MIRA INFORM REPORT
|
Report Date : |
27.08.2013 |
IDENTIFICATION DETAILS
|
Name : |
TTK PRESTIGE LIMITED |
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Registered
Office : |
Plot No. 38, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
22.10.1955 |
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Com. Reg. No.: |
015049 |
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Capital
Investment / Paid-up Capital : |
Rs.113.548 Millions |
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CIN No.: [Company Identification
No.] |
L85110TZ1955PLC015049 |
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|
TAN No.: [Tax
Deduction & Collection Account No.] |
CHET00535D |
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PAN No.: [Permanent
Account No.] |
AAACT6503G |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturing and Marketing of Pressure Cookers and Pans,
Cookware Items, Sterilizer, Wheel Skin, Weighing Scales, Barbecue, Idli
Stand, Personal Care Products and Kitchen Knives |
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|
|
|
No. of Employees
: |
1306 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (69) |
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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 |
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Maximum Credit Limit : |
USD 16000000 |
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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 company having a fine track record. Overall financial position of the company appears to be strong and
healthy. Trade relations are fair. Business is active. Payment terms are regular. The company can be considered for business dealing 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
We are living in a
world where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and
the US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the outbreak
of the global financial crisis, the world economy continues to remain fragile.
The Indian economy demonstrated remarkable resilience in the initial years of
the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood opportunities
for the millions living in poverty as also the large contingent of young people
joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: AA |
|
Rating Explanation |
High credit quality and lowest credit risk. |
|
Date |
13.05.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A1+ |
|
Rating Explanation |
Highest credit quality and lowest credit
risk. |
|
Date |
13.05.2013 |
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 : |
Plot No. 38, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu,
India |
|
Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
11th Floor, Brigade Towers, 135, Brigade Road, Bangalore –
560025, Karnataka, India |
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Tel. No.: |
91-80-22217438/ 39 |
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Fax No.: |
91-80-22277446 |
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E-Mail : |
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Factory 1 : |
Plot No.82 and 85, SIPCOT Industrial Complex, Hosur Dharmapuri District – 635126, Tamilnadu, India |
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Factory 2 : |
SF-234/1, Pollachi Road, Myleripalayam Village, Coimbatore – 641032, Tamilnadu, India |
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Factory 3 : |
Plot No. 1A and 2, Dev Bhoomi Industrial Estate,
Roorke-247667, |
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Branches : |
Located at: · Ahmedabad · Bangalore · Chandigarh · Chennai ·
·
· Dehradun · Ernakulam · Ghaziabad · Goa · Gurgaon · Guwahati · Hubli · Hyderabad · Indore · Jaipur · Jamshedpur · Kolkata · Lucknow · Ludhiana · Mumbai · Parwanoo (HP) · Patna · Pune · Raipur · Trichy · Vijayawada |
DIRECTORS
(AS ON 31.03.2013)
|
Name : |
Mr. T. T. Jagannathan |
|
Designation : |
Executive Chairman |
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Name : |
Mr. T.T. Raghunathan |
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Designation : |
Vice Chairman |
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Name : |
Mr. S Ravichandran |
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Designation : |
Managing Director |
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|
Name : |
Mr. Ajay I Thakore |
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Designation : |
Director |
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Name : |
Mr. R Srinivasan |
|
Designation : |
Director |
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|
Name : |
Dr. Latha Jagannathan |
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Designation : |
