MIRA INFORM REPORT
|
Report Date : |
18.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
TIMEX GROUP INDIA LIMITED |
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Registered
Office : |
JA 1203,12th Floor, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
04.10.1988 |
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Com. Reg. No.: |
55-0334343 |
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Capital
Investment / Paid-up Capital : |
Rs.512.000 Millions |
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CIN No.: [Company
Identification No.] |
L33301DL1988PLC033434 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
DELT04785E |
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PAN No.: [Permanent
Account No.] |
AAACT0773C |
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Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
The Company is
engaged in the business of manufacturing and trading of watches and rendering
of related after sales service. |
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No. of Employees
: |
318 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (16) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The rating reflects company week financial risk profile marked by huge
accumulated losses incurred by company which has eroded net worth of the
company and weak liquidity position of the company. Business is active. Payment terms are slow and delayed. The company can be considered for business dealings on safe and
secured 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 |
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Restricted |
C2 |
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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.
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
31-03-2014.
INFORMATION DENIED
Management Non-Cooperative (Tel No.:
91-120-4741300)
LOCATIONS
|
Registered Office / Regional Office (North) : |
JA 1203,12th Floor, DLF Tower A, Jasola, New Delhi -110025, India |
|
Tel. No.: |
91-11-23417080 / 23417081 |
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Fax No.: |
91-11-23417082 |
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E-Mail : |
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Website : |
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Corporate Office : |
Studio no. 217, 2nd Floor, International Home
Deco Park, Plot No. 7, Sector-127 |
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Tel. No.: |
91-120-4741300 / 4741349 / 4741342 / 2521919 |
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Fax No.: |
91-120-4741440 |
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Factory : |
Plot No.10, Baddi Industrial Area, Katha Bhatoli, Baddi, District Solan,
Himachal Pradesh, India |
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Regional Office (East) : |
18/1 B, Hindustan Road, Kolkata – 700029,
West Bengal, India |
|
Tel. No.: |
91-33-24197743 / 44 |
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|
|
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Regional Office (West) : |
506/507, Janki Centre, Off- Veera Desai Road, Andheri (West), Mumbai –
400058, Maharashtra, India |
|
Tel. No.: |
91-22-61244110 / 61244111 |
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|
|
|
Regional Office
(South) : |
37/7, Meanee Avenue Road, Opposite Lake
Side Hospital, Near Ulsoor Lake, |
|
Tel. No.: |
91-80- 25369797 / 25306458 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Gary Piscatelli |
|
Designation : |
Non-Executive Director and Chairman |
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Name : |
Mr. M K Bandyopadhyay |
|
Designation : |
Acting Managing Director |
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Name : |
Mr. Daya Dhaon |
|
Designation : |
Non-Executive and Independent Director |
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Name : |
Ms. Gagan Singh |
|
Designation : |
Non-Executive and Independent Director |
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|
Name : |
Mr. Pradeep Mukerjee |
|
Designation : |
Non-Executive and Independent Director |
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|
Name : |
Mr. Bijou Kurien |
|
Designation : |
Non-Executive and Independent Director |
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Name : |
Mr. Ryan Todd Roth |
|
Designation : |
Non-Executive and Alternate Director to
Mr. Gary Piscatelli |
KEY EXECUTIVES
|
Name : |
Mr. Sachin Selot |
|
Designation : |
Chief Financial
Officer |
|
|
|
|
Name : |
Mrs. Shilpa Verma |
|
Designation : |
Company
Secretary |
SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
75645100 |
74.93 |
|
|
75645100 |
74.93 |
|
Total
shareholding of Promoter and Promoter Group (A) |
75645100 |
74.93 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
7800 |
0.01 |
|
|
3800 |
0.00 |
|
|
276100 |
0.27 |
|
|
400 |
0.00 |
|
|
400 |
0.00 |
|
|
288100 |
0.29 |
|
|
|
|
|
|
3399109 |
3.37 |
|
|
|
|
|
|
19694709 |
19.51 |
|
|
879857 |
0.87 |
|
|
1043125 |
1.03 |
|
|
1041725 |
1.03 |
|
|
1400 |
0.00 |
|
|
25016800 |
24.78 |
|
Total
Public shareholding (B) |
25304900 |
25.07 |
|
Total
(A)+(B) |
100950000 |
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) |
100950000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is
