MIRA
INFORM REPORT
|
Report Date : |
17.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
TILAKNAGAR INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
P O Tilaknagar, Taluka Shrirampur, District Ahmednagar, Shrirampur –
413720, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
29.07.1933 |
|
|
|
|
Com. Reg. No.: |
133303 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 1200.020 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L15420PN1933PLC133303 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacture and sale of Indian Made Foreign Liquor. |
|
|
|
|
No. of Employees
: |
681 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (57) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 18000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established company having a good track record. Financial company has performed well. Performance capability is good. Trade relations are reported to be fair. Business is active. Payments
are reported to be regular and as per commitment. The company can be considered for normal business dealings at usual
trade terms and condition. |
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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term loan: BBB+ |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of financial
obligation it carry moderate credit risk. |
|
Date |
March 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 : |
P O Tilaknagar, Taluka Shrirampur, District Ahmednagar, Shrirampur –
413720, |
|
Tel. No.: |
91-24-22265123/265032 |
|
Fax No.: |
91-24-22265135 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
3rd Floor, |
|
Tel. No.: |
91-22-22831718 / 16 |
|
Fax No.: |
91-22-22046904 |
|
E-Mail : |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Amit
Dahanukar, |
|
Designation : |
Chairman and
Managing Director |
|
|
|
|
Name : |
Mrs. Shivani Amit
Dahanukar |
|
Designation : |
Executive
Director |
|
|
|
|
Name : |
Mr. V. B.
Haribhakti |
|
Designation : |
Non - Executive
Directors |
|
|
|
|
Name : |
Dr. Vishnu
Kanhere |
|
Designation : |
Non - Executive
Directors |
|
|
|
|
Name : |
Dr. Ravindra
Bapat |
|
Designation : |
Non - Executive
Directors |
|
|
|
|
Name : |
Mr. C.V. Bijlani |
|
Designation : |
Non - Executive
Directors |
|
|
|
|
Name : |
Mr. Madan Goyal |
|
Designation : |
Non - Executive
Directors |
KEY EXECUTIVES
|
Name : |
Mr. Gaurav Thakur |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
63816499 |
52.36 |
|
|
4755169 |
3.90 |
|
|
68571668 |
56.26 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
68571668 |
56.26 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
9303379 |
7.63 |
|
|
85738 |
0.07 |
|
|
18266388 |
14.99 |
|
|
27655505 |
22.69 |
|
|
|
|
|
|
5322249 |
4.37 |
|
|
|
|
|
|
10902266 |
8.95 |
|
|
8424353 |
6.91 |
|
|
1004094 |
0.82 |
|
|
44954 |
0.04 |
|
|
698300 |
0.57 |
|
|
260840 |
0.21 |
|
|
25652962 |
21.05 |
|
Total Public shareholding (B) |
53308467 |
43.74 |
|
Total (A)+(B) |
121880135 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
121880135 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture and sale of Indian Made Foreign Liquor. |
GENERAL INFORMATION
|
No. of Employees : |
681 (Approximately) |
||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||
|
Bankers : |
·
Punjab National Bank ·
Bank of India ·
State Bank of India ·
Axis Bank Limited ·
HDFC Bank Limited ·
Standard Chartered Bank ·
Punjab and Sind Bank ·
Karur Vysya Bank Limited |
||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||
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Facilities : |
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||||||||||||||||||||||||||||||
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|
|
|
Banking
Relations : |
|
|
|
|
|
Statutory Auditors: |
|
|
Name : |
Batliboi and Purohit Chartered Accountants |
|
|
|
|
Internal Auditors: |
Devdhar Joglekar and Srinivasan Chartered Accountants |
|
|
|
|
Solicitors: |
·
W. S. Kane and Company ·
Holla and Holla ·
L. J. Law and Company ·
Parekh and Company ·
Deepak Sabarwal and Associates ·
Tatva Legal |
|
|
|
|
Subsidiary Companies: |
·
Prag Distillery Private Limited ·
Vahni Distilleries Private Limited ·
Kesarval Springs Distillers Private Limited ·
Punjab Expo Breveries Private Limited ·
Mykingdom Ventures Private Limited ·
P.P. Caps Private Limited ·
