MIRA INFORM REPORT
|
Report Date : |
02.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
VST INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
1-7-1063/1065, Azambad, Hyderabad – 500020 Talangana, Andhra Pradesh |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
10.11.1930 |
|
|
|
|
Com. Reg. No.: |
01-000576 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 154.419 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29150TG1930PLC000576 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDV00023C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer and Marketer of Cigarettes. |
|
|
|
|
No. of Employees
: |
905 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 12000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an associates of “BRITISH AMERICAN TOBACCO PLC”. It is a
well-established company having excellent track. The company possesses a robust financial profile marked by strong
capital structure characterized by its zero debt status, steady cash accruals
and strong liquidity stemming from its healthy portfolio of liquid
investments and cash. Management has reported a healthy operating profile margin during FY
14. Trade relations are trustworthy. Business is active. Payment terms are
reported as regular and as per commitments. The ratings also take into consideration, the subject being a third
largest player in the Indian cigarette market, having its operations
concentrated in the southern and eastern regions. In view of strong brand loyalty and vast experience of the promoters,
the subject can be considered excellent for business dealings at usual trade
terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a
quarter of a century. The data was below an official estimate of 4.9 % annual growth
and compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before.A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of the
global e-commerce giant Amazon. The company raised $ 210 million from Russian
Investment firm DST Global which has also invested in companies like Facebook,
Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two.While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs 2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers wih hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
AA+ [Non-Convertible Debentures Programme] |
|
Rating Explanation |
Having high degree of safety regarding timely servicing of financial
obligation it carry very low credit risk. |
|
Date |
22.07.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ [Letter of Credit and Bank Guarantee] |
|
Rating Explanation |
Having very strong degree of safety regarding timely payment of
financial obligation it carry lowest credit risk. |
|
Date |
22.07.2013 |
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 DECLINED
MANAGEMENT NON – COOEPRATIVE (91-40-27610460)
LOCATIONS
|
Registered Office : |
1-7-1063/1065, Azambad, |
|
Tel. No.: |
91-40-27610460/ 27615161/ 27617531 |
|
Fax No.: |
91-40-27615336 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Raymond s. Noronha |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. N. Sai sankar |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Devraj Lahiri |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Peter G. Henriques |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. T. Lakshmanan |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. R.V.K.M. Suryarau |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. S. Thirumalai |
|
Designation : |
Non-Executive Director |
|
|
|
|
Name : |
Mr. Asha Nair (w.e.f. 1st October, 2012) |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Nitesh Bakshi |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
Total No. of
Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
4965902 |
32.16 |
|
|
4965902 |
32.16 |
|
Total shareholding of Promoter and Promoter Group (A) |
4965902 |
32.16 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1831520 |
11.86 |
|
|
14048 |
0.09 |
|
|
461685 |
2.99 |
|
|
1787445 |
11.58 |
|
|
4094698 |
26.52 |
|
|
|
|
|
|
4149984 |
26.87 |
|
|
|
|
|
|
1880913 |
12.18 |
|
|
119358 |
0.77 |
|
|
231065 |
1.50 |
|
|
119532 |
0.77 |
|
|
14892 |
0.10 |
|
|
3713 |
0.02 |
|
|
25 |
0.00 |
|
|
90603 |
0.59 |
|
|
2300 |
0.01 |
|
|
6381320 |
41.32 |
|
Total Public shareholding (B) |
10476018 |
67.84 |
|
Total (A)+(B) |
15441920 |
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) |
15441920 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Marketer of Cigarettes. |
GENERAL INFORMATION
|
No. of Employees : |
905 (Approximately) |
|
|
|
|
Bankers : |
Not Divulged |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewes Chartered Accountants |
|
|
|
|
Company having significant influence : |
British American
Tobacco Group |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,00,00,000 |
Ordinary Shares |
Rs.10/- each |
Rs.500.000 Millions |
|
50,00,000 |
Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs.500.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.1000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,54,41,920 |
Ordinary Shares |
Rs.10/- each |
Rs.154.419 Millions |
|
|
|
|
|
Note:
THERE WAS NO MOVEMENT IN NUMBER OF ORDINARY SHARES DURING THE YEAR.
