MIRA
INFORM REPORT
|
Report Date : |
14.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
ITC LIMITED (w.e.f.1974) |
|
|
|
|
Formerly Known
As : |
Imperial Tobacco
Company of India Limited |
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|
|
|
Registered
Office : |
Virginia House,
37, |
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|
Country : |
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Financials (as
on) : |
31.03.2013 |
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|
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|
Date of
Incorporation : |
24.08.1910 |
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|
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|
Com. Reg. No.: |
21-001985 |
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Capital
Investment / Paid-up Capital : |
Rs.7901.800
Millions |
|
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|
CIN No.: [Company Identification
No.] |
L16005WB1910PLC001985 |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
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|
No. of Employees
: |
5000 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (81) |
|
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 891500000 |
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|
|
|
Status : |
Excellent |
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|
Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
ITC is a Diversified Group. It is a well-established and a reputed company having excellent 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. Payment are
reported to be regular and as per commitments. 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 – 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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Commercial paper programme: A1+ |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
September 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 – COOPERATIVE (91-33-22886426)
LOCATIONS
|
Registered Office : |
Virginia House,
37, Jawaharlal Nehru Road, Kolkata – 700071, West Bengal, India |
|
Tel. No.: |
91-33-22886426/
22880034/ 22889371 |
|
Fax No.: |
91-33-22882358 |
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E-Mail : |
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Website : |
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Hotel : |
Oberio Flight Services, |
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|
Headquarters : |
84 (Old No.90) Chamiers Road, Chennai - 600018, Tamilnadu, India |
|
Tel. No.: |
91-44-42081508 |
|
Fax No.: |
91-44-24340294 |
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|
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Factory 1: |
Integrated Industrial Estate, Sidcuil, Plot No. 1, Sector 11, Hardwar
– 249403, Uttarkhand, India |
|
Tel. No.: |
91-1334-322483 |
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Fax No.: |
91-1334-235383 |
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Factory 2: |
P O Box 2277, Thiruvottur, Chennai – 600019, Tamilnadu, India |
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Tel. No.: |
91-44-25733121 |
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Fax No.: |
91-44-25733852 |
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Factory 3: |
Plot No. B 27, MIDC Ranjangaon, Pune - 412222, Maharashtra, India |
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Factory 4: |
Peenya Industrial Area, 1st Phase, Bangalore-560058, Karnataka, India |
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Head Office : |
ITC Hotel
Kakatiya Sheraton and Totheyrs, 63-3-1187, Begumpet, Hyderabad -500016,
Andhra Pradesh, India |
|
Tel. No.: |
91-40-23400132 |
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Fax No.: |
91-40-23401045 |
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Corporate Office : |
Kakatiya Sheraton
and Totheyrs, Begumpet, |
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Branch Office : |
International Sales No. 106, |
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Tel. No.: |
91-40-27843768 |
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Fax No.: |
91-40-27810034 |
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|
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Plants : |
Cigarette Factories v
Kolkata v
93/1, Karl Marx Sarani, P. B.
No. 17203, Kolkata - 700 043, West Munger v
Basdeopur P. O., District
Munger - 811 202, v
Sardar Patel Marg, P. O. Box
No. 25, Ranjangaon v 4. Plot No.
B-27, MIDC Ranjangaon, Taluka Shirur District Pune 412 220, Green Leaf
Threshing Plants Anaparti v
East Godavari District,
Anaparti - 533 342, Chirala v
Prakasam,
P. B. No. 1, Chirala - 523 157, Nanjangud 3. Immavu and
Adakanahalli Village Nanjangud Taluk Mysore - 571 302, Karnataka, India Packaging and
Printing Plants Chennai v
Post Box No. 2277, Tiruvottiyur, Chennai - 600 019, Tel No.: 91-44-25733121/25733171/25733181 Fax No.: 91-44-25733852 Haridwar v
Plot No. 1, Sector 11,
Integrated Industrial Estate, Haridwar – 249403, Munger v
Basdeopur P. O., District
Munger, Munger - 811 202, Tel No.: 91-6344-220505/16/17 / 2201892/222126/142/146 Fax No.: 91-6344-222443/222839 Paper and
Paperboard Mills Bollaram v
Anrich Industrial Estate,
Village Bollarum, Medak District, Andhra Pradesh – 502 325 Sarapaka v
Sarapaka, Khammam District -
507 128, Thekkampatty v
Tribeni v
P O Chandrahati, District
Hooghly – 712 504, West Cast Coating Plant Anrich Industrial
Estate, Village Bollarum, Medak District - 502 325, Lifestyle Retailing Design and Technology Centre v
86, Industrial Estate, Phase
I, Udhyog Nagar, Gurgaon - 122 016, FOODS FACTORIES Haridwar 1. Plot No. 1,
Sector 11 Integrated Industrial Estate Haridwar - 249 403 Uttarakhand, Inda Ranjangaon 2. Plot No. D-1,
MIDC Ranjangaon Taluka Shirur District Pune – 412 220, PERSONAL CARE
PRODUCTS FACTORIES Haridwar 1. Plot No. 1,
Sector 11, Integrated Industrial Estate, Haridwar -249 403, Manpura 2. Village
Manpura, Tehsil Baddi, District Solan - 174 101, HOTELS Owned Hotels 1. ITC Mughal*
Taj Ganj Agra - 282 001, Bengaluru 2. ITC Gardenia*
1, Residency Road, Bengaluru-560 025, 3. ITC Chennai 4. My Fortune,
Chennai, Jaipur 5. ITC
Rajputana* Kolkata 6. ITC Sonar*,
1, Mumbai 7. ITC Maratha*,
Sahar, Mumbai - 400 099, 8. ITC Grand
Central*, 287, 9. ITC Maurya*,
Sardar Patel Marg, Diplomatic Enclave, 10. Sheraton New
Delhi Hotel, District Centre, Saket, Licenced Hotels 11.
WelcomHeritage, Umed Port Blair 12. Vadodara 13. WelcomHotel
Vadodara, Hotels Under
Operating Services 14. WelcomHotel
Rama International, R-3, Chikalthana, Chennai 15. Sheraton
Park Hotel & Towers, 132, 16. ITC
Kakatiya*, 6-3-1187, Begumpet, 17. CHOUPAL SAAGARS
- RURAL SERVICES CENTRES Located At: v
Amravati v
Badaun v
Bahraich v
Chandouli v
Chindwara v
Dewas v
Dhar v
Gonda v
Hardoi v
Hathras v
Itarsi v
Jagdishpur v
Mandsaur v
Mhow v
Nagda v
Parbhani v
Pilibhit v
Ratlam v
Sehore v
v
Vidisha v
Wardha v
Washim LIFESTYLE RETAILING Design and Technology Centre v
Gurgaon Wills Lifestyle Stores Located At: v
v
Ahmedabad v
v
v Bengaluru v
v
Bhubaneshwar v
v
v
Dehradun v
Ernakulam v
v
Gurgaon v
Gurgaon v
v
v
Jalandhar v
Jaipur v
v
v
Kolkata v
v
v
Mumbai / Thane v
v
Nashik v
v
Noida v
Panjim v
v
Pune v
v
v
Siliguri v
v
Vadodara v
v John Players Stores* v
Bengaluru v
Chennai v
v
Kolkata v
Mumbai / Thane |
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Division
Headquarters : |
Chief Executive Mr. S. Sivakumar Head of Finance Mr. C V Sarma Vice President - HRD Chief Information Officer Chief Manager - Processed Fruits Vice President - Operations Trader - Edible Nuts and Spices Chief Trader - Coffee and Spices Chief Manager - Aqua Mr. S. Biswas |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Yogesh
Chander Deveshwar |
|
Designation : |
Chairman |
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|
Name : |
Mr. Nakul Anand |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Pradeep Vasant Dhobale |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Kurush Noshir Grant |
|
Designation : |
Executive Director |
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|
Name : |
Mr. Anil Baijal |
|
Designation : |
Non Executive Director |
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|
Name : |
Mr. Shilabhadra Banerjee |
|
Designation : |
Non Executive Director |
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|
Name : |
Mr. |
|
Designation : |
Non Executive Director |
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|
Name : |
Mr. Serajul Haq Khan |
|
Designation : |
Non Executive Director |
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|
Name : |
Mr. Dinesh Kumar Mehrotra |
|
Designation : |
Non-Executive Directors |
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|
Name : |
Mr. Sunil Behari Mathur |
|
Designation : |
Non-Executive Directors |
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|
Name : |
Mr. Hugo Geoffrey Powell |
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Designation : |
Non Executive Director |
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|
|
Name : |
Mr. Pillappakkam
Bahukutumbi Ramanujam |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Basudeb Sen |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Balakrishnan
Vijayaraghavan |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Anthony Ruys |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Krishnamoorthy Vaidyanath |
|
Designation : |
Non-Executive Director |
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|
Name : |
Sahibzada Syed Bahib-Ur-Rehman |
|
Designation : |
Non-Executive Director |
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|
|
|
Name : |
Meera Shankar |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Biswa Behari
Chatterjee |
|
Designation : |
Executive Vice
President and Company Secretary |
|
|
|
|
Name : |
Mr. Rajiv Tandon |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
Kannadiputhur Sundararaman Suresh |
|
Designation : |
General Counsel |
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|
Audit Committee : |
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Compensation
Committee : |
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Nominations
Committee : |
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Investor Services
Committee : |
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Sustainability
Committee : |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1055609040 |
13.31 |
|
|
4159199 |
0.05 |
|
|
1697955255 |
21.41 |
|
|
1532106319 |
19.31 |
|
|
4289829813 |
54.08 |
|
|
|
|
|
|
354095975 |
4.46 |
|
|
|
|
|
|
674132691 |
8.50 |
|
|
135966385 |
1.71 |
|
|
609 |
0.00 |
|
|
2478375857 |
31.24 |
|
|
2413509216 |
30.43 |
|
|
529023 |
0.01 |
|
|
9680168 |
0.12 |
|
|
12755719 |
0.16 |
|
|
41901731 |
0.53 |
|
|
3642571517 |
45.92 |
|
Total Public shareholding (B) |
7932401330 |
100.00 |
|
Total (A)+(B) |
7932401330 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
20781620 |
0.00 |
|
|
20781620 |
0.00 |
|
Total (A)+(B)+(C) |
7953182950 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cigarettes and Tobacco. It is also engaged in Hotel Business. |
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Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Class of Goods |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
|
|
|
|
|
|
Cigarettes |
Million |
123547 |
141754 |
69171 |
|
Smoking Tobaccos |
Tonne |
NA |
NA |
26 |
|
Printing and
Packaging including Flexible |
Tonne |
NA |
107852 |
72814 |
|
Un manufactured
Tobacco |
Tonne |
NA |
NA |
104624 |
|
Pulp |
Tonne |
NA |
235000 |
255511 |
|
Paperboards and
Paper |
Tonne |
NA |
452500 |
558884 |
|
Packaged Food
Products |
Tonne |
NA |
107724 |
46101 |
|
Personal Care
Products |
Tonne |
NA |
235962 |
36704 |
NOTE:
a) The “Registered/Licensed Capacity” (including as approved by “Letters of Intent”) is exclusive of additional capacities permissible under the policy of the Government of India.
b) Includes production meant for internal consumption.
c) Based on Capacity rated by equipment manufacturers / project consultants at the time of installation.