Studd Projects Private Limited ·
Srirampur Grains Private Limited ·
Shivprabha Sugars Limited |
|
|
|
|
Company in which Key Managerial Personnel has substantial interest: |
·
M.L. Dahanukar and Company Private Limited ·
Arunoday Investments Private Limited |
CAPITAL STRUCTURE
As on 21.09.2012
Authorised Capital : Rs.1500.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.1220.531
Millions
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
150000000 |
Equity Shares |
Rs.10/- each |
Rs. 1500.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120001772 |
Equity Shares |
Rs.10/- each |
Rs. 1200.020
Millions |
|
|
|
|
|
Of the above shares:
86,176,200 equity shares of Rs.10/- each fully
paid-up bonus shares by capitalisation of share premium, capital reserve and
general reserve
Reconciliation of the number of shares outstanding
(Nos. In Millions)
|
Number of equity shares at the beginning |
115.260 |
|
Equity shares issued on exercise of employee
stock options |
0.460 |
|
Equity shares issued by way of QIP (Qualified
Institutions Placement) |
0.000 |
|
Equity shares issued as bonus |
0.000 |
|
Shares issued on conversion of warrants |
4.280 |
|
Number of equity shares at the end |
120.000 |
Terms / rights attached to equity shares each holder
of equity share is entitled to one vote per share with a right to receive per
share dividend by the Company, when declared. In the event of liquidation, the
equity shareholders will be entitled to receive remaining assets of the Company
after distribution of all preferential amounts in the proportion to the number
of equity shares held by them.
Details of shareholders holding more than 5% shares in the Company
|
Particulars |
31.03.2012 |
|
|
|
No. of equity
shares in million |
As a % of total holding |
|
Shivani Amit Dahanukar |
39.37 |
32.81 |
|
Amit Dahanukar |
22.54 |
18.78 |
|
Small Cap World Fund, Inc |
8.89 |
7.41 |
|
IDFC Premier Equity Fund |
6.74 |
5.61 |
|
|
|
|
|
Total |
77.54 |
64.61 |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
1200.020 |
1152.570 |
|
(b) Reserves & Surplus |
|
3340.390 |
2788.270 |
|
(c) Money
received against share warrants |
|
0.000 |
78.190 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
|
1.680 |
0.200 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
723.500 |
990.660 |
|
(b) Deferred tax liabilities (Net) |
|
259.130 |
191.030 |
|
(c) Other long term liabilities |
|
321.890 |
366.280 |
|
(d) long-term provisions |
|
8.230 |
4.440 |
|
|
|
|
|
|
(4) Current liabilities |
|
|
|
|
(a) Short term borrowings |
|
3503.780 |
2736.530 |
|
(b) Trade payables |
|
355.730 |
296.580 |
|
(c) Other current
liabilities |
|
375.730 |
341.170 |
|
(d) Short-term provisions |
|
295.920 |
193.930 |
|
TOTAL |
|
10386.000 |
9139.850 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
3886.270 |
3649.970 |
|
(ii) Intangible Assets |
|
85.420 |
119.940 |
|
(iii) Capital
work-in-progress |
|
68.640 |
24.370 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
440.850 |
255.970 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
38.700 |
233.590 |
|
(e) Other Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
2.500 |
2.500 |
|
(b) Inventories |
|
1081.400 |
619.730 |
|
(c) Trade receivables |
|
894.860 |
701.720 |
|
(d) Cash and cash
equivalents |
|
80.920 |
98.490 |
|
(e) Short-term loans and
advances |
|
3805.920 |
3433.110 |
|
(f) Other current assets |
|
0.520 |
0.460 |
|
TOTAL |
|
10386.000 |
9139.850 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
323.100 |
|
|
2] Employee Stock Option Outstanding |
|
|
2.830 |
|
|
3] Reserves and Surplus |
|
|
1700.840 |
|
|
4] (Accumulated Losses) |
|
|
0.000 |
|
|
|
|
|
|
|
|
NETWORTH |
|
|
2026.770 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
2721.170 |
|
|
2] Unsecured Loans |
|
|
1773.230 |
|
|
TOTAL BORROWING |
|
|
4494.400 |
|
|
DEFERRED TAX LIABILITIES |
|
|
119.550 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
6640.720 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
2070.370 |
|
|
Goodwill |
|
|
38.920 |
|
|
Capital work-in-progress |
|
|
1637.410 |
|
|
Lees: Impairment of Assets |
|
|
1.700 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
2.870 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS and ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
843.260
|
|
|
Sundry Debtors |
|
|
819.950
|
|
|
