MIRA
INFORM REPORT
|
Report Date : |
09.01.2014 |
IDENTIFICATION DETAILS
|
Name : |
UNITED BREWERIES LIMITED |
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Registered
Office : |
“UB Tower”, UB City, 24, Vittal |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
13.05.1999 |
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Com. Reg. No.: |
08-025195 |
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Capital
Investment / Paid-up Capital : |
Rs.1005.100
millions |
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CIN No.: [Company Identification
No.] |
L36999KA1999PLC025195 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
BLRU00927D |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Subject is engaged primarily in the manufacture and sale of beer. |
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No. of Employees
: |
2550 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (52) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 60428000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a part of UB Group. It is a well-established company having
fine track record. Financial position of the company appears to be sound. 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. The 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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
|
India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 |
ICRA |
|
Rating |
Fund Based Facilities: A |
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Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
October, 2013 |
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Rating Agency Name |
ICRA |
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Rating |
Commercial Paper: A1+ |
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Rating Explanation |
Very strange degree of safety and lowest credit risk. |
|
Date |
October, 2013 |
RBI DEFAILTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAILTERS’ 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 : |
UB Tower, UB City, 24, Vittal Mallya Road, Bangalore – 560 001, Karnataka, India |
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Tel. No.: |
91-80-39855000 / 22272806 /22272807 |
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Fax No.: |
91-80-22211964-22229488 |
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Email.: |
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Website : |
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Corporate Office : |
Level 3, 4 and 5, UB Towers, UB City, 24 Vittal Mallya Road, Bangalore - 560 001, Karnataka, India |
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Tel. No.: |
91-80-22293333/ 22272807 |
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E-Mail : |
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Own Manufacturing Network : |
Located at: · Andhra Pradesh – Mallepally, Kothlapur and Srikakulam · Goa – Ponda · Kerala – Cherthala and Palakkad · Karnataka – Mangalore, Nelmangala and Mysore · Odisha – Khurda · Tamilnadu – Kuthambakkam and Aranvoyal · Punjab – Ludhiana · West Bengal – Kalyani · Rajasthan – Chopanki · Maharashtra – Taloja and Aurangabad · Haryana – Dharuhera |
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Regional Sales
Office 1: |
C/o. Blitz Publication Private Limited, 3rd Floor, Canada Building, Dr. D.N. Road, Mumbai – 400 001, Maharashtra, India |
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Tel. No.: |
91-22-22620580 / 2/ 3 |
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Regional Sales
Office 2: |
Wallace House, 1st Floor 4, Bankshall Street, Kolkata - 700 001, West Bengal, Indi |
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Tel. No.: |
91-33-22317853 / 22317850 |
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Fax No.: |
91-33-22805830 |
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Regional Sales
Office 3: |
Level 15, Canberra,24, Vittal Mallya Road, Bangalore - 560 001, Karnataka, India |
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Tel. No.: |
91-80-39855231 |
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Fax No.: |
91-80-39855299 |
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Regional Sales
Office 4: |
1002, Bikaji Kama Bhavan, 10th Floor, Bikaji Kama Place, New Delhi – 110 066, India |
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Tel. No.: |
91-11-41644873 / 41644876 / 5 |
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Fax No.: |
91-11-4164487 |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Dr. Vijay Mallya |
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Designation : |
Chairman |
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Name : |
Mr. Kalyan Ganguli |
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Designation : |
Managing Director |
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Date of Birth/ Age : |
62 Years |
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Qualification : |
B.A. (Hons), PGDBM (XLRI) |
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Experience : |
40 Years |
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Date of Appointment : |
01.02.1979 |
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Name : |
Mr. Henricus Petrus Van Zon |
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Designation : |
Director and Chief Financial
Officer |
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Date of Birth/ Age : |
01.03.1956 |
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Qualification : |
MSC in Business
Economics and Post Graduate in Accountancy from Erasmus University, Rotterdam,
Netherlands. |
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Expertise in
specific functional area : |
Finance, Accounting and General Management |
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Date of Appointment : |
07.12.2012 |
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Name : |
Mr. A.K. Ravi Nedungadi |
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Designation : |
Director |
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Name : |
Rene Hooft Graafland |
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Designation : |
Director |
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Name : |
Mr. Theo de Rond |
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Designation : |
Director |
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Name : |
Mr. Chugh Yoginder Pal |
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Designation : |
Director |
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Name : |
Mr. Chhaganlal Jain |
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Designation : |
Director |
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Date of Birth/ Age : |
15.11.1933 |
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Qualification : |
Chartered Accountant and Company Secretary |
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Expertise in
specific functional area : |
Finance and Corporate Strategy |
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Date of Appointment : |
27.01.2003 |
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Directorship held in other Companies in India : |
i. Asit C. Mehta Investment Intermediates Limited ii. SW Finance Co. Limited iii. RPG Life Sciences Limited iv. Practical Financial Services Private Limited v. NOCIL Limited vi. Pioneer Distilleries Limited |
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Name : |
Mr. Sunil Kumar Alagh |
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Designation : |
Director |
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Name : |
Mr. Kiran Mazumdar Shaw |
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Designation : |
Director |
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Name : |
Mr. Madhav Bhatkuly |
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Designation : |
Director |
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Name : |
Mr. Stephan Gerlich |
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Designation : |
Director |
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Date of Birth/ Age : |
11.09.1958 |
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Qualification : |
Wirtschaftassistent (Germany) |
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Expertise in
specific functional area : |
Overall business
