MIRA INFORM REPORT

 

 

Report Date :

18.01.2013

 

IDENTIFICATION DETAILS

 

Name :

REDINGTON (INDIA) LIMITED

 

 

Registered Office :

SPL Guindy House, 95, Mount Road, Guindy, Chennai – 600 032, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

02.05.1961

 

 

Com. Reg. No.:

18-028758

 

 

Capital Investment / Paid-up Capital :

Rs.797.156 Millions

 

 

CIN No.:

[Company Identification No.]

L52599TN1961PLC028758

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CHER00540B

 

 

PAN No.:

[Permanent Account No.]

AABCR0347P

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Trading, Importing and Distributing of Computers, Computer Peripherals, Printers, Plotters and Spares including after sales service.

 

 

No. of Employees :

1315 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (66)

 

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 36000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exists

 

 

Comments :

Subject is a well – established and a reputed company having fine track. Financial position of the company appears to be sound. Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

 

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CRISIL

Rating

A1+ (Letter of Credit)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

23 July, 2012

 

 

Rating Agency Name

CRISIL

Rating

A1+ (Short Term Loan)

Rating Explanation

Very strong degree of safety and lowest credit risk.

Date

23 July, 2012

 

 

 

Rating Agency Name

CRISIL

Rating

AA- (Cash Credit)

Rating Explanation

High degree of safety and very low credit risk

Date

23 July, 2012

 

 

Rating Agency Name

CRISIL

Rating

AA- (Working Capital Demand Loan)

Rating Explanation

High degree of safety and very low credit risk

Date

23 July, 2012

 

 

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 :

SPL Guindy House, 95, Mount Road, Guindy, Chennai – 600032, Tamilnadu, India

Tel. No.:

91-44-22353313/ 14/ 15/ 16/ 17/ 18/ 42243281/ 42243499/ 42243353/ 42243352

Fax No.:

91-44-22352790/ 22253799

E-Mail :

info@redingtonindia.com

sureshkumar.k@redington.co.in

vijaykumar.np@redington.co.in

investors@redington.co.in

mmkumar@redington.co.in

Website :

www.redingtonindia.com

 

 

Corporate Office :

Ground Floor, "Centre Point", Plot No.8 and 11 (SP), Thiru-Vi-Ka Industrial Estate, Ekkaduthangal, Guindy, Chennai – 600032, Tamilnadu, India

Tel. No.:

91-44-42243353

Fax No.:

91-44-42243148

E-Mail :

investors@redington.co.in

 

 

Sales and Service Centers:

Located at :

 

·       Chennai

·       Bangalore

·       Hyderabad

·       Trivandrum

·       Coimbatore

·       Visakhapatnam

·       Cochin

·       Madurai

·       Hubli

·       Calicut

·       Hyderabad

 

 

Branch Office :

Located At :

 

·       Chandigarh

·       Uttar Pradesh

·       Punjab

·       Rajasthan

·       Uttaranchal

·       Orissa

·       Bihar

·       Guwahati

·       Gujarat

·       Karnataka

·       Goa

·       Mumbai

·       Pune

·       Gujarat

·       Tamilnadu

 

 

DIRECTORS

 

AS ON 31.03.2012

 

Name :

Professor J. Ramachandran

Designation :

Chairman         

 

 

Name :

Mr. R. Shrinivasan

Designation :

Managing Director

 

           

Name :

Mr. Raj Shankar

Designation :

Deputy Managing Director          

 

 

Name :

Mr. M. Raghunandan

Designation :

Whole Time Director      

 

 

Name :

Mr. R. Jayachandran

Designation :

Director

 

 

Name :

Mr. Tu Shu-Chyuan

Designation :

Director

 

           

Name :

Mr. Lin Tai Yang

Designation :

Director

 

 

Name :

Mr. Nainesh Jaisingh

Designation :

Director

 

 

Name :

Mr. William Adamopoulos

Designation :

Director

 

 

Name :

Mr. N. Srinivasan

Designation :

Director

 

KEY EXECUTIVES

 

Name :

Mr. M. Muthukumarasamy         

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2012

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 --

-- 

(2) Foreign

 

 

Bodies Corporate

84027302

21.06

Sub Total

84027302

21.06

 

 

 

Total shareholding of Promoter and Promoter Group (A)

84027302

21.06

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

33509346

8.40

Foreign Institutional Investors

151832899

38.05

Sub Total

185342245

46.44

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

16178542

4.05

 

 

 

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

6793346

1.70

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

1035043

0.26

Any Others (Specify)

105697342

26.49

Clearing Members

271304

0.07

Directors & their Relatives & Friends

1234015

0.31

Foreign Corporate Bodies

102245940

25.62

Hindu Undivided Families

406562

0.10

Non Resident Indians

1383160

0.35

Trusts

4111

0.00

Foreign Nationals

152250

0.04

Sub Total

129704273

32.50

 

 

 

Total Public shareholding (B)

315046518

78.94

 

 

 

Total (A)+(B)

399073820

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

 

 

 

Total (A)+(B)+(C)

399073820

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Trading, Importing and Distributing of Computers, Computer Peripherals, Printers, Plotters and Spares including after sales service.