Cash and Bank Balances |
|
|
265.680
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans and Advances |
|
|
2151.320
|
|
Total
Current Assets |
|
|
4080.210
|
|
|
Less : CURRENT
LIABILITIES and PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
467.560
|
|
|
Other Current Liabilities |
|
|
460.130
|
|
|
Provisions |
|
|
259.670
|
|
Total
Current Liabilities |
|
|
1187.360
|
|
|
Net Current Assets |
|
|
2892.850
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
6640.720 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4572.670 |
3501.060 |
3844.030 |
|
|
|
Other Income |
14.600 |
16.710 |
45.730 |
|
|
|
TOTAL (A) |
4587.270 |
3517.770 |
3889.760 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1851.910 |
933.590 |
|
|
|
|
(Increase) / Decrease in stocks |
(328.680) |
48.440 |
|
|
|
|
Employee benefit expense |
272.44 |
197.430 |
|
|
|
|
Other expenses |
1457.240 |
1302.140 |
|
|
|
|
TOTAL (B) |
3252.910 |
2481.600 |
3044.120 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1334.360 |
1036.170 |
845.640 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
541.560 |
343.080 |
235.840 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
792.800 |
693.090 |
609.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
212.160 |
126.290 |
71.270 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
580.640 |
566.800 |
538.530 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
193.100 |
217.790 |
234.640 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
387.540 |
349.010 |
348.890 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
468.260 |
581.770 |
327.270 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
355.000 |
33.500 |
|
|
|
Tax on Dividend |
111.710 |
107.520 |
103.730 |
|
|
BALANCE CARRIED
TO THE B/S |
744.090 |
468.260 |
538.930 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
66.910 |
76.620 |
52.510 |
|
|
|
|
|
|
|
|
|
|
CIF Value of
Imports: |
20.290 |
5.400 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
3.35 |
3.40 |
5.74 |
|
|
|
Diluted |
3.30 |
3.27 |
5.61 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
1202.100 |
1435.900 |
1466.000 |
1586.600 |
|
Total Expenditure |
867.800 |
1058.400 |
1076.700 |
1215.800 |
|
PBIDT (Excl OI) |
334.300 |
377.500 |
389.300 |
370.800 |
|
Other Income |
7.600 |
2.300 |
1.000 |
12.100 |
|
Operating Profit |
341.900 |
379.800 |
390.300 |
382.900 |
|
Interest |
130.400 |
147.300 |
143.900 |
129.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
211.600 |
232.500 |
246.400 |
253.200 |
|
Depreciation |
55.000 |
55.400 |
55.600 |
58.000 |
|
Profit Before Tax |
156.600 |
177.100 |
190.800 |
195.200 |
|
Tax |
50.800 |
58.400 |
60.400 |
46.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
105.800 |
118.700 |
130.400 |
148.500 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
105.800 |
118.700 |
130.400 |
148.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
8.45
|
9.92 |
8.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.70
|
16.19 |
14.01 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.88
|
6.40 |
13.20 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.14 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.93
|
0.93 |
2.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.29
|
1.36 |
3.44 |
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 |
FINANCIAL RESULTS
The performance of The Company during the financial year is consistent
with its planned efforts. It is maintaining its upward trajectory in volume growth
ahead of the alcobev industry with an equal attention on its financial
performance. During the year, the sales volume has increased by 22% and stood
at an impressive 13.24 million cases as compared to 10.86 million cases in the
financial year 2010-11 on consolidated basis led by an enhanced brand bouquet
and penetration in new and existing geographies through mass brands. The
Company has franchisee arrangements in some states and in respect of such
arrangements, turnover of Rs.6896.020 Millions (Rs.8308.300 Millions in the
last financial year) has not been treated as sales. However, the surplus
generated out of these arrangements is included in the total revenue. The
growth achieved bears witness to the appeal of the TI’s brand portfolio
catering to wide audience and reaching across various product segments and
price points.