engaged in the business of manufacturing and trading of watches and rendering
of related after sales service. |
GENERAL INFORMATION
|
No. of Employees : |
318 (Approximately) |
|
|
|
|
Bankers : |
·
HDFC Bank Limited ·
The Hongkong and Shanghai
Banking Corporation Limited ·
JP Morgan |
|
|
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|
Banking
Relations : |
-- |
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|
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Auditors : |
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|
Name : |
BSR and Company Chartered Accountants |
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Holding Company
(As on 31.03.2013) : |
·
Timex Group Luxury Watches B.V (formerly Timex
Watches B.V) |
|
|
|
|
Ultimate Holding
Company (As on 31.03.2013) : |
·
Timex Group B.V. |
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|
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Fellow
Subsidiaries (As on 31.03.2013) : |
·
Timex Group B.V. T/A Mersey Manufacturers ·
Fralsen Horlogerie S.A.* ·
TMX Limited NV ·
Timex Corporation (Germany) ·
Timex Limited NV ·
Timex Nederland B.V. ·
Timex Group USA Inc. ·
Timex Group Luxury Watches B.V. (Ferragamo) ·
Timex Group Precision Engineering Limited (TGPEL) ·
Timex Hong Kong Limited* ·
Timex Portugal* ·
Timex Hungary Limited* ·
Verstime S.A. * No transactions during the current year. |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1250000000 |
Equity Shares |
Re.1/- each |
Rs.1250.000 Millions |
|
45000000 |
Preference Shares |
Rs.10/- each |
Rs.450.000 Millions |
|
|
Total |
|
Rs.1700.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1009500000 |
Equity Shares |
Re.1/- each |
Rs.101.000 Millions |
|
2500000 |
0.1% non-cumulative redeemable non-convertible preference
shares |
Rs.10/- each |
Rs.25.000 Millions |
|
15700000 |
7.1% cumulative redeemable non-convertible preference
shares |
Rs.10/- each |
Rs.157.000 Millions |
|
22900000 |
7.1% cumulative redeemable
non-convertible preference shares |
Rs.10/- each |
Rs.229.000 Millions |
|
|
Total |
|
Rs.512.000
Millions |
Reconciliation
of shares outstanding at the beginning and at the end of the reporting period
|
Particulars |
Number
of Shares |
Rs. In Millions |
|
Equity Shares |
|
|
|
At the commencement and end of the
year |
1009500000 |
101.000 |
|
Total |
1009500000 |
101.000 |
|
|
|
|
|
Preference Shares |
|
|
|
At the commencement and end of the
year |
|
|
|
0.1% non-cumulative redeemable non-convertible preference
shares |
2500000 |
25.000 |
|
7.1% cumulative redeemable non-convertible preference
shares |
15700000 |
157.000 |
|
7.1% cumulative
redeemable non-convertible preference shares |
22900000 |
229.000 |
|
Total |
41100000 |
411.000 |
Rights, preferences and restrictions attached to equity
shares
The Company has only one class of equity shares having a par
value of Re. 1 per share. Each holder of equity shares is entitled to one vote
per share. All equity shareholders rank equally with regard to dividends and
share in the Company’s residual assets.
The equity shareholders are entitled to receive dividend as declared by the
Company subject to payment of dividend to preference shareholders.
In the event of liquidation of the Company, the holders of
the equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in
proportion to the number of equity
shares held by the shareholders.
Rights, preferences and restrictions attached to
preference shares
0.1% Non-cumulative redeemable non-convertible preference
shares shall be entitled to dividend at the rate of 0.1% per annum. In case of
insufficiency of profits /no profits, the dividend on preference shares shall
not be declared and distributed and the dividend liability on the preference
shares for the respective year shall lapse.
7.1% Cumulative redeemable non-convertible preference shares
shall be entitled to dividend at the rate of 7.1% per annum. In case of
insufficiency of profits /no profits, the dividend on preference shares shall
not be declared and distributed in the respective year but the dividend
liability on the preference shares for that respective year shall be cumulated
and paid to the holders of the preference shares.
7.1% Cumulative redeemable non-convertible preference shares
shall be entitled to dividend at the rate of 7.1% per annum. In case of
insufficiency of profits /no profits, the dividend on preference shares shall
not be declared and distributed in the respective year but the dividend
liability on the preference shares for that respective year shall be cumulated
and paid to the holders of the preference shares.
Preference shares of all classes carry a preferential right
as to dividend over equity shareholders. Where dividend on cumulative
preference shares is not declared for a financial year, the entitlement thereto
is carried forward whereas in the case of non-cumulative preference shares, the
entitlement for that year lapses. The preference shares are entitled to one
vote per share at meetings of the Company on any resolutions of the Company
directly affecting their rights. In the event of liquidation, preference
shareholders have a preferential right over equity shareholders to be repaid to
the extent of capital paid-up and dividend in arrears on such shares.