Director |
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|
Name : |
Dr. Vandana R Walvekar |
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Designation : |
Director |
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Name : |
Mr. K Shankaran |
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Designation : |
Director |
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|
Name : |
Mr. Dileep Kumar Krishnaswamy |
|
Designation : |
Director |
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|
Name : |
Mr. Arun K Thiagarajan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K. Shankaran |
|
Designation : |
Whole Time Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.06.2013)
|
Category of
Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1147724 |
10.12 |
|
|
14800 |
0.13 |
|
|
6988747 |
61.62 |
|
|
6988747 |
61.62 |
|
|
8151271 |
71.87 |
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|
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|
|
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Total
shareholding of Promoter and Promoter Group (A) |
8151271 |
71.87 |
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(B) Public
Shareholding |
|
|
|
|
|
|
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|
494388 |
4.36 |
|
|
1851 |
0.02 |
|
|
1808845 |
15.95 |
|
|
2305084 |
20.32 |
|
|
|
|
|
|
|
|
|
|
61512 |
0.54 |
|
|
|
|
|
|
|
|
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|
716131 |
6.31 |
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|
45555 |
0.40 |
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|
61637 |
0.54 |
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|
22834 |
0.20 |
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|
38053 |
0.34 |
|
|
750 |
0.01 |
|
|
884835 |
7.80 |
|
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|
|
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Total Public
shareholding (B) |
3189919 |
28.13 |
|
|
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|
Total (A)+(B) |
11341190 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
|
|
|
Total
(A)+(B)+(C) |
11341190 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Marketing of Pressure Cookers and Pans, Cookware
Items, Sterilizer, Wheel Skin, Weighing Scales, Barbecue, Idli Stand,
Personal Care Products and Kitchen Knives. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
1306 (Approximately) |
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Bankers : |
· Bank of Baroda CFS Branch, Brigade Road, Bangalore – 560025, Karnataka, India · Canara Bank Prime Corporate Branch, Shankarnarayana Building, M.G. Road, Bangaluru-560001, Karnataka, India · HDFC Bank Limited Richmond Road, Bangalore – 560025, Karnataka, India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S. Viswanathan Chartered Accountants |
|
Address : |
27/34, II Floor, Nandi Durg Road, Jayamahal Extension, Bangalore – 560046, Karnataka, India |
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|
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|
Related Party,
Enterprises over which key Management personnel have significant Control: |
· TTK Healthcare Limited · Peenya Packaging Products · TTK LIG Limited · TT Krishnamachari and Company · TTK Services (Private) Limited ·
Mantra
Inc., |
CAPITAL STRUCTURE
(AS ON 15.07.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11641190 |
Equity Shares |
Rs.10/- each
|
Rs.116.412
Millions |
|
|
|
|
|
(AS ON 31.03.2013)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued and Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11368490 |
Equity Shares |
Rs.10/- each
|
Rs.113.685
Millions |
|
|
|
|
|
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11341190 |
Equity Shares |
Rs.10/- each
|
Rs.113.412
Millions |
|
27300 |
Add: Equity Shares Forfeited |
Rs.5/- each |
Rs.0.136 Million |
|
|
|
|
|
|
|
Total |
|
Rs.113.548 Millions |
NOTE:
1.
Paid Up Share Capital of 11341190 shares (Previous Year: 11321084 shares)
includes 7869064 shares of Rs.10 each allotted as Bonus Shares fully paid-up by
capitalization of reserves and 20106 shares issued to shareholders of M/s.
Prestige Housewares India Limited (PHIL) consequent to merger of PHIL with TTK
Prestige Limited.
2.
There was no issue/buy back of shares of the nature mentioned in clause (i) of
note 6A of general instructions to Schedule VI in the last five years.
Reconciliation of number of Equity Shares outstanding at the
beginning and at the end of the year
|
Particulars |
31.03.2013 |
|
|
|
|
Number
of shares outstanding as at the beginning of the year |
11321084 |
|
Add
: Number of shares issued during the year |
20106 |
|
Number
of shares outstanding as at the end of the year |
11341190 |
