MIRA
INFORM REPORT
|
Report Date : |
27.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
SOMANY CERAMICS LIMITED (w.e.f. 2007) |
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Formerly Known
As : |
Somany Pilkington limited |
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Registered
Office : |
82/19, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
20.01.1968 |
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Com. Reg. No.: |
55-005169 |
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Capital
Investment / Paid-up Capital : |
Rs. 68.994
Millions |
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CIN No.: [Company Identification
No.] |
L40200dl1968plc005169 |
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|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer
of Ceramic Tiles. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (51) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 4000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established, reputed company having fine track.
Financial position appears to be sound. Trade relations are reported to be
fair. Business is active. Payments are reported to be regular. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
82/19, |
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E-Mail : |
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Website : |
http://www.somanyceramics.com |
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Corporate Office : |
302/303, Sakar – 1, Opposite Gandhigram Railway Station, Off |
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Branch Office: |
33, |
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Marketing Offices: |
M-41/2, Speed Bird House, Tel : 91-11 - 2341 7222-25 / 43365000 Email : marketing@somanyceramics.com
Ahmedabad Office no: 7 to 14, 4th floor, Agrawal Mall, Opposite Sola Bhagwat
Vidhyapeeth, S. G. Road, Sola Ahmedabad – 380060, India Tel : 91-79 - 27661104 Fax : 91-79 - 27661104 Email : marketing@somanyceramics.com
6th cross road,
Pampanagar Yeswanthpura, ward no. 3, Tel: 080 – 23575736 Fax: 080-23575726 Email: cheriyan@somanyceramics.com
29/370, Ph: 0484-4041435, 4041436 Fax: 0484-4041437 email: planetcochin@somanyceramics.com
Guwahati 514, Tel: 0361 - 2736665 Email: prasanjit@somanyceramics.com Kolkata Tel: 033 - 22485668/22487406 Fax: 033 - 22487045 Email: eastcoordinator@somanyceramics.com
Mumbai 27-E Laxmi
Industrial Estate, Andheri(West), Mumbai, Tel: 022 - 26344314 Email: splmumbai@somanytiles.co.in
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Plants : |
Kadi Works 14, G.I.D.C. Industrial Estate, District
Mehsana, Kadi, Fax 91-2764 – 242169/ 70/ 263011/ 326408 Email :
marketing@splkadi.com Haryana P.O. – Kassar – 124 507, Bahadurgarh,
Distt. Jhajjar (Haryana) Fax
91-1276 - 241006 / 1011 Email : marketing@somanyceramics.com |
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Depot/Warehouses: |
Located at:
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Shreekant Somany |
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Designation : |
Chairman and Managing Director
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Date of Birth/Age : |
63 years |
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Qualification : |
B.Sc |
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Experience : |
40 years |
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Other Directorship: |
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Name : |
Mr. Abhishek Somany |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
39 years |
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Qualification : |
BBA ( |
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Experience : |
15 years |
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Other Directorship: |
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Name : |
Mr. G L Sultania |
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Designation : |
Director |
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Name : |
Mr. R L Gaggar |
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Designation : |
Director |
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Name : |
Mr. R K Daga |
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Designation : |
Director |
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Other Directorship: |
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Name : |
Mr. Salil Singhal |
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Designation : |
Director |
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Name : |
Mr. Ravinder Nath |
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Designation : |
Director |
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Other Directorship: |
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Name : |
Mr. Y. K. Alagh |
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Designation : |
Director |
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Name : |
Mr. Sandeep Kumar |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ambrish Julka |
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Designation : |
Company Secretary |
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Name : |
Mr. G. G Trivedi |
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Designation : |
Executive Officer |
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Name : |
Mr. A K Beejawat |
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Designation : |
President |
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Name : |
Mr. T K Jena |
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Designation : |
Vice President (Sales and Marketing) |
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Name : |
Mr. R K Lakhotia |
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Designation : |
Vice President (Finance) |
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Name : |
