MIRA
INFORM REPORT
|
Report Date : |
08.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
BUTTERFLY GANDHIMATHI APPLIANCES LIMITED |
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Registered
Office : |
143, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
24.02.1986 |
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Com. Reg. No.: |
18-012728 |
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Capital
Investment / Paid-up Capital : |
Rs. 178.968 millions |
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CIN No.: [Company Identification
No.] |
L28931TN1986PLC012728 |
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|
Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of comprehensive range of Home Appliances, Kitchen
Products and Cookware. |
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No. of Employees
: |
Not Available |
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RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 8100000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Butterfly Group. It is an established company
having fine track record. Financial position of the company appears to be sound. Overall
fundamentals of the company appears to be sound and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. Company can be considered good for normal 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says the
latest India Development Update report released by the World Bank. The report
says that the adverse effects of rupee depreciation are likely to be offset by
the gains in the exports performance due to improved external competitiveness.
Since May this year, the local currency has depreciated substantially and fell
to a record level of Rs 68.85 to a dollar on August,
28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs 41900 for 16 GB
variant) and 5s (Rs 53500 for 16GB variant) has been
launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from January
1 next year, said Rural Development Minister Jairam Ramesh. The Act replaces a 119 year old registration. The
Securities and Exchange Board of India has approved the trading of currency
futures on the Bombay Stock Exchange. The exchange plans to launch the currency
futures platform with advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: A- |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
03 April 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating: A2+ |
|
Rating Explanation |
Strong degree of safety and low credit rsik. |
|
Date |
03 April 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 : |
143, Pudupakkam Village, Vandalur
– Kelambakkam Road, Kelambakkam,
Kancheerpuram – 603103 Tamilnadu,
India |
|
Tel. No.: |
91- 44 - 2747422 / 2747410 |
|
Fax No.: |
91- 44 – 27474126 |
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E-Mail : |
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Website : |
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Head Office: |
No.34, (2nd Floor), Rajiv Gandhi Salai, Egattur Village, Chennai –603013, Tamil Nadu, India |
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E-Mail : |
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Corporate Office : |
E – 34, Sucons Oki Info Park, Rajiv Gandhi Salai, Kancheepuram District Navalur –
603103 Tamilnadu |
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|
Factory : |
377, Anna Salai Teynampet,
Chennai – 600018, Tamilnadu India |
|
Tel. No.: |
91-44- 24345313 / 24350685 / 24350682 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. V.M. Lakshminarayanan |
|
Designation : |
Chairman and Managing Director |
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|
Name : |
Mr. V.M. Balasubramaniam, |
|
Designation : |
Vice Chairman and Director |
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|
Name : |
Mr. V.M. Seshadri, |
|
Designation : |
Managing Director |
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|
Name : |
Mr. V.M. Gangadharam |
|
Designation : |
Executive Director |
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|
Name : |
Mr. V.M. Kumaresan, |
|
Designation : |
Executive Director-Technical |
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|
Name : |
Mr. G.S. Samuel |
|
Designation : |
Director |
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|
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|
Name : |
Mr. A. Balasubramanian |
|
Designation : |
Director |
|
Date of Birth/Age : |
05.01.1949 |
|
Qualification : |
Chartered Accountant |
|
Date of Appointment : |
14.11.2011 |
|
|
|
|
Name : |
Mr. K.J. Kumar |
|
Designation : |
Director |
|
Date of Birth/Age : |
01.04.1944 |
|
Qualification : |
Diploma In Mechanical Engineering |
|
Date of Appointment : |
11.05.2012 |
|
|
|
|
Name : |
Mr. R. S. Parekh |
|
Designation : |
Nominee Director |
|
Date of Birth/Age : |
12.05.1968 |
|
Qualification : |
M. Com, Chartered Accountant And Cost And Works Accountant |
|
Date of Appointment : |
11.05.2012 |
|
|
|
|
Name : |
Mr. M. Padmanabhan |
|
Designation : |
