MIRA INFORM REPORT
|
Report Date : |
25.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
KDDL LIMITED [w.e.f. 12.10.2007] |
|
|
|
|
Formerly Known
As : |
KAMLA DIALS AND DEVICES LIMITED |
|
|
|
|
Registered
Office : |
Plot No. 3, Sector III, Parwanoo-173220, Himachal Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
08.01.1981 |
|
|
|
|
Com. Reg. No.: |
06-008123 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.91.238
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L33302HP1981PLC008123 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Watch Components and Precision Engineering
Goods. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (42) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1864000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having satisfactory track record.
Company has incurred loss from its operation in 2013. However, liquidity
position of the company is good. Rating also takes into consideration healthy customer profile and
promoters extensive industry experience. Trade relation reported to be fair. Business is active. Payment terms
are reported to be slow but correct. The company can be considered for business dealing at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very
High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The finance ministry
has started preparations for Budget 2014/15. With general elections scheduled
to be held by May next year, there will only be an interim budget. The new government
will present the fiscal Budget.
The Supreme Court
has barred clinical trials for new drugs till a monitoring mechanism is put in
place to protect the lives of people on which the drugs are tested.
Mumbai has been
named the world’s second most honest city according to a survey on 15 cities
worldwide by Readers’ Digest magazine. Finnish capital
3.7 % Growth of the
core sector in August, a seven month high. This takes the overall growth in
April-August this year to 2.3 % compared with 6.3 % in the corresponding period
next financial year.
$19 million
Estimated average spending by companies across the globe including India, on
social media this year, according to a global study by information technology
major Tata Consultancy Services. This will rise to $ 24 million in 2015.
Rising inflation,
fewer employment avenues and dwindling earnings are taking a toll on the
spending capacity in India. Over 72 % respondents from middle and lower middle
income families would be forced to slash their Diwali expenditure by 40 % and
on average spend nearly 25 % of their monthly salary on Diwali, according to a
survey by Assochem.
Analysts believe the
shutdown of the US government would have limited impact in sectors such as IT or
tourism that are dependent on Visa clearances.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
BB+ [Long Term] |
|
Rating Explanation |
Inadequate credit quality and high credit risk. |
|
Date |
17.09.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A4+ [Short Term] |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
17.09.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Factory 1 : |
Plot No. 3, Sector III, Parwanoo-173220, Himachal Pradesh, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Kamla Centre, S.C.O. 88-89, Sector 8-C, Madhya Marg, Chandigarh –
160 009, India |
|
Tel. No.: |
91-172-2548223/ 24/ 27 |
|
Fax No.: |
91-172-2548302 |
|
|
|
|
Factory 2 : |
Haibatpur Road,
Saddomajra, Derabassi-140507, Punjab, India |
|
|
|
|
Factory 3 : |
Plot No. 17,
HSIIDC, Industrial Area Alipur, Barwala-134118, Haryana, India |
|
|
|
|
Units : |
HANDS UNIT UNIT – I Plot No. 296-297,
5th Main, IV Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka,
India UNIT – II 408, 2nd Floor, 4th Main, 11th Cross, Peenya Industrial Area,
Bangalore – 560 058, Karnataka, India ASSEMBLY UNITS UNIT – I Windsmoor
Complex, Plot No. 2, Sector 2, Parwanoo – 173 220, Himachal Pradesh, India UNIT – II Village Dhana,
Bagbania, P.O. Manpura, Tehsil Baddi, District Solan – 173 205, Himachal
Pradesh, India PACKAGING UNIT Plot No. 25/1,
Industrial Area, Phase – II, Chandigarh – 160 002, India PRECISION
STAMPING UNIT (EIGEN) 408, 4th Main,
11th Cross, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India |
