MIRA
INFORM REPORT
|
Report Date : |
13.08.2012 |
IDENTIFICATION DETAILS
|
Name : |
ORIENT BELL LIMITED (w.e.f.17.04.2012) |
|
|
|
|
Formerly Known
As : |
ORIENT CERAMICS AND INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
8, Industrial Area, Sikandrabad – 203 205, District Bulandshahr, Uttar
Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
18.05.1977 |
|
|
|
|
Com. Reg. No.: |
20-021546 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.105.300 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L14101UP1977PLC021546 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are
Listed on the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Ceramic and Vitrified Tiles. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (49) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2700000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having satisfactory track. Trade
relations are reported as fair. Business is active. Payments are reported to
be usually correct 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 – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
BBB (Long Term Rating) |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of financial
obligation. It carry low credit risk. |
|
Date |
August 2011 |
|
Rating Agency Name |
ICRA |
|
Rating |
A2 (Short Term Loan) |
|
Rating Explanation |
Having strong degree of safety regarding timely payment of financial obligation.
It carry lowest credit risk |
|
Date |
August 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
8, Industrial Area, Sikandrabad – 203 205, District Bulandshahr, |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office and Showroom : |
Iris House, 16, Business Centre, Nangal
Raya, |
|
Tel. No.: |
91-11-47119100-200 |
|
Fax No.: |
91-11-28521273 |
|
E-Mail : |
|
|
|
|
|
Factory : |
8, A-75 to A-80 and A-84 Industrial Area,
Sikandrabad-203205, District Bulandshahr, Uttar Pradesh, India |
|
Tel No.: |
91-5735-222203/424 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Mahendra K. Daga |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. R. N. Bansal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Madhur Daga |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Dhruv M. Sawhney |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N. R. Srinivasan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Yogesh Mendiratta |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee : |
·
Mr. R. N. Bansal,
Chairman ·
Mr. N. R. Srinivasan ·
Mr. Mahendra K. Daga |
|
|
|
|
Shareholders /
Investors Grievance and Share Transfer
Committee : |
·
Mr. N. R. Srinivasan,
Chairman ·
Mr. Mahendra K. Daga ·
Mr. Madhur Daga |
|
|
|
|
Remuneration Committee : |
·
Mr. N. R. Srinivasan,
Chairman ·
Mr. Dhruv M. Sawhney ·
Mr. R. N. Bansal |
|
|
|
|
Name : |
Mr. Vijay Shankar Sharma |
|
Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(1) Indian |
|
|
|
|
4,656,111 |
34.3 |
|
Bodies Corporate |
3,234,199 |
23.83 |
|
Any Others (Specify) |
2,079,100 |
15.32 |
|
Trusts |
2,079,100 |
15.32 |
|
|
9,969,410 |
73.45 |
|
(2) Foreign |
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
9,969,410 |
73.45 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
Mutual Funds / UTI |
5,999 |
0.04 |
|
Financial Institutions / Banks |
5,033 |
0.04 |
|
|
2,902 |
0.02 |
|
|
478 |
- |
|
Sub Total |
14,412 |
0.11 |
|
(2) Non-Institutions |
|
|
|
|
469,090 |
3.46 |
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
2,162,237 |
15.93 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
923,062 |
6.8 |
|
Any Others (Specify) |
35,240 |
0.26 |
|
Non Resident Indians |
35,093 |
0.26 |
|
Trust & Foundation |
147 |
- |
|
|
3,589,629 |
26.45 |
|
Total Public shareholding (B) |
3,604,041 |
26.55 |
|
Total (A)+(B) |
13,573,451 |
100 |
|
|
- |
- |
|
(1) Promoter and Promoter Group |
- |
- |
|
(2) Public |
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
13,573,451 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Ceramic and Vitrified Tiles. |
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||||
|
Products : |
|
||||
|
|
|
||||
|
Brand Names : |
“Europa” and “Stiler” |
PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity * |
Actual
Production |
|
|
|
|
|
|
Ceramic Tiles |
MT |
220000 |
184065 |
*Above Installed Capacity is certified by the Management.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of India ·
Punjab National Bank ·
Barclays Bank PLC ·
Axis Bank ·
IDBI Bank |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Statutory Auditors : |
|
|
Name : |
S.R. Dinodia and Company Chartered Accountant |
|
Address : |
New Delhi, India |
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|
|
|
Subsidiaries : |
·
Bell Ceramics Limited |
|
|
|
|
Associates : |
·
Freesia Investment and Trading Company Limited ·
Goodteam Investment and Trading Company Private
Limited ·
Alfa Mercantile Limited ·
Morning Glory Leasing and Finance Limited ·
Iris Designs Private Limited ·
Orient Rave Mercantile Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs. 150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10530000 |
Equity Shares |
Rs.10/- each |
Rs. 105.300
Millions |
|
|
|
|
|
NOTES
Out of the above
Issued, Subscribed and Paid-up Capital:
81,90,000 (P.Y.-81,90,000)
Equity Shares of Rs. 10/- each are issued as fully paid up bonus shares by way
of
Capitalization
- Rs. 55,500
(P.Y.-55,500) from Capital Reserve,
- Rs. 1,44,00,000
(P.Y.-1,44,00,000) from Share Premium,
- Rs.6,74,44,500
(P.Y.-6,74,44,500) from General Reserve.