Shares in the company held by each shareholder holding more
than 5% shares
|
Name of the Share Holders |
Number of Shares held in the company |
Percentage of shares held |
|
|
|
|
|
T.T,
Krishnamachari and Company represented by its partners |
7168747 |
63.21% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
113.548 |
113.347 |
113.347 |
|
(b) Reserves & Surplus |
3841.082 |
2739.386 |
1801.485 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share
Application money pending allotment |
0.000 |
0.201 |
0.000 |
|
Total Shareholders’
Funds (1)+(2) |
3954.630 |
2852.934 |
1914.832 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
9.597 |
145.922 |
8.359 |
|
(b) Deferred tax liabilities (Net) |
101.150 |
68.084 |
32.581 |
|
(c)
Other long term liabilities |
50.000 |
50.000 |
35.000 |
|
(d)
long-term provisions |
78.207 |
95.290 |
87.442 |
|
Total
Non-current Liabilities (3) |
238.954 |
359.296 |
163.382 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1135.454 |
216.146 |
14.264 |
|
(b)
Trade payables |
1233.298 |
816.102 |
739.857 |
|
(c)
Other current liabilities |
918.782 |
1249.810 |
595.199 |
|
(d)
Short-term provisions |
426.056 |
226.967 |
827.155 |
|
Total
Current Liabilities (4) |
3713.590 |
2509.025 |
2176.475 |
|
|
|
|
|
|
TOTAL |
7907.174 |
5721.255 |
4254.689 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
1658.422 |
1507.694 |
414.004 |
|
(ii)
Intangible Assets |
22.533 |
0.000 |
5.281 |
|
(iii)
Capital work-in-progress |
1400.792 |
793.665 |
390.600 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
0.165 |
0.165 |
3.903 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
0.000 |
0.000 |
0.000 |
|
(e)
Other Non-current assets |
224.468 |
96.864 |
118.985 |
|
Total
Non-Current Assets |
3306.380 |
2398.388 |
932.773 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
221.897 |
|
(b)
Inventories |
2355.271 |
1748.962 |
1050.430 |
|
(c)
Trade receivables |
1432.070 |
1060.371 |
746.530 |
|
(d)
Cash and cash equivalents |
325.507 |
227.582 |
535.424 |
|
(e)
Short-term loans and advances |
472.948 |
281.420 |
764.288 |
|
(f)
Other current assets |
14.998 |
4.532 |
3.347 |
|
Total
Current Assets |
4600.794 |
3322.867 |
3321.916 |
|
|
|
|
|
|
TOTAL |
7907.174 |
5721.255 |
4254.689 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13584.839 |
11034.363 |
7635.629 |
|
|
|
Other Income |
47.323 |
44.814 |
42.685 |
|
|
|
TOTAL (A) |
13632.162 |
11079.177 |
7678.314 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3669.466 |
2465.699 |
1855.168 |
|
|
|
Purchases of Stock in Trade |
4579.078 |
4268.393 |
2562.421 |
|
|
|
Changed in Inventory of Work in Progress, Finished Goods and Stock in
Trade |
(482.880) |
(555.130) |
(319.769) |
|
|
|
Employee Benefits Expenses |
835.804 |
729.922 |
530.070 |
|
|
|
Other Expenses |
2946.092 |
2411.088 |
1790.875 |
|
|
|
Extraordinary Items |
0.000 |
0.000 |
5.850 |
|
|
|
TOTAL (B) |
11547.560 |
9319.972 |
6424.615 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2084.602 |
1759.205 |
1253.699 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
142.653 |
64.115 |
7.553 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1941.949 |
1695.090 |
1246.146 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
89.902 |
62.498 |
42.608 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1852.047 |
1632.592 |
1203.538 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
521.150 |
498.815 |
366.022 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1330.897 |
1133.777 |
837.516 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
652.055 |
339.590 |
260.686 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials, Components, and Finished Goods |
2477.765 |
2138.679 |
1258.318 |
|
|
|
Capital Goods |
62.817 |
214.333 |
0.000 |
|
|
TOTAL IMPORTS |
2540.582 |
2353.012 |
1258.318 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
117.35 |
99.97 |
73.98 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
|
Type |
1st
Quarter |
|
Net Sales |
3063.300 |
|
Total Expenditure |
2649.600 |
|
PBIDT (Excl OI) |
413.700 |
|
Other Income |
17.300 |
|
Operating Profit |
431.000 |
|
Interest |
30.700 |
|
Exceptional Items |
0.000 |
|
PBDT |
400.300 |
|
Depreciation |
24.000 |
|
Profit Before Tax |
376.300 |
|
Tax |
118.400 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
257.900 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
257.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
9.76
|
10.23 |
10.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
13.63
|
14.80 |
15.76 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
28.47
|
33.13 |
31.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.47
|
0.57 |
0.63 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.29