While driving volume growth in the IMFL segment has always been the
endeavor of the Company, it has simultaneously focused its efforts on margin
performance too. Consequently, as a result of the increase in the volumes
combined with the premiumisation drive and price increase in the second-half of
the financial year, total revenue during the year, on consolidated basis, has
increased by impressive 18% and stood at Rs.5555.480 Millions as compared to
Rs.4709.520 Millions in the financial year 2010-11.
During the year, The Company has achieved a net profit of Rs.471.61
million on consolidated basis i.e. 19% increase over net profit of Rs.395.740
Millions achieved in the last financial year driven by economies of scale,
higher price realizations achieved on account of premium products featured in
the diversified product portfolio and price increase taken on the flagship
brand ‘Mansion House Brandy’ and other brands in CSD. Significant investments
made in family shape bottles during the last financial year also yielded
noteworthy contributions to the earnings whilst providing a hedge against
increased glass prices.
OPERATIONAL REVIEW
The Company is a well established player in the expanding Indian Made
Foreign Liquor (IMFL) industry in India and has created a distinct identity for
itself in the IMFL segment, with a diversified brand range and a keen focus on
premiumisation. The Company’s brand portfolio comprises of over 40 brands featuring
two millionaire brands, ‘Mansion House Brandy’ and ‘Madira Rum’. The Company
also enjoys leading position in the Canteen Stores Department (CSD) with 13
brands registered under it.
Manufacturing
Facilities
The Company has constantly enhanced its core strengths to create a
robust business model and presently, it has modern manufacturing set up
encompassing various manufacturing facilities spread across India.
The Company’s manufacturing facilities comprise of 1 owned facility, 4
operating subsidiaries with additional 5 subsidiaries for allied activities, 10
lease arrangements and 15 tie-up units. The primary manufacturing facility is
located in Shrirampur (Maharashtra) comprising of 100 KLPD molasses based and
100 KLPD grain based distillation plants and 1 lac cases per month (on single
shift basis) IMFL bottling plant. The new 100 KLPD grain based facility has
enabled The Company to manufacture more premium quality of brands along with
better adaptability to safeguard itself against the variations in the prices of
molasses and made The Company self sufficient in alcohol requirement. The
Company is considering conversion of grain based facility into dual mode
in order to take advantage of the market price of the two feed stocks,
viz. grain and molasses. Presently, both the facilities are in operation and
are being used depending upon the feedstock price economies.
The Company is also considering upgradation of its present IMFL bottling
facility to take care of proposed increase in IMFLload for Maharashtra. All the
facilities are stringently monitored to ensure product consistency and to
produce superior quality alcohol.
Management
Discussion and Analysis
GLOBAL ECONOMIC
OVERVIEW
The global economy grew 5.2 percent in 2010-11 and declined to 3.8 percent
in 2011-12, largely owing to the Euro zone crisis, inflation, economic slowdown
and currency volatility. The global economic environment continues to remain
cautious.
INDIAN ECONOMIC
OVERVIEW
The Indian economy is projected to grow 6.5 percent in 2011-12,
relatively one of the faster-growing economies.
The services sector is estimated to have grown 9.4 percent, agricultural
and allied sectors 2.5 percent and the industrial sector 3.9 percent. Demographics,
disposal incomes and robust consumption, peaking interest rates and large
investments lined up for the 12th Five Year Plan (2012-17) augur
well for domestic economic growth, going forward.
GLOBAL ALCOHOL
INDUSTRY
Alcoholic beverages include beer, cider, ale, wine (including sparkling
barley and rice wine) and spirits such as rum, whisky, brandy, vodka and gin.
Almost 40 percent of the world’s alcoholic beverage consumption involves
branded drinks that are usually owned by large multinationals investing
substantially in marketing and brand management. While growth determined from
developing economies provides volume expansion, the mature markets provide
enhanced value.
