MIRA INFORM REPORT
|
Report Date : |
02.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
GODFREY PHILLIPS INDIA LIMITED |
|
|
|
|
Registered
Office : |
Chakala, Andheri (East), Mumbai – 400099, Maharashtra |
|
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Country : |
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|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
03.12.1936 |
|
|
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|
Com. Reg. No.: |
11-008587 |
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|
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Capital
Investment / Paid-up Capital : |
Rs. 103.988 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L16004MH1936PLC008587 |
|
|
|
|
IEC No.: |
0588034495 |
|
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG08521C |
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|
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PAN No.: [Permanent Account No.] |
AABCG4768K |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
Line of Business
: |
Manufacturing and marketing of Cigarettes containing tobacco, Tea
black in packets and Unmanufactured tobacco. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (73) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 37000000 |
|
|
|
|
Status : |
Excellent |
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|
|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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|
Comments : |
Subject is an associate of the KK Modi Group of Companies and Phillip
Morris International Finance Corporation. It is the second largest player in
the Indian Cigarette Industry. It is an old, well established and reputed company having excellent
track. It has recorded an impressive growth of around 9.5% during 2012 over
last year. Financial position of the company appears to be strong. Its management
represents the optimum mix of professionalism, knowledge and experience. Trade t\relations are reported as praiseworthy. Business is active.
Payments are reported to be regular and as per commitments. The company can be considered excellent 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Cash Credit : AA + |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
November 11, 2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term Bank loan facility : AA + |
|
Rating Explanation |
High degree of safety and very low credit
risk. |
|
Date |
November 11, 2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Letter of Credit and Bank Guarantee : A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
November 11, 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.
INFORMATION DENIED BY
Management Non Co-operative
LOCATIONS
|
Registered Office : |
Chakala, Andheri (East), Mumbai – 400099, Maharashtra, India |
|
Tel. No.: |
91-22-28367306 / 26832155/28367301/08 |
|
Mobile No.: |
91-9818685805 (Mr. Vikas Kumar) |
|
Fax No.: |
91-22-28363761 / 26840775 |
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E-Mail : |
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Website: |
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Head/ Corporate Office |
49, Community Centre, New Friends Colony, New Delhi-110065, India |
|
Tel. No.: |
91-11-26832155/26836468 |
|
Fax No.: |
91-11-26840775/26835803 |
|
E-Mail : |
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|
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Branch Office : |
Located at: Ř
Ahmedabad Ř
Baramati Ř
Chandigarh Ř
Chennai Ř
Ghaziabad Ř
Hyderabad Ř
Kolkata Ř
Mumbai Ř
Rebale Ř
New Delhi |
|
|
|
|
Factory 1 : |
Ghaziabad
Factory International Tobacco Company Post Box No 97, Guldhar, |
|
Tel. No.: |
91-120-2788235 |
|
Fax No.: |
91-120-2788247 |
|
|
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Factory 2 : |
Andheri Plant |
|
|
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Factory 3 : |
Guldhar Plant International Tobacco Company Limited |
|
|
|
|
Factory 4 : |
Baramati Plant (Chewing
Products) Plot No. A-1/1, MIDC Industrial Area, Baramati – 413133, Maharashtra,
India |
|
|
|
|
Factory 5 : |
Rabale Plant Plot No. 19, MIDC, TTC Industrial Area, Rabale, Navi, Mumbai - 400701 |
|
|
|
|