Director |
|
Date of Birth/Age : |
20.11.1949 |
|
Qualification : |
B.COM, F.C.A |
|
Date of Appointment : |
30.01.1999 |
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|
|
|
Name : |
Mr. K. Ganeshan |
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Designation : |
Director |
|
Date of Birth/Age : |
01.10.1931 |
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Qualification : |
B.COM, F.C.A |
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|
|
|
Name : |
Mr. V.R. Lakshminarayanan |
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Designation : |
Director |
|
Date of Birth/Age : |
15.03.1931 |
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Qualification : |
IPS (Retd) |
|
Date of Appointment : |
11.01.1993 |
|
|
|
|
Name : |
Mr. D. Krishnamurthy |
|
Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. D. Krishnamurthy |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5017613 |
28.06 |
|
|
6553665 |
36.66 |
|
|
11571278 |
64.72 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
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|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
Mutual Funds / UTI |
384035 |
2.15 |
|
|
-- |
|
|
|
-- |
|
|
Reliance Alternative Investments Fund Private Equity Scheme - (acting through Reliance Alternative
Investments Services Private Limited) |
2451000 |
13.71 |
|
|
2835035 |
15.86 |
|
|
|
|
|
|
466091 |
2.61 |
|
|
|
|
|
|
1914805 |
10.71 |
|
|
1027254 |
5.75 |
|
|
|
|
|
|
65088 |
0.36 |
|
|
|
|
|
|
3473238 |
19.43 |
|
Total Public shareholding (B) |
6308273 |
35.28 |
|
Total (A)+(B) |
17879551 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total (A)+(B)+(C) |
17879551 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of comprehensive range of Home Appliances, Kitchen
Products and Cookware. |
PRODUCTION STATUS
|
Particulars |
Installed
Capacity |
Actual
Production |
|
|
|
2011 (9Months) |
2011 (9Months) |
|
|
LPG Stove |
540,000 |
393,020 |
|
|
Mixer - Grinder |
360,000 |
347,684 |
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|
Table-top Wet Grinder |
150,000 |
54,532 |
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|
Cooker / Pan |
0.000 |
422,509 |
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|
Flasks |
0.000 |
38,193 |
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GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
State Bank of Travancore ·
IDBI Bank ·
Bank of Baroda ·
Axis Bank ·
NG Vysya
Bank |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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|
Name : |
Rudhrakumar
Associates Chartered Accountants |
|
Address: |
11, Mangesh Street, T.Nagar Chennai – 600 017, Tamilnadu,
India |
|
Tel No.: |
91-44-24344746/24346586 |
|
Fax No.: |
91-44-24336527 |
|
Email: |
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|
|
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|
Enterprises in which key management personnel and their Relatives have
Significant influence: |
·
LLM Appliances Limited ·
Butterfly Constructions Limited ·
Butterfly Marketing Private Limited ·
V.M. Chettiar and Sons
India Private Limited ·
Butterfly Quality Center Private Limited ·
Chrysalis Home Needs Private Limited ·
Swaminathan Enterprises
Private Limited ·
Sivagurunathan Industries ·
Butterfly Home Appliances ·
East West Combined Industries ·
Vetrivel Transport ·
Mrinalini Industries |
CAPITAL STRUCTURE
As on 26.07.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17879551 |
Equity Shares |
Rs.10/- each |
Rs 178.796 Millions |
|
|
|
|
|
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
17879551 |
Equity Shares |
Rs.10/- each |
Rs 178.795 Millions |
|
|
Add : Forfeited shares (amount originally paid up) |
|
Rs. 0.173 Millions |
|
|
Total |
|
Rs. 178.968 Millions |
NOTE:
Reconciliation - Share Capital
|
Particulars |
No. of Shares |
Share Capital Rs. In Millions |
|
At 1st April, 2012 |
15428551 |
154.285 |
|
Arising on account of issue of 24,51,000
shares of Rs.10/- each at a premium of
Rs..398/- per equity share aggregating Rs.1000.008 Millions in favour of M/s. Reliance Alternative Investments Services
Private Limited) received during the year |
2451000 |
24.510 |
|
At 31st March, 2013 |
17879551 |
178.795 |
Details of Major Shareholders
|
Shareholders Name |
31.03.2013 |
|
|
|
No. of Shares |
% of Holding |
|
LLM Appliances Limited |
3,046,565 |
17.04% |
|
Butterfly Marketing Private Limited |
2,835,000 |
15.86% |
|
Reliance Alternative Investments Services Private Limited |
2,451,000 |
13.71% |
|
Mr. V.M. Seshadri |
1,250,673 |
6.99% |
|
Mr. V.M. Lakshminarayanan
|
1,000,965 |
5.60% |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
178.968 |
154.458 |
96.519 |
|
(b) Reserves & Surplus |
1833.900 |
601.726 |
316.976 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
2012.868 |
756.184 |
413.495 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
104.980 |
353.876 |
308.435 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
22.227 |
24.243 |
24.886 |