 

 

Products :

Products Description

 

ITC Code No.:

Printers

847160

Computers

847130

Spares

854219

Software

852499

 

 

GENERAL INFORMATION

 

No. of Employees :

1315 (Approximately)

 

 

Bankers :

Bankers – India

 

·         ANZ Banking Group Limited

·         Bank of Nova Scotia

·         Barclays Bank PLC

·         BNP Paribas

·         DBS Bank Limited

·         Deutsche Bank AG

·         First Rand Bank

·         HDFC Bank Limited

·         IDBI Bank Limited

·         ICICI Bank Limited

·         HSBC

·         IndusInd Bank Limited

·         ING Vysya Bank Limited

·         Kotak Mahindra Bank Limited

·         Standard Chartered Bank

·         State Bank of India

·         The Royal Bank of Scotland

·         Yes Bank Limited

 

Bankers – Overseas

 

·         Axis Bank, Dubai

·         Bank of Baroda, Dubai

·         Barclays Bank, Dubai

·         BNP Paribas, Dubai

·         BNP Paribas, Singapore

·         Dubai Islamic Bank, Dubai

·         Emirates Bank, Dubai

·         First Gulf Bank, Dubai

·         Hongkong and Shanghai Banking Corporation Limited, Dubai

·         Hongkong and Shanghai Banking Corporation Limited, Singapore

·         ICICI Bank, Bahrain

·         Mashreq Bank, Dubai

·         National Bank of Fujairah, Dubai

·         Standard Chartered Bank, Dubai

·         Standard Chartered Bank, Singapore

·         State Bank of India, Bahrain

·         May Bank, Singapore

·         UCO Bank, Singapore

·         First Gulf Bank, Dubai

·         OCBC Bank, Singapore

 

 

Facilities :

Secured Loan

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

From Banks

 

 

-          Repayable on Demand

2170.006

0.000

-          Others

2228.693

3387.721

Secured – Term Loan From Banks

0.000

187.500

 

 

 

Total

 

4398.699

3575.221

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2012

Rs. In Millions

31.03.2011

Loan From Banks

 

 

-          Repayable on Demand

15.786

0.000

-          Others

1792.665

1575.063

 

 

 

Total

 

1808.451

1575.063

 

NOTES:

 

a.       Loans from Banks are secured by pari-passu charge on fixed assets, Inventory and trade receivable.

 

b.       The Company placed Commercial Paper during the year, there are no amounts outstanding as at March 31, 2012 and the maximum amount outstanding any time during the year was Rs. 2900.000 Millions (Previous year Rs. 2750.000 Millions)

 

 

 

 

Banking Relations :

--

 

 

 

 

Auditors :

 

 

Statutory Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountants

Address:

2nd Floor, “Temple Tower, 672, Anna Salai, Nandanam, Chennai – 600035, Tamilnadu, India

Tel. No.:

91-44-52131124-28

Fax No.:

91-44-52131129

 

 

Internal Auditors:

 

Name :

Price Waterhouse Coopers

Chartered Accountant

 

 

 

Party where control exists :

·         Redington Employee Share Purchase Trust

 

 

 

 

Parties having Significant Influence:

·         Redington (Mauritius) Limited, Mauritius

·         Synnex Mauritius Limited, Mauritius

 

 

 

 

Subsidiaries :

·         Nook Micro Distribution Limited, India

·         Cadensworth (India) Limited, India

·         Easyaccess Financial Services Limited, India

·         Redington International Mauritius Limited, Mauritius

·         Redington International (Holdings) Limited, Cayman Islands

·         Redington Gulf FZE, Dubai

·         Cadensworth FZE, Dubai

·         Redington Gulf and Company LLC, Oman

·         Redington Nigeria Limited, Nigeria

·         Redington Egypt Limited, Egypt

·         Redington Kenya Limited, Kenya

·         Redington Middle East LLC, Dubai

·         Redington Qatar WLL, Qatar

·         Redington Arabia Limited, Saudi Arabia

·         Redington Africa Distribution FZE. Dubai

·         Redington Bahrain SPC, Bahrain

·         Redington Distribution Pte Limited, Singapore

·         Redington Bangladesh Limited, Bangladesh

·         Redington Qatar Distribution WLL, Qatar

·         Redington Kenya (EPZ) Limited, Kenya

·         Redington Limited, Ghana

·         Redington Uganda Limited, Uganda

·         Africa Joint Technical Services, Libya

·         RGF Private Trust Company Limited, Cayman Islands

·         Redington Gulf FZE Co, Iran

·         Cadensworth United Arab Emirates LLC, Dubai

·         Redington Morocco Limited, Morocco

·         Redington Tanzania Limited, Tanzania

·         Redington SL Private Limited, Sri lanka

·         Redington Angola ADA, Angola

·         Redington Turkey Holdings S.A.R.L

·         Arena Bilgisayar Sanayi Ve Ticaret Anonim Sirketi, Turkey

·         Arena International FZE, Dubai

·         Redington IT Services (PTY) Limited, South Africa

 

 

 

 

Associates :

·         Redington (India) Investments Limited, India

·         Currents Technology Retail (India) Limited, India

 

 

 

CAPITAL STRUCTURE

 

AS ON 31.07.2012

 

Authorised Capital : Rs.850.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.798.148 Millions

 

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

425000000

Equity Shares

Rs.2/- each

Rs.850.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

398578195

Equity Shares

Rs.2/- each

Rs.797.156 Millions

 

 

 

 

 

Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

 

 

31.03.2012

 

 

No. of Shares

 

Rs. In Millions

At the beginning of the year

396,330,055

792.660

Allotted during the year under – ESOP, 2008

2,248,140

4.496

Outstanding at the end of the year

398,578,195

797.156

 

 

Terms/rights attached to equity shares

 

Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. For the year ended March 31, 2012 a dividend of Rs. 0.40 per equity share has been proposed by the Board of Directors (Previous year Rs. 1.10 per share). The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting.

