MIRA
INFORM REPORT
|
Report Date : |
03.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
MIRC ELECTRONICS LIMITED |
|
|
|
|
Registered
Office : |
Onida House, 91, MIDC, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
01.01.1981 |
|
|
|
|
Com. Reg. No.: |
11-023637 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.141.938
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L32300MH1981PLC023637 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM21150D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACM8055A |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Exporter of Display Devices including Color TV, LCD
and LED, Washing Machines and Air Conditions. |
|
|
|
|
No. of Employees
: |
1600 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 7900000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. There appears some continuous dip in turnover from past some years.
The company is also incurring losses from its operations. However, trade
relations are reported as fair. Business is active. Payments are reported to
be slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
India’s current
account deficit narrowed in the quarter ended September as government measures
to curb imports, especially gold, kicked in. The current account deficit,
the excess of a country’s imports of goods and services over exports, narrowed
to $ 5.2 billion from $ 21 billion in the year ago period, according to
provisional Reserve Bank of India data. Finance Minister P. Chidambaram said
the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and
the latest data suggests the government may achieve the target.
India was ranked 94th
among the world’s most corrupt nations list. Denmark and New Zealand topped as
the cleanest while Somalia emerged as the most corrupt.
India’s services
sector activity witnessed a moderate improvement in November over the previous
month, even while indicating the fifth successive monthly contraction,
according the HSBC survey.
$53 million
estimated losses suffered by India due to phishing attacks during the third
quarter, according to a study by RSA. India ranks fourth in the list of nations
hit by phishing attacks. The US remained at the top of the charts. Phishing is
the process of acquiring information such as user names, passwords and credit
card details by sending e-mails disguised as official mails.
Rs.4080 million
worth of mobile-phone-based transactions by July 2013 compared to Rs.260
million in September, 2012, according to Deloitte report. The number of
transactions has shot up from 94000 to 701000.
India aims to earn
Rs.400000 million from the bandwidth auction set for January. The merger and
acquisition guidelines, cleared by a group of ministers, will be out before the
auction begins so that players can make informed decisions on the auctions.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
BB+ (Long Term Rating) |
|
Rating Explanation |
Have moderate risk of default. |
|
Date |
November 14, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A4+ (Short Term Rating) |
|
Rating Explanation |
Have minimal degree of safety and carry very high credit risk. |
|
Date |
November 14, 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.
INFORMATION DENIED
Management Non Co-Operative (91-22-26871133)
LOCATIONS
|
Registered Office : |
Onida House, 91,
MIDC, Mahakali Caves Road, Andheri (East), Mumbai - 400093, Maharashtra,
India |
|
Tel. No.: |
91-22-28200435 /
56975777 |
|
Fax No.: |
91-22-28384499 / 28325068 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Village Kudus, Bhiwadi Wada Road, Taluka Wada, Thane – 421312, Maharashtra,
India |
|
|
|
|
Factory 2 : |
B-204/205, Phase – II, Noida – 201305, Uttar
Pradesh, India |
|
|
|
|
Factory 3 : |
Khasra No. 399 to 401 and 405 to 410, 158 Kms Milestone, Delhi - Roorkee Highway - NH-58 Village - Mundiyaki, Pargana - Manglorur, Tehsil - Roorkee, District Hariwar (Uttarakhand) – 247670, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Gulu L.
Mirchandani |
|
Designation : |
Chairman and
Managing Director |
|
Qualification : |
B.E. (Mechanical) |
|
|
|
|
Name : |
Mr. Vijay J.
Mansukhani |
|
Designation : |
Managing Director |
|
Qualification : |
Graduate from the
|
|
Experienced: |
30 Years |
|
|
|
|
Name : |
Mr. Shyamsunder Dhoot, |
|
Designation : |
Whole-time Director |
|
Date of Birth : |
01.04.1960 |
|
Qualification : |
Production Engineer |
|
Date of Appointment : |
16.02.2013 |
|
|
|
|
Name : |
Mr. Manoj K.