DETAILS OF SHAREHOLDERS HOLDING MORE THAN 5% OF ORDINARY SHARES:
|
Name of the
Shareholders |
31.03.2013 |
|
|
|
No. Millions |
% holding |
|
Bright Star Investments Private Limited |
4.007 |
25.95 |
|
The Raleigh Investment Company Limited |
3.620 |
23.45 |
|
Tobacco Manufacturers ( |
1.279 |
8.28 |
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 |
154.419 |
154.419 |
154.419 |
|
(b) Reserves & Surplus |
2886.663 |
2747.502 |
2489.974 |
|
(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) |
3041.082 |
2901.921 |
2644.393 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
2.212 |
4.999 |
3.033 |
|
Total
Non-current Liabilities (3) |
2.212 |
4.999 |
3.033 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
545.094 |
470.279 |
319.909 |
|
(c) Other current liabilities |
2718.192 |
2567.621 |
2612.629 |
|
(d) Short-term provisions |
1129.142 |
1166.554 |
807.614 |
|
Total
Current Liabilities (4) |
4392.428 |
4204.454 |
3740.152 |
|
|
|
|
|
|
TOTAL |
7435.722 |
7111.374 |
6387.578 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1751.657 |
1634.066 |
1523.671 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.537 |
|
(iii) Capital work-in-progress |
0.603 |
1.243 |
0.664 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
32.557 |
217.403 |
217.403 |
|
(c) Deferred tax assets (net) |
85.664 |
115.347 |
138.820 |
|
(d) Long-term Loan and Advances |
107.638 |
63.945 |
92.701 |
|
(e) Other Non-current assets |
0.127 |
0.082 |
0.082 |
|
Total
Non-Current Assets |
1978.246 |
2032.086 |
1973.878 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
1954.846 |
2020.000 |
1492.520 |
|
(b) Inventories |
2533.680 |
2382.509 |
2355.697 |
|
(c) Trade receivables |
236.945 |
126.211 |
127.662 |
|
(d) Cash and cash equivalents |
472.722 |
359.745 |
289.617 |
|
(e) Short-term loans and
advances |
225.376 |
180.630 |
138.693 |
|
(f) Other current assets |
33.907 |
10.193 |
9.511 |
|
Total
Current Assets |
5457.476 |
5079.288 |
4413.700 |
|
|
|
|
|
|
TOTAL |
7435.722 |
7111.374 |
6387.578 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
6686.752 |
6844.293 |
5815.356 |
|
|
Other Income |
262.531 |
257.201 |
171.108 |
|
|
TOTAL
(A) |
6949.283 |
7101.494 |
5986.464 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
3241.955 |
3047.342 |
2902.442 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(36.077) |
34.446 |
(49.021) |
|
|
Employees benefits expense |
634.275 |
619.538 |
605.970 |
|
|
Other expenses |
1043.580 |
1045.321 |
930.326 |
|
|
TOTAL
(B) |
4883.733 |
4746.647 |
4389.717 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
2065.550 |
2354.847 |
1596.747 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2065.550 |
2354.847 |
1596.747 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
224.985 |
248.266 |
244.165 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
1840.565 |
2106.581 |
1352.582 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
578.083 |
681.495 |
404.477 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
1262.482 |
1425.086 |
948.105 |
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1020.500 |
907.000 |
862.000 |
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
126.500 |
145.000 |
97.500 |
|
|
Dividend |
965.100 |
1003.700 |
694.900 |
|
|
Tax on Dividend |
164.000 |
162.900 |
112.700 |
|
|
Total
|
1255.600 |
1311.600 |
905.100 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
1027.000 |
1020.500 |
907.000 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
1212.905 |
1557.495 |
1504.029 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
71.612 |
84.590 |
85.672 |
|
|
Components and Stores parts |
6.430 |
5.885 |
5.97 |
|
|
Capital Goods |
220.374 |
261.312 |
242.029 |
|
|
TOTAL
IMPORTS |
298.416 |