N.A. – Not Applicable
GENERAL INFORMATION
|
No. of Employees : |
5000 [Approximately] |
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Bankers : |
· State Bank of India, 38, Chowringhee Lane, Kolkata - 700071, Theyst Bengal, India · Standard Chartered Grindlays Bank Limited, 41, Chowringhee Lane, Kolkata - 700 071, West Bengal, India · United Bank of India, 10 Netaji Subhas Road, Kolkata - 700001, West Bengal, India ·
Citibank , Kolkata, West Bengal, India |
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Facilities : |
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
|
|
|
|
|
Associates/Subsidiaries : |
·
Srinivasa Resorts Limited ·
Fortune Park Hotels Limited ·
Bay Islands Hotels Limited ·
WelcomHotels Lanka (Private) Limited, Sri Lanka ·
Landbase India Limited ·
Russell Credit Limited and its subsidiary
Greenacre Holdings Limited ·
Technico Pty Limited, Australia and its
subsidiaries ·
Technico Agri Sciences Limited ·
Technico Technologies Inc., Canada ·
Technico Asia Holdings Pty Limited, Australia and
its subsidiary ·
Technico Horticultural (Kunming) Co. Limited,
China ·
Wimco Limited and its subsidiaries ·
Pavan Poplar Limited ·
Prag Agro Farm Limited ·
ITC Infotech India Limited and its subsidiaries ·
ITC Infotech Limited, UK ·
ITC Infotech (USA), Inc. and its subsidiary Pyxis
Solutions, LLC, USA ·
Wills Corporation Limited ·
Gold Flake Corporation Limited ·
ITC Investments and Holdings Limited ·
Surya Nepal Private Limited ·
King Maker Marketing, Inc., USA ·
BFIL Finance Limited and its subsidiary ·
MRR Trading and Investment Company Limited ·
The above list does not include ITC Global
Holdings Pte. Limited, Singapore (in liquidation) ·
Gujarat Hotels Limited ·
International Travel House Limited- being
associates of the Company, and ·
Tobacco Manufacturers (India) Limited, UK- of
which the Company is an associate. ·
Russell Investments Limited ·
Classic Infrastructure and Development Limited ·
Divya Management Limited ·
Antrang Finance Limited- being associates of
Russell Credit Limited, and ATC Limited- being associate of Gold Flake
Corporation Limited |
|
|
|
|
Joint Ventures : |
·
Maharaja Heritage Resorts Limited ·
Espirit Hotels Private Limited ·
Logix Developers Private Limited |
|
|
|
|
Joint Venture of the Company’s subsidiary : |
·
ITC Filtrona Limited - being joint venture of
Gold Flake Corporation Limited |
CAPITAL STRUCTURE
AS ON 26.07.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000000 |
Equity Shares |
Re. 1/- each |
Rs.10000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7953182950 |
Equity Shares |
Re. 1/- each |
Rs.7953.183
Millions |
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000000 |
Equity Shares |
Re. 1/- each |
Rs.10000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7901833110 |
Equity Shares |
Re. 1/- each |
Rs.7901.800
Millions |
NOTES:
SHAREHOLDERS HOLDING MORE THAN 5% OF THE ORDINARY SHARES IN THE COMPANY
|
PARTICULAR |
AS ON 31.03.2013 |
|
|
|
NO. OF SHARES |
% |
|
Tobacco Manufacturers (India) Limited |
1985564880 |
25.13 |
|
Life Insurance Corporation of India |
961842593 |
12.17 |
|
Specified
Undertaking of the Unit Trust of India |
896724540 |
11.35 |
ORDINARY SHARES ALLOTTED AS FULLY PAID UP BONUS SHARES FOR THE PERIOD OF
FIVE YEARS IMMEDIATELY PRECEDING 31ST MARCH
|
PARTICULAR |
AS ON 31.03.2013 |
|
|
NO. OF SHARES |
|
Bonus Shares issued in 2010-11 |
3826701530 |
RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO THE ORDINARY SHARES
The Ordinary
Shares of the Company, having par value of Re. 1.00 per share, rank pari passu
in all respects including voting rights and entitlement to dividend.
TERMS AND
CONDITIONS OF OPTIONS GRANTED
Each Option
entitles the holder thereof to apply for and be allotted ten Ordinary Shares of
the Company of Re. 1.00 each upon payment of the exercise price during the
exercise period. The exercise period commences from the date of vesting of the
Options and expires at the end of five years from (i) the date of grant in
respect of Options granted under the ITC Employee Stock Option Scheme
(introduced in 2001) and (ii) the date of vesting in respect of Options granted
under the ITC Employee Stock Option Scheme -2006 & the ITC Employee Stock
Option Scheme -2010.
THE
VESTING PERIOD FOR CONVERSION OF OPTIONS IS AS FOLLOWS:
|
On completion of 12 months from the date of grant of the Options: |
30% Vests |
|
On completion of 24 months from the date of grant of the Options: |
30% Vests |
|
On completion of 36 months from the date of grant of the Options: |
40% Vests |
|
The Options have
been granted at the ‘market price’ as defined from time to time under the
Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme)
Guidelines, 1999. |
|
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 |
7901.800 |
7818.400 |
7738.100 |
|
(b) Reserves & Surplus |
214976.700 |
180100.500 |
151794.600 |
|
(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) |
222878.500 |
187918.900 |
159532.700 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
664.000 |
773.200 |
865.800 |
|
(b) Deferred tax liabilities (Net) |
12037.200 |
8727.200 |
8018.500 |
|
(c) Other long term liabilities |
31.100 |
129.400 |
208.200 |
|
(d) long-term provisions |
1256.200 |
1071.200 |
938.200 |
|
Total Non-current Liabilities (3) |
13988.500 |
10701.000 |
10030.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
0.000 |
17.700 |
19.400 |
|
(b) Trade payables |
16689.800 |
14492.200 |
13953.100 |
|
(c) Other current
liabilities |
35286.200 |
33712.700 |
30677.700 |
|
(d) Short-term provisions |
51331.300 |
43039.500 |
40124.600 |
|
Total Current Liabilities (4) |
103307.300 |
91262.100 |
84774.800 |
|
|
|
|
|
|
TOTAL |
340174.300 |
289882.000 |
254338.200 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
111185.500 |
89836.600 |
82072.300 |
|
(ii) Intangible Assets |
907.900 |
1155.300 |
1378.800 |
|
(iii) Capital
work-in-progress |
14728.000 |
22692.600 |
13226.000 |
|
(iv) Intangible assets under development |
149.900 |
74.900 |
108.000 |
|
(b) Non-current Investments |
20008.600 |
19532.800 |
15633.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
17279.700 |
11959.300 |
11464.700 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
164259.600 |
145251.500 |
123882.800 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
50594.300 |
43633.100 |
39913.200 |
|
(b) Inventories |
66002.000 |
56378.300 |
52691.700 |
|
(c) Trade receivables |
11633.400 |
9823.700 |
8851.000 |
|
(d) Cash and cash
equivalents |
36150.000 |
28189.300 |
22432.400 |
|
(e) Short-term loans
and advances |
5121.400 |
5194.300 |
5634.500 |
|
(f) Other current
assets |
6413.600 |
1411.800 |
932.600 |
|
Total Current Assets |
175914.700 |
144630.500 |
130455.400 |
|
|
|
|
|
|
TOTAL |
340174.300 |
289882.000 |
254338.200 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
299012.700 |
251474.600 |
214589.800 |
|
|
|
Other Income |
9387.000 |
8253.400 |
5798.200 |
|
|
|
TOTAL (A) |
308399.700 |
259728.000 |
220388.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
89362.100 |
76598.100 |
69715.600 |
|
|
|
Purchases of Stock-in-Trade |
33759.200 |
20372.100 |
14597.200 |
|
|
|
Employee benefits expense |
13870.100 |
12576.200 |
11400.200 |
|
|
|
Other expenses |
58209.700 |
54097.900 |
47455.200 |
|
|
|
Changes in inventories
of finished goods, work-in-progress, Stock-in-Trade and Intermediates |
(2463.500) |
(655.900) |
(2705.500) |
|
|
|
TOTAL (B) |
192737.600 |
162988.40 |
140462.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
115662.100 |
96739.600 |
79925.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
864.700 |
779.200 |
683.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
114797.400 |
95960.400 |
79241.500 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7955.600 |
6985.100 |
6559.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
106841.800 |
88975.300 |
72681.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
32657.900 |
27351.600 |
22805.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
74183.900 |
61623.700 |
49876.100 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
19725.900 |
5486.700 |
613.100 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
7500.000 |
6500.000 |
4987.600 |
|
|
|
Proposed Dividend For The Financial Year |
41484.600 |
35182.900 |
21666.800 |
|
|
|
Special Dividend |
0.000 |
0.000 |
12767.900 |
|
|
|
Income Tax on Proposed Dividends Current Year |
7050.300 |
5707.500 |
5586.200 |
|
|
|
Income Tax on Proposed Dividends Earlier Year’s Provision |
(6.100) |
(5.900) |
(6.000) |
|
|
BALANCE CARRIED
TO THE B/S |
37881.000 |
19725.900 |
5486.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods (F.O.B.) |
32053.200 |
20999.900 |
22088.500 |
|
|
|
Hotel Earnings |
5495.100 |
4867.200 |
4857.200 |
|
|
|
Freight and Insurance Recoveries |
259.200 |
277.500 |
288.300 |
|
|
|
Interest |
143.000 |
0.000 |
0.000 |
|
|
|
Dividend |
55.700 |
0.000 |
0.000 |
|
|
|
Other Earnings* [* Consist of finance and storage charges, Certified Emission