AS ON 02.09.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
55000000 |
Equity Shares |
Rs.10/- each |
Rs. 550.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
13573451 |
Equity Shares |
Rs.10/- each |
Rs. 135.735
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 |
105.300 |
105.300 |
105.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
582.920 |
509.759 |
419.725 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
688.220 |
615.059 |
525.025 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
724.457 |
535.331 |
591.872 |
|
|
2] Unsecured Loans |
303.584 |
102.748 |
132.732 |
|
|
TOTAL BORROWING |
1028.041 |
638.079 |
724.604 |
|
|
DEFERRED TAX LIABILITIES |
45.082 |
54.531 |
67.141 |
|
|
|
|
|
|
|
|
TOTAL |
1761.343 |
1307.669 |
1316.770 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
790.827 |
808.059 |
875.369 |
|
|
Capital work-in-progress |
15.486 |
2.604 |
7.274 |
|
|
|
|
|
|
|
|
INVESTMENT |
200.782 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
690.525
|
573.652
|
413.730 |
|
|
Sundry Debtors |
403.170
|
316.049
|
263.397 |
|
|
Cash & Bank Balances |
18.942
|
15.995
|
11.884 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
301.365
|
134.394
|
118.782 |
|
Total
Current Assets |
1414.002
|
1040.090 |
807.793 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
409.232
|
295.946
|
184.965 |
|
|
Other Current Liabilities |
219.933
|
217.223
|
168.337 |
|
|
Provisions |
30.589
|
29.915
|
20.364 |
|
Total
Current Liabilities |
659.754
|
543.084 |
373.666 |
|
|
Net Current Assets |
754.248
|
497.006
|
434.127 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1761.343 |
1307.669 |
1316.770 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2896.368 |
2539.351 |
2241.430 |
|
|
|
Other Income |
89.898 |
21.191 |
15.237 |
|
|
|
TOTAL (A) |
2986.266 |
2560.542 |
2256.667 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases (Traded Goods) |
659.396 |
362.592 |
125.420 |
|
|
|
Manufacturing and Other Expenses |
2119.621 |
1992.603 |
1830.872 |
|
|
|
Increase / (Decrease) in stocks |
(118.500) |
(145.604) |
(6.112) |
|
|
|
TOTAL (B) |
2660.517 |
2209.591 |
1950.180 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
325.749 |
350.951 |
306.487 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
83.225 |
67.623 |
97.653 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
242.524 |
283.328 |
208.834 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
97.788 |
108.212 |
106.262 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
144.736 |
175.116 |
102.572 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
47.037 |
59.288 |
38.885 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
97.699 |
115.828 |
63.687 |
|
|
|
|
|
|
|
|
|
|
Income Tax
Adjustments for earlier years |
0.019 |
(1.236) |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
239.254 |
199.220 |
164.012 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
21.060 |
21.060 |
15.795 |
|
|
|
Provision for Tax on Dividend |
3.498 |
3.498 |
2.684 |
|
|
|
Transfer to General Reserve |
50.000 |
50.000 |
10.000 |
|
|
BALANCE CARRIED
TO THE B/S |
262.414 |
239.254 |
199.220 |
|
|
|
|
|
|
|
|
|
|
EXPORT VALUE |
80.366 |
6.692 |
2.748 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
58.827 |
36.461 |
39.254 |
|
|
|
Stores & Spares |
35.227 |
47.157 |
40.051 |
|
|
|
Finished Goods |
7.966 |
0.000 |
0.000 |
|
|
|
Capital Goods |
6.921 |
15.285 |
2.433 |
|
|
TOTAL IMPORTS |
108.941 |
98.903 |
81.738 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.28 |
10.88 |
6.05 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
716.700 |
891.200 |
904.200 |
1554.700 |
|
Total Expenditure |
655.300 |
806.300 |
837.800 |
1404.200 |
|
PBIDT (Excl OI) |
61.400 |
84.900 |
66.400 |
150.500 |
|
Other Income |
0.000 |
0.000 |
0.000 |
12.800 |
|
Operating Profit |
61.400 |
84.900 |
66.400 |
163.300 |
|
Interest |
23.900 |
24.700 |
27.100 |
57.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
(1.800) |
|
PBDT |
37.500 |
60.200 |
39.300 |
104.100 |
|
Depreciation |
19.800 |
20.200 |
20.400 |
47.000 |
|
Profit Before Tax |
17.700 |
40.000 |
18.900 |
57.100 |
|
Tax |
(1.800) |
9.300 |
2.800 |