351.787 |
333.671 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
81.76 |
92.29 |
61.53 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 1st
Quarter |
30.09.2013 2nd
Quarter |
31.12.2013 3rd
Quarter |
31.03.2014 4th
Quarter |
|
Audited / UnAudited |
UnAudited |
UnAudited |
UnAudited |
UnAudited |
|
Net Sales |
1767.900 |
2110.900 |
2122.100 |
1890.800 |
|
Total Expenditure |
1370.300 |
1599.600 |
1487.700 |
1253.000 |
|
PBIDT (Excl OI) |
397.600 |
511.300 |
634.400 |
637.800 |
|
Other Income |
60.100 |
32.400 |
24.500 |
207.400 |
|
Operating Profit |
457.700 |
543.700 |
658.900 |
845.200 |
|
Interest |
0.000 |
0.000 |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
457.700 |
543.700 |
658.900 |
845.200 |
|
Depreciation |
58.100 |
59.000 |
77.500 |
71.100 |
|
Profit Before Tax |
399.600 |
484.700 |
581.400 |
774.100 |
|
Tax |
128.500 |
160.200 |
194.400 |
255.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
271.100 |
324.500 |
387.000 |
518.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
271.100 |
324.500 |
387.000 |
518.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
18.17 |
20.07 |
15.84 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
27.53 |
30.78 |
23.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
25.15 |
31.08 |
22.43 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.61 |
0.73 |
0.51 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.24 |
1.21 |
1.18 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
154.419 |
154.419 |
154.419 |
|
Reserves & Surplus |
2489.974 |
2747.502 |
2886.663 |
|
Net
worth |
2644.393 |
2901.921 |
3041.082 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total
borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity
ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5815.356 |
6844.293 |
6686.752 |
|
|
|
17.693 |
(2.302) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
5815.356 |
6844.293 |
6686.752 |
|
Profit |
948.105 |
1425.086 |
1262.482 |
|
|
16.30% |
20.82% |
18.88% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
No |
|
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
CASE STATUS INFORMATION SYSTEM
|
WA 817 / 2012 |
WASR 15791 / 2010 |
CASE IS:PENDING |
|
PETITIONER |
|
RESPONDENT |
|
THE REGIONAL PROVIDENT FUND COMMISSIONER, HYD |
VS |
M/S. VST INDUSTRIES LIMITED HYDERABAD AND ANO |
|
PET.ADV. : REDDY |
|
RESP.ADV. : GP FOR LABOUR |
|
SUBJECT: A.P.D.D.C.F.LTD.(MISC.MATTERS) |
|
DISTRICT: HYDERABAD |
|
FILING DATE: 10-02-2010 |
|
POSTING STAGE : INTERLOCUTORY |
|
REG. DATE : 30-06-2012 |
LISTING DATE : 01-07-2013 |
STATUS : ADMIT |
|
HON'BLE JUDGE(S): |
N.V.RAMANA |
VILAS V.AFZULPURKAR |
INDUSTRY STRUCTURE
AND DEVELOPMENT
In an industry first, the excise structure that was outlined in the Union Budget presented in March 2012, was revised significantly in May 2012. The revised Budget led to an adverse impact for the Company as the excise rate increased from 11% to 21%. This led to an industry volume decline of 2% and pressure on VST brands.
The current year also witnessed significant hikes in VAT rates where the Company faced the largest increase in VAT rate in industry; up from 17% to 22%. This was largely driven by a VAT hike from 20% to 50% in Uttar Pradesh. This has impacted volumes and profitability in the current year and is likely to be a challenge in the future.
A key development was the introduction of the 64mm filter-tipped cigarette with a new excise slab. This was adopted widely by industry due to favorable duty rates and proximity in length to the largest segment in the industry of 69mm filter-tipped cigarettes. Affordability coupled with brand heritage has led to a rapid growth of this segment, partially off setting a decline in the RSFT segment.