|
Total Non-current Liabilities (3) |
127.207 |
378.119 |
333.321 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
370.818 |
709.535 |
450.486 |
|
(b) Trade payables |
2204.049 |
729.332 |
305.270 |
|
(c) Other current
liabilities |
517.311 |
256.836 |
50.667 |
|
(d) Short-term provisions |
183.391 |
74.314 |
120.798 |
|
Total Current Liabilities (4) |
3275.569 |
1770.017 |
927.221 |
|
|
|
|
|
|
TOTAL |
5415.644 |
2904.320 |
1674.037 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
930.260 |
758.158 |
267.537 |
|
(ii) Intangible Assets |
50.443 |
24.000 |
25.600 |
|
(iii) Capital
work-in-progress |
38.395 |
7.914 |
9.379 |
|
(iv)
Intangible assets under development |
0.000 |
12.777 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
33.725 |
45.520 |
63.137 |
|
(d) Long-term Loan and Advances |
13.216 |
2.127 |
2.433 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1066.039 |
850.496 |
368.086 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1587.941 |
717.287 |
470.030 |
|
(c) Trade receivables |
1954.930 |
943.997 |
420.482 |
|
(d) Cash and cash equivalents |
462.574 |
222.013 |
90.406 |
|
(e) Short-term loans and
advances |
344.160 |
170.527 |
325.033 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
4349.605 |
2053.824 |
1305.951 |
|
|
|
|
|
|
TOTAL |
5415.644 |
2904.320 |
1674.037 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7302.091 |
5918.197 |
2031.979 |
|
|
|
Other Income |
51.376 |
56.375 |
27.228 |
|
|
|
TOTAL (A) |
7353.467 |
5974.572 |
2059.207 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
4447.883 |
3385.550 |
1142.007 |
|
|
|
Purchases of Stock-in-Trade |
734.851 |
579.624 |
300.921 |
|
|
|
Changes in Inventories of Finished Goods, Work-in-Process and
Stock-in-Trade |
(264.050) |
(76.101) |
(119.208) |
|
|
|
Employee Benefit Expenses |
515.468 |
319.777 |
113.252 |
|
|
|
Other Expenses |
1170.103 |
1133.596 |
393.156 |
|
|
|
Exceptional Items |
|
|
|
|
|
|
Insurance Claim received |
0.000 |
(0.593) |
(11.779) |
|
|
|
Gratuity provision reversed |
0.000 |
(6.797) |
0.000 |
|
|
|
Excess provision reversed on Insurance claim |
0.000 |
4.925 |
0.000 |
|
|
|
Long term Repayment charges |
8.717 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
6612.972 |
5339.981 |
1818.349 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
740.495 |
634.591 |
240.858 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
223.315 |
175.489 |
67.425 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
517.180 |
459.102 |
173.433 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
40.059 |
16.701 |
9.546 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
477.121 |
442.401 |
163.887 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
142.891 |
138.309 |
11.974 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
334.230 |
304.092 |
151.913 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
612.388 |
308.297 |
156.384 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
946.618 |
612.388 |
308.297 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods calculated on FOB basis |
64.741 |
70.368 |
30.021 |
|
|
TOTAL EARNINGS |
64.741 |
70.368 |
30.021 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
142.357 |
9.208 |
60.698 |
|
|
|
Components and spares parts |
534.788 |
46.308 |
33.663 |
|
|
|
Capital goods |
37.619 |
28.139 |
0.000 |
|
|
|
Finished Goods |
531.013 |
1.858 |
7.489 |
|
|
TOTAL IMPORTS |
1245.777 |
85.513 |
101.850 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.69 |
19.71 |
15.77 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.55
|
5.09 |
7.37 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.53
|
7.48 |
8.07 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.93
|
15.59 |
10.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.24
|
0.59 |
0.40 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.24
|
1.41 |
1.84 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.33
|
1.16 |
1.41 |
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 |
No |
|
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 |
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs. in Millions) |
31.03.2012 (Rs. in Millions) |
|
Long-term
Borrowings |
|
|
|
Others |
|
|
|
Security Deposit from Distributors |
40.931 |
46.832 |
|
From a Director |
0.611 |
0.611 |
|
Religare Finvest Limited
(For settlement of liabilities of Gangadhram
Appliances Limited on its Merger as per BIFR order dated 17th August, 2011) |
0.000 |
236.202 |
|
Total |
41.542 |
283.645 |
REVIEW OF
OPERATIONS
During the period, sales turnover recorded impressive growth of 25.62%
and profit before interest and depreciation also improved by 18.52% as compared
to the previous financial year. After providing for interest, depreciation and
exceptional and extraordinary items before tax, the Company earned a profit of
Rs..477.100 Millions. The Company is now focused on a growth curve, both in
volume of sales and areas of operation and the result achieved is to be viewed
in this perspective.