(29.300) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
19.500 |
30.700 |
16.100 |
86.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
19.500 |
30.700 |
16.100 |
86.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.27
|
4.52 |
2.82 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.00
|
6.90 |
4.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.56
|
9.48 |
6.09 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.28 |
0.20 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.52
|
2.01 |
2.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.14
|
1.92 |
2.16 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
----- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
OPERATING RESULTS
The Company
maintained its growth momentum with continuous thrust on product innovation,
display and branding. Cumulative Brand recognition and wide range of product offerings
in all spheres of customer segments resulted in 16% growth in terms of sales
turnover making it to Rs. 3119.700 Millions as compared to Rs. 2697.500
Millions in previous year. During the year the Company’s export sales showed
tremendous growth and stood at Rs. 86.000 Millions as compare to Rs. 6.700
Millions in previous year.
During the
financial year, as a significant part of Company’s Marketing Strategy, In Shop
Branding has been done over 25 retail outlets across the country simultaneously
with hoarding and highway wall painting campaign. “Orient Europa” brand was
promoted by way of print advertising in major Hindi, English and regional
language dailies and as well as premium lifestyle magazines. The products of
the Company were displayed at 11 Home Town locations across the Country.
ESTABLISHMENT OF
IMPORT BUSINESS UNDER “ORIENT INTERNATIONAL”
During the last
quarter of Financial Year 2010-11, the Company has established and aggressively
entered the business of imported premium tiles, under the sub brand ‘Orient
International’. The company has already appointed distributor in North India
and has finalized orders to be placed with some European Companies on an
exclusive basis. Orient International is expected to become a significant
growth and profitability driver in the years to come.
INORGANIC
EXPANSION
During the
financial year, the Company has, as a strategic step towards expansion of
Company’s operations, acquired 68.31% stake in Bell Ceramics Limited. (BCL) and
BCL became the Company’s subsidiary w.e.f. 29th December, 2010. BCL, as a
company was started in the year 1985 with an object to manufacture ceramic
glazed tiles. It has two strategically located plants in Dora, Gujarat and Hozkote,
Karnataka with a combined installed capacity of 144.50 lacs sq. mtrs. BCL’s
equity shares are listed on Bombay and National Stock Exchanges.
The Company’s
plant is located at North India and has considerable market share in North and
East India market whereas BCL has plants in West and South India and strong
market presence there at. This translates into excellent synergy for the
combined business and makes the ideal platform for the Company to gain market
share rapidly and profitably in the rich tile consuming geographies of South
and West India via its plants and focused distribution network.
The change in
management and integration of operations of both the Companies has already
started showing promising prospects as is evident from the fact that BCL has
registered a growth of 14% in sales to Rs. 468.200 Millions in the quarter
ended 31st March, 2011 as compared to Rs. 411.900 Millions in previous year’s
corresponding quarter and Net profit stood at Rs. 31.300 Millions as compared
to a loss of Rs. 23.600 Millions in previous year’s corresponding quarter. This
is a remarkable turnaround in an extremely short period of time.
To avail the
maximum benefits out of this acquisition and for strengthening leadership in
the industry, in terms of the asset base, revenues, product range, production
volumes and market share of the combined entity, the Board of Directors of the
Company has approved a Scheme of Amalgamation of Bell Ceramics Limited with the
Company. This amalgamation will also result in greater efficiency in cash
management and will maximize overall shareholder value.
