MIRA INFORM REPORT
|
Report Date : |
27.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
HAVELLS INDIA
LIMITED |
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Registered
Office : |
1 Raj, Narain Marg, Civil Lines, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
08.08.1983 |
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Com. Reg. No.: |
55-016304 |
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Capital
Investment / Paid-up Capital : |
Rs. 623.900 Millions |
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CIN No.: [Company Identification
No.] |
L31900DL1983PLC016304 |
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PAN No.: [Permanent Account No.] |
DELH00196A |
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Legal Form : |
A Public Limited Liability company. The Company’s Shares are listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of
Electrical Products. |
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No. of Employees
: |
1000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 64000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well
established and reputed company having fine track. Financial position of the
company appears to be sound. Trade relations are fair. Business is active.
Payments are reported to be regular as per commitments. The company can
be considered good for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
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Rating |
AA ( Long term rating) |
|
Rating Explanation |
Having high degree of safety regarding timely
servicing of financial obligation it carry very low credit risk. |
|
Date |
March 2012 |
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Rating Agency Name |
CARE |
|
Rating |
A1+ ( Short term rating) |
|
Rating Explanation |
Having very strong degree of safety regarding
timely payment of financial obligation it carry lowest credit risk. |
|
Date |
March 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.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Ms. Surekha |
|
Designation : |
Accounts Department |
|
Contact No.: |
91-120-4771000 |
|
Date : |
24.05.2013 |
LOCATIONS
|
Registered Office : |
1 Raj, Narain Marg, Civil Lines, |
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Tel. No.: |
91-11-23935237 / 23944469-72 |
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Fax No.: |
91-11-23921500 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office : |
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Tel. No.: |
91-120-4771000 |
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Fax No.: |
91-120-4772000 |
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Factory : |
Domestic Switchgear Division - Road No. 9, Samepur Badli, -
Distt. Solan, Baddi, Industrial Switchgear Division - 14/3, Cable Division - A/461-462, Matsya Industrial Area, Alwar, -
SP-215, Matsya Industrial Area, Alwar, CFLs Division - 14/3, -
Plot No.2A, Sector -10, SIDCUL, BHEL Industrial Estate, Haridwar, Fan Division - Plot No.2A, Sector -10, SIDCUL, BHEL Industrial
Estate, Haridwar, - G-470 / 471, RIICO
Industrial Area, Bhiwadi, Meter Division - 6, Tilak Nagar Industrial Area, 100% Export
Oriented Unit (EOU) - Distt. Solan, Baddi, Centre for
Research and Innovation (CRI) - E-1, Sector 59, Noida 201 307, |
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Representative Offices : |
Located At:
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Branches : |
NORTH :
EAST :
WEST :
SOUTH :
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DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Qimat Rai Gupta |
|
Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
24.01.1937 |
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Qualification : |
B.A. |
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Date of Appointment : |
08.08.1983 |
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Other Directorship : |
v Havell's v TTL Limited v QRG Enterprises Limited v Standard Electricals Limited v Havell's Financial Services Limited |
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Name : |
Mr. Anil Gupta |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
20.04.1969 |
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Qualification : |
B.A. (Economics) MBA (Marketing and Finance) from |
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Other Directorship : |
v Havell's v TTL Limited v QRG Enterprises Limited v Havell's Switchgears Private Limited v Standard Electricals Limited v Havell's Financial v Services Limited v Havell's ( |
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Name : |
Mr. Surjit Gupta |
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Designation : |
Director |
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Date of Birth/Age : |
13.01.1942 |
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Qualification : |
F. Sc. from |
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Other Directorship : |
v Havell's v TTL Limited v QRG Enterprises Limited v Havell's Switchgears Private Limited v Havell's Financial Services Limited |
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Name : |
Mr. Rajesh Gupta |
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Designation : |
Director (Finance) |
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Date of Birth/Age : |
17.06.1957 |
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Qualification : |
Qualified Chartered Accountant (F.C.A) |
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Experience : |
25 Years |
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Date of Appointment : |
01.12.1980 |
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Other Directorship : |
v Havell's v Anekant Consulting Private Limited |
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Name : |
Mr.
