MIRA
INFORM REPORT
|
Report Date : |
26.10.2012 |
IDENTIFICATION DETAILS
|
Name : |
V.I.P. INDUSTRIES LIMITED |
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Registered
Office : |
78-A, M.I.D.C. Estate, Satpur, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
27.01.1968 |
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Com. Reg. No.: |
11-013914 |
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Capital
Investment / Paid-up Capital : |
Rs. 282.635 millions |
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|
|
CIN No.: [Company Identification
No.] |
L25200MH1968PLC013914 |
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|
|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturers of plastic moulded suitcase, plastic moulded
briefcase and vanity case. |
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No. of Employees
: |
1703 (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 10099200 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company is good. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitment. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A + (Long Term Loan) |
|
Rating Explanation |
Adequate degree of safety. It carry low credit risk. |
|
Date |
11th February 2011 |
|
Rating Agency Name |
CRISIL |
|
Rating |
P1 (Short Term Loan) |
|
Rating Explanation |
Very strong degree of safety. It carry lowest credit risk. |
|
Date |
11th February 2011 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
78-A, M.I.D.C. Estate, Satpur, |
|
Tel. No.: |
91-253-6603000/ 2350876 |
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Fax No.: |
91-253-4306022/ 2350756 |
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E-Mail : |
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Website : |
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Corporate Office : |
DGP House, 88C, |
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Tel. No.: |
91-22-66539000 |
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Fax No.: |
91-22-66608393 |
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E-Mail : |
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Factory 2 : |
A-7, MIDC, Sinnar - 422 103, |
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Factory 3 : |
Plot No 8, Sector 12, SIDCUL Area, Haridwar - 249 403, |
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Factory 4 : |
L-4, MIDC, Hingna, |
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Factory 5 : |
E-5/2 Additional MIDC Area, Jalgaon - 425 016, |
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Factory 6 : |
D/4 Paithan Industrial Area, MIDC, Paithan - 431 107, |
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Branch Office : |
Located at: North Zone
South Zone
East Zone
West Zone
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DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Dilip G. Piramal |
|
Designation : |
Chairman |
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|
|
|
Name : |
Ms. Radhika Piramal |
|
Designation : |
Managing Director |
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Date of Birth : |
27.05.1978 |
|
Qualification : |
BA (Hons), Brasenose College, University of Oxford, MBA, Harvard Business School |
|
Experience : |
Corporate Management |
|
Date of
Appointment : |
30.06.2009 |
|
Chairman /
Director of other Companies : |
· BP Ergo Limited · DGP Securities Limited · DGP Capital Management Limited · Blow Plast Retail Limited |
|
|
|
|
Name : |
Ashish K. Saha |
|
Designation : |
Director – Works w.e.f. 1.2.2012 |
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Date of Birth : |
25.11.1958 |
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Qualification : |
PD in Die & Mould Technology, Diploma in Instrument Technology |
|
Experience : |
Tooling, design & manufacturing of luggage |
|
Date of
Appointment : |
01.02.2012 |
|
|
|
|
Name : |
D. K. Poddar |
|
Designation : |
Director |
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Date of Birth : |
09.11.1943 |
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Qualification : |
BSc (Hons), SB&SM (MIT), USA |
|
Experience : |
Industrialist with rich business experience |
|
Date of Appointment
: |
23.09.1987 |
|
Chairman /
Director of other Companies : |
· Bajaj Finance Limited · Suvijay Exports Limited · Bachraj Factories Limited · Bajaj Allianz General Insurance Co. Limited · Poddar Natural Resources & Ores Limited · Brite Merchants Limited · Poddar Developers Limited · Poddar Infrastructure Private Limited · Poddar Habitat Private Limited · Poddar Leisure Infrastructure Private Limited · Poddar Housing Private Limited |
|
|
|
|
Name : |
Vijay Kalantri |
|
Designation : |