SEGMENT WISE
PERFORMANCE
The Company considers tobacco and related products as the primary segment for reporting. Geographical segments considered for disclosure primarily consist of sales within India and sales outside India. The entire activity pertaining to sales outside India is carried out from India.
The Company's brands were under pressure during 2012-13. Specifically, the first half of the year was particularly challenging. This was due to several factors including dual excise structure revisions, sharp increases in VAT rates, pressure on the 69mm filtered segment due to the emergence of the 64mm segment, and industry-wide consumption losses due to sharp price increases. However, the Company as successful in driving a sharp recovery in the second half through strong performance of the 69mm brands and astute positioning of the new 64mm brands.
In this context, the Company has managed to launch several successful 64mm variants, capturing 15% of the
segment market share. This can be attributed to the strong brand health of the 69mm brands, which when combined with the smaller variant has helped to largely retain existing consumer levels.
MARKET SCENARIO
Cigarette volumes during 2012-13 stood at 8062 mns, down 12% when compared to 2011-12. This was a consequence of consumption drops due to steep price hikes across brands. The value realisations were maintained at Rs.14340.000 Millions , compared to Rs.14320.000 Millions in the previous year.
There is a concerted effort by competition to launch brands in the value-for-money segment where the Company largely operates. The Company continues to have strong presence in this segment.
LEAF TOBACCO
The Company has recorded leaf sales turnover of Rs.1870.000 Millions , in the year 2012-13 leveraging the expertise in all the varieties of tobacco. In view of the amalgamations at international level and major blue chips having tied-up closely with local partners, the Company is concentrating on local sales utilizing the image with the local trade in addition to exports for maximizing turnover and profits.
The focus on developing niche varieties of tobacco continued. Besides helping develop the backward regions, it has also helped in improving the Company's profitability. The oriental project continues with improved agronomic practices.
It is satisfying to know that the Company's farmers continue to grow tobacco with lowest pesticide residue levels and low TSNAs (Tobacco Specific Nitrosamaines) that are well within international standards. The Company's leaf tobacco function continues to be certified by Registro Italiano Navale, Genova, Italy for SA8000 reflecting Company's resolve to follow best international practices in its operations. Also fulfilling the social responsibility in tobacco production (SRTP) that is certified by the audit teams of multinational cigarette manufacturers.
The Company continues to encourage education to children in the operational areas by way of creating infrastructure for school buildings and spreading awareness in the villages.
PRODUCTION AND PLANT
MODERNISATION
In order to keep pace with the changing technology the Company has been constantly modernizing its plant to improve the quality, productivity and efficiency of the products. In the Primary Manufacturing Department, bar code system was introduced during the year which has automated the receipt of different grades of tobacco as per the sequencing specification of the blending department and has substantially improved the efficiency. Automated flavor application system was also introduced in the Primary Manufacturing Department to ensure uniform flavor application on cut tobacco blend.
In the Secondary Manufacturing Department, world class high speed GD-X6 packing line was inducted which has almost doubled the speed of packing and reduced the wastages to minimum. Union Budget 2012 declared 64mm filter cigarette as a new segment and the Company has overcome this challenge by successfully converting the cigarette packers by deploying in-house expertise without any external support and at a very low cost. In continuance with this tradition, 106 workmen were trained during the year to improve their technical skills.
THE FUTURE
The focus of the Company will continue to remain on cigarettes and tobacco with thrust on twin strategies of growth and productivity. VAT rates vary from 12.5% to 65% from state to state and it is expected that high taxation will continue to be a norm.
Implementation of Goods and Services Tax is expected shortly which could throw up new challenges. However, the Company is geared up to meet these challenges. New pictorial warning on the cigarettes have come into force effective 1st April, 2013 and the same could be found on cigarette packs.