S.B. Mathur |
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Designation : |
Director |
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Date of Birth/Age : |
11.10.1944 |
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Qualification : |
Chartered Accountant |
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Other Directorship : |
v Havell's v The National
Stock Exchange of v EID Parry (I) Limited v Grasim Industries Limited v IL and FS Limited v v National Collateral Management Services Limited v ITC Limited v UTI Bank Limited v Indian Railway Catering's Tourism Corporation Limited v UTI Technology Services Limited v UTI Infrastructure and Services Limited |
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Name : |
Mr. S K Tuteja |
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Designation : |
Director |
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Name : |
Mr. A P Gandhi |
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Designation : |
Director |
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Name : |
Mr. Niten Malhan |
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Designation : |
Director |
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Name : |
Mr. V K Chopra |
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Designation : |
Director |
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Name : |
Dr. Adarsh Kishore |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Gupta |
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Designation : |
Company Secretary |
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Name : |
Ms. Surekha |
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Designation : |
Accounts Department |
SHAREHOLDING PATTERN
As On 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
25271476 |
20.25 |
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|
51622178 |
41.37 |
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Sub Total |
76893654 |
61.63 |
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|
|
|
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Total shareholding of Promoter and Promoter Group (A) |
76893654 |
61.63 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1149536 |
0.92 |
|
|
7863 |
0.01 |
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|
40000 |
0.03 |
|
|
32170144 |
25.78 |
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Sub Total |
33367543 |
26.74 |
|
|
|
|
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|
1551525 |
1.24 |
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|
|
|
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|
5404230 |
4.33 |
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|
728022 |
0.62 |
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|
6788038 |
5.44 |
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|
163026 |
0.13 |
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|
602906 |
0.48 |
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|
52270 |
0.04 |
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|
149836 |
0.12 |
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|
5820000 |
4.66 |
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Sub Total |
14513615 |
11.63 |
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Total Public shareholding (B) |
47881158 |
38.37 |
|
Total (A)+(B) |
124774812 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0 |
|
Total (A)+(B)+(C) |
124774812 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Electrical Products. |
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Products : |
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Terms : |
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Selling : |
L/C / Cash / Credit |
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Purchasing : |
L/C / Cash / Credit |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Switchgears |
Nos./Poles |
117510000 (Nos.) |
45631363 (Poles) |
|
Cables |
Km. |
1150000 |
515514 |
|
Lighting and Fixtures |
Nos. |
55500000 |
25612318 |
|
Electrical Consumers Durables |
Nos. |
4800000 |
2997933 |
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Others |
Nos. |
-- |
28617 |
GENERAL INFORMATION
|
Customers : |
Retailers and End Users |
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No. of Employees : |
1000 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
Note: (A) Term loan is from Canara Bank, Prime Corporate Branch-II, i) Equitable
mortgage of Company's factory land and building situated at Village
Gullarwala, Baddi, Himachal Pradesh and 204 and 204A, MIA Alwar, Rajasthan ii)
Hypothecation of plant and machinery and other fixed assets purchased out of
the above said loan. (B) a) Working
capital limits are under consortium of Canara Bank, Corporation Bank, Union
Bank of India, IDBI Bank Limited, State Bank of India, Standard Chartered
Bank and Yes Bank Limited. b) Working
capital limits from consortium banks are secured by way of: i) pari-passu