Mr. Ketan Dave |
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Designation : |
Vice President (Technical) |
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Name : |
Mr. R P Mittal |
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Designation : |
Vice President (Corporate
Affairs) |
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Name : |
L. Sunder Rajan |
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Designation : |
Vice President (Commercial) |
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Name : |
Shyam Maheshwari |
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Designation : |
Vice President (Strategic Business
Operation) |
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Name : |
D. K. Arora |
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Designation : |
General Manager (Materials) |
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Name : |
Biju Sebastian |
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Designation : |
General Manager (Corporate HR) |
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Name : |
Satyendra Gautam |
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Designation : |
General Manager (Tile Master, Adhesives and
Project Sales) |
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Name : |
Dalip Dudani |
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Designation : |
General Manager (Aquaware and CP Fittings) |
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Name : |
Amit Sahai |
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Designation : |
General Manager (Sales and Marketing) |
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Name : |
Vireshwar Sharma |
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Designation : |
General Manager (Technical) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
Individual / Hindu Undivided Family |
3125465 |
9.06 |
|
Bodies Corporate |
18713895 |
54.25 |
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|
21839360 |
63.31 |
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Total shareholding of Promoter and Promoter Group (A) |
21839360 |
63.31 |
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(B) Public Shareholding |
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|
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|
250 |
- |
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|
10030 |
0.03 |
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|
192000 |
0.56 |
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|
37389 |
0.11 |
|
|
239669 |
0.69 |
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|
|
|
|
|
|
|
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|
2517043 |
7.30 |
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|
|
|
|
|
5184452 |
15.03 |
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|
3333125 |
9.66 |
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|
|
|
|
|
|
|
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|
1383351 |
4.01 |
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|
100006 |
0.29 |
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|
1950 |
0.01 |
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|
3895 |
0.01 |
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|
12417971 |
36.00 |
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|
|
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Total Public shareholding (B) |
12657640 |
36.69 |
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|
|
|
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Total (A)+(B) |
34497000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
34497000 |
100.00 |
(1) Indian
Mutual Funds / UTI
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer
of Ceramic Tiles. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Manufacturing |
|
|
|
|
|
Glazed / Vitrified Porcelain Tiles |
MT |
Not applicable |
325,700 |
296,819 |
|
Tiles |
SQM |
Not applicable |
-- |
11,513,376 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Lodha and Company Chartered Accountants |
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Joint Venture: |
Somany Keraben Private Limited |
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Associate: |
Scope Vinimoy Private Limited |
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Subsidiaries : |
·
SR Continental Limited
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|
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Enterprises over which relative of Key Management
personnel exercise significant influence: |
Yogi Ceramics Private Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Shares |
Rs.2/- each |
Rs. 250.000 Millions |
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|
|
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
34497000 |
Equity Shares |
Rs.2/- each |
Rs. 68.994
Millions |
|
|
|
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|
Notes:-
Including 30,497,000 Equity Shares allotted as fully paid up
Bonus Shares by capitalization of General Reserve, Share Premium and Capital
Redemption Reserve
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 |
68.994 |
68.994 |
68.994 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
955.709 |
749.497 |
569.167 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1024.703 |
818.491 |
638.161 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1832.989 |
1267.743 |
1281.210 |
|
|
2] Unsecured Loans |
111.410 |
354.553 |
91.323 |
|
|
TOTAL BORROWING |
1944.399 |
1622.296 |
1372.533 |
|
|
DEFERRED TAX LIABILITIES |
256.644 |
232.006 |
251.839 |
|
|
|
|
|
|
|
|
TOTAL |
3225.746 |
2672.793 |
2262.533 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1731.029 |
1301.034 |
1299.326 |
|
|
Capital work-in-progress |
28.238 |
237.395 |
0.852 |
|
|
|
|
|
|
|
|
INVESTMENT |
17.196 |
17.275 |
8.125 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
