MIRA
INFORM REPORT
|
Report Date : |
05.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
ADITYA
BIRLA NUVO LIMITED (w.e.f.27.10.2005) JAYA SHREE TEXTILES (A UNIT OF ADITYA
BIRLA NUVO LIMITED) |
|
|
|
|
Formerly Known
As : |
INDIAN
RAYON AND INDUSTRIES LIMITED (w.e.f.23.01.1987) INDIAN
RAYON CORPORATION LIMITED |
|
|
|
|
Registered
Office : |
Indian Rayon Compound, Veraval - 362 266, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
26.09.1956 |
|
|
|
|
Com. Reg. No.: |
04-001107 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.1136.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17199GJ1956PLC001107 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BRD100317C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACI1747H |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on the
Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and Marketing of Viscose Filament
Yarn, Sulphuric Acid, Carbon-di-sulphide, Anhydrous Sodium Sulphide, Yarn,
Cloth, Reinforced Rubberlined Hosepipes, other Hosepipes, High and Low
Tension Insulators and Bushings, Portland Black and Liquid Argon. |
|
|
|
|
No. of Employees
: |
19750 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 220000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company
having fine track. Financial position of the company appears to be sound. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered normal for business
dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
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 |
CARE |
|
Rating |
AA+ (Bank Guarantee) |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
February 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
AA+ (Term Loan) |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
February 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
AA+ (Cash Credit) |
|
Rating Explanation |
High degree of safety and very low credit risk |
|
Date |
February 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A1+ (Letter of Credit) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk |
|
Date |
February 2012 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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 : |
Indian Rayon Compound, Veraval - 362 266, |
|
Tel. No.: |
91-2876-245711
/ 245735 / 245758 / 248401 |
|
Fax No.: |
91-2876-243220 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1 : |
A-4, Aditya
Birla Centre, S K Ahire Marg, Worli, Mumbai – 400 030, |
|
Tel. No.: |
91-22-66525585 |
|
Fax No.: |
91-22-66525821
/ 24995821 |
|
|
|
|
Corporate Office 2 : |
Survey
No. 62/2A, 62/2B, Parappana Agrahara, off Hosur Road, Vegur Hobli, Bangalore
– 560068, Karnataka, India |
|
Tel. No.: |
91-2876-245711 |
|
Fax No.: |
91-2876-243220 |
|
|
|
|
Head Office : |
91
Sakhar Bhawan, 9th Floor, 230 Nariman Point, Mumbai – 400 021, |
|
Tel. No.: |
91-22-2204
5004 |
|
Fax No.: |
91-22-2204
3686 |
|
E-Mail : |
|
|
|
|
|
Marketing office |
801-802,
Gunjan Tower, Near Alembic Petrol Pump, Alembic - Gorwa Road, |
|
Tel. No.: |
91-265-3083669/3083670 |
|
Fax No.: |
91-265-3083668 |
|
E-Mail : |
|
|
|
|
|
Factory 1: |
GARMENTS DIVISION: Madura
Garments M G
House, Plot No. 5B, Doddanekkundi Industrial Area, 1 Stage, Krishnaraja Puram
Hobli, Brookefields, Bangalore-560048, |
|
Tel No. |
91-80-67271600 |
|
Fax No.: |
91-80-67272626 |
|
E mail: |
|
|
|
|
|
Factory 2: |
RAYON DIVISION Indian
Rayon Division Veraval
362 266, Gujarat, |
|
Tel No. |
91-2876-245711 /
248401 |
|
Fax No.: |
91-2876-243220 |
|
E mail: |
|
|
|
|
|
Factory 3: |
Carbon Black Plants: Hi-Tech
Carbon Murdhwa
Industrial Area, P. O. Renukoot, District Sonbhadra - -231 217, Uttar
Pradesh, India |
|
Tel No. |
91-5446-252387
to 391 |
|
Fax No.: |
91-5446-252502
/ 252858 |
|
E mail: |
|
|
|
|
|
Factory 4: |
Argon Gas Plant: Rajashree
Gases IGFL
Complex, P. O. Jagdishpur Industrial Area, District Sultanpur - 227 817,,
Uttar Pradesh, India |
|
Tel No. |
91-5361-270032
to 38 |
|
Fax No.: |
91-5361-270595
/ 270165 / 270172 |
|
E mail: |
|
|
|
|
|
Factory 5: |
HITECH CARBON, GUMMIDIPOONDI K-16,
Phase II, SIPCOT Industrial Complex, Gummidipoondi, District Tiruvallur- 601
201 - Tamil Nadu, India |
|
Tel No. |
91-4119-223233
to 36 |
|
Fax No.: |
91-4119-223129/223116 |
|
E mail: |
|
|
|
|
|
Factory 6: |
Textile Plants: Jaya Shree Textiles P.
O. Prabhasnagar, District Hooghly- 712 249, West Bengal, India |
|
Tel No. |
91-33-26721146
/ 26001200 |
|
Fax No.: |
91-33-26721683
/ 26722626 |
|
E mail: |
|
|
|
|
|
Factory 7: |
Rajashree
Syntex P.
O. Tantigaria, District Midnapur Paschim - 721 102, (West Bengal), India |
|
Tel No. |
91-3222-263131
/ 275820 / 263964 |
|
Fax No.: |
91-3222-275528 |
|
E mail: |
|
|
|
|
|
Factory 8: |
Other Division: Aditya Birla Insulator (Domestic
Marketing) P. O.
Meghasar Taluka Halol, District Panchmahal - - 389 330, Gujarat, India |
|
Tel No. |
91-2676-221002 |
|
Fax No.: |
91-2676-223375 |
|
E mail: |
|
|
|
|
|
Factory 9: |
Fertilizer Plant : P.O.
Jagdishpur Industrial Area, District Sultanpur - 227 817, |
|
Tel No. |
91-5361-270032-38 |
|
Fax No.: |
91-5361-270165
and 270595 |
|
E mail: |
|
|
|
|
|
Factory 10 : |
Financial Services Division Appejay,
2nd Floor, |
|
Tel No. |
91-22-22880660 |
|
Fax No.: |
91-22-22881088 |
|
E mail: |
|
|
|
|
|
Factory 11: |
Halol Works P.O.
Meghasar, Taluka: Halol, District Panchmahal-389330, |
|
Tel No. |
91-2676-221002 |
|
Fax No.: |
91-2676-223375 |
|
E mail: |
|
|
|
|
|
Factory 12: |
Aditya Birla Insulators, Rishra P.O.
Prabhas Nagarl, Rishra, District Hoogly-712249, West |
|
Tel No. |
91-33-27623535/26729413 |
|
Fax No.: |
91-33-26722705 |
|
E mail: |
|
|
|
|
|
Factory 13 : |
Hi-Tech Carbon, Patalganga Village: Lohop, Talavali,
Patalganga, Taluka: Khalapur, Dist. Raigad - 410 207, |
|
Website : |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Dr. Rakesh Jain |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. B. L. Shah |
|
Designation : |
Non-Executive
Director |
|
|
|
|
Name : |
Mr. P. Murari |
|
Designation : |
Independent
Director |
|
|
|
|
Name : |
Mr. B. R. Gupta |
|
Designation : |
Independent
Director |
|
|
|
|
Name : |
Ms. Tarjani Vakil |
|
Designation : |
Independent
Director |
|
|
|
|
Name : |
Mr. G. P. Gupta |
|
Designation : |
Independent
Director |
|
|
|
|
Name : |
Mr. S. C. Bhargava |
|
Designation : |
Independent
Director |
|
|
|
|
Name : |
Dr. Rakesh Jain |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Tapasendra Chattopadhyay |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sushil Agarwal |
|
Designation : |
Whole-Time Director |
|
|
|
|
Name : |
Mr. T. Chattopadhyay |
|
Designation : |
Independent
(Nominee) Director |
|
|
|
|
Name : |
Mr. Sushil Agarwal |
|
Designation : |
Whole
-Time Director |
|
|
|
|
Name : |
Mr.Kumar Mangalam Birla |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs.
Rajashree Birla |
|
Designation : |
Non-Executive
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sushil Agarwal |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Manoj Kedia |
|
Designation : |
Deputy Chief Financial Officer |
|
|
|
|
Name : |
Mr. Devendra Bhandari |
|
Designation : |
Company Secretary |
|
|
|
|
Executives/ Senior Management Aditya Birla Financial Services : |
Mr. Ajay Srinivasan
(Chief Executive Officer) Mr. Pankaj
Razdan (Deputy Chief Executive Officer) |
|
|
|
|
Telecom : |
Mr. Himanshu
Kapania (Business Head) |
|
|
|
|
IT-ITeS : |
Dr. Rakesh Jain
(Business Director) Mr. Deepak Patel (Chief Executive Officer) |
|
|
|
|
Fashion and Lifestyle And Textiles : |
Mr. Pranab Barua
(Business Head) Mr. S.
Krishnamurthy (President - Jaya Shree Textiles) Mr. Ashish Dikshit (Chief Executive) Mr. Thomas Varghese (Chief Executive) |
|
|
|
|
Carbon Black : |
Dr. Santrupt Misra
(Business Head) Mr. S. S. Rathi (President) |
|
|
|
|
Agri- Business : |
Dr. Rakesh Jain
(Business Director) Mr. J. C Laddha (Chief Executive Officer) |
|
|
|
|
Rayon : |
Mr. Lalit Naik
(Business Head) Dr. Bir kapoor (President) |
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 |
|
|
|
|
|
|
|
|
136,203 |
0.12 |
|
|
57,808,494 |
52.40 |
|
|
57,944,697 |
52.52 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
57,944,697 |
52.52 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,366,370 |
2.14 |
|
|
8,847,944 |
8.02 |
|
|
2,220,380 |
2.01 |
|
|
21,488,235 |
19.48 |
|
|
6,286 |
0.01 |
|
|
6,286 |
0.01 |
|
|
34,929,215 |
31.66 |
|
|
|
|
|
|
3,194,427 |
2.90 |
|
|
|
|
|
|
12,313,933 |
11.16 |
|
|
668,853 |
0.61 |
|
|
1,272,556 |
1.15 |
|
|
173,178 |
0.16 |
|
|
1,090,611 |
0.99 |
|
|
8,767 |
0.01 |
|
|
17,449,769 |
15.82 |
|
Total Public shareholding (B) |
52,378,984 |
47.48 |
|
Total (A)+(B) |
110,323,681 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
1,425,000 |
- |
|
|
1,766,561 |
- |
|
|
3,191,561 |
- |
|
Total (A)+(B)+(C) |
113,515,242 |
- |
%20-%20196005%2005-Oct-2012_files/image002.gif){kind=small}
%20-%20196005%2005-Oct-2012_files/image003.gif){kind=small}
%20-%20196005%2005-Oct-2012_files/image004.gif){kind=small}
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Viscose
Filament Yarn, Sulphuric Acid, Carbon-di-sulphide, Anhydrous Sodium Sulphide,
Yarn, Cloth, Reinforced Rubberlined Hosepipes, other Hosepipes, High and Low
Tension Insulators and Bushings, Portland Black and Liquid Argon. |
||||||||||||||||||||||
|
|
|
||||||||||||||||||||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.03.2011
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Garments
* |
Nos/000 |
-- |
12957 |
|
Viscose Filament Rayon Yarn |
MT |
17520 |
15389 |
|
Sulphuric Acid and Allied Chemicals |
MT |
57680 |
51214 |
|
Caustic Soda |
MT |
91250 |
87932 |
|
Chlorine |
MT |
80665 |
73985 |
|
Hydro Chloric Acid |
MT |
11115 |
11372 |
|
Spun Yarn |
MT |
44024
spdls |
10769 |
|
Cloth |
000Mtr. |
106
looms |
6614 |
|
Carbon Black |
MT |
314000 |
275560 |
|
High and Low Tension Insulators and Bushings |
MT |
45260 |
43498 |
|
Liquid
Argon |
‘000 SM3 |
3000 |
1277 |
|
Urea |
MT |
2620
per day |
1100111 |
Notes:
The Installed
Capacity is as Certified by the Management and licensed capacity is not given
as licensing has been abolished.
@ Turnover
quantity includes captive consumption, damages, sample sales and shortages and
value includes Export benefits.
* Garment
production includes items produced on job work basis by outside parties and
purchases.
GENERAL INFORMATION
|
No. of Employees : |
19750 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank
of ·
Corporation
Bank ·
Standard Chartered
Grindlays Bank Limited ·
United
Bank of ·
UCO Bank ·
Canara
Bank ·
Punjab
National Bank ·
Bank of ·
HDFC Bank
Limited ·
Citibank
NIA. ·
American
Express Bank Limited ·
Central
Bank of ·
The
Hongkong and Shanghai Banking Corporation Limited ·
Allahabad
Bank ·
State Bank
of Saurashtra ·
Standard
Chartered Bank |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
·
Khimji Kunverji and Company Chartered Accountants ·
S.R. Batliboi and Company Chartered Accountants |
|
|
|
|
Branch Auditors: |
|
|
Name : |
·
K. S. Aiyar and
Company Chartered
Accountants ·
Deloitte Haskins and Sells Chartered
Accountants |
|
|
|
|
Solicitors : |
·
Amarchand and Mangaldas and Suresh A. Shroff and
Company ·
Mulla and Mulla and Craigie, Blunt and Caroe |
|
|
|
|
Joint Venture: |
·
Birla Sun Life Asset Management Company Limited (BSAMC)
(Joint Venture of ABFSPL) ·
Birla Sun Life Trustee Company Private Limited
(BSTPL) (Joint Venture of ABFSPL) ·
IDEA Cellular Limited (IDEA) |
|
|
|
|
Subsidiaries : |
·
Aditya Vikram Global Trading House Limited
(AVGTHL) (100% Subsidiary) ·
Birla Sun Life Insurance Company Limited (BSLICL)
(74% Subsidiary) ·
ABNL Investment Limited (ABNLInv) (100%
Subsidiary) ·
Shaktiman Mega Food Park Private Limited (w.e.f.