|
|
|
|
E-Commerce Division : |
Shop No. 204 to
206, Square One Shopping Complex, District Centre, Saket Place, Saket New Delhi
– 110 065, India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Rajendra Kumar Saboo |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Yashovardhan Saboo |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Dr. T. N. Kapoor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Chandra Mohan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Jagesh Khaitan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Anil Khanna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Marc Bernhardt |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Mannil Venugopalan |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Yashovardhan Saboo |
|
Designation : |
Chief Executive
Officer |
|
|
|
|
Name : |
Mr. Dinesh Agrawal |
|
Designation : |
Chief Operating Officer |
|
|
|
|
Name : |
Mr. Sanjeev Kumar Masown |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Pawan Kumar Goyal |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2013
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
4774981 |
52.84 |
|
|
1 |
0.00 |
|
|
4774982 |
52.84 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
4774982 |
52.84 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2900 |
0.03 |
|
|
50 |
0.00 |
|
|
100951 |
1.12 |
|
|
103901 |
1.15 |
|
|
|
|
|
|
1878858 |
20.79 |
|
|
|
|
|
|
1061425 |
11.75 |
|
|
842640 |
9.32 |
|
|
374914 |
4.15 |
|
|
67878 |
0.75 |
|
|
257018 |
2.84 |
|
|
50000 |
0.55 |
|
|
18 |
0.00 |
|
|
4157837 |
46.01 |
|
Total Public shareholding (B) |
4261738 |
47.16 |
|
Total (A)+(B) |
9036720 |
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) |
9036720 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Watch Components and Precision Engineering Goods. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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|||||||||||||||||||||||||||||||||||||||
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|
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|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Messrs Walker
Chandiok and Company Chartered Accountants |
|
Address : |
L-41, Connaught Circus, New Delhi – 110 001, India |
|
|
|
|
Associates/Subsidiaries : |
|
|
|
|
|
Joint Venture : |
Satva Jewellery
and Design Limited |
|
|
|
|
Other Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
12480000 |
Equity Shares |
Rs.10/- each |
Rs.124.800 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9036720 |
Equity Shares |
Rs.10/- each
|
Rs.90.367
Millions |
|
174280 |
Equity Shares |
Rs.5/- each |
Rs.0.871
Million |
|
|
TOTAL |
|
Rs.91.238 Millions |
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 |
91.238 |
89.237 |
78.583 |
|
(b) Reserves & Surplus |
374.958 |
388.406 |
299.800 |
|
(c) Money
received against share warrants |
0.000 |
2.052 |
12.973 |
|
|
|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total Shareholders’ Funds (1) + (2) |
466.196 |
479.695 |
391.356 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a)
long-term borrowings |
193.876 |
184.500 |
112.259 |
|
(b) Deferred tax
liabilities (Net) |
44.613 |
40.326 |
39.832 |
|
(c)
Other long term liabilities |
22.976 |
25.677 |
0.000 |
|
(d)
long-term provisions |
22.551 |
17.125 |
12.687 |
|
Total
Non-current Liabilities (3) |
284.016 |
267.628 |
164.778 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
252.389 |
196.445 |
143.648 |
|
(b)
Trade payables |
148.146 |
101.693 |
104.697 |
|
(c)
Other current liabilities |
160.578 |
195.000 |
104.751 |
|
(d)
Short-term provisions |
20.212 |
40.297 |
33.293 |
|
Total
Current Liabilities (4) |
581.325 |
533.435 |
386.389 |
|
|
|
|
|
|
TOTAL |
1331.537 |
1280.758 |
942.523 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
572.880 |
467.522 |
384.622 |
|
(ii)
Intangible Assets |
14.465 |
6.699 |
9.775 |
|
(iii)
Capital work-in-progress |
7.691 |
85.514 |
4.949 |
|
(iv) Intangible assets under
development |
2.240 |
6.807 |
2.396 |
|
(b)
Non-current Investments |
180.941 |
180.697 |
136.425 |
|
(c)
Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
43.291 |
38.633 |
25.776 |
|
(e)
Other Non-current assets |