Factory 6 : |
Bazpur (Tea Blending
and Packaging) Plot No. C-9, Bazpur - 1, Upsidc Industrial Area, Distt-Udham Singh
Nagar, (Uttranchal) – 262123, India |
|
|
|
|
Factory 7 : |
Kolkata (Tea Blending
and Packaging-operated by a contractor) Landys + GYR Compound, Diamond Harbour Road, Joka, Kolkata – 700104,
West Bengal, India |
|
|
|
|
Factory 8 : |
Ongole (Reconstituted
Tobacco) Plot No. 289 to 300, Apiic Growth Centre, Gundlapally, Ongole,
Prakasam District, Andhra Pradesh – 523001, India |
|
|
|
|
Leaf Division: |
|
|
Tel. No.: |
91-863-2351114,2350624 |
|
Fax No.: |
91-863-2350557 |
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|
|
|
International Business Division : |
41, Community Centre, Friends Colony, New Delhi – 110025, India |
|
Tel. No.: |
91-11-26832155/ 26836468 |
|
Fax No.: |
91-11-26840775/ 26835803 |
|
Email ID : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. R.A Shah |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Samir Kumar Modi |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. R. Ramamurthy |
|
Designation : |
Whole-time Director |
|
Qualification : |
B.A., B.L. from Madras University |
|
Experience : |
33 years |
|
|
|
|
Name : |
Mr. Lalit Kumar Modi |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Lalit Bhasin |
|
Designation : |
Executive Director |
|
Qualification : |
B.A. (Hons.), LL.B., FCIArb |
|
|
|
|
Name : |
Mr. Anup N. Kothari |
|
Designation : |
Executive Director |
|
Qualification : |
B.Arch., F.I.I.A |
|
|
|
|
Name : |
Mr. C. M. Maniar |
|
Designation : |
Executive Director |
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Qualification : |
B.Com., M.A. (Economics and Politics) and LL.B. (Solicitor) |
|
|
|
|
Name : |
Mr. O. P. Vaish |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. K.K. Modi |
|
Designation : |
President |
|
Qualification : |
B.Sc., Advanced Management Programme from Harvard Business School,
Boston |
|
|
|
|
Name : |
Mr. Sanjay Gupta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2012
|
Category
of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
4588 |
0.04 |
|
|
4412978 |
42.44 |
|
Any Others (Specify) |
360276 |
3.46 |
|
Trusts |
360276 |
3.46 |
|
|
4777842 |
45.95 |
|
|
|
|
|
|
2610095 |
25.10 |
|
|
2610095 |
25.10 |
|
Total shareholding of Promoter and Promoter Group (A) |
7387937 |
71.05 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
20286 |
0.20 |
|
|
9203 |
0.09 |
|
|
6000 |
0.06 |
|
|
1465842 |
14.10 |
|
|
1501331 |
14.44 |
|
|
|
|
|
|
64576 |
0.62 |
|
|
|
|
|
|
1235552 |
11.88 |
|
|
179884 |
1.73 |
|
|
29504 |
0.28 |
|
|
8338 |
0.08 |
|
Non Resident Indians |
16450 |
0.16 |
|
|
4716 |
0.05 |
|
|
1509516 |
14.52 |
|
Total Public shareholding (B) |
3010847 |
28.95 |
|
Total (A)+(B) |
10398784 |
100.00 |
|
© Shares held by Custodians and against which Depository Receipts have
been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
0 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of Cigarettes containing tobacco, Tea black
in packets and Unmanufactured tobacco. |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity (per annum) |
Installed
Capacity (on a single shift basis) |
Actual
Production Qty. |
|
A. Cigarettes |
Million |
18750* |
5160 |
8302 |
|
Cigarettes manufactured by the subsidiary
company on behalf of the Company |
Million |
-- |
-- |
9476 |
|
B. Chewing products - production |
Tonne |
-- |
-- |
281 |
*Including 25%
admissible production over licensed capacity
Installed capacity
has been certified by a director but has not been verified by the auditors as
this is a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||||||||
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|
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|
Bankers : |
Ř State
Bank of India Ř Bank
of Baroda Ř Bank
of India Ř Citibank
N. A., Connaught Circus, New Delhi Ř State
Bank of Hyderabad Ř State
Bank of Travancore Ř The
Hong Kong and Shanghai Banking Corporation Ř
Union Bank of India |
|||||||||||||||||||||||||||||||||
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|
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|
Facilities : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