 

 

Shares held by shareholders holding more than 5 %

 

 

31.03.2012

 

 

No. of Shares

 

% of Share Holding

Redington (Mauritius) Limited

84,027,302

21.08

Synnex (Mauritius) Limited

94,295,940

23.66

Standard Chartered Private Equity (Mauritius) Limited

47,686,500

11.96

T Rowe Price International

--

--

 

 

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

797.156

792.660

786.360

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8292.578

6847.980

5973.415

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

9089.734

7640.640

6759.775

LOAN FUNDS

 

 

 

1] Secured Loans

4398.699

3575.221

3095.549

2] Unsecured Loans

1808.451

1575.063

659.680

TOTAL BORROWING

6207.150

5150.284

3755.229

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

15296.884

12790.924

10515.004

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

721.511

660.421

670.730

Capital work-in-progress

86.793

14.015

13.137

 

 

 

 

INVESTMENT

5904.289

4630.009

4590.509

DEFERREX TAX ASSETS

50.685

40.485

24.976

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
8169.938
7174.307
4224.121

 

Sundry Debtors
8341.746
8542.680
6785.545

 

Cash & Bank Balances
618.183
1501.967
199.637

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
2522.670
1285.119
770.200

Total Current Assets
19652.537

18504.073

11979.503

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
9643.911

9165.819

 

 

Other Current Liabilities
1214.877
1324.481
6254.090

 

Provisions
260.143
567.779
509.761

Total Current Liabilities
11118.931

11058.079

6763.851

Net Current Assets
8533.606
7445.994
5215.652

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

15296.884

12790.924

10515.004

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Revenue for Operations

98404.052

81319.494

64496.142

 

 

Other Income

310.751

128.930

99.482

 

 

TOTAL                                     (A)

98714.803

81448.424

64595.624

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of trading Stocks

93804.580

79748.445

60852.606

 

 

Employees Benefits

975.327

831.037

793.919

 

 

Other Expense

1718.087

1319.936

680.289

 

 

Trading Expenses

0.000

0.000

195.493

 

 

Managerial Remuneration

0.000

0.000

3.906

 

 

Auditor’s remuneration

0.000

0.000

4.860

 

 

Bad Debts Written off and Provision for doubtful debts

0.000

0.000

48.545

 

 

Changes in Inventories and trading stock

(995.631)

(2950.186)

0.000

 

 

TOTAL                                     (B)

95502.363

78949.232

62579.618

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

3212.440

2499.192

2016.006

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

774.043

430.528

330.378

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

2438.397

2068.664

1685.628

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

105.476

134.700

154.050

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

2332.921

1933.964

1531.578

 

 

 

 

 

Less

TAX                                                                  (H)

764.800

649.560

537.017

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

1568.121

1284.404

994.561

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Dividend including dividend distribution tax relating to previous year

NA

NA

2.828

 

 

Proposed dividend on equity shares including dividend distribution tax

NA

NA

459.711

 

BALANCE CARRIED TO THE B/S

NA

NA

532.022

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Supplier Rebates and Discounts

1593.298

1198.615

NA

 

 

Dividend Income

19.127

14.015

NA

 

 

FOB Value of Exports

67.452

24.846

NA

 

TOTAL EARNINGS

1679.877

1237.476

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Trading Stocks

35549.037

29220.963

NA

 

TOTAL IMPORTS

35549.037

29220.963

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.94

3.25

2.54

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2012

 

30.09.2012

 

1st Quarter

2nd Quarter

Net Sales

24413.100

25398.600

Total Expenditure

23711.700

24681.700

PBIDT (Excl OI)

701.400

716.900

Other Income

270.000

42.400

Operating Profit

971.400

759.300

Interest

207.200

204.800

Exceptional Items

0.000

0.000

PBDT

764.200

554.500

Depreciation

25.400

26.000

Profit Before Tax

738.800

528.500

Tax

187.300

173.000

Provisions and contingencies

0.000

0.000

Profit After Tax

551.500

355.500

Extraordinary Items

0.000

0.000

Prior Period Expenses

0.000

0.000

Other Adjustments

0.000

0.000

Net Profit

551.500

355.500

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
1.59

1.58
1.54

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
2.37

2.38
2.37

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
11.42

10.07
12.11

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.26

0.25
0.23

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.91

2.12
1.56

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
1.77

1.67
1.77

 

 

 

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

Yes

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

-----

26]

Buyer visit details

-----

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

-----------------------------------------------------------------------------------------------------------------------------------------

 

CHENNAI COURT

 

CASE STATUS INFORMATION SYSTEMS

 

CASE STATUS:

PENDING

 

 

Status of:

CIVIL SUITS

Case No.:

311

Year:

2005

Petitioner:

M/s Trinity Estate

Respondent

M/s Redington India Limited

Pet’s Advocate:

M. Muthappan

Res’s Advocate:

M/s Rajah and Venkatesan A

Category:

Money Suits

 

 

 

LAST LISTED ON: NO DATE MENTIONED

Case Updated on:

03.08.2012

 

Connected Application(s)

Application Type

 

Application Number

Application Year

a

4763

2008

 

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PERFORMANCE

During the year, on a consolidated basis, the Company has continued to maintain the growth momentum. There has been a good growth in terms of turnover by 26.9%, EBIDTA by 34.3% and PAT by 29.5% over the previous year. The consolidated revenue of the Company was Rs. 212220.000 Millions as against Rs. 167227.000 Millions in the previous year with a CAGR of 19.1% for five years. The consolidated net profit for the year was Rs. 2927.000 Millions as against Rs. 2260.000 Millions in the previous year with a CAGR of 21.1% for five years.

The Standalone revenue of the Company was Rs. 98715.000 Millions as against Rs. 81448.000 Millions in the previous year (Year-on-Year growth 21.2%) and the profit after tax was Rs. 1568.000 Millions as against Rs. 1284.000 Millions in the previous year (Year-on-Year growth 22.1%). The Earnings per Share (EPS) on a consolidated basis (based on weighted average number of shares) increased to Rs. 7.4 in the year as compared to Rs. 5.7 in the previous year. EPS on a standalone basis (based on weighted average number of shares) increased to Rs. 3.9 in the year as compared to Rs. 3.2 in the previous year.

DISTRIBUTION BUSINESS

INFORMATION TECHNOLOGY PRODUCTS

As anticipated towards the end of FY 2010-11 and projected by various Economic forums, the Information Technology (IT) industry in India grew quite well during the first half of the year. On the back of strong investments by Government and large corporates in the infrastructure and Enterprise space, the IT distribution business of the Company posted significant growth during the first two quarters.

The sudden and rapid downtrend in the country's and Global business environment during the second half of FY 11-12 threw up challenges, with contraction in demand from Government and Large Enterprises. Continued high interest rates, a dramatic weakening of the rupee and a general overhang of negative sentiments borne out of lack of policy initiatives and decision making by the Government slowed down the demand for IT products. The deepening of the economic crisis in Europe also cast its shadow on India's economic metrics during the second half of the year.