Reduction (CER) credits and sundry recoveries.] |
67.800 |
62.100 |
88.000 |
|
|
TOTAL EARNINGS |
38074.000 |
26206.700 |
27322.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
11211.000 |
9251.600 |
8449.000 |
|
|
|
Components and Spare Parts (Including Stores) |
817.000 |
877.100 |
771.200 |
|
|
|
Capital Goods |
6206.200 |
7058.800 |
2259.400 |
|
|
|
Others |
226.600 |
270.300 |
169.600 |
|
|
TOTAL IMPORTS |
18460.800 |
17457.800 |
11649.200 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
9.45 |
7.93 |
6.49 |
|
|
|
- Diluted |
9.33 |
7.84 |
6.41 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
24.05
|
23.73
|
22.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
35.73
|
35.38
|
33.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
35.00
|
35.94
|
32.25 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.48
|
0.47
|
0.45 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00
|
0.00 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.70
|
1.19 |
1.01 |
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 |
7738.100 |
7818.400 |
7901.800 |
|
Reserves & Surplus |
151794.600 |
180100.500 |
214976.700 |
|
Net
worth |
159532.700 |
187918.900 |
222878.500 |
|
|
|
|
|
|
long-term borrowings |
865.800 |
773.200 |
664.000 |
|
Short term borrowings |
19.400 |
17.700 |
0.000 |
|
Total
borrowings |
885.200 |
790.900 |
664.000 |
|
Debt/Equity
ratio |
0.006 |
0.004 |
0.003 |
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 |
214589.800 |
251474.600 |
299012.700 |
|
|
|
17.189 |
18.904 |
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 |
214589.800 |
251474.600 |
299012.700 |
|
Profit |
49876.100 |
61623.700 |
74183.900 |
|
|
23.24% |
24.50% |
24.81% |
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 |
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] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION DETAILS
CALCUTTA HIGH COURT
CASE STATUS INFORMATION SYSTEM
CASE STATUS : PENDING
|
Status of CIVIL SUITS (CS) 155 of 2014 CHANCHALA PRATAP BURMAN & ANR. Vs. ITC LIMITED Pet's Adv. : KANAKENDU CHATTERJEE Res's Adv. : Court No. : 42 Last Listed On : No Date Mentioned Category : CONTRACTUAL OBLIGATIONS
Case Updated on: Monday, April 28, 2014 |
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90048469 |
18/06/2001 * |
1,400,000,000.00 |
ITC LIMITED |
VIRGINIA HOUSE,
37;CHOWRIGHEE, KOLKATA - 700071, WEST BENGAL, INDIA |
- |
|
2 |
90249950 |
16/12/1992 |
100,000,000.00 |
INDUSTRIAL
FINANCE CORPORATION OF INDIA |
BANK OF BARODA
BUILDING, 16; SANSAD MARG, NEW DELHI -
110001, INDIA |
- |
|
3 |
90249944 |
14/10/1992 |
1,150,000,000.00 |
STATE BANK OF
INDIA |
CHOWRINGHEE BRANCH,
38; CHOWRINGHEE ROAD, KOLKATA- 700071 , WEST BENGAL, INDIA |
- |
|
4 |
90249931 |
14/05/1992 |
8,600,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORPORATION OF |
163; BACKBAY
RECLAMATION, BOMBAY - 400020, Maharashtra, INDIA |
- |
|
5 |
90251696 |
03/12/1998 * |
7,000,000,000.00 |
STATE BANK OF
INDIA |
34; JAWAHARLAL
NEHRU ROAD, KOLKATA - |
- |
|
6 |
90249861 |
26/03/1990 |
11,500,000.00 |
INDUSTRIAL
FINANCE CORPORATION OF INDIA |
2; FAIRLIE PLACE,
KOLKATA - 700001, WEST BENGAL, INDIA |
- |
|
7 |
90249828 |
16/04/1998 * |
7,000,000,000.00 |
STATE BANK OF
INDIA |
38; CHOWRINGHEE,
KOLKATA - 700071, WEST BENGAL, INDIA |
- |
|
8 |
90251676 |
15/07/2010 * |
6,000,000,000.00 |
STATE BANK OF
INDIA |
RELIANCE HOUSE,
34 J. L. NEHRU ROAD, KOLKATA - 700071, WEST BENGAL, INDIA |
A93676666 |
|
9 |
90249593 |
20/10/1981 |
1,750,000.00 |
TATA BURROUGHS
LIMITED |
MANISH
COMMERCIAL CONTRE, 216;-A; DR. ANNIE DESAN |
- |
|
10 |
90250976 |
18/04/1980 |
2,700,000.00 |
STATE BANK OF
INDIA |
JEEVAN DEEP.
1-MIDDLETON STREET, KOLKATA - 700071, WEST BENGAL, INDIA |
- |
|
* Date of charge modification |
||||||
UNSECURED LOAN
|
PARTICULARS |
As
on 31.03.2013 [Rs.
in Millions] |
As
on 31.03.2012 [Rs.
in Millions] |
|||||||||||||||||||||||||||||||||||||||||||||
|
Long Term
Borrowings |
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
Term Loan From Banks |
0.200 |
1.200 |
|||||||||||||||||||||||||||||||||||||||||||||
|
Deferred Payment Liabilities Sales Tax Deferment Loans |
663.800 |
772.000 |
|||||||||||||||||||||||||||||||||||||||||||||
|
TOTAL
|
664.000 |
773.200 |
|||||||||||||||||||||||||||||||||||||||||||||
|
Note: Term loans from Banks Repayable in
equated periodic instalments upto a 5 year period from the date of respective
loan. These are repayable by 2014-15 and carry an interest of 11.25% p.a. Sales tax deferment loans Repayable after
a period of 10 to 14 years from the end of the month of respective loans.
These are repayable by 2025-26 and are interest free. The scheduled
maturity of the Long-term borrowings are summarised as under:
|
|||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS:
FAST MOVING CONSUMER GOODS:
FMCG – CIGARETTES:
Discriminatory and
punitive taxation coupled with a growing incidence of smuggling and illegal
manufacture are the biggest challenges confronted by the domestic cigarette
industry. These challenges were further compounded during the year by the steep
increase of 22% in cigarette Excise Duty rates announced in the Union Budget
2012 and the arbitrary increases in Value Added Tax (VAT) on cigarettes by some
States. Such increases not only undermine the legal domestic cigarette industry
and sub-optimize revenue potential from this sector but also fail to achieve
the objective of tobacco control in the country.
The pattern of
tobacco consumption in India is unique and is dominated by non-cigarette
products which are not only cheaper but also revenue inefficient. With over 17%
of the world population, India has a miniscule share of only 1.8% of global
cigarette consumption but accounts for about 90% of the global consumption of
smokeless tobacco. According to the Global Adult Tobacco Survey, 2010 conducted
by Ministry of Health and Family Welfare, Government of India, while 34.6% of
all adults in India use tobacco in some form, only 5.7% of the adult
population consume
cigarettes. It is also pertinent to note that while cigarettes account for less
than 15% of the overall tobacco consumption (by weight) in the country, they
contribute about 75% of the total tax revenue from the tobacco sector accruing
to the exchequer. In contrast, other forms of tobacco are lightly taxed in
India, and in some cases are even tax exempt, leading to a high degree of
potential tax loss.
According to
various independent reports, there is a high degree of dual consumption with an
estimated 60% of cigarette consumers in India also consuming other forms of
tobacco. The high incidence of taxation on cigarettes coupled with a large
differential in Excise Duty rates between cigarettes and other tobacco products
has rendered the demand for cigarettes highly price elastic and are driving
consumers to shift to cheaper and revenue-inefficient forms of tobacco leading
to sub-optimal revenue collections. The fact that cigarette consumption is
price elastic, while consumption of tobacco per se is not, is borne out by the
fact that the total tobacco consumption in the country increased from 406
million kg in 1981-82 to 475 million kg in 2010-11 even as the tobacco
consumption in the form of cigarettes declined from 86 million kg to 72 million
kg during the same period. Thus, while overall tobacco consumption is
increasing in India, the share of cigarettes in overall tobacco consumption has
declined from 21% to 15%.
In fact, India’s
annual per capita consumption of cigarettes is amongst the lowest in the world.
The requirement therefore is an India-centric tax and policy framework for
tobacco that cognises for the unique consumption pattern in the country.
FMCG – OTHERS:
The size of the
Indian FMCG industry is estimated at around Rs. 2500000.000 Millions
representing nearly 2.5% of the country’s GDP. The industry has tripled in size
over the last 10 years and has grown at approximately 17% CAGR in the last 5
years driven by rising income levels, increasing urbanization, strong rural
demand and favourable demographic trends. These growth drivers, coupled with
the low levels of penetration and per capita usage in India, are expected to
result in robust industry growth in excess of 15% per annum over the
medium-term.
The Company
continues to rapidly scale up its new FMCG businesses leveraging its
institutional strengths viz. deep consumer insight, proven brand building capability,
a deep and wide distribution network, strong rural and agri-sourcing linkages,
paper and packaging expertise and cuisine knowledge. The new FMCG businesses
comprising Branded Packaged Foods, Personal Care Products, Education and
Stationery Products, Lifestyle Retailing, Incense Sticks (Agarbattis) and
Safety Matches have grown at an impressive pace over the past several years,
crossing Rs. 70000.000 Millions mark during the year. The Company’s new FMCG
businesses have been rated to be the fastest growing among top consumer goods
companies operating in India as per a recent Nielsen report.