Management and Operations in Healthcare, Crop Science and Material Science |
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Date of Appointment : |
02.07.2010 |
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Directorship held in other Companies in India : |
i. Bayer Crop Science Limited ii. Bayer Material Science Private Limited iii. Bayer Zydus Pharma Private Limited iv. Magma HDI General Insurance Company Limited |
KEY EXECUTIVES
|
Name : |
Mr. Shekhar Ramamurthy |
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Designation : |
Joint President |
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Date of Birth/ Age : |
52 Years |
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Qualification : |
B. Tech./(Civil)-IIT, Delhi, PGDBM – IIM - Kolkata |
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Experience : |
26 Years |
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Date of Appointment : |
15.05.1989 |
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Name : |
Mr. Cedric Vaz |
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Designation : |
EVP - Manufacturing |
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Date of Birth/ Age : |
55 Years |
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Qualification : |
B. Tech. (Chem. Eng.), IIT-Kanpur |
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Experience : |
31 Years |
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Date of Appointment : |
15.05.2006 |
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Name : |
Mr. Joseph Noronha |
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Designation : |
EVP - HR |
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Date of Birth/ Age : |
58 Years |
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Qualification : |
B.Com. (Hons.), PGDPM-IR (XLRI) |
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Experience : |
33 Years |
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Date of Appointment : |
15.07.1991 |
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Name : |
Mr. Kiran Kumar |
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Designation : |
SVP - Sales |
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Date of Birth/ Age : |
45 Years |
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Qualification : |
B.Com., PGDBM, IIM-Ahmedabad |
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Experience : |
22 Years |
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Date of Appointment : |
28.04.1997 |
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Name : |
Ms. Perry Goes |
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Designation : |
SVP – Strategic Planning and Business Analysis |
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Date of Birth/ Age : |
48 Years |
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Qualification : |
B.E. (Meh.),
PGDBM, (Marketing-Finance and HR) – Goa, Institution of Management |
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Experience : |
26 Years |
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Date of Appointment : |
14.06.2004 |
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Name : |
Mr. Henk Breederveld |
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Designation : |
Technological Advisor |
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Date of Birth/ Age : |
62 Years |
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Qualification : |
Chemical Engineer (M.Sc., Biochemistry) ,Delft University of
Technology - The Netherlands |
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Experience : |
35 Years |
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Date of Appointment : |
11.10.2010 |
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|
Name : |
Mr. Samar Singh Sheikhawat |
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Designation : |
SVP - Marketing |
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Date of Birth/ Age : |
47 Years |
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Qualification : |
B.A., MBA (Marketing) Symbiosis Institution of Management, Pune |
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Experience : |
23 Years |
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Date of Appointment : |
09.11.2009 |
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|
Name : |
Mr. Govind Iyengar |
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Designation : |
SVP - Legal and Secretarial |
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Date of Birth/ Age : |
46 Years |
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Qualification : |
B.Com., L.L.B, A.C.S |
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Experience : |
23 Years |
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Date of Appointment : |
05.02.2001 |
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|
Name : |
Mr. Govind Tiwari |
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Designation : |
DVP - UBL Goa |
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Date of Birth/ Age : |
61 Years |
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Qualification : |
B.Sc., PGD IFAT, DBA, PGDM and IR |
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Experience : |
43 Years |
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Date of Appointment : |
12.02.1975 |
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|
Name : |
Mr. R K Jindal |
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Designation : |
SVP – Operations and Malting |
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Date of Birth/ Age : |
52 Years |
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Qualification : |
B.Com., F.C.A |
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Experience : |
28 Years |
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Date of Appointment : |
19.03.1985 |
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|
Name : |
Mr. R Santosh Kumar |
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Designation : |
SVP – Procurement and Logistics |
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Date of Birth/ Age : |
47 Years |
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Qualification : |
B.E. (Industrial and Production), PGDCA |
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Experience : |
25 Years |
|
Date of Appointment : |
01.07.1998 |
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|
|
Name : |
Mr. P A Poonacha |
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Designation : |
DVP - Finance |
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Date of Birth/ Age : |
42 Years |
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Qualification : |
B.Com, M.Com, A.C.A, A.I.C.W.A. |
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Experience : |
18 Years |
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Date of Appointment : |
01.07.1996 |
SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
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|
21353620 |
8.08 |
|
|
73583310 |
27.83 |
|
|
94936930 |
35.91 |
|
|
|
|
|
|
102897740 |
38.92 |
|
|
102897740 |
38.92 |
|
Total shareholding of Promoter and Promoter Group (A) |
197834670 |
74.82 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
765393 |
0.29 |
|
|
37309 |
0.01 |
|
|
660 |
0.00 |
|
|
50191386 |
18.98 |
|
|
750 |
0.00 |
|
|
50995498 |
19.29 |
|
|
|
|
|
|
5321181 |
2.01 |
|
|
|
|
|
|
9310101 |
3.52 |
|
|
943699 |
0.36 |
|
|
255461 |
0.10 |
|
|
493666 |
0.19 |
|
|
192692 |
0.07 |
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|
1880 |
0.00 |
|
|
15574981 |
5.89 |
|
Total Public shareholding (B) |
66570479 |
25.18 |
|
Total (A)+(B) |
264405149 |
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) |
264405149 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged primarily in the manufacture and sale of beer. |
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Licensed
Capacity* |
Installed
Capacity* |
Actual
Production |
|
Beer |
In Hectolitres |
13787500 |
12115500 |
7787868 |
* NOTE: Licensing of
products of the Company under the Industries (Development and Regulation) Act, 1951
is discontinued and consequently the reported capacities are as per permissions
obtained from the respective regulatory authorities on a yearly basis. As
regards installed capacity, the same has been certified by the Management and
relied upon by the Auditors, being a technical matter.