Director |
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|
|
|
Name : |
Vivek Nair |
|
Designation : |
Director |
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|
|
|
Name : |
G. L. Mirchandani |
|
Designation : |
Director |
|
Date of Birth : |
12.06.1943 |
|
Qualification : |
B.E. (Mech.) |
|
Experience : |
Industrialist with rich business experience |
|
Date of Appointment
: |
01.02.2007 |
|
Chairman /
Director of other Companies : |
· BP Ergo Limited · MIRC Electronics Limited · Adino Research Foundation · Gulita Securities Limited · KEC International Limited · Shoppers Stop Limited · Fractal Analytics Limited · Algorhythm Tech Private Limited · Adino Telecom Limited · Mumbai Angel Venture Mentors |
|
|
|
|
Name : |
Nirmal Gangwal |
|
Designation : |
Director |
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|
|
|
Name : |
Nabankur Gupta |
|
Designation : |
Director |
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|
|
|
Name : |
T. Premanand |
|
Designation : |
(Director – Works upto 31.1.2012 |
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KEY EXECUTIVES
|
Name : |
Jogendra Sethi |
|
Designation : |
Chief Financial Officer |
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|
|
Name : |
Mr. Shreyas Trivedi |
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Designation : |
Company Secretary and Head-Legal |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
403270 |
0.29 |
|
|
73213905 |
51.81 |
|
|
73617175 |
52.09 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
73617175 |
52.09 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
286257 |
0.20 |
|
|
82864 |
0.06 |
|
|
500 |
0.00 |
|
|
11229444 |
7.95 |
|
|
11599065 |
8.21 |
|
|
|
|
|
|
6054362 |
4.28 |
|
|
|
|
|
|
26222347 |
18.56 |
|
|
20677610 |
14.63 |
|
|
3146756 |
2.23 |
|
|
921003 |
0.65 |
|
|
57966 |
0.04 |
|
|
108976 |
0.08 |
|
|
2023811 |
1.43 |
|
|
35000 |
0.02 |
|
|
56101075 |
39.70 |
|
Total Public shareholding (B) |
67700140 |
47.91 |
|
Total (A)+(B) |
141317315 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
141317315 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of plastic moulded suitcase, plastic moulded briefcase and vanity case. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
1703 (Approximately) |
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Bankers : |
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Facilities : |
NOTE: Secured by
hypothecation of Inventories & assignment of Book Debts ranking pari
passu inter-se and by second charge on the fixed assets of the Company
located at Nashik and Sinnar. |
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|
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Banking
Relations : |
-- |
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Auditors : |
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Statutory Auditors: |
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|
Name : |
M. L. Bhuwania and Company Chartered Accountants |
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Internal Auditors: |
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|
Name : |
Ernst and Young Private Limited Chartered Accountants |
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|
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|
Name : |
RSM Astute Consulting Private Limited Chartered Accountants |
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Joint Venture : |
V.I.P. Nitol Industries Limited |
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Wholly owned Subsidiary : |
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CAPITAL STRUCTURE
As on 31.03.2012
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
246500000 |
Equity Shares |
Rs. 2/- each |
Rs. 493.000 millions |
|
1000 |
9% - Redeemable Shares |
Rs. 1000/- each |
Rs. 1.000 million |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 494.000
millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
141317315 |
Equity Shares |
Rs. 2/- each |
Rs. 282.600
millions |
|
|
|
|
|
NOTES:
The reconciliation
of the number of Equity shares outstanding at the beginning and at the end of reporting
period 31st March, 2012:
As on 31.03.2012
Number of Equity shares at the beginning 2,82,63,463
Number of Equity shares at the end * 14,13,17,315
* During the year,
equity shares of the company were sub divided from par value of Rs. 10 to 5
(five) equity shares of Rs. 2 each resulting in total number of Equity shares increased
to 14,13,17,315 equity shares of Rs. 2 each.
TERMS/RIGHTS
ATTACHED TO EQUITY SHARES:
a)
The Company has only one class of Issued subscribed
and fully paid up shares referred to as equity shares having a par value of Rs.