A.F. Ferguson and Company Chartered Accountants |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Chandra Wadhva and Company Chartered Accountants |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Lodha and Company Chartered
Accountants |
|
Address : |
|
|
|
|
|
Subsidiary
companies: |
Ř International
Tobacco Company Limited Ř Chase
Investments Limited Ř Manhattan Credits
and Finance Limited (merged with Chase Investments Limited in current year) Ř City Leasing and
Finance Company Limited (merged with Chase Investments Limited in current
year) |
|
|
|
|
Subsidiaries of
the subsidiary companies: |
Ř Kashyap Metal and
Allied Industries Limited Ř Unique Space
Developers Limited Ř Rajputana
Infrastructure Corporate Limited (subsidiary of Kashyap Metal and Allied
Industries Limited) Ř Gopal Krishna
Infrastructure and Real Estate Limited (subsidiary of Unique Space Developers
Limited) |
|
|
|
|
Associates: |
Ř Philip Morris
Global Brands Inc. (Formerly Philip Morris International Finance
Corporation), which the Company is an associate. Ř Success
Principles India Limited, an associate of the Company. Ř IPM India Wholesale
Trading Private Limited, an associate of the Company. Ř KKM Management
Centre Private Limited, an associate of the Company. |
|
|
|
|
Enterprises over
which key management personnel and their relatives are able to exercise
significant influence: |
Ř Modicare Limited Ř Modern Homecare
Products Limited Ř Beacon Travels
Private Limited Ř Indofil
Industries Limited Ř Assam Cigarette
Company Private Limited Ř R C Tobacco
Private Limited Ř HMA Udyog
Private Limited Ř Bina Fashion N
Food Private Limited Ř Modicare
Foundation Ř Priyal Hitay
Nidhi Ř Colorbar
Cosmetics Private Limited Ř Gujarmal Modi
Science Foundation Ř Modi Healthcare
Placement India Private Limited Ř Modi Innovative
Education Society |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,44,00,000 |
Equity Shares |
Rs. 10/- each |
Rs. 244.000 Millions |
|
60,000 |
Preference shares |
Rs. 100/- each |
Rs. 6.000 Millions |
|
|
Total |
|
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,03,98,784 |
Equity Share |
Rs.10/- each |
Rs. 103.988
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
103.988 |
103.988 |
103.988 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
9105.103 |
7798.521 |
6561.186 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
9209.091 |
7902.509 |
6665.174 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2622.936 |
1928.565 |
1145.543 |
|
|
2] Unsecured Loans |
39.583 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
2662.519 |
1928.565 |
1145.543 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
9.717 |
|
|
|
|
|
|
|
|
TOTAL |
11871.610 |
9831.074 |
7820.434 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5270.886 |
2833.670 |
2459.914 |
|
|
Capital work-in-progress |
1374.090 |
1803.903 |
729.699 |
|
|
|
|
|
|
|
|
INVESTMENT |
3583.312 |
3231.418 |
1948.557 |
|
|
DEFERREX TAX ASSETS |
75.223 |
7.881 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3771.573
|
3491.954 |
3601.458 |
|
|
Sundry Debtors |
749.495
|
453.860 |
492.903 |
|
|
Cash & Bank Balances |
218.608
|
515.023 |
340.996 |
|
|
Other Current Assets |
133.867
|
175.895 |
0.000 |
|
|
Loans & Advances |
1192.278
|
1053.274 |
1004.144 |
|
Total
Current Assets |
6065.821
|
5690.006 |
5439.501 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1189.359
|
995.450 |
2082.319 |
|
|
Other Current Liabilities |
2383.321
|
1927.917 |
0.000 |
|
|
Provisions |
925.042
|
812.437 |
674.918 |
|
Total
Current Liabilities |
4497.722
|
3735.804 |
2757.237 |
|
|
Net Current Assets |
1568.099
|
1954.202 |
2682.264 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11871.610 |
9831.074 |
7820.434 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19118.028 |
16308.866 |
13838.736 |
|
|
|
Other Income |
303.338 |
238.607 |
652.602 |
|
|
|
TOTAL (A) |
19421.366 |
16547.473 |
14491.338 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4960.529 |
4397.904 |
|
|
|
|
Purchases of traded goods |
2612.659 |
1857.639 |
|
|
|
|
Changes in inventories of finished goods, work-in-process and traded
goods |
95.458 |
(48.274) |
|
|
|
|
Employee benefits expenses |
1625.367 |