0.120 |
0.240 |
0.480 |
|
Total
Non-Current Assets |
821.628 |
786.112 |
564.423 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
217.420 |
184.307 |
141.293 |
|
(c)
Trade receivables |
169.597 |
185.042 |
166.862 |
|
(d)
Cash and cash equivalents |
38.691 |
33.840 |
17.276 |
|
(e)
Short-term loans and advances |
83.290 |
90.902 |
52.053 |
|
(f)
Other current assets |
0.911 |
0.555 |
0.616 |
|
Total
Current Assets |
509.909 |
494.646 |
378.100 |
|
|
|
|
|
|
TOTAL |
1331.537 |
1280.758 |
942.523 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
955.921 |
1010.716 |
794.726 |
|
|
|
Other Income |
11.563 |
32.798 |
12.942 |
|
|
|
TOTAL (A) |
967.484 |
1043.514 |
807.668 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
254.413 |
256.868 |
201.691 |
|
|
|
Purchases of traded goods |
15.154 |
11.079 |
0.000 |
|
|
|
Employee benefit expenses |
312.909 |
292.881 |
235.689 |
|
|
|
Other expenses |
264.615 |
238.475 |
200.412 |
|
|
|
Prior period expenditure |
0.727 |
0.572 |
0.000 |
|
|
|
Exceptional items |
6.970 |
19.474 |
0.000 |
|
|
|
Change in inventories |
(11.757) |
(4.577) |
(1.005) |
|
|
|
TOTAL (B) |
843.031 |
814.772 |
636.787 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
124.453 |
228.742 |
170.881 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
71.045 |
50.757 |
45.802 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
53.408 |
177.985 |
125.079 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
56.831 |
43.473 |
39.796 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(3.423) |
134.512 |
85.283 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.149 |
46.422 |
22.440 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(3.572) |
88.090 |
62.843 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
76.710 |
33.580 |
2.960 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
12.200 |
6.280 |
|
|
|
Proposed Dividend |
9.040 |
27.110 |
22.250 |
|
|
|
Corporate Dividend Tax |
1.460 |
4.400 |
3.690 |
|
|
|
Dividend and Dividend Tax For Prior Years |
0.000 |
1.250 |
0.000 |
|
|
|
Adjustment Pursuant to Merger |
6.070 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
56.568 |
76.710 |
33.583 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
526.845 |
623.475 |
413.344 |
|
|
|
Other Earnings |
11.429 |
7.200 |
8.065 |
|
|
TOTAL EARNINGS |
538.274 |
630.675 |
421.409 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
127.518 |
153.965 |
100.857 |
|
|
|
Stores & Spares |
28.271 |
22.831 |
15.850 |
|
|
|
Capital Goods |
13.197 |
71.745 |
14.663 |
|
|
|
Others |
0.005 |
0.626 |
0.000 |
|
|
TOTAL IMPORTS |
168.991 |
249.167 |
131.370 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
0.38 |
13.43 |
8.48 |
|
|
|
- Diluted |
(0.41) |
11.00 |
8.48 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Net Sales |
|
|
251.900 |
|
Total Expenditure |
|
|
216.800 |
|
PBIDT (Excl OI) |
|
|
35.100 |
|
Other Income |
|
|
03.200 |
|
Operating Profit |
|
|
38.300 |
|
Interest |
|
|
19.700 |
|
Exceptional Items |
|
|
(00.300) |
|
PBDT |
|
|
18.300 |
|
Depreciation |
|
|
14.700 |
|
Profit Before Tax |
|
|
03.600 |
|
Tax |
|
|
01.200 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
02.400 |
|
Extraordinary Items |
|
|
0.000 |
|
Net Profit |
|
|
02.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.37)
|
8.44 |
7.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.35)
|
13.31 |
10.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.30)
|
13.35 |
10.67 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01)
|
0.28 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.95
|
0.79 |
0.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.87
|
0.93 |
0.97 |
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 |
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 |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 |
INDEX OF CHARGES:
|
S.
No. |
Charge
ID |
Date
of Charge Creation/Modification |
Charge
amount secured |
Charge
Holder |
Address |
Service
Request Number (SRN) |
|
1 |
10379213 |
24/09/2012 |
27,500,000.00 |
BANK
OF INDIA |
CHANDIGARH
BRANCH, SCO 81-82, SECTOR 17-B, CHANDIGARH - 160036, INDIA |
B59175547 |
|
2 |
10375974 |
07/08/2012 |
10,000,000.00 |
FEDERAL
BANK LIMITED |
S.C.O.