2 each. Each holder of equity share is entitled to one vote per share. The
dividend proposed by the Board of Directors is subject to the approval of the
shareholders in the ensuing Annual General Meeting.
b)
The amount of per share dividend of Rs. 1.60 (Previous Year Rs. 2) has
been proposed to be distributed to equity shareholders for the year ended 31st
March, 2012 including Interim Dividend paid during the year. The total amount
of dividend shall be Rs. 226.100
millions and Dividend Distribution Tax Rs. 36.700 millions.
c)
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 of all preferential amounts. The distribution will
be in proportion to the number of equity shares held by the shareholders.
Aggregate number
of shares allotted under the scheme of amalgamation during the period of five
years immediately preceding the reporting date:
Pursuant to the
Order dated 14th December, 2007 passed by the Hon’ble High Court of Judicature
at Bombay sanctioning the scheme of Amalgamation of Aristocrat Luggage Limited
and Quality Plastics Limited with V.I.P. Industries Limited (the Company),
28,01,650 Equity Shares of Rs. 10 each, (1,40,08,250 Equity Shares at par value
of Rs. 2, post subdivision) of the Company were issued to the shareholders of
erstwhile Aristocrat Luggage Ltd and erstwhile Quality Plastics Limited
The details of
shareholders holding more than 5% shares:
|
Name of the
Shareholders |
No. of shares held |
% held as at 31st March, 2012 |
|
DGP Securities
Limited |
3,61,56,765 |
25.59% |
|
Vibhuti
Investments Company Limited |
2,17,83,300 |
15.41% |
|
Jhunjhunwala
Rakesh Radheshyam |
90,87,500 |
6.43% |
|
Sudhir Mohanlal
Jatia |
6,00,000 |
4.25% |
|
|
|
|
The No. of Shares
held as at 31st March, 2012 are of the face value of Rs. 2 each (31st March,
2011 of Rs. 10 each).
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 |
282.600 |
282.600 |
282.635 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2143.200 |
1729.500 |
1438.980 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2425.800 |
2012.100 |
1721.615 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
280.100 |
806.200 |
723.143 |
|
|
2] Unsecured Loans |
561.400 |
222.000 |
150.000 |
|
|
TOTAL BORROWING |
841.500 |
1028.200 |
873.143 |
|
|
DEFERRED TAX LIABILITIES |
18.300 |
0.000 |
6.121 |
|
|
|
|
|
|
|
|
TOTAL |
3285.600 |
3040.300 |
2600.879 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
828.800 |
801.800 |
808.312 |
|
|
Capital work-in-progress |
7.600 |
49.900 |
4.231 |
|
|
|
|
|
|
|
|
INVESTMENT |
3.600 |
3.600 |
20.125 |
|
|
DEFERRED TAX ASSETS |
0.000 |
70.400 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1441.200
|
1189.700 |
801.197 |
|
|
Sundry Debtors |
1247.400
|
1393.400 |
913.948 |
|
|
Cash & Bank Balances |
182.300
|
88.200 |
167.245 |
|
|
Other Current Assets |
378.200
|
87.200 |
91.442 |
|
|
Loans & Advances |
234.300
|
501.700 |
567.524 |
|
Total
Current Assets |
3483.400
|
3260.200 |
2541.356 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
584.700
|
531.300 |
336.164 |
|
|
Other Current Liabilities |
261.700
|
271.800 |
300.528 |
|
|
Provisions |
191.400
|
342.500 |
136.453 |
|
Total
Current Liabilities |
1037.800
|
1145.600 |
773.145 |
|
|
Net Current Assets |
2445.600
|
2114.600 |
1768.211 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3285.600 |
3040.300 |
2600.879 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8602.200 |
7420.000 |
6093.210 |
|
|
|
Other Income |
14.600 |
20.000 |
21.995 |
|
|
|
TOTAL (A) |
8616.800 |
7440.000 |
6115.205 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1674.000 |
1641.200 |
2640.690 |
|
|
|
Purchases of Stock - in - Trade |
2740.600 |
2135.600 |
0.000 |
|
|
|
Changes in Inventories
of Finished Goods, Work - in Progress and Stock - in - Trade |
(274.700) |
(354.000) |
0.000 |
|
|
|
Employee Benefits
Expense |
816.400 |
723.800 |
632.424 |
|
|
|
Other Expenses |
2458.600 |
2048.400 |
1885.294 |
|
|
|
TOTAL (B) |
7414.900 |
6195.000 |