GENERAL INFORMATION
|
No. of Employees : |
2550 (Approximately) |
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Bankers : |
·
Rabobank International (Cooperatieve Centrale
Raif Feisen Boerenleenbank B. A.), 32/F Three Pacific Place, 1 Queen's Road, East,
Hong Kong, - 00000, Hong Kong ·
Citi bank N.A., Prestige Meridian, 30, M G Road,
Bangalore – 560 001, Karnataka, India ·
DBS Bank Limited, Salarpuria Windsor, 3, Ulsoor
Road, Bangalore – 560 042, Karnataka, India ·
Rabobank International (Cooperatieve Centrale
Raif Feisen Boerenleenbank B. A.), Forbes Building, Second Floor, Charanjit
Rai Marg, Fort, Mumbai – 400 001, Maharashtra, India ·
ING Vysya Bank ·
Yes Bank Limited ·
HDFC Bank Limited ·
Axis Bank Limited ·
Standard Chartered Bank |
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Facilities : |
Notes: LONG-TERM BORROWINGS
SHORT-TERM BORROWINGS a) Cash credit
facilities / working capital demand loans from banks are secured by first
pari-passu charge on all current assets of the Company namely stock of raw
materials, semi-finished and finished goods, stores and spares not relating to
plant and machinery (consumable stores and spares), bills receivable and book
debts both present and future. These are repayable on demand and carries
interest in the range of 9.50% to 13.00% p.a. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S.R. Batliboi and Associates LLP Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
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Subsidiary : |
Maltex Malsters Limited (MML) |
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Associate : |
United East Bengal Football Team Private Limited (UEBFTPL) |
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Entity which has
significant influences : |
·
Scottish and Newcastle India Limited, UK (SNIL) ·
United Breweries (Holdings) Limited (UBHL) |
|
|
|
|
Enterprises over which investing parties or KMP
have significant influence : |
·
Scottish and Newcastle India Private Limited
('SNIPL'), subsidiary of HUL (merged with the Company effective April 1,
2012) ·
Heineken UK Limited ('HUL'), holding company of
SNIL ·
Heineken International B.V. ('HIBV') ·
Heineken Brouwerijen B.V. ('HBBV') ·
Heineken Supply Chain B.V. ('HSCBV') ·
Heineken N.V. ('HNV') ·
Force India F1 Team Limited, UK ('Force India') |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4129800000 |
Equity Shares |
Re.1/- each |
Rs.4129.800 millions |
|
58600000 |
Preference Shares |
Rs.100/- each |
Rs.5860.000 millions |
|
|
Total |
|
Rs.9989.800
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
264405149 |
Equity Shares |
Re.1/- each |
Rs.264.400
millions |
|
7407000 |
3% Cumulative Redeemable Preferences Shares
– Series B |
Rs.100/- each |
Rs.740.700 millions |
|
|
Total |
|
Rs.1005.100 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 |
1005.100 |
1005.100 |
2723.500 |
|
(b) Reserves & Surplus |
14101.800 |
12646.300 |
10217.400 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
9.200 |
|
Total
Shareholders’ Funds (1) + (2) |
15106.900 |
13651.400 |
12950.100 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
7432.000 |
4028.000 |
2747.200 |
|
(b) Deferred tax liabilities (Net) |
745.500 |
514.000 |
288.800 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
33.800 |
38.100 |
70.400 |
|
Total Non-current
Liabilities (3) |
8211.300 |
4580.100 |
3106.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
5569.300 |
5502.000 |
3401.600 |
|
(b)
Trade payables |
2496.000 |
3835.600 |
3905.600 |
|
(c)
Other current liabilities |
5217.500 |
4827.100 |
4284.200 |
|
(d) Short-term
provisions |
785.600 |
469.000 |
394.100 |
|
Total Current
Liabilities (4) |
14068.400 |
14633.700 |
11985.500 |
|
|
|
|
|
|
TOTAL |
37386.600 |
32865.200 |
28042.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
15737.600 |
11983.700 |
10620.900 |
|
(ii)
Intangible Assets |
202.300 |
203.200 |
273.200 |
|
(iii) Capital
work-in-progress |
1139.800 |
2073.500 |
719.500 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
254.700 |
254.700 |
450.200 |
|
(c)
Interest in UBL Benefit Trust |
0.000 |
0.000 |
1429.400 |
|
(d) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(e) Long-term Loan and Advances |
1386.700 |
1710.800 |
1198.500 |
|
(f) Other
Non-current assets |
63.000 |
49.100 |
108.600 |
|
Total Non-Current
Assets |
18784.100 |
16275.000 |
14800.300 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
5126.300 |
3998.800 |
2898.000 |
|
(c)
Trade receivables |
8133.000 |
6994.500 |
5198.600 |
|
(d) Cash
and cash equivalents |
2327.700 |
1725.800 |
1290.600 |
|
(e)
Short-term loans and advances |
2957.000 |
3226.900 |
2912.200 |
|
(f)
Other current assets |
58.500 |
644.200 |
942.300 |
|
Total
Current Assets |
18602.500 |
16590.200 |
13241.700 |
|
|
|
|
|
|
TOTAL |
37386.600 |
32865.200 |
28042.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (Net) |
39031.400 |
35618.200 |
30598.100 |
|
|
|
Other Income |
392.200 |
729.800 |
449.900 |
|
|
|
TOTAL (A) |
39423.600 |
36348.000 |
31048.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
16435.300 |
16037.600 |
13325.800 |
|
|
|
Purchases of traded goods |
350.400 |
423.000 |
600.700 |
|
|
|
(Increase)/decrease
in inventories of finished goods, work-in-progress and traded goods |
(205.200) |
(182.500) |
33.700 |
|
|
|
Employee benefit expenses |
2410.000 |
1855.000 |
1441.100 |
|
|
|
Other expenses |
15277.300 |
13368.600 |
11298.100 |
|
|
|
Exceptional item: Provision for diminution in value of investments |
0.000 |
195.900 |
0.000 |
|
|
|
TOTAL (B) |
34267.800 |
31697.600 |
26699.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5155.800 |
4650.400 |
4348.600 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
798.900 |
987.200 |
781.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4356.900 |
3663.200 |
3567.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1702.400 |
1486.600 |
1305.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
2654.500 |
2176.600 |
2262.200 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
932.400 |
912.200 |
789.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
1722.100 |
1264.400 |
1472.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sale of services |
20.000 |
14.900 |
19.900 |
|
|
TOTAL EARNINGS |
20.000 |
14.900 |
19.900 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and packing materials |
398.400 |
387.900 |
272.700 |
|
|
|
Stores & Spares |
24.000 |
12.700 |
5.300 |
|
|
|
Capital Goods |
138.500 |
459.300 |
53.300 |
|
|
TOTAL IMPORTS |
560.900 |
859.900 |
331.300 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
6.41 |
4.68 |
5.26 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.37 |
3.48
|
4.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.80 |
6.10
|
7.39 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.38 |
7.13
|
8.89 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
0.16
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.86 |
0.70
|
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.32 |
1.13
|
1.10 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS:
|
High Court of Karnataka - Principal Bench at Bangalore |
|
ITA 356/2007 |
CASE PENDING
Petitioner/Appnt. Name: The
Commissioner of Income Tax
Respondent/Defnt. Name: United
Breweries Limited
Petnr./Appnt. Advocate: K V Aravind
Respnt./Defnt. Advocate: S R Anuradha
Date Filed: 05.04.2007
District: Bangalore City
Stage: Hearing
Last Posted for: Final Hearing
Last Action Taken: Adjourned
Last Date of Action: 02.01.2014
Next hearing date: 07.01.2014
Before Hon'ble Judge/s: Dilip B. Bhosale
Lower Court Details [Appeal from below case.]