Supply of Table Top Wet Grinders and Mixer Grinders against the tender
of Tamil Nadu Civil Supplies Corporation largely
contributed to the improvement in its sales turnover.
AWARDS AND
RECOGNITION
At the Non-Fuel Channel Partners’ Meet of IOCL held at Dharampur (Kasuali), Himachal Pradesh on 04th May, 2013, the Company
was awarded a Certificate of Excellence for achieving on All India basis the
highest sales of LPG Stoves co-branded with Indane
during the financial year 2012-13.
MANAGEMENT
DISCUSSION AND ANALYSIS
ECONOMY/INDUSTRIAL
SCENARIO
The fiscal year 2012-13 witnessed a lower rate of growth in the economy.
The real GDP growth rate was only 5% as compared to a growth rate of 6.2% in
the previous fiscal year. During the year severe inflationary trend continued to
be felt at consumer price levels. The Indian Rupee depreciated sharply, which
had an adverse impact across all sections of the economy, especially those
sections which depended on imports. The cascading effect of these factors
adversely affected consumer spending, especially on home appliances and white
goods.
Against this backdrop, the company was able to keep up its momentum of
growth and grew by about 25.62% in 2012-13, over and above the growth of 141%
achieved in the previous year, as compared to respective previous years.
The Company operates in the kitchen appliances segment with its product
range consisting of Pressure Cookers, LPG Stoves, Mixer Grinders and Table Top
Wet Grinders. The market for all these products is shared amongst organized and
unorganized players. Over the years, the share of the unorganized players is
gradually coming down as there has been a shift in the consumer preference to
reliable branded players. The market for organized players is estimated around
60% of the total market. Some multinational corporations have entered the
domestic kitchen electrical appliances segment by acquiring regional brands.
The entry of multinationals and large domestic companies can pave the way for
further growth of organized brand players.
However, the real impact of such growth is yet to be felt.
PERFORMANCE
ANALYSIS
HIGHLIGHTS AS
COMPARED TO PREVIOUS YEAR
1.
Revenue from Operations increased by 25.62% to
Rs.8069.900 Millions (inclusive of Excise Duty)
PBDIT increased by
18.52% to Rs.749.200 Millions
2.
Profit before Tax increased by 7.85% to Rs.477.100
Millions
3.
Net Profit increased by 9.91 % to Rs.334.200
Millions
1. The continuing appreciation of dollar against rupee resulted in
increase of input cost of imported materials/products.
2. In view of the mass production requirements to meet scheduled
supplies against the Tamil Nadu Civil Supplies
Corporation orders, additional production units/labour
force have been added, resulting in steep increase in rental charges, salaries,
wages and other benefits to the employees during the financial year as compared
to the previous year.
3. In spite of the Tamil Nadu Government’s
continuing free distribution programme of Table Top
Wet Grinders and Mixer Grinders to eligible families in Tamil Nadu, the Company recorded a growth of 22.63% in sales
turnover through its regular marketing channel as compared to the previous
financial year.
4 The finance cost increased mainly due to
(a) Exchange loss
(b) Processing fee paid to the banks, including new bankers for
facilities sanctioned during the financial year and
(c) Opening of more number of new LCs, to cope
with the larger quantity of Table Top Wet Grinder supplies made to Tamil Nadu Civil Supplies Corporation.
5. The increase in the inventory level as on 31.3.2013 is for completing
supplies against the Tamil Nadu Civil Supplies
Corporation Order, which extended upto May 2013.
OUTLOOK
Sales to the Government of Tamil Nadu, which
comprise Table Top Wet Grinders and Mixer Grinders during the year, supported
the Company’s top line growth. The branded Retail-cum-Institutional Sales,
which contributed 54.30% of the total revenues during the financial year, has
registered a healthy growth rate of about 22.63% over the previous year. The
Company expects the growth momentum in the retail segment to continue at
similar rate over the medium term, backed by increasing penetration in the new
areas like Western and Northern India.
