011
(Rs. in millions)
|
Sr. No. |
Particulars |
Quarter Ended 30.06.2011 |
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
1 |
Segment Revenue (Net
Sales/income from Operation) |
|
|
a) Infocom
Division |
719.069 |
|
|
b) Consumer
Electronics Division |
92.753 |
|
|
c) Wind Energy |
17.840 |
|
|
Net Sales /
Income from Operations |
829.662 |
|
|
2. |
Segment Results –
(Profit / (Loss) before tax and interest from segment) |
|
|
a) Infocom
Division |
0.479 |
|
|
b) Consumer
Electronics Division |
(4.990) |
|
|
c) Wind Energy |
11.027 |
|
|
Total |
6.516 |
|
|
Less : i. Interest |
15.412 |
|
|
ii. Other un-allocated
expenditure net of un-allocable income |
10.903 |
|
|
Profit from
Ordinary activities |
(19.799) |
|
|
Extraordinary
Item |
0.000 |
|
|
Total profit /
(Loss) Before Tax |
(19.799) |
|
|
3. |
Capital Employed
– (Segment Assets-Segment Liabilities) |
|
|
a) Infocom
Division |
866.633 |
|
|
b) Consumer
Electronics Division |
424.962 |
|
|
c) Wind Energy |
227.936 |
|
|
d) Un-allocable
Capital Employed |
(353.821) |
|
|
Total |
1165.710 |
FIXED ASSETS
- Building
- Furniture and
Fixtures
- Plant and
Machinery
- Dies and
Moulds
- Motor
Vehicles
- Office
Equipment
- Intangible
Assets
WEBSITE DETAILS
Business Description
Subject is engaged in the business of distribution, supply chain
management and after sale service for a range of national and international
brands of consumer electronic goods, information technology (IT) and telecom
products and manufacturing of colour televisions and its components. It
operates in three segments: Infocom Division, Consumer Electronics Division and
Wind Energy. The Infocom Divisions is engaged in the distribution of
information technology (IT) and telecom products, such as mobile phones, and
information technology (IT) products and accessories. Its Consumer Electronics
Divisions products include fly back transformer (FBT), loudspeaker and
deflection yoke and television (TV) sets, video compact disc (VCD) and digital
versatile disc (DVD) players and sub-assemblies. The Wind Energy segment is
engaged in wind energy generation. The Company’s subsidiaries include Salora
Capital Limited and Salora Components Limited. For the fiscal year ended 31
March 2010, Subject's revenues decreased 26% to Rs.5.31B. Net loss totaled
Rs.53.3M, vs. an income of Rs.951K. Revenues reflects decreased Infocom
division revenues and lower other income. Net loss reflects a decrease in gross
profit margin of the company. Subject is an India-based company and listed in
Board of Directors
Mr. Gopal Sitaram
Jiwarajka
Executive Vice Chairman of the Board, Chief Executive Officer, Managing
Director
Mr. Gopal Sitaram Jiwarajka was appointed as Director of the Company on
28.08.1987 and is holding the office of Managing Director / Joint Managing
Director since 01.04.1992. He is a commerce graduate and possesses experience
in marketing, finance, production and administration and has traveled all over
the globe. He possesses experience in TV and electronic industry and possesses
in depth knowledge of Indian conditions in respect of this industry.
Mr. Sanjeev Kaul
Duggal
Non-Executive Independent Director
He has experience of more than 25 years in training and Development. He
is an acknowledged authority and a consultant in the Sales and Marketing arena
in
Mr. Patanjali Govind Keswani
Non-Executive Independent Director
Mr. Patanjali Govind Keswani is Non-Executive Independent
Director of Subject. Mr. Keswani is Founder Chairman and Managing Director of
Krizm Hotels Private Limited, having chain of Hotels across
Gautam Khaitan
Non-Executive Independent Director
He is
a Law Graduate from Law Campus,
Mr. P. N. Mehta
Non-Executive Non Independent Director
He has experience in specific Functional Area : Tax Consultant Directorships held in other Public Companies (excluding : Panasonic AVC Networks India Company Limited foreign Companies and Section 25 Companies) Membership / Chairmanship of Committees of other : 1) Chairman Audit Committee - Panasonic AVC Networks India Public Companies (includes only Audit Committee and Company Limited Shareholders Grievance Committee) 2) Member Directors' Remuneration Committee - Panasonic AVC Networks India Company Limited 3) Member Shareholders Grievance Committee - Panasonic AVC Networks India Company Limited
PRESS RELEASES:
Salora offers multiple operator-enabled 3G
data card at Rs 1,650
08 September 2011
Salora
International Limited, a listed firm engaged in manufacturing of consumer
electronics goods, today announced the launch of Salora Zapper 3G Data Card ,
which is compatible with multiple telecom operators, at a price of Rs 1,650.
This unique data card is compatible with every GSM network...this is the
feature that is being talked first time in
24 June 2011
Indian television manufacturer Salora International Limited (BSE:500370)
has joined its peers Videocon, LG and Samsung to foray into the multi-crore
rupee Indian mobile handset business and plans to expand its product portfolio
over the next few months.
In the first phase, Salora plans to launch its handsets in eastern
"There are already a huge number of players, but we will look to
differentiate our product on the basis of quality. We have a television
business and people trust our brand, which will help us in the market,"
Salora International managing director Gopal Jiwarajka said.
Homegrown firms like Micromax and Zen have given tough competition to
established brands like Nokia and Samsung in the Indian market, capturing a
major share in rural parts of the country.
This has prompted many consumer durable makers like Videocon and power
backup solution providers such as Genus and Wynncom to enter the mobile handset
segment.
According to a study by telecom market research firm Cyber Media
Research, the mobile handsets segment in the country is expected to grow at a
26.2 per cent CAGR over the 2010-2014 period to touch Rs 128,729 crore in 2014.
Salora has launched two handsets in the market and will add another eight
devices over the next one year, he added.
The handsets launched include SM501 (Rs 2,999) and SM401 (Rs 2,499).
"We would bring handsets in the Rs 1,500-4,000 bracket because this
is where we see the biggest demand," he said, adding that the company
would focus on smaller towns.
The company is targeting monthly sales of about 50,000-75,000 units in
the next one year.
"We are a new company and it will take some time for us to get
scale, but in a year's time, we should be in a position to sell about
50,000-75,000 units a month," Jiwarajka said.
The handsets would be sourced from
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.49.38 |
|
|
1 |
Rs.79.20 |
|
Euro |
1 |
Rs.67.84 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
30 |
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.