The transformation in consumption patterns arising from demographic
changes is redefining product development
and marketing in the global alcohol beverages sector. One of the key
prevailing trends is premiumisation in developing economies, marked by a
growing consumption of superior alcohol beverages.
The premium spirits industry however reported a decline in off take
during the global economic crisis owing to slowdown in developed economies. To
counter the consumption of cheap variants, manufacturers launched quality
products in Africa, Asia, Europe and Latin America.
Manufacturers were also required to address challenges which included
promoting responsible drinking, high ingredient costs and preference for
low-cost and high-quality brands.
The European Union represented almost 57 percent of the world spirits
market. The global alcohol industry is expected to exceed USD 1 trillion by
2014 (Source: MarketLine). Market volume is predicted to grow 10 percent to 210
billion litres in 2014. Beer, cider and flavoured alcoholic beverages represent
the leading market segment, accounting for over half the market value.
INDIAN ALCOHOL
INDUSTRY
The Indian alcohol market is estimated at around USD 15 billion. Nearly
75 percent of this market comprises spirits; the balance is accounted by beer,
wines and flavoured beverages. Whisky, brandy, rum, vodka and gin manufactured
in India, are referred to as ‘Indian made foreign liquor’ (IMFL). The branded
spirits IMFL market is estimated at nearly 225 million cases (nine bulk litres
each). Brown spirits (whisky, brandy and rum) account for around 96 percent of
the Indian industry.
Whisky is the largest-selling alcoholic beverage in India with a 56
percent share of the IMFL market while brandy (23 percent) and rum (14 percent)
represent the other large segments. The Indian spirits industry grew 8 percent
in 2011-12.
The Indian IMFL industry is regulated, marked by duties, fees, customs,
taxes and restrictions by state and central governments. Intelligent marketing
and innovative packaging techniques by some companies have portrayed alcohol as
a lifestyle product and an integral part of most social events.
India is a lucrative destination for multinational alcoholic beverage
brands, being under-penetrated compared with the mature markets of Europe and
the US. Country liquor enjoys a commanding presence in North Indian states.
However, its share is expected to decline by FY15, replaced by IMFL on the back
of rising incomes and awareness.
South Indian States, specifically Tamil Nadu and Andhra Pradesh, are the
key IMFL consumption centres, accounting around 35 percent of the total IMFL
volumes consumed inIndia. IMFL consumption in the Southern States is higher
thanNorth India because of a ban on country liquor in the South. The Indian
brandy market is the second-largest segment of the IMFL industry. Over five
years, the brandy market grew at a 13.8 percent CAGR. The per capita brandy
consumption was pegged at 0.3 litres in FY10, which has grown in five years at
a CAGR of 12.2 percent(Source: Mindpower Solutions). Growth is propelled by an
increasing consumption in South India where brandy is very popular Vodka is the
fastest-growing IMFL segment in India, catalysed by increased consumption in
pubs, hotels, restaurants as well as an evolving nightlife and consumer
preferences. Vodka consumption grew 44 percent CAGR over the past five years.
CORPORATE OVERVIEW
The Company is one of India’s fastest-growing IMFL players with an
industry leading presence in South India and CSD stores. The Company owns over 40
IMFL brands catering to a diverse range of tastes and budgets. The Company’s
core competence lies in its diversified portfolio (Mansion House, the India’s
second-largest selling brandy brand), dispersed manufacturing facilities and
wide distribution network. The Company is having strong presence in South
India, which constitutes 60% of the entire Indian IMFL industry.
Some of the Company’s fastest-selling brands comprise Mansion House
Brandy, Mansion House Whisky, Courrier Napoleon Brandy, Senate Royale Whisky,
Madira Rum and Castle Club Vodka, among others.
OPERATIONAL REVIEW
Operational
Highlights 2011-12
The Company recorded a 22 percent growth in sales volume from 10.86
million cases in 2010-11 to 13.24 million cases. Achieved a robust 37 percent
growth in the Canteen Stores Department (CSD). Mansion House Brandy emerged as
the second-largest brandy brand in India, selling 5.5 million cases in
2011-12. Madira Rum emerged with a sales
of 1.74 million cases which is 40 percent growth compared to last year.