The branded PC market remained under pressure from loss of traction in Government and Large Enterprise space. The assembled / unbranded PC segment, which services a large part of Tier-3 and Tier-4 cities demand, came under severe supply constraints starting October '11. Due to the unprecedented floods in Thailand, which wiped away almost 50% of the world's Hard Disk Drive (HDD) manufacturing capacity, the availability of HDDs reduced to about 35% of the total estimated demand for the period. The supply of assembled PCs, which constitute about 25% of the total Desktop and Notebook demand in the country, suffered a huge setback. This had a knock-on effect on the demand for CPUs, Mother Boards and Memories, further impacting the overall revenue of the Company. As a result, the overall PC market growth during FY 11-12 is estimated to have been 9-10% as against the projected growth of 13-15%.

The Company continued to augment its products and solutions by offering to its business partners by adding niche vendors such as Molex, Smart Technologies and ADC India Communications. This would strengthen the Company's positioning as a one-stop-solution for its partners for all their requirements.

As briefly mentioned in their last report to the shareholders, Virtualization and Cloud Computing is expected to bring in a paradigm shift in the way IT assets are procured and deployed by both large organizations as well as Small and Medium Enterprises. While in India the change appears to be gradual the Company proactively engaged with vendors to take initial steps in this field with the objective of being ready with appropriate offerings when the change materializes.

The Company's new partnerships with VMWare, Nivio Technologies and Microsoft in the Virtualization and Cloud Computing space would form the foundation for building a strong portfolio in this space. Its engagement with traditional vendors like IBM, Cisco, HP, Hitachi and Oracle enables the Company to build on a portfolio that will facilitate distribution of specific solutions to partners in areas of SaaS (Software as a Service), PaaS (Platform as a Service) and IaaS (Infrastructure as a Service), to address the Cloud computing requirements of Large, Medium and Small enterprises.

CONSUMER AND LIFESTYLE PRODUCTS

The distribution of Digital Life Style products by the Company continued to have another strong performance in the last fiscal year. This vertical has shown a 50% revenue growth over the previous fiscal year.

The Company is playing a significant role in India's Smartphone revolution. The Smartphone segment is expected to grow at a Compounded Annual Growth Rate (CAGR) of over 50% over the next five years. The Company maintains a strong position in this space with its strong relationship with Research in Motion for their BlackBerry Smartphones. Although Research in Motion had a setback at the global level, the Company continues to be a key player in the Indian market. The Company has also increased its presence in the Smartphone space, with its tie-up with Huawei.

The Company is focused on capitalizing the growth of smart communication devices in India. In the coming fiscal year the Company will look to partner with one or more device manufacturers and also with manufacturers of complementary products.

The Company has positioned itself to be one of Apple's most preferred partners in India. Apple's iPad continues to show momentum and is the leader in the tablet segment inspite of a slew of competitors introducing lower cost alternatives.

The Company has taken significant strides in the fast growing Digital Printing space in the past fiscal year. The sizeable increase in the installed base of HP "Indigo" machines in India has not only contributed to revenue growth, but has also ensured significant growth in the annuity income on usage of consumables.

HARDWARE SUPPORT SERVICES

The IT and Telecom industry continues to witness increased intelligence and complexity in new generation products. And in India, the industry is now penetrating the small towns and villages very rapidly. Taken together, these factors have made pan-India after sales service vital, not just for the success of new product launches, but also for the sustenance of growth of brands in the Indian market.

In anticipation, the Company has set up hardware support service centres, spanning the length and breadth of India. Today, through 70 owned service centres, supported by a certified franchisee network of 220 service partners, the Company provides the full spectrum of warranty and post-warranty services to the customers of their  product vendors -covering Solution design and Consulting, Call Center support, Field Engineering support, Parts warehousing, Forward and Reverse logistics, Imports and Re-exports, and Asset recovery . All these centres run on a robust CRM that enable the Company to tightly manage the end-to-end service life cycle and create a great customer experience. This is one of the key differentiators of the Company in the Supply Chain industry, and a growth enabler for their vendors.

The Company's support service is ISO 9001:2008 certified and is in the process of being certified for ISO 20000 compliance. In IT support, more than 100,000 customers avail services from the Company starting from Desktop PCs to Enterprise systems. The Company has successfully launched and started providing Remote Infrastructure Management services to some large corporate customers. In the Telecom space, the Company strengthened its Smartphone support portfolio by garnering national support authorization from HTC for their Smartphones.

During the period, the Company has expanded the Enterprise support portfolio through new vendor engagements. Brocade has appointed the Company as SDP (Service Delivery Partner) and PSP (Professional Services Partner), authorizing them to provide installation and support services for their IP Networking products. Cisco has appointed the Company as Video Value Added Distributor after successfully meeting all Cisco service authorization requirements. The Company has also been appointed as ISP (Independent Service Provider) by Hitachi Data Systems for rendering professional and support services for their entire range of Storage products.

SUPPLY CHAIN MANAGEMENT SERVICES

Supply Chain Management forms a basic and integral part of the Company's business offerings to vendors and Channel Partners. The Company has end-to-end logistics capabilities starting from import, warehousing, stock movement across the geography, packing / repacking, order processing and delivery to any part within the geographies it operates. The Company can reach its products to customers in more than 1500 cities in less than 48 hours.

To solidify the brand value of the Company's supply chain services, the Company offers Third Party Logistics (3PL) services ranging from imports management, warehousing till last mile transportation and Reverse logistics services. The Company's 3PL services has got a diversified client base of various industries including IT, Telecom, Mobiles, Home appliances, FMCG, White Goods etc. The Company understands the varied requirements of different clients and has successfully offered its services to several new customers like BSH Home Appliance Limited, Carl Zeiss, Nachus Electronics, Cafe Coffee Day, Growmore, DSV Air and Sea Private Limited for Le Creuset and Celestial Tech Vates Ltd etc during the year.