|
0.13 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24
|
1.32 |
1.53 |
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 |
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 |
Yes |
------------------------------------------------------------------------------------------------------------------------------
Profile
|
Client Industry |
Kitchen
Equipment |
|
Client's
discipline |
-- |
General
|
The growth of the
client's industry is best described as: |
Growing |
|
Brief
description of the services and/or goods the client provides to the
marketplace: |
Cooker,
Appliances, Gas, Stoves and Modular Kitchen |
|
What is the
legal structure of the client? |
Parent Co with
Subsidiary |
|
What type of
company is the client? |
Public |
Credit Rating
|
Client's debt
tracked by a credit rating agency? |
Yes |
|
Name of credit
rating agency: |
CRISIL |
|
Credit rating
class provided by credit rating agency: |
Investment Grade |
|
Client credit
rating: |
AA / A1+ |
|
Report on credit
worthiness of client purchased from: |
Not obtained |
Client Financials
|
Does the client
have a credit facility? |
Yes |
|
Do you have
financial information on this client? |
Yes |
|
Credit facility
type: |
Secured/Unsecured |
|
Amount of credit
facility: |
Secured
:Rs.630.939 Millions Unsecured
:Rs.514.112 Millions |
|
Currency of
financial statements/data: |
INR Millions |
|
Annualized
revenues: |
Rs.13584.839
Millions |
|
Annualized COGS: |
Rs.3669.466
Millions |
|
Annualized
EBITDA: |
Rs.2084.602
Millions |
|
Annualized net
income: |
Rs.1330.897
Millions |
|
Cash balance: |
Rs.0.457 Million |
|
Marketable
Securities balance: |
--------- |
|
Accounts
Receivable balance: |
Rs.1432.070
Millions |
|
Current Assets
balance: |
Rs.4600.794
Millions |
|
Total assets
balance: |
Rs.7907.174
Millions |
|
Current
Liabilities balance: |
Rs.3713.590
Millions |
|
Long-Term Debt
balance: |
Rs.9.597
Millions |
|
Equity balance: |
Rs.3954.630
Millions |
|
Net cash
provided by operating activities: |
Rs.972.532
Millions |
|
Date of client's
financial data populated: |
31.03.2013 |
|
Financial
information provided above audited? |
Yes |
------------------------------------------------------------------------------------------------------------------------------
REVIEW OF
PERFORMANCE:
The
Company is focused on growth with a fair return on capital employed. Your
Company does not follow a standalone margin-led strategy. Therefore the
performance has to be understood only in the light of the philosophy followed
by the Company.
·
Sales grew by 23.44% on a higher base after witnessing
growths 45% and 50% in the previous two years and against the back drop of a
significant slowdown in domestic as well as global economies. In addition, two
key Southern States witnessed severe monsoon failure and power crisis for most
part of the year under report leading to steep fall in consumption in those States.
·
The Company crossed the milestone of 5 million pressure
cookers (including exports) and registered a sales volume of 5.54 million
pressure cookers in the year under report.
·
Export volumes of pressure cookers crossed the one million
mark for the financial year
·
The Company crossed the milestone of 1 million Induction
Cooktops and recorded a sales volume of 1.2 million pieces in the year under
report. This volume has been achieved within 4 years of launch.
·
The Company gained a very strong foot-hold in the non-south
markets across all product categories and this has helped in off-setting the
slowdown in the two key southern states, Tamil Nadu and Kerala.
·
EBIDTA grew by 18.5%
·
Profit after tax increased by 17.38%.
·
The operating EBIDTA margin was 15.04% as compared to 15.67%
in the previous year. EBIDTA margin is largely influenced by the composition of
sales as different product categories yield different margins.
·
Earnings per Share (before extra-ordinary/exceptional items)
rose to Rs.117.35 from Rs.99.97- a growth of 17.39%.
·
The ratio of Operating EBIDTA/ Operating Capital employed
(excluding CWIP) in the Kitchen Segment is 58.4% notwithstanding substantial
additions to asset base for future needs of production.
AWARDS
AND RECOGNITONS
The
Company is being continuously recognized by various reputed agencies for its
overall corporate performance and brand standing. The Company's brand Prestige
continues to be recognized as the Super Brand in the Kitchen Appliances
Segment. The Company received the Power Brand award during 2012. The Company's
key executives- Mr. Chandru Kalro, Chief Operating Officer, Mr. V. Sundaresan,
CFO and Mr. K. G. George (Senior Vice President, Retail) have also been
recognized as top performers/icons by reputed external agencies.
Mr.