976.412
|
709.468 |
541.942 |
|
|
Sundry Debtors |
1293.279
|
1009.969 |
812.184 |
|
|
Cash & Bank Balances |
147.220
|
147.361 |
92.939 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
602.423
|
608.998 |
312.956 |
|
Total
Current Assets |
3019.334
|
2475.796 |
1760.021 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
966.185
|
847.572 |
500.332 |
|
|
Other Current Liabilities |
283.090
|
276.835 |
206.670 |
|
|
Provisions |
320.776
|
234.300 |
98.789 |
|
Total
Current Liabilities |
1570.051
|
1358.707 |
805.791 |
|
|
Net Current Assets |
1449.283
|
1117.089 |
954.230 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3225.746 |
2672.793 |
2262.533 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7105.771 |
5369.449 |
4420.893 |
|
|
|
Other Income |
43.451 |
29.153 |
15.824 |
|
|
|
TOTAL (A) |
7149.222 |
5398.602 |
4436.717 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Manufacturing & Other Expenses |
6460.005 |
4815.388 |
4001.366 |
|
|
|
TOTAL (B) |
6460.005 |
4815.388 |
4001.366 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
689.217 |
583.214 |
435.351 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
179.453 |
132.904 |
160.293 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
509.764 |
450.310 |
275.058 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
172.647 |
144.748 |
140.395 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
337.117 |
305.562 |
134.663 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
102.840 |
101.016 |
47.275 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
234.277 |
204.546 |
87.388 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
437.012 |
277.182 |
208.902 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
25.000 |
20.500 |
7.000 |
|
|
|
Proposed Dividend on Equity Shares |
24.148 |
20.698 |
10.349 |
|
|
|
Corporate Dividend Tax thereon |
3.918 |
3.518 |
1.759 |
|
|
BALANCE CARRIED
TO THE B/S |
618.223 |
437.012 |
277.182 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports on FOB Basis |
72.795 |
85.194 |
96.250 |
|
|
TOTAL EARNINGS |
72.795 |
85.194 |
96.250 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
45.623 |
32.895 |
29.774 |
|
|
|
Stores & Spares |
62.421 |
86.762 |
78.635 |
|
|
|
Capital Goods |
23.078 |
183.970 |
12.891 |
|
|
|
Trading Goods |
363.715 |
256.594 |
148.278 |
|
|
TOTAL IMPORTS |
494.837 |
560.221 |
269.578 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
6.79 |
5.93 |
12.67 |
|
QUARTERLY / SUMMARISED
RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st Quarter |
2nd
Quarter |
3rd
Quarter |
4th Quarter |
|
Net Sales |
1720.700 |
2076.600 |
2174.600 |
2762.500 |
|
Total Expenditure |
1548.800 |
1899.600 |
2005.710 |
2529.400 |
|
PBIDT (Excl OI) |
171.900 |
177.000 |
168.890 |
233.100 |
|
Other Income |
0.100 |
0.100 |
0.200 |
3.200 |
|
Operating Profit |
172.00 |
177.100 |
169.090 |
236.300 |
|
Interest |
51.400 |
50.100 |
51.190 |
61.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
(1.700) |
|
PBDT |
120.600 |
127.000 |
117.900 |
173.600 |
|
Depreciation |
43.100 |
44.000 |
46.800 |
48.300 |
|
Profit Before Tax |
77.500 |
83.000 |
71.100 |
125.300 |
|
Tax |
19.400 |
25.500 |
23.800 |
40.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
58.100 |
57.500 |
47.300 |
84.600 |
|
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 |
58.100 |
57.500 |
47.300 |
84.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
3.28
|
3.79 |
1.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.74
|
5.69 |
3.04 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.10
|
8.09 |
4.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.33
|
0.37 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.68
|
3.93 |
3.81 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.93
|
1.82 |
2.18 |
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
|
Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
No |
|
No. of Employees |
Yes |
|
Name of Person Contacted |
No |
|
Designation of Contact person |
No |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
----------- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
----------- |
|
Litigations that the firm/ Promoters Involved in |
------------ |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
----------- |
|
Buyer visit details |
----------- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
OPERATING RESULTS
The Company maintained growth momentum in the current year also. Expansion in manufacturing capacity and outsourcing business backed by strong market demand for the Company’s products across all segments led to sales turnover growing from Rs. 5630.200 Millions in the previous year to Rs. 7517.800 Millions, a growth of 33.53%. The profit margins however remained under pressure throughout the year mainly due to rising costs of energy, inputs and excise duty. This resulted in the profit before and after tax remaining at a level of Rs. 337.100 Millions and Rs. 234.300 Millions, registering a growth of 10.31% and 14.52% respectively over the previous year.
EXPANSION/DIVERSIFICATION
The expansion at Kassar (Haryana) plant to additionally produce about 2.45 million square meters of tiles per annum has been commissioned in the year under review and production started from 14th June, 2010. With this expansion, the manufacturing capacity of the Company has increased to about 19.15 millions square meters per annum. In addition, the Company also commissioned three new gas based power generators of about one MW each with heat recovery units, becoming operational from June, 2010. Further, the Company entered into the business of outsourcing and sale of bathroom fittings during the year.
SHARE CAPITAL
During the year under review, the existing fully paid up equity share of Rs. 10 each was sub-divided/split into five fully paid up equity shares of Rs. 2 each effective from 11th November, 2010.