New Companies Bill encompassing wide range of changes is on the anvil and after being approved by the Lok Sabha is awaiting the approval of the Rajya Sabha.
Leaf tobacco exports have been growing over the last several years and the Company's thrust on this area will continue.
INDEX
OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
90140529 |
22/06/2001 |
150,000,000.00 |
ICICI LIMITED |
ICICI TOWERS,
BANDRA KURLACOMPLEX; BANDRA (EAST), |
- |
|
2 |
90258384 |
20/03/1998 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, HYDERABAD, ANDHRA PRADESH - 500482, INDIA |
- |
|
3 |
90258376 |
08/06/1999 * |
180,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORP. OF INDIA |
163; BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
4 |
90258166 |
20/03/1998 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, TOPAZ BUILDING, HYDERABAD, ANDHRA PRADESH, INDIA |
- |
|
5 |
90258056 |
20/03/1998 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, HYDERABAD, ANDHRA PRADESH - 500482, INDIA |
- |
|
6 |
90258034 |
08/06/1999 * |
180,000,000.00 |
THE INDUSTRIAL CREDIT AND INVESTMENT CORP. OF INDIA |
163; BACKBAY RECLAMATION, MUMBAI, MAHARASHTRA - 400020, INDIA |
- |
|
7 |
90120749 |
15/09/1994 |
50,000,000.00 |
STANDARD CHARTERED BANK |
58; ARMENIAN STREET, MADRAS, TAMIL NADU - 600001, INDIA |
- |
|
8 |
90120745 |
28/05/1996 * |
125,000,000.00 |
STATE BANK OF HYDERABAD INDUSTRIAL BRANCH |
6-3-713; PUNJAGUTTA, HYDERABAD, ANDHRA PRADESH - 500482, INDIA |
- |
|
9 |
90257994 |
05/09/1994 * |
144,000,000.00 |
STATE BANK OF INDIA |
BANK STREET,
HYDERABAD, ANDHRA PRADESH - 500001, I |
- |
|
10 |
90120626 |
26/07/1993 |
90,000,000.00 |
AMERICAN EXPRESS INTERNATIONAL BANKING CORPORATION |
HAMILTON HOUSE; BLOCK A, CANNOUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA |
- |
* Date of charge modification
STATEMENT OF STANDALONE AUDITED FINANCIAL RESULTS FOR THE QUARTER AND
YEAR ENDED 31ST MARCH, 2014
Rs. in Millions
|
Sr. No. |
PARTICULAR |
Quarter Ended |
Year Ended |
|
|
|
|
31.03.2014 (Unaudited) |
31.12.2013 (Unaudited) |
31.03.2014 (Audited) |
|
1. |
Income from
Operations |
|
|
|
|
|
(a) Gross Sales / Income from Operations |
3771.300 |
4149.700 |
16267.200 |
|
|
(b) Less: Excise Duty |
1881.500 |
2042.400 |
8420.400 |
|
|
(c) Net Sales / Income from Operations |
1889.800 |
2107.300 |
7846.800 |
|
|
(d) Other Operating Income |
1.000 |
14.800 |
44.900 |
|
|
Total Income
from Operations (net) |
1890.800 |
2122.100 |
7891.700 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
(a) Cost of Materials Consumed |
789.100 |
1057.500 |
3846.500 |
|
|
(b) Changes in
Inventories of Finished goods and Work-in -progress |
32.700 |
(19.700) |
(19.600) |
|
|
(c) Employee Benefits expense |
184.500 |
172.700 |
699.200 |
|
|
(d) Depreciation, Amortization and Impairment expense |
71.100 |
77.500 |
265.700 |
|
|
e) Other Expenses |
246.700 |
277.200 |
1184.500 |
|
|
f) Total |
1324.100 |
1565.200 |
5976.300 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
566.700 |
556.900 |
1915.400 |
|
|
|
|
|
|
|
4. |
Other
Income |
207.400 |
24.500 |
324.400 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
774.100 |
581.500 |
2239.800 |
|
|
|
|
|
|
|
6. |
Interest |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
774.100 |
581.500 |
2239.800 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
774.100 |
581.500 |
2239.800 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
255.200 |
194.400 |
738.300 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
518.900 |
387.000 |
1501.500 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
518.900 |
387.000 |
1501.500 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
154.400 |
154.400 |
154.400 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
0.000 |
0.000 |
3091.900 |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earnings Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