Maheshwari |
|
Designation : |
Director |
|
Qualification : |
B.Sc.(Chemistry)
and Post Graduate in Industrial Management |
|
|
|
|
Name : |
Mr. Vimal
Bhandari |
|
Designation : |
Director |
|
Date of Birth : |
23.08.1958 |
|
Qualification : |
Chartered
Accountant |
|
|
|
|
Name : |
Mr. Ranjan Kapur |
|
Designation : |
Director |
|
Date of Birth : |
25.11.1942 |
|
Qualification : |
Masters – English
from |
KEY EXECUTIVES
|
Name : |
Mr. Kamlesh Talekar |
|
Designation : |
Senior Account Manager |
|
|
|
|
Name : |
Mr. Anoop Pillai |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of shareholder |
Number of Shares |
Percentage of
Holdings |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
50968193 |
35.96 |
|
|
1435160 |
1.01 |
|
|
25688283 |
18.12 |
|
|
25688283 |
18.12 |
|
|
78091636 |
55.09 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
78091636 |
55.09 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
2700 |
0.00 |
|
|
1208 |
0.00 |
|
|
801200 |
0.57 |
|
|
6958822 |
4.91 |
|
|
7763930 |
5.48 |
|
|
|
|
|
|
11504781 |
8.12 |
|
|
|
|
|
|
34435126 |
24.29 |
|
|
7992766 |
5.64 |
|
|
1963439 |
1.39 |
|
|
629695 |
0.44 |
|
|
874830 |
0.62 |
|
|
458914 |
0.32 |
|
|
55896112 |
39.43 |
|
Total Public
shareholding (B) |
63660042 |
44.91 |
|
Total (A)+(B) |
141751678 |
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) |
141751678 |
0.00 |
Shareholding
belonging to the category "Promoter and Promoter Group"
|
Sl.No. |
Name of the Shareholder |
Details of Shares held |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
|
||
|
1 |
Gulita Securities Limited |
1091160 |
0.77 |
0.77 |
|
2 |
Adino Electronics Limited |
344000 |
0.24 |
0.24 |
|
3 |
Gulu L Mirchandani |
15785348 |
11.14 |
11.14 |
|
4 |
G L Mirchandani |
976010 |
0.69 |
0.69 |
|
5 |
Gita Gulu Mirchandani |
9211256 |
6.50 |
6.50 |
|
6 |
Kaval G Mirchandani |
12502829 |
8.82 |
8.82 |
|
7 |
Kaval G Mirchandani |
14000 |
0.01 |
0.01 |
|
8 |
Sasha G Mirchandani |
12478370 |
8.80 |
8.80 |
|
9 |
Sasha G Mirchandani |
380 |
0.00 |
0.00 |
|
10 |
IIFL Trustee Services Limited |
25688283 |
18.12 |
18.12 |
|
|
Total |
78091636 |
55.09 |
55.09 |
Shareholding
belonging to the category "Public" and holding more than 1% of the
Total No. of Shares
|
Sl. No. |
Name of the Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
Total shares (including underlying shares assuming full
conversion of warrants and convertible securities) as a % of diluted share
capital |
|
|
1 |
Adonis Electronics Private Limited |
6345849 |
4.48 |
4.48 |
|
|
2 |
Hypnos Fund Limited |
6492322 |
4.58 |
4.58 |
|
|
|
Total |
12838171 |
9.06 |
9.06 |
|
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Display Devices including Color TV, LCD
and LED, Washing Machines and Air Conditions. |
GENERAL INFORMATION
|
No. of Employees : |
1600 (Approximately) |
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Bankers : |
·
State Bank of India ·
ICICI Bank Limited ·
HDFC Bank Limited ·
IDBI Limited ·
Canara Bank ·
Royal Bank of Scotland ·
Yes Bank Limited ·
Axis Bank Limited ·
Corporation Bank |
|||||||||||||||||||||||||||||||||
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|
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Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
|
|
|
|
|
Auditors : |
|
|
Name : |
N. M. Raiji and Company Chartered
Accountants |
|
|
|
|
Subsidiary : |
Akasaka Electronics Limited |
|
|
|
|
Enterprise over which
any person described in 2 and 3 is able to exercise significant influence : |
·
Iwai Electronics Private Limited ·
Adino Telecom Limited ·
Gulita Wealth Advisors Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
168020000 |
Equity Shares |
Rs.1/- each |
Rs.168.020 Millions |
|
2000000 |
5% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.200.000 Millions |
|
10000 |
8% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.1.000 Millions |
|
1000000 |
11% Non-Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
Total |
|
Rs.469.020
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
141751678 |
Equity Shares |
Rs.1/- each |
Rs.141.752
Millions |
|
248000 |
Forfeited Equity Shares |
|
Rs.0.186
Million |
|
|
Total |
|
Rs.141.938 Millions |
Reconciliation of
Equity Shares outstanding
|
PARTICULARS |
31st March, 2013 |
|
Fully paid up
shares |
|
|
At the beginning of the year |
141751678 |
|
At the end of the year |
141751678 |
|
Partly paid up
shares |
|
|
At the beginning of the year |
248000 |
|
At the end of the year |
248000 |
Rights, Preferences
and Restrictions attached to Equity Shares
The Company has one class of equity shares having a par value of Re. 1 per share. Each shareholder is entitled to one vote per equity share. The shareholders are entitled to dividend declared on proportionate basis. On liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.