first charge by way of hypothecation on stocks of raw material, semi-finished
goods, finished goods, stores and spares, bill receivables, book debts and
all movable and other current assets of the Company. ii) pari-passu
first charge by way of Equitable Mortgage on land and building at 14/3, iii) pari-passu second charge by way of hypothecation on plant and
machinery, generators, furniture and fixtures, electric fans and
installation. |
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Banking
Relations : |
-- |
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Auditors 1: |
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Name : |
V.P. Bansal and Company Chartered Accountants |
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Address : |
B-11, Sector – 2, Noida, |
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Auditors 2: |
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Name : |
S.R. Batliboi and Company Chartered Accountants |
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Address : |
Golf View Corporate Tower-B, Sector-42, |
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Wholly Owned Subsidiary : |
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Wholly Owned Subsidiary of Havells Holdings Limited : |
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Wholly Owned Subsidiary of Havells Malta Limited : |
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Wholly Owned Subsidiary of Havells |
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Wholly Owned Subsidiary of Havells |
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Wholly Owned Subsidiary of SLI |
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*49% held by Flowil International Lighting
(Holding) B.V. |
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Wholly Owned
Subsidiary of Flowil
International Lighting (Holding) B.V. : |
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Wholly Owned
Subsidiary of Havells Sylvania
Lighting France SA : |
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Wholly Owned
Subsidiary of |
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Wholly Owned
Subsidiary of Havells SLI de
Mexico SA de CV : |
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Wholly Owned
Subsidiary of Havells Sylvania
Export N.V. : |
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Wholly Owned
Subsidiary of Havells Sylvania
Colombia S.A. : |
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Wholly Owned
Subsidiary of Flowil
International Lighting (Holding) B.V. : |
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Wholly Owned Subsidiary of Havells Sylvania Europe Limited : |
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Wholly Owned
Subsidiary of Havells Sylvania
Holdings BVI-1 Limited : |
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Wholly Owned Subsidiary of Havells Sylvania Asia Pacific Limited: |
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99% held by Flowil International Lighting (Holding) B.V. and 1%
held by Havells Sylvania Europe Limited : |
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74% held by Flowil
Lighting International (Holding) B.V. and 26% hold by Havells Sylvania ( |
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99.95% held by of
Havells Sylvania Europe Limited And 0.05 % held Havells Sylvania UK Limited : |
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# 49% of shares held by Flowil International
Lighting (Holding) B.V. and 51% held by minorities : |
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Associates : |
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CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
200100000 |
Equity Shares |
Rs.5/- each |
Rs.1000.500 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
124774812 |
Equity Shares |
Rs.5/- each |
Rs.623.900
Millions |
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 |
623.900 |
623.900 |
311.900 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
15459.300 |
12784.200 |
11040.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
16083.200 |
13408.100 |
11351.900 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
970.800 |
1336.200 |
1158.100 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
970.800 |
1336.200 |
1158.100 |
|
|
DEFERRED TAX LIABILITIES |
556.100 |
536.200 |
270.400 |
|
|
|
|
|
|
|
|
TOTAL |
17610.100 |
15280.500 |
12780.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7775.600 |
7086.100 |
5715.400 |
|
|
Capital work-in-progress |
563.900 |
216.900 |
296.900 |
|
|
|
|
|
|
|
|
INVESTMENT |
7750.700 |
7154.700 |
5317.100 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6488.800
|
4698.500
|
3306.500
|
|
|
Sundry Debtors |
1597.100
|
1120.700
|
794.700
|
|
|
Cash & Bank Balances |
1362.100
|
491.800
|
683.100
|
|
|
Other Current Assets |
120.000
|
94.900
|
97.600
|
|
|
Loans & Advances |
811.300
|
838.200
|
730.600
|
|
Total
Current Assets |