Further, unissued preference capital of Rs. 100.000 Millions was cancelled and the equity share capital of the Company increased to that extent.
Further, keeping future business growth requirements in mind, the Company also obtained the permission to raise funds through QIPs and/or private placement, among others, to the extent of Rs. 1000.000 million and also to raise the limit of investment by NRI/foreign institutional investors, among others, from 30% to 40%.
INDUSTRIAL SCENARIO
AND FUTURE OUTLOOK
The ceramic tile industry in the country grew in double digits for the last couple of years. This trend is likely to continue due to rise in the income levels of middle class and huge investments expected in real estate and infrastructure in the 12th Five Year Plan (2012-17).
Due to a proactive approach and sound marketing strategies, the Company was able to outperform the industry average of 12-15% and has grown at a five year-CAGR of 25.12%.
The pressure on profit margins is likely to remain due to
(i) Increase in various cost components like raw materials, energy, manpower and interest and
(ii) The competitive pressures due to continuing creation/expansion of more capacities.
The creation of more capacities by the unbranded players continues to be an opportunity for the leading manufacturers of branded products, like the Company, to expand and further strengthen their outsourcing business.
SUBSIDIARY/JOINT VENTURE COMPANIES
SR Continental Limited, a wholly-owned subsidiary company, continued its business of manufacturing colours used in ceramic industry and trading/outsourcing of tile adhesive/grouts. Additionally, the Company has also started business of outsourcing and selling of ceramic tiles.
Somany Global Limited, another wholly-owned subsidiary company continued its operations of selling imported and other high-end tiles and sanitary wares through its own and franchisee retail showrooms named ‘SOMANY GLOBAL’.
The Annual Report does not contain the financial statement of their subsidiaries pursuant to circular no 2/2011 dated 8th February, 2011 issued by the Ministry of Corporate Affairs. The Board of Directors hereby undertake that the audited accounts and related information of subsidiary companies, where applicable, will be made available upon request. The said documents will also be available for inspection during business hours at registered office of the Company as well as at the registered office of the subsidiary companies.
There was no major business activity in M/s Somany Keraben
Private Limited, a 50:50 joint venture
between the Company and M/s
The statement required under Section 212 of the Companies Act, 1956 in respect of subsidiary companies is appended.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMY GROWTH
The global economy witnessed a negative growth of 0.6% in 2009 and rebounded to 4.9% in 2010 and is expected to grow at 4.2% in 2011, owing to rising oil and commodity prices and the European debt crisis The Indian economy grew 8% in 2009-10 and 8.6% in 2010-11.
GLOBAL CERAMIC TILES
INDUSTRY
The world economic slowdown in 2009 adversely affected the ceramic tiles sector, and the world tile production fell for the first time in the sector’s industrial history.
Production: World
tile production dropped to 8,515 mn sqm in 2009 against 8,520 mn sqm in 2008.
There was a geographical shift in tile production from the industry’s
traditional European base to the nascent economies of Asia, North Africa and
the
Consumption: The
world tile consumption grew only 1.3% to 8,460 mn sqm in 2009 compared with
3.6% in 2008 and an average of 8% during the previous five years. European tile
demand declined by 18.8%, while
INDIAN CERAMIC
INDUSTRY
The Indian ceramic tile industry is estimated at Rs. 14,
0000.000 Millions, growing at a 15% CAGR per annum over the last five years,
except 2009, beating the global average growth of 6% per annum. The industry is
estimated to be equally divided between branded and unbranded products. The
manufacturing of unbranded products is concentrated in Morbi (
Production:
Consumption: Rapid Indian economy growth at around 8% over the past few years, resulted in rising disposable incomes, affordability and urbanisation, leading to a surge in ceramic tile consumption. The annual ceramic tile consumption grew to 494 mn sqm in 2009 against 403 mn sqm in the previous year.
INDUSTRY GROWTH
DRIVERS
Rising discretionary spending: Per capita income grew from ` 46,492 in 2009-10 to ` 54,527 in 2010-11, increasing affordability in the hands of the Indian consumers, who are gradually shifting to lifestyle products. Discretionary spending in premium products is expected to increase to 70% of household annual spending by 2025.
