MIRA
INFORM REPORT
|
Report Date : |
29.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
IFB INDUSTRIES LIMITED |
|
|
|
|
Formerly Known
As : |
INDIAN
FINE BLANKS LIMITED |
|
|
|
|
Registered
Office : |
14, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of Incorporation : |
12.09.1974 |
|
|
|
|
Com. Reg. No.: |
21-29637 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 362.800 millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L51109WB1974PLC029637 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
CALI00026F / BLRI01281A |
|
|
|
|
Legal Form : |
Public Limited Liability
company. The company’s shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business : |
Manufacturers and Marketers of Press Tools and Dies |
|
|
|
|
No. of Employees
: |
1286 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 9680000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. It has
achieved a better increase in the sales turnover during 2012. However, there appears
a dip in the profitability of the company. General financial position of the company is good. Trade relations are
reported to be decent. Business is active. Payments are reported to be
regular and as per commitments. The company can be considered good for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
|
Source
: CIA |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED BY
|
Name : |
Mr. M. Mandar |
|
Designation : |
Marketing Manager |
|
Contact No.: |
91- 9326825369 |
|
Date : |
27.09.2012 |
LOCATIONS
|
Registered Office : |
14, |
|
Tel. No.: |
91-33-30489285 / 30489299 / 24014917-23 / 30489230 |
|
Fax No.: |
91-33-24014182 / 24014579 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Plot No. IND-5, Sector – I, |
|
Tel. No.: |
91-33-24428286 / 87 / 89 / 90 / 91 / 39849524 |
|
Fax No.: |
91-33-24427779 / 1003 / 39849676 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
JL-71, P O Bishnupur, Gangarampur, West |
|
|
|
|
Factory 2 : |
62, 64 and 66, Corlim Industrial Estate, Corlim, Ilhas,
Goa – 403 110, |
|
|
|
|
Factory 3 : |
E-3, New Industrial Area II, Mandideep – 462 046, |
|
|
|
|
Factory 4 : |
16/17, Visveswariah Industrial Estate, |
|
|
|
|
Factory 5 : |
L-1, Verna Electronic City, Verna, Salcete – 403 722, |
|
Tel. No. |
91-832-2783303-05 / 07 |
|
Fax No. |
91-832-2783306 |
|
E-Mail : |
|
|
|
|
|
Factory 6 : |
14, |
|
|
|
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Bijon Nag |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. Bikramjit Nag |
|
Designation : |
Executive Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Rathindra Nath Mitra |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Somen Bal |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Tridibesh Mukherjee |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Radharaman Bhattacharya |
|
Designation : |
Director |
|
|
|
|
Date of Birth/Age : |
Mr. R Muralidhar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudip Banerjee |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. G Ray Chowdhury |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee: |
|
|
Name : |
Dr. Rathindra Nath Mitra |
|
Designation : |
Chirman |
|
|
|
|
Name : |
Mr. Radharaman Bhattacharya |
|
Designation : |
Member |
|
|
|
|
Name : |
Mr. Somen Bal |
|
Designation : |
Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
292771 |
0.72 |
|
|
30,080,428 |
74.24 |
|
|
30,373,199 |
74.96 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
30,373,199 |
74.96 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
517,854 |
1.28 |
|
|
2,980 |
0.01 |
|
|
176,528 |
0.44 |
|
|
697,362 |
1.72 |
|
|
|
|
|
|
2,785,052 |
6.87 |
|
|
|
|
|
|
4,559,845 |
11.25 |
|
|
1,297,223 |
3.20 |
|
|
806,115 |
1.99 |
|
|
691,030 |
1.71 |
|
|
90,003 |
87,767 |
|
|
9,448,235 |
23.32 |
|
Total Public
shareholding (B) |
10,145,597 |
25.04 |
|
Total (A)+(B) |
40,518,796 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
|
|
|
Total
(A)+(B)+(C) |
40,518,796 |
-- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers and Marketers of Press Tools and Dies. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