|
Case No |
Court name |
Disposal Dt |
|
ITA 3043/2004 |
ITAT, BANGALORE |
15/09/2006 |
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10465214 |
23/10/2013 |
1,054,000,000.00 |
RABOBANK INTERNATIONAL
(COOPERATIEVE CENTRALE RAIF |
32/F THREE
PACIFIC PLACE, 1 QUEEN'S ROAD, EAST, HONG KONG, - 00000, HONG KONG |
B91567354 |
|
2 |
10465215 |
23/10/2013 |
1,330,600,000.00 |
RABOBANK INTERNATIONAL
(COOPERATIEVE CENTRALE RAIF |
32/F THREE
PACIFIC PLACE, 1 QUEEN'S ROAD, EAST, HONG KONG, - 00000, HONG KONG |
B91568014 |
|
3 |
10416866 |
22/02/2013 |
1,080,000,000.00 |
CITI BANK N.A. |
PRESTIGE MERIDIAN,
30, M G ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
B72310022 |
|
4 |
10391030 |
30/04/2013 * |
2,464,000,000.00 |
DBS BANK LIMITED
|
SALARPURIA
WINDSOR, 3, ULSOOR ROAD, BANAGLORE, KARNATAKA - 560042, INDIA |
B76040328 |
|
5 |
10382184 |
23/10/2013 * |
1,054,000,000.00 |
RABOBANK
INTERNATIONAL (COOPERATIEVE CENTRALE RAIF |
FORBES BUILDING,
SECOND FLOOR, CHARANJIT RAI MARG, FORT., MUMBAI, MAHARASHTRA - 400001, INDIA |
B91762161 |
|
6 |
10383494 |
23/10/2013 * |
1,054,000,000.00 |
RABOBANK
INTERNATIONAL (COOPERATIEVE CENTRALE RAIF |
32/F THREE
PACIFIC PLACE, 1 QUEEN'S ROAD, EAST, HONG KONG, - 00000, HONG KONG |
B91761718 |
|
7 |
80018044 |
21/02/2013 * |
7,500,000,000.00 |
CITI BANK N.A. |
PRESTIGE
MERIDIAN, 30, M G ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
B71550214 |
|
8 |
90303586 |
15/06/1992 |
5,000,000.00 |
UNION BANK OF
INDIA |
EGMORE BRANCH,
MADRAS, TAMILNADU - 600008, INDIA |
- |
* Date of charge modification
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Deferred payment liabilities |
438.600 |
447.000 |
|
SHORT-TERM BORROWINGS |
|
|
|
Indian currency short-term loans from banks |
1250.000 |
1650.000 |
|
Indian currency bank overdraft |
196.700 |
0.000 |
|
Foreign currency buyer's credit from bank |
392.400 |
0.000 |
|
Total
|
2277.700 |
2097.000 |
Notes:
LONG-TERM BORROWINGS
a) Citibank: Rs.
Nil (Previous year: Rs.153.300 millions) pertains to loan availed in February
2010 which was repayable in 3 annual equal installments starting from February
2011. This loan carried interest of 12% per annum. This loan has been fully
repaid during the year.
b) Deferred
payment liability of Rs.447.000 millions (Previous year: Rs.447.000 millions)
pertains to sales tax payable to the Government of Maharashtra by virtue of
being eligible for deferred payment after having established a manufacturing
unit in a notified backward area. This amount is repayable in five equal annual
installments on completion of 10 years from the end of respective year to which
sales tax liability relates.
SHORT-TERM BORROWINGS
a) Short-term
loans from banks are repayable after 30-90 days from the date of respective
loan and carry interest in the range of 9.50% to 11.00% p.a.
b) Bank overdraft
is repayable on demand and carry interest in the range of 9.92% to 10.05% p.a.
c) Buyer's credit from bank are repayable within 12 months from the date
of respective loan and carry interest in the range of 8.63% to 8.95% p.a.
CORPORATE
INFORMATION:
The Company is a
public limited company domiciled in India and incorporated under the provisions
of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange
(BSE), Bangalore Stock Exchange (BgSE) and National Stock Exchange (NSE). The
Company is engaged primarily in the manufacture and sale of beer. The Company
has manufacturing facilities in India.