As globally the online sales model is catching-up, each of these vendors are keen to tie-up with a logistics partner for backend support that are similar to what the Company is already into. This emerging and fast growing concept is going to open a window of opportunities for 3PL service providers like them and pave the way for increase and sustainable profitability in the years to come.

Understanding the value of an organized supply chain sector, the Company is improving its warehousing and logistics capability in terms of infrastructure, software availability and multi locational offerings. In order to cater to the expanding market and to reach the products on time to the clients, during the year, the Company added warehouses in strategic locations thereby increasing the total warehouses to 70 with close to 1 Million Sq .ft.

The Reverse Logistics Center of the Company has a proven record of more than 10,000 satisfied customers in its fold and its services are well received and appreciated by major brands including HP, Wipro, Acer, Intel, etc

SUBSIDIARY COMPANIES

During the year the Company had made additional investments and strategic changes in the business operations of the subsidiary companies facilitating more significant contribution from them in the years to come to the consolidated revenue stream of the Company.

They broadly describe the subsidiary operations as follows:

INDIAN SUBSIDIARIES

Easyaccess Financial Services Limited (Easyaccess) the wholly owned subsidiary and the Non-Banking Finance Company (NBFC) arm of the Company is India's first NBFC to cater to the IT distribution industry's channel finance needs. Easyaccess offers working capital facility with an operating cycle of 90 to 120 days. It provides extended finance to the channel partners for them to not only carry on their trade, but also to grow their business while ensuring better margins for the Company at the same time. Over the years, Easyaccess channel financing to the IT eco-system has gained significant traction bringing considerable financial discipline amongst the channel partners.

With an Independent professional team, Easyaccess pursues financing the third-party corporates. While venturing into this business has reduced Easyaccess's dependence on Redington / Redington's customers, it also offers an attractive interest spread. Easyaccess has run quite successfully its first four years of operation without any non-performing assets, which is a commendable achievement.

Cadensworth (India) Limited (Cadensworth), engaged in the business of Support Services has shown significant improvement in its performance during the financial year. The support services business for critical parts being provided on behalf of M/s. Flash Global Logistics for their clients in India has done fairly well with addition of new customers. The repair service business for Pegatron too has added to the revenue growth. Cadensworth has passed the Quality Management System Standard during the ISO Audit in January 2012 and the validity of ISO 9001: 2008 Certification has been extended till 18th January 2015. The LCD Panel repair opportunity seems very promising for the coming years.

During this year, Cadensworth also made a beginning in Value Added Distribution Services. Cadensworth began its journey in the distribution business with a strategic relationship with EMC and will focus on taking to market newer and higher-value technologies such as data centers, virtualization, secure networking and support services. Value added distribution services will involve developing and supporting specialist partners who reach and service complex IT projects.

Nook Micro Distribution Limited (Nook Micro) - During FY 12, Nook Micro had its full year of operation post embarking on its journey with low cost micro distribution last year. It added over 1500 Channel Partners in 175 towns across 96 districts all over South India. Nook Micro is positioned to be the preferred intermediary to address the last mile connect amongst national distributors, vendors, retailers and assemblers. To strengthen the financial position of Nook Micro, the Company has made an additional investment of Rs. 60.000 Millions in its equity.

More vendors and distributors are looking forward to tie up with Nook Micro to get in depth coverage of the market for their products. Nook Micro has also started managing the distribution of Consumer Electronics products in South India from April 2012. This will enable the Company to maximize the revenue by utilizing the existing infrastructure and micro distribution strategy. By adding consumer electronics products, the Company is expected to add up another 1500 channel partners in South India.

OVERSEAS SUBSIDIARIES

The Company's overseas subsidiaries grew both revenues and profitability impressively by 30% across each of the markets it participated including Singapore and South Asia, Middle East, Turkey and Africa. Fortunately, the general economic slowdown and geo political tensions in the Middle East and North Africa (MENA) region did not slow down the pace of growth.

Redington Gulf has retained its leadership position by being rated as the number one distributor in ME for 6 years in succession. Redington Gulf continues to enrich its brand portfolio and foster growth by adding new brands in the Volume and Value added distribution portfolio. The new brands added during the year to its portfolio include Seagate, Microsoft, LG, Tripplite, Lifesize, EMC, Siemens, Barracuda Networks, Belkin and Targus.

The hardware support service of the Company's overseas subsidiary is well positioned as a neutral service provider. The total number of service centers in MEA has increased to 49 making Redington Gulf the biggest service provider in MEA with the widest network. The scope of support services have been extended to mobile devices and consumer electronics in addition to IT hardware products.

The Company's overseas subsidiaries' 29 warehouses were linked to a central warehouse admeasuring about 95,000 square feet in Jebel Ali, Dubai. The Automatic Distribution Centre in Jebel Ali has incorporated a superior technology allowing it to enhance the efficiencies and productivity.

Redington Gulf has once again retained the EMEA Channel Academy 2012 awards - the "MENA Preferred Distributor Award" for delivering excellent services to its partners. Redington was also awarded as the "Retail Volume Distributor of the Year" for the 6th consecutive year.

Though the countries affected in the Arab spring are slowly recovering, the ongoing political tensions in the region and in the surrounding countries has a hangover effect on the general business environment. During the year, the 19% depreciation of Turkish Lira against USD has resulted in lower consumption and a detrimental impact on sales and profits of Arena, the listed Company in Turkey in which the Company had invested 49.4% in November 2010.

MANAGEMENT DISCUSSION AND ANALYSIS
 
GLOBAL OUTLOOK
 
The  global  economic  outlook continues to be  extremely  challenging  and volatile  and  is  expected  to remain so  in  the  immediate  future.  The  economies  of  most  developed countries are passing  through  a  stressful period  with their governments trying to tackle recession, counter  growing unemployment,  and  control the levels of high sovereign  debt.  While  the American  economy  shows  definite signs of stability  and  improvement  in industrial  output and employment figures during successive  quarters,  the sovereign  debt and unemployment problems emerging in many  European  Union nations seriously impact the stability of the Global Economy. With growth  limited mostly to emerging nations, many  economists  predict that  this  may  not be sufficient to counter the economic  crisis  of  the developed  countries.  With more and more countries being forced  to  adopt severe  austerity measures to bring their economies back on track,  overall revival  of demand for products and services is likely to take  far  longer than anticipated earlier.
 