Growing urbanisation: Over the last decade,
Housing shortage: The housing shortage in
Replacement demand: With an increase in disposable incomes, urbanisation and
lifestyle changes, consumers are replacing traditional low end tiles with
superior quality. The demand from the replacement market is a mere 12% in
Growing middle-class: The Indian middleclass (annual income of ` Rs. 0.350 Million to Rs. 1.700 Millions) is expected to increase from 160 million people in 2009-10 to 267 million people by 2015-16. By 2025-26, the number of middle-class Indian households is likely to double from 2015-16 levels to 547 million individuals
Shifting preference towards tiles: A growing awareness of tile usage and exposure to global trends through the electronic media, led to a transformation in the concept of tile usage. From a convenient product, tiles are now fashion and lifestyle products.
Favourable macro-economic policies: Availability of affordable credit propelled
a growth in the Indian housing space, with housing loans increasing from ` 2
trillion in 2006 to ` 2.9 trillion in 2009
Low per capita consumption:
Commercial real estate: With the emergence of
Organised retail: The Indian retail sector is estimated at about US$ 500 billion in 2009-10. With increasing disposable income and rising aspirations, retail sector size is expected to reach US$ 900 billion by 2014. Further, retail space of 323 million sq. ft is expected to be added by 2012.
Hospitality sector: With
Airport modernisation: The government willinvest around US$ 7.5 billion for airport infrastructure development under the revised Eleventh Five Year Plan It plans to modernise, re-develop and upgrade around 80 airports. Further, the Airports Authority of India (AAI) will upgrade 35 non-metro airports in the country at an estimated cost of around US$ 1 billion and modernise the airports of various metros, owing to a growing thrust in the tourism industry and airport infrastructure development, providing a tremendous opportunity to tile manufacturers.
BOARD OF
DIRECTORS:
Shri Shreekant
Somany
Aged about 63
years, Shri Somany is a graduate and holds a Bachelor’s degree in science. He
has over three decades of rich experience in Ceramics Tiles, Sanitaryware and
Glass Industry. He has been on the Board of the Company since 1st September,
1992, and has taken innovative steps to make the organisation a world-class
Company in ceramic tiles. He played a significant role in the invention of the
Company’s patented product VC (Vielcraft) shield, which is a high-abrasion
resistant glaze tile. He contributes and holds prestigious offices in social
and intellectual organisations. He was a member of the CII Delegation to
Shri Abhishek
Somany
Aged about 39
years, Shri Somany has a Bachelor of Business Administration degree from
Mr. R. K. Daga
Aged about 72
years, holds Post Graduate degree in Business Management from
Mr. Ravinder Nath
Aged about 66
years, Shri Nath is B. Com (Hons.) LLB, International and Comparative Laws,
King’s College London, and
BUSINESS NETWORK
1. OWNED DISPLAY
CENTRES
Located at:
- Ahmedabad
- Bhubneshwar
- Mumbai
- Pune
2. GLOBAL
EXCLUSIVE
Located at:
- Haryana
- Jharkhand
- Jaipur
3. GLOBAL
SHOWROOMS
Located
at:
- Chennai
- Pune
4. GLOBAL STUDIO
Located at:
- Madhya
Pradesh
- Chhatisgarh
5. EXCLUSIVES
Located at:
- J & K
- Jharkhand
- Karnataka
- Kerala
- Nagaland
- Orissa
- Port Blair
- Rajasthan
- Uttar Pradesh
- Uttaranchal
- Tamil Nadu
6. STUDIO
Located at:
- Chhatisgarh
- Uttar Pradesh
- Jaipur
- Tamil Nadu
- Guwahati
- Mumbai
- Andhra
Pradesh
Contingent
liabilities
|
Particulars |
Rs. in million 31.03.2011 |
Rs. in million 31.03.2010 |
|
(A) Contingent
liabilities not provided for in respect of: (As certified by the Management) |
|
|
|
a) Claims and