T.T. Jagannathan, Executive Chairman, received the coveted Ernst and Young's
"Entrepreneur of the Year" award for the year 2012 in the Consumer
Product Category.
The
Company's R&D Centre at Hosur has received recognition from the Department
of Science and Technology which will enable the Company to avail certain
benefits under Direct and Indirect tax laws subject to prescribed conditions.
MANAGEMENTS'
DISCUSSION AND ANALYSIS
ECONOMY /INDUSTRY
SCENARIO
The
macroeconomic environment throughout the Fiscal Year 2012-13 was challenging in
the backdrop of weak global economic environment as well as a host of domestic
factors. The real GDP growth rate was estimated at less than 6% a further drop
from the previous fiscal. During the year inflationary trends continued to
inhibit consumption. In fact the Private Final Consumption Expenditure (PFCE)
grew by a mere 2.3% in 2012-13. The PFCE growth was hovering around 8% till
2011-12.
States
like Tamil Nadu and Kerala, suffered heavily due to poor monsoon and power
deficit which affected every part of the economy in these States. Andhra
Pradesh also went through a slow down due to local economic and market
conditions.
Against
the backdrop of the above described scenario your company was able to keep up
its momentum of growth and grew by about 23.4% in 2012-13 over and above the
growth of 45% achieved in the previous year.
The
Company operates in the kitchen appliances segment with a wide range of product
categories. The product categories consist of Pressure Cookers, Non-stick
Cookware,
Gas
Stoves and Domestic Kitchen Electrical Appliances. The market for Pressure
Cookers is shared amongst organized national branded players, regional players
and unorganized players. Over the years, the share of the unorganized players
has been gradually coming down as there has been a shift in the consumer
preference to reliable branded players. The market for organized brands is
estimated at more than 60% of the total market. The share of unorganized
players is greater for Non-stick cookware as compared to pressure cookers. For
the rest of the product categories, the market structure is fragmented and the
share and the role of regional brands and unorganized players continue to be
significant.
The
Appliance Category - both Home and Kitchen - is witnessing a lot of churn. Both
foreign and domestic players are entering the category or expanding their range
to cover a host of products in the category. Regional brands are either bought
by foreign players or being supported by private equity investors. Some State
Governments have started providing select domestic electrical appliances like
mixer-grinders; fans etc. free of cost to low income groups. The dynamics of
all these can probably lead to generation of demand for branded and upgraded
products in the long run.
OUTLOOK
As
mentioned in the earlier part of this report, the general economic scenario is
clouded by several factors comprising of global recession, poor monsoon and
power, infrastructure and so on. The rate of growth in the domestic economy has
been continuously falling over the last three years. There does exist
uncertainty over the spending power of the consumer in the immediate future on
account of inflation. However it is expected that the economy would get into
growth mode from July/ August 2013 based on the progress of monsoon. The
various power projects in Tamilnadu are also expected to come into stream
during the second quarter of current fiscal. Under the circumstances the
company expects to register reasonable growth from the second quarter onwards.
The
company has already taken significant initiatives for indigenizing
manufacture/assembly of certain key products both in Cookware and Appliance
Categories which will reduce dependence on imports of fully finished goods and
have favourable influence on transaction costs and working capital investments.
FINANCES
The
Company continues to generate substantial post-tax operating free cash flows.
The company also availed credit lines from banks in order to fund the growth
and expansion of the Company. The outstanding borrowing as on 31.3.2013 was
around Rs.1150.000 Millions.
SCHEMES OF ARRANGEMENT:
Under
the Scheme of Amalgamation with M/s. Prestige Housewares India Limited (PHIL)
sanctioned by the Honourable Madras High Court at Madras during the year under
report your Company allotted 20106 equity shares of Rs.10/- each to the
shareholders of PHIL. The appointed date of the Scheme being 1.4.2011, the
previous year figures have been suitably adjusted in the Annual Report.
During
November 2012 the Board of Directors of the company approved a Scheme of
Arrangement (Demerger) whereby the Kitchen Appliances Division of M/s Triveni
Bialetti Industries Private Limited (TBI), (a subsidiary of M/s. Bialetti
Industries SpA, Italy) with all its assets, rights, liabilities, obligations,
benefits under tax laws etc., will be vested in the Company, the Appointed Date
being 1st April 2012. The Scheme has been approved by the Stock
exchange but further approvals are required including those of shareholders and
Bombay and Madras High Courts. On Final sanction of the scheme by the High
court, books of accounts will be updated in accordance with the applicable
practice.