139-140,, SECTOR 8-C, CHANDIGARH - 160009, INDIA |
B57904369 |
|
3 |
10331758 |
06/01/2012 |
50,000,000.00 |
CORPORATION
BANK |
SCO 137-138,
SECTOR-8C, MADHYA MARG, CHANDIGARH - 160008, INDIA |
B30549117 |
|
4 |
10331765 |
06/01/2012 |
65,000,000.00 |
CORPORATION
BANK |
SCO
137-138, SECTOR-8C, MADHYA MARG, CHANDIGARH - 160008, INDIA |
B30551626 |
|
5 |
10304942 |
17/08/2011 |
110,000,000.00 |
FEDERAL
BANK LIMITED |
S.C.O.
139-140, SECTOR 8-C, CHANDIGARH - 160009, INDIA |
B19927128 |
|
6 |
10273031 |
29/01/2011 |
20,000,000.00 |
THE
FEDERAL BANK |
S.C.O.
139-140, SECTOR 8-C, CHANDIGARH - 160009, INDIA |
B08177586 |
|
7 |
10437107 |
11/11/2010 |
190,000,000.00 |
THE
JAMMU & KASHMIR BANK LIMITED |
J
& K BANK BUILDING, OPP. BASSI THEATRE, SECTOR-5 |
B07472624 |
|
8 |
10187325 |
05/02/2013
* |
181,000,000.00 |
IDBI
BANK LIMITED |
SCO 72-73,
SECTOR 17-B,, CHANDIGARH, CHANDIGARH |
B67844183 |
|
9 |
10121557 |
21/12/2012
* |
130,000,000.00 |
IDBI
BANK LIMITED |
IDBI
TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
B64453863 |
|
10 |
80028784 |
06/03/2007
* |
69,750,000.00 |
STANDARD
CHARTERED BANK (BEING THE SECURITY AGENT |
STANDARD
CHARTERED BANK, LONDON), CREDIT RISK CON TROL, H-2, CONNAUGHT CIRCUS, DELHI -
1 |
- |
|
* Date of charge modification |
||||||
|
Unsecured Loan |
As
on 31.03.2013 [Rs.
in Millions] |
As
on 31.03.2012 [Rs.
in Millions] |
|
Long Term
Borrowings |
|
|
|
Inter corporate deposits |
|
|
|
- from related party |
15.000 |
0.000 |
|
- from others |
15.000 |
0.000 |
|
Public deposit |
|
|
|
- from related parties |
4.800 |
1.200 |
|
- from others |
58.249 |
57.079 |
|
|
|
|
|
Short Term
Borrowings |
|
|
|
Inter corporate deposits |
|
|
|
- from related party |
0.000 |
0.500 |
|
Public deposits |
12.437 |
9.430 |
|
TOTAL |
105.486 |
68.209 |
PERFORMANCE AND
PROJECTIONS:
During the year,
the company achieved sales revenue of Rs. 993.000 Millions against Rs. 1042.000
millions in the previous year, thereby registering a decline of 5%. The company
earned net loss after tax of Rs. 3.600 millions against a net profit of Rs. 88
million in the previous year. The decline in turnover and profitability was due
to the deep and persistent slowdown and recession in exports market, which is a
strategic and key focus area for the company. The year commenced with the
healthy trend in the market, however, quarter by quarter, the market position
witnesses the impact of inventory accumulations in Asia region, which is a
major consumption centre for
the Swiss watches.
The economic turmoil in European region, another vital market for luxury
watches, had also impact on the industry. The profitability of the company was
also affected by the onetime impact of the manpower rationalization in the
dials manufacturing units and impact of the merger of Himachal Fine Blank
Limited during the year.
The turnover
decline was witnessed in all the watch component business segments; however,
the decline in watch dials was more significant as compared to watch hands.
During the current year, the major international brands in the watch segment
deferred their new product developments and the decline in the international
market was more in the low and medium priced watches whereas the premium and
high priced watches continued to witness growth. This trend was visible in both
the domestic and export markets. This year the impact of the recession was more
severe compared to the previous recession as the order position from domestic
major players was also on decline, a trend different from the previous period.
Company has taken the necessary corrective steps in the watch components
segment for cost reduction, restructuring and capacity consolidation. The
Company is also focusing on some new customer segments and for further
improving manufacturing excellence.