Terms of redemption
of preference shares
Maturity period for redemption of 0.1% preference shares
amounting to Rs.25.000 Millions (previous year Rs.25.000 Millions) is ten years
from the date of allotment i.e. 25 March 2003, with an option to the Company of
an earlier redemption after 24 March 2005. The shares were due for redemption
on 24 March 2013. The Company sought extension for redemption of such shares,
pursuant to the provisions of Section 106 of the Companies Act, 1956 by five
years i.e. 24 March 2018. The preference shareholders have agreed to this
extension. The Company is in the process of complying with the provisions of
the Companies Act, 1956 in relation to the same and has also sought approval
from the Reserve Bank of India vide its letter dated 7 March 2013.
Maturity period for redemption of 7.1% preference shares
amounting to Rs.157.000 Millions (previous year Rs.157.000 Millions) is ten
years from the date of allotment i.e. 27 March 2004, with an option to the
Company of an earlier redemption after 27 March 2006.
Maturity period for redemption of 7.1% preference shares
amounting to Rs.229.000 Millions (previous year Rs.229.000 Millions) is ten
years from the date of allotment i.e. 21 March 2006, with an option to the
Company of an earlier redemption after 21 March 2008.
Shares held by holding / ultimate
holding company and /or their subsidiaries/associates
|
Name of
Shareholder |
Number
of Shares |
Rs. In Millions |
% holding |
|
Equity
shares of Re. 1 each fully paid up held by |
|
|
|
|
Timex Group Luxury Watches B.V., the holding Company* |
75600000 |
75.600 |
74.93% |
|
Total
|
75600000 |
75.600 |
74.93% |
|
|
|
|
|
|
Preference shares |
|
|
|
|
Timex Group Luxury Watches B.V., the holding Company |
|
|
|
|
0.1% non-cumulative redeemable non-convertible preference
shares |
2500000 |
25.000 |
100.00% |
|
7.1% cumulative redeemable non-convertible preference
shares |
15700000 |
157.000 |
100.00% |
|
7.1% cumulative redeemable non-convertible preference
shares |
22900000 |
229.000 |
100.00% |
|
Total |
41100000 |
411.000 |
300.00% |
* There is no other shareholder holding
more than 5% shares in the company.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
512.000 |
512.000 |
512.000 |
|
(b) Reserves & Surplus |
(537.100) |
(207.300) |
212.300 |
|
(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) |
(25.100) |
304.700 |
724.300 |
|
|
|
|
|
|
(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 |
25.800 |
29.800 |
27.500 |
|
Total Non-current Liabilities (3) |
25.800 |
29.800 |
27.500 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
171.000 |
102.700 |
86.500 |
|
(b) Trade payables |
723.600 |
652.000 |
599.000 |
|
(c) Other current
liabilities |
220.300 |
189.000 |
181.000 |
|
(d) Short-term provisions |
90.500 |
48.200 |
67.400 |
|
Total Current Liabilities (4) |
1,205.400 |
991.900 |
933.900 |
|
|
|
|
|
|
TOTAL |
1,206.100 |
1,326.400 |
1,685.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
134.100 |
148.200 |
141.900 |
|
(ii) Intangible Assets |
0.000 |
1.200 |
1.700 |
|
(iii) Capital
work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
45.100 |
35.200 |
39.200 |
|
(e) Other Non-current assets |
11.700 |
17.900 |
32.600 |
|
Total Non-Current Assets |
190.900 |
202.500 |
215.400 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
244.100 |
370.200 |
413.100 |
|
(c) Trade receivables |
688.900 |
660.400 |
992.800 |
|
(d) Cash and cash
equivalents |
52.300 |
56.100 |
32.600 |
|
(e) Short-term loans and
advances |
28.400 |
34.200 |
31.800 |
|
(f) Other current assets |
1.500 |
3.000 |
0.000 |
|
Total Current Assets |
1,015.200 |
1,123.900 |
1,470.300 |
|
|
|
|
|
|
TOTAL |
1,206.100 |
1,326.400 |
1,685.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
1,235.600 |
1,211.200 |
1,829.800 |
|
|
|
Other Operating Income |
0.200 |
3.200 |
5.300 |
|
|
|
Other Income |
0.900 |
2.400 |
4.000 |
|
|
|
TOTAL (A) |
1,236.700 |
1,216.800 |
1,839.100 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
642.600 |
719.100 |
989.600 |
|
|
|
Purchases of Stock-in-Trade |
21.600 |
25.500 |
47.100 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
81.700 |
35.300 |
(61.900) |
|
|
|
Employees benefits expense |
210.200 |
215.200 |
188.700 |
|
|
|
Advertising, Marketing and brand building expenses |
201.300 |
0.000 |
0.000 |
|
|
|
Other expenses |
374.000 |
609.200 |
584.500 |
|
|
|
TOTAL (B) |
1,531.400 |
1,604.300 |
1,748.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(294.700) |
(387.500) |
91.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
11.700 |
9.800 |
10.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(306.400) |
(397.300) |
80.200 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
23.400 |
22.300 |
19.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(329.800) |
(419.600) |
60.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
15.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(329.800) |
(419.600) |
45.300 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
NA |
103.800 |
56.400 |
|
|
|
Service Income |
NA |
22.700 |
17.700 |
|
|
TOTAL EARNINGS |
NA |
126.500 |
74.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
283.300 |
427.400 |
|
|
|
Watches |
NA |
54.900 |
114.300 |
|
|
TOTAL IMPORTS |
NA |
338.200 |
541.700 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.35) |
(4.47) |
0.13 |
|
Notes:
1)
The figures for the quarter ended 31 March 2014 and
31 March 2013 are the balancing figures between audited figures in respect of the
full financial year and the published year-to-date figures upto the period
ended 31 December 2013 and 31 December 2012 respectively. The figures upto the
end of 31 December 2013 and 31 December 2012 were only reviewed and not subject
to audit.