TBI,
which has its manufacturing base in Maharashtra, is contract manufacturing
certain products for the company.
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
(Rs. in Millions) |
||
|
Guarantee / LC |
742.418 |
320.360 |
370.189 |
|
Tax Matters Under Appeal (IT/ST/ED etc) |
68.662 |
66.852 |
77.300 |
STATEMENT OF
UN-AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE 2013
(RS. IN MILLIONS)
|
PARTICULARS |
Quarter ended 30.06.2013 Unaudited |
|
|
|
|
Sales / Income from
Operations |
3134.800 |
|
Less:
Excise duty |
71.500 |
|
a) Net Sales / Income from
operations (Net of excise duty) |
3063.300 |
|
b)
Other Operating Income |
0.000 |
|
Total
Income from Operations (net) |
3063.300 |
|
|
|
|
EXPENSES |
|
|
a)
Cost of Materials consumed |
1052.800 |
|
b)
Purchase of stock-in-Trade |
795.100 |
|
c)
Changes in Inventories of Finished Goods, Work in Progress and Stock-in-Trade |
(61.800) |
|
d)
Employee benefits expense |
221.000 |
|
e)
Depreciation and amortisation expense |
24.000 |
|
f)
Other expenses |
642.500 |
|
Total
Expenses |
2673.600 |
|
|
|
|
Profit
from ordinary activities before other Income, Finance costs & exceptional
items(1-2) |
389.700 |
|
Other
Income |
17.300 |
|
Profit
from ordinary activities before finance costs and exceptional items(3+4) |
407.000 |
|
Finance
Costs |
30.700 |
|
Profit
from ordinary activities after finance costs but before exceptional items
(5-6) |
376.300 |
|
Exceptional
items |
0.000 |
|
Profit
(+) / Loss (-) from ordinary activities before tax (7-8) |
376.300 |
|
Tax
Expense |
|
|
-
Current Tax |
110.400 |
|
-
Deferred Tax |
8.000 |
|
|
|
|
Net
Profit (+) / Loss (-) from ordinary activities after tax (9-10) |
257.900 |
|
Extra-ordinary
items (Net of tax expense) |
0.000 |
|
Net
Profit (+) / Loss (-) for the period (11+12) |
257.900 |
|
Paid
up Equity Share Capital (face value Rs.10/-) |
113.400 |
|
Reserves
excluding Revaluation Reserves as per Balance Sheet of previous account year |
-- |
|
Earnings
Per Share - Rs. Ps. |
|
|
a)
Basic and Diluted EPS before Extraordinary items for the period, for the year
to date and for the previous year (Not to be annualised) |
22.74 |
|
|
|
|
b)
Basic and Diluted EPS after Extraordinary items for the period, for the year
to date and for the previous year (Not to be annualised) |
22.74 |
|
|
|
|
PART
II |
|
|
PARTICULARS
OF SHAREHOLDING |
|
|
Public Shareholding |
|
|
-
Number of Shares |
3189919 |
|
-
Percentage of shareholding |
28.13% |
|
|
|
|
Promoters and Promoters
Group shareholding |
|
|
(a) Pledged / Encumbered |
|
|
-
Number of Shares |
Nil |
|
-
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
Nil |
|
-
Percentage of Shares (as a % of the total share capital of the company) |
Nil |
|
|
|
|
(b) Non-encumbered |
|
|
-
Number of Shares |
8151271 |
|
-
Percentage of Shares (as a % of the total shareholding of promoter and
promoter group) |
100% |
|
-
Percentage of Shares (as a % of the total share capital of the company) |
71.87% |
|
|
|
|
Particulars |
Quarter Ended 30.06.2013 |
|
INVESTOR
COMPLAINTS |
|
|
Pending
at the beginning of the quarter |
0 |
|
Received
during the quarter |
19 |
|
Disposed
of during the quarter |
19 |
|
Remaining
unresolved at the end of the quarter |
0 |
SEGMENT
WISE REVENUE RESULTS AND CAPITAL EMPLOYED
(RS.