1286 (Approximately) |
|
|
|
|
Bankers : |
·
State Bank of ·
Bank of ·
United Bank of ·
State Bank of ·
Allahabad Bank ·
Canara Bank ·
State Bank of Bikaner and Jaipur ·
Chinatrust Commercial Bank |
|
|
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
·
IFB Agro Industries Limited ·
Travel Systems Private Limited ·
Thai Automotive and Application Limited ·
Global Automotive and Appliances Limited |
|
|
|
|
Investment Company : |
IFB Automotive Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
65000000 |
Equity Share |
Rs.10/- Each |
Rs.650.000 millions |
|
30000000 |
Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.300.000 millions |
|
|
|
|
|
|
Total |
|
|
Rs. 950.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35518796 |
Equity Shares |
Rs.10/- each |
Rs.355.200
millions |
|
3050000 |
Add : Forfeited shares |
Rs.2.50/-
each |
Rs.7.600
millions |
|
|
|
|
Rs.3628.800 millions |
a. Reconciliation of the shares outstanding at the beginning and at the
end of the reporting period
|
Particular |
Nos. |
Rs. In millions |
|
At the beginning of the period |
35,456,8963,546 |
354.600 |
|
Issued during the period - Employees Stock |
61,900 |
0.600 |
|
Purchase Scheme |
-- |
-- |
|
|
|
|
|
Outstanding at the
end of the period |
35518796 |
355.200 |
b. Rights,
preferences and restrictions attached to equity shares
The company has only class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share other than the partly paid shares which have been forfeited.
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company.
The distribution will be in proportion to the number of equity shares held by the shareholders.
c. Details of
shareholders holding more than 5% shares in the company
|
Particular |
Nos. |
Rs. In millions |
|
Equity shares of Rs. 10 each fully paid: |
|
|
|
1. Nurpur Gases Private Limited |
16.92% |
6,010,416 |
|
2. IFB Automotive Private Limited |
41.55% |
14,756,833 |
|
3. Asansol Bottling and Packaging Company Private Limited |
6.94% |
2,466,428 |
d. Shares issued
under Employees Stock Purchase Scheme
During the year the Company has issued 61,900 (31 March 2011: 701,850) fully paid equity shares of Rs. 10 each to its employees under IFB Industries Limited - Employees Stock Purchase Scheme 2008 at premium of Rs. 5 per share.
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 |
362.800 |
362.200 |
355.175 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2059.100 |
1749.800 |
2383.643 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(1201.069) |
|
|
NETWORTH |
2421.900 |
2112.000 |
1537.749 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
154.200 |
100.200 |
37.483 |
|
|
|
|
|
|
|
|
TOTAL |
2576.100 |
2212.200 |
1575.232 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1561.000 |
1242.500 |
754.745 |
|
|
Capital work-in-progress |
45.100 |
145.900 |
144.911 |
|
|
|
|
|
|
|
|
INVESTMENT |
99.700 |
461.700 |
106.424 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1092.500
|
888.300 |
853.318
|
|
|
Sundry Debtors |
466.300
|
390.500 |
279.825
|
|
|
Cash & Bank Balances |
524.200
|
269.100 |
365.444
|
|
|
Other Current Assets |
17.100
|
12.600 |
0.000
|
|
|
Loans & Advances |
605.300
|
480.500 |
399.271
|
|
Total
Current Assets |
2705.400
|
2041.000 |
1897.858 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1090.500
|
854.800 |
838.734
|
|
|
Other Current Liabilities |
434.400
|
583.400 |
258.234
|
|
|
Provisions |
310.200
|
240.700 |
231.738
|
|
Total
Current Liabilities |
1835.100
|
1678.900 |
1328.706 |
|
|
Net Current Assets |
870.300
|
362.100 |
569.152
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2576.100 |
2212.200 |
1575.232 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
7696.300 |
6492.100 |
5080.867 |
|
|
|
Sales of services |
333.200 |
305.300 |
259.182 |
|
|
|
Other Income |
114.500 |
178.000 |
228.732 |
|
|
|
TOTAL (A) |
8144.000 |
6975.400 |
5568.781 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Raw materials consumed |