The range of branded goods has been expanded during the current year
with the addition of various models of Hand Blenders and Chimneys. New models
in manufactured products like pressure cookers, including inner lid pressure
cookers and mixer grinders are expected to be launched in stages during the
current financial year. With the introduction of these new items, the Company
is making every endeavour to improve its operating
profitability.
The Company’s financial health continues to be strong, marked by healthy
network, strong debt protection metrics and healthy capital structure. Its
liquidity remains strong, with low utilization of cash credit limits and
healthy net cash accruals as compared to maturing debt obligations.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION
|
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10454336 |
11/10/2013 |
50,000,000.00 |
BANK OF BARODA |
MOUNT ROAD BRANCH,
1, CLUB HOUSE ROAD, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA |
B87225231 |
|
2 |
10444086 |
31/07/2013 |
300,000,000.00 |
STATE BANK OF TRAVANCORE |
NO.556, JEEVAN
ANAND, TEYNAMPET, CHENNAI, TAMILNADU - 600018, INDIA |
B82589342 |
|
3 |
10401411 |
15/12/2012 |
50,000,000.00 |
ING VYSYA BANK LIMITED |
185,ANNA SALAI,
NEAR TVS, CHENNAI, TAMILNADU - 600006, INDIA |
B67413666 |
|
4 |
10379448 |
17/09/2012 |
750,000,000.00 |
AXIS BANK LIMITED |
GROUND FLOOR, KARUMUTTU
NILAYAM, NO.192, ANNA SALAI, CHENNAI, TAMIL NADU - 600002, INDIA |
B59274746 |
|
5 |
10403177 |
17/08/2012 |
70,000,000.00 |
FULLERTON INDIA CREDIT COMPANY LIMITED |
MEGH TOWERS,
THIRD FLOOR, OLD NO-307, NEW NO-165, POONAMALLEE HIGH ROAD, MADURAVOYAL,
CHENNAI, TAMIL NADU - 600095, INDIA |
B59925305 |
|
6 |
10346288 |
21/01/2013 * |
3,350,000,000.00 |
STATE BANK OF TRAVANCORE |
COMMERCIAL
BRANCH, JEEVAN ANAND, NO.556, MOUNT ROAD, TEYNAMPET, CHENNAI, TAMIL NADU -
600018, INDIA |
B68077460 |
|
7 |
10322680 |
23/11/2011 |
1,760,000.00 |
HDFC BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B27689371 |
|
8 |
10315378 |
24/10/2011 * |
75,000,000.00 |
STATE BANK OF TRAVANCORE |
JEEVAN ANAND
BUILDING, NO.556, MOUNT ROAD, TEYNAM |
B25326414 |
|
9 |
10259840 |
10/12/2010 |
9,744,000.00 |
HDFC BANK LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA |
B03287307 |
|
10 |
10213605 |
21/09/2012 * |
460,000,000.00 |
IDBI BANK LIMITED |
115, ANNA SALAI,
SAIDAPET, CHENNAI, TAMIL NADU - 600015, INDIA |
B60079183 |
Note: *
Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
|
Claim against the Company not acknowledged
as debts |
|
|
|
Claim against the Company under litigation
against which Bank Guarantee has been provided |
0.000 |
0.726 |
|
Central Excise demand on merged erstwhile Gangadhram Appliances Limited under appeal disputed |
2.294 |
2.294 |
|
Claim by Employee State Insurance
Corporation towards ESI contribution/interest/damages on merged erstwhile Gangadharam Appliances Limited disputed |
1.224 |
1.224 |
|
Claim by Employee State Insurance
Corporation towards ESI contribution on Job work parties |
0.230 |
0.956 |
|
Claim by Employees Provident Fund
authorities towards damages on merged erstwhile Gangadharam
Appliances Limited |
2.166 |
2.166 |
|
Claim against the Company before Labour Court by terminated employees of company / merged
erstwhile Gangadharam Appliances Limited |
4.367 |
4.367 |
|
Guarantee |
|
|
|
Liabilities to bank on counter Guarantee
towards Supply/Performance to Tamilnadu Civil
Supplies Corporation and Indian Oil Corporation |
98.815 |
68.880 |
|
Liabilities to bank on counter Guarantee
towards registration with Assisstannt commissioner
Excise and Taxation at Amritsar |
0.100 |
0.000 |
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR
THE QUARTER AND SIX MONTHS ENDED ON 30TH SEPTEMBER, 2013
(Rs.