Aggregate number and
class of shares allotted as fully paid up pursuant to contract(s) without
payment being received in cash
In FY 2009-10 : 7,48,96,669 Equity Shares were alloted and 7,48,96,575 Equity Shares were cancelled as per the Scheme of Amalgamation of Guviso Holdings Private Limited. with the Company.
Details of
Shareholders holding more than 5 % of the issued shares
|
Name of Shareholder |
31st March, 2013 |
|
|
|
Total Shares Held |
As a % of Total Shares |
|
Mr. Gulu L. Mirchandani |
20961358 |
14.79 |
|
IIFL Trustee Services Limited (Beneficial owner Mr. Vijay J. Mansukhani) |
25688283 |
18.12 |
|
Mr. Kaval G. Mirchandani |
12516829 |
8.83 |
|
Mr. Sasha G. Mirchandani |
12478750 |
8.80 |
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 |
141.938 |
141.938 |
141.938 |
|
(b) Reserves & Surplus |
1847.399 |
2133.770 |
2523.167 |
|
(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) |
1989.337 |
2275.708 |
2665.105 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
150.014 |
350.006 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
154.479 |
181.223 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
21.281 |
21.512 |
17.631 |
|
Total Non-current Liabilities (3) |
21.281 |
326.005 |
548.860 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
1128.414 |
1216.508 |
1054.480 |
|
(b) Trade payables |
3396.816 |
3092.716 |
3687.298 |
|
(c) Other current
liabilities |
698.285 |
806.383 |
785.944 |
|
(d) Short-term provisions |
25.787 |
54.184 |
176.907 |
|
Total Current Liabilities (4) |
5249.302 |
5169.791 |
5704.629 |
|
|
|
|
|
|
TOTAL |
7259.920 |
7771.504 |
8918.594 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1541.383 |
1649.490 |
2064.498 |
|
(ii) Intangible Assets |
0.632 |
0.844 |
0.937 |
|
(iii) Capital
work-in-progress |
76.666 |
0.000 |
0.628 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
262.485 |
262.485 |
262.485 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
375.817 |
413.573 |
439.313 |
|
(e) Other Non-current assets |
4.502 |
3.360 |
0.000 |
|
Total Non-Current Assets |
2261.485 |
2329.752 |
2767.861 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
1.668 |
1.946 |
2.945 |
|
(b) Inventories |
2510.624 |
3035.972 |
3464.621 |
|
(c) Trade receivables |
1325.448 |
1275.016 |
1635.095 |
|
(d) Cash and cash
equivalents |
307.300 |
285.119 |
471.259 |
|
(e) Short-term loans
and advances |
353.250 |
402.392 |
576.241 |
|
(f) Other current
assets |
500.145 |
441.307 |
0.572 |
|
Total Current Assets |
4998.435 |
5441.752 |
6150.733 |
|
|
|
|
|
|
TOTAL |
7259.920 |
7771.504 |
8918.594 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
12922.901 |
16492.794 |
19125.659 |
|
|
|
Other Income |
20.092 |
25.526 |
33.778 |
|
|
|
TOTAL (A) |
12942.993 |
16518.320 |
19159.437 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
4740.331 |
6390.774 |
|
|
|
|
Purchases of Stock-in-Trade |
5373.473 |
6531.001 |
|
|
|
|
Changes in inventories of Finished goods, Work-in-progress and Stock-in-Trade |
459.736 |
280.331 |
|
|
|
|
Employees benefit expenses |
772.321 |
922.638 |
|
|
|
|
Other Expenses |
1520.846 |
2185.463 |
|
|
|
|
Exceptional Items |
0.000 |
50.122 |
|
|
|
|
TOTAL (B) |
12866.707 |
16360.329 |
18413.989 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
76.286 |
157.991 |
745.448 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
387.165 |
358.633 |
177.303 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(310.879) |
(200.642) |
568.145 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
157.875 |
215.498 |
216.042 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(468.754) |
(416.140) |
352.103 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(182.383) |
(267.430) |
79.178 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(286.371) |
(389.397) |
272.925 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1053.477 |
1442.874 |
1361.990 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Equity Dividend |
0.000 |
0.000 |
141.752 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
22.996 |
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
27.293 |
|
|
BALANCE CARRIED
TO THE B/S |
767.106 |
1053.477 |
1442.874 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