10379.300
|
7244.100
|
5612.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
5424.600
|
3318.600
|
2713.200
|
|
|
Other Current Liabilities |
2145.000
|
2650.600
|
1247.100
|
|
|
Provisions |
1289.800
|
452.100
|
201.400
|
|
Total
Current Liabilities |
8859.400
|
6421.300
|
4161.700 |
|
|
Net Current Assets |
1519.900
|
822.800
|
1450.800
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.200 |
|
|
|
|
|
|
|
|
TOTAL |
17610.100 |
15280.500 |
12780.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (net) |
36156.100 |
28816.500 |
24735.200 |
|
|
|
Other Income |
71.700 |
177.200 |
145.300 |
|
|
|
TOTAL |
36227.800 |
28993.700 |
24880.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
20515.900 |
17064.400 |
|
|
|
|
Purchases of traded goods |
3533.800 |
3015.400 |
|
|
|
|
Increase/ Decrease in inventories |
(1138.800) |
(1138.000) |
|
|
|
|
Employee Benefits Expenses |
1417.100 |
1103.400 |
|
|
|
|
Other Expenses |
7271.200 |
5365.800 |
|
|
|
|
TOTAL |
31599.200 |
25411.000 |
21627.300 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
4628.600 |
3582.700 |
3253.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
443.900 |
191.100 |
117.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
4184.700 |
3391.600 |
3135.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
446.600 |
293.400 |
232.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
3738.100 |
3098.200 |
2903.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
683.800 |
682.900 |
621.500 |
|
|
|
|
|
|
|
|
|
Add |
Extraordinary
Items |
0.000 |
4.700 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
3054.300 |
2420.500 |
2281.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7783.700 |
5968.200 |
4184.100 |
|
|
|
|
|
|
|
|
|
Add |
Transferred in pursuance
of Scheme of Amalgamation |
340.400 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
305.500 |
242.500 |
227.000 |
|
|
|
Interim Dividend |
0.000 |
0.000 |
75.200 |
|
|
|
Proposed Dividend |
811.000 |
311.900 |
156.000 |
|
|
|
Corporate Dividend Tax |
131.600 |
50.600 |
39.300 |
|
|
BALANCE CARRIED
TO THE B/S |
9930.300 |
7783.700 |
5968.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1712.900 |
1738.200 |
2110.400 |
|
|
|
Merchant Trade Sales |
12.600 |
13.300 |
16.700 |
|
|
|
Reimbursement of Expenses |
0.000 |
7.700 |
20.100 |
|
|
TOTAL EARNINGS |
1725.500 |
1759.200 |
2147.200 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and components |
2118.200 |
2902.500 |
2000.700 |
|
|
|
Traded goods |
1614.100 |
0.000 |
0.000 |
|
|
|
Machinery |
169.100 |
243.600 |
295.000 |
|
|
|
Spare parts |
19.500 |
1.100 |
0.400 |
|
|
|
R&D |
0.500 |
1.500 |
1.200 |
|
|
|
Dies and Tools |
1.900 |
0.000 |
6.800 |
|
|
TOTAL IMPORTS |
3923.300 |
3148.700 |
2304.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
24.48 |
19.36 |
36.57 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
10353.100 |
9642.200 |
10583.700 |
|
Total Expenditure |
9131.100 |
8450.600 |
9221.900 |
|
PBIDT (Excl OI) |
1222.000 |
1191.600 |
1361.800 |
|
Other Income |
2.400 |
120.700 |
15.300 |
|
Operating Profit |
1224.400 |
1312.300 |
1377.100 |
|
Interest |
102.000 |
99.400 |
57.500 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
1122.400 |
1212.900 |
1319.600 |
|
Depreciation |
118.100 |
158.500 |
146.200 |
|
Profit Before Tax |
1004.300 |
1054.400 |
1173.400 |
|
Tax |
203.500 |
184.700 |
226.800 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
800.800 |
869.700 |
946.600 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
800.800 |
869.700 |
946.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
8.43
|
8.35
|
9.17
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.34
|
10.75
|
11.74
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
20.59
|
21.62
|
25.63
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.23
|
0.23
|
0.25
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
6.04
|
9.97
|
10.20s
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.17
|
1.13
|
1.36
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
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 |
LITIGATION DETAILS
CASE PENDING
IN THE HIGH COURT OF
07.03.2013
Present : Mr.Peeyosh Kalra and Ms.Nandini Phul, Advs. for the plaintiff.
Mr. Ashwin Kumar and Ms.Roohi Kohli,
Advs. for defendant.
CS(OS) 883/2010 and I.A. 6032/2010
List on 5.4.2013.
G.S.SISTANI, J
MARCH 07, 2013
msr
24-34 and 19.
FY 2012 IN RETROSPECT:
Subject, on a stand-alone basis had net sales of Rs.36160.000 Millions in 2011-12 against Rs. 28820.000 Millions in 2010-11. The operating profit before finance cost, depreciation and tax was Rs. 4630.000 Millions in financial year 2011-12 against Rs. 3580.000 Millions in financial year 2010-11. The comparison includes foreign exchange gain of Rs. 103.000 Millions in 2010-11 and foreign exchange loss of Rs. 34.000 Millions in 2011-12. Profit after tax was Rs.3050.000 Millions in current year 2011-12 against Rs. 2420.000 Millions in previous year 2010-11.