3035.900 |
2614.200 |
3068.852 |
|
|
|
Purchase of stock-in-trade |
1802.500 |
1175.500 |
-- |
|
|
|
(Increase) /decrease in finished goods, |
(131.800) |
(37.600) |
-- |
|
|
|
work-in-progress and stock-in-trade Cost of Spares sold |
47.100 |
39.000 |
-- |
|
|
|
Employee benefit expense |
698.700 |
630.000 |
507.314 |
|
|
|
Other expenses |
2165.200 |
1759.500 |
-- |
|
|
|
Exceptional Expense |
(15.000) |
- |
|
|
|
|
Operating and
administration expenses |
0.000 |
0.000 |
1328.099 |
|
|
|
TOTAL
(B) |
7602.600 |
6180.600 |
4904.265 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
541.400 |
794.800 |
664.516 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3.200 |
2.600 |
2.574 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
538.200 |
792.200 |
661.942 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
148.800 |
104.100 |
86.815 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
389.400 |
688.100 |
575.127 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
84.000 |
185.000 |
37.483 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
305.400 |
503.100 |
537.644 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(697.969) |
(1201.069) |
(1541.614) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
-- |
|
|
|
Dividend |
0.000 |
0.000 |
(37.099) |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
(160.000) |
|
|
BALANCE CARRIED
TO THE B/S |
(392.569) |
(697.969) |
(1201.069) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
FOB Value of exports |
18.900 |
17.400 |
4.508 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
747.400 |
541.400 |
628.077 |
|
|
|
Stores & Spares |
79.200 |
8.700 |
0.365 |
|
|
|
Trading Goods |
0.000 |
0.000 |
619.435 |
|
|
|
Capital Goods |
124.800 |
437.000 |
127.635 |
|
|
TOTAL IMPORTS |
951.400 |
987.100 |
1375.512 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic
and Diluted |
8.61 |
14.24 |
16.87 |
|
QUARTERLY RESULTS
Rs. In
Millions
|
PARTICULARS |
|
30.06.2012 |
|
Type |
|
|
|
Net Sales |
|
1991.200 |
|
Total Expenditure |
|
1871.100 |
|
PBIDT (Excl OI) |
|
120.100 |
|
Other Income |
|
14.400 |
|
Operating Profit |
|
134.500 |
|
Interest |
|
0.400 |
|
PBDT |
|
134.100 |
|
Depreciation |
|
41.100 |
|
Profit Before Tax |
|
93.000 |
|
Tax |
|
30.000 |
|
Profit After Tax |
|
63.000 |
|
Net Profit |
|
63.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.75
|
7.21 |
9.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.06
|
10.60 |
11.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.13
|
20.96 |
21.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.09 |
0.37 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.76
|
0.79 |
0.86 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.47
|
1.21 |
1.43 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available
in Report (Yes / No) |
|
1] |
Year of
Establishment |
Yes |
|
2] |
Locality of
the firm |
Yes |
|
3] |
Constitutions
of the firm |
Yes |
|
4] |
Premises
details |
No |
|
5] |
Type of
Business |
Yes |
|
6] |
Line of
Business |
Yes |
|
7] |
Promoter's
background |
Yes |
|
8] |
No. of
employees |
Yes |
|
9] |
Name of
person contacted |
Yes |
|
10] |
Designation
of contact person |
Yes |
|
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 |
No |
|
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 |
Yes |
|
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 |
No |
REVIEW OF OPERATION
The Company completed another year of modest performance with strong topline growth. All business segments posted sound growth in revenues and enhanced their market standing. Gross Turnover for the year grew by 22% to Rs. 9399.200 millions. Net Turnover other than service and other income at Rs. 7515.600 millions grew by 18%. Steady performance by Appliance business grew by 24%. Engineering Division grew by 12%. However, due to adverse material cost variance, forex loss, product mix etc. the pretax profit as compared to last year drastically dropped by 47.76% to Rs. 359.400 millions. Earnings per share for the year stand at Rs. 8.61.