The outlook for
the watch components segment has turned positive as the inevitable corrections
in global inventory levels have started correcting. The company has started
getting enquiries and orders for the new product developments across product
categories including high profit segments. The company's efforts of tie-ups
with the new customers and market segments is also moving with requisite pace.
They are confident that this will help in further improving the turnover and
performance of the company.
Another positive
development in the Swiss exports market is that the Swiss parliament has
deferred the passage and implementation of the “Swiss Origin” law, which will
lead to continued imports of watch components from the low cost manufacturing
countries like India and China. The efforts of the company during last few
years to upgrade the capabilities for moving up the value chain by offering
high featured more complex components will also yield the results in the coming
quarters and company remains confident of improved performance and recovery at
a fast and healthy pace.
In the precision
stamping division, Eigen engineering, business turnover was better than the
last year by registering a growth of 36% in sales. The company is now moving to
enhance the profitability of the business and also working on increasing
exports which has proven to be more beneficial. The business of Packaging
division was also significantly impacted by the decline in order position from
the watch segment in domestic market. During the year the sales turnover of
this division declined by 14%. In order to overcome the impact of high
dependence on the watch segment for the business, the company accelerated its
efforts for broad basing the market segments and utilized the resources for
enhancing the market in export markets and the jewellery and accessories
segments. The result of these efforts is encouraging and the company was in a
position to increase the exports by more than 300%. The company has reduced the
dependence on the watch segment and is confident that in the coming periods the
business will witness healthy growth and return.
The Company's
Swiss subsidiary, Pylania SA in Switzerland was also impacted by the recession
in the watch industry and its turnover declined by 22% over the previous year.
The reduced turnover led to higher operational losses of CHF 0.69 million
during the year. The company took the necessary steps for major reduction in
the costs and operational expenses and has made alternate plans for healthy
recovery and sustainable development in the Swiss markets for other watch
products. Company facilities will be also utilized for alternate uses and the
company is in the process of discussions with other watch players for further
enhancing the business.
The operations of
the Joint venture Company Satva Jewellery and Design Limited, the 50:50 Joint
Venture with Pascal Vincent Vaucher, SA of Switzerland remained suspended
during the year due to no orders. The company recorded a loss of Rs. 2.67 million
during the year. The Company increased its paid-up capital by Rs. 5.21 million
during the year and is in discussion with the JV partner for finding out the
alternatives for restructuring / realigning the business of the company. The
watch retail and distribution business of the group, being managed through
their subsidiary company Ethos Limited showed improved performance. The
turnover of the Ethos Limited improved from Rs. 1246 million (billing of Rs.
1401.000 millions) to Rs.1724.000 millions (billing of Rs. 1944.000 millions)
registering a growth of nearly 39%.
The company
continues to focus on increasing the turnover and profitability by enhancing
the presence in the growing market and introducing new brands and improved
performance. The company is poised for substantial growth in turnover and also
improvement in financial parameters in the coming years. During the year, the
company initiated the efforts for setting up the e-commerce platform and
systematic introduction and placement of the desired systems and processes. The
project for e-commerce setup is moving in the right direction and the company
will enhance the efforts and venture into full fledged ecommerce venture for
one or more lifestyle brands.
AMALGAMATION OF HIMACHAL FINE BLANK LIMITED, SUBSIDIARY COMPANY WITH THE
COMPANY:
The Company filed a writ petition with the Hon'ble High Court of Himachal Pradesh at Shimla for Amalgamation of its subsidiary company i.e. Himachal Fine Blank Limited. The Hon'ble Court passed the Order dated 20th March, 2012 for the convening of the meetings of Shareholders, Secured Creditors and Unsecured Creditors on 12th May, 2012. The Court Convened meetings were duly held on the scheduled date and the High Court took note of the outcome of the meetings on its record. Thereafter, second motion petition was filed with the Hon'ble Court and the Court fixed the date of hearing of the petition on 5th July, 2012. On the said date, the Hon'ble Court ordered the publication of public notices, asked for the reports of Official Liquidator, Shimla, and Regional Director, Company Law Board, New Delhi and fixed the next date of hearing being 28th August, 2012 for approval of the Scheme of Amalgamation.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
AN OVERVIEW OF THE ECONOMY:
The global economies continued to witness a sharp slowdown. The fall in
faster growing emerging economies like BRICS (Brazil, Russia, India, China and
South Africa) was more severe but the other developed economies Germany and
Japan also faced major slowdown due to global weaknesses. The US economy
remained stagnant but the other European countries like Italy, Spain, Poland
were affected significantly due to Euro-zone issues. While India's recent
slowdown is partly rooted in external causes, domestic causes are also
important. The strong post-financial-crisis stimulus led to stronger growth in
2009-10 and 2010-11. However, the boost to consumption, coupled with supply
side constraints, led to higher inflation and tightening of monetary policy.