AMALGAMATION
Scottish and
Newcastle India Private Limited (SNIPL) an Indian subsidiary of Heineken UK
Limited (Heineken Group), has been amalgamated into the Company by the Order of
the Hon’ble High Courts of Karnataka and Bombay with the appointed date of
April 01, 2012. The restructuring of various brewing entities of the group
including subsidiary and investment holding companies by way of amalgamation
into UBL has culminated in optimal administrative, management and synergy benefits
and resulted in cost savings, pooling of managerial skills and utilization of
valuable resources. It was found strategically necessary and expedient to
amalgamate SNIPL also into UBL for enhancing technical synergies in
manufacture, marketing and distribution of beer through Heineken and also
furthering management expertise.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY OVERVIEW
Beer is the
world’s oldest beverage, possibly dating back to the 6th millennium
BC. The world’s beer industry recorded almost 3% expansion in 2012 to reach
nearly $650 billion. Globally, the market growth is expected to jump by 6% by
2015. Standard lager represents the leading market segment, accounting for more
than 55% of the overall market. Brazil, Russia, India and China are recording
the highest rate of market growth within the global beer industry.
The Indian beer
industry has been witnessing steady growth over the last ten years, with
volumes crossing 263 million cases during 2013 against a mere 73 million cases
in 2002. The Indian beer market is lately dominated by strong beer, which
accounts for about 84% of the total beer industry. The premium beer market is a
mere 5% of the total but this segment is rapidly expanding, with a growth rate
of about 35% per annum in its segment. Beer consumption has been growing
rapidly at a CAGR (Compound Annual Growth Rate) of 11 per cent over the last 5
years. Despite a high population and strong economic growth, Indian Brewers
still face an uphill task in the world’s second-most-populous country. An
average Indian drinker consumes 1.7 liters of beer a year, compared with more
than 37 liters in China and 74 in the United States.
The Indian market
infrastructure is a barrier to higher growth. In India, alcohol is available in
around 65,000 outlets including shops, bars and restaurants which translates to
roughly one outlet for every 18,000 – 20,000 residents, whereas the global
average for the same is one outlet per 250 residents and the corresponding
figure for China is one outlet for every 300 residents. For instance, in urban
conglomeration like Greater Mumbai, there are around 2,500 outlets while in
Shanghai, which has similar population base, the number of outlets selling
alcohol is 18,000. An encouraging development is that in some cities like
Mumbai, the Government has started issuing licenses for outlets to sell beer
and wine only, delinking it from the sale of spirits. This development should
facilitate future growth.
Beer remains a
versatile product, with the launch of a wide range of new brands boosting the
drink’s popularity. Consumption is also being fuelled by a trend toward
drinking beer with meals. Widespread health concerns among consumers against
spirits is also encouraging a trend towards beer, which usually has lesser
alcohol content, rather than other higher alcohol content beverages.
In India the
reason for significantly lower consumption of beer compared to other emerging
/developed markets is the high taxation structure. Regulation and taxation of
alcoholic beverages is a State subject and regulatory policies have so far been
unfriendly on pricing and availability front. On the one hand, the States tend
to impost a plethora of duties but don’t allow companies to have free price
increases to offset incurred costs.
In 2013, strong
beer category grew over 16% and continues to dominate the beer market,
accounting for around 84% of the beer category, up from 80% in the preceding
year.
With growing
income and rising aspiration levels, consumers in India are becoming increasingly
experimental with beer. This has led to an increase in the number of pub
breweries in urban cities such as Gurgaon, Bangalore and Pune.
In addition, with
the increase in taxes on imported beers, entrepreneurs are now starting these
pub breweries where beers can be brewed fresh using a variety of ingredients to
create a diverse selection of beers. Howzatt, Biere Club and Doolally are a few
of the pub breweries started in India.
The Company is the
largest beer selling company in India and also available in several countries
abroad and has also forayed into wine business as Kingisher Bohemia bringing
the finest quality fruity, delectable wine from South Africa.
The Company
controls about 52% of India’s beer market and it has enhanced its market share
of key brands such as Kingisher Ultra and Kingisher Blue, Kingisher Strong and
Kingisher Premium Lager are amongst the largest beer brands in the country.
Taxation and
Regulation of alcohol being a State subject under the Constitution of India,
each State has separate set of regulations, restrictions and taxation structure
for alcoholic beverages. Some States also impose high export duties and
restrictions on the export of beer outside the State. Even the sales and
distribution structure varies from State to State as some markets are open
while in most States primary sale is canalized through State controlled
corporations.
Over the last 7
years, a plethora of foreign brands have entered the country with 100% Foreign
Direct Investment being permitted thereby increasing the choice of brands and
competition. All major global brewers are now present in India. Despite this,
the Company has been able to extend its market leadership position.
OPERATIONS
SALES
The Company had an
excellent year in which its Strong Beer portfolio crossed 100 million cases in
FY 2012-2013 thereby setting a new benchmark. Kingisher Strong, India’s largest
selling beer has crossed 80 million cases, while Kingisher Red and Kingisher Blue
crossed the 1 million case mark each. The combined forces of Kingisher Strong,
Kingisher Red, UB Export Strong, London Pilsner Premium Strong, Cannon 10000,
Bullet, Kalyani Black Label Strong and Zingaro have yet again proved to be the
chosen brands in the market. The Company continues to lead the Indian beer
market with 52% market share. During the year, the Company has increased its
market share in the States of Karnataka, Maharashtra, Goa, Rajasthan, Bihar and
Jharkhand.
The net sales for
the year 2012-2013 stood at Rs.39031.000 millions as against net sales of
Rs.35618.000 millions in the previous year, registering a growth of 10%. Their
volume is over twice than that of the nearest competitor.
The Company over
the past few years has launched variants such as Kingisher Ultra, a mild beer,
and Kingisher Red as part of its ‘premiumization’ strategy. Kingisher Ultra is
priced at a significant premium to the core Kingisher brand. The Company’s
increased spend on marketing and distributing these brand variants has led to
strong sales growth and it plans to accelerate its push towards these brands.
Kingisher Blue is
available practically across the country, while Kingisher Ultra is reaching out
to new States every month, and will soon have a pan India presence. Kingisher
Red is available in the North and East. Over the past year, Kingisher Ultra
volumes increased by 86% and Kingisher Blue depletions grew by 14% to one
million cases. Kingisher Red also sold one million cases, up 53%.