5158.408 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1201.900 |
1245.000 |
956.797 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
69.400 |
44.500 |
79.641 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1132.500 |
1200.500 |
877.156 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
172.900 |
148.200 |
172.790 |
|
|
|
|
|
|
|
|
|
Less |
EXCEPTIONAL
ITEMS |
0.000 |
287.100 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
EXTRAORDINARY
ITEMS |
0.000 |
0.000 |
93.876 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
959.600 |
765.200 |
610.490 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
282.700 |
145.000 |
109.955 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
676.900 |
620.200 |
500.535 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
300.887 |
300.287 |
325.059 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
414.100 |
291.000 |
299.200 |
|
|
|
Interim and Proposed Dividend |
226.100 |
282.600 |
141.317 |
|
|
|
Tax on Dividend |
36.700 |
46.600 |
84.790 |
|
|
BALANCE CARRIED
TO THE B/S |
300.587 |
300.887 |
300.287 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of Finished Goods, Components and Other Items (on F.O.B.
basis) |
828.700 |
730.700 |
470.193 |
|
|
|
Interest |
0.000 |
6.200 |
12.856 |
|
|
|
Freight |
15.800 |
18.900 |
0.072 |
|
|
|
Insurance |
0.000 |
0.000 |
15.722 |
|
|
TOTAL EARNINGS |
844.500 |
755.800 |
498.843 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
108.700 |
156.400 |
169.601 |
|
|
|
Stores & Spares |
1.400 |
44.800 |
9.733 |
|
|
|
Capital Goods |
1.100 |
0.800 |
8.302 |
|
|
TOTAL IMPORTS |
111.200 |
202.000 |
187.636 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.79 |
4.39 |
17.71 |
|
QUARTERLY / SUMMARISED
RESULTS
|
PARTICULARS |
30.06.2012 |
|
|
1st Quarter |
|
Net Sales |
3026.000 |
|
Total Expenditure |
2626.000 |
|
PBIDT (Excl OI) |
400.000 |
|
Other Income |
3.000 |
|
Operating Profit |
403.000 |
|
Interest |
20.000 |
|
Exceptional Items |
0.000 |
|
PBDT |
383.000 |
|
Depreciation |
47.000 |
|
Profit Before Tax |
336.000 |
|
Tax |
101.000 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
235.000 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
235.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
7.85
|
8.33 |
8.18 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
11.15
|
10.31 |
10.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
22.25
|
18.83 |
18.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.38 |
0.35 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77
|
1.08 |
0.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.35
|
2.84 |
3.28 |
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) |
No |
|
21] |
Market information |
---- |
|
22] |
Litigations that the firm
/ promoter involved in |
---- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---- |
|
26] |
Buyer visit details |
---- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
OVERALL
PERFORMANCE AND OUTLOOK
Revenue from
Operations and Other Income during the financial year ended 31st March 2012 was
at Rs. 8616.800 millions as against Rs. 7440.000 millions last year, representing
an increase of approximately 15% over the corresponding period of the previous
year. Profit after Tax for the year under review amounted to Rs. 676.900
millions representing an increase of approximately 9% over the previous year.
Despite continuous pressure of rising input costs in the previous year, the
Company was able to pass on most of the cost increases to its customers due to
the strength of their brands. Sales value and volume growth was in line with
industry growth.
As on 31st March,
2012, the Reserves and Surplus of the Company stood at Rs. 2143.200 millions.
The outlook for
the current year is challenging across traditional trade and modern retail
sales channels due to decline in Indian macro-economic conditions and a poor
marriage season. However, the Company expects to grow despite the adverse
environment due to its strong brands, products and advertising campaigns.