other demands against the Company not acknowledged as debts. |
10.980 |
10.725 |
|
b) Sales Tax and
Purchase Tax demands etc. against which the Company has preferred appeals. |
16.476 |
4.583 |
|
c) Excise/Custom
duty and Service Tax demands and show cause notices issued against which the
Company/Department has preferred appeals/filed replies. |
39.087 |
40.745 |
|
d) Custom duty,
which may arise if obligation for exports is not fulfilled against import of
capital under EPCG. |
-- |
10.287 |
|
e) Disputed
Income Tax & Wealth Tax Demand (Excluding Penalty if any) |
12.266 |
11.379 |
|
f) Against the
imposition of Local Area Development Tax (LADT) levied by Haryana Government,
the Hon’ble Supreme Court of India vide its order dated 10th May, 2006 has
accepted the Company’s application for stay. Further Hon’ble Supreme Court
vide their order dated 30th October, 2009 stated the assesses to
file the LADT returns, however no recovery of tax will be made till further
order. Liability in this regard of ` 6.000 Millions have been provided in the
accounts up to year 2006-07. Pending, the final Order of the Hon’ble Supreme
Court on the above matter, no further provision for the same have been
considered necessary at this stage. |
31.897 |
25.935 |
|
(B) Bond
executed in favour of Sales Tax/Custom Authorities. |
2.500 |
2.500 |
|
(C) Bond/Guarantee
executed on behalf of other body corporate |
50.400 |
60.400 |
|
(D) As against a
term loan of Rs. 50.400 Millions (Previous Year Rs. 50.400 Millions) by a Financial Institution
to Schablona India Limited. (SIL), the Company has given an undertaking to
the former for non disposal of its shareholding in SIL. |
|
|
Fixed assets
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture, Fixture and
·
Office Equipments
·
Vehicles
·
Software
STATEMENT OF STANDALONE AUDITED RESULTS FOR THE QUARTER ENDED 31.03.2012
Rs. in Millions
|
SL. NO. |
PARTICULARS |
QUARTER ENDED |
YEAR ENDED |
|
|
|
|
31.03.2012 |
31.12.2011 |
31.03.2012 |
|
1. |
Income
from Operations |
|
|
|
|
|
( a) Gross Sales |
2917.800 |
2286.700 |
9211.000 |
|
|
( b) Net Sales /Income from operations (Net of excise duty) |
2758.600 |
2164.600 |
8703.600 |
|
|
(c) Other Operating Income |
3.900 |
9.600 |
28.700 |
|
|
Total income from operations (net) |
2762.500 |
2174.200 |
8732.300 |
|
2 |
Expenses |
|
|
|
|
a) |
Consumption of Raw Materials and Packing Material |
414.000 |
384.100 |
1531.800 |
|
b) |
Purchases of stock- in -Trade |
1051.500 |
906.100 |
3520.800 |
|
c) |
Changes in inventories of finished goods, work-in progress and
stock-in trade |
236.100 |
(56.600) |
3.000 |
|
d) |
Employees Cost |
170.000 |
168.700 |
655.200 |
|
e) |
Depreciation |
48.300 |
46.800 |
182.200 |
|
f) |
Stores and Spare Parts |
54.300 |
39.000 |
177.800 |
|
g) |
Power & Fuel |
303.700 |
304.800 |
1091.700 |
|
h) |
Other Expenses |
299.800 |
263.800 |
1015.300 |
|
|
Total Expenses |
2577.700 |
2056.700 |
8177.800 |
|
3 |
Profit from Operations before Other Income, finance costs and Exceptional Items (1-2) |
184.800 |
117.500 |
554.500 |
|
4 |
Other income |
3.200 |
2.100 |
10.600 |
|
5 |
Profit from ordinary activities before
finance costs and Exceptional Items (3 - 4) |
188.000 |
119.600 |
565.100 |
|
6 |
Interest |
61.000 |
48.500 |
206.500 |
|
7 |
Profit from ordinary activities after
finance costs but before Exceptional Items (5 - 6) |
127.000 |
71.100 |
358.600 |
|
8 |
Exceptional Items |
1.700 |
-- |
1.700 |
|
9 |
Profit from ordinary activities before tax
(7 - 8) |
125.300 |
71.100 |
356.900 |
|
10 |
Tax expenses |
32.500 |
25.000 |
112.500 |
|
|
-Deferred Tax |
8.200 |
(1.200) |
(3.100) |
|
|
- Tax for earlier years 1 0 |
-- |
-- |
-- |
|
11 |
Net Profit (9 - 10) |
84.600 |
47.300 |
247.500 |
|
12 |
Extraordinary Item (net of tax expense) |
-- |
-- |
-- |
|
13 |