Manufacturing
Review
The Company’s manufacturing facilities comprise 1 owned facility, 4
operating subsidiaries with additional 5 subsidiaries for allied activities, 10
lease arrangements and 15 tie-up units. The primary distillation facility is
located in Shrirampur (Maharashtra) comprising of 100 KLPD molasses based and
100 KLPD grain based distillation plants and 1 lac cases per month (on single
shift basis) IMFL bottling plant.
Acquisitions
During the year, the Company acquired following companies to augment its
manufacturing capacity
and to integrate both forward and backward:
UNSECURED LOAN
|
PARTICULARS |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
Short-term
borrowings |
|
|
|
From Others |
0.000 |
13.440 |
|
|
|
|
|
Total |
0.000 |
13.440 |
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
|
Corporate guarantees issued to banks on
behalf of Subsidiary Company |
562.720 |
200.000 |
|
Bank guarantees issued on behalf of the
Company |
135.580 |
43.920 |
|
In respect of disputed Income tax matters,
pending before the appropriate Income tax authorities, contested by the
Company |
|
|
|
For A.Y. 2009-10 |
6.130 |
6.130 |
|
For A.Y. 2007-08 |
86.070 |
86.070 |
|
For A.Y. 2004-05 |
22.270 |
22.270 |
|
In respect of disputed Sales tax matters,
pending before the appropriate tax authorities, contested by the Company |
|
|
|
For F.Y. 2003-04 (Bombay Sales Tax) |
6.280 |
6.280 |
|
For F.Y. 2003-04 (Central Sales Tax) |
4.830 |
4.830 |
|
For F.Y. 2004-05 (Bombay Sales Tax) |
4.670 |
4.670 |
|
For F.Y. 2004-05 (Central Sales Tax) |
2.030 |
2.030 |
|
In respect of disputed service tax matter,
pending before the appropriate Central Excise authorities, contested by the
Company |
0.000 |
2.020 |
STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED
MARCH 31, 2013
(Rs. In Millions)
|
|
|
Unaudited Audited |
||
|
Sr. No. |
Particulars |
For the Quarter ended |
For the Year ended |
|
|
1 |
Income from Operations |
31.03.2013 |
31.12.2012 |
31.03.2013 |
|
|
a) Net
sale / Income from Operations (Net of excise duty) |
1582.936 |
1460.794 |
5563.601 |
|
|
b) Other
Operating Income |
3.650 |
5.181 |
127.008 |
|
|
Total Income from Operations (net) |
1586.586 |
1465.975 |
5690.609 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of material consumed |
638.618 |
641.615 |
2355.246 |
|
|
b) Purchase of stock-in-trade |
0.000 |
0.000 |
0.000 |
|
|
c) Changes in inventories of finished
goods, work-in-progress and stock-in-trade |
146.476 |
(51.277) |
145.645 |
|
|
d) Employee benefits expense |
78.806 |
68.419 |
276.370 |
|
|
e)Depreciation and amortisation expense |
57.980 |
55.565 |
223.913 |
|
|
f) Other
expenses |
351.819 |
417.923 |
1441.432 |
|
|
Total Expenses |
1273.720 |
1132.245 |
4442.607 |
|
3 |
Profit from operations before other Income,
finance cost & exceptional items |
312.814 |
333.730 |
1248.002 |
|
4 |
Other Income |
12.137 |
0.985 |
23.005 |
|
5 |
Profit
from ordinary activities before finance cost and exceptional Items |
324.952 |
334.715 |
1271.008 |
|
6 |
Finance Cost |
129.743 |
143.895 |
551.288 |
|
7 |
Profit from ordinary activities after finance
cost but before exceptional items |
195.209 |
190.820 |
719.720 |
|
8 |
Exceptional items |
- |
- |
-- |
|
9 |
Profit from ordinary activities before tax |
195.209 |
190.820 |
719.720 |
|
10 |
Tax Expense |
466.710 |
60.400 |
216.287 |
|
11 |
Net Profit from ordinary activities after
tax |
1485.370 |
130.420 |
503.432 |
|
12 |
Extraordinary Items |
- |
- |
-- |
|
13 |