In Millions)
|
PARTICULARS |
Three months ended |
Six month ended |
|
|
|
30.09.2013 |
30.06.2013 |
30.09.2013 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
1. Income for operations |
|
|
|
|
a) Gross sales/Income from Operations |
1556.840 |
2301.277 |
3858.117 |
|
Less: Excise Duty |
123.102 |
232.284 |
355.387 |
|
Net Sales/ Income from Operations (Net of
Excise duty) |
1433.738 |
2068.993 |
3502.730 |
|
b) Other Operating Income |
14.460 |
8.599 |
23.060 |
|
Total Income from operations (Net) |
1448.198 |
2077.592 |
3525.790 |
|
2. Expenses |
|
|
|
|
a. Cost of Material consumed |
831.457 |
1409.597 |
2241.054 |
|
b. Purchases of Stock-in-trade |
145.596 |
106.307 |
251.903 |
|
c. Changes in Inventories of Finished Goods
, Work-in-Process and Stock-in-Trade |
(79.007) |
(15.921) |
(94.928) |
|
d. Employee Benefit Expenses |
144.559 |
148.805 |
293.363 |
|
e. Depreciation and amortisation
expenses |
12.126 |
11.479 |
23.605 |
|
f. Other expenditure |
222.586 |
258.679 |
481.265 |
|
Total Expenses |
1277.317 |
1918.945 |
3196.262 |
|
3. Profit from Operations before Other
Income, finance costs and Exceptional items (1-2) |
170.881 |
158.647 |
329.528 |
|
4. Other Income |
4.998 |
7.287 |
12.285 |
|
5. Profit from ordinary activities before
finance costs and exceptional items (3 + 4) |
175.879 |
165.934 |
341.813 |
|
6. Finance Costs |
76.490 |
34.885 |
111.375 |
|
7. Profit from ordinary activities after
finance costs but before exceptional items (5 - 6) |
99.389 |
131.049 |
230.438 |
|
8. Exceptional Items |
|
|
|
|
9. Profit from ordinary activities before
tax (7+8) |
99.389 |
131.049 |
230.438 |
|
10. Tax expenses |
|
|
|
|
- Income Tax |
29.440 |
41.177 |
70.617 |
|
- Excess Provision for taxation made for
the previous year reversed |
|
|
|
|
- Deferred Tax Asset/Liabilities |
3.228 |
1.342 |
4.570 |
|
11. Net Profit from Ordinary Activities
after tax (9-10) |
66.720 |
88.530 |
155.251 |
|
12. Extraordinary Items (net of tax
expenses) |
|
|
|
|
13. Net Profit for the period (11+12) |
66.720 |
88.530 |
155.251 |
|
14. Paid-up equity share capital |
178.795 |
178.795 |
178.795 |
|
(Face Value of the share Rs.10 each) |
|
|
|
|
15. Reserves excluding Revaluation Reserves
as per balance sheet |
|
|
|
|
of previous accounting year |
|
|
|
|
16.i Earnings Per Share (before
extraordinary items) |
|
|
|
|
a. Basic |
3.73 |
4.95 |
6.18 |
|
b. Diluted |
|
|
|
|
17.ii Earnings Per Share (after
extraordinary items) |
|
|
|
|
a. Basic |
3.73 |
4.95 |
6.18 |
|
b. Diluted |
|
|
|
|
A PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public Share holding |
|
|
|
|
- Number of shares |
63,08,273 |
63,08,273 |
63,08,273 |
|
- Percentage of shareholding |
35.28% |
35.28% |
35.28% |
|
2. Promoters and promoter group share
holding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
3,18,100 |
3,18,100 |
3,18,100 |
|
- Percentage of shares (as a % of the total
share holding of promoter and promoter group) |
2.75% |
2.75% |
2.75% |
|
- Percentage of shares (as a % of the total
share capital of the Company) |
1.78% |
1.78% |
1.78% |
|
b) Non-encumbered |
|
|
|
|
- Number of shares |
1,12,53,178 |
1,12,53,178 |
1,12,53,178 |
|
- Percentage of shares (as a % of the total
share holding of promoter and promoter group) |
97.25% |
97.25% |
97.25% |
|
- Percentage of shares (as a % of the total
share capital of the Company) |
62.94% |
62.94% |
62.94% |
INVESTORS COMPLAINTS
|
|
Three months ended (30.09.2013) |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
25 |
|
Disposed during the quarter |
25 |
|
Remaining unresolved at the end of the
quarter |
Nil |
STANDALONE
STA TEMENT OF ASSETS AND LIABILITIES
(Rs.