Net Profit for the period (11 ± 12) |
84.600 |
47.300 |
247.500 |
|
|
Share of profit / (loss) of associates |
-- |
-- |
-- |
|
14 |
Minority Interest |
-- |
-- |
-- |
|
15 |
Net Profit after taxes, minority interest
and share of profit /(loss) of associates (13 + 14 + 15) |
84.600 |
47.300 |
247.500 |
|
16 |
Paid-up Equity Share Capital
(Face Value per Share (Rs.) |
69.000 |
69.000 |
69.000 |
|
17 |
Reserves excluding revaluation
reserves |
-- |
-- |
1171.200 |
|
18 |
Earnings per Share Basic and
Diluted (not annualised) (Rs.) |
|
|
|
|
|
-Cash |
4.09 |
2.69 |
12.37 |
|
|
-After tax |
2.45 |
1.37 |
7.17 |
|
19 |
Public shareholding |
|
|
|
|
|
No. of Shares |
12657640 |
12657640 |
12657640 |
|
|
Percentage of shareholding |
36.69 |
36.69 |
36.69 |
|
|
Promoters and promoter group
Shareholding a) Pledged/Encumbered |
|
|
|
|
|
-No. of Shares |
NIL |
NIL |
NIL |
|
|
-Percentage of shares (as a %
of the total |
NIL |
NIL |
NIL |
|
|
shareholding of promoter and
promoter group) |
|
|
|
|
|
-Percentage of shares (as a %
of the total share |
NIL |
NIL |
NIL |
|
|
capital of the company) |
|
|
|
|
|
b) Non-Encumbered |
|
|
|
|
|
-No. of Shares |
21839360 |
21839360 |
21839360 |
|
|
-Percentage of shares (as a %
of the total |
100% |
100% |
100% |
|
|
shareholding of promoter and
promoter group) |
|
|
|
|
|
-Percentage of shares (as a %
of the total share |
63.31% |
63.31% |
63.31% |
|
|
capital of the company) |
|
|
|
AUDITED STATEMENT
OF ASSETS AND LIABILITIES AS ON 31 MARCH 2012
Rs.
in Millions
|
Particulars |
As on 31.03.2012
|
|
EQUITY AND LIABILITIES |
|
|
SHAREHOLDERS FUNDS |
|
|
1] Share Capital |
69.000 |
|
2] Reserves & Surplus |
1171.200 |
|
Sub-total Shareholders' funds |
1240.200 |
|
Minority
Interest |
-- |
|
Non-current
liabilities |
|
|
Long-term borrowings |
668.500 |
|
Deferred tax liabilities (Net) |
253.500 |
|
Other long term liabilities |
142.000 |
|
Long term provisions |
22.900 |
|
Sub-total Non Current liabilities |
1086.900 |
|
Current Liabilities |
|
|
Short-term borrowings |
835.300 |
|
Trade payables |
1107.500 |
|
Other current liabilities |
563.000 |
|
Short-term provisions |
419.300 |
|
Sub-total Current liabilities |
2925.100 |
|
TOTAL - EQUITY AND LIABILITIES |
5252.200 |
|
|
|
|
ASSETS |
|
|
Non Current Assets |
|
|
Fixed Assets |
1939.700 |
|
Goodwill on consolidation |
-- |
|
Non-current investments |
59.500 |
|
Deferred tax assets (net) |
45.900 |
|
Long-term loans and advances |
0.000 |
|
Other non-current assets |
0.000 |
|
Sub-total Non
Current assets |
2045.100 |
|
Current assets |
|
|
Inventories |
985.100 |
|
Trade receivables |
1388.400 |
|
Cash and Bank Balance |
220.300 |
|
Short term loans and advances |
604.300 |
|
Other current assets |
9.000 |
|
Sub-total
Current assets |
3207.100 |
|
TOTAL ASSETS |
5252.200 |
Notes:
1. The business activity
of the Company falls within a single primary business segment viz 'Ceramic
Tiles and allied products' and hence there is no other reportable segment as
per Accounting Standard 17 'Segment Reporting' notified under Companies
(Accounting Standards) Rules, 2006.
2. The Board of
Directors have recommended a dividend of Rs. 0.80 per share (40%) on Equity
Shares for the year ended 31.03.2012.
3.In view of
option allowed by the ministry of corporate affairs vide its notification dated
29.12.2011 on Accounting Standard -11 “ The effects of changes in Foreign
Exchange Rates”, the company during the year has charged to cost of depreciable
assets the exchange difference on loan/ liability (long term foreign currency
monetary items) used for depreciable assets which were hitherto charged to the
statement of profit and loss. Accordingly, the exchange difference of Rs. 8.995
Millions has been charged to the cost of depreciable fixed assets and to the
extent profit for the year is higher.