Within a
relatively short span of time, the Company has established several vibrant
consumer brands such as ‘Aashirvaad’, ‘Sunfeast’, ‘Bingo!’, ‘Yippee!’, ‘Candyman’,
‘mint-o’, ‘Kitchens of India’ in the Branded Packaged Foods space; ‘Essenza Di
Wills’, ‘Fiama Di Wills’, ‘Vivel’ and ‘Superia’ in the Personal Care products
segment; ‘Classmate’ and ‘Paperkraft’ in Education and Stationery products
market; ‘Wills Lifestyle’ and ‘John Players’ in the Lifestyle Retailing
business; ‘Mangaldeep’ in Agarbattis, ‘Aim’ in Matches and so on. In terms of
annualized consumer spend, Aashirvaad and Sunfeast are today over Rs. 20000.000
Millions each, Classmate at around Rs. 10000.000 Millions while Bingo!,
Candyman and Vivel are more than Rs. 5000.000 Millions each. These world-class
Indian brands, which continue to gain increasing consumer franchise, support
the competitiveness of domestic value chains of which they are a part and
create and retain value within the country. The year saw a 26.5% growth in
Segment Revenues and a significant improvement in profitability as reflected by
the positive swing of Rs.1140.000 Millions at the PBIT level. Segment Results
reflect the gestation costs of these businesses largely comprising costs
associated with brand building, product development, R and D and infrastructure
creation.
The Company’s
relentless focus on quality, innovation and differentiation backed by deep
consumer insights, world-class R and D and an efficient and responsive supply
chain will further strengthen its leadership position in the Indian FMCG
industry.
BRANDED PACKAGED FOODS BUSINESSES:
The Company’s
Branded Packaged Foods businesses continued on a high growth trajectory
recording impressive growth in market shares and enhanced market standing
across segments. The businesses accelerated investments in distributed
capacities and capabilities to meet anticipated growth and develop a
differentiated and distinctive range of products. Significant investments in R
and D and product development coupled with deep consumer insight have enabled
launch of successful innovative products catering to the varied regional tastes
and preferences of consumers across the country. The Company’s products
continue to be ‘best-in-class’ in terms of product quality.
During the year,
the Branded Packaged Foods businesses had to contend with high levels of input
costs. Global demand-supply dynamics, policy uncertainties and adverse currency
movement led to steep hike in prices of key commodities such as wheat, maida,
edible oils, packaging material and industrial fuels particularly during the
first half of the year. These cost pressures were however mitigated through a
combination of improvements in product and process efficiencies, smart sourcing
and supply chain initiatives.
In the Bakery
and Confectionery Foods business, the Biscuits and Confectionery categories
gained significant scale and market standing during the year. ‘Sunfeast’ biscuits
sustained its robust growth trajectory, especially at the value-added and
premium end. Product range stood significantly augmented with the launch of
several ‘first-to-market’ variants including ‘Dark Fantasy Choco Fills –
Coffee’, ‘Dark Fantasy Choco Meltz’, ‘Butterscotch Zing’, ‘Kaju Badam Cookies’.
During the year, the brand emerged as the clear market leader in the highly
competitive premium cream biscuits segment. In the Confectionery category,
‘Candyman’ and ‘mint-o’ continued to register strong growth during the year.
The business launched ‘Creme Lacto’ and ‘mint-o Ultramintz’ – a sugar-free
extra-strong mint in select markets. These products have met with encouraging
consumer response.
In the Snack
Foods business, the Company continued to enhance market standing and expand
scale in the fast growing Savoury Snacks, Noodles and Pasta categories. In the
Savoury Snacks category, the market standing of the Company’s ‘Bingo!’ brand
has significantly improved, leveraging an innovative product range, enhanced
brand building efforts, use of digital media to spur word-of-mouth and
clutter-breaking advertising campaigns. The Company’s ‘new-to-market’ format of
Snacks, ‘Bingo! Tangles’, has been well received in target markets and is
gaining impressive consumer traction. In the Instant Noodles and Pasta
category, the Company’s brand ‘Sunfeast Yippee!’ has been well received by
consumers and is the second largest brand in the market. Focused market
research, deep consumer insights and innovative product formats under the
‘Sunfeast Yippee!’ brand are expected to further strengthen consumer franchise
in this fast growing and highly competitive category.
In the Staples,
Spices and Ready to Eat Foods business, the Company’s Staples and Ready to
Eat categories continued to grow rapidly. In the Staples category, ‘Aashirvaad’
atta consolidated its leadership position aided by the strong performance of
Aashirvaad ‘Multi-grain’ atta. The premium ‘Multi-grain’ and ‘Select’ variants
continued to grow rapidly with an increasing proportion of consumers shifting
to these value-added offerings. The Branded Packaged Foods businesses continue
to invest in manufacturing and distribution infrastructure to support larger
scale in view of the growing demand for their products and maximise the
benefits of distributed manufacture for efficient servicing of proximal
markets.
PERSONAL CARE PRODUCTS:
The Company’s
Personal Care Products business continued to gain consumer franchise during the
year aided by a slew of new product launches in the Personal Wash, Skin Care,
Face Wash and Deodorants categories. The business continues to leverage the
umbrella brands, namely, ‘Essenza Di Wills’, ‘Fiama Di Wills’, ‘Vivel’ and
‘Superia’ and is focused on addressing various consumer benefits with the
introduction of new variants.
The launch of the
‘Couture Spa’ range of soaps under the ‘Fiama Di Wills’ brand was one of the
key interventions during the year. The signature series, created in alliance
with fashion guru Wendell Rodricks, provides consumers
an invigorating
bathing experience. The business also launched a ‘Collector’s Edition’ soap
series in association with the Lonely Planet Magazine under the Fiama Di Wills
Men’s range. The six exciting Collector’s Edition packs are inspired by various
water sports and destinations renowned for rejuvenating and revitalizing
experiences, in line with the brand’s value proposition of ‘rejuvenation’. The
year also marked the Company’s foray into the high growth Deodorants market
with the launch of ‘Aqua Pulse Deodorant Spray’ under the ‘Fiama Di Wills Men’
franchise. The Skin Care range was also expanded during the year with the
launch of ‘Vivel Cell Renew’ Body Lotion, Hand Créme / Moisturizer and ‘Vivel
Perfect Glow’ Skin Toner in target markets. The new product launches have
received encouraging consumer response.
The business
continues to increasingly leverage ‘Laboratoire Naturel’ - the state-of-the-art
consumer and product interaction centre located in Bengaluru – to connect the R
and D and brand teams to the Indian consumer with a view to launching products
with unique and differentiated benefits. As in previous years, in recognition
of excellence in product quality and innovation, two of the Company’s products
- ‘Fiama Di Wills Men Aqua Pulse De-Stressing and Brightening Face Wash’, and
‘Vivel Cell Renew Fortify and Repair Moisturiser’ - were voted ‘Product of the
Year’ in their respective categories.
Innovative
consumer engagement continues to be at the centre of the Company’s personal
care strategy. Several new initiatives such as launch of the Couture Spa gel
bathing bar, and a unique consumer engagement programme - christened ‘The
Fabulous Hair Show’ - were undertaken during the year. The Company is at the
forefront of leveraging new age media for enhanced consumer engagement
pioneering campaigns such as ‘Fiama Di Wills Men’ website launch via Google+
Hangout and ‘Fiama Di Wills Men - Face of the Year’ campaign,
to name a few. A greater
presence of the Company’s brands on traditional as well as digital media,
direct consumer interaction initiatives, and improved market presence
contributed to the Company’s products being tried by over 70.000 Millions
households during the year (as per IMRB Household Panel survey - January 2013).
In addition, ‘Vivel’ was voted as one of the ‘Top 5 Most Exciting Brands’ in
Personal Care in India by Brand Equity and Nielsen’s Annual Survey for ‘Most
Exciting Brands’.
The Company’s
Personal Care Products business continued to grow at a fast clip, distinctly
ahead of industry despite competitive pressures from entrenched players. This
was achieved through a combination of innovative and differentiated offers and
by leveraging the distribution network of the Company to reach target
consumers. Input materials, especially palm oil, witnessed significant levels
of price volatility during the year. The depreciation
of the Indian
Rupee against the US Dollar added to inflationary pressure on other input
materials for a major part of the year. The business managed its raw material
costs effectively by adopting a proactive sourcing strategy based on deep
understanding of market trends, developing alternate sources of supply,
leveraging enhanced scale of operations and prudent inventory management.
SUBSIDIARIES:
ITC Global
Holdings Pte. Limited, Singapore (‘Global’), a subsidiary of the Company, is
under winding up in terms of the Order of the High Court of the Republic of
Singapore dated 30th November, 2007. Consequently, the Company is not in a
position to consolidate the accounts of Global for the financial year ended 31st
December, 2012 or to make available copy of the same for inspection by
shareholders.
SURYA NEPAL
PRIVATE LIMITED:
During the year
the operating environment in Nepal continued to remain uncertain with the
Constituent Assembly being dissolved in May 2012. The caretaker Government has
since made way for a new Council of Ministers headed by the Chief Justice of
Nepal, entrusted with the mandate of conducting the Constituent Assembly
elections.
On the economic
front, the GDP for the year ended 15th July ’12 grew by 4.6% against 3.8% in
the previous year on the strength of increased agricultural production and
growth in the services sector. However, there was a marked slowdown in
industrial production which decelerated to 1.6% from 2.9% in the previous year.
The company continues to engage with policy makers for a pragmatic and
purposeful policy and regulatory framework that will fuel long-term investment
and growth in the country’s industrial sector including the operating segments
of the company.