2nd December, 2010) (94% Subsidiary) ·
Madura Garments Lifestyle Retail Company Limited
(MGLRCL) (100% Subsidiary) ·
Peter England Fashions and Retail Limited (PEFRL)
(100% Subsidiary) ·
Indigold Trade and Services Limited (ITSL)
(w.e.f. 30th June, 2010) (99.99% Subsidiary) ·
LIL Investment Limited (LIL) (w.e.f. 30th June,
2010) (99.99% Subsidiary) |
|
|
|
|
Associates: |
·
Birla Securities Limited (BSL) ·
Indigold Trade and Services Limited (ITSL) (Up to
29th June, 2010) ·
LIL Investment Limited (LILIL) (Up to 29th June,
2010) |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
175000000 |
Equity Shares |
Rs.10/- each |
Rs. 1750.000 Millions |
|
500000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs. 50.000 Millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 1800.000
Millions |
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
113556765 |
Equity Shares |
Rs.10/- each |
Rs. 1135.600
Millions |
|
10000 |
6% Redeemable Cumulative Preference Shares |
Rs.100/-
each |
Rs. 1.000
Millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 1136.600 Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
113515242 |
Equity Shares |
Rs.10/- each |
Rs. 1135.200
Millions |
|
10000 |
6% Redeemable Cumulative Preference Shares of |
Rs.100/-
each |
Rs. 1.000
Million |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 1136.200 Millions |
1.
Reconciliation of the number of Shares Outstanding
at the beginning and at the end of the period
|
SL No. |
Description |
As at 31st
March, 2012 |
As at 31st March,
2011 |
||
|
|
|
Equity Shares |
Preference
Shares |
Equity Shares |
Preference
Shares |
|
1 |
No. of Shares Outstanding at the beginning of the period @ Rs. 10/- each |
113509729 |
10000 |
103009542 |
10000 |
|
2 |
Allotment of Equity Shares upon conversion of Preferential Warrants to Promoter and Promoter Group on 20th December 2010 @ Rs. 10/- each |
-- |
-- |
10500000 |
-- |
|
3 |
Allotment of Rights Shares kept in abeyance on various dates @ Rs.10/- each |
1402 |
-- |
187 |
-- |
|
4 |
Allotment of Shares on exercise of options by employee under ESOS-2006 |
4111 |
-- |
-- |
-- |
|
5 |
No. of Shares Outstanding at the end of the period @ Rs.10/- each |
113515242 |
10000 |
113509729 |
10000 |
2 Term/Right attached
to Equity Shares
The Company has
only one class of equity shares having a par value of Rs. 10/- per share. Each
holder of equity shares is entitled to one vote per share. The Company declares
dividend in Indian rupees. The dividend proposed by the Board of Directors is
subject to the approval of the shareholders in the Annual General Meeting.
In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company, after distribution to all Preference
Shareholders. The distribution will be in proportion to the number of the
equity shares held by the shareholders.
3 Term of
Conversion/Redemption of Preference Shares
In accordance with
the Composite Scheme of Arrangement, 10,000 6% Redeemable Cumulative Preference
Share of Rs.100/- each fully paid-up (Previous Year: 10,000) were issued to
preference shareholders (other than the Company) of Peter England Fashions and
Retail Limited.
Preference shares carry
cumulative dividend @6% p.a. The Company declares and pays dividend in Indian
rupees. The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the Annual General Meeting.
These preference
shares are redeemable by the Company at any time after completion of one year
and on or before completion of five years from the 1st January, 2010, at the
face value. In the event of liquidation of the Company before
conversion/redemption of preference shares, the holders of Preference Shares
will have priority over Equity Shares in the payment of dividend and repayment
of capital.
4 The Company does
not have any holding Company.
5 Shares in the
Company held by each shareholder holding more than 5 percent shares and the
number of shares held are as under:
i) Equity Shares
|
SL No. |
Description |
As at 31st
March, 2012 |
As at 31st
March, 2011 |
||
|
|
|
No. of Shares
Held |
% of Total
Paid-up Equity Share Capital |
No. of Shares
Held |
% of Total Paid-up
Equity Share Capital |
|
1 |
TGS Investment and Trade Private Limited |
13506736 |
11.90% |
13506736 |
11.90% |
|
2 |
Trapti Trading and Investments Private Limited |
9423935 |
8.30% |
9423935 |
8.30% |
|
3 |
Life Insurance Corporation of India |
8803295 |
7.76% |
10032626 |
8.84% |
|
4 |
Hindalco Industries Limited |
8650412 |
7.62% |
8650412 |
7.62% |
|
5 |
HSBC Global Investment Funds A/c HSBC Global Investment Funds
Mauritius Limited |
8565822 |
7.55% |
8522287 |
7.51% |
|
6 |
Mangalam Services Limited |
7546111 |
6.65% |
7546111 |
6.65% |
|
7 |
Turquoise Investment and Finance Private Limited |
6441092 |
5.67% |
6441092 |
5.67% |
ii) Preference Share Capital
|
SL No. |
Description |
As at 31st
March, 2012 |
As at 31st March,
2011 |
||
|
|
|
No. of Shares
Held |
% of Total
Paid-up Equity Share Capital |
No. of Shares
Held |
% of Total
Paid-up Equity Share Capital |
|
1 |
Naman Finance and Investment Private Limited |
5000 |
50.00% |
5000 |
50.00% |
|
2 |
Infocyber (India) Private Limited |
5000 |
50.00% |
5000 |
50.00% |
6 Share reserved
for issue under options and contracts, including the terms and amounts:
For details of
Shares reserved for issue under the Employee Stock Option (ESOP) Plan of the Company
Refer Note 38.
7 There are no
Preference Shares issued as fully paid-up pursuant to any contract in
consideration of other than cash or bought back during the preceding last five
years except issue of 10,000 6% Redeemable Cumulative Preference Shares of Rs.100/- each pursuant to a Scheme of
Composite Arrangement to shareholders of Peter England Fashions and Retail
Limited.
8 Pursuant to the
provisions of Section 206A of the Companies Act, 1956, the issue of following
Equity Shares are kept in Abeyance
|
SL No. |
Description |
No. of Shares |
|
|
|
|
As at 31st
March, 2012 |
As at 31st
March, 2011 |
|
1 |
Rights Issue (1994) |
12635 |
12635 |
|
2 |
Bonus Share on Above |
6318 |
6318 |
|
3 |
Rights Issue (2007) |
22570 |
23972 |
In the year 1997,
the Company had forfeited 4,487 shares held by 299 holders on account of
non-payment of call money with interest on shares issued against each
detachable warrant.
10 3,191,794 equity shares
(Previous Year: 3,222,993) are represented by Global Depository Receipts.
11 During the last
five years preceding 31.03.2012, there were 1,048 Bonus Shares (Previous Year:
1,048 Bonus Shares) issued out of shares kept in abeyance.
12 Figures in brackets represent corresponding number of shares for
previous year.
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 |
1136.200 |
1136.100 |
1031.100 |
|
|
2] Share Warrants |
0.000 |
0.000 |
1420.700 |
|
|
3] Employee Stock Option Outstanding |
0.000 |
0.000 |
21.300 |
|
|
4] Reserves & Surplus |
55649.700 |
52871.400 |
44142.000 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
56785.900 |
54007.500 |
46615.100 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
26703.800 |
11017.300 |
20748.500 |
|
|
2] Unsecured Loans |
14064.200 |
14817.900 |
15651.700 |
|
|
TOTAL BORROWING |
40768.000 |
25835.200 |
36400.200 |
|
|
DEFERRED TAX LIABILITIES |
1582.200 |
1736.100 |
1784.700 |
|
|
|
|
|
|
|
|
TOTAL |
99136.100 |
81578.800 |
84800.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17473.200 |
17695.800 |
15522.200 |
|
|
Capital work-in-progress |
2008.700 |
646.500 |
2630.600 |
|
|
|
|
|
|
|
|
INVESTMENT |
55979.500 |
54774.100 |
54358.500 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
13206.900
|
12032.400
|
8763.400
|
|
|
Sundry Debtors |
16901.900
|
11092.900
|
6933.300
|
|
|
Cash & Bank Balances |
5969.500
|
209.000
|
143.100
|
|
|
Other Current Assets |
2461.900
|
895.700
|
293.300
|
|
|
Loans & Advances |
7879.100
|
4670.800
|
6228.500
|
|
Total
Current Assets |
46419.300
|
28900.800
|
22361.600
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
0.000
|
0.000
|
6339.400
|
|
|
Other Current Liabilities |
21097.000
|
18895.800
|
2550.900
|
|
|
Provisions |
1647.600
|
1542.600
|
1182.600
|
|
Total
Current Liabilities |
22744.600
|
20438.400
|
10072.900
|
|
|
Net Current Assets |
23674.700
|
8462.400
|
12288.700
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
99136.100 |
81578.800 |
84800.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Income from Operations |
84334.800 |
64472.400 |
48274.700 |
|
|
|
Other Income |
1897.400 |
748.600 |
707.900 |
|
|
|
TOTAL |
86232.200 |
65221.000 |
48982.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
39814.600 |
31892.100 |
|
|
|
|
Purchase of stock-in-Trade |
11084.100 |
4671.100 |
|
|
|
|
Changes in Inventories of Finished Goods
Work-in-Progress and Stock-in-Trade |
(926.100) |
(1632.800) |
|
|
|
|
Employees Benefits Expenses |
5463.800 |
4808.200 |
|
|
|
|
Other Expenses |
20290.800 |
15883.000 |
|
|
|
|
TOTAL |
75727.200 |
55621.600 |
40637.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
10505.000 |
9599.400 |
8345.000 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCE EXPENSES |
3132.600 |
2708.100 |
3341.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
7372.400 |
6891.300 |
5004.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
2030.600 |
1940.500 |
1801.000 |
|
|
|
|
|
|
|
|
|
|
Exceptional
Items |
1038.800 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
4303.000 |
4950.800 |
3203.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
849.100 |
1153.900 |
369.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
3453.900 |
3796.900 |
2834.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
281.900 |
171.800 |
860.300 |
|
|
|
|
|
|
|
|
|
|
Amount
Transferred on account of Scheme of Arrangement |
NA |
0.000 |
(1396.000) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
2500.000 |
1000.000 |
|
|
|
Debenture Redemption Reserve |
NA |
461.100 |
531.900 |
|
|
|
Proposed Dividend on Preference Shares |
NA |
0.100 |
0.000 |
|
|
|
Proposed Dividend on Equity Shares |
NA |
624.300 |
515.100 |
|
|
|
Corporate Tax on Dividend |
NA |
101.300 |
79.500 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
281.900 |
171.800 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods |
10244.000 |
8250.400 |
6060.800 |
|
|
|
Sale of Certified Emission Reduction |
15.900 |
60.300 |
147.100 |
|
|
|
Service Charge |
0.200 |
0.800 |
17.000 |
|
|
TOTAL EARNINGS |
10260.100 |
8311.500 |
6224.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
24616.500 |
19252.100 |
11496.900 |
|
|
|
Stores & Spares |
242.100 |
226.800 |
184.100 |
|
|
|
Capital Goods |
724.000 |
109.400 |
622.000 |
|
|
|
Purchase of Finished Goods |
4003.300 |
451.100 |
304.900 |
|
|
TOTAL IMPORTS |
29585.900 |
20039.400 |
12607.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic Diluted |
30.43 30.41 |
35.84 34.98 |
28.81 27.62 |
|
%20-%20196005%2005-Oct-2012_files/image005.gif){kind=small}
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
|
|
1st
Quarter |
|
Net Sales |
20371.400 |
|
Total Expenditure |
18438.400 |
|
PBIDT (Excl OI) |
1933.000 |
|
Other Income |
208.100 |
|
Operating Profit |
2141.100 |
|
Interest |
865.300 |
|
Exceptional Items |
0.000 |
|
PBDT |
1275.800 |
|
Depreciation |
500.500 |
|
Profit Before Tax |
775.300 |
|
Tax |
197.100 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
578.200 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
578.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.01
|
5.82 |
5.79
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.10
|
7.68 |
6.63
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.73
|
17.13 |
8.45
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.09 |
0.07
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.12
|
0.86 |
0.99
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.04
|
1.41 |
2.22
|
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 |
Yes |
|
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] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
32] |
Passport No 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 |
MACRO ECONOMIC
SCENARIO
Financial year
2011-12 was a challenging year for the economy with GDP growth further slowing
down to 6.1%, in the third quarter. Rupee weakened against US dollar to
historically low level of 54. High inflation and resultant monetary measures
continued to constrain growth. However, with the much anticipated easing of
inflation and interest rates, domestic demand growth is expected to improve
going forward.