In Millions)
|
PARTICULARS |
As at Half year
ended on 30.09.2013 |
PARTICULARS |
As at Half year ended on 30.09.2013 |
|
|
|
|
|
|
|
|
|
|
|
A.
EQUITY AND LIABILTIIES |
|
B.
ASSETS |
|
|
1.Shareholders' funds |
|
1. Non-Current Assets |
|
|
a. Share Capital |
178.968 |
a. Fixed Assets |
1082.304 |
|
b. Reserves and Surplus |
1989.151 |
b. Non-Current Investment |
|
|
c. Money received against share Warrants |
-- |
c. Deferred Tax Assets (Net) |
29.155 |
|
Sub
- total - Share Holders' Funds |
2168.119 |
e. Other Non-Current Assets |
|
|
2.Share Application money pending allotment |
|
Sub
- total - Non Current As |
1111.459 |
|
3. Minority interest |
|
|
|
|
4.Non-Current Liabilities |
|
2.Current Assets |
|
|
a. Long-term Borrowings |
153.848 |
a. Current Investment |
|
|
b. Deferred Tax Liabilities (Net) |
-- |
b. Inventories |
1471.703 |
|
c. Other Long-term Liabilities |
-- |
c. Trade Receivables |
1726.175 |
|
d. Long-term provisions |
29.856 |
d. Cash and Cash Equivalents |
233.817 |
|
Sub
- total - Non Current Liabilities |
183.704 |
e. Short-term Loans and Advances |
374.866 |
|
5.Current Liabilities |
|
f. Other Current Assets |
- |
|
a. Short-term borrowings |
764.520 |
Sub
- total – Current As |
3806.561 |
|
b. Trade Payables |
1216.059 |
|
|
|
c. Other Current Liabilities |
383.905 |
|
|
|
d. Short-term provisions |
201.712 |
|
|
|
Sub
- total - Current Liabilities |
2566.196 |
|
|
|
|
|
|
|
|
TOTAL
- EQUITY AND LIABILTIIES |
4918.020 |
TOTAL
- ASSETS |
4918.020 |
Notes:
1. Gross sales includes supplies to Tamilnadu Civil Suppliers Corporation of Rs. Nil, Rs. 1272.200 Millions, Rs. Nil, for the quarters ended on 30.09.2013, 30.06.2013
and 30.09.2012, and Rs. 1272.200 Millions, Rs. 355.100 Millions for six months period ended on
30.09.2013 and 30.09.2012 respectively.
2. The above results, were reviewed by the
Audit Committee of the Board and were approved by the Board of Directors at its
meeting held on 30th Oct, 2013.
3. The method of valuation of inventories is
at cost or realisable value whichever is lower as in
previous years. As from 1st April, 2013 in ascertaining the cost for the
current quarter and previous quarter, the Company has changed from FIFO method
to weighted average method, as a result of which the inventory value reflected
at the end of the current quarter/half-year is lower by Rs.
10.200 Millions. Consequently the net profit as shown above for the six months
to 30.09.2013 is lower by Rs. 10.200 Millions. 3. The
operation of the Company relates to only one segment, viz., domestic
appliances.
4. Limited Review of the above results has
been carried out by the Company's Statutory Auditors and the Report is
forwarded to the Stock Exchanges.
5. Figures for Previous period have been
regrouped wherever necessary.
6. The Unaudited
Standalone Financial results for the quarter and Six months ended on 30th
September, 2013 of the Company will be available on the website of BSE Limited
and the Company.
FIXED ASSETS
TANGIBLE ASSETS
·
Land (Freehold)
·
Buildings (Freehold)
·
Plant and Machinery
·
Dies and Tools
·
Electrical Machinery and
Installations
·
Computers
·
Office Equipments
·
Vehicles
·
Furniture and Fittings
INTANGIBLE ASSETS
·
Usage Right of Trade
Marks
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for
violating money-laundering, anti-corruption or bribery or international
economic or anti-terrorism sanction laws or whose assets were seized, blocked,
frozen or ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No 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.62.57 |
|
|
1 |
Rs.100.63 |
|
Euro |
1 |
Rs.84.62 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
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.