MIRA
INFORM REPORT
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Report Date : |
05.03.2014 |
IDENTIFICATION DETAILS
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Name : |
HSIL LIMITED (w.e.f. 27.04.2009) |
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Formerly Known
As : |
HINDUSTAN SANITARYWARE INDUSTRIES LIMITED |
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Registered
Office : |
2, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
08.02.1960 |
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Com. Reg. No.: |
21-024539 |
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Capital Investment
/ Paid-up Capital : |
Rs. 132.097 Millions |
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CIN No.: [Company Identification
No.] |
L51433WB1960PLC024539 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDH00554B /
RTKH01805G |
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PAN No.: [Permanent Account No.] |
AAACH7564H |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
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Manufacturing of Sanitaryware and Container Glass. |
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No. of Employees
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3500 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
A (68) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 43600000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track record. The management
has seen a dip in its net profitability, where as the company passesses a
comfortable financial profile marked by healthy networth during 2013. The ratings also
take into considereation the established brand name, strong marketing and
distribution network. Moreover, the
increasing raw material and power costs, exposure to forex fluctions, intense
competition may act as constraints during the year under review. However, trade
relations are fair. Business is active. Payment terms are reported as regular
and as per commitments. In view of
experienced promoters and established track records, the subject can be considered
good for business dealings at usual trade etrms an 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 – December 1, 2013
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Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The worst is over for India’s economy with gross domestic product likely
to expand 5 %to 5.5 % this year and more than 6 % in 2015, according to Moody’s
Analytics. Concerns over the rupee and current account deficit are under
control, said the agency. Ratings firm Crisil has forecast 6 % growth for
2014/15 up from the estimated 4.8 % for 2013/14. Total economic growth,
infrastructure bottlenecks and lack of transparency and consistency in foreign
direct investment policies seem to have taken a toll on India’s attractiveness
as an investment destination, says an Ernst & Young survey. Projects
with FDI component fell 16.4 % across the globe in 2012 from the previous
year. The drop in India was steeper at 21 %. State run carrier Air India
is doling out free tickets to its 24000 employees, even as it expects to incur
a loss of Rs 39000 mn this financial year and has a debt of Rs 350000 mn.
550000 number of jobs generated across India in 2013, a fall of 0.4 % as
compared to with a year earlier. The National Capital Region has a
one-fourth share in total jobs created, according to a study by industry lobby
group Assochem, Banks, real estate, automobile and telecommunications sectors
are showing a rise of job creation. $ 805 mn investments by venture capital
firms in India during 2013, registering a drop of about 18 % over the previous
year. The Information Technology and IT-Enabled Services Industry retained
its status as the favourable venture capital investors in 2013. Pakistan has
temporarily banned gold imports for the second time in six months, as it tries
to stem smuggling into India. India’s import duty on gold is 10 % and curbs on
purchases have dried up legal imports into what used to be the world’s biggest
bullion buyers. The World Gold Council puts the amount smuggled into India at
upto 200 tonnes in 2013. The Reserve Bank of India has proposed that unclaimed
bank deposits estimated to be about Rs 35000 mn be used for education and
awareness among depositors. According to the plan, deposits that have not
been claimed for at least 10 years will be transferred to the scheme.
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term bank facilities: “A+” |
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Rating Explanation |
Adequate degree of safety regarding timely servicing of financial
obligations. |
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Date |
27.02.2014 |
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Rating Agency Name |
CARE |
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Rating |
Short term bank facilities: “A1+” |
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Rating Explanation |
Very strong degree of safety and Lowest credit risk. |
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Date |
27.02.2014 |
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 PARTED BY
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Name : |
Mr. Ravi Kedia |
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Designation : |
Accounts Manager |
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Contact No.: |
91-9831011288 |
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Date: |
27.02.2014 |
LOCATIONS
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Registered Office : |
2, Red Cross
Place, Post Box 2359, Kolkata - 700001, West Bengal, India |
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Tel. No.: |
91-33-22487406/ 07 |
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Mobile No.: |
91-9831011288 (Mr. Ravi Kedia) |
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Fax No.: |
91-33-22487045 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Corporate Office : |
Unit No. 301-302, III Floor, Park Centra, Sector 30,
N.H-8, Gurgaon – 122001, |
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Tel No.: |
91-124-4779200/ 201 |
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Fax No.: |
91-124-4292899/ 4292898 |
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Email : |
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Manufacturing Unit
1 : (Building Products
Division) |
Hindustan Sanitaryware and Industries Limited (CD I), Bahadurgarh District Jhajjar - 124507, Haryana, India |
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Tel No.: |
91-1276-230485/ 86/ 87/ 232226/ 7/ 8 |
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Fax No.: |
91-1276-230138 |
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Manufacturing Unit
2 : (Building Products
Division) |
Hindustan Sanitaryware and Industries Limited (CD II), Somanypuram,
Brahmanapally Village, Bibinagar District Nalgonda - 508126, Andhra Pradesh,
India |
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Tel No.: |
91-8685-651448/
651773 |
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Manufacturing Unit
3 : (Building Products
Division) |
G 470-471, Phase I, RIICO Industrial Area, Bhiwadi - 301019, Rajasthan, India |
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Tel No.: |
91-1432-257752 |
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Glass Division-I : (Container Glass
Division) |
Glass Factory
Road, Off Motinagar, P.B No. 1930, Sanathnagar P.O. Hyderabad - 500018, Andhra
Pradesh, India |
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Glass Division-II : (Container Glass
Division) |
Glass Factory
Road, Thukkapur Road, Bhongir, District Nalgonda - 508116, Andhra Pradesh,
India |
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AGI Glasspac : |
304-305, Ashoka Bhoopal Chambers, Sardar Patel Road, Secunderabad –
500003, Andhra Pradesh, India |
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Tel No.: |
91-40-66288000 |
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Fax No.: |
91-40-66288080/ 66288090 |
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Email : |
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Regional Offices : |
Located at: · Ahmedabad · Indore · Bangalore · Bhubaneswar · Jaipur · Lucknow · Chandigarh · Mumbai · Chennai · Pune · Ernakulam · Ranchi · Ghaziabad · Secunderabad · Guwahati |
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EVOK Stores: |
Located at: · Delhi Haryana Uttar
Pradesh Punjab Maharashtra Andhra
Pradesh Karnataka Rajasthan Kerala Madhya
Pradesh |
DIRECTORS
As on 31.03.2013
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Name : |
Mr. Rajendra K. Somany |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
76 Years |
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Qualification : |
B.Com., FI(Ceramics) (U.K.), LFAIMA, FCMI (UK), Member - IOM3 (U.K.),
Emeritus Member- American Ceramic Society |
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Experience : |
58 Years |
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Date of Appointment : |
09.01.1988 |
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Name : |
Mr. Sandip Somany |
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Designation : |
Joint Managing Director |
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Date of Birth/Age : |
50 Years |
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Qualification : |
B. Com, Diploma in Ceramics (USA) |
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Experience : |
28 Years |
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Date of Appointment : |
11.11.1994 |
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Name : |
Mr. Ashok Jaipuria |
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Designation : |
Independent Director |
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Qualification : |