Amidst this
testing macro-economic scenario, the Company posted strong earnings.
STANDALONE
FINANCIAL PERFORMANCE
Standalone revenue
at Rs.84330.000 Millions registered 31% growth. Agri business touched
Rs.21000.000 Millions revenue mark supported by commencement of trading in
imported fertilisers. Textiles business crossed Rs.10000.000 Millions revenue
mark.
EBITDA rose by 9%
to Rs.10510.000 Millions – largely driven by the Fashion and Lifestyle, Agri
and Textiles businesses. Higher trading of imported fertilizers in the
Agri-business has augmented profitability, including pricing gain due to
favourable forex movement. Improved realisation in the Rayon and the Textiles
businesses also contributed. However, dumping from China and rise in production
costs strained profitability in the Carbon Black and Insulators businesses.
Earnings before
Tax and Exceptional Items grew by 8%. A provision of Rs.1040.000 Millions has
beenmade towards entry tax liability, largely related to the earlier years; the
matter is sub-judice.
As a result, net
profit de-grew by 9% to Rs.3450.000 Millions.
NEW INTIATIVES
/MAJOR ACTIVITIES
·
Brown Field Expansion
Indian Rayon is
planning to expand its presence in fine and superfine VFY segment using Spool
Technology from ENKA, Germany at a capex of about Rs.2700.000 Millions. The new
technology will help Indian Rayon to manufacture premium segment quality yarn and
cater to high margin premium segment. A sum of Rs. 76 Millions has already been
spent.
·
Restructuring of IT-ITeS Business
As a part of
restructuring of IT-ITeS business, the Company has, during the year purchased
19,27,334 Equity Shares and 8,25,999 Equity Shares of Aditya Birla Minacs
Worldwide Limited (ABMWL) from RHCP TXW Investments Inc. and RHCP Fund Holdings
(Cyprus) Limited. respectively. Further, as part of the above restructuring,
Aditya Birla Minacs IT Services Limited and Aditya Birla Minacs Technologies
Limited, subsidiaries of the Company, have been merged with ABMWL through a
scheme of amalgamation sanctioned by the Karnataka High Court on 5th September,
2011. Consequently the shareholding of the Company and its subsidiary in ABMWL
has increased to 99.85% as on 31st March, 2012.
·
Preferential Allotment
With a view to
strengthen the balance sheet of the Company, the Directors had been considering
various proposals including capital infusion. Accordingly, in their meeting
held on 26th March, 2012, the Board of Directors have decided to issue
1,65,00,000 warrants to the Promoters/ Promoter groupin accordance with
relevant SEBI guidelines for an aggregate sum of Rs.15000.000 Millions. This
was approved by the shareholders in their meeting held on 25th April, 2012.
Accordingly, 25% of the above issue i.e., Rs.3250.000 Millions has been
received by the Company on 10th May, 2012 in terms of the relevant
SEBI guidelines.
This equity
infusion will not only strengthen the financial position of the Company butalso
act as a seed capital for capturing the next level of growth.
·
Acquisition of Future Group’s Pantaloon Retail
Format Business
To meet the
Company’s strategic intent to be on the top of the league and to be the largest
integrated branded fashion player in the country through an extension into the
value segment, the Directors have decided, in principle, on 30th April, 2012 to
acquire, directly or through its subsidiaries, a controlling stake in Pantaloon
Format business, a division of Pantaloon Retail (India) Limited by making an
investment of about Rs.8000.000 Millions by way of optionally fully convertible
debentures, subject to necessary approvals.
This acquisition
will catapult the Company to the pole position in the branded fashion space in
all the segments
with a pan India
presence.
The business-wise
performance review, outlook and strategy have been spelt out in depth in the
Management Discussion and Analysis section, which forms part of the Annual
Report.
AWARDS AND
RECOGNITION
The Company has
been the proud recipient of the following awards and recognitions –
INDIAN RAYON
DIVISION
·
Environment Excellence Award - 2011 in Chemical
Sector, Awarded by Green Tech Foundation, New Delhi
INDO GULF
FERTILISERS DIVISIOIN
·
Certification for ISO / IEC 27001:2005 Awarded by
Bureau Veritas Certification.
JAYA SHREE TEXTILE
DIVISIOIN
·
Second position under `Sustained’ category in CII
Eastern Region Productivity Awards 2011-12.
CARBON BLACK
DIVISION, PATALGANGA
·
12th Annual Greentech Environment Silver Award 2011
in Chemical Sector by Greentech Foundation, New Delhi.
MADURA FASHION AND
LIFESTYLE
·
Peter England Fashion And Retail Limited was
awarded Brand Equity Award in The Economics Times.
·
Van Heusen won A Power Band Award 2011 in Planman
Marcom.
·
Peter England Fashion And Retail Limited was
awarded Bronze Award in the Best Website in Retail category at BBC.com Campaign
India Digital Media Awards.
·
Van Heusen
won “Most Popular Western Wear Brand Award - Female” at Images Fashion Awards
2011.
·
Allen Solly received Best website/ microsite –
Product for spring/summer 2010 collection in Indian Digital Media Awards (IDMA)
2011.
·
3rd Global Youth Marketing Awards to Allen Solly,
Van Heusen Woman and Louis Philippe.
ADITYA BIRLA
INSULATORS- RISHRA DIVISION
·
IMC RAMKRISHNA BAJAJ NATIONAL QUALITY AWARD –
Performance Excellence Trophy 2011 in Manufacturing Category.
ADITYA BIRLA
INSULATORS- HALOL DIVISION
·
CAPEXIL Special Award – Export Achievement in
Porcelain Insulators.
MANAGEMENT
DISCUSSION AND ANALYSIS
Indian economy:
Slowing investments and high inflation affecting growth
The financial year
2011-12 proved to be a challenging year for the economies across the globe.
Among the developed
economies, the US witnessed a rating downgrade and Euro zone faced debt crisis
while Japan was adversely impacted by earthquake and tsunami. Among the
emerging economies, GDP growth in China and India came under pressure of tight
monetary measures to combat stubbornly high inflation.
Indian economy,
per se, witnessed many highs and lows during the year.
Its GDP growth
rate fell year on year to 6.1% during the third quarter of 2011-12 – touching
its lowest level in past two years. Compared to 8.5% growth attained in
2010-11, GDP growth is expected to decline to 6.9% during 2011-12.
Indian Rupee
weakened against US dollar to its historically low level of 54.
Benchmark interest
rates touched the peak of past ten years, affecting industry growth. Industrial
growth averaged 2.8% during the year vis-à-vis 8.2% growth posted last year.
After hiking key
policy rates thirteen times in the past two years, the Reserve Bank of India
(“RBI”) has cut the cash reserve ratio by 125 basis points and repo rate by 50
basis points in past five months.
Still interest
rates are at high level and RBI will watch for inflationary trend before
announcing further rate cuts to boost the growth.
WPI-based
inflation remained stubborn at 6.9% in March 2012.
A large fiscal
deficit, arising from high social sector spending and a spike in crude oil
prices, has only added to the woes of Indian economy.
Going forward,
though inflation and interest rates are anticipated to ease from current
levels, slowing investments and declining capital formation may have a greater
bearing on the prospective growth of Indian Economy.
Aditya Birla Nuvo:
Reflecting strength of its conglomerate model
Amidst this
challenging macro-economic environment, Aditya Birla Nuvo (“ABNL”) has
outperformed the industry across most of its businesses and posted strong
earnings. While some of the businesses were affected due to
sector specific
challenges, other businesses supported overall earnings. This reflects the
strength of its conglomerate model. The businesswise key highlights and
achievements are detailed below.
Financial
Services: Aditya Birla Financial Services (“ABFS”) is a large non-bank player in
India. With funds under management of USD 17.5 billion and revenue size of USD
1.3 billion, it ranks among top 5 fund managers in India, excluding banks and
LIC.
·
Birla Sun Life Insurance and Birla Sun Life Asset
Management improved their rankings and gained market share.
·
Aditya Birla Finance, the NBFC arm, almost doubled its
book size and diversified its portfolio.
·
Aditya Birla Private Equity launched its second
fund.
·
The Broking business garnered its all time high
retail market share in commodity as well as equity broking segment.
·
With a strong emergence of profitability, Birla Sun
Life Insurance declared its maiden dividend.
Telecom: With 1.4 billion
minutes of usage per day, Idea Cellular ranks among the top 10 cellular
operators in the world. Idea is third largest in India with a revenue market
share1 of 14.4%. It serves a large 112.7 million subscribers’ base. Idea
Cellular:
·
Has been the biggest revenue market share gainer in
the past two years
·
Idea ranks 1st or 2nd in eight service areas in
terms of revenue market share.
·
Accounted for 20.6% of industry’s incremental
mobile revenue during the calendar year 2011.
·
Enjoys the highest active subscribers’ ratio in the
Industry and leads as a Mobile Number Portability provider.
·
Is a USD 6.5 billion (Rs.327000.000 Millions)
company by market cap and USD 4 billion (Rs.195000.000 Millions) company by
revenue size.
Fashion and
Lifestyle: Madura Fashion and Lifestyle is the largest premium branded apparel
player in India.
·
Madura reached Rs.22500.000 Millions (USD 450
million) revenue mark.
·
Its revenue almost doubled during the last two
years – growing at a CAGR of 34%.
·
It sells two branded apparels every three seconds
through 1,129 exclusive brand outlets (“EBOs”) spanning across 1.6 million
square feet besides more than 1,400 departmental stores and multi brand
outlets.
Acquisition of
controlling stake in Future Group’s ‘Pantaloons Format’ Business: To fortify the
Company’s position in the Fashion and Lifestyle sector, the Board of Aditya
Birla Nuvo has approved the proposed acquisition of a controlling stake in
Future Group’s ‘Pantaloons Format Business’ post its demerger from Pantaloon
Retail (India) Limited (“PRIL”), subject to the requisite approvals.
The key strategic
benefits of the transaction:
Extending
footprints into the fast growing value fashion segment:
·
Value segment is the largest contributor to the
Indian apparel market size with around 40% share
·
Pantaloons Format is a popular and growing platform
having strong presence across 31 Indian cities.
Addressing to a
larger segment of market
·
Post this acquisition, ABNL’s operating market size
will expand. It will have multiple brands and store formats to offer a complete
range of casuals, formals, ethnic wear, party wear and sports wear for Men,
Women and Kids.
Structure of the
transaction:
·
PRIL will issue Rs. 800 Millions Optionally Fully
Convertible Debentures (“OFCDs”) to ABNL or its subsidiary.
·
PRIL will demerge its Pantaloons Format business
(resulting entity) through court scheme of arrangement.
·
PRIL will transfer the net assets of this Format,
its apportioned debt of Rs.8000.000 Millions and OFCDs of Rs.8000.000 Millions
to the resulting entity.
·
ABNL’s stake in the resulting entity, post demerger
will be about 45% triggering an open offer.
·
Enterprise Value of Pantaloons Format business
comes to Rs.26000.000 Millions.
·
ABNL will make an open offer to the shareholders of
the resulting entity.
·
ABNL’s holding in the resulting entity post open
offer shall be a minimum of 50.01%.
·
The resulting entity will become a listed
subsidiary of ABNL.
·
The proposed transaction is likely to be completed
within 8 to 10 months, subject to the finalisation of the Scheme of
Arrangement, due diligence, statutory and other requisite approvals.
IT-ITeS : Aditya Birla
Minacs is among the top 10 Indian BPO companies. Aditya Birla Minacs:
·
Achieved Rs.20750.000 Millions (USD 415 million)
revenue mark.
·
Sold total contract value of USD 730 million and
won 16 new clients.
·
Has global delivery capacities serving more than
100 clients including several Fortune 500 clients through 36 centres and more
than 19,700 employees.
Manufacturing: Having a combined
revenue of USD 1.25 billion, manufacturing businesses yielded an ROACE of 20%
during 2011-12.
·
Dumping from China adversely affected the capacity utilisation
and profitability of Hi-tech Carbon, the second largest carbon black
manufacturer in India and Aditya Birla Insulators, the largest manufacturer of
insulators in India.
·
Combined EBITDA was maintained year on year led by
the strong earnings growth in the other manufacturing businesses.
·
Indo Gulf Fertilisers, the 8th largest urea
manufacturer in India, crossed Rs.21000.000 Millions revenue mark. It achieved
its highest ever urea production and sales.
·
Jaya Shree textiles, the largest
manufacturer of linen yarn and fabric in India, achieved its highest ever
earnings. Its revenue crossed Rs.10000.000 Millions mark.
·
Indian Rayon, the second largest
manufacturer of viscose filament yarn in India, became the largest exporter of
VFY from India for the 7th year in a row.
Strong earnings
growth
Aditya Birla Nuvo has delivered a strong growth in
the consolidated earnings.