MANAGEMENT
DISCUSSION AND ANALYSIS
AS PER THE
REQUIREMENT OF CLAUSE 49 OF THE LISTING AGREEMENT THE MANAGEMENT DISCUSSION AND
ANALYSIS REPORT IS AS UNDER:
GLOBAL TILE
INDUSTRY
The most apparent
trend in the manufacturing sector is the geographical shift in tile production
from the industry’s traditional European base to the emerging economies of
Asia, North Africa and the Middle East. The downturn was mainly confined to the
member states of the European Union (EU) including Spain and Italy which
registered a collective decline of 354 million square metres. Twenty-seven EU
nations produced 1,076 million square metres of ceramic tile, a figure that
represents a 24.8 per cent drop in total output.
Since 2009, Asia
(including the Middle East) furthered its influence in the production sector,
accounting for approximately 2/3rd of the world’s total ceramic tile
production. Asian manufacturers increased their productivity by more than seven
percent, ultimately making 5,542 million square metres of tile in the calendar
year. China once again confirmed its status as the world’s leading tile
producer, with its vast industrial base creating 3,600 million square metres of
product. It is astonishing to think that China alone is responsible for nearly
two-thirds of Asia’s tile production and 42.3 per cent of the tile industry’s
global output. A discernible pattern is emerging in China’s production habits
as the quantity of tiles produced in the People’s Republic has increased by 200
million square metres in each of the last five years.
The last two years
have seen a remarkable convergence between tile production and consumption. In
2004, the gap between the two was as high as 370 million square metres. By
2009, this figure had fallen to only 55 million square metres, with
manufacturers and suppliers mindful of adding to existing warehouse stocks. As
production slumped by the smallest of margins, worldwide consumption rose by
1.3 per cent to an all-time high of 8,460 million square metres.
INDIAN TILE
INDUSTRY
India’s tile
manufacturing sector is expanding rapidly and has reached an all-time high of
490 million square metres.
The Indian Ceramic
Tile Industry has been growing at a healthy rate of approx 15% per annum. It’s
total turnover is estimated at Rs. 85000.000 to Rs. 90000.000 Millions out of
which unorganized sector comprises Rs. 35000.000 Millions to Rs. 40000.000
Millions. The ceramic tile industry in India has followed similar trends
internationally which have been characterized by excess capacities and falling
margins. Countries like Malaysia, Thailand, Indonesia, Sri Lanka and Vietnam
are setting up their own plants. China has emerged as a major competitor.
Producers from Spain and Italy have the advantage of lower transportation costs
while exporting to USA and Germany. In India, the per capita consumption is as
low as 0.42 square meters per person compared to China at 2.26 square meters
per person. Rising disposable incomes of the growing middle class and 40
million units of housing shortage hold out a great potential.
Asia’s production
of tile is 65.1% of total production of whole world. As the world’s third
largest manufacturer and consumer of ceramic tile, India has a telling effect
on the industry’s performance, despite the fact that few of its products are
exported or used overseas. The Indian Industry has developed an export market
although at the lower end. In volume it constitutes less than half a percent of
the global market. (Presently India does not figure in the list of major
exporting countries). But this reality could change as Indian exports are
rising at the rate of 15% per annum. The top-end of the global export market is
presently dominated by Italy (40.8%) and Spain (26.4%). India is looking for
opportunities in export of tiles to Pakistan, Nepal, Bangladesh and Sri Lanka
and looking forward to seek Government’s support for that.
OUTLOOK
The Tile market is
growing and the demand for tiles is continuously increasing. The primary
drivers of the tile market is the robust demand for Residential and Commercial
construction, including individual and apartment based housing. large
townships, and office spaces across a variety of sectors. There is a
significant demand supply gap in the Healthcare and Hospitality sectors and
they foresee massive construction over the next few years which will further
fuel the demand for high quality tiles. Over the next few years, the refurbishment
market will also contribute signficantly to the demand for ceramic tiles. With
the growing number of malls and growth in housing sector, usage of ceramic
tiles in the Country is increasing rapidly. Tiles are now the preferred choice
in infrastructure projects such as at Airports and Railway Stations.
SEGMENT WISE OR
PRODUCT WISE PERFORMANCE
The Company deals
with products which come under one segment only i.e. ‘Ceramics Tiles’. The
Company’s rationalized brand portfolio includes ‘Orient Tiles’ and sub brands
viz., ‘Orient Europa’, ‘Orient Stiler’ and ‘Orient International’.
CONTINGENT LIABILITIES
(Rs.
In Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
a) Outstanding
Letter of Credit (Net of Margins) furnished in favour of suppliers |
99.989 |
39.683 |
|
b) Outstanding
Guarantees furnished by Company’s Banker in favour of Central Excise, Customs
and Others (Net of Margins) |
2.292 |
9.225 |
|
c) Custom/Excise
Duty / Service Tax / Income Tax / Sales Tax demands and Show Cause notice issued
against which company has preferred appeals. (During the year contingent
liability of Rs. 0.773 million pending in consumer court has been settled) |
12.853 |
16.221 |
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fittings
·
Vehicles
UNAUDITED
(STANDALONE) FINANCIAL RESULTS FOR THE QUARTER / NINE MONTHS ENDED ON
31.12.2011
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Nin Months Ended |
|
|
|
|
31.12.2011 (Unaudited) |
31.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
1. |
Net Sales |
900.900 |
886.000 |
2500.700 |
|
|
Other Operating Income |
3.300 |
5.200 |
11.600 |
|
|
Total Income |
904.300 |
891.200 |
2512.200 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
(Increase) / Decrease in Stock in Trade |
(69.300) |
(3.300) |
(138.800) |
|
|
Consumption of Raw Material |
200.000 |
170.300 |
530.300 |
|
|
Purchase of Traded Goods |
278.200 |
260.300 |
734.200 |
|
|
Power and Fuel |
172.100 |
133.600 |
429.200 |
|
|
Employees Cost |
93.400 |
91.700 |
275.500 |
|
|
Depreciation |
20.400 |
20.200 |
60.400 |
|
|
Other Expenditure |
163.400 |
153.700 |
469.200 |
|
|
Total |
858.300 |
826.500 |
2360.000 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
46.000 |
64.700 |
152.200 |
|
|
|
|
|
|
|
4. |
Other Income |
-- |
-- |
-- |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
46.000 |
64.700 |
152.200 |
|
|
|
|
|
|
|
6. |
Interest |
27.100 |
24.700 |
75.700 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
18.900 |
40.000 |
76.500 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
18.900 |
40.000 |
76.500 |
|
|
|
|
|
|
|
10. |
Tax Expense |
2.800 |
9.300 |
10.300 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
16.100 |
30.700 |
66.200 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
16.100 |
30.700 |
66.200 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
105.300 |
105.300 |
105.300 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
1.53 |
2.91 |
6.29 |
|
|
b) Basic and diluted EPS after extraordinary items |
1.53 |
2.91 |
6.29 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
2659726 |
2659726 |
2659726 |
|
|
- Percentage of Shareholding |
25.26 |
25.26 |
25.26 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
Nil |
Nl |
Nil |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
7870274 |
7870274 |
7870274 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
74.74 |
74.74 |
74.74 |
NOTES:
1. The above financial results have been reviewed by Audit Committee and
there after approved and taken on record by the Board of Directors in their
meeting held on 14th February 2012.
2. The Statutory Auditors have carried out limited review of the above
financial results.
3. The Company is engaged mainly in the business of tiles. Since all
activities are related to the main activity, there are no reportable segments
as per the requirement of AS-17.
4. The previous year figures have been re-grouped, re-arranged and
re-classified, wherever considered necessary.
5. One investor complaint was pending at the beginning of the quarter as on 01.10.2011.
no investor complaint was received during the Quarter and none was pending at
the end of the Quarter as on 31.12.2011.
6. The process of amalgamation with subsidiary M/s Bell Ceramics Limited is
undergoing. Bell Ceramics Limited has carried forward losses therefore
provision of Minimum Alternate Tax has been provided.
7. The Hon’ble High court of Judicature at Allahabad has vide its order
dated 19.12.2011 granted it’s sanction to the Scheme of Amalgamation of Bell
Ceramics Limited with Orient Ceramics and Industries Limited in accordance with
the Company Court Rules, 1959. The Hon’ble Court of Gujarat at Ahmedabad has
sanctioned the Scheme of Amalgamation of Bell Ceramics Limited with Orient
Ceramics And Industries Limited, however, the final order from Hon’ble High
Court of Gujarat is awaited.
WEBSITE DETAILS
MILESTONES
Orient's journey has been truly extraordinary. Every path a new vision. Every
destination a new milestone.
1977 : Incorporated as a public limited company.
1993 : Mr. M.K. Daga, veteran tile technologist takes over the
management.
1994 : Joins forces with SACMI, Impianti SPA, Italy for technical
interaction.
2000 : 1st bonus for shareholders issued in the ratio of 1:1.
2004 : Accredited with ISO 9001:2000 and OHSAS 18000:1999.
2007 : Achieves turnover of 200 crores.
2008 : 1st Indian manufacturer to hire a European as Chief Product and
Solution Designer.