BUSINESS HIGHLIGHTS:
Entry into Home
Appliances
The Company, already a leading player in the Electrical and
Power Equipment Sector, Lighting and Fixtures Segment and Consumer durables
like fans in
Subject
The operating profit margins of it had improved during the current year 2011-12 to 8.3% from 5.9% in the previous year 2010-11. The profit after tax shows the similar trend of 46% growth during the financial year 2011-12.
Joint Venture with
Shanghai Yaming Lighting Company Limited
During the year, the company has entered into a joint
venture named “Jiangsu Subject Sylvania Lighting Company Limited” with Shanghai
Yaming Lighting Company Limited, in People’s Republic of
Expansion of
Switchgear Business
The Company has expanded its switchgear manufacturing operations by putting an additional plant at Sahibabad Industrial Area, Ghaziabad (U.P.), to cater to both domestic and international markets.
The company has expanded the whole range of switchgears. Post expansion, the company has targeted to double the revenue of switchgear segment to INR 18000.000 Millions from the current topline contribution of INR 9000.000 Millions in the next three years.
The Company has introduced new generation series “Cosmic Star” in Control gear segment, which covers contactor range from 4A – 630A in 3P and 4P execution and overload relays 0.1A – 93A in direct version and 30A – 630A in electronic version. The new series has a robust design and manufactured to world class standards.
Product Lounge on
Wheels
The Company has started a promotional campaign to showcase the full range of its Industrial products at the customer doorstep. The Mobile Van was flagged off by Shri Qimat Rai Gupta, CMD, Subject India Limited From the corporate office of QRG Group in Noida.
The Objective of the promotional campaign was to showcase the full range of industrial switchgear products, motors, capacitors, industrial lighting and cables to the technical experts of the Industry who understand the products, its quality and the features. The display lounge is covering all Industrial hubs and construction sites in Delhi NCR region.
Opening of Subject
Galaxy – One Stop Shop
The company has recently taken the initiative to reach
directly to the consumers through “Subject Galaxy” – a one stop Brand Centre
for all consumer appliances; lighting and electrical needs. These Brand Centres
provide the customers with the complete range of consumer durable products
manufactured by Subject and facilitate them with personalised services and
support. Currently they have more than 135 such Galaxies across the country
including one galaxy opened outside
AMALGAMATION OF
SUBSIDIARY COMPANY
During the year, the Hon’ble High Court of New Delhi vide its order dated 27.09.2011 approved the scheme of amalgamation through which Standard Electrical Limited (a 100% Subsidiary of the Company) merged with the Company. Further, the certified true copy of the Hon’ble High Court Order has been filed in prescribed form to Registrar of Companies, NCT Delhi and Haryana to make the order effective.
Earlier, the Shareholders of the Company had approved the Scheme of Amalgamation in the Court Convened
Meeting held on 02nd April, 2011. The Appointed Date for the Scheme was 01st April, 2011.
AWARDS AND
RECOGNITION
National Energy
Conservation Award for Ceiling Fans
In appreciation of the achievements in Energy Conservation in the manufacturing of BEE star labeled appliances (Ceiling Fans) sector for the year 2011, the Company has been awarded for the Second Consecutive Year the “National Energy Conservation Award for Ceiling Fans” on 19th Dec 2011 by Minister of Power, Government of India.
CREDIT RATING
ICRA
ICRA Limited is one of the most experienced Credit Rating Agencies in the country today. The Grading Services offered by ICRA employ pioneering concepts and methodologies.
ICRA has assigned a valuation grade of “C” to the company’s stock on a grading scale of “A to E”, which indicates that the stock is “fairly valued” on a relative basis while on fundamental grade, stock has been maintained at “4” which represents Strong Fundamentals.