The consequent slowdown, especially in 2012-13, has been across the board, with
no sector of the economy unaffected. During the year, the Indian economy had to
face the challenge of managing growth and price stability. The Indian economy
growth slowed down from 6.9% in 2011-12 to 5% in 2012-13 and the major reason
was rate of growth in manufacturing sector decline to 1.9%.
The delayed policy decisions and required corrective actions for
improving corporate and infrastructure investments and creating conducive
environment by removing the bottlenecks and uniformity and clarity on key
policies affected the economy.
The government's selective efforts in recent months are aimed at
restoring the fiscal health and improving the growth rate. The fiscal
consolidation corrective measures and policies like controlling subsidies on
petroleum products and permitting the FDI in multiple brands will help the
economy in the coming periods. However, other important matters like goods and
service tax (GST), Direct Tax code (DTC) would help in eliminating multiple
taxes and improving the efficiencies and make India more of a national
integrated market. Similarly the direct cash benefit transfer scheme will
result in containing wasteful expenditure. While the current environment is difficult, the future
holds promise. With the global economy also likely to recover somewhat in 2013,
the selective measures announced by government should help in improving the
Indian economy's outlook for 2013-14.
THE WATCH INDUSTRY
SWISS WATCH INDUSTRY
Against a fluctuating
economic background around the world in 2012, Swiss watch exports commenced the
year by confirming their robust health by maintaining a very strong momentum. However
the general trend showed a significant slowdown of the growth which declined to
5.6% in December and into negative territory in the first quarter of 2013. The
major reason of decline in growth was inventory accumulations in China and Far
East. The decline is perceived as temporary and as inventory levels correct
themselves, the market and growth will stabilize. During the year the volume
declined from 29.8 Million watches to 29.2 million, whereas the value increased
by 11.5% from CHF 18.1 billion to CHF 20.2 billion, primarily on account of
increase in the high value gold watches.
INDIAN WATCH MARKET
Globally, Swiss Watch
exports stood at CHF 20.2 billion compared to CHF 18.1 billion in the previous
year. However, the impact of the slowdown is beginning to be felt, especially
in the last quarter of the financial year 2012-13. The Hong Kong and Chinese
markets, that account for more than 25% of the total Swiss Watch exports, have
shown a decline. In India, however, despite continued global economic slowdown,
the luxury market continues to grow at a healthy pace. A recent study conducted
jointly by ASSOCHAM and Yes Bank pegs the growth of the luxury market at 25 per
cent in 2013 till 2015 and likely to touch $15 billion from the current level
of $8 billion. The number of ultra-high net worth households, with a minimum
net worth of Rs. 250.000 Millions is expected to triple to 2.86 lakh in the
next five years with a five-fold increase in their net worth to Rs. 235 lakh
crore, the study said. This optimism in the luxury market is reflected in the
premium watch market. The year-on-year growth in volumes as well as value
continues to be robust.
OUTLOOK 2013 ONWARDS
The weaknesses and slowdown in the
world economic situation had impacted the watch industry during 2012. However
Swiss watch players are optimistic about the growth outlook in many countries.