Despite these
challenging circumstances, the company continued to make good progress and
deliver superior performance. In the twelve-month period ended 13th March 2013
(30th Falgun 2069), the company recorded a 15% growth in sales with Gross
Turnover (net of VAT) increasing to Nepalese Rupees (NRs.) 16650.000 Millions
from NRs. 14430.000 Millions in the previous year. Profit after Tax at NRs
3700.000 Millions increased by 29% over the previous year. The company
continues to be one of the largest contributors to the exchequer accounting for
about 16% of excise collections and 3.3% of the total revenues of the
Government of Nepal.
The company
further consolidated its leadership position in the cigarette market through
continued investment in product quality and value addition to its product
portfolio. Its focus on remaining contemporary through the induction of new
generation technology platforms and the enhancement of internal capabilities
has strengthened the competitiveness of the business and reinforced market
standing. A Long Term Agreement with employees of the Simara factory, premised
on the company’s philosophy of harmonious employee relations management, was
concluded during the year. The second cigarette factory near Pokhara is in an
advanced stage of construction and will improve market servicing in the
long-term.
In the branded
apparels business, the company focused on enhancing its market standing,
distribution infrastructure and supply chain of ‘John Players’ and
‘Springwood’. In the safety matches business, the company’s brand ‘Tir’
continued to gain consumer franchise.
The company
remains committed to supporting and investing in endeavours that augment social
and economic capital in alignment with the stated priorities of the Government
of Nepal. Consistent with such commitment, several initiatives that are
expected to provide long-term multiplier benefits have been initiated and
sustained during the year. Accordingly, the company:
(a) Continued to
partner with Tobacco farmers in Nepal to ensure higher productivity and quality
enhancement at the farm level through the induction of agricultural best
practices. The adoption of such practices and other inputs provided by the
company has led to a consistent improvement in quality of domestic grades of
tobacco thereby improving marketability of the crop and farmer returns.
(b) Initiated a
programme to assist village farmers, proximate to the Simara factory, in the
plantation of high quality Poplar saplings to improve farmer earnings.
(c) Supported an
initiative in the animal husbandry sector by providing extension services that
will drive yield improvement and higher returns for underprivileged farmers.
(d) Partnered with
Nepal Tourism Board in hosting Nepal’s premier professional golf tournament -
the ‘Surya Nepal Private Limited Masters’, with the objective of promoting
Nepal as an attractive golfing destination.
(e) Continued to sponsor
the ‘Surya Nepal Private Limited Asha Social Entrepreneurship Awards’, to
recognize entrepreneurs who have created employment opportunities amongst local
communities.
The company
declared a dividend of NRs. 139/- per equity share of NRs. 100/- each for the
year ended 15th July 2012 (31st Ashad 2069).
ITC INFOTECH INDIA
LIMITED:
A weak global
economic scenario, particularly in the US and Europe, continued to impact
technology spends during the year. Although growth of the Indian IT industry
has slowed down in recent years given the economic uncertainties, favourable
exchange rates and market share gains during the year enabled it to grow ahead
of earlier estimates.
The company’s
consolidated Total Revenue grew well above the industry average, clocking a
growth of 23% to Rs. 10178.000 Millions while its Net Profit grew by 33% to Rs.
669.300 Millions. This robust performance is an outcome of the successful
strategies adopted by the company in (i) building world-class capabilities in
each of its service lines, (ii) investing in new technologies, (iii) building
solutions and capabilities around the products of global software vendors and
partnering with them to take the products to the market, and (iv) rapidly
growing the high potential accounts by
putting in place geographical and technological expansion plans.
FOR THE YEAR:
(a) ITC Infotech
India Limited registered a Total Revenue of Rs. 7066.500 Millions (previous
year Rs. 5662.300 Millions) and a Net Profit of Rs. 687.300 Millions (previous
year Rs. 286.900 Millions);
(b) ITC Infotech
Limited, UK, (I2B) a wholly owned subsidiary of the company, registered a Total
Revenue of GBP 25.03 million (previous year GBP 24.35 million) and a Net Profit
of GBP 1.86 million (previous year GBP 2.13 million). During the year, I2B paid
an Interim Dividend of GBP 3 (previous year : Nil) per Ordinary Share of GBP 1
each on 685,815 shares, amounting to GBP 2,057,445 (previous year: Nil) to the
company;
(c) ITC Infotech
(USA), Inc., (I2A) a wholly owned subsidiary of the company, together with its
wholly owned subsidiary Pyxis Solutions LLC, registered Total Revenues of US$
63.20 million (previous year US$ 49.85 million) and a Net Profit of US$ 0.91
million (previous year US$ 0.30 million).
During the year,
the company achieved an all-time high and ‘best-in-class’ Customer Satisfaction
Score based on a survey conducted by a reputed external agency. Such a rating
validates the company’s world-class quality of service and stands testimony to
its commitment to continuously raise the levels of service to meet growing
market expectations. Apart from expanding the company’s existing in-house
domain solution capabilities, specific development programmes were implemented
to embrace disruptive technologies such as cloud computing, social media and
mobile computing.
The company
continued to enhance and strengthen its partnerships with leading Independent
Software Vendors (ISVs) by building niche solutions to address white spaces and
joint go-to-market initiatives. In this regard, a number of initiatives were
progressed during the year including the launch of operations in new
geographies, offering of turnkey services - from licence sales to
implementation, becoming Authorised Training Partner in India and a consortium
partner in Customer Experience and Comprehensive Trade Management area.
RUSSELL CREDIT LIMITED:
During the year,
the company registered a Total Revenue of Rs. 696.600 Millions (previous year
Rs. 405.800 Millions) and a Net Profit of Rs. 589.600 Millions (previous year
Rs. 314.300 Millions).
As stated in the
Report of the Directors of the previous years, a petition was filed by an
individual in the High Court at Calcutta, seeking an injunction against the company’s
counter offer to the shareholders of VST Industries Limited, made in accordance
with the Securities and Exchange Board of India (Substantial Acquisition of
Shares and Takeovers) Regulations, 1997, as a competitive bid to a Public Offer
made by an Acquirer in 2001. During the year, the High Court at Calcutta, vide
Order dated 22nd June, 2012, dismissed the aforesaid petition. Similar
petitions filed in the High Court of Delhi at New Delhi and High Court of
Judicature of Andhra Pradesh at Hyderabad had earlier been dismissed by the
respective High Courts. The company, post dismissal of the aforesaid petition
by the High Court at Calcutta, sold its entire holding in VST Industries
Limited to the Company.
WIMCO LIMITED:
The company
achieved a Net Revenue of Rs. 1656.200 Millions during the year (previous year
Rs. 1697.000 Millions) and posted a Net Profit for the year of Rs. 19.000
Millions against Rs. 459.900 Millions loss in the previous year which included
a one-time cost of Rs. 368.700 Millions primarily towards restructuring its
operations. During the year, the company allotted to Russell Credit Limited the
unsubscribed portion of the Rights Issue of shares made in the previous year,
thereby raising Rs. 16.900 Millions.
Margins in the
Safety Matches business continued to remain under pressure mainly due to
escalation in prices of raw materials like wood, splints, paperboard, key
chemicals and the continuing high tax differential between the mechanized and
non-mechanized sector. The company continues to focus on cost rationalization
and margin improvement. During the year, the Agri (Forestry) business revenues
grew by around 25%. Availability of critical raw materials like wood at
competitive prices remain crucial for the success of the Safety Matches
business. Towards this end, the Agri (Forestry) business supplied high quality
poplar ETPs (Entire Transplants) and eucalyptus saplings to farmers in northern
India to enhance availability at competitive prices. Apart from creating a
long-term sustainable supply of a critical raw material, the company’s
initiative is helping create employment and livelihood opportunities while
improving the green cover in the region.
The Engineering
business revenues grew by 6% during the year driven mainly by improved value
capture through continuous product development in packaging machinery. The
company plans to leverage new and improved product design to offer superior
packaging solutions to its customers.
The initiatives taken by the company during the past few years to
restructure its operations are expected to enhance operating performance in the
years to come.
SRINIVASA RESORTS
LIMITED:
During the
financial year ended 31st March, 2013, the company recorded a Total Revenue of
Rs. 506.200 Millions (previous year Rs. 576.600 Millions) and a Profit Before
Tax of Rs. 55.400 Millions (previous year Rs. 118.900 Millions). Net Profit for
the year stood at Rs. 44.400 Millions (previous year Rs. 94.000 Millions).
The challenging
environment in the State of Andhra Pradesh continues to have an adverse impact
on the performance of the company’s hotel ITC Kakatiya, Hyderabad. The hotel
continued to focus on superior guest experience and strategic cost management
to sustain market standing and protect margins. For the fourth time in a row,
the hotel received the ‘Times Food Guide’ awards for ‘Kebabs and Kurries’ (Best
North Indian) and ‘Dakshin’ (Best South Indian) – with both being rated as the
best restaurants in their respective categories. During the year, the hotel
also received the ‘Best Landscaping Management Award’ from the Department of
Horticulture, Andhra Pradesh.
The Board of
Directors of the company has recommended a dividend of Rs. 1.00 per equity
share of Rs. 10/- each for the year ended 31st March, 2013.
FORTUNE PARK
HOTELS LIMITED:
During the
financial year ended 31st March, 2013, the company recorded a Total Revenue of
Rs. 232.200 Millions (previous year Rs. 207.800 Millions) and earned a Net
Profit of Rs. 59.700 Millions (previous year Rs. 49.600 Millions).
The company’s
Fortune hotel chain that caters to the ‘mid-market to upscale’ segment
continued its expansion by forging new alliances, taking the total number of
hotels in its fold to 69 with an aggregate room inventory of over 5,000. The
‘Fortune’ brand now has 39 operating hotels and another 3 hotels are slated to
be commissioned in the next financial year. The remaining 27 hotel projects are
under various stages of development. The brand remains a frontrunner in its
operating segment and is well positioned to sustain its leadership position in
the industry.
The company is
well known for providing quality products and services which have helped
position ‘Fortune’ as the premier ‘value’ brand in the Indian hospitality
sector. The ‘My Fortune’ brand, representing a ‘stylish lifestyle with
efficient personalized service’, is the latest addition to the bouquet of
brands offered by Fortune Hotels. During the year, the company bagged the ‘Best
First Class Business Hotel Chain’ award at the Today’s Traveller Awards 2012,
SATTE Award for leading ‘Mid Market Hotel Chain’ and ‘Best First Class Full
Service Business Hotel Chain in India’ by PATWA, ITB Berlin. The Board of
Directors of the company has recommended a dividend of Rs. 12.50 per equity
share of Rs. 10/- each for the year ended 31st March, 2013.