2009 : Enters the luxury home décor segment. Records the highest profit
growth in the industry.
2010 : Opens signature showrooms: GK-II - New Delhi, Faridabad,
Chandigarh, Kolkata.
2010 : Orient acquires Bell Ceramics.
2011 : Launch Of Orient International.
2011 : Awarded Power Brand Status.
BOARD OF DIRECTORS
Mr. Mahendra K. Daga - Chairman and Managing Director
A successful businessman and a sound
technocrat, Mr. Mahendra K. Daga's
name is synonymous with the tiles industry. He has vast experience in erecting,
commissioning and successfully managing various multi location tiles plants,
and is acclaimed as an authority in this field. He has successfully
commissioned various Ceramic Tile Plants / Ceramic Refractories / Ceramic
Transfers at various locations.
He takes an active part in overall functional areas of the Company. Under the
overalls upper vision of the Board of Directors, he has been instrumental in
taking the company from strength to strength.
Mr. Daga is a Founder member of
the Indian Council of Ceramic Tiles and Sanitaryware (ICCTAS), the apex body in
India representing the Ceramic Tile Industry. He has also represented India as
one of the eight speakers from all over the world at the “International
Meeting on Ceramic Industry” organised by Assciazione Costrullori Italiani
Machine Attrezzature per Ceramica, at Modena, Italy on 26th May, 2000.
He is an environmentalist having foreseen the related problems of pollution by
forbidden smoking, falling of trees and conservation of water in all his
organizations as early as 1971. He occasionally delivers talks on horticulture
and preservation of nature.
MANAGEMENT AND ORGANISATION
The overall management of the Company is vested with the Board of Directors,
which comprises of people with rich experience in diverse fields:
Mr. Madhur Daga – (Executive Director)
Mr. Madhur Daga is Executive Director, Orient Bell Limited. Mr. Daga graduated
in 1993 with a BBA degree from the University of Southern California (USC), Los
Angeles, US. In 1997, he completed his post graduation with a degree in
International Corporate Finance from the University of New South Wales (UNSW),
Sydney, Australia. After completing his graduation, Mr. Madhur Daga worked in
the US for a year and later joined Orient Ceramics after completing his PG.
Subsequently, he pursued his entrepreneurial skills and set up a software
business, which he exited in the year 2005. He then rejoined Orient Ceramics as
Executive Director. Although responsible for the overall management of the
company in his present role as Executive Director, Mr. Daga spends most of his
time leading Orient's Product Innovation Team and interacting with customers.
Mr. Madhur Daga has more than fifteen years of work experience. An avid golfer,
Mr. Daga also has a keen interest in music and likes to read business and
management books.
Mr. R. N. Bansal - (Director and A Practicing Chartered Accountant)
Mr. Bansal is also a retired member of Company Law board and one of the most
recognized person in the Company Law matters. Being on the board of various
other well-known companies, he plays a valuable role in advising Orient on Financial
and legal matters from time to time.
Mr. Dhruv M Sawhney - (Non-Executive And Independent Director)
Director with the company, Mr. Sawhney is a well-known Industrialist and is
also the Chairman of ‘Triveni’ Group of Companies.
Mr. N.R Srinivasan - (Non-Executive And Independent Director)
An M.Sc (Tech) and a Fellow of the Institute of Ceramics (UK), Mr. Srinivasan
is a well-known Ceramists and has represented various committees and delegation
sponsored by Government of India. The Board of Directors of the Company is ably
assisted by a team of experienced professionals.
Mr. K.M. Pai - (Additional Director)
Mr. K. M. Pai is M. Sc, MBA Finance from IIM, Bangalore, ACMA, ACS with around
40 years of rich experience and proficiency to manage the business affairs of a
Company as a whole. He was lastly associated with M/s Bell Ceramics Limited
(“BCL”) as Managing Director looking after overall working of BCL.
Mr. P.M. Mathai - (Additional Director)
Mr. Mathai is a B. Tech. Chemical Engineering from IIT Kanpur, PGDBM from IIM,
Kolkata. He brings more than 3 decades of rich professional experience across
several functional areas including but not limited to Sales, Marketing, HR,
Profit Centre Management and leading large teams to successfully complete
global scale projects. After starting his career and spending more than a
decade with Voltas, Mr. Mathai subsequently spent over 20 years at
GlaxoSmithKline and retired as part of their Global Director Grade.
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. 55.34 |
|
|
1 |
Rs. 86.45 |
|
Euro |
1 |
Rs. 68.04 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
49 |
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.