Most of its businesses are competitively well placed
and are contributing to the earnings growth.
·
Revenue rose
by 20% to Rs.218400.000
Millions (USD 4.5 billion)
·
EBITDA surged
by 21% to RS.32590.000
Millions (USD 652 million)
·
Net Profit
grew by 8% to Rs. 8900.000 Millions
(USD 178 million)
Financial Services
(Aditya Birla Financial Services)
India has one of
the highest household savings rate in the world, even though it has come off
its peak due to high inflation. Household savings in India as a percentage of
GDP was around 33% during 2011-12 compared to 22% a decade ago. It is expected
to be further rising. A recent study of Global Financial Literacy points out
that though the country has one of the highest savings rate among its global
peers, the households may not be aware of many options to invest in. A large
proportion of financial savings is being deployed in bank deposits, which
offers a huge potential market size for non bank financial services and
products. Moreover, growing share of working population, burgeoning middle
class segment and rising per capita income levels indicate strong long term
growth potential of the Indian financial services sector.
Besides being
equipped with a nation-wide distribution network, a large customer base, a
talented human resource pool, proven track record of product innovation,
customer centric approach and superior investment performance, Aditya Birla Financial Services (“ABFS”) has
a strong parent brand. This will enable Aditya Birla Financial Services to
capitalise on the long term growth opportunities offered by the Indian
financial services sector.
Currently, the
Indian financial services sector is witnessing growth challenges due to
regulatory changes and unfavourable investment climate. The financial year
2011-12 saw shrinkage across most of the fee and agency based businesses. Only
lending business has grown. In such a market, Aditya Birla Financial Services
has strengthened its market positioning across the business verticals.
Aditya Birla
Financial Services is today a large non bank player. Having funds under management
of about Rs.867500.000 Millions (USD 17.5 billion), ABFS ranks among top 5 fund
managers in India excluding banks and Life Insurance Corporation of India
(“LIC”). It has a strong presence across seven business verticals viz., Life
Insurance, Asset Management, NBFC, Private Equity, Broking, Wealth Management
and General Insurance Advisory. Anchored by 17,000 employees and trusted by 5.5
million customers, ABFS has a nation-wide reach through over 1,775
branches and about 200,000 agents /
channel partners.
Aditya Birla
Financial Services has launched an online money management platform - Aditya
Birla Money MyUniverse. This unique brand agnostic platform enables customers
to aggregate their various financial relationships in a highly secure environment
and provides customised and completely automated advice on money management,
based on the financial position and risk profile of the customer. The platform
also enables users for expense tracking, setting budgets, getting alerts,
investment transactions, tax filing and registering for bill payment.
Aditya Birla Money
My Universe was voted “Product of the year, 2012” for innovation in financial
services, in a survey of over 30,000 people conducted by Nielsen.
While ABFS
registered a moderate growth in revenue, it posted a strong growth in the
profitability. The combined revenue of ABFS grew year on year from Rs.63130.000
Millions to Rs.65500.000 Millions (about USD 1.3 billion). Its earnings before
tax surged by 27% from Rs.4720.000 Millions to Rs.6000.000 Millions. Net profit
at Rs.5390.000 Millions registered a strong growth over previous year.
ABFS is the
largest contributor to ABNL’s consolidated earnings before tax – It contributed
45% during 2011-12.
Life Insurance
(Birla Sun Life Insurance Company Limited)
Industry Overview
The Indian Life
insurance industry ranks among top 10 life insurance markets in the world and
among the top 5 in Asia. It currently comprises 23 private life insurers and
one public sector life insurer – LIC. The Indian Life Insurance industry covers
a large part of Indian population through the distribution network of more than
11,500
branches and over
2.6 million advisors, in addition to the bancassurance and other third party
distribution channels. The industry garnered new business premium2 of
Rs.677700.000 Millions (about USD 13.6 billion) during 2011-12. LIC contributed
to 65% of industry’s new business while private life insurers contributed
remaining 35% Top 7 out of 23 private players contributed to about 71% of the
private sector’s new business. The top 7 private life insurers and LIC combined
together accounted for 90% of industry’s new business.
Following the
issue of new ULIP (Unit Linked Insurance Plan) guidelines by Insurance
Regulatory and Development Authority (“IRDA”) in September 2010, new business
premium growth remained affected in 2011-12 too. During the first half year,
de-growth was prominent since new guidelines came into effect from nearly mid
of the previous year. During the second half year, private players registered
almost flat growth. While
rationalisation of distributors’ compensation was a major factor impacting
growth, regulatory uncertainty around new product launches, ambiguity on the
pension products, weak equity markets and high interest rates were some of the
other variables that impacted new business performance.
Performance Review
Birla Sun Life
Insurance (“BSLI”) completed 12 years of its journey towards serving the
protection, health, retirement, children’s future and wealth management needs
of varied customer segments. During 2011-12, BSLI
reported lowest
de-growth among top 7 private life insurers and improved its private sector
market share from 7% to 7.8%. It moved one step up to rank 5th among the
private life insurers BSLI continues to follow a successful multi-channel
distribution strategy with over 650 branches, about 139,000 agents, 5 bank
partners and about 200 third party distributors.
In 2011-12, new
business premium income of BSLI at Rs.19260.000 Millions de-grew year on year
by 7% due to the ULIP segment. Non-ULIP sales gained traction and contributed
to 46% of BSLI’s individual new business vis-a-vis 25% in the previous year.
BSLI has successfully transitioned its sales force from selling predominantly
ULIPs to now having a balanced product mix. BSLI’s performance in the Group
segment was also strong driven by improvement in the product lines. This has
helped BSLI to achieve 2nd rank amongst private insurers in the group segment.
Renewal premium
rose by 10% to Rs.39590.000 Millions. The total premium income grew by 4% to
Rs.58850.000 Millions. The conservation ratio at 76% and the 13th month
persistency at 82% signify customer stickiness and are among the best in the
industry.
AUM grew by 7% to Rs.211100.000
Millions (about USD 4.2 billion). BSLI continued to deliver superior investment
returns to its policyholders.
During the year,
operating expenses to premium ratio improved from 21.2% to 20.6% and commission
ratio reduced from 6.7% to 5.5%.
Driven by rising
profit from in-force business, declining expense ratios and changes in product
mix and structures, earnings before tax of BSLI surged by 51% from RS.3040.000
Millions to RS.4610.000 Millions.
No capital
infusion has been required since past two years.
With the strong
emergence of profitability, BSLI declared its maiden dividend amounting to
Rs.985.000 Millions @ 5% of its paid-up capital. Aditya Birla Nuvo received
Rs.730.000 Millions for its 74% shareholding.
During the year,
the Company filed several new products with the regulator to focus on
under-penetrated segments and to broad-base its product mix.
The agency channel
continues to be the largest distribution channel for BSLI contributing to 71%
of its individual new business sales during the year. The bancassurance channel
contributed 14% and Corporate Agents and Brokers accounted for 15%. In 2011-12,
BSLI ranked amongst the top 3 private life insurers in terms of new business
sales from agency channel and has consistently been in the top quartile in
terms of front line sales staff productivity.
Outlook
The last two years
have been challenging for the Indian life insurance industry in terms of new
business growth. However, its long term growth prospects undoubtedly remain
strong considering that India is still a fairly underpenetrated life insurance
market. The insurance density or insurance premium per capita in India at USD
55.5 is one of the lowest in the world (Source: Swiss Re Sigma, 2011). Also
looking at the brighter side of recent regulatory changes, these have not only
made ULIPs more cost competitive for the customers but also pushed life
insurers towards improving their operating efficiencies and enhancing customer
service standards – which will be positive for the industry in the long run. In
the short to medium term, stability in the regulatory environment, improvement
in the investment climate and evolution of the distribution channels will be
key growth drivers.
For BSLI, the
action areas will be strengthening the product portfolio, enhancing the
operating competitiveness and distribution efficiencies, leveraging the
bancassurance channel and improving the customer retention and service
standards. A widely trusted brand name, superior investment performance, experienced
team and a proven track record in product innovation will support BSLI in
effective execution of these actions to further strengthen its market
positioning.
Asset Management
(Birla Sun Life Asset Management Company Limited)
Industry Overview
The Indian mutual
fund industry comprises 44 asset management companies. Top 5 asset management
companies contribute to 54% of industry’s average AUM (AAUM)1. After continuous
growth for the past few years, the Indian mutual fund industry has witnessed
decline in its AUM during last two years. After declining by 8% in the previous
year, the AAUM1 of the industry de-grew by 5% from about Rs.7008000.000
Millions (USD 140 billion) in 2010-11 to around Rs.6648000.000 Millions (USD
133 billion).
Industry’s equity
AAUM1 de-grew by 3% to about Rs.2018000.000 Millions (USD 40 billion) on
account of equity market action. Share of equity AAUM in industry’s total AAUM
remained flat at 30%. Nonequity assets witnessed 6% de-growth during the year
largely due to outflow of banks’ investments in debt and liquid funds following
the direction given by RBI to limit investments in mutual fund schemes up to
10% of net worth as on 31st March of the previous year.
Performance Review
Birla Sun Life
Asset Management Company (“BSAMC”) completed 17 years of its journey towards
offering wealth creation solutions to its customers. During the year, BSAMC
outperformed the industry and increased its market share to 9.2% in terms of
domestic AAUM1. BSAMC reported 2nd lowest de-growth in domestic AAUM1 among the
top 5 players (Source: AMFI).
With a total AAUM
of Rs.644600.000 Millions (USD 13 billion), BSAMC improved its ranking by one
notch to become the 4th largest asset management company in India.
It continued to
focus on alternate assets. Out of total commitments received under the real
estate onshore fund launched in the previous year, about 25% has been deployed.
BSAMC had set up offices in Singapore and Dubai to reach out to international
customers.
Due to reduction
in the AUM size and change in asset mix, earnings remained under pressure
across the industry. Revenue of BSAMC de-grew from Rs.3660.000 Millions to
RS.3150.000 Millions and earnings before tax from Rs.1260.000 Millions to
Rs.890.000 Millions.
BSAMC is serving
its large investor base through a strong distribution network of 103 branches
and about 34,900 financial advisors. About 82% of its AUM is rated under the 4
and 5 Star categories. As an
acknowledgement of its investment performance, following awards and
recognitions were conferred on BSAMC at various forums:
·
“The Best Debt Fund House of the year 2011” by CNBC
TV 18 – CRISIL, UTV Bloomberg and Outlook Money
·
“Best Mutual Fund House of the Year - Runner up” by
Outlook Money
·
“Golden Peacock Award, 2011” for innovative ‘Mobile
Investment Manager’ which brings the convenience of transacting and managing
investments to the mobile platform.
Outlook
Growth of the
Indian mutual fund industry was affected during the last two years.
Nevertheless, the long term outlook for the mutual fund industry remains
attractive backed by lower mutual fund penetration, growing incomes and savings
level. Mutual fund AUM as a percentage of Indian GDP has grown from 6% in
2005-06 to more than
13% in 2011-12.
Yet it is very low compared to 50%-90% in the developed countries. Furthermore,
the increasing focus of asset management companies on the alternate assets and
efforts for increasing retail participation through Systematic Investment Plans
(“SIPs”) etc. will also contribute to the growth.
With a target of
profitable growth in AUM size, BSAMC will focus on enhancing distribution
capacity and productivity across the channels, improving customer engagement
and costs rationalisation. Having a strong brand, experienced management and
proven track record of investment performance, it is well positioned as a
leading player in the Indian mutual fund industry.
NBFC (Aditya Birla
Finance Limited)
Industry Overview
Aditya Birla
Finance (“ABFL”) is categorized as systematically important non-deposit taking NBFC.
There are more than 300 systematically important non-deposit taking NBFCs in
India. ABFL is one of the leading players in the Loan against Securities
(“LAS”) and corporate bill discounting segments.
While Indian
financial services sector faced growth challenge in the fee and agency based
business verticals in past two years, lending business has grown. However, rise
in cost of borrowings led to contraction of net interest
margin (“NIM”) across
the NBFCs. As a monetary measure to tame inflation, RBI increased the key
policy rates thirteen times between March 2010 and November 2011 which forced
banks to raise the lending rates. Though in past five months, RBI has cut cash
reserve ratio by 125 bps and repo rate by 50 bps, lending rates still remain at
high level.
Performance Review
During 2011-12,
lending book size of ABFL grew significantly across all the lines of business.
Total closing book almost doubled year on year to Rs.34250.000 Millions. The
Capital Market portfolio (Promoter funding, LAS, broker funding, IPO financing,
ESOP financing etc.) expanded by 22% to Rs.16250.000 Millions. Corporate
Finance portfolio (Vendor financing, corporate bill discounting, structured
finance, term loans etc.) doubled to more than Rs.8500.000 Millions. ABFL
forayed into Infrastructure Financing and Mortgage Funding (loan against
property and lease rental discounting) and closed the year with a book of over
Rs.6500.000 Millions and Rs.650.000 Millions respectively.
Despite the
uncertain equity markets and slowing down corporate lending activities, ABFL
was not only able to achieve a healthy growth in existing segments, but it has
also built a strong infrastructure financing book.