BAY ISLANDS HOTELS
LIMITED:
During the
financial year ended 31st March, 2013, the company recorded a Total Revenue of
Rs. 15.200 Millions (previous year Rs. 13.700 Millions) and Net Profit of Rs.
09.700 Millions (previous year Rs. 09.200 Millions). The company’s hotel,
Fortune Resort Bay Island in Port Blair, commands patronage in the city
primarily due to its fabulous location, excellent architectural design and
superior service quality. The company is in the process of undertaking a
comprehensive renovation and expansion programme with a view to enhancing the
market standing of the hotel. The Board of Directors of the company has
recommended a dividend of Rs. 70.00 per equity share of Rs. 100/- each for the
year ended 31st March, 2013.
LANDBASE INDIA
LIMITED:
The company owns
and operates the Classic Golf Resort, a Jack Nicklaus Signature Course, near
Gurgaon. As reported in the previous years, golf based resorts present
attractive long-term prospects in view of their growing popularity all over the
world. The work towards creating a destination luxury resort hotel at the
Classic Golf Resort is now underway and the project is progressing
satisfactorily.
During the
financial year ended 31st March, 2013, the company recorded a Total Revenue of
Rs. 118.200 Millions (previous year Rs. 105.700 Millions) and Net Loss of Rs.
38.100 Millions (previous year Rs. 32.200 Millions). During the year, the
company issued and allotted to the Company, 30,00,000 Redeemable Preference
Shares of Rs. 100/- each for cash at par, aggregating Rs. 300.000 Millions. The
proceeds from the Preference Share issue are being utilized by the company for
the construction of the destination luxury resort.
WELCOMHOTELS LANKA
(PRIVATE) LIMITED:
During the year,
Welcom Hotels Lanka (Private) Limited (‘WLPL’) was incorporated in Sri Lanka as
a wholly-owned subsidiary of the Company with the objective of constructing,
building and operating a mixed-use development project (‘Project’) including a
luxury hotel at Colombo. The Board of Investment of Sri Lanka provided about
5.86 acres of prime sea facing land in Colombo to the company on a 99-year
lease for this purpose. The Project has been declared as a Strategic
Development Project under the Strategic Development Projects Act No. 14 of 2008
of Sri Lanka. The Company has invested about US$ 75 million in WLPL by way of
equity and loan and WLPL is in the process of finalizing the design and product
configuration of the proposed Project.
MANAGEMENT
DISCUSSION AND ANALYSIS:
SOCIO-ECONOMIC ENVIRONMENT:
Growth in global
economic output remained weak and below trend during 2012. According to the
International Monetary Fund’s April 2013 report, global output is estimated to
have grown by only 3.2% in 2012 - significantly lower than the 4% growth
recorded in 2011. The Advanced Economies remained on a declining growth
trajectory recording only a 1.2% growth in 2012 against 1.6% in 2011. Such weak
performance is largely attributable to the euro area which contracted by 0.6%
during the year partially offset by a better showing by the US which grew by
2.2% against 1.8% in 2011 and Japan which got back to growth territory. The
Emerging Market and Developing Economies, as a group, saw a marked decline in
growth rates - from 6.4% in 2011 to 5.1% in 2012 - with the major constituent
countries viz. China, India, Brazil, Russia all recording significant
deceleration.
Optimism around
better economic prospects gathered steam in recent months on the back of the
temporary resolution of the ‘fiscal cliff’ and debt ceiling related issues in
the US, increased central bank activism such as the European Central Bank
promising unlimited bond buying to support the euro and the region’s economy in
general and the Federal Reserve’s pledge to hold interest rates down until
unemployment rate falls below 6.5%, and improved quality of economic data
especially from China and US evidencing that growth may be accelerating.
Consequently, key stock markets have rallied to multi-year highs in recent
months and capital flows to developing markets have picked up reflecting a
‘risk on’ sentiment.
That said, the
world economy remains in a difficult phase with global output projected to grow
at 3.3% in 2013 which is expected to be a year of transition with both Advanced
Economies and Emerging Market and Developing Economies gradually approaching
pre-crisis trend rates of growth. As per IMF estimates, Emerging Market and
Developing Economies are estimated to grow at 5.3% in 2013 and 5.7% in 2014 while
the US is forecast to grow at 1.9% in 2013 (after factoring the impact of
fiscal consolidation accounting for 1.8% of GDP) and 3% in 2014. Growth in the
euro area, in contrast, is estimated at (-)0.3% and 1.1% in 2013 and 2014
respectively. With Germany expected to record a sub 1% growth for the second
year in succession and French economy forecast to contract in 2013, weakness in
the euro area is no longer confined to the peripheral countries like Italy and
Spain which remain in recession, and poses the single biggest risk to global
recovery. A clear and long-term roadmap for fiscal consolidation in the US and
EU, the need to further strengthen the banking system without weakening the
sovereign in the EU, and bringing down the relatively high levels of
unemployment are some of the key challenges facing the Advanced Economies.
Emerging Market and Developing Economies, on the other hand, will need to deal
with the growth-inflation dynamic by aligning fiscal and monetary policy, raise
productivity through structural reforms, and rebuild social, fiscal and
monetary buffers that were largely consumed in the aftermath of the global
financial crisis so that if some of the risks prevailing in the world economy
were to materialise, they are once again in a position to respond effectively
and protect their economies from any large scale disruptions.
As aforementioned,
the Indian economy slowed down considerably during the year with Real GDP
growth estimated at 5% for 2012-13 - a 10 year low. The slowdown in the pace of
growth is largely attributable to weakness in Industry which grew by only 3.1%
during the year. The Manufacturing sector, which accounts for 55% of Industry,
recorded a dismal 1.9% growth during the year. Growth in the Agricultural
sector has also been weak partly due to the sub-normal rainfall in the initial
phases of the south-west monsoon. The pace of growth in the Services sector -
the key driver of economic growth over the last few years - also decelerated to
6.6%, well below the trend growth levels. From a demand side perspective,
growth in Private Final Consumption Expenditure (PFCE), the largest component
of aggregate demand, moderated to 4.1% in 2012-13 Vs. the preceding 5 year
average of 8.1% while Investment growth decelerated from the last 5 years
average of 9.2% and 4.4% in 2011-12 to 2.5% in 2012-13. The key causes for this
sharp downturn include the cumulative impact of persistently high and sticky
inflation levels in the economy which led to the RBI adopting a tight monetary
policy, lack of political consensus on policy reforms, a marked slowdown in the
rate of capital formation and weak investor sentiments under the backdrop of a
sluggish global economy as discussed earlier.
India’s ‘twin
deficit’ challenge also came under the spotlight during the year. The Current
Account Deficit widened to an all-time high at 5.4% of GDP during the first 9
months of 2012-13 Vs. 4.1% during the same period last year, mainly contributed
by high oil prices, subdued merchandise exports coupled with a marginal decline
in net services exports. On the other hand, the Fiscal Deficit, which seemed
like heading towards 6% of GDP in the middle of the year, was reined in by the
Government to 5.2% of GDP (Budget 2013 Estimates) through aggressive
compression in expenditure.
Several policy
measures were announced by the Government during the year. Some of the key
interventions include the setting up of the ‘Cabinet Committee on Investments’
to ensure expeditious clearance and implementation of big-ticket infrastructure
projects, direct cash transfers of subsidies, Diesel and LPG subsidy
restructuring. Several regulatory reforms including the new Companies Bill,
Land Acquisition Bill, FDI in pension and insurance, the Direct Tax Code are on
the anvil. Headline WPI inflation levels (especially in non-food manufactured
goods) have also softened in recent months fuelling expectations of further
rate cuts by the RBI in the ensuing months. This, coupled with the policy
interventions as stated above, augurs well for a pick-up in growth in 2013-14.
As per RBI
estimates, the Indian economy is expected to grow by 5.7% during 2013-14
representing only a modest improvement over the previous year. While
agricultural growth is expected to return to trend levels on the assumption of
normal monsoons, the outlook for industrial activity remains subdued given the
slow pace of investments and structural bottlenecks such as shortage of power,
coal, natural gas and disruptions in mining activity in some States. Growth in
services and exports is also likely to be sub-par in the backdrop of a sluggish
world economy. WPI inflation during the year is expected to be range-bound
around 5.5% on the expectation of higher agricultural output and benign
commodity prices - a key positive. The Government’s expenditure restructuring
initiatives including capping of subsidies and improved revenue growth are
expected to bring down the Fiscal Deficit to around 4.8% of GDP in 2013-14
(2013 Budget Estimates) as compared to 5.2% in 2012-13. The Current Account
Deficit, which touched an all-time high during 2012-13, is estimated at around
5% of GDP in 2013-14, representing twice the sustainable level.
The true potential
of the Indian economy was amply demonstrated during the period 2004-05 to
2007-08 when it grew at an average of appx. 9% per annum. The global economic
turmoil that unfolded in 2008 led to a slowdown in growth rates in 2008-09
followed by a sharp recovery in 2009-10 and 2010-11 based on the Government’s
pro-active measures to stimulate the economy. While India remains one of the
fastest growing major economies in the world, the slowdown in economic growth
in 2011-12 and 2012-13 is a cause of concern, being far below the desired
levels and the country’s potential. Given the low levels of per capita income
and the fact that a significant
proportion of their population lives in poverty, it is imperative that the
economy reverts to its 8% to 9% growth trajectory sooner than later.