INDIAN OUTLOOK
 
For most observers of the Indian Economy, the Indian problem is home-grown, rather than caused by external impacts. While exports to developed  nations would  be a concern and global oil prices - the single largest import  bill for the Government of India - continue to increase, the bottom-line is that the  country failed to build on its growth momentum of the last decade  and stimulate and encourage local industries and services.
 
Lack  of  decision making in a key areas of economic-policy  has  prevented businesses from taking full advantage of domestic demand which has remained latent,  as  well as inhibited international investors from  reposing  full faith  in  the Indian economy. As per a recent report in The  Economist,  a financial magazine, India`s national growth accelerated from an average  of about  6% in the late 1980s to as much as 9%+ during the closing stages  of the  last decade. Sound policy decisions and reforms follow-ups, essential for maintaining growth momentum, have not been forthcoming. India`s  growth rate has steadily declined each quarter of the last fiscal year to a low of 6.1%  during  Q4.  Even  if the policy  makers  finally  start  instituting necessary growth initiatives, it is unlikely that the overall growth  would exceed 6.5% - 7% in the immediate foreseeable future.
 
CRISIL Research has lowered India`s GDP growth forecast for 2012-13 to 6.5% from its March 2012 estimate of 7.0%. The forecast has been scaled down  in view  of  rising  downside  risks from recession  in  the  Eurozone,  muted domestic  investment demand, a domestic policy logjam, and  limited  fiscal and monetary options for stimulating the economy. The growth performance in 2011-12  is  India`s worst in the past nine years and a repeat of  that  in 2012-13 will make any meaningful recovery that much more difficult.
 
According  to ICRA, India`s economic growth is expected to remain  moderate in  2012-13  unless  substantial policy measures are  undertaken  to  boost investment sentiments. The Associated Chambers of Commerce and Industry  of India  (ASSOCHAM), in reaction to the Economic Survey 2011-12 has  observed that  India  needs  immediate financial and  structural  reforms  to  boost falling  business  confidence  and growth momentum. A survey  of  CEOs  of leading Indian business establishments reveals that their confidence  level today is at its lowest in many years.
 
 
NATURE OF BUSINESS
 
The Company is a Supply Chain Solutions provider in emerging markets and makes value offerings in all segments of the business line. As  a  group, Redington  is  present  in India, the sub-continent  including  Sri  Lanka, Bangladesh,  Maldives  (operating out of Singapore), Middle  East,  Turkey, Africa, and the CIS countries. Starting as a pure-play IT distributor, the Company has  successfully  distinguished itself from  its  competitors  by transforming  itself into a Supply Chain Solutions Provider  with  tailored offerings for various customer segments.
 
The Company has successfully altered the total value of the Supply Chain offering by being a pioneer in integrating Post-sales Support services and Financial Services as unique components.

 

 

FINANCIAL PERFORMANCE AND POSITION
 
The financials of the Company and its Indian subsidiaries are prepared in accordance  with  Generally Accepted Accounting Principles  in  India.  The consolidated financials of Redington Distribution Pte. Limited is prepared  in 
accordance with  the  Singapore Financial Reporting  Standards  and  other overseas subsidiaries are prepared according to the International Financial Reporting Standards.

 

 

COMPANY OVERVIEW

Subject, is a public limited Company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company's stocks are listed on the bourses of Bombay stock exchange and National stock exchange of India. The Company primarily operates in the distribution business and after sales service of Information Technology and other products. The Company and its subsidiaries operate in India, South Asia, Middle East Africa and Turkey.

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2012

(Rs. in millions)

1. Corporate Guarantees outstanding

 

- On behalf of subsidiaries

5926.938

- Others

0.000

2. Bills Discounted

366.534

3. Factoring

727.250

4. Claims against Company not acknowledged as debts

18.583

 

5. The Company has in addition to the above issued letters of comfort / awareness to banks for the facilities granted to its subsidiaries.

 

6. Disputed Income Tax / Sales Tax / Customs Duty demands

 

Particulars

31.03.2012

(Rs. in millions)

Customs Duty

16.964

Income Tax

79.539

Sales Tax

120.425

 

 

7. Capital Commitments

 

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) is Rs. 257.590 Millions

 

 

UNAUDITED STANDALONS FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2012

 

(Rs. in millions)

 

Particulars

3 MONTHS ENDED JUNE 30, 2012

 

UNAUDITED

Net Sales / Income from operations

24412.100

Other Operating Income

1.000

Total Income

24413.100

 

 

Expenditure

 

(Increase) / Decrease in stock

(549.100)

Purchases

23605.800

Employees costs

243.600

Depreciation

25.400

Other expenditure

411.400

Total

23737.100

 

 

Profit from operations before Other Income, Interest and Tax

676.000

Other income

270.000

Profit before Interest and Tax

946.000

Interest

207.200

Profit before tax

738.800

Tax expense

187.300

Profit after tax and before Minority Interest

551.500

Less:

 

Share of loss of Associate Company

--

Minority/ Non-controlling interest

--

Profit after Tax for the period/ year

551.500

Paid up equity share capital (Face value of Rs.2/- per share)

798.000

Reserves as per Balance Sheet

 

Earning per share – Basic (EPS) (Face Value - Rs.2/- per share) (not to annualised)

1.38

Earning per share – Diluted (EPS) (Face Value - Rs.2/- per share) (not to annualised) 

1.38

 

 

Public shareholding

 

- Number of shares

314963393

- Percentage of shareholding

79

 

 

Promoters and Promoters group Shareholding

 

a) Pledged /Encumbered

NIL

 

 

b) Non  Encumbered

 

- Number of shares

84027302

- Percentage of shares (as a % of total shareholding of the promoter and promoter group)

100

- Percentage of shares (as a % of total share capital of the company)

21

 

 

Particulars

3 MONTHS ENDED JUNE 30, 2012

Pending at the beginning of the quarter

Nil

Received during the quarter

1

Disposed of during the quarter

1

Remaining unresolved at the end of the quarter

Nil

 

NOTES

 

1.                         The Company and its thirty seven subsidiaries (including step down subsidiaries) operate in India, South Asia, Middle East, Turkey and Africa. As the revenue from the overseas operations constitutes more than 10% of the total revenue, geographical segment has been considered as primary segment for consolidated financial results.