1387.942 |
|
|
|
|
Other expenses |
6612.177 |
6001.758 |
|
|
|
|
TOTAL (B) |
15906.190 |
13596.969 |
12478.284 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3515.176 |
2950.504 |
2013.054 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
316.514 |
135.738 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3198.662 |
2814.766 |
2013.054 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
626.313 |
400.029 |
339.097 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2572.349 |
2414.737 |
1673.957 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
758.722 |
754.402 |
490.110 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1813.627 |
1660.335 |
1183.847 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
5798.833 |
4761.498 |
4030.799 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
220.000 |
200.000 |
150.000 |
|
|
|
Proposed Dividend |
415.951 |
363.957 |
259.970 |
|
|
|
Corporate Dividend tax |
67.478 |
59.043 |
43.178 |
|
|
|
|
703.429 |
623 |
453.148 |
|
|
BALANCE CARRIED
TO THE B/S |
6909.031 |
5798.833 |
4761.498 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods on F.O.B. basis |
3118.633 |
2777.651 |
3119.510 |
|
|
|
Others including freight, etc. |
69.618 |
65.952 |
50.278 |
|
|
TOTAL EARNINGS |
3188.251 |
2843.603 |
3169.788 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
455.186 |
416.388 |
311.469 |
|
|
|
Components and spare parts |
33.438 |
26.469 |
34.198 |
|
|
|
Capital Goods |
1861.868 |
524.246 |
274.666 |
|
|
|
Purchases for resale - cigars, etc. |
7.544 |
0.000 |
2.633 |
|
|
TOTAL IMPORTS |
2358.036 |
967.103 |
622.966 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
174.41 |
159.67 |
113.84 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
|
|
1st Quarter |
|
Sales Turnover |
4838.300 |
|
Total Expenditure |
4238.000 |
|
PBIDT (Excl
OI) |
600.300 |
|
Other Income |
51.600 |
|
Operating
Profit |
651.900 |
|
Interest |
71.900 |
|
Exceptional
Items |
0.000 |
|
PBDT |
580.000 |
|
Depreciation |
181.600 |
|
Profit
Before Tax |
398.400 |
|
Tax |
118.100 |
|
Provision and Contingencies |
0.000 |
|
Reported PAT |
280.300 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
280.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
9.34 |
10.03 |
8.17 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.46 |
14.81 |
12.10 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
22.69 |
28.33 |
21.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28 |
0.31 |
0.25 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.78 |
0.72 |
0.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35 |
1.52 |
1.97 |
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 |
Yes |
|
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) |
No |
|
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 |
MANAGEMENT DISCUSSION AND ANALYSIS
GENERAL ECONOMIC
ENVIRONMENT
As the FY 2011-12 started
for all of us, global economy was recovering from political unrest in different
parts of the world, and economic slowdown in the U.S. and Europe. The global
economic environment has been tenuous through the year, particularly turning
adverse post-September 2011, against the Euro-zone crisis, downgrades of
sovereign credit rating of euro-zone and other advanced countries (including
the U.S.), followed by political unrests, currency wars and the more recent oil
crisis. One clear and comforting sign was a relatively better performance by
Indian Economy. Government of India also indicated that despite some weakness
in the economy, the outlook was rather positive for the coming years, with
economic activity having ‘bottomed out’ and ‘a gradual upswing being imminent’.
However, it was clear that managing growth and having price stability were
going to be prime challenges for the Government. While agriculture and services
sector provided support to overall growth, weakening industrial activity had
pulled down economic performance resulting in India’s real GDP growth
decelerating sharply from 8.5% in 2010-11 to 6.5% in 2011-12. The real GDP
declined to 5.3% in Q4 of FY 2011-12 as compared with 9.2% in the corresponding
period last year. The Q4 GDP data validates that the growth trajectory is
weaker than expected.