Revenue of ABFL
surged by 78% to Rs.3480.000 Millions in line with the growth in its lending
book size. Earnings before tax rose by 51% to Rs.840.000 Millions. Net interest
margin was lower year on year due to rise in cost of borrowings.
ABFL received a
capital infusion of Rs.750.000 Millions during the year to support expansion of
its lending book. Its net worth stands increased from Rs.4970.000 Millions to
Rs.6280.000 Millions. Its balance sheet has an optimum leverage of around 5
times of net worth.
The business is
growing at a good pace and will require capital for future growth.
The short term
borrowings program of ABFL was enhanced from Rs.25000.000 Millions to
Rs.30000.000 Millions and has been assigned ‘A1+’ rating by ICRA – the highest
credit quality rating assigned by ICRA to short term debt instruments. Its
long-term borrowing limit of Rs.10000.000 Millions has been assigned ‘AA’
rating by ICRA. Besides these, a Rs.2500.000 Millions sub-ordinate debt program
(Tier II NCDs of 10 years and above) has been assigned ‘AA’ rating by ICRA as
well as CARE.
Outlook
The outlook for
the NBFC sector remains positive backed by the lower credit penetration and
huge capital formation requirement of the country.
However, in the
short term, the sector may found the macro-economic environment challenging for
growing quality book on account of overall bearish sentiments, volatile stock
markets and high interest rates.
ABFL aims at
scaling up its book size cautiously while managing risks optimally. Leveraging
Aditya Birla Group’s large ecosystem for SME funding will be a key focus area.
Extension of portfolio with entry in new arrays of products, strong parent
brand and an experienced team having seen more than two decades of business
cycles will aid ABFL in reaching towards its goal.
Private Equity
(Aditya Birla Private Equity)
Industry Overview
Growth momentum of
Private Equity (“PE”) investments in India built during 2010 continued in the
calendar year 2011 too. During 2011, total investments by the PE firms in India
rose by 24% to reach USD 10 billion (including Venture Capital investments and
excluding PE investments in Real Estate) compared to USD 8 billion in the
previous calendar year. The number of PE deals increased from 362 deals in 2010
to over 441 deals in 2011. This takes total investments by PE firms in India to
about USD 47 billion across more than 2,000 transactions over the past five
years (Source: Venture Intelligence).
Performance Review
After the
successful launch of its first fund at a size of Rs.8810.000 Millions
(including 20% sponsor’s commitment) in March 2010, Aditya Birla Private Equity
(“ABPE”) launched its second fund called Sunrise Fund.
Sunrise fund
closed for subscription in March 2012 at a size of Rs.2990.000 Millions
(including 10% sponsor’s commitment) taking total funds under management to
Rs.11790.000 Millions.
The first fund has
already deployed about 50% of its total corpus in following companies:
a) Anupam
Industries – a leading manufacturer of industrial and construction cranes,
b) Bombay Stock
Exchange – the oldest stock exchange in Asia,
c) Credit Analysis
and Research Limited. – a leading credit rating agency,
d) GEI Industrial
systems and its subsidiary – a leader in air-cooled heat exchangers and
condensers for more than 40 years
e) Alphion India
Private Limited. - Gigabit passive optical networking systems maker for next
generation broadband and mobile backhaul
f) Trimax IT
infrastructure and Services Limited. - Systems Integration, IT Infrastructure
Management Services Sunrise Fund has made one investment till date in SMS
Paryavaran Limited. which is into design and construction of Water and
Waste-Water Treatment systems.
Both the funds
have strong pipeline of deals to deploy the balance of the fund corpus Aditya
Birla Capital Advisors Private Limited (“ABCAP”) provides the investment
management and advisory services to ABPE Trust, a venture
capital fund
registered with SEBI. During 2011-12, ABCAP posted revenue of Rs.210.000
Millions and net profit of Rs.400.000 Millions vis-a-vis Rs.1800.000 Millions
and Rs.400.000 Millions respectively in the previous year.
Outlook
In the past six
months, PE investments have slowed down due to economic uncertainty and weak
capital markets. However, according to Venture Intelligence, the large
uninvested capital lying with PE funds and the increasingly attractive
valuations of Indian companies – including the listed ones – signals to a
turnaround in the coming future.
Backed by its
strong investment management team and salient parentage brand, Aditya Birla
Private Equity is well positioned to tap the opportunity offered by the private
equity space.
Broking (Aditya
Birla Money Limited)
Industry Overview
The Indian retail broking
industry is highly fragmented with the top ten players contributing to less
than 20% of equity broking market size. The number of demat accounts in the
country shows the depth of equity penetration. Currently there are about 20
million demat accounts in India, which grew at a CAGR of 14% during the past
five years. However in 2011-12, industry has seen the lowest demat account
additions in past five years.
During 2011-12,
Sensex – the benchmark index of BSE – de-grew by 10% and S and P CNX Nifty –
the benchmark index of NSE – declined by 9%. The total cash equity volumes of
BSE and NSE put together de-grew by 26% to USD 695 billion; however Futures and
Options (“FandO”) volumes grew by 7% to USD 6.3 trillion. F and O segment
accounted for 90% of the combined equity volumes at NSE and BSE vis-a-vis 86%
in 2010-11. Due to increasing contribution of lower margin F and O segment in
total pie, earnings of retail brokerage houses have been impacted. This trend
indicates increasing speculative activities rather than retail participation.
Retail participation in cash equity segment reduced to 51% compared to 56% in
the previous year. The combined commodities volumes at MCX and NCDEX rose by
55% to USD 3.5 trillion.
Performance Review
Aditya Birla Money
(“ABML”) witnessed growth in commodity volumes while cash market volumes were
affected across the Industry. Cash market volumes of ABML de-grew by 19% while
commodity volumes rose by 145%. F and O volumes of ABML grew by 6% despite
falling retail volumes in derivatives. F and O volumes accounted for 81% of
total equity volumes of ABML. During the fourth quarter, its market share in
the retail cash equity segment, retail FandO segment and commodity segment
increased year on year from 0.9% to 1.4%, from 0.5% to 0.9% and from 0.28% to
0.46% respectively.
During 2011-12,
ABML’s revenue de-grew by 23% from Rs.11400.000 Millions to Rs.8800.000
Millions. ABML has increased its market share across the categories but the
revenue growth was impacted owing to sluggish industry volumes. Its net loss
increased from Rs.800.000 Millions to Rs.1800.000 Millions.
The number of
customers increased to about 292,000. Its points of presence increased from 969
to 985 consisting of 167 branches and 818 franchisees.
ABML has entered
into a strategic alliance with Allahabad Bank for providing online trading
platform to the bank’s customers. This deal has given ABML an access to a large
customer base of Allahabad Bank.
Outlook
Slow down in the
economy had a bearing on the capital markets and particularly the retail
participation. However, in the long run, growth opportunity does exist for the
Indian equity broking industry – given the lower penetration and rising per
capita income. Technology is going to play a major role in enhancing the retail
participation.
Aditya Birla Money
will continue to focus on the six pillars of this business – Brand, Product,
Distribution, Operations, Service and People – to gain market share and augment
its earnings. It will lay emphasis on cost optimisation and expanding its
business through a cost-effective business partner – based model.
Wealth Management
(Aditya Birla Money Mart Limited)
Industry Overview
While there are a few
large wealth management players in India; mutual fund distribution industry is
very fragmented. Aditya Birla Money Mart (“ABMM”) is the third largest
corporate distributor of mutual funds in India with Assets under Advisory of
more than Rs.125000.000 Millions as on 31st March 2012 [Source: Computer Age
Management Services (“CAMS”)]. ABMM is also a significant player in the wealth
management space.
Performance Review
Financial year
2011-12 was a challenging year for the wealth management industry as fixed
deposits and other safer investment avenues attracted household financial
savings amidst volatile capital markets. Equity broking volumes, new business
sales in the life insurance sector and AUM of the mutual fund industry
witnessed slowdown affecting the business of wealth management and distribution
players.
Revenue of ABMM
de-grew from Rs.7400.000 Millions to Rs.6000.000 Millions due to sluggish
financial markets. ABMM reported a net loss of Rs.2100.000 Millions vis-à-vis
loss of Rs.1900.000 Millions (before one-time exceptional loss) incurred in the
previous year.
ABMM has a strong
nation-wide distribution presence through 32 branches and about 14,000 channel
partners.
Outlook
High savings
growth in India implies a huge opportunity for financial intermediation
services. Distribution and wealth
management industry will continue to play an important role in the growth of
life insurance, mutual funds and equity broking products and services.
ABMM’s thrust will
be to provide quality wealth management solutions to its client through product
innovation and technology support.
General Insurance
Advisory (Aditya Birla Insurance Brokers Limited)
Industry Overview
Gross premium
underwritten in the general insurance segment has grown by 23% from USD 9.5
billion to USD 11.7 billion (Source: "IRDA"). Aditya Birla Insurance
Brokers Limited. ("ABIBL"), erstwhile Birla Insurance Advisory and
Broking Services Limited., is one of the leading general insurance brokers in
India.
Performance Review
The premium
placement by ABIBL surged by 49% from Rs.20500.000 Millions to Rs.30400.000
Millions leading to strong earnings growth. Revenue grew by 52% from
Rs.2100.000 Millions to Rs.3200.000 Millions. Earnings before tax grew three
times from Rs.300.000 Millions to Rs.900.000 Millions and net profit grew from
Rs.200.000 Millions to Rs.600.000 Millions.
Outlook
Lower general
insurance penetration in India is likely to boost growth of general insurance
industry. ABIBL will focus on reaching a larger customer base in a cost
effective way to grow the business.
Telecom (Idea
Cellular Limited)
Industry Overview
Indian wireless
sector, the second largest market in the world in terms of subscribers’ base
has seen sharp reduction in tariffs during 2009-10 and 2010-11. This affected
revenue growth of the sector while its subscribers’ base was growing at a
strong pace. To the much respite of the sector, reduction in tariffs seen in
earlier years got arrested during financial year 2011-12, signifying the
unsustainable levels of these tariffs to yield any reasonable return on the
investments.
With a strong net
addition of over 107 million subscribers, sector’s total subscribers’ base has
reached to 919 million as on 31st March 2012.
Compared to a 19%
growth in subscribers’ base, gross revenue of the Indian wireless sector rose
by 15% to USD 27 billion during calendar year 2011. Out of total 15 cellular
operators, the top 3 players namely Bharti Airtel, Vodafone and Idea Cellular
contributed to about 67% of the Industry’s wireless gross revenue. All the
major
operators launched
3G services in India during the later part of the previous financial year.
The industry is
currently facing an uncertain regulatory environment following the cancellation
of 2G licenses by the Hon’ble Supreme Court in February 2012. In April 2012,
the recommendations of the regulator, towards spectrum auctions, pricing and
re-farming, have only added to this uncertainty.
Performance Review
With total Minutes
on Network of 1.4 billion per day, Idea Cellular (“Idea”) ranks among the top
10 cellular operators in the world. In India, Idea is 3rd largest in terms of
revenue market share1 at 14.4%. Idea is the market leader in four service areas
namely Kerala, Maharashtra, Madhya Pradesh and Uttar Pradesh (West), in terms
of
revenue market
share. It ranks 2nd in another four service areas viz., Haryana, Punjab, Andhra
Pradesh and Gujarat.
Being the fastest
growing major cellular operator in India, Idea has been outperforming the
industry across key parameters. This reflects the strength of its brand and
quality of its services.
For instance, Idea
has been the biggest revenue market share gainer since past two years. Idea has
around 93% of its reported subscribers as VLR (active) subscribers, which is
highest in the industry. With the net gain of 2.9 million subscribers and the
lowest port-out ratio, Idea leads the industry since the launch of Mobile
Number Portability (“MNP”). One out of every four existing customers in India,
who chooses to port out, prefers Idea.
Idea’s
subscribers’ base grew by 26% in past one year from 89.5 million to 112.7
million. More importantly, Idea continued to expand its revenue market share
garnering a much larger share of industry’s incremental revenue. Idea
contributed to 20.6% of industry's incremental mobile revenue during calendar
year 2011.
Idea’s average
realisation per minute (“ARPM”) during the fourth quarter has grown from Rs.
0.406 in 2010-11 to Rs. 0.422 in 2011-12. Increased share of value added
services contributed to ARPM growth. Idea’s minutes on network grew by 25% to
reach 453 billion during the year – growing significantly faster than the
sector. Growth in
these drivers
spurred Idea’s earnings.
Revenue soared by
26% to Rs.1948900.000 Millions – growing at twice the industry growth rate.
EBITDA grew by 32% to Rs.51350.000 Millions. However, net profit de-grew from
Rs.89900.000 Millions to Rs.72300.000 Millions largely due to higher
depreciation/ amortisation costs and interest expenses on account of front
loaded 3G investments. Higher deferred tax also strained net profit. Currently,
Idea offers 3G services in 20 service areas (including roaming arrangements
with other operators) covering more than 3,000 towns and 10,000 villages. With
this, Idea is all set to exploit the untapped wireless broadband data market
and other emerging verticals of revenue like Mobile banking, M commerce,
M-health, M-education etc. In this direction, Idea has launched Idea smart
phones at attractive price points. Idea also provides Mobile Banking services
through ‘Idea My Cash’ – in an alliance with Axis Bank.