EXPORTS AND
INTERNATIONAL OPERATIONS
Exports for the
year ended 31st March 2012 were at Rs. 828.700 millions as against Rs. 730.700
millions in the previous year, an increase of approximately 13% over the
previous year. Global economic condition continued to remain weak especially in
Europe; however the Company consolidated its market share in the Middle East
and Asia Pacific. The Company is expecting that with the introduction of its
new ranges, it will be able to further strengthen the market share in the
coming years.
INDUSTRY STRUCTURE
AND DEVELOPMENT
LUGGAGE
DOMESTIC MARKETS
Overall the
luggage industry in India witnessed positive but slowing growth in demand
across price points and product categories and also faced severe cost pressures
in the year.
Demand was
positive in the first half of the year under review, aided by a good marriage
season. However, during the second half, high inflation, high interest rates,
high fuel costs and high air fares impacted leisure travel and reduced
disposable income, reducing the rate of demand growth and leading to a
relatively weak festive season. Increased air fares reduced the growth of air
passenger traffic to single digit from 15% - 20% increase in last two years.
Airline traffic directly impacts the growth of luggage category especially the
branded segment, where the Company has significant share.
On the supply
side, the Company witnessed stability in supplies from its domestic and
imported sources, however faced tremendous pressure on input costs. The rapidly
depreciating rupee significantly affected the Company’s margins as majority of
its soft luggage is imported from China. Chinese goods have also become more
expensive in dollar terms due to the Chinese government’s focus on domestic
consumption instead of exports due to which labor costs in China have increased
steadily. Increase in cost of raw materials like plastic, aluminum etc. and
increase in freight costs have further impacted the cost of goods.
The luggage
category is estimated to be of approx. Rs. 40000.000 millions in size and is
growing at around 10-15% per annum. Hypermarket channel has shown robust
organic growth during the year, growing far rapidly than other distribution
channels. The category has witnessed entry of some niche international players
mainly at the premium end. The short haul sub-categories like backpacks,
business satchels and trolley duffels have grown faster than rest of the
category. In the travel segment overall, Soft Luggage continues to grow faster
than Hard Luggage. However, polycarbonate luggage, i.e. a subset of hard
luggage which is a lightweight strong plastic material has shown encouraging
growth, mainly due to strategic initiatives taken by the Company in terms of
new product launches and advertising campaigns.
INTERNATIONAL
MARKETS
The International
Business of the Company registered a growth in all regions led by the Asia Pacific
and Middle East and African region which grew by 37% and 21% respectively.
Despite recession and unfavorable market conditions in Europe, the Company
managed to retain its market share there. Taking cue from changing travelling
requirements across the globe, the Carlton brand launched a series of very
lightweight luggage in its “Nanolite” category which have been very well
received by the consumers across geographies. The Carlton brand also added two
new ranges of very lightweight yet extremely strong Polycarbonate luggage in
its portfolio. Going ahead, the Company plans to consolidate its position in
various global markets apart from addressing new business opportunities through
private label manufacturing, especially in the fast growing Polycarbonate
segment.
MOULDED FURNITURE
The Moderna
Furniture business grew by 20% in value and over 12% in volume terms. The brand
“Moderna” is perceived to be a product having superior quality, premium image
and aesthetics in the minds of consumers. The Company’s products continue to
enjoy a preferred position in consumer segment particularly in the Northern,
Western and Southern India where it has a major share in the Institutions and
hire markets.
OUTLOOK
LUGGAGE
Considering the
threats, opportunities and the strengths of the Company, the key task at hand
will be to make most of the category growth across all price segments and
maintain margins to the best possible degree without affecting volume growth.
The Company is successfully executing its multi brand – multi segment strategy
with consistent investment in advertising for all its luggage brands.
MOULDED FURNITURE
The Company is
confident that it will be able to grow the business at the same pace by
improving its presence in the retail domain through fresh initiatives,
including the introduction of new products of different design and colors and
strategic placement of products with the channels to service customers.
Increased focus on the sales of premium range of products will deliver higher
growth in value terms.