The ratings continue to reflect an expected increase in Subject market share in the consumer appliances division together with its plans to export switchgears is expected to drive company’s growth in the medium term.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
Management Summary
The Consumer’s Choice
Subject has transformed itself into a truly electrical
consumer brand and is a part of millions of homes in
Fascinated with the consumer preference for Subject world class products, they had launched the complete range of small appliances in the premium category. The idea is not to just provide another product to the consumer but to provide an experience of comfort, life style and ultimate satisfaction of the changing needs.
Subject is a dealer friendly company and enjoys a healthy and long standing relationship with dealers evident from the increasing dealer association. Striving continuously to understand the requirements of dealers, they align with growth of dealers. The journey from a switchgear manufacturing company to a complete basket of electrical consumer products has been fascinating. The mantra remains the same as it was forty years ago, to create better value for their stakeholders and to service their customers for best of their needs.
Subject
Thus their continuous strong performance has been the result of effective implementation of strategies in response to the macro environment.
Indian Industry
Overview
The Indian electrical industry operates in a highly dynamic and competitive environment. There is considerable growth potential in the industry led by the changing consumption pattern. Increasing disposable incomes and exposure to media have shaped the aspirations of the consumer fuelling the demand for premium consumables. Thus sustained economic growth and modernization has led to changing consumption patterns.
Global industry
Overview
Turning to the global economic conditions during the fiscal year, European sovereign debt crisis led the volatility in the macro environment. There is a divergence of economic conditions across global regions, as well as a divergence of recovery within some regions. While global economic conditions are more stable than in the depths of the European sovereign debt crisis late last year, underlying economic condition is still fragile and fluid in many parts of the world.
SUBJECT INDIA LIMITED
(STAND ALONE) SEGMENT DISCUSSION
SWITCHGEARS
Subject is well positioned in the organised Switchgears market and holds a considerable market share. The brand and trade/ dealer association backed by products made through latest technology has helped us to consolidate their position in this segment. The switchgears segment comprises of the domestic and the industrial switchgears, electrical wiring accessories, industrial motors and capacitors.
Out of the total domestic switchgears market which largely
includes miniature circuit breakers (MCB), approx. 50% is dealer/ trade driven while
rest led by institutions. Subject is present in the trade channel and enjoy
prominent position in this network and also in the overall domestic switchgear
market in
Subject enjoys its historical presence in the industrial
switchgear market and would continue to focus on its strength to drive growth
in this segment. In the last financial year they consolidated the business of
Standard Electrical in Subject. Capitalizing on the distribution network of
Switchgears division registered net revenue of Rs 8961.500 Millions during financial year 2011-12 as compared to Rs 7343.900 Millions during financial year 2010-11, showing a growth of 22%. They have been able to maintain the contribution margins in this segment at 37%.
CABLE
Since inception of this division, Subject has invested in
the manufacturing infrastructure which has today become one of the largest in
Domestic cables form an integral part of the electrical connections in a building and frequent replacement of the same is cumbersome. The conversion from unorganized to organized market is visible due to quality awareness and branding exercises done by companiesin the recent past. Subject position has improved in this market through quality products and advertisements on media, a unique feature for this market in the past.
On the other side industrial underground cable comprises of industrial products used in commercial or industrial applications. With the shared distribution channel, Subject is well position in this market. The fluctuations on raw material prices which are largely metal commodities are being handled categorically through low inventory levels in the entire value chain and passing on the impact in lower time gap.
Cable division registered a growth of 29% in net revenue at Rs 15929.900 Millions during financial year 2011-12 as compared to Rs 12318.100 Millions during financial year 2010-11. The contribution margins grew to 9.2% of net revenue during financial year 2011-12 from 7.3% during last financial year 2010-11.
LIGHTING AND FIXTURES
Launched in 2003 in a short period their presence has been recognized in the consumer lighting space through energy savings lamps (CFL) and luminaries markets. The luminaries constitute deliberate application of light to achieve aesthetic effect keeping in consideration the consumers changing preferences. With its focus on energy efficiencies, aesthetics and designs suited to modern lifestyle, Subject would continue to gain momentum in the consumer and professional luminaries.