Domestic
Consumption remains one of the key growth engines of the Indian economy. With a
large and growing population, significant additions to the working age
population over the medium to long-term, rising disposable incomes including in
rural areas and the Government’s increasing spends on the social sector to
foster inclusive growth - the structural drivers for rapid growth in
consumption are in place. Even so, the marked slowdown in private consumption
in 2012-13 is a cause of concern. Such deceleration of growth is mainly
attributable to the elevated levels of inflation in the economy especially for
food items due to the inadequate supply side response by the agricultural
sector in the face of growing demand for value-added items. The need of the
hour is to boost agricultural productivity and value addition by encouraging
investments and adoption of best practices in the agricultural value chains
while simultaneously improving market linkages. Besides, the recent slowdown in
the manufacturing sector needs to be reversed at the earliest since robust
industrial growth is essential for creation of sustainable livelihoods and
absorption of the increasing working age population of the country. A fillip to
industrial growth would be a critical boosting factor for domestic consumption
as well.
The importance of
capital formation remains paramount in economic development, more so for a
developing country like India. The strong Real GDP growth of appx. 9% p.a.
witnessed by the economy during the period 2004-05 to 2007-08 was driven by a
surge in Gross Fixed Capital Formation which grew at an average rate of 17.5%
p.a. during that period. However, growth in investments has slowed down
considerably in recent years and the rising trend of projects stalled and the
lack of new project announcements is alarming and needs to be reversed at the
very earliest. In this context, the Government’s recent actions to fast-track
implementation of large infrastructure projects is particularly laudable and
will go a long way in addressing the infrastructure deficit of the country.
FINANCIAL PERFORMANCE:
The Company posted
another year of strong performance across all financial parameters, leveraging
its corporate strategy of creating multiple drivers of growth. This performance
is even more encouraging when viewed against the backdrop of the extremely
challenging business context in which it was achieved, namely, the continued
economic slowdown, steep increase in taxes /duties on Cigarettes, gestation
costs relating to the new FMCG businesses and recent investments in the
Paperboards, Paper and Packaging and Hotels businesses.
Gross Revenue for
the year grew by 19.9% to Rs. 418098.200 Millions. Net Revenue at Rs.
296055.800 Millions grew by 19.4% primarily driven by a 26.4% growth in the
non-cigarette FMCG segment, 26.4% growth in Agri business segment and 13.4%
growth in the Cigarettes segment. Profit before tax increased by 20.1% to Rs.
106841.800 Millions while Net Profits at Rs. 74183.900 Millions registered a
growth of 20.4%. Earnings Per Share for the year stands at Rs. 9.45 (previous
year Rs. 7.93). Cash flows from Operations aggregated Rs. 95962.400 Millions
compared to Rs. 83335.600 Millions in the previous year.
Continuing with
the Company’s chosen strategy of creating multiple drivers of growth, the
Company is today, the leading FMCG marketer in India, a trailblazer in ‘green
hoteliering’ and the second largest Hotel chain in India, the clear market
leader in the Indian Paperboard and Packaging industry and the country’s
foremost Agri business player. The Company’s wholly-owned subsidiary, ITC
Infotech India Limited, is one of India’s fast growing Information Technology
companies in the mid-tier segment. The Company is one of India’s most admired
and valuable corporations with a current market capitalization of over Rs.
2600000.000 Millions and has consistently featured amongst the top 10 private
sector companies in terms of market capitalization and profits.
Additionally, over
the last 17 years, the Company’s Net Revenue and Net Profit recorded an
impressive compound growth of 15.6% and 21.8% per annum respectively. During
this period, Return on Capital Employed improved substantially from 28.4% to
45.7% while Total Shareholder Returns, measured in terms of increase in market
capitalization and dividends, grew at a compound annual growth rate of over
26%, placing the Company amongst the foremost in the country in terms of
efficiency of servicing financial capital.
Such an impressive
performance track record, delivered consistently over a long period of time,
won global recognition during the year with the Harvard Business Review ranking
the Company’s Chairman Mr. Y.C. Deveshwar - under whose stewardship this was
achieved - as the 7th best performing CEO in the world. The Directors are
pleased to recommend a Dividend of Rs. 5.25 per share (previous year Rs. 4.50
per share) for the year ended 31st March, 2013. Total cash outflow in this
regard will be Rs. 48534.900 Millions (previous year Rs. 40890.400 Millions)
including Dividend Distribution Tax of Rs. 7050.300 Millions (previous year Rs.
5707.500 Millions). The Board further recommends a transfer to General Reserve
of Rs. 7500.000 Millions (previous year Rs. 6500.000 Millions). Consequently,
the Board recommends leaving a surplus in Statement of Profit and Loss of Rs.
37881.000 Millions (previous year Rs. 19725.900 Millions).
STATEMENT OF AUDITED FINANCIAL RESULTS FOR THE QUARTER AND
TWELVE MONTHS ENDED 31st MARCH, 2014
(Rs. Millions)
|
Particulars |
|
3 months |
Preceding |
12 Months |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Gross Income |
|
129141.500 |
127182.400 |
481758.00 |
|
Gross Sales / Income From Operations |
|
125540.600 |
122234.400 |
467126.200 |
|
Excise Duties |
|
34089.200 |
36003.300 |
138300.600 |
|
Income From |
|
|
|
|
|
A) Net Sales /Income From Operations |
(1) |
91451.400 |
27966.700 |
328825.600 |
|
B) Other Operating Income |
(2) |
933.800 |
1037.400 |
3560.400 |
|
Total Income From Operations (Net) (1+2) |
(3) |
92385.200 |
87268.500 |
332386.000 |
|
Expenses |
|
|
|
|
|
A) Cost Of Materials Consumed |
|
27078.900 |
27966.700 |
102632.800 |
|
B) Purchases Of Stock-In –Trade |
|
10113.800 |
6032.200 |
30214.700 |
|
C) Changes In Inventories Of Finished Goods, Work-In-Progress and Stock-In-Trade |
|
1503.500 |
394.900 |
(1284.100) |
|
D) Employee Benefits Expense |
|
4108.100 |
4008.200 |
16083.700 |
|
E) Depreciation and Amortisation Expense |
|
2378.300 |
2259.200 |
8999.200 |
|
F) Other Expenses |
|
17547.000 |
16023.500 |
60190.500 |
|
Total Expenses |
(4) |
62729.600 |
56684.700 |
216836.800 |
|
Profit From Operations Before Other Income And |
(5) |
29655.600 |
30583.800 |
15549.200 |
|
Other Income |
(6) |
2667.100 |
3910.600 |
11071.400 |
|
Profit From Ordinary Activities Before Finance |
(7) |
32322.700 |
34494.400 |
126620.600 |
|
Finance Costs |
(8) |
95.300 |
91.400 |
29.500 |
|
Profit From Ordinary Activities Before Taxâ |
(9) |
32227.400 |
34403.000 |
126591.100 |
|
Tax Expense |
(10) |
9447.300 |
10549.600 |
38739.000 |
|
Net Profit For The Period (9-10) |
(11) |
22780.100 |
23853.400 |
87852.100 |
|
Paid Up Equity Share Capital |
(12) |
7953.200 |
7953.200 |
7953.200 |
|
(Ordinary Shares Of Re. 1/- Each) |
|
-- |
-- |
-- |
|
Reserves Excluding Revaluation |
(13) |
-- |
-- |
-- |
|
Earnings Per Share
(Of |
(14) |
|
|
|
|
(A) Basic (Rs.) |
|
2.87 |
3.01 |
11.09 |
|
(B) Diluted (Rs.) |
|
2.83 |
2.97 |
10.96 |
|
|
3 months |
Preceding |
12 Months |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
A. Particulars Of
Shareholding |
|
|
|
|
1. Public Shareholding |
|
|
|
|
- Number Of Shares |
7932401330 |
7913252114 |
7932401330 |
|
- Percentage Of Shareholding |
99.74 |
99.72 |
99.74 |
|
2. Promoters And Promoter Group
Shareholding |
|
|
|
|
A) Pledged / Encumbered |
NA |
NA |
NA |
|
B) Non - Encumbered |
NA |
NA |
NA |
|
B.
Investor Complaints |
3
months ended 31.03.2014 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
2 |
|
Disposed off during the quarter |
2 |
|
Remaining unresolved at the end of the
quarter |
Nil |
(Rs. In Millions)
|
SOURCES
OF FUNDS |
31.03.2014 |
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
(1)Shareholders' Funds |
|
|
(a) Share Capital |
7953.200 |
|
(b) Reserves & Surplus |
254667.000 |
|
(c) Money received against
share warrants |
0.000 |
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
262620.200 |
|
|
|
|
(3) Non-Current Liabilities |
|
|
(a) long-term borrowings |
510.000 |
|
(b) Deferred tax liabilities
(Net) |
12969.600 |
|
(c) Other long term
liabilities |
50.900 |
|
(d) long-term provisions |
1100.000 |
|
Total
Non-current Liabilities (3) |
14630.500 |
|
|
|
|
(4) Current Liabilities |
|
|
(a) Short term borrowings |
1.400 |
|
(b) Trade payables |
19875.900 |
|
(c) Other current liabilities |
36318.800 |
|
(d) Short-term provisions |
58847.100 |
|
Total
Current Liabilities (4) |
115043.200 |
|
|
|
|
TOTAL |
392293.900 |
|
|
|
|
II.