Asia particularly is the fast growing and important market for Swiss watches,
followed by U.S.A. There is a clear upturn in leading indicators pointing to a
recovery and rebound during 2nd half of 2013. "
FIXED ASSETS:
- Land
- Building
- Plant and
Machinery
- Office
Equipments
- Furniture and
Fixtures
- Vehicles
- Software
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE 2013
Rs. in Millions
|
Sr. No. |
Particular |
Quarter
Ended |
|
|
|
30.06.2013 |
|
|
|
Unaudited
|
|
|
|
|
|
1. |
Net Sales/Income
from Operations |
241.700 |
|
|
Other Operating
Income |
10.200 |
|
|
Total Income From Operations (Net) |
251.900 |
|
|
|
|
|
2. |
Expenditure |
|
|
|
Cost
of materials consumed |
61.400 |
|
|
Purchase
of stock in trade |
0.000 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
5.500 |
|
|
Employee
benefits expenses |
82.100 |
|
|
Depreciation
and amortization expenses |
14.700 |
|
|
Other
expenses |
67.800 |
|
|
Total Expenses |
231.500 |
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
20.400 |
|
|
|
|
|
4. |
Other
Income |
3.200 |
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
23.600 |
|
|
|
|
|
6. |
Interest |
19.700 |
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
3.900 |
|
|
|
|
|
8. |
Exceptional
Items |
0.300 |
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
3.600 |
|
|
|
|
|
10. |
Tax
Expense |
1.200 |
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
2.400 |
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
2.400 |
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
91.200 |
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
|
|
|
|
|
16. |
Basic and Diluted Earnings Per
Share (EPS) (Rs.)-Not Annualized |
|
|
|
a)
Basic and diluted EPS before extraordinary items |
0.27 |
|
|
b)
Basic and diluted EPS after extraordinary items |
0.27 |
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
-Number
of Shares |
4261738 |
|
|
-
Percentage of Shareholding |
47.16 |
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
-
Number of Shares |
Nil |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of promoter and promoter group) |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
-
Number of Shares |
4774982 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of Promoter and
Promoter Group) |
100.00 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
52.84 |
|
Particulars |
Quarter Ended 30.06.2013 |
|
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 |
SEGMENT REPORTING
Rs. in Millions
|
SL. NO. |
PARTICULARS |
QUARTER
ENDED |
|
30.06.2013 |
||
|
UNAUDITED |
||
|
1 |
SEGMENT REVENUE |
|
|
|
a) Precision and watch components |
234.100 |
|
|
b) Others |
17.800 |
|
|
Net sales/income
from operations ( Including other operating income) |
251.900 |
|
|
|
|
|
|
SEGMENT RESULTS
PROFIT(+)/LOSS(-) BEFORE TAX AND INTEREST |
|
|
|
a) Precision and watch components |
52.100 |
|
|
b) Others |
(1.500) |
|
|
TOTAL |
50.600 |
|
|
|
|
|
|
Less: Interest and financial charges (net of interest income) |
19.100 |
|
|
Less: Other un-allocable expenditure net of Unallocable income |
27.900 |
|
|
|
|
|
|
TOTAL PROFIT/(LOSS)
BEFORE TAX AFTER PRIOR PERIOD ITEMS |
3.600 |
|
|
|
|
|
|
|
|
|
2 |
CAPITAL EMPLOYED |
|
|
|
(SEGMENT ASSETS - SEGMENT
LIABILITIES) |
|
|
|
a) Precision and watch components |
779.900 |
|
|
b) Others |
26.200 |
|
|
c) Un allocated |
256.100 |
|
|
TOTAL |
1062.200 |
NOTES:
- The above results were reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 31 July 2013.
- Tax expense includes adjustment of Deferred tax .
- The Statutory auditors of the Company have carried out a limited review of the results for the quarter ended 30 June 2013.
- Exceptional item includes diminution in the value of Investments of Joint Venture - Satva Jewellery and Design Limited.
- A wholly owned subsidiary of the Company, namely, Himachal Fine Blank Limited (HFBL) has merged with the Company vide order dated 27 December 2012 from the Hon'ble High Court of Himachal Pradesh, with appointed date 1 April 2011, filed with ROC on 8 January 2013. The effect of merger has been given in quarter and period ended 31 December 2012. Accordingly the unaudited results of the Company for the current quarter ended 30 June 2013 are not comparable with those of the previous year quarter ended 30 June 2012.
- Previous periods figures have been recast / regrouped wherever considered feasible and necessary.
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.61.41 |
|
|
1 |
Rs.99.53 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
42 |
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.