The Hon'ble
Supreme Court vide its judgment dated 2nd February 2012 quashed the licenses
granted pursuant to two press releases issued on 10th January 2008 and
subsequent allocation of spectrum. The Supreme Court has also directed the
TRAI, to make fresh recommendations for grant of license and allocation of
spectrum by auction and the Central Government to consider the recommendations
of TRAI and take appropriate decision within next one month for grant of fresh
licenses.
However, on an
application from the Government of India, the Hon'ble Supreme Court, vide its
order dated 24th April 2012 extended the date of spectrum auction, to be
concluded by Department of Telecommunications ("DoT"), to 31st August
2012 and allowed licenses to carry on the operations till 7th September 2012.
Idea incurred a
capital expenditure (including capital advances) of Rs.454500.000 Millions,
during the year. For fiscal 2012-13, capex guidance stands at Rs.350000.000
Millions excluding any payment towards spectrum.
With the
standalone net debt to EBITDA at 2.48 and net debt to equity at 0.93, Idea has
a strong balance sheet. Idea has been free cash flow positive since past two
quarters. With the declining capex requirements for 2G and 3G, free cash flows
will further strengthen balance sheet and provide cushion for future growth.
Outlook
The Indian
wireless sector continues to offer opportunities, both in voice and data, to
the quality operators in the long run. Though overall tele-density in India has
reached 76%, the rural tele-density still remains at only 38%. Moreover, launch
of 3G services provides a large growth opportunity in the data segment as the
broadband penetration in India stands at only 1.1%. However, some of the recent
regulatory developments are being viewed negatively by most of the industry
players, though the final outcome is yet to be decided by the Government / DoT.
Going forward, Idea will continue to focus on increasing its revenue market
share by capitalising on brand !DEA besides participating in the evolving
wireless broadband business. Supported by a quality subscribers’ base, sound
balance sheet and strong brand, Idea is well placed to outperform the sector
and emerge even stronger.
Fashion and
Lifestyle (Madura Fashion and Lifestyle)
Industry Overview
Branded apparel
industry has posted healthy growth in the previous two years, driven by same
stores sales growth as well as rapid retail expansion. This growth momentum has
moderated during 2011-12, particularly in the second half of the year, largely
due to the base effect and subdued demand. Overall consumer spends on
discretionary categories, like premium branded apparels, have been affected by
the inflationary pressure coupled with rise in apparel prices. Apparel prices
were increased by 15-20% across the industry to partly pass on the rise in
cotton prices and levy of excise duty. Most of sales growth. Amidst this
scenario, Madura Fashion and Lifestyle continued to outperform the industry,
with its like to like stores sales growing in double digits.
Performance Review
Madura Fashion and
Lifestyle (“Madura”) is the largest premium branded apparel player in India.
Its premium brands – Louis Philippe, Van Heusen, Allen Solly and its mass brand
– Peter England, are leaders in respective categories. Madura also retails
international brands like Armani Collezioni, Hugo Boss, Versace Collection,
Hackett, Adidas, Puma, Samsonite and many more under one roof ‘The Collective’.
Madura also has a strategic tie up with leading international brand Esprit for
distribution of its apparels in India.
Madura sells two
branded apparels every three seconds through its retail as well as wholesale
channel, serving varied fashion and lifestyle needs of its customers. Retail
channel comprises of 1,129 EBOs spanning across 1.6 million square feet and
contributes to 47% of Madura’s total revenue. Wholesale channel consists of
more than 1,400 Multi Brand Outlets and departmental stores viz., Shoppers
Stop, Lifestyle, Central etc.
Madura reached
Rs.225000.000 Millions revenue mark. It achieved 24% year on year growth in
revenue supported by a trong 22% growth in branded
garments volumes. Retail channel sales rose by 29%. Stores expansion and 10%
like to like stores sales growth contributed. During the year, Madura added 234
EBOs on a net basis.
Driven by the
strong sales growth across the brands and channels and improved product mix,
EBITDA surged by 46% from Rs.13600.000 Millions to Rs.19800.000 Millions.
Higher discounting and cost pressure were compensated by rise in apparel
prices.
Led by sound profitable
growth and improved working capital management, return on capital employed grew
significantly from 11% to 21%. Over the past two years, Madura has almost
doubled its turnover while managing capital employed at similar levels. Its net
working capital turnover is at 5.2 times.
Outlook
The long term
growth outlook of the domestic branded apparel industry remains bright backed
by strong demographics viz., rising disposable income, expansion of aspiring
middle class segment, large young population and increasing inclination towards
branded apparels. However, in the short term, consumer spends on premium
branded apparels are expected to remain subdued on account of high inflation.
Madura will
continue to leverage its brand leadership, expand its retail space and
strengthen channel relationships with a target of outperforming the industry
growth.
IT – ITeS (Aditya
Birla Minacs Worldwide Limited)
Industry Overview
During 2011-12,
global economic conditions remained challenging, especially in Europe. The
IT-ITeS industry did grow and customers did continue to outsource, though at a
slower pace. The business models of customers have started changing from cost
savings to standardisation, global flexibility and better technology. Customers
now expect vendors and outsourcing partners to invest in improving processes
whilst passing on continuing cost savings.
Performance Review
With a track
record of over 30 years, Aditya Birla Minacs is a leading global delivery
solutions provider that partners with global corporations and provides
solutions in the areas of Customer Lifecycle, Marketing, Finance and
Accounting, Procurement and IT services.
Aditya Birla
Minacs has been named in the Leaders category in ‘Global Outsourcing 100
companies, 2012’ by International Association of Outsourcing Professionals
(“IAOP”). Aditya Birla Minacs ranks among the top 10 Indian BPO companies by
revenue size.
Aditya Birla
Minacs won 16 new clients during the year. Aditya Birla Minacs sold Total
Contract Value (“TCV”) of more than USD 730 million vis-a-vis USD 775 million
sold in the previous year. About 40% of the TCV sold in 2011-12 was on account
of new business.
However, it has
witnessed slower conversion of sales pipeline due to challenging economic
conditions in the US and Europe.
Revenue grew year
on year by 23% to Rs.208200.000 Millions. Growth in the existing accounts,
conversion of order book and favourable forex movement contributed to the
growth in top-line. The clients located in US contributed 75% of the revenue while
Canada, Europe and Asia pacific contributed 15%, 4% and 6% respectively. The
revenue mix by the industry verticals (a) Manufacturing (b) TIME (Telecom,
Technology Infrastructure, Media and Entertainment), (c) Banking and Financial
Services, (d) Insurance and Healthcare and (e) IT Services is 56%, 28%, 11%, 1%
and 4% respectively. Revenue contribution from top 5 clients reduced from 53%
in 2010-11 to 50% in 2011-12.
Operating EBITDA
grew by 16% to Rs.20100.000 Millions. Operating EBITDA margin remained flat
absorbing costs incurred on ramp up for new contracts and opening up of two new
sites. Aditya Birla Minacs posted a net profit of Rs.7000.000 Millions
vis-a-vis Rs.7400.000 Millions attained in the previous year. During last year,
profit was higher to the extent of employment incentive arrears of Rs.2500.000
Millions. Moreover, a one-time cost of Rs.2100.000 Millions was incurred in
2011-12 on closure of one site in North America to achieve cost
rationalisation. The business is generating steady cash profit to fund its
capital expenditure and working capital requirements.
Aditya Birla Nuvo
acquired balance 11.72% holding in the ITeS subsidiary. After the merger of IT
and ITeS subsidiaries, ABNL and its subsidiary, holds 99.85% in the merged
entity.
Outlook
While the global
economic outlook seems to remain challenging, outsourcing contracts are
expected to grow at a steady rate. In fact, mid-sized companies that have been
slow adopters of outsourcing are also expected to enter the market due to cost pressure
and need to access technology and best practices. However, with the clients
demanding more than cost benefits out of the outsourcing contracts, sustaining
margin would be challenging for the outsourcing solutions providers.
Aditya Birla
Minacs will endeavour to sustain its sales momentum and optimise operating
costs to enhance its margin.
Manufacturing
Businesses
Aditya Birla Nuvo
has a strong market positioning across its manufacturing businesses. All the
manufacturing businesses of ABNL hold leadership position in their respective
sectors in terms of capacity as well as profitability
Aditya Birla Nuvo
is:
·
The second largest manufacturer of Carbon Black in
India (Aditya Birla Group is the largest manufacturer in the world in terms of
capacity at 2 million tons per annum)
·
The second largest producer and the largest
exporter of Viscose Filament Yarn in India
·
The eighth largest urea manufacturer and among the
top two best energy efficient urea plants in India
·
The largest Linen Yarn and Linen Fabric
manufacturer in India
·
India's largest and world's fourth largest
manufacturer of Insulators
These businesses
have an outstanding track record of consistent generation of strong cash flows
and return on capital employed. Cash flows generated by these businesses have
historically provided cushion to the balance sheet of Aditya Birla Nuvo for
funding the growth capital requirements of other businesses. At the same time,
ABNL continued to invest in the capacity expansion of these businesses to tap
sector growth opportunities.
Combined together,
manufacturing businesses registered a 33% growth in revenue during 2011-12 to
reach USD 1.25 billion. They have posted an EBITDA of Rs.7520.000 Millions
vis-a-vis Rs.7760.00 Millions earned in the previous year.
Agri-business
(Indo-Gulf Fertilisers)
Industry Overview
The financial year
2011-12 has been a mixed yearfor Indian Agriculture, with an excellent
kharifand an average Rabi. Urea sales volume grew from 28.2 million tons in
2010-11 to 29.5 million tons in 2011-12. Urea imports continued to surge and
have crossed 7 million tons in 2011-12. The industry is eagerly waiting for the
new investment policy to enable Brownfield / Greenfield projects to bridge this
gap.
The Government
policy of nutrient based subsidy ("NBS") for P (phosphorus) and K
(potassium) based fertilisers has ensured better availability of these
fertilisers. However, keeping urea (nitrogen based fertiliser) out of the
preview of NBS has led to lop sided usage of urea and adverse N, P, K ratio.
Usage of urea increased as the prices of P and K fertilisers doubled during the
year owing to increase in international prices and weakening of the Indian
Rupee. The industry is keenly awaiting the extension of NBS to Urea, to correct
this imbalance.
Performance Review
Today, Indo Gulf
Fertilisers is positioned as a complete agri solutions provider, offering an
entire range of agri inputs (fertilisers, seeds and agrochemicals) and services
to the farmers and catering to their needs right from sowing to harvesting.
Indo-Gulf is the 8th largest urea manufacturer in India and among the best
plants in India in terms of energy efficiency and
productivity. It
achieved its highest ever urea
production and
sales during the year.
Revenue soared by
69% to Rs.21070.000 Millions driven by commencement of trading of imported
fertilizers and increase in realisation (subsidy). Rise in feed and fuel
(natural gas) prices resulted in higher subsidies. Higher urea sales volume,
increased share of neem coated urea and increase in sales of seeds and
agrochemicals also contributed.
EBITDA rose by 20%
from Rs.1760.000 Millions to Rs.2110.000 Millions. Pricing gain on the imported
fertilisers on account of favorable forex movement also contributed.
Indo-Gulf is
operating at a strong return on average capital employed ("ROACE") of
26%. It is lower year on year owing to increase in working capital largely due
to rise in urea prices, commencement of trading of imported fertilisers and
slower recovery of subsidies.
'Birla Shaktiman'
has maintained its leadership position in its entire marketing territory zone –
Eastern Uttar Pradesh, Bihar, Jharkhand and West Bengal. Indo-Gulf has expanded
its product portfolio to cover the full range of N, P, K fertilizers by offering
'Birla Shaktiman DAP, NPK and SSP'. These products were well received by the
farmers and the channel partners.
Outlook
The recent
government policies intend to encourage indigenous production and reduce
subsidy burden by decreasing imports. This is a welcome move. However, better
clarity on the pricing and availability of the natural gas is awaited.
Indo-Gulf is
working towards de-bottlenecking and revamping of its existing plant for
reducing the energy consumption and enhancing the productivity. Indo-Gulf has
received clearance from the Ministry of Environment and Forests for the
brownfield expansion and it now awaits policy clarity on the allocation and
pricing of the natural gas. It is also evaluating setting up of a customised
fertilisers plant. It also remains focused on scaling the agri-inputs trading
segment. Being located in the agriculture heartland of the country and having
brand leadership, Indo-Gulf is well positioned to capture future growth in this
sector.
Carbon Black
(Hi-Tech Carbon)
Industry Overview
Carbon Black is
used in the tyre industry as well as in the non-tyre sector as reinforcing
filler in rubber products and in the printing inks and paints industry. Carbon
Black constitutes 28% of tyre by weight. Tyre production in India grew year on
year by 5% during 2011-12. Carbon Black imports increased by more than 50%
during the year; affecting the off-take and capacity utilisation ofthe domestic
carbon black manufacturers. Domestic players have approached the Government of
India for the levy of appropriate duties on cheaper imports from China. Hi-Tech
Carbon, the carbon black business of ABNL and Phillips Carbon Black Limited.
are the leading carbon black manufacturers in India accounting for 39% and 46%
of domestic production during 2011-12.