IN MILLIONS)
|
Particulars |
Quarter Ended 30.06.2013 Un-audited |
|
Segment Revenue |
|
|
Kitchen Appliances |
|
|
Gross
Sales |
3134.800 |
|
Less:
Excise Duty |
71.500 |
|
Net Sales / Income
from Operations |
3063.300 |
|
|
|
|
Property
& Investment |
2.700 |
|
Less:
Inter-Segment Revenue |
(2.700) |
|
Net Sales / Income
from Operations |
3063.300 |
|
|
|
|
SEGMENT
RESULTS |
|
|
Kitchen
Appliances |
404.600 |
|
Property
& Investment |
2.400 |
|
Total |
407.000 |
|
|
|
|
Less:
Interest Expenses |
30.700 |
|
Less:
Unallocable Expenses (Net of Unallocable Income) |
0.000 |
|
Total
Profit (+) / Loss(-) from ordinary activities before tax and exceptional
items |
376.300 |
|
Less:
Exceptional items - VRS Compensation |
0.000 |
|
Total
Profit (+) / Loss(-) from ordinary activities before tax and after
exceptional items |
376.300 |
|
Extra-ordinary
items |
0.000 |
|
Total
Profit (+) / Loss(-) from ordinary activities before fax and after
extraordinary items |
376.300 |
|
|
|
|
CAPITAL
EMPLOYED |
|
|
(Segment
Assets - Segment Liabilities) |
|
|
Kitchen
Appliances |
5365.900 |
|
Property
& Investment |
269.700 |
|
Total
Capital Employed in Segments |
5635.600 |
|
Add:
Unallocable Corporate Assets Less Unallocable Corporate Liabilities |
0.000 |
|
Total
Capital Employed in the Company |
5635.600 |
NOTES:
·
The above results have been reviewed by the Audit Committee
of the Board and were approved by the Board of Directors at its meeting held on
July 15, 2013.
·
The Company operates in two segments namely, a) Kitchen
appliances, b) Property and investment.
·
The segments have been identified in line with the Accounting
Standard on Segment Reporting (AS 17) considering the organisation structure
and the differential risk and returns of these segments.
·
The investors can visit the company's website www.ttkprestige.com
for updated information.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10336405 |
31/12/2011 |
350,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B32489197 |
|
2 |
10295807 |
27/06/2011 |
700,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK HOUSE SENAPATI
BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B16415929 |
|
3 |
10173018 |
15/11/2011 * |
1,000,000,000.00 |
CANARA BANK |
PRIME CORPORTE
BRANCH, SHANKARNARAYANA BLDG., NO. |
B26365205 |
|
4 |
10135033 |
05/12/2008 |
556,000,000.00 |
CANARA BANK |
PRIME CORPORATE
BRANCH, SHANKARANARAYANA BUILDING, 25,M.G.ROAD, BANGALORE, KARNATAKA -
560001, INDIA |
A53490926 |
|
5 |
10071379 |
12/11/2011 * |
1,000,000,000.00 |
CANARA BANK |
PRIME CORPORTE
BRANCH, SHANKARNARAYANA BLDG., NO. |
B26364547 |
|
6 |
10019932 |
05/09/2006 |
590,000,000.00 |
BANK OF BARODA |
CORPORATE FINANCIAL
SERVICES BRANCH, RICHMOND ROAD, BANGALORE, KARNATAKA - 560025, INDIA |
A04899811 |
|
7 |
80038866 |
22/11/2007 * |
829,000,000.00 |
BANK OF BARODA
(LEADER BANK) |
CORPORATE
FINANCIAL SERVICES BRANCH, RICHMOND ROAD, BANGALORE, KARNATAKA - 560025, INDIA |
A26870352 |
* Date of charge modification
FIXED ASSETS:
·
Land
·
·
Buildings
·
Plant and Machinery
·
Electrical Installations
·
Tools, Moulds and Dies
·
Furniture Fixtures and
Fittings
·
Office Equipments
·
Vehicles
·
ERP Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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.64.23 |
|
|
1 |
Rs.100.01 |
|
Euro |
1 |
Rs.85.93 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
69 |
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.