The Company brews
Heineken in India which is the fastest-growing brand in the premium segment.
Heineken, which is currently sold in 10 States, almost doubled its volumes
during the year. Heineken will be launched in Kerala and Rajasthan shortly and
the brand’s penetration in its existing markets has increased by 50%.
PROSPECTS
Indian growth
rates compare favourably to the global beer industry average of about 3% p.a.
Apart from a sound positive growth rate for beer, the climatic conditions and
younger population make the scenario more promising for the beer industry in
India. With growth in GDP, higher disposable income, change in consumer
behavior and liberalization in retail / distribution, the beer market is
expected to grow at a brisk pace. The Company’s established brand equity
provides a significant competitive advantage over other domestic and
international brands. The Company has the benefit of a strong distribution
network across the length and breadth of the country and rapid growth can be
expected year on year. As is usual, augmenting capacities in critical markets
continued to be a priority investment in the current financial year too.
Increased demand for beer in the State of Karnataka inspired setting up a new
Greenfield Brewery at Nanjungud which has gone on stream during the year under
report and increased demand in the State of Bihar has provided an impetus for
setting up a new Greenfield Brewery near Patna which is expected to commence
its operations next year. The competitive environment is expected to remain intense
and the Company shall continue to focus on robust innovations to remain a
market leader. Though high inflation will have an impact on costs, the Company
shall continually strive to achieve high operational efficiencies to offset the
increase in costs. Through these actions, the Directors are hopeful that the
Company would continue its leadership position, grow ahead of the market and
realize a structural improvement in profitability in the years to come.
AMALGAMATION ACCOUNTING
a) The scheme of amalgamation
(‘the scheme’) under sections 391 to 394 of the Companies Act, 1956 between UB
Ajanta Breweries Private Limited (‘UBA’) and the Company with appointed date as
April 1, 2011 was approved by the Honorable BIFR Court, Delhi vide its order
dated February 13, 2012. UBA was engaged in the brewing business. Upon
necessary filing with the Registrar of Companies on February 21, 2012, the
scheme had become effective and the effect thereof was given during the
previous year ended March 31, 2012. In respect of the merger of UBA with the
Company:
(i) The entire
business and the whole of the undertaking of UBA, as a going concern was
transferred to and vested in the Company with effect from April 1, 2011.
(ii) In
consideration of the amalgamation of UBA with the Company, the Company issued
709,578 equity shares of Re. 1 each aggregating to Rs.0.700 million in the
ratio of 135:1.
(iii) The
authorized share capital of the Company was increased by Rs.54.000 millions in
respect of equity shares of Re. 1 each and by Rs.946.000 millions in respect of
preference shares of Rs.100 each.
(iv) The
amalgamation was accounted for on the basis of the pooling of interest method
as per Accounting Standard (AS) 14 on Accounting for Amalgamations notified by
the Companies (Accounting Standard) Rules 2006 (as amended) (‘AS-14’) and in
terms of the scheme, as below:
• All asset and
liabilities of UBA were accounted at their respective book values under the
respective heads of the Company.
• The difference
amounting to Rs.2.800 millions between the values of net assets of the UBA
transferred to the Company and the carrying value of the Company’s investment
was adjusted to Capital Reserve.
• The intercompany
balances and the transactions were cancelled.
b) The Board of
Directors in its meeting held on February 7, 2012 had approved the scheme of
amalgamation (‘the scheme’) under section 391 to 394 of the Companies Act 1956,
in respect of merger of Scottish and Newcastle India Private Limited (‘SNIPL’)
into the Company with effect from April 1, 2012. SNIPL was incorporated to
provide technical consultancy for the manufacture, marketing and distribution
of beer and allied products in India and to form strategic partnership with the
Company. The Honorable High Court of Karnataka and the Honorable High Court of
Maharashtra have passed orders approving the scheme on January 17, 2013 and
November 2, 2012 respectively. Upon filing of the orders of the Honorable High
Court of Karnataka and the Honorable High Court of Maharashtra with the Registrar
of Companies on April 18, 2013 and November 30, 2012 respectively, the scheme
has become effective and accordingly, the Company has given effect to the
merger in these financial statements with effect from April 1, 2012. In terms
of the scheme, the amalgamation has been accounted for under the pooling of
interest method as per AS-14. Accordingly, all the assets, liabilities and
reserves recorded in the books of SNIPL as at March 31, 2012 have been recorded
by the Company at their respective book values as follows:
|
Particulars |
Amount
(Rs.
in millions) |
|
Long-term loans and advances |
2.400 |
|
Cash and bank balances |
41.400 |
|
Other current assets |
0.600 |
|
Trade payables |
(5.000) |
|
Other current liabilities |
(0.600) |
|
Securities premium |
(1652.300) |
|
Surplus in the statement of profit and loss |
(332.600) |
Further, in terms
of the approved scheme:
(i) The authorized
share capital of the Company has been increased by Rs.455.800 millions in respect
of equity shares of Re.1 each.
(ii) The
investments held by SNIPL in 84,89,270 equity shares of Re.1 each of the
Company with carrying value of Rs.2268.300 millions have been cancelled and the
corresponding issued, subscribed and paid up equity share capital of the
Company has been reduced by Rs.8.500 millions representing 8,489,270 equity
shares of Re.1 each. Also, other inter-company balances and transactions have
been cancelled.
(iii) 84,89,270
fully paid up equity share of Re.1 each of the Company have been issued and
allotted to the shareholders of SNIPL against 3,22,23,912 equity shares of
Rs.10 each held by them in SNIPL.
(iv) The
difference of Rs.2259.800 millions on cancellation of investments held by SNIPL
in equity shares of the Company, as discussed in (ii) above and the difference
of Rs.313.700 millions between the amount of shares issued by the Company and
the amount of share capital of SNIPL as discussed in (iii) above have been
adjusted from capital reserve and securities premium account of the Company by
Rs.128.600 millions and Rs.1817.500 millions respectively.