Performance Review
Domestic sales
volume of Hi-Tech Carbon dropped by 3%, mainly due to dumping from China.
Exports volume grew by 4%. Share of exports in total sales volume increased to
20%.
Revenue increased by
22% to Rs.19430.000 Millions on account of higher realisation. Carbon Black
realisation increased by 25% to Rs. 68,276 per ton to partly pass on rise in
raw material (CBFS) costs which tend to move in line with crude oil prices.
Energy sales grew from Rs.800.000 Millions to Rs.940.000 Millions with the
commencement of power sales from two plants.
EBITDA de-grew
from Rs.2570.000 Millions to Rs.2050.000 Millions. Higher CBFS prices and lower
capacity utilization due to drop in sales volumes strained profitability.
Capital employed increased primarily on account of higher CBFS prices which
inflated the inventories and receivables. Capital Employed is also higher to
the extent of mark-to-market provision of Rs.880.000 Millions w.r.t. fully
hedged foreign currency working capital
borrowings. Due to lower profitability and higher capital employed, ROACE
de-grew to 13%.
Outlook
The capacity
utilisation and profitability of the domestic manufacturers may improve,
provided appropriate duty is levied and the level playing field is restored.
Long term growth outlook remains positive. The domestic tyre production is
expected to get a boost from the OEM and replacement demand coupled with
increase in exports. Tyre exports from India grew by 24% during 2011-12. This
will be a prime growth driver for the Indian carbon black industry.
Being a leading
and cost effective player, Hi-Tech carbon will be a key driver for as well as
beneficiary of the sector growth prospects.
Textiles (Jaya
Shree Textiles)
Industry Overview
The business
environment in the domestic textiles industry was buoyant during the first half
of the financial year but slowing economic growth across the globe and weak
consumer sentiments impacted demand in the second half. Rise in coal prices
ignited by its shortage and depreciation of Indian rupee inflated costs of
production. Prices of Flax Fibre remained on upward trajectory although prices
of other competing fibres like Cotton tapered off. Wool prices remained
volatile.
Performance Review
Jaya Shree
Textiles ("JST") is the largest manufacturer of linen yarn and linen
fabric in India with spinning and weaving capacities at 15,640 spindles and 106
looms respectively. It is a leading manufacturer of wool tops and worsted yarn
in India with a capacity of 7 carding machines and 25,984 spindles
respectively.
JST has led the
successful journey of linen from a commodity product to a lifestyle symbol. JST
retails linen fabric under the well-known brand "Linen Club Fabrics".
JST achieved its highest ever earnings, driven by improved realisation across
the segments and volume growth in the linen segment.
Realisation
increased across the segments mainlyto pass on rise in input costs. Linen yarn
and Linen fabric segments registered 14% and 7% growth in sales volume,
respectively. Wool segment witnessed lower exports volume.
Its revenue at
Rs.10460.000 Millions posted 35% growth, year on year. EBITDA soared by 42%
from Rs.990.000 Millions to Rs.1410.000 Millions. ROACE enlarged to 82% driven
by improved earnings and efficient working capital management. In fact, JST has doubled its earnings in past two years while managing
capital employed at one-third level.
Its efforts for increasing
awareness for linen in the domestic market and creating a wide distribution
channel of whole-sellers, multi brand outlets and EBOs are yielding results.
With a continued
focus on high margin Linen Fabric OTC segment, JST added 17 more EBOs during
the year taking the total count to 57. Share of this segment in total linen
fabric sales volume grew year on year from 41% to 51%.
Outlook
Rising per capita
income levels and gaining popularity of linen as a style and comfort fabric,
paints a bright long term outlook for the linen segment. JST is evaluating
capacity expansion in the linen yarn and fabric segments to capitalise on the
rising demand. It will also continue to focus onhigh margin linen fabric OTC
segment.
Rayon (Indian
Rayon)
Industry Overview
Indian Rayon
manufactures and sells viscose filament yarn ("VFY"), caustic soda
and allied chemicals. Domestic consumption of VFY grew by 1% to 56,727 MT in
2011-12. Domestic VFY production increased by 4% to 42,356 MT while imports
increased by 10% to 22,403 MT. VFY exports grew by 12% to 6,118 MT. Century
Textiles & Industries Limited and Indian Rayon are leading domestic VFY
manufacturers having production share of 44% and 39% respectively.
Caustic Soda is a
versatile alkali. It is mainly used in the manufacturing process of pulp and
paper, alumina, textiles, soaps and detergents, petroleum products, chemicals
etc. Caustic soda prices increased during the year led by demand supply
mismatch.
Performance Review
During 2011-12,
wood pulp prices came down from the peak level of USD 3000 per ton to USD 1200
per ton. Led by drop in raw material costs, cheaper imports from China
increased. This has affected sales volume of the domestic players. Through a
notification issued in May 2012, anti dumping duty on Chinese imports has been
extended by the
Government.
Indian Rayon
registered growth in VFY sales volume and maintained inventories at optimum
level driven by higher exports, strategic marketing and better product mix.
Indian Rayon became the largest Indian exporter of VFY for seventh year in a
row - contributing to more than 50% of VFY exports from India.
Revenue of Indian
Rayon from the VFY segment grew by 21% to Rs.4670.000 Millions. VFY realization
increased by 17% while VFY sales volumes grew by 4%. VFY prices were increased
during the first half of the calendar year 2011 to pass on higher wood pulp
prices. Improved product mix also contributed. Revenue from the Chemicals
segment grew by 18% to Rs.2130.000 Millions. Caustic soda sales volumes de-grew
by 7% while ECU realisation grew by 24%. Total revenue of Indian Rayon grew by
20% to Rs.6800.000 Millions.
EBITDA grew by 16%
from Rs.1100.000 Millions to Rs.1280.000 Millions. Higher realisation in both
the VFY and Chemicals segments coupled with growth in VFY sales volume
contributed. Indian Rayon is operating at an ROACE of 19%.
Indian Rayon has
commenced expansion of its VFY capacity using Spool Technology from ENKA,
Germany. Out of total planned capex of Rs.2700.000 Millions, a sum of Rs.760.000
Millions has been spent till March 2012. It is targeted to complete by the end
of fiscal year 2012-13. The new technology will help Indian Rayon to cater to
high margin premium segment.
Indian Rayon is also
expanding its caustic soda capacity by 45,625 MTPA at a capex of Rs.1550.000
Millions. It is expected to complete in 2013-14, taking the total capacity to
136,875 MTPA.
Outlook
The rising labour
and power costs in China, strong Yuan and extension of anti-dumping duty will
lead to rise in landed costs of Chinese imports, which will be favourable for
the domestic VFY manufacturers. Caustic soda demand is expected to improve
going forward with the expansion plans of customers. With the planned VFY and caustic
soda capacity expansions, Indian Rayon is well positioned to tap the growth
opportunity in these sectors and augment its earnings.
Insulators (Aditya
Birla Insulators)
Industry Overview
Growth in the
power sector is the key driver for the insulators industry. Investments in the
power sector have slowed down in India due to liquidity crunch, coal linkage
etc., impacting the Indian insulators industry.
Apart from this,
dumping from China has also affected the domestic manufacturers by shrinking their
market and putting pressure on price levels. Exports markets have also
witnessed sluggish demand.
Domestic sales
volume of the Indian insulators industry have de-grown year on year by 19%
during April 2011- February 2012 (Source : IEEMA). Domestic manufacturers have
approached the Government of India for the levy of safeguard / antidumping duty
on cheaper imports from China.
Performance Review
Aditya Birla
Insulators, the India's largest and world's fourth largest manufacturer of
insulators, contained de-growth in its sales volume to 12% and maintained its
domestic market leadership. It has increased its geographical reach by
identifying new set of customers in the exports market.
Its revenue is
lower year on year by 10% at Rs.4680.000 Millions. Sales volume and realization
remained under pressure due to deferment of deliveries by customers and
increase in cheaper imports from China.
EBITDA de-grew
from Rs.1340.000 Millions to Rs.670.000 Millions. Lower capacity utilisation
coupled with rise in the production costs strained profitability. ROACE dropped
to 12% owing to decline in earnings.
Outlook
In the near
future, investments in the power sector are likely to remain affected owing to
liquidity crunch and coal shortages. However, the capacity utilisation and the
profitability of domestic manufacturers may improve to certain
extent, provided
the duty is levied on cheaper imports.
Aditya Birla
Insulators will continue to focus on yield improvement and cost rationalization
to enhance its cost competitiveness besides exploring new geographies in the
exports market.
CONTINGENT LIABILITIES NOT PROVIDED FOR:
a) Claims against
the Company not acknowledged as debts
(Rs.In Millions)
|
Nature of Statute |
Brief Description of Contingent Liabilities |
Forum where dispute is pending |
31.03.2012 |
|
Customs Duty, Customs Act, 1942 |
Departmental
appeal against CESTAT order for deleting demand of payment of duty for non fulfillment
of provision of EXIM policy related to Advance Licence |
High Court - Karnataka |
20.400 |
|
Excise Duty, Central Excise Act, 1944 |
Department
issued show cause cum demand notice for simultaneous availment of C.E. Not.
29/04 and 30/04 date 09.07.2004 for the period 2004-05 to 2006-07 |
Commissioner, LTU, Mumbai |
108.800 |
|
|
Demand for
payment of duty for removal of Refinished Imported Garments without paying
Duty |
CESTAT-Bangalore |
20.300 |
|
|
Demand of duty against
availment of benefit of exemption under Notification 38/2003-CE in respect of
ready made garments procured from job workers |
Hon’ble Supreme Court |
82.500 |
|
|
Demand for
reversal on cenvat on CBFS and other inputs allegedly to be used for manufacturing
of electricity sold outside for the period 2006 to September 2011 |
Dy. Commissioner LTU Mumbai |
320.400 |
|
|
Demand of difference in duty on processing of yarn from Cake to Cone |
Dy.
Commissioner/ Commissioner-LTU, Mumbai |
40.900 |
|
|
Demand for reversal of cenvat on CBFS alleged to be used for
generation of Steam |
High Court, Allahabad |
32.700 |
|
|
Demand for reversal of cenvat of Service Tax on business auxiliary
services |
Commissioner |
10.500 |
|
Sales Tax |
Demand against C and F forms and also against Input Tax Credit (ITC)
on purchases by Power Plant, reversal of ITC, for AY 2006-07 |
Joint Commissioner of Sales Tax (Appeals), Rajkot |
106.800 |
|
|
Demand against
issue of Form C against supply of Natural Gas during F.Y. 2009-10, FY 2010-11
and FY 2011-12 |
High Court, Lucknow |
746.900 |
|
|
Demand of Entry
Tax |
Supreme Court |
0.000 |
|
|
Sales Tax demand on export to Nepal |
High Court, Allahabad |
14.300 |
|
|
Demand against Form H, I and C, ITC Short adjusted on Stores Spares |
W.B. Commercial Tax, Revisional Board |
49.400 |
|
Service Tax, Finance Act, 1994 |
Demand of Service Tax on Commission paid to overseas agents during the
period from 01.10.2002 to 31.03.2006 |
CESTAT, Kolkata |
0.000 |
|
|
Demand for reversal of cenvat of Service Tax taken on Goods transport
Agency service on outward transportation |
Commissioner-LTU, Mumbai |
40.400 |
|
Others |
Demand of textile cess on removal of Ready made garments |
High Court, Karnataka |
21.400 |
|
|
Payment of Wages of Strike Period |
Industrial Tribunal, Rajkot |
31.200 |
|
|
Labour Reinstatement and Workmen Compensation cases |
Labour Court |
57.700 |
|
|
Claim by PEDEEE Syria for late supply under different contracts |
Syrian Arab republic Council of State, Administrational Judicature
Court, Syria |
12.000 |
|
|
HPCL arbitration for supply of low sulphur heavy stocks and other
liquid fuels |
CIT (Appeals) |
10.400 |
|
|
Railways demanded Land Licence Fees, in 2008, for the land used for
constructing and connecting siding with Railway at Sindurwa since 1988 |
DRM, Northern Railways, LKO |
35.000 |
|
|
Demand letter issued
by UPSIDC for making payment of maintenance charges on land allotted in 1983 |
High Court, Lucknow |
111.700 |
|
|
Demand of water drawal charges by irrigation department |
High Court, Gujarat |
505.900 |
|
|
Recovery of payment
for material not supplied/ Contract cancelled |
|
59.200 |
|
Income Tax Act, 1961 |
Various Department Appeal in ITAT, High Court on various matter |
ITAT, High Court |
522.200 |
|
|
Demand for various additions in tax assessment of AY 2008-09 and 2009-10 |
CIT (Appeals) |
15.900 |
|
|
Penalty on disallowance of provision of leave salary |
CIT (Appeals) |
0.000 |
|
|
Various others cases |
|
213.600 |
|
|
|
|
|
|
|
Grand Total |
|
3190.500 |
b) Bills Discounted with Banks: Rs.1240.200 Millions
c) Corporate Guarantees given to Banks for loans taken by subsidiaries:
Rs.9308.200 Millions
d) Corporate Guarantees given in connection with performance obligation
of the subsidiaries: Rs.997.600 Millions
e) Under the Jute
Packaging Material (Compulsory use of Packing Commodities) Act, 1987, a
specified percentage of fertilisers dispatched was required to be supplied in
jute bags up to 31st August, 2001. The Company made conscious efforts to use
jute packaging material as required under the said Act. However, due to
non-availability of material as per the Company’s product specifications as
well as due to strong customer resistance to use of jute bags, the specific
percentage could not be adhered to. The Company has received a show cause
notice, against which a writ petition has been filed with the Hon’ble High
Court, which is awaiting for hearing. The Jute Commissioner, Kolkata had filed
transfer petition, various writ petitions have been filed in different High
Courts by other aggrieved parties, including the Company, before the Hon’ble
Supreme Court of India, praying for consolidation of all cases at one Court.