Net Profit for the period |
1485.370 |
130.420 |
503.432 |
|
14 |
Paid-up equity share capital (Face value of
share : Re. 01/-) |
12188.010 |
1213.179 |
1218.801 |
|
15 |
Reserves excluding revaluation reserve as
per balance sheet of previous accounting year |
-- |
-- |
3219.341 |
|
16 |
Earnings per share (before extraordinary
item)(of Re.10/- each) : |
|
|
|
|
|
a) Basic |
1.22 |
1.08 |
4.17 |
|
|
b) Diluted |
1.17 |
1.05 |
4.04 |
|
|
Earnings Per Share (after extraordinary
items) (of Re.10/- each) : |
|
|
|
|
|
a) Basic |
1.22 |
1.08 |
4.17 |
|
|
b) Diluted |
1.17 |
1.05 |
4.04 |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of Shares |
53308467 |
53018968 |
53018968 |
|
|
- Percentage of Shareholding |
43.74% |
43.70% |
43.70% |
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
|
- Number of Shares |
36404866 |
29512520 |
36404866 |
|
|
- Percentage of Shares (as a % of total shareholding of promoter and promoter group) |
53.09% |
43.21% |
53.09% |
|
|
- Percentage of Shares (as a % of total share Capital of the Company) |
29.87% |
24.33% |
29.87% |
|
|
b) Non-Encumbered |
|
|
|
|
|
- Number of Shares |
32166802 |
38786365 |
32166802 |
|
|
- Percentage of Shares (as a % of total shareholding of promoter and promoter group) |
46.91% |
56.79% |
46.91% |
|
|
- Percentage of Shares (as a % of total share Capital of the Company) |
26.39% |
31.97% |
26.39% |
INVESTOR COMPLAINTS
|
PARTICULARS |
QUARTER ENDED 31.03.2013 |
|
Pending at the beginning of the quarter |
NIL |
|
Received during the quarter |
10 |
|
disposed off during the quarter |
10 |
|
Remaining unresolved at the end of the
quarter |
NIL |
Note:
The above Audited Standalone
Financial Results reviewed by the Audit Committee have been, approved and taken
on record by the Board of Directors at its meeting held on May 30, 2013.
The Board of Directors has
recommended a final dividend of Rs. 0.80 per equity share of Rs.10/-
each (8%) (or the financial year 2012-13 subject to the approval of shareholders
at the ensuing Annual General Meeting.
The Company is
predominantly engaged in me business of manufacture and sale of Indian Made
Foreign Liquor (IMFL) and its related products, which constitute a single
business segment and therefore, disclosure under Accounting! Standard (AS-17)
on "Segment Reporting" issued by the ICAI is not applicable.
The Company has franchisee
arrangements in some states and in respect of such arrangements the turnover of
Rs. 2426.840 Millions (Rs. 1409.104 Millions) during the quarter ended March
31, 2013 and Rs. 5401.340 Millions (Rs. 6656.017 Millions) during the financial
year ended March 61, 2013 has no" been treated as Sales. However, the surplus
generated our of these arrangements is included in the 'Sales/Income from
Operations',
Statement
of outstanding stock options
|
Particulars |
ESOP Scheme 20 03 |
ESOP Scheme 2010 |
ESOP Scheme 2.012 |
||
|
Outstanding Stock Options
as on January 01, 2013 |
2.701,244 |
3.624,121 |
2.331.239 |
||
|
Stock Options Granted
during the quarter |
- |
- |
1.0CDL00O |
||
|
Stock Options Exercised
during the quarter |
223.352 |
333,930 |
- |
||
|
Stock Options Exercised during
the quarter, pending for allotment |
135.230 |
16.725 |
- |
||
|
Stock Options
Cancelled/Lapsed during the quarter |
29,640 |
36,110 |
33.369 |
||
|
Outstanding Stock Options
as on March 31 r 20'3 |
2.313.022 |
3,232.356 |
3.042,870 |
||
During the quarter, the
Company has allotted 562,282 equity shares to option grantees against exercise
of vested stock option.