4. In terms of
agreement dated 13th January 2012, the company has acquired 2.340 Million fully
paid up equity shares of Rs. 10 each at the rate of Rs 21.50 per share
amounting to Rs. 50.310 Millions representing 26% equity stake in M/s Vintage
Tiles Private Limited (VTPL). By this agreement the company is having right to
buy and sell in its own brand the entire production of about 2.650 Millions sqm
per annum of polished vitrified tiles from VTPL.
5. The company has
entered into a Memorandum of Understanding on 3rd April 2012 to acquire 26%
equity stake for Rs. 32.500 Millions in Commander Vitrified Private Ltd (CVPL)
which is setting up a plant in Morbi (
6. Figures of
previous period(s) have been regrouped / rearranged wherever necessary to
conform to this period's/quarter's classification.
7. The figures of
last quarter are the balancing figures between audited figures in respect of
the full financial year and published year to date figures upto the 3rd quarter
of the financial year.
8. The above results
were reviewed by the Audit Committee and approved by the Board of Directors in
its meeting held on 19/05/2012 and audited by statutory auditors.
AS PER WEB DETAILS
PROFILE
The history of a company which has captured the memories of
millions of its customers as a strong witness to every moment of their joy and
emotions bears testimony to the durability of its products. Somany Ceramics
Limited is one such company which began as a vision of the future and an
adapting, ever-changing companion to every customer ever since and is now a
trail-blazer for everyone to follow. Somany Ceramics with the plants in Kadi (
Since its inception in 1969 as Somany Pilkington's, it was his dream of establishing the closest connect with its patrons that Shri H. L. Somany strived to realize. This dream did not only drive the company towards the path of unparalleled success, but also established its presence as an unchallenged leader in the Indian tiles sector.
With a clear and unique objective to achieve, Somany has always tried to relentlessly set benchmarks and create trends in home interior design. Like every growing family, each Somany home has stories to tell, which have seamlessly been captured thanks to quality, strength and life of its products.
To sustain a dream of such a magnitude, it is always important to stay ahead of the time. This truth, realized by Shri H.L. Somany was not only executed through the superior and innovative style and quality of Somany products, but also sustained through the wisdom of the following generations of leaders. With Shri H. L. Somany at the helm as Founder, Shri Shreekant Somany as the CMD and Shri Abhishek Somany as the JMD, the company is heading towards an exciting phase of expansion and growth.
Press Releases
SOMANY CERAMICS
INAUGURATES FIRST SOMANY STUDIO SHOWROOM IN GANDHIDHAM
Gandhidham, 7th
February, 2012:
Subject, one of the leading players in the Indian ceramic
industry today inaugurated the first Somany Studio Showroom at M/s. Sanghvi
Marbles & Sanitaryware in Gandhidham,
Speaking on the occasion, Mr. Tapan.K. Jena, Joint President- Sales & Marketing, Somany
Ceramics Limited. said, "We are delighted to open our First
Somany Studio showroom in Gandhidham. Gujarat is a very strong market for us
and by opening our Studio showroom in
He further added, "While responding to the dynamic market, this showroom is a step towards strengthening our presence in the area."
The showroom exhibits a wide range of exclusive tile collections through state-of-the-art mock-up displays to give customers a feel of how each tile will look in its actual use. Spread in an area of over 700 sq ft, the newly launched store will house a variety of high end tiles and sanitary ware products. The store displays Somany‘s best selling products like VC Shield, Duragres, Highlighter Concepts, Sanitary ware Products - Water Closets, Basins and Pedestals, Faucets etc.
Somany Studio showrooms are located all over the country, including key cities like Cochin, Guwahati, Allahabad, Lucknow, Trivandrum, Tirupur, Gangtok and many other showrooms are about to be opened in leading centers’ soon. With its range of high quality products and offerings, Somany as a brand is focused on delivering products in accordance to the latest design, technology and concept so as to suit the needs and requirements of the its consumers.
About Subject
Somany Ceramics Ltd., Flagship Company of the H.L Somany
Group, is one of the leading players in the tiles and sanitary ware industry.
Somany Ceramics has been awarded The Power Brands Award 2010-11 which is
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. 57.07 |
|
|
1 |
Rs. 88.96 |
|
Euro |
1 |
Rs. 71.40 |
INFORMATION DETAILS
|
Report Prepared by
: |
ACH |
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 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
51 |
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.