The transfer petition is pending before the Hon’ble Supreme Court. The Company
has been advised that the said levy is bad in law.
FIXED ASSETS
Tangible Assets
·
Land
o
Freehold
o
Leasehold
·
Railway Siding
·
Buildings
o
Freehold
o
Leasehold
·
Leasehold Improvements
·
Plant and Machinery
·
Furniture, Fixtures and Equipment
·
Vehicles and Aircraft
·
Livestock
Intangible Assets
·
Goodwill
·
Trademark / Brands / Technical Know-how
·
Specialised Software
STATE OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30TH JUNE 2012
(Rs. In Millions)
|
Particulars |
QUARTER ENDED
30.06.2012 |
|
|
Unaudited |
|
Net Sales /
Income from Operations |
19947.600 |
|
Other Operating Income |
423.800 |
|
Total Income
from Operations (Net) |
20371.400 |
|
Expenditure: |
|
|
Cost of Material Consumed |
10435.100 |
|
Purchase of Stock-In-Trade |
1753.900 |
|
Change in Inventories of Finished Goods,
Work – In – Progress and Stock – In – Trade
|
(295.500) |
|
Employee Benefits Expanses |
1433.500 |
|
Depreciation and Amortisation Expense |
500.500 |
|
Other Expenditure |
5111.400 |
|
Total Expenses |
18938.900 |
|
Profit from
Operations before Other Income, Finance Costs and Exceptional Items |
1432.500 |
|
Other Income |
208.100 |
|
Profit before Finance Costs and Exceptional Items |
1640.600 |
|
Finance Costs |
865.300 |
|
Profit after Finance Costs but before Exceptional Items |
775.300 |
|
Exceptional Items |
-- |
|
Earning before Tax |
775.300 |
|
Tax expenses |
197.100 |
|
Net Profit for the Period |
578.200 |
|
Paid Up Equity Share Capital (Face Value of Rs.10 each) |
1135.200 |
|
Earning per Share of Rs. 10 each |
|
|
(a) Basic – Rs. |
5.09 |
|
(b) Diluted – Rs. |
5.09 |
|
PARTICULARS OF SHAREHOLDING |
|
|
Public Shareholding * |
|
|
- Number of Shares |
52378984 |
|
- Percentage of Shareholding |
46.14% |
|
Promoter and Promoter Group Shareholding * |
|
|
(a) Pledged/ Encumbered |
|
|
- Number of Shares |
Nil |
|
- Percentage of
shares (as a % of the total Shareholding of promoter and promoter group) |
-- |
|
- Percentage of shares
(as a % of the total Share Capital of the Company) |
-- |
|
(b) Non –
encumbered |
|
|
- Number of
Shares |
57944697 |
|
- 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) |
51.05% |
* Excludes shares represented by Global Depository Receipts
|
INVESTOR COMPLAINTS |
3 months ended
31st March 2012 |
|
Pending at the beginning
of the quarter |
0 |
|
Received during
the quarter |
8 |
|
Disposed of
during the quarter |
8 |
|
Remaining
unresolved at the end of the quarter |
0 |
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER ENDED 30TH
JUNE 2012
(Rs. in millions)
|
Sl. No. |
|
Particulars |
QUARTER ENDED |
|
|
30.06.2012 |
||
|
|
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
Fashion & Lifestyle (Branded Apparels and Accessories) |
5351.600 |
|
|
|
Agri - business (Fertilisers, Agro-Chemicals and Seeds) |
3448.300 |
|
|
|
Carbon Black |
5575.000 |
|
|
|
Insulators |
1104.100 |
|
|
|
Rayon Yarn (including Caustic Soda and Allied Chemicals) |
1860.100 |
|
|
|
Textiles (Linen Yarn and Fabric, Worsted Yarn and Wool Tops) |
3041.800 |
|
|
|
|
|
|
|
|
Total Segmental Revenue |
20380.900 |
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue |
(9.500) |
|
|
|
|
|
|
|
|
Total Income from Operations (Net) |
20371.400 |
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
Fashion & Lifestyle (Branded Apparels and Accessories) |
15.100 |
|
|
|
Agri - business (Fertilisers, Agro-Chemicals and Seeds) |
242.800 |
|
|
|
Carbon Black |
419.500 |
|
|
|
Insulators |
99.300 |
|
|
|
Rayon Yarn (including Caustic Soda and Allied Chemicals) |
392.000 |
|
|
|
Textiles (Linen Yarn and Fabric, Worsted Yarn and Wool Tops) |
397.100 |
|
|
|
|
|
|
|
|
Total Segment Result |
1565.800 |
|
|
|
|
|
|
|
|
Less: Finance Costs |
(865.300) |
|
|
|
Add: Interest Income |
118.900 |
|
|
|
Less: Other Un-allocable (Expenditure) / Income - net |
(44.100) |
|
|
|
|
|
|
|
|
Profit after Finance Costs but before Exceptional Items |
775.300 |
|
|
|
Exceptional Items (refer note no 4) |
-- |
|
|
|
Profit before Tax |
775.300 |
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
Fashion & Lifestyle (Branded Apparels and Accessories) |
5638.000 |
|
|
|
Agri - business (Fertilisers, Agro-Chemicals and Seeds) |
10956.700 |
|
|
|
Carbon Black |
15568.900 |
|
|
|
Insulators |
3756.600 |
|
|
|
Rayon Yarn (including Caustic Soda and Allied Chemicals) |
5352.500 |
|
|
|
Textiles (Linen Yarn and Fabric, Worsted Yarn and Wool Tops) |
829.800 |
|
|
|
|
|
|
|
|
Total Segment Capital Employed |
42102.500 |
|
|
|
Add: Unallocated Corporate Assets |
65371.700 |
|
|
|
Total Capital Employed |
107474.200 |
NOTES
2.
The Company has allotted 10,100 fully paid up equity
shares of Rs. 10/- each on 2nd July, 2012 upon exercise of stock options
granted under the Employee Stock Option Scheme, 2006.
3.
Effective from 1st April, 2012, the Company has
applied hedge accounting principles in respect of forward exchange contracts
taken to hedge the foreign currency risk of firm commitments or highly probable
forecast transactions as set out in Accounting Standard (AS) 30 – Financial
Instruments: Recognition and Measurement. Accordingly all such contracts that
are designated as hedging instruments to hedge the foreign currency risk of
firm commitments and highly probable forecast transactions are marked to market
and loss (net) aggregating to Rs. 30.100 Millions (net of tax) arising on such
contracts, has been directly recognized in the Hedging Reserve Account. Had the
Company continued to follow the earlier accounting policy, this loss (net)
would have been recognized in the Statement of Profit and Loss.
4.
The Board of Directors of the Company at its meeting
held on 30th April, 2012 has, in principle approved, subject to necessary
approvals, the proposed acquisition of a controlling stake in Future Group’s
‘Pantaloons Format Business’ post its demerger from Pantaloon Retail (India)
Limited (PRIL) either directly or through its subsidiary company. PRIL has
issued debentures to Peter England Fashion and Retail Limited, a subsidiary of
the Company, worth Rs. 8000.000 Millions. Convertible in the equity shares of
the resulting entity on mutually agreed terms. The transaction is likely to be
completed in the next 5-7 months time, subject to the finalization of the
Scheme of Arrangement, due diligence, statutory and other requisite approvals.
5.
The Company on receipt of necessary approval(s) and
in accordance with the provisions of SEBI (Issue of Capital and Disclosure
Requirements) Regulations, 2009 issued 16.500 Millions warrants to Promoter and
/ or Promoter Group, entitling the holder thereof to get one equity share of
Rs.10/- each of the Company against each warrant within a period of 18 months
from the date of allotment. Further, on receipt of 25% of the price fixed per
warrant on 10th May, 2012, the Company has issued and allotted 16.500 Millions
Warrants to the Promoter Group Companies on a preferential basis.
6.
In the previous year Exceptional Items represents
provision made for entry tax till 31st March 2012.
7.
The figures for the quarter ended 31st March, 2012
for the previous year are the balancing figures between the audited figures in
respect of the full financial year ended 31st March, 2012 and the unaudited
published year to date figures up to 31st December, 2011 which were subjected
to limited review.
8.
The financial statements have been presented as per
the Revised Schedule VI of the Companies Act, 1956 which had a impact on
presentation and accordingly previous year / quarter figures have been
regrouped or rearranged wherever necessary.
9.
The above results have been reviewed by the Audit
Committee of the Board and taken on record at the meeting of the Board of
Directors held on 6th August, 2012. The Statutory Auditors of the Company have
carried out Limited Review as required under Clause 41 of Listing Agreement and
the related report is being submitted to the concerned stock exchanges.
NEWS
PRESS RELEASES
LOUIS PHILIPPE UNVEILS NEW STORE IN DELHI
14 September 2012
New Delhi: Louis Philippe, the identity of the stylish and contemporary Indian
gentleman, launches its newest flagship store in South Ex, New Delhi. Legendary
cricketer Kapil Dev and Jacob John, Brand Head, Louis Philippe, launched the
new store, which houses a great selection of apparel made from the finest
fabrics from across the world. The store is spread across 3,500 sq ft and is
the brand’s biggest store in New Delhi.
Apart from offering customers a wide range of shirts, suits, trousers,
t-shirts, denims and accessories for every occasion, the store also offers Made
To Measure service, a facility that will allow customers to create personalised
ensembles, thus pampering him for choice.
First established in the mid-1960s in the United Kingdom and since
launched in India in 1989, Louis Philippe has consistently brought forth the
finest range of high-quality apparel for men and is a name thus synonymous with
luxury and sophistication.
Talking about the brand’s latest developments, Mr. John said, “Delhi’s
largest Louis Philippe store marks another high point in the long list of our
retail success stories this year. The South Ex store is an indication of our
commitment to the fashionable and sophisticated city of Delhi. Louis Philippe
will continue to excite its target audience with innovative and exciting
offerings.”
Added Mr Dev, the cricket legend, “My association with Louis Philippe goes
way back. As an avid golfer and fashion enthusiast I know I can always get the
most exclusive collection for every occasion right here. It’s always
sophisticated, stylish, and relaxed - just like Delhi and me!”
About Louis Philippe
Louis Philippe is the leader in the stylish menswear offering. The
brand’s Franco Italian lineage combined with its focus on contemporary
international fashion lends it a premium and exclusive image. The focus on fine
fabrics and the detailed craftsmanship of every piece ensures that each Louis
Philippe owner belongs to “The Upper Crest”. The brand symbolises elegance,
class and status, while addressing the needs of the style conscious power
seeker.
From the very beginning, Louis Philippe has combined the finest fabrics
with designs inspired by the latest international trends. Embellished with the
embroidered “Crest”, Louis Philippe wardrobe announces to the world that the
wearer has truly “arrived”.
Almost two decades later in India, the “Crest” is prized even more for its
craftsmanship and attention to detail as Louis Philippe continues to celebrate
the sophistication and class of the quintessential Indian gentleman.
Louis Philippe is available at more than 130 flagship stores across India. They
provide consumers with an international shopping experience, true to the brand
essence ‘Mark of Grandeur’. Apart from the chain of Planet Fashion stores, it
is also available at all leading menswear and department stores across the
country.
LP Luxure is a super-premium collection from the House of Louis Philippe,
crafted with the finest, rare and exclusive fabrics, meticulous tailoring and
impeccable detailing. Inspired by the pursuit of art and travel, every Luxure
piece combines a respect for tradition with a love of contemporary style.
Alongside delectable suits and shirts, the collection includes exquisitely
constructed shoes, precious cufflinks, silk ties and other style accessories.
For its more discerning clients, made to measure tailoring is also offered in
select stores across the country
LP Louis Philippe is an identity and a style statement rolled into one - a
creation of, for and by a superior level of passion for the new-age power
seekers, who finally get what they have always deserved. The all-occasion LP
wardrobe combines style, attitude and panache and has an exciting range of
shirts, t-shirts, casual and formal trousers, suits, jackets and accessories.
Every LP Louis Philippe is a trove of hidden treasures with subtle nuances that
will delight the wearer and allow him to discover something new every day and
is available in all leading stores across the country.
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. 51.97 |
|
|
1 |
Rs. 83.67 |
|
Euro |
1 |
Rs. 67.19 |
INFORMATION DETAILS
|
Report Prepared by
: |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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.