The division registered net revenue of Rs 5543.900 Millions during financial year 2011-12 as compared to Rs 4446.700 Millions during financial year 2010-11, a growth of 25%. The contribution margins had also improved by 700 bps to 25% in the financial year 2011-12 from 18% in the last financial year 2010-11.
ELECTRICAL CONSUMER
DURABLES
Subject has made a mark in the fan industry in
The electrical consumer durables division registered net revenue of Rs 5720.800 Millions during financial year 2011-12 as compared to Rs 4691.500 Millions during financial year 2010-11, a growth of 22% .The contribution margins had shown an improving trend with the similar growth.
FIXED
ASSETS:
Tangible
Assets
- Office Premises
- Plant and Machinery
- Generator
- Furniture and Fixtures
- Electrical Fans and Installations
- Water Supply Installations
- Weighting Scale
- EDP Equipments
- Office Equipments
- Air Conditioner
- Vehicles
- R and D Equipments
Intangible
Assets
- Computer
Software
- Technical
know-how
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED DECEMBER 31, 2012
(Rs. In Millions)
|
PARTICULARS |
Quarter
Ended |
Quarter
Ended |
Year
Ended |
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
Income from operations |
|
|
|
|
1. a) Sales/Income from operations |
10520.900 |
9581.200 |
30373.300 |
|
b) Other Operating Income |
62.800 |
61.000 |
180.600 |
|
Total Income from operations
(Net) |
10583.700 |
9642.200 |
30553.900 |
|
2. Expenses |
|
|
|
|
a) Cost of materials consumed |
5166.100 |
5362.900 |
16147.400 |
|
b) Purchases of stock-in trade |
1070.300 |
21040.400 |
3024.700 |
|
c) Change in inventories of
finished goods, work-in-progress and stock-in-trade |
362.800 |
(515.300) |
(158.100) |
|
d) Employee benefits expense |
472.100 |
433.200 |
1337.000 |
|
e) Depreciation and
amortisation expense |
146.200 |
158.500 |
422.800 |
|
f) Foreign Exchange
Fluctuation loss/(gain) |
36.900 |
(101.200) |
20.200 |
|
g) Other expenses |
2113.700 |
2129.400 |
6331.200 |
|
Total Expenses |
9368.100 |
8507.900 |
27125.200 |
|
3. Profit(+)/Loss(-) from Operations before Other Income, Interest
& Exceptional Items (1-2) |
1215.600 |
1134.300 |
3428.700 |
|
4. Other Income |
15.300 |
19.500 |
62.300 |
|
5. Profit(+)/Loss(-) before Interest & Exceptional Items (3+4) |
1230.900 |
1153.800 |
3491.000 |
|
6. Finance Cost |
57.500 |
99.400 |
258.900 |
|
7. Profit(+)/Loss(-) before Exceptional Items(5-6) |
1173.400 |
1054.400 |
3232.100 |
|
8. Exceptional Items |
- |
- |
- |
|
9. Profit(+)/Loss(-) from ordinary activities before Tax (7+8) |
1173.400 |
1054.400 |
3232.100 |
|
10. Tax Expense |
226.800 |
184.700 |
615.000 |
|
11. Net Profit(+)/Loss(-) from Ordinary Activities after Tax (9-10) |
946.600 |
869.700 |
2617.100 |
|
12. Extraordinary Items (net of tax expense Rs.) |
- |
- |
- |
|
13. Net Profit for the period (11+12) |
946.600 |
869.700 |
2617.100 |
|
14. Minority Interest |
- |
- |
- |
|
15. Net Profit/(Loss) after tax, minority interest (13-14) |
946.600 |
869.700 |
2617.100 |
|
16. Paid up equity share capital (Face value of Rs.5/- each) |
623.900 |
623.900 |
623.900 |
|
17. Reserve excluding Reevaluation Reserve as per Balance sheet of the previous accounting year |
- |
- |
- |
|
18. Earning per share (before extraordinary items) ( of Rs.5/-each) (not annualised) : |
|
|
|
|
(a) Basic and Diluted |
7.59 |
6.97 |
20.97 |
|
Earning
per share (after extraordinary items) ( of Rs.5/-each) (not annualised) : |
|
|
|
|