MANAGEMENT DISCUSSION
AND ANALYSIS
Industry Structure
and Developments
India's consumer market is on growth track despite global recession. The Indian consumer durable industry is estimated at Rs 400 billion and is expected to reach Rs 500 billion by 2015. The consumer durable sector contributes around 8% in the index of industrial production (IIP). The factors that have influenced this industry positively for the past few years were greater affordability, changing life style and awareness of branded products with rapid urbanization. However, the penetration level of many appliances like refrigerators, washing machines, MWO and AC is still very low. In union budget 2012, lack of any concrete announcement and lack of incentives failed to counter sluggish demand in the industry and lack of guidance on any precise time-lines for roll-out of GST is a bit of disappointment for Retail and Consumer Product Sector. However, five year extension for weighted deduction of 200% on R and D expenditure for in-house facilities is a welcoming decision. The increase in excise duty and service tax from 10% to 12% will straight away affect all segments of society that have the required purchasing power. Growth in consumer durables is likely to accelerate as disposable income and techno-efficiency rises with increasing rural demand.
The Rs. 1,600 billion Indian auto component industry has been witnessing a moderation in its revenue growth since the beginning of fiscal 2011-12 following the deceleration in sales volume growth across all automobile segments. As per industry estimates, out of total turnover of the Indian auto component industry, around 60% is derived from sales to domestic OEMs, around 25% comes from sale to the domestic replacement market and 15% is derived from export. While the long term prospects for the industry remain strong in line with the outlook for the OEM segment, the industry faces strong challenge in the form of threat of low cost imports, currency volatility and ability to invest on product development to be able to move up the value chain. Over and above operating cost pressures, the PAT margins of several auto component manufacturers have also been weighed down by increase in depreciation and interest costs. This was consequent to the large capex incurred by these entities to meet the rising production schedules of OEMs and towards establishing production infrastructure to supply parts for new models launched by OEMs. With slowdown in sales, particularly in the PV segment, and relatively lower volume growth of some of the new models, the utilization of vendor capacities remained sub-optimal.
Segment wise performance.
The Home Appliance Division has improved its turnover as compared to last year. Washing machine sale in value term for the year recorded a growth of 20.85% over last year. Out of which front loader washing machine sale has grown by 22.3% and top loaders have grown by 10.5% over last year. Microwave oven sale in value term recorded a growth of 29% over last year. However, in spite of 20% growth the PBDIT for the division reduced by 38% as compared to last year. The reduction in profit is due to increase in material cost, staff cost, loss on forex and increases in operating and administrative costs.
The company has entered the commercial laundry equipment business and has launched the same pan India. Enquiry of this segment has been encouraging and the company expects moderate sales from this category going forward. The Company has also entered kitchen appliances and modular kitchen business.
The Engineering Division recorded growth in sales by 12.7% and PBDIT of the division marginally raised by 8.35% as compared to last year. To revamp and increase its capacity the company modernized its tool room at Bangalore, installed two new fine blanking presses as well as modernize the old ones.
Outlook
The overall economic outlook seems to be favourable for recovery in the global economic environment and the Indian economy is also poised to grow. We expect Appliances growth in their product categories to be robust and thus we would expect 20%+ sales growth. Their focus would be to improve their service function as well as to invest in technology for better performance. We thus implemented SAP and this will help us to bring down inventory as well as to react faster to market needs apart from bringing about other improvements. Their focus would also be to improve their distribution channel by penetrating deeper into smaller towns.
We have already completed their expansion-cum-modernization of their washing machine factory at Goa. This expansion would ensure state-of-the-art new generation washing machines of higher capacities and the excess capacity we would use to market for OEM sales through buyers in Europe, Africa, Asian countries, etc. However launch of their new models were delayed .We would also like to strengthen their direct sales channel as well as their customer retention programs in order to sell more IFB products to the same customer leading to more business per customer on a recurring basis due to recurring service income via AMC's as well as sale of additives, etc.
To compete with their competitors and to offer high quality products to their customers, the company modernised its R and D Lab at Goa.
The new ultra range in front loaders, it's pricing and feature combination is significantly superior to competitors' products. The new top loader range will stabilize the platform for the expansion of this product category. The fully automatic Top loaders account for 35% of the total washing machine market and a significant presence in this segment is important. The new range will set the base for a growth from the present level of 3.5% in market share terms.
Their industrial equipment range is very large and comprehensive. In this fiscal, we have an opportunity to expand and specifically target high end hotels, restaurants and clubs for which we are currently participating in tenders in many places across the country. The increase in number of IFB Points and the results we are experiencing are very encouraging.