ASSETS |
|
|
(1) Non-current assets |
|
|
(a) Fixed Assets |
143084.700 |
|
(b) Non-current Investments |
25121.700 |
|
(c) Deferred tax assets (net) |
0.000 |
|
(d) Long-term Loan and Advances |
14800.200 |
|
(e) Other Non-current assets |
0.000 |
|
Total
Non-Current Assets |
183006.600 |
|
|
|
|
(2) Current assets |
|
|
(a) Current investments |
63112.600 |
|
(b) Inventories |
73595.400 |
|
(c) Trade receivables |
21653.600 |
|
(d) Cash and cash equivalents |
32893.700 |
|
(e) Short-term loans and
advances |
7835.100 |
|
(f) Other current assets |
10196.900 |
|
Total
Current Assets |
209287.300 |
|
|
|
|
TOTAL |
392293.900 |
Unaudited Segment-wise
Revenue, Results and Capital Employed for the
Quarter and TWELVE Months ended
30th September, 2013
(Rs. In Millions)
|
|
Particulars
|
3 months |
Preceding |
12 Months |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1. |
Segment Revenue |
|
|
|
|
a) |
FMCG- Cigarettes - Gross |
74293.500 |
76639.800 |
290764.800 |
|
|
- Net |
40787.800 |
41160.700 |
154560.500 |
|
|
FMCG- Others - Gross |
23203.500 |
20833.200 |
81218.000 |
|
|
- Net |
23145.100 |
20778.200 |
80992.100 |
|
|
Total FMCG -
Gross |
97497.000 |
97473.000 |
371982.800 |
|
|
- Net |
63932.900 |
61938.900 |
235552.600 |
|
b) |
Hotels - Gross |
3525.200 |
3154.700 |
11328.500 |
|
|
- Net |
3205.100 |
3154.400 |
11327.800 |
|
c) |
Agri Business - Gross |
20042.400 |
17863.700 |
77520.500 |
|
|
- Net |
20042.400 |
17863.700 |
77520.500 |
|
d) |
Paperboards, Paper & Packaging - Gross |
13414.200 |
13355.900 |
51660.400 |
|
|
- Net |
12612.000 |
12574.300 |
48605.100 |
|
|
Total |
134158.800 |
131847.300 |
512492.200 |
|
|
- Net |
99792.400 |
95531.300 |
373006.000 |
|
|
Less : Inter-segment revenue - Gross |
8618.200 |
9612.900 |
45366.000 |
|
|
- Net |
8341.000 |
9300.200 |
44180.400 |
|
|
Gross sales /
Income from operations |
125540.600 |
122234.400 |
467126.200 |
|
|
Net sales /
Income from operations |
91451.400 |
86231.000 |
328825.600 |
|
2. |
Segment Results |
|
|
|
|
a) |
FMCG |
25519.400 |
26526.400 |
98580.000 |
|
|
- Liability no longer required written
back |
0.000 |
0.000 |
1579.100 |
|
|
FMCG |
25519.400 |
26526.400 |
100159.100 |
|
|
FMCG |
430.900 |
103.500 |
218.200 |
|
|
Total FMCG |
25950.300 |
26629.900 |
100377.300 |
|
b) |
Hotels |
598.500 |
622.000 |
1397.100 |
|
c) |
Agri Business |
1454.800 |
2054.000 |
8347.800 |
|
d) |
Paperboards, Paper & Packaging |
1884.100 |
2316.900 |
8924.600 |
|
|
Total |
29887.700 |
31622.800 |
119046.800 |
|
|
Less : i) Finance Costs |
95.300 |
91.400 |
377.200 |
|
|
Liability no longer required written back |
0.000 |
0.000 |
(347.700) |
|
|
Finance Costs |
95.300 |
91.400 |
29.500 |
|
|
ii) Other un-allocable (income) net of
un-allocable expenditure |
(2435.000) |
(2871.600) |
(7573.800) |
|
|
Profit Before
Tax |
32227.400 |
3440.300 |
126591.100 |
|
|
Tax Expense |
9447.300 |
10549.600 |
38739.000 |
|
|
Profit After Tax |
22780.100 |
23853.400 |
87852.100 |
|
3. |
Capital Employed |
|
|
|
|
a) |
FMCG |
57054.800 |
52181.600 |
57054.800 |
|
|
FMCG |
338535.300 |
31673.700 |
33835.300 |
|
|
Total FMCG |
90890.100 |
83855.300 |
90890.100 |
|
b) |
Hotels |
36253.900 |
35762.700 |
36253.900 |
|
c) |
Agri Business |
20524.400 |
17933.900 |
20524.400 |
|
d) |
Paperboards, Paper & Packaging |
53190.800 |
51842.600 |
53190.800 |
|
|
Total Segment
Capital Employed |
200859.200 |
189394.500 |
200859.200 |
|
|
||||
FIXED ASSETS:
·
Freehold Land
·
Freehold Building
·
Railway Sidings
·
Plant and Machinery
·
Computer, servers and other I.T equipments
·
Furniture and Fittings
·
Motor Vehicles
·
Leasehold properties
·
Capitalized software
PRESS RELEASE:
ITC Q4 NET UP 18.16% AT RS 22780.000 MILLIONS
New Delhi: Diversified group ITC on Friday posted 18.16 percent increase in standalone net profit at Rs 22780.100 Millions for the fourth quarter ended March 31, helped by lower expenses.
Net sales rose 11.79 percent to Rs 91451.400 Millions in Q4, 2013-14, from Rs
81803.000 Millions in the year-ago period, ITC said in a statement.
During the quarter, overall expenses stood at Rs 52729.500 Millions, down 8.4
percent, compared to Rs 57577.700 Millions in the year-ago period.
The company continued to deliver strong financial performance with healthy
growth in revenues and high quality earnings. This performance is particularly
commendable when viewed against the backdrop of the extremely challenging
business context," the company said in a statement.
Revenue from the FMCG business, including cigarettes, climbed by 12.57 percent
to Rs 40787.800 Millions, from Rs 36232.300 Millions in Q4, 2012-13.
"Categories involving higher discretionary spends or with relatively high
penetration levels were impacted the most," ITC said.
Revenue from ITC's non cigarettes FMCG grew by 13.66 percent to Rs 23145.100
Millions, compared with Rs 2,0362.000 Millions in the same period last year.
Revenue from hotels business grew marginally to Rs 3205.100 Millions, from Rs
3154.500 Millions in Q4, 2012-13.
"The hospitality sector continued to be adversely impacted by the weak
economic environment prevailing in major international source markets and in
India on the one hand, and significant additions to room supplies in key Indian
cities on the other," the company said.
During the entire 2013-14 fiscal, the company reported net profit of Rs
88913.800 Millions, up 16.86 percent as against Rs 76080.700 Millions in the
same period a year ago.
Net sales for the year were Rs 349847.000 Millions, up 11.68 percent, from Rs
313234.500 Millions in the previous fiscal.
The ITC scrip closed at Rs 342.15, down 0.77 percent
ITC AMONG INDIA’S TOP TWO BUZZIEST CORPORATE BRANDS
10 MAR 2014
ITC has been voted among the top two “Buzziest Brands” in the “Corporate” category by “afaqs”, one of the world’s largest marketing and advertising portals.
The Annual Buzziest Brands Awards, now in its 9th year in India, felicitates those brands that have managed to create that elusive “buzz in the marketplace”. This year, over 1,200 people voted for their choice of buzzy brands, following which an eminent six-member jury submitted their views. The awards were presented at a ceremony held in New Delhi on February 26, 2014.
ITC is one of India’s most trusted and valuable corporates. Its world-class brands delight millions of Indian households. With quality and trust as its trademarks, ITC’s FMCG portfolio consists of over 50 vibrant brands. ITC’s brands like Aashirvaad, Sunfeast, Dark Fantasy, Delishus, Bingo!, Yippee!, Candyman, Mint-o and Kitchens of India in the Branded Foods space, Fiama Di Wills, Vivel and Engage in Personal Care, Classmate and Paperkraft in Education and Stationery; Wills Lifestyle and John Players in apparel, Mangaldeep in Agarbattis and Aim in Matches are popular across the country.
Apart from being the country's leading FMCG marketer, ITC is the clear market leader in the Indian Paperboard and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its ITC e-Choupal initiative, the second largest Hotel Chain in India and a trailblazer in 'green hoteliering'. Its subsidiary, ITC Infotech, is one of India's fast-growing IT companies in the mid-tier segment.
ITC's innovative business models and sustainable value chains have contributed significantly to creating large scale societal value. ITC is today the only company in the world of comparable dimensions that has remained carbon positive for 8 years in a row, water positive for 11 consecutive years and solid waste recycling positive for the last 6 years. ITC's businesses and associated value chains support more than 5 million sustainable livelihoods.
ITC HOTELS TIES UP WITH RP GROUP HOTELS AND RESORTS TO MANAGE 5 HOTELS
IN INDIA AND DUBAI
16 SEP 2013
ITC Hotels has tied up with RP Group Hotels and Resorts to manage 5 hotels in India and Dubai, under ITC Hotels’ 5-star ‘WelcomHotel’ brand and the group’s mid-market to upscale ‘Fortune’ brand.
Nestled in the secluded backwaters of the Arabian Sea near Thiruvananthapuram in Kerala is the five-star deluxe, WelcomHotel Raviz Resort and Ayurveda Centre Kollam, a perfect blend of modern architecture, and traditional designs of a bygone era. Taking advantage of the scenic backwaters, the hotel boasts of 3 luxury houseboats and 93 exquisitely designed rooms and suites.
Designed to reflect the architectural splendour of the mystical Malabar region, the WelcomHotel Raviz Resort and Ayurveda Centre Kadavu, a five star resort on the banks of the Chalayar river in Calicut, is set amidst a sprawling 10-acre coconut grove. It houses the famous Kadavu Ayurvedic Centre, which has been awarded the prestigious Green Leaf Award, for 9 consecutive years. In addition to state-of-the-art technology and best in class services, these hotels showcase the rich and diverse culinary offerings from different regions within Kerala.
Embodying the WelcomHotel brand promise of efficiency and warmth with facilities and services designed to cater to the needs of the business and leisure traveller,the 'WelcomHotel Raviz Kollam and the WelcomHotel Raviz Kadavu are committed to creating new benchmarks in hospitality.
In addition, on the anvil is Fortune Raviz Calicut and two Fortune Raviz hotels in Dubai. Both Kerala and Dubai possess immense tourism potential as significant inbound and outbound destinations, for the country.
The tie-up has been firmed up through a Memorandum of Understanding between ITC Hotels and RP Groups Hotels and Resorts. While the two WelcomHotels are already under a management contract and will be flagged off immediately, the three Fortune hotels are a part of the signed MOU and will be launched subsequently.
As part of its expansion drive, ITC Hotels proposes to add several managed hotels to its brand portfolio. On the anvil are an ITC super-premium luxury hotel in Mahabalipuram, a WelcomHotel in Jodhpur, Patna and Chandigarh, and more than 30 hotels under the Fortune brand.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.48 |
|
|
1 |
Rs.100.93 |
|
Euro |
1 |
Rs.80.71 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
81 |
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.