(a) Basic and Diluted |
7.59 |
6.97 |
20.97 |
|
A. Particular Shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- No. of shares |
47961960 |
47961960 |
47961960 |
|
- Percentage of shareholding |
38.44 |
38.44 |
38.44 |
|
2.Promoters and Promoter group Share holding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- No. of shares |
NIL |
NIL |
NIL |
|
- Percentage of shares (as a % of the total shareholding of Promoter and promoter group) |
N.A |
N.A |
N.A |
|
- Percentage of shares (as a % of the total share capital of the company) |
N.A. |
N.A. |
N.A. |
|
b) Non-encumbered |
|
|
|
|
-No. of shares |
76812852 |
76812852 |
76812852 |
|
- Percentage of shares (as a % of the total shareholding of Promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
- Percentage of shares (as a % of the total share capital of the company) |
62.59 |
62.59 |
62.59 |
|
Particular |
Quarter Ended |
|
31.12.2012 |
|
|
Investor Complaints |
|
|
Pending at the beginning of the quarter |
NIL |
|
Received during the quarter |
3 |
|
Disposed of during the quarter |
3 |
|
Remaining unresolved at the end of the quarter |
NIL |
Notes:
The figures for the
current period in this statement have been reported in the format recommended
as per SEBI circular dated 16th April 2012. Previous period figures have been
reclassified / regrouped to conform to current period classification.
The above results
have been reviewed by the Audit Committee and approved by the Board of
Directors at their meeting held on 29th October, 2012. These results have been
limited reviewed by the Statutory Auditors.
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particular |
Quarter Ended |
Quarter Ended |
Year Ended |
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
Net Segment
Revenue |
|
|
|
|
a)
Switchgears |
3696.600 |
2551.200 |
7662.700 |
|
b)
Cable and Wires |
4085.400 |
3906.500 |
12305.200 |
|
c)
Lighting & Fixtures |
1770.000 |
1561.100 |
4829.300 |
|
d)
Electrical Consumer Durables |
2031.700 |
1623.400 |
5756.700 |
|
Total |
10583.700 |
9642.200 |
30553.900 |
|
Less : Inter Segment Revenue |
- |
- |
- |
|
Sales/ Income
from Operations |
10583.700 |
9642.200 |
30553.900 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
(Profit(+)/ Loss(-) before Tax and Interest from each Segment) |
|
|
|
|
a)
Switchgears |
949.700 |
817.300 |
2675.900 |
|
b)
Cable and Wires |
414.000 |
422.600 |
1261.400 |
|
c)
Lighting & Fixtures |
422.700 |
351.300 |
1118.900 |
|
d)
Electrical Consumer Durables |
508.400 |
367.000 |
1407.600 |
|
Total |
2294.800 |
1988.200 |
6463.900 |
|
Less : (i) Finance cost |
57.500 |
99.400 |
258.900 |
|
(ii) Other un-allocable expenses net of
un-allocable income |
1063.900 |
834.400 |
2972.800 |
|
Total Profit
before Tax |
1173.400 |
1054.400 |
3232.100 |
|
|
|
|
|
|
Capital Employed |
|
|
|
|
(Segment Assets - Segment Liabilities) |
|
|
|
|
a)
Switchgears |
3788.300 |
4114.100 |
3788.300 |
|
b)
Cable |
2326.000 |
2351.400 |
3236.000 |
|
c)
Lighting & Fixtures |
2628.600 |
2975.300 |
2628.600 |
|
d)
Electrical Consumer Durables |
1326.400 |
1393.000 |
1326.400 |
|
e)
Others unallocable |
7721.000 |
6919.900 |
7721.000 |
|
Total |
18700.300 |
17753.700 |
18700.300s |
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 55.01 |
|
|
1 |
Rs. 83.98 |
|
Euro |
1 |
Rs. 71.94 |
INFORMATION DETAILS
|
Report Prepared
by : |
VNT |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
64 |
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.