 

2.                         The company has invested an amount of  Rs.100.000 Millions during the quarter in the equity capital of its wholly owned Indian subsidiary M/s. Nook Micro Distribution Limited.

 

3.                         During the quarter MIS. Easyaccess Financial Services Limited, a wholly owned subsidiary acquired a modern building admeasuring 2,30,000 sq. ft. of office space located at Chennai, at a cost of Rs. 1240.000 Millions.

 

4.                         Subsequent to the reporting date, shares of Redington Turkey Holdings S.A.R.L held by RIHL have been transferred to Redington Gulf FZE on July 1, 2012 under an arrangement.

 

5.                         Under the Redington Employee Stock Option plan 2008:-

 

i)               Out of 2,335,973 options granted by the Company, 499.439 options lapsed, of which 485.355 options were reissued. 389.496 options were outstanding as on June 30, 2012.

 

ii)              During the quarter 412,500 equity shares of Rs. 2/- each fully paid up were issued and allotted with a total premium of Rs. 9.900 Millions and this includes shares issued to Managing Director and Deputy Managing Director of 125,000 each.

 

iii)            Subsequent to the reporting date, 49,375 Equity Shares of Rs. 2/- each fully paid up were issued and allotted on July 17, 2012 with a total premium of Rs. 1.404 Millions and this includes 31.250 shares issued and allotted to a Non-Exectitiwe Independent Director.

 

6.                         During the Quarter following overseas step down subsidiaries have been incorporated

 

i)               Sensonet Teknoloji Elelekfrontk Ve Biltslm Htzmetleri Sanayl Ve Ticaret Limited Strketl, Turkey

ii)              Redington Rwanda Limited. Rwanda

iii)            Redington Kazakhstan LLP, Kazakhstan Republic

 

7.                         The Board approved the proposal to carry out logistics business w.e.f October 1,2012 through a wholly owned subsidiary proposed to be formed.

 

8.                         Commission to Non- Executive Directors for the financial year ended March 31,2012 has been approved by the Members at the Annual General Meeting held on July 31, 2012.

 

9.                         The Deputy Managing Director Mr. Raj Shankar has been reappointed, subject to the approval of the Central Government (he being a non-resident) for a further period of five years from July 26, 2012 by the Members at the Annual General Meeting held on July 31,2012.

 

10.                      Tax expense comprises of income tax and deferred tax adjustment.

 

11.                      The figures of the previous quarter ended June 30,201 1, have been regrouped to conform to Schedule VI (as amended) of the Companies Act. 1956.

 

12.                      The figures for the quarter ended March 31. 2012 are the balancing figure between the audited figures for the full financial year ended March 31, 2012 and the published year to date figures up to third quarter ended December 31, 2011.

 

 

Fixed Assets:

 

·       Land and Building,

·       Plant and Machinery

·       Furniture and Fixtures

·       Office Equipment

·       Computers and Software

·       Vehicles

 

WEBSITE DETAILS:

 

HISTORY:

 

Subject, incorporated in 1961, commenced the operations in 1993 distributing information technology products. From then on the company has continuously expanded its operations across India covering a broad range of IT and Telecom Products.

 

Subject acquired Redington Gulf FZE (Middle East and Africa operations) in April 2004 from its Promoter, Redington Mauritius Limited. Redington Gulf FZE was setup as a subsidiary in 1999 by Redington Mauritius Limited for catering to Middle East and African markets. Leveraging its experience earned over the years, Redington Gulf FZE expanded its operations to 17 countries in the Middle East and Africa. Subject also acquired Redington Distribution Pte Limited (Singapore, Bangladesh and Srilanka Operations) as well as Cadensworth (India) Private Limited in April 2005.

 

In December 2004 the Synnex Group, the third Largest IT Distribution Company in the world headquartered in Taiwan, with a turnover of over USD 10 billion, made a strategic investment of 36% in subject.

 

In March 2006 ChrysCapital, a private equity firm, acquired 11 percent stake in subject through their investment company Beethoven Limited, Mauritius.

 

Redington through all its subsidiaries distributes products from over 40 Leading Manufacturers, services over 12000 channel partners in India and 2800+ channel partners in Middle East and Africa. The company is the second largest distributor of IT products in India and the largest in the Middle East and Africa.

 

CORPORATE PROFILE:

 

Subject along with its subsidiaries is in the business of end-to-end supply chain management of IT and Non-IT products in various potential geographies of South Asia, Middle East and Africa. Redington has demonstrated its capability in these price sensitive / difficult to penetrate geographies by leveraging its risk management capability, effective Supply Chain Infrastructure Management and efficient utilization of the Management Information Systems.

 

With a large distribution network and a market penetration of more than 18 countries, Redington is amongst the largest, supply chain solution providers to over 75 leading manufacturers of Information Technology, Telecom, Lifestyle and Consumer Electronics Products, worldwide. Redington also provides warranty and post warranty services. Supported by a wide and well connected distribution network of more than 23,600 channel partners, team of trained and talented workforce and Automated Distribution Centres, Redington has drawn up plans to take its place amongst the key world class, supply chain solution providers.

 

Commencing the Indian operations in 1993, Redington’s consolidated revenue for FY 2010-11 is Rs. 174780.800 Millions and the consolidated net profit for the FY 2010-11 is Rs. 2260.000 Millions.