171.614 |
120.732 |
259.405 |
|
|
TOTAL EARNINGS |
171.614 |
120.732 |
259.405 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3465.126 |
4182.245 |
10932.771 |
|
|
|
Finished Goods – Stock in Trade |
3228.590 |
4501.291 |
0.000 |
|
|
|
Capital Goods |
76.541 |
56.397 |
78.207 |
|
|
TOTAL IMPORTS |
6770.257 |
8739.933 |
11010.978 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(2.02) |
(2.75) |
1.93 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(2.21)
|
(2.36) |
1.42
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.63)
|
(2.52) |
1.84
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.77)
|
(5.54) |
4.07 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.24)
|
(0.18) |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.57
|
0.60 |
0.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.95
|
1.05 |
1.08 |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES OF
LONG-TERM BORROWINGS
(Rs. In Millions)
|
Particular |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
Current maturities of long-term borrowings |
150.014 |
199.992 |
149.994 |
|
|
|
|
|
|
Total |
150.014 |
199.992 |
149.994 |
|
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 |
Yes |
|
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 |
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 |
|
LITIGATION DETAILS |
||||||||
|
Bench:- Bombay |
||||||||
|
Lodging No:- |
ITXAL/1266/2013 |
Failing Date:- |
01/08/2013 |
Reg No.:- |
ITXA/2487/2013 |
Reg. Date:- |
24/12/2013 |
|
|
Petitioner:- |
THE COMMISSIONER OF INCOME TAX CENT |
Respondent:- |
MIRC ELECTRONICS LIMITED |
|||||
|
Petn.Adv:- |
PADMA DIVAKAR |
|||||||
|
District:- |
MUMBAI |
|||||||
|
|
||||||||
|
Bench:- |
SINGLE |
Category:- |
TAX APPEALS |
|||||
|
Status:- |
Pre-Admission |
Stage:- |
FOR REJECTION (ORIGINAL SIDE MATTERS) |
|||||
|
Last Date:- |
05/12/2013 |
|||||||
|
Last Coram:- |
REGISTRAR(OS)/PROTHONOTARY & SR. MASTER |
|||||||
|
|
|
|||||||
|
Act:- |
Income Tax Act, 1961 |
Under Section :- |
260A |
|||||
PERFORMANCE:
During the year, the Turnover of the Company stood at Rs. 13652.300 Millions as against Rs. 17351.500 Millions, during the previous financial year, a decline in turnover by 21.32%. The Company incurred a net loss of Rs. 286.400 Millions as against a net loss of Rs. 389.400 Millions recorded during the previous financial year.
UNSECURED LOAN:
(Rs.
in Millions)
|
Particulars |
As
on 31.03.2013 |
As
on 31.03.2012 |
|
SHORT-TERM
BORROWINGS |
|
|
|
Term Loan |
0.000 |
410.000 |
|
|
|
|
|
Total |
0.000 |
410.000 |
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
1. INDUSTRY STRUCTURE AND DEVELOPMENTS
Belying hopes of recovery, India's economic growth rate is estimated to slip to a decade's low of 5 per cent in 2012-13, pulled down by poor performance of manufacturing, agriculture and services sectors. The previous low at 4 per cent was recorded in 2002-03.
India's industrial output registered a sluggish 1 percent growth in 2012-13, the worst performance in more than two decades, due to poor show by the manufacturing and mining sectors. However, the factory output, measured in terms of the Index of Industrial Production (IIP), witnessed some improvement towards the end of the year, but overall performance remained sluggish. The Consumer electronics and durables market in India is divided into three segments namely
• White Goods (ACs, Refrigerators, Washing Machines, Microwave ovens etc.)
• Brown Goods (TVs, CD/DVD players, radio, still camera etc.)
• Grey Goods: IT and Telecom equipment used in offices such as Fax machines, computers, printers etc.)
Consumer electronics (durables) sector continues to be the main stay of the Indian electronic industry contributing about 32% of the total hardware production. The market is expected to grow at 10 to 12% annually. Some high growth categories within this segment include mobile phones, TVs and music systems. Consumer Durables play an important role in the economy of the nation. Consumer Durables sector contributes more than 5.5% to the IIP and also is an employment intensive sector. Considering the low levels of penetration of Consumer Durables, this sector has immense growth potential and job creating opportunities.