The entry into ACs and Refrigerators in this year is an obvious opportunity to extend their market presence and enter market segments which are the biggest by turnover and this will help product placements across the entire channel.
IFB has invested in its Fine Blanking operations in order to meet the growing demands of the Indian automobile industry. However, we have also de-risked by marketing their fine blanked products to other industries which are also high growth. We are focusing on domestic demand and have built up capacities to meet the same. We will look at exports at a later date as the long working capital cycle is not suitable for us. As a strategy, we are identifying areas where their business share is low and can be increased substantially to negate any de growth in automotive sector.
They have invested in modernizing their Tool Room to international standards and added new fine blanking presses as well as modernizing the old ones. This jump in investments will, they hope, ensure significant increase of their sales by 31st March, 2013.
Liquidity position of the Company was comfortable and the company remains debt free. Company remained focused on its working capital management. Interest and dividend income from placement of temporary surplus funds with mutual funds increased on account of higher surplus fund and increase in interest rates to Rs 45.700 millions compared to Rs 19.700 millions at the end of previous year. As in the past, the Company has maintained excellent relationship with its bankers and was able to avail and negotiate favourable terms for various banking facilities.
Commitment and
Contingencies:
(Rs. In millions)
|
|
March 31,2012 |
March 31, 2011 |
|
i) Outstanding capital commitments for tangible assets |
225.800 |
127.600 |
|
ii) Outstanding capital commitments for intangible assets |
1.700 |
1.800 |
|
iii) Disputed sales tax matters, excise duties, income tax contested in appeals (These disputes mostly relate to arbitrary disallowances of claims of the Company under various state laws, which are under appeal. The management is of the view that these demands are not sustainable in law and is hopeful of succeeding in appeals.) |
68.900 |
48.400 |
|
iv) Indemnity bonds executed in favour of excise and customs |
15.000 |
10.000 |
|
v) Guarantees given by the bankers on behalf of the Company |
11.800 |
6.100 |
|
vi) Letter of credits |
22.600 |
53.800 |
|
vii) Corporate Guarantee for Advance licenses |
60.300 |
149.800 |
|
viii) Claims against the Company not acknowledged as debts (#)(@) |
7.600 |
47.000 |
|
ix) Corporate Guarantee to bank on behalf of Associate Company |
10.000 |
10.000 |
(#) The Company obtained a bank guarantee of Rs. 1.600 millions in connection with execution of a civil contract awarded by State Health Department, Government (Govt.) of West Bengal. Following a dispute the Health Department, Govt. of West Bengal invoked the said Bank Guarantees whereupon the Company challenged such invocation by way of a writ petition before the Hon'ble Calcutta High Court. The Hon'ble High Court was pleased to allow interim order of injunction dated May 22, 2003 restraining the respondent not to give any effect to the invocation of guarantees till further order with the condition that the guarantee shall be renewed from time to time. The bank guarantee expired and has not been renewed since the case has been dismissed by the Hon'ble Calcutta High Court. The amount has been included in Claims against the Company not acknowledged as debts as at 31st March 2012 and 31st March 2011.
(@) As at 31st March 2011, claims against the company not acknowledged as debts included a claim relating to material rejection amounting to Rs. 45.400 millions. During the year the company has entered into a mutual compromise settlement wherein the Company has settled and paid an amount of Rs. 15.000 millions as settlement amount. The same has been recognized as an exceptional item for the year ended 31st March
2012.
Websites Details:
Profile:
IFB Industries Limited originally known as Indian Fine Blanks Limited started their operations in India during 1974 in collaboration with Hienrich Schmid AG of Switzerland. The product range includes Fine Blanked components, tools and related machine tools like Straighteners, Decoilers, Strip loaders and others.
The Engineering divisions are located at Kolkata and Bangalore. The Bangalore unit, apart from Fine Blanked components, manufactures motors for White goods as well as automotive applications.
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
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.69 |
|
UK Pound |
1 |
Rs.85.71 |
|
Euro |
1 |
Rs.68.14 |
INFORMATION DETAILS
|
Report Prepared
by : |
NLM |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.