(v) Dividend
income of Rs.5.900 millions recognized by SNIPL during the year and expenses
incurred in connection with the scheme amounting to Rs.68.700 millions, have
been adjusted against securities premium account. No specific accounting
treatment has been prescribed under AS-14 in respect of adjustment, to capital
reserve and securities premium account, arising on account of the difference on
cancellation of investments held by SNIPL in equity shares of the Company and
the difference between the amount of shares issued by the Company and the
amount of share capital of SNIPL and adjustment of dividend income and expenses
incurred in connection with the merger. Hence, the Company has followed
aforesaid treatment as stated in
(iv) and (v)
above, which is as per the approved scheme.
c) Pursuant to
mergers of Empee Breweries Limited (EBL) and Chennai Breweries Private Limited
(CBPL), with the Company during the year ended March 31, 2011, the Company is
in the process of getting the name of these merged entities changed in the of
state excise and other regulatory authorities. Pending completion of these
formalities, the names of these merged entities are continued to be used in
various documents and of the Company.
STATEMENT OF STANDALONE
UNAUDITED RESULTS FOR THE QUARTER AND HALF-YEAR ENDED SEPTEMBER 30, 2013
(Rs. in Millions)
|
Sr. No. |
Particular |
Quarter Ended |
Half Year Ended |
|
|
30.09.2013 (Unaudited) |
30.06.2013 (Unaudited) |
30.09.2013 (Unaudited |
||
|
1. |
Income From Operation |
|
|
|
|
|
Net Sales/Income from Operations |
7522.000 |
12083.300 |
19605.300 |
|
|
Other Operating Income |
931.800 |
1509.300 |
2441.100 |
|
|
Total Income
from Operation |
8453.800 |
13592.600 |
22046.400 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) Cost of materials consumed |
3433.000 |
5700.800 |
9133.800 |
|
|
b) Purchases of stock-in-trade |
50.500 |
182.900 |
233.400 |
|
|
c) Changes in
inventories of finished goods, work-in progress and stock-in-trade |
108.000 |
0.300 |
108.300 |
|
|
d) Employee benefits expense |
697.700 |
566.400 |
1264.100 |
|
|
e) Depreciation and amortization expense |
476.800 |
469.300 |
946.100 |
|
|
f) Advertisement & Sales promotion |
1769.100 |
1905.100 |
3674.200 |
|
|
g) Selling & Distribution |
958.100 |
1603.700 |
2561.800 |
|
|
h) Other expenses |
1059.900 |
1130.700 |
2190.600 |
|
|
Total |
8553.100 |
11559.200 |
20112.300 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and Exceptional
Items (1-2) |
(99.300) |
2033.400 |
1934.100 |
|
|
|
|
|
|
|
4. |
Other Income |
34.000 |
34.000 |
68.000 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
(65.300) |
2067.400 |
2002.100 |
|
|
|
|
|
|
|
6. |
Finance Costs |
201.400 |
230.300 |
431.700 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
(266.700) |
1837.100 |
1570.400 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
(266.700) |
1837.100 |
1570.400 |
|
|
|
|
|
|
|
10. |
Tax Expenses |
(81.000) |
627.500 |
546.500 |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
(185.700) |
1209.600 |
1023.900 |
|
|
|
|
|
|
|
12. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
264.400 |
264.400 |
264.400 |
|
|
|
|
|
|
|
13. |
Reserves Excluding Revaluation Reserve |
14101.800 |
14101.800 |
14101.800 |
|
|
|
|
|
|
|
14. |
Earnings/ (Loss)
Per Share (EPS) (Fair value of Re.1 each) Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
(0.73) |
4.55 |
3.82 |
|
|
b) Basic and diluted EPS after extraordinary items |
(0.73) |
4.55 |
3.82 |
|
|
|
|
|
|
|
15. |
Public
Shareholding |
|
|
|
|
|
- Number of Shares |
66570479 |
66570479 |
66570479 |
|
|
- Percentage of Shareholding |
25.18 |
25.18 |
25.18 |
|
|
|
|
|
|
|
18. |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
64447716 |
53983428 |
64447716 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
32.58 |
27.29 |
32.58 |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the Company) |
24.37 |
20.42 |
24.37 |
|
|
|
|
|
|
|
|
b) Non
Encumbered |
|
|
|
|
|
- Number of Shares |
133386954 |
143851242 |
133386954 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of Promoter
and Promoter Group) |
67.42 |
72.71 |
67.42 |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
50.45 |
54.40 |
50.45 |
|
PARTICULAR |
Quarter Ended
September 30, 2013 |
|
Pending at the beginning
of the quarter |
Nil |
|
Received during
the quarter |
6 |
|
Disposed of
during the quarter |
6 |
|
Remaining unresolved at the end of the quarter |
Nil |
STATEMENT OF
ASSETS AND LIABILITIES
(Rs. in Millions)
|
PARTICULARS |
30.03.2013 (Unaudited) |
|
Equity and
liabilities |
|
|
Shareholders'
fund |
|
|
Share capital |
1005.100 |
|
Reserve &
surplus |
15112.700 |
|
Sub-total - Shareholders' funds |
16117.800 |
|
Non – current
liabilities |
|
|
Long term
borrowings |
7409.400 |
|
Deferred tax
liability (net) |
734.300 |
|
Long term
provisions |
89.800 |
|
Sub-total - Non-current liabilities |
8233.500 |
|
Current
liabilities |
|
|
Short term
borrowings |
1897.500 |
|
Trade payables |
1681.400 |
|
Other current liabilities |
6424.100 |
|
Short term
provisions |
625.100 |
|
Sub-total - Current liabilities |
10628.100 |
|
Total - Equity & Liabilities |
34979.400 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
17211.000 |
|
Non-current investment |
254.700 |
|
Long term loans
& advances |
1308.400 |
|
Other Non –
Current Assets |
58.900 |
|
|
18833.000 |
|
Current assets |
|
|
Inventories |
5642.700 |
|
Trade
receivables |
7774.100 |
|
Cash & bank
balances |
1429.400 |
|
Short term loans
& advances |
1290.400 |
|
Other current
assets |
9.800 |
|
Sub-total - Current Assets |
16146.400 |
|
|
|
|
Total – Assets |
34979.400 |
Notes:
1. The unaudited
results for the quarter and half-year ended September 30, 2013 have been
approved by the board of Directors at its meeting held on November 7, 2013 and
have been subjected to a limited review by the auditors of the Company.