By 2015 it is expected that every village in India will be connected by an all weather road, and will have internet connectivity and almost all homes will have electricity connection and possess a mobile phone. The industry thus expects the rural market to reach an inflexion point which could lead to explosion in demand.
The future thus appears quite encouraging. Besides, low penetration levels, easy availability of finance options, growing prominence of consumer electronics' retail stores, online retail industry and a robust 400 million plus Indian middle class with a comprehensive rise in level of affluence is also fuelling the demand in this industry.
MIRC stands attractively positioned in this regard for more than 25 years, the company leveraged advanced technology, focused on introduction of innovative products aligned with evolving Indian lifestyles and in doing so, emerged as a popular household brand. Gradually the company has extended from televisions to a range of successful products comprising air-conditioners, LCD/ LED TVs, Mobiles phones, Microwave ovens, DVD players, Washing Machines etc.
At Mirc, this evolution and growth has been driven by its innovation-driven research and development team resulting in the creation of cutting-edge products of the highest quality and standards designed as per the needs of the Indian consumers.
4. OUTLOOK
The coming year provides us with tremendous opportunity and they are motivated by the thought of building a stronger MIRC. While there will undoubtedly be challenges, they believe that they have a sound strategy and a strong management team to lead this change.
In the times to come, Brand strength, product mix, a well-established distribution network, after-sales service, and technological superiority would be factors which will determine the competitive advantage of industry players. Market shares are expected to consolidate; however, the pace of consolidation would decline. While major industry players would continue to focus on prices in the low-medium range, advertising and promotional spends would continue to be an integral part of the company's expenses.
With easy availability of finance, fall in prices due to increased competition, growth of media, growth in consumer base of rural sector, the consumer durables industry is growing at a fast pace. Given these factors, a good growth is projected in the future, too.
The Company has extended its offerings under the Onida brand across products as well as geographical boundaries. The company expects to increase its presence in these products and emerge as a leading solutions provider for electronic home improvement goods. The company has also positioned an exclusive brand 'IGO' for the rural market to capture the potential demand from the rural areas. Since rural market offers a great opportunity to expand its business the company will be making an aggressive rural foray through 'IGO' branded products in LCD/LED and Washing Machine segments.
CONTINGENT
LIABILITIES
(Rs.
in Millions)
|
PARTICULARS |
31st March 2013 |
31st March 2012 |
|
Contingent
Liabilities |
|
|
|
a) Guarantees given to Bank against which Rs. Nil (previous year Rs. Nil) has been deposited as margin money |
145.335 |
156.522 |
|
b) Guarantees given to bank on behalf of Subsidiary company - Akasaka Electronics Limited |
213.200 |
213.200 |
|
c) Income tax demands in respect of which appeals have been filed |
18.845 |
7.769 |
|
d) Excise Duty, Service Tax and Custom Duty in respect of which appeals have been filed |
270.880 |
3113.640 |
|
e) Claims made against the Company not acknowledged as debts |
666.185 |
368.112 |
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2013
(Rs. In Millions)
|
Sr. No. |
Particular |
Quarter Ended |
Six Months Ended |
|
|
|
|
30.09.2013 (Unaudited) |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
2946.900 |
3635.700 |
6582.600 |
|
|
Other operating
income |
5.300 |
7.200 |
12.500 |
|
|
Total Income |
2952.200 |
3642.900 |
6595.100 |
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
1986.100 |
960.300 |
2946.400 |
|
|
Purchase
of stock in trade |
965.800 |
1836.900 |
2802.700 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
(524.600) |
248.100 |
(276.500) |
|
|
Employee
benefits expenses |
210.100 |
193.000 |
403.100 |
|
|
Depreciation
and amortization expenses |
37.500 |
36.100 |
73.600 |
|
|
Exchange(Gain)/
Loss |
52.800 |
86.400 |
139.200 |
|
|
Other
expenses |
368.000 |
343.800 |
711.800 |
|
|
Total Expenses |
3095.700 |
3704.600 |