33.60 |
25.06 |
97.24 |
|
|
b) Basic
and diluted EPS after extraordinary items |
33.60 |
25.06 |
97.24 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
10476018 |
10476018 |
10476018 |
|
|
-
Percentage of Shareholding |
67.84 |
67.84 |
67.84 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
-- |
4965902 |
4965902 |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
-- |
100 |
100 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
-- |
32.16 |
32.16 |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
4965902 |
4965902 |
4965902 |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
100 |
100 |
100 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
32.16 |
32.16 |
32.16 |
|
INVESTOR COMPLAINTS |
Quarter Ended 31.03.2014 |
|
Pending at the beginning of the quarter |
-- |
|
Received during the quarter |
12 |
|
Disposed of during the quarter |
12 |
|
Remaining unresolved at the end of the quarter |
-- |
NOTE:
The above mentioned results were reviewed by the Audit Committee at its meeting held on April 21, 2014 and approved by the Board of Directors at its meeting held on April 22, 2014.
The figures for the quarter ended March 31, 2014 and March 31, 2013 are the
balancing figures between the audited figures in respected of the full
financial year and the published year to date figures upto the third quarter of
the relevant financial year.
STANDALONE STATEMENT
OF ASSETS AND LIABILITIES
|
SOURCES
OF FUNDS |
31.03.2014 |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
154.400 |
|
(b) Reserves & Surplus |
3128.000 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
3282.400 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
0.000 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
|
(d) long-term provisions |
32.900 |
|
Total
Non-current Liabilities (3) |
32.900 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
0.000 |
|
(b) Trade payables |
499.100 |
|
(c) Other current liabilities |
2472.300 |
|
(d) Short-term provisions |
1264.600 |
|
Total
Current Liabilities (4) |
4236.000 |
|
|
|
|
TOTAL |
7551.300 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
2091.300 |
|
(b) Non-current Investments |
32.500 |
|
(c) Deferred tax assets (net) |
99.000 |
|
(d) Long-term Loan and Advances |
21.400 |
|
(e) Other Non-current assets |
0.100 |
|
Total
Non-Current Assets |
2244.300 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
1779.600 |
|
(b) Inventories |
2676.200 |
|
(c) Trade receivables |
77.800 |
|
(d) Cash and cash equivalents |
469.400 |
|
(e) Short-term loans and
advances |
256.700 |
|
(f) Other current assets |
47.300 |
|
Total
Current Assets |
5307.000 |
|
|
|
|
TOTAL |
7551.300 |
As the Company’s business activity falls within a single primary business
segment viz. "Tobacco and related products", the disclosure
requirements of Accounting Standard 17 "Segment Reporting" as
notified under Section 211 (3C) of the Companies Act, 1956 read with General
Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013, are not applicable.
The Board of Directors recommend dividend for the year 2013-14- Rs. 70.0/-
(2012-13- Rs. 62.5/-) per Equity Share of Rs. 10 each subject to approval of
the shareholders at the ensuing Annual General Meeting of the Company to be
held on August 12, 2014.
To facilitate comparison, figures of the previous period have been re-arranged,
where necessary.
FIXED ASSETS:
TANGIBLE ASSETS:
·
Land
·
Buildings Freehold
·
Leasehold Property
·
Plant and Equipments
·
Furniture and Fixtures
·
Motor Vehicle
·
Office Equipment
INTANGIBLE ASSETS:
·
Goodwill and Trade Marks
·
Computer Software
·
Time Share Rights
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.14 |
|
|
1 |
Rs.102.83 |
|
Euro |
1 |
Rs.82.28 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
71 |
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.