Other operating income for
the nine months ended December 31, 2012 and year ended March 31, 2013 includes
Rs 1098.350 Millions on account of entitlement of MVAT and CST refund for the
previous year 2011-2012 pursuant to the grant Of Mega Project Status under
Package Scheme of Incentives 2007 by the Government of Maharashtra vide its
eligibility certificate dated April 11.2012.
The figures of the last
quarter for the current financial year are the balancing figures between the
audited figures in respect of the full financial year ended March 31, 2013 and
the unaudited published year to date figures upto the third quarter ended December
31, 2012 which were subjected to limited review.
The previous period's
figures have been regrouped and reclassified wherever necessary.
FIXED ASSETS
·
Land
·
Buildings
·
Plant and Equipment
·
Furniture and Fixtures
·
Office Equipment
·
Computers
·
Electrical Installation
and Fittings
·
Motor Car and Transport Vehicles
·
Roads and Bridges
·
Library Books
·
Live stock
·
Tools and Equipments
As per Website Details
PRESS RELEASES
TILAKNAGAR INDUSTRIES SIGNS TRADEMARK
ASSIGNMENT AGREEMENT WITH MOHAN BREWERIES
JANUARY 04, 2013
Tilaknagar Industries has entered
into agree agreement with Mohan Breweries and Distilleries for assignment of
MBDL s trademarks namely Brigadier No 1 brandy and
Vorion No 1 Indian Brandy for a period of 25 years.
Tilaknagar Industries Limited has informed BSE regarding a Press Release dated June 03, 2013, titled "TI signs Trademark Assignment Agreement with Mohan Breweries and Distilleries Limited (MBDL)" Tilaknagar Industries has entered into agree agreement with Mohan Breweries and Distilleries for assignment of MBDLs trademarks namely Brigadier No 1 brandy and Vorion No 1 Indian Brandy for a period of 25 years.
WINDING UP PETITION
FILED BY TILAKNAGAR INDUSTRIES LIMITED AGAINST MALT SPIRITS INDIA PRIVATE
LIMITED IS ADMITTED BY HIGH COURT
JANUARY 23, 2012
Tilaknagar Industries Limited. (TI) had filed a winding up petition against Malt Spirits India Private Limited. (MSIPL), Bangalore, Karnataka. The said petition was filed by TI at High Court, Karnataka, for the recovery of its legitimate pending dues of Rs.26.800 Millions arising out of the manufacturing agreement entered between them, wherein TI was not refunded the deposit provided by TI under the concerned agreement and other legitimate dues pending against MSIPL.
The Hon’ble Judge had allowed the interim application filed by TI restraining
MSIPL from disposing off its assets and had called upon MSIPL to file its
reply.
The Hon’ble Court today deemed it fit to admit the petition filed by TI on the
basis of the validity of the claim and has ordered it for being advertised in
the newspapers that the claim has been admitted by the Hon’ble Karnataka High
Court.
TILAKNAGAR IND GETS
RESTRAINT ORDER AGAINST RHIZOME DISTILLERIES
HYDERABAD, OCT. 15:
Tilaknagar Industries Limited has obtained interim relief from court restraining Rhizome Distilleries from selling and disposing of its assets in a case of non-payment of dues.
The Maharashtra-based maker of Indian-made foreign liquor had filed a winding up petition in June claiming non-remittance of dues to the tune of Rs 60.000 Millions. It had submitted to the court that Rhizome Distilleries Private Limited, Hyderabad, had not remitted their due sales proceeds.
In response, the Andhra Pradesh High Court in an order dated September 28 restrained Rhizome Distilleries from disposing of, selling and alienating its assets on the basis of undertaking provided by its Counsel Eranki Phani Kumar.
In a press release, Tilaknagar Industries, which owns 40 brands including Mansion House Brandy, had entered into a bottling agreement with Rhizome Distilleries first in 2007, and subsequently, renewed it last year for manufacturing and bottling of its products.
The company has a manufacturing unit near Medchal on the outskirts of the city with a capacity of one lakh cases per month.
The order restraining Rhizome from alienating its assets was passed by a bench of Justice Ramesh Ranganatha, the release from Tilaknagar Industries said.
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.57.74 |
|
|
1 |
Rs.90.64 |
|
Euro |
1 |
Rs.77.02 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
57 |
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.