2. The Company is
engaged in the manufacture and sale of beer including licensing of brands which
constitutes a single business segment. The Company also considers the whole of
India as a single geographical segment. Further, considering the seasonality of
the business, the revenue and profits does not accrue evenly over the year.
3. The Board of
Directors in its meeting held on February 7, 2012 had approved the scheme of
amalgamation (‘the scheme’) of Scottish and Newcastle India Private Limited
into the Company with effect from April 1, 2012. The Honorable High Court of
Karnataka and the Honorable High Court of Maharashtra had passed orders
approving the scheme on January 17, 2013 and November 2, 2012 respectively.
Upon filing of the orders of the Honorable High Court of Karnataka and the
Honorable High Court of Maharashtra with the Registrar of Companies on April
18, 2013 and November 30, 2012 respectively, the scheme became effective and
accordingly, the Company had given effect to the merger in the quarter and year
ended March 31, 2013 with effect from April 1, 2012. The aforementioned merger
did not impact the shareholding pattern of the promoter group in the Company.
No specific
accounting treatment has been prescribed under AS-14 in respect of adjustment,
to capital reserve and securities premium account, arising on account of the
difference on cancellation of investments held by SNIPL in equity shares of the
Company and the difference between the amount of shares issued by the Company
and the amount of share capital of SNIPL and adjustment of dividend income and
expenses incurred in connection with the merger. Hence, as per the approved
scheme, the Company had adjusted differences on cancellation of investments
held by SNIPL in equity shares of the Company and the difference between the
amount of shares issued by the Company and the amount of share capital of SNIPL
of Rs.128.600 millions and Rs.1817.500 millions to capital reserve and
securities premium account, respectively. Further, dividend income of Rs.5.900
millions and expenses incurred in connection with the merger amounting to
Rs.68.700 millions, had been adjusted to securities premium account.
4. Employees
benefits expense for the year ended March 31, 2013 includes Rs.270.700 millions
relating to provision for claims for amount expected to be paid as
reimbursements. The management believes that outflow of resources embodying
economic benefits is probable and hence created a provision towards these
obligations.
5. Tax expense for
the year ended March 31, 2013 is net of reversal of Rs.173.300 millions
relating to current tax (MAT) for earlier year and Rs.80.900 millions relating
to deferred tax asset for earlier year.
6. During the
financial year ended March 31, 2012, the investment in Maltex Malsters Limited
(‘MML’), which had a carrying value of Rs.450.000 millions, had been written
down to Rs.254.100 millions. In view of management, no further provision for
diminution is considered necessary as at September 30, 2013.
7. The Company has
paid a dividend of Re.0.70 per Equity Share amounting to Rs.216.600 millions
(inclusive of Dividend Distribution Tax) for the year ended March 31, 2013. The
Company has paid a dividend of Rs.3/- per Cumulative Redeemable Preference
Share amounting to Rs.26.000 millions (inclusive of Dividend Distribution Tax)
for the year ended March 31, 2013 to Scottish and Newcastle India Limited.
8. Earnings per
Share (EPS) is stated after providing for dividend on the Cumulative Redeemable
Preference Shares for the respective periods.
9. The previous
period figures have been regrouped/reclassified wherever necessary to confirm
to this period’s classification.
FIXED ASSETS:
Tangible Assets
·
Freehold Land
·
Leasehold Land
·
Buildings
·
Leasehold Improvements
·
Plant and Machinery
·
Office Equipments
·
Computers
·
Furniture and Fixtures
·
Laboratory Equipments
·
Vehicles
Intangible Assets
·
Goodwill
·
Licenses and Rights
·
Brands
WEBSITE DETAILS:
PRESS RELEASES
PERFORMANCE HIGHLIGHTS – HALF YEAR ENDED SEPTEMBER 30, 2013.
Bangalore, November 7, 2013
·
REVENUE UP BY 7%
·
VOLUME SLIGHTLY LESS BY 2% DUE TO HEAVY MONSOONS
·
EBITDA DOWN BY 7% DUE TO ABBERATION IN INPUT COST
During the first half of the year the industry
remained flat with Tamilnadu losing 20% of its volumes on account of higher
end-consumer prices and the unfavorable ordering pattern of TASMAC, which also
affected the UBL volumes in this State.
The Company posted volume growth in key
markets contributing to revenue growth of 7%. Double digit volume growth was witnessed
in Rajasthan, West Bengal, Orissa and Uttar Pradesh.
The Company has maintained its All India
market share of 50% despite the adverse developments in Tamil Nadu. It has
increased its market share in key markets at a time when pressure from competition
has been at its peak, considering the difficult times the industry has been
going through.
The volumes for this second quarter have been
under pressure, also as a result of the extended and heavy rains experienced
during this year’s monsoon period.
The Company took price increases in select
markets that helped in off-setting a major portion of input price increases in
an inflationary economy. However the effect of the Company being forced to use
new bottles for 100% of its production in the state of Maharashtra on account
of local excise laws lead to an unprecedented increase in input costs of over
Rs.460.000 millions during the first half
year.
The Maharashtra State Government has since
reversed this policy and passed a notification in October 2013 permitting once
again the use of second hand bottles which will reduce input costs to normal
levels.
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.24 |
|
|
1 |
Rs.102.17 |
|
Euro |
1 |
Rs.84.82 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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 |
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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
52 |
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.