FIXED ASSETS:
Tangible Assets:
·
Freehold
Land
·
Leasehold
Land
·
Buildings
·
Plant and
Machinery
·
Data
Processing Machines
·
Moulds
and Dies
·
Furniture,
Fixture and Equipments
·
Vehicles
Intangible Assets:
· Patents and Trademarks
· Computer Software
Statement of Unaudited Financial Results for the
Quarter Ended 30.06.2012
(Rs. in millions)
|
Sr No |
Particulars |
For the Quarter Ended |
|
|
|
30.06.2012 |
|
|
|
(unaudited) |
|
1 |
Income
from operations |
|
|
|
(a) Met Sales/Income
from Operations |
3017.000 |
|
|
(Net of
Excise Duty) |
|
|
|
(b) Other
Operating Income |
9.000 |
|
|
Total Income from operations (Net) |
3026.000 |
|
2 |
Expenses: |
|
|
|
a) Cost of
Materials consumed |
448.000 |
|
|
b) Purchase
of Stock-in-trade |
814.000 |
|
|
c) Change
in Inventory of Finished goods. |
269.000 |
|
|
Work-in-progress
and Stock-in-trade |
|
|
|
d) Employee
Benefits Expenses |
231.000 |
|
|
e)
Depreciation and Amortization expenses |
47.000 |
|
|
f) Rebates,
Discounts A commission |
264.000 |
|
|
g) Other
expenses |
565.000 |
|
|
Total
Expenses |
2638.000 |
|
3 |
Profit/(Loss)
from Operations before Other income, Finance costs and Exceptional Items (1-2) |
388.000 |
|
4 |
Other
Income |
3.000 |
|
5 |
Profit / (Loss) from ordinary
activities before Finance costs and Exceptional Items (3*4) |
391.000 |
|
6(a) |
Finance
Costs |
20.000 |
|
6(b) |
Foreign
Exchange Loss/(Gain) |
35.000 |
|
7 |
Profit/(Loss) from ordinary activities
after Finance costs but before Exceptional items (5-6) |
336.000 |
|
e |
Exceptional
Items |
-- |
|
9 |
Profit /
(Loss) from Ordinary Activities before tax (7*6) |
336.000 |
|
10 |
Tax
Expense |
101.000 |
|
lI |
Net Profit/(Loss)
for the period from Ordinary Activities after tax (9-10) |
235.000 |
|
12 |
Paid-up
equity share capital (face value of Rs 2/- each ) |
283.000 |
|
13 |
Reserves
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
- |
|
14 |
Earnings
per share (EPS) Rs ; Basic/
Diluted EPS |
1.7 |
|
|
Particulars |
3 months ended 30.06.2012 |
|
|
INVESTOR
COMPLAINTS |
|
|
|
Pending at the
beginning of the quarter |
Nil |
|
|
Received
during the quarter |
28 |
|
|
Disposed
off during the quarter |
28 |
|
|
Remaining
unresolved at the end of the quarter |
Nil |
Notes:
1. The
above results were reviewed by the Audit Committee and approved by the Board of
Directors at their respective meetings held on 7th August. 2012.
2. The
Earnings per Share for the year ended 31st March, 2012 is for the whole year,
whereas for the quarter ended period(s), it is only for that period.
3. The
above results for the quarter ended 30th June, 2012 have been reviewed by the
Statutory Auditors of the Company.
4. The
Company is
engaged primarily in the luggage business and
therefore, there is only
one reportable
segment in accordance with the Accounting
Standards on Segment Reporting (AS 17).
5. As
a matter of prudence, the Company has changed its policy of charging
depreciation on Soft Luggage Moulds and Dies. Due to the said change, the
profit for the quarter ended 30.06.2012 and year ended 31.3.2012 is understated
by Rs. 8.300 millions and Rs. 21.000 millions respectively (Corresponding
quarter and year ended in Previous Year - Both Nil)
6. Figures
of previous year/period(s) have been regrouped / reclassified wherever
necessary.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.59 |
|
|
1 |
Rs.85.81 |
|
Euro |
1 |
Rs.69.91 |
INFORMATION DETAILS
|
Report Prepared
by : |
NID |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
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 |
7 |
|
--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.