6800.300 |
|
3. |
Profit From Operations before Other
Income, Interest and Exceptional Items (1-2) |
(143.500) |
(61.700) |
(205.200) |
|
4. |
Other
Income |
0.800 |
1.800 |
2.600 |
|
5. |
Profit Before finance cost and
Exceptional Items (3+4) |
(142.700) |
(59.900) |
(202.600) |
|
6. |
Finance
Cost |
85.200 |
108.100 |
193.300 |
|
7. |
Profit before Exceptional
Items (5-6) |
(227.900) |
(168.000) |
(395.900) |
|
8. |
Exceptional
Items |
- |
- |
- |
|
9. |
Profit before Tax (7+8) |
(227.900) |
(168.000) |
(395.900) |
|
10. |
Tax
Expense |
- |
- |
- |
|
11. |
Net Profit after Tax (9-10) |
(227.900) |
(168.000) |
(395.900) |
|
12. |
Equity Share Capital (Face Value per share Re.1) Paid-up Equity Share Capital |
141.700 |
141.700 |
141.700 |
|
13. |
Reserve excluding Revaluation Reserves |
- |
- |
- |
|
14. |
Earnings Per Share (EPS) - Basic and Diluted and not annualised (Rs.) |
(1.61) |
(1.19) |
(2.79) |
|
Part II Select
information for the quarter ended 30th September, 2013 |
||||
|
|
|
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
63660042 |
63660042 |
63660042 |
|
|
-
Percentage of Shareholding |
44.91% |
44.91% |
44.91% |
|
|
|
|
|
|
|
2. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
- |
- |
- |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
- |
- |
- |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
- |
- |
- |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
78091636 |
78091636 |
78091636 |
|
|
-
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) |
55.09% |
55.09% |
55.09% |
|
Particulars |
3 Months Ended 30.09.2013 |
|
Pending at the beginning of the quarter |
0 |
|
Received during the quarter |
13 |
|
Disposed of during the quarter |
13 |
|
Remaining unresolved at the end of the
quarter |
0 |
Unaudited Statement
of Assets and Liabilities as at 30th September, 2013
(Rs. In Millions)
|
PARTICULARS |
30.09.2012 Unaudited |
|
Equity and liabilities |
|
|
Shareholders' fund |
|
|
Share capital |
141.900 |
|
Reserve & surplus |
1451.500 |
|
Sub-total
- Shareholders' funds |
1593.400 |
|
Non - current liabilities |
|
|
Long term borrowings |
59.000 |
|
Long-term
provisions |
19.300 |
|
Sub-total
- Non-current liabilities |
78.300 |
|
Current liabilities |
|
|
Short term borrowings |
1441.900 |
|
Acceptances and Buyers Credit |
2256.300 |
|
Other Trade payables |
1433.700 |
|
Other current liabilities |
601.500 |
|
Short-term provisions |
33.100 |
|
Sub-total
- Current liabilities |
5766.500 |
|
|
|
|
Total -
Equity & Liabilities |
7438.200 |
|
|
|
|
Assets |
|
|
Non-current assets |
|
|
Fixed assets |
1583.000 |
|
Non-current investment |
262.500 |
|
Long term loans & advances |
352.400 |
|
Other
non-current assets |
5.000 |
|
Sub-total
- Non-current Assets |
2202.900 |
|
Current
assets |
|
|
Current
investments |
1.400 |
|
Inventories |
3136.100 |
|
Trade receivables |
1136.000 |
|
Cash & bank balances |
139.400 |
|
Short term loans & advances |
472.800 |
|
Other Current Assets |
349.600 |
|
Sub-total
- Current Assets |
5235.300 |
|
|
|
|
Total –
Assets |
7438.200 |
Notes:
1. The above results as reviewed by the Audit Committee, have been taken on record at the meeting of the Board of Directors held on 13th November, 2013.
2. The Statutory Auditors have carried out a limited review of the Unaudited Standalone Financial Results for the quarter ended 30th September, 2013
3. The company is mainly engaged in Consumer Durables business, which as per Accounting Standard (AS) - 17 on “Segment Reporting" is considered as the only reportable segment. There is no separately identifiable geographical segment.
4. In the earlier report for year end and previous quarter, the auditors had given Emphasis of Matter on insurance claim receivable of Rs.499.550 Millions, out of which part payment of Rs.150.000 Millions is received. The company is following up and is confident of recovery of the claim.
5. Previous year / periods figures have been rearranged / regrouped wherever necessary.
FIXED ASSETS:
Intangible Assets
·
R and D Software
Tangible Assets
· Leasehold Land
· Freehold Land
· Buildings
· Plant and Machinery and Electrical Fittings
· Furniture, Fixtures and Equipments
· Motor Vehicles
·
R and D-Building
·
R and D- Plant and
Machinery and Electrical Fittings
·
R and D- Furniture,
Fixture and Equipments
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.61.90 |
|
|
1 |
Rs.102.74 |
|
Euro |
1 |
Rs.85.16 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
34 |
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.