2)
The statutory auditors have carried out audit of
the financial results for the quarter and year ended 31 March 2014 and a
modified opinion has been issued in respect of managerial remuneration (refer
note 3 below).
3)
Managerial remuneration of Rs.0.746 Million paid by
the Company during the year ended 31 March 2012 was in excecss of amount
approved by the Central Government. The Company’s application for approval of
such excess remuneration was rejected by Central Government vide its letter
dated 26 July 2012. The Company had requested the Central Government to
re-consider the same and an application had been made in this regard by the
Company vide its letter dated 30 August 2012. The Company has received a
direction to recover the excess remuneration paid till date and is in the
process of filing an application with the Central Government for waiver of such
excess remuneration paid, since the concerned managerial person has resigned
w.e.f 31 January 2013.
4)
The accumulated losses of the Company as at 31
March 2014 are Rs.572.200 Millions, which have resulted in complete erosion of
the net worth of the Company. The Company has also incurred losses of
Rs.329.800 Millions for the year ended 31 March 2014 and as at that date, the
Company’s current liabilities are in excess
of its current assets by Rs.190.200 Millions. The Company expects growth in its
operations in coming years and is taking measures to improve its operational
efficiency. However, the company expects to incur losses during the year
2014-15. As per the business plans approved by the board of directors, the
funding requirements of the company will be met through funds from operations
and bank borrowings, which have been guaranteed by Timex Group Luxury Watches
B.V., the holding company. The holding company has also deferred the redemption
of preference share capital from 26 March 2014 to 26 March 2019. In view of the
above, the use of going concern assumption has been considered appropriate in
preparation of financial statements of the Company.
5)
There was an exchange gain of Rs.16.400 Millions
during the quarter ended 31 March 2014 as against Rs.7.400 Millions during the
quarter ended 31 December 2013 and exchange loss of Rs.0.400 Million during the
quarter ended 31 March 2013.
6)
The above results have been reviewed by the Audit
Committee and adopted by the Board of Directors at its meeting held on 29 May
2014.
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
(26.67) |
(34.48) |
2.46 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(26.69) |
(34.64) |
3.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(27.34) |
(31.63) |
3.59 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
13.14 |
(1.38) |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(6.81) |
0.34 |
0.12 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.84 |
1.13 |
1.57 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Share Capital |
512.000 |
512.000 |
512.000 |
|
Reserves & Surplus |
212.300 |
(207.300) |
(537.100) |
|
Net
worth |
724.300 |
304.700 |
(25.100) |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
86.500 |
102.700 |
171.000 |
|
Total
borrowings |
86.500 |
102.700 |
171.000 |
|
Debt/Equity
ratio |
0.119 |
0.337 |
(6.813) |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales |
1,829.800 |
1,211.200 |
1,235.600 |
|
|
|
(33.807) |
2.015 |
NET PROFIT MARGIN
|
Net Profit
Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
1,829.800 |
1,211.200 |
1,235.600 |
|
Profit |
45.300 |
(419.600) |
(329.800) |
|
|
2.48% |
(34.64%) |
)(26.69% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
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) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
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 |
No |
COMPANY OVERVIEW
The company, a
subsidiary of Timex Group Luxury Watches B.V., is a limited liability company incorporated
on 4 October 1988 under the provisions of the Companies Act, 1956. The Company
is listed on Bombay Stock Exchange in India.
The Company is
engaged in the business of manufacturing and trading of watches and rendering
of related after sales service. The Company’s manufacturing facilities are
located at Baddi, Himachal Pradesh. The Company also provides information and
technology support services to group companies.
NO CHARGES EXIST FOR THE COMPANY
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service, Interpol,
etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.19 |
|
UK Pound |
1 |
Rs.103.14 |
|
Euro |
1 |
Rs.81.66 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
VNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
1 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
|
|
|
|
TOTAL |
|
16 |
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.