 

Redington’s higher than industry average growth in the price sensitive Indian market and difficult to penetrate Middle East and African markets showcases its capabilities as a leading distributor in the geographies present.

 

 

BOARD OF DIRECTORS

 

Professor J. Ramachandran

 

Professor J. Ramachandran is a professor of business strategies at the Indian Institute of Management, Bangalore. Professor Ramachandran is the Chairman of their Board and carries rich experience in corporate management, acting as an independent director for several well-known Indian companies, including Reliance Infocomm Limited, Reliance Communication Ventures Limited, Sasken Communication Technologies Limited and Indus League Clothing Limited.

 

Mr. R. Jayachandran

 

Mr. R. Jayachandran is a qualified chartered accountant from India and is a member of the Institute of Certified Public Accountant of Singapore. He has also participated in an advanced management program at the Harvard Business School. He has been associated with Redington Mauritius Limited from its inception. He is a Non Executive Chairman of OLAM International Limited, a listed Singapore entity.

 

Mr. Tu, Shu-Chyuan

 

Mr. Tu, Shu-Chyuan, is an engineering graduate from the National Chiao Tung University, Taiwan, and has a Master's degree in Computer Engineering from San Jose State University, USA.  He has overall 25 years of working experience in global IT industry. He joined Synnex in 1994 and held a series of management positions. He is currently the GM of business development of Synnex. Prior to joining Synnex, he worked for various computer networking companies in the State and had focused expertise in planning and management.

 

Mr. Huang Chi Cheng

 

Mr. Huang Chi Cheng, a management graduate from the National Ching Hsing University, Taipei, Taiwan, has an overall work experience of 26 years and has been associated with organisations such as Tait and Company Limited, Taiwan and Seaward Woolen Textile Corporation Limited, Taipei, Taiwan. He has been working with Synnex Technology International Corporation for over 16 years and currently acts as its Associate Vice President. Prior to joining Synnex Technology International Corporation, Mr. Huang was an accounting manager for the consumer products division of Tait and Company Limited.

 

Mr. Steven A. Pinto

 

Mr. Steven A. Pinto is an experienced and respected International banker, having done key senior assignments with Citibank in India, Korea, the Gulf, and Singapore/ Asia-Pacific region. He has also been CEO of the Commercial Bank of Oman, later of Mashreqbanks Consumer Finance and Retail Banking businesses, and of Abu Dhabi Commercial Banks India operations. Beyond banking, he has significant experience in the lighting and consumer electronic fields, having worked with Philips India for 17 years in all the major locations in the country. He is a graduate in Economics and has a Masters in Business from the Bajaj Institute, Bombay University.

 

Mr. William Adamopoulos

 

William Adamopoulos serves as President and Publisher, Forbes Asia. He is responsible for all Forbes Media LLC business interests in Asia Pacific, including Forbes Asia, local partnerships Forbes India, Forbes China, Forbes Korea and Forbes Indonesia, Forbes.com and the annual Forbes Global CEO Conference

 

Prior to establishing an Asian headquarters for Forbes in 1999, Adamopoulos was the Publisher and Managing Director of The Asian Wall Street Journal, and the President of Dow Jones Publishing Company (Asia). 

A 1984 graduate of Harvard College where he studied economics, Adamopoulos is based in Singapore.

 

Mr. N. Srinivasan

 

Mr. N. Srinivasan is a commerce graduate and a Chartered Accountant since 1955. He was the senior partner of well known auditing firms Fraser and Ross and Deloitte Haskins and Sells until 1997. Mr. Srinivasan has been closely associated with development of the profession of accounting and auditing in India as a Central Council Member of The Institute of Chartered Accountants of India. He was head of various prestigious bodies in India and abroad, like Deputy President of The Associated Chamber of Commerce and Industry of India, Director on the Board of The Institute of Internal Auditors Inc., Florida, USA and Senate Member of The Annamalai University. He holds Directorship in many Public and Listed companies in many public and listed companies in India.

 

Mr. R. Srinivasan

 

Mr. R. Srinivasan is a graduate in engineering from the Madras University also has as masters' degree in business management from the Indian Institute of Management, Ahmedabad. He has over 30 years of management experience across the globe. Mr. Srinivasan has been involved in and continues to supervise the day-to-day operations of the Company and provides direction to its corporate strategy and vision.

 

Mr. Raj Shankar

 

Mr. Raj Shankar is a postgraduate from the Birla Institute of Technology and Sciences, Pilani. He has 25 years of professional experience working within and outside India in diverse sectors, including pharmaceuticals (Novartis India Limited) and textiles (Grasim Industries Limited). He joined Redington Gulf FZE in April 2001 as its Whole-time Director. He is currently responsible for Redington Group's operations in Singapore, the Middle East and Africa.

 

Mr. Raj Shankar has been appointed as Deputy Managing Director at the board meeting held on 26th July 2007.

 

Mr. M. Raghunandan

 

Mr. M. Raghunandan is a graduate in engineering from the Indian Institute of Technology, Madras, and also has a masters' degree in business management from the Indian Institute of Management, Ahmedabad. He has been with the Company since January, 1998, originally acting as a country support manager and currently a Whole time Director.

 

Mr. Raghunandan has professional experience of 28 years and has been associated with organisations like ITC Limited and HCL Infosystems Limited and was involved in areas such as manufacturing, technology transfer and projects. Prior to joining the Company, Mr. Raghunandan was the President of Indian Food Fermentations Limited.

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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. 54.64

UK Pound

1

Rs. 87.46

Euro

1

Rs. 72.65

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

Yes

--LITIGATION

YES/NO

No

--OTHER ADVERSE INFORMATION

YES/NO

No

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

No

--EXPORT ACTIVITIES

YES/NO

No

--AFFILIATION

YES/NO

Yes

--LISTED

YES/NO

Yes

--OTHER MERIT FACTORS

YES/NO

Yes

TOTAL

 

66

 

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

-

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.