Exports from India
have faced challenges on logistics and movements due to geopolitical
disturbances. Infrastructure and public services need more impetus. Rising fuel
costs have burdened the common man and industry. Yet, it is hoped Indian
economy will rebound once more and achieve good, sustained and inclusive
growth.
TOBACCO INDUSTRY
During 2011-12,
Indian cigarette market has shown a growth of around 5% in volume and 11% in
value over the previous year. Growth is largely seen in premium & economy
segments. However, due to glut in the international market, Indian leaf tobacco
exports were lower as compared to last year and the situation continues to be
the same. Also, the industry continues to face the menace from non-duty paid
cigarettes available across markets in India.
Regulatory
Environment
Global regime
continued to get stricter on tobacco during the year. UN bodies like WHO have
been making strong efforts to ban or restrict use of specific ingredients,
flavor and additives in manufacture of tobacco products, as well as to reduce
acreage under tobacco cultivation. Different countries have looked at increased
taxation, restriction on display, anti-smoking proposals etc. to discourage
smoking. Australia and New Zealand are focusing on plain packaging in order to
make the packs less enticing for people. U.K. has banned display of tobacco
products at retail outlets.
India is also
witnessing various anti-tobacco initiatives by various authorities and agencies
with the new graphic health warnings coming into effect from 1st December,
2011. They respect such initiatives and shall abide by them as a responsible
corporate citizen.
Taxation
The trend to
increase Value Added Tax (VAT) rates at State level continued during the FY
2011-12 with more and more States resorting to tax tobacco products to bridge
the revenue shortfall. And as an impact of that, VAT rates in India on
cigarettes now vary from 12.5% to 50%. unified VAT or GST regime in course of time
will help the industry, trade and consumers by bringing rationality and
clarity.
SEGMENTWISE
PERFORMANCE IN 2011-2012
Cigarettes
The Industry is
under pressure on account of rising excise duty coupled with increase in VAT
rates by various State Governments. Despite this, the Company has registered a
marginal increase of 0.7% in the domestic sales volume with the value being
higher at Rs. 27760.000 Millions as compared to Rs. 26270.000 Millions in the
previous year reflecting an increase of 5.7%. Various steps are underway to
strengthen parent brands namely Four Square, Red and White and Cavanders. The
current distribution system is also being leveraged to handle multiple product
categories now being offered by the Company.
Tea
Although the
domestic tea business showed a marginal decline with the sales value during the
year placed at Rs. 950.000 Millions as against Rs. 970.000 Millions during the
preceding year, yet the margins were slightly better as compared to last year.
The Company is making all out efforts to achieve improved performance in this
segment of the business and has taken various new initiatives to broad-base the
distribution which include introduction of Super Cup tea bags to make inroads
into the HORECA segment and coverage of HTS (Hot Tea Shops) channel in Chennai.
The Company has gained formal entry into Railways also which is the biggest
institutional business of the country. Tea blending and packing units at
Kolkata and Bazpur have been automated and modernised to help in maintaining
current loyal customer base and attract new international customers. Super Cup
franchise is being relaunched with rejuvenated packaging and a premium product
option.
Chewing Products
The Company had a challenging
year for its Chewing Business. The industry needed to shift from plastic
packaging to paper based packaging format and where the competition was
scrambling for options, the Company introduced the first successful commercial
paper package that held ground even during the monsoons. The impetus helped the
Company’s pan masala brand “Pan Vilas” close the year at a turnover of Rs.
1210.000 Millions against Rs. 240.000 Millions in the last fiscal. The Company
captured roughly 12% share of the market and became leaders in the small pack
segment in some markets/states. During the year, the Company also opened the
West Bengal and the Punjab markets and currently it is operating in 10 states
in India.
The Company also
ventured in the difficult zarda segment with the brand “Swarn Vilas”. The
Company plans to continue the momentum and grow further by venturing into new
markets and categories and by leveraging and further building upon technology
and back-end infrastructure to support the engines of growth.
Retail
Company’s foray
into retail business through Twenty Four Seven convenience stores is making
steady progress. The Company is currently operating through 11 own stores
spread across Delhi and expects to more than double this number during the
current year.
TREASURY
OPERATIONS
The Company
continues to enjoy the highest rating of ‘CRISIL A1+’ for Short-Term Debt
Programme, ‘CRISIL AA+/Stable’ for Long Term Loan, ‘CRISIL AA+/Stable’ for Cash
Credit Limit and ‘CRISIL A1+’ for Non-fund based limits. With these ratings in
place, the Company is able to raise funds at most competitive and attractive
terms.
Guided by the
policy of safe, liquid and tax efficient returns, the Company has been
deploying its long term surplus funds primarily in debt oriented schemes of
reputed mutual funds mainly consisting of Fixed Maturity Plans (FMPs). Out of
the total investment of Rs. 3580.000 Millions as at March 31, 2012, investments
of Rs. 3030.000 Millions stood in debt segment of various mutual funds with
major chunk being into highly safe FMPs which are yielding decent tax efficient
returns. The Company also continued to park its temporary surpluses in liquid
schemes of various mutual funds.
SUBSIDIARY COMPANIES
Ministry of
Corporate Affairs, Government of India has, vide its General Circular No. 2
dated 8th February, 2011 granted a general exemption to companies under section
212(8) of the Companies Act, from attaching the documents referred to in
section 212(1) pertaining to its subsidiaries subject to approval by the Board
of Directors of the Company and furnishing certain financial information in the
Annual Report.
Accordingly, the
annual accounts of the subsidiaries will be made available upon request by any
shareholder of the Company and its subsidiaries. The annual audited accounts of
the subsidiaries will also be kept for inspection by any shareholder at the
Company’s Corporate Office as well as its Registered Office and at the offices
of the respective subsidiaries during business hours. Further, as per the provisions
of Section 212 of the Act, a statement of the Company’s interest in its
subsidiaries and a statement summarizing financial performance parameters of
subsidiary companies are included under notes to the consolidated financial
statements and forms part of the Annual Report.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2012
(Rs. in millions)
|
Particular |
Quarter Ended |
|
|
30.06.2012 (Unaudited) |
|
Income from Operations |
|
|
a) Gross sales |
8868.400 |
|
b) Less: Excise duty |
4122.800 |
|
Net Sales |
4745.600 |
|
c) Other Operating Income |
92.700 |
|
Total Income from
operations (net) |
4838.300 |
|
|
|
|
Expenses |
|
|
(a) Cost of Materials consumed |
1260.300 |
|
(b) Purchase of traded goods |
733.800 |
|
(c) (Increase)/ Decrease in stock in trade and work-in-progress |
(433.900) |
|
(d) (Increase)/ Decrease in excise duty on finished goods |
304.700 |
|
(e) Employee benefit expenses |
485.100 |
|
(f) Advertising and Sales promotion |
656.700 |
|
(g) Depreciation and amortization expenses |
181.600 |
|
(h) Other Expenses |
1231.300 |
|
Total Expenses |
4419.600 |
|
Profit from Operations
before Other Income, Finance costs and Tax Expenses |
418.700 |
|
Other Income |
51.600 |
|
Profit/ Loss from Ordinary
Activities before Finance costs and Tax Expenses |
470.300 |
|
Finance costs |
71.900 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Tax Expenses |
398.400 |
|
Tax Expenses |
118.100 |
|
Profit/ Loss from Ordinary Activities before
tax |
280.300 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
104.000 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
|
|
Basic and
Diluted earnings per share |
26.96 |
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
1. Public
shareholding |
|
|
Number of
Shares |
3010847 |
|
Percentage of Shareholding |
28.95 |
|
2. 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) |
-- |
|
|
|
|
Non - encumbered |
|
|
- Number of
Shares |
7387937 |
|
- 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) |
71.05 |
|
|
Particulars |
Quarter Ended 31st
March 2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
2 |
|
|
Disposed of during the quarter |
2 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
30.06.2012 |
|
|
Unaudited |
|
1. Segment Revenue |
|
|
Cigarettes and Tobacco Products |
4499.000 |
|
Tea and Other Retail Products |
339.300 |
|
Total income from operations (net) |
4838.300 |
|
|
|
|
2. Segment Results |
|
|
Cigarettes and Tobacco Products |
657.700 |
|
Tea and Other Retail Products |
(34.800) |
|
Total |
622.900 |
|
Less: Finance Costs |
(71.900) |
|
Un-allocable income/expenditure net of
un-allocable income/expenditure |
(152.600) |
|
Total Profit Before Tax |
398.400 |
|
|
|
|
3. Capital Employed |
|
|
Cigarettes and Tobacco Products |
8839.300 |
|
Tea and Other Retail Products |
428.500 |
|
Total segment capital employed |
9267.800 |
|
Unallocated capital employed |
221.600 |
|
Total capital employed |
9489.400 |
Notes:
- The above
results are as per Clause 41 of the Listing Agreement and have taken on
record by the Board of Directors at the meeting held on July 31, 2012
after being reviewed by the Audit Committee.
- The Board of
Directors of the Company at its meeting held on May 29, 2012 had
recommended a dividend of Rs. 40 per equity share of Rs. 10 each for the
year 2011-12 which will be paid after declaration in the forthcoming
annual general meeting to be September 14, 2012.
- In accordance
with the accounting policy consistently followed by the company, exchange
loss amounting to Rs. 240.200 Millions and the Rs. 15.000 Millions,
arising from restatement of foreign currency loan liabilities at the
prevailing rate of exchange; have been recognized in the above results for
the quarters ended on June 30, 2012 and June 30, 2011 respectively.
- Figures for
the previous periods have been reclassified/re-grouped, wherever
necessary, as per the format amended by SEBI in conformity with the
revised Schedule VI to the Companies Act, 1956. The figures for the
quarter ended March 31, 2012 are the balancing figures between the audited
figures in respect of full financial year ended March 31, 2012 and the
published year to date figures upto the third quarter of that financial
year.
Limited Review
The Limited review, as required under Clause
41 of the Listing Agreement has been completed and the related report forwarded
to the Stock Exchanges. This Report does not have any impact on the above
‘Results and Notes’ for the quarter ended June 30, 2012 which needs to be
explained.
CONTINGENT LIABILITIES NOT PROVIDED FOR
(Rs. in millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
a) Demands from excise, income tax, sales tax and other authorities
disputed by the Company @ |
245.927* |
252.493 |
|
b) Uncalled liability on shares partly paid |
7.924 |
14.899 |
|
c) Surety given to U.P. Trade Tax Authority on behalf of subsidiary company-International
Tobacco Company Limited |
0.000 |
1.566 |
|
d) Guarantee given to a bank on behalf of subsidiary company –
International Tobacco Company Limited |
5.429 |
4.679 |
*includes
Rs.178.486 Millions (previous year Rs.170.265 Millions) relating to demands
received by the subsidiary company – International Tobacco Company Limited. @
all these matters are subject to legal proceedings in the ordinary course of
business and in the opinion of the Company, these are not expected to have
material effect on the financial results of the Company when ultimately
concluded.
FIXED ASSETS:
Tangible Assets:
Ř Land-leasehold
Ř Land-freehold
Ř Buildings
Ř Leasehold building
improvements
Ř Plant and
machinery
Ř Electrical
installation and equipments
Ř Computers and
information technology equipments
Ř Furniture,
fixtures and office equipments
Ř Motor vehicles
Intangible Assets
Ř Computer software
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 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. 52.78 |
|
|
1 |
Rs. 85.16 |
|
Euro |
1 |
Rs. 67.79 |
INFORMATION DETAILS
|
Information
Gathered by : |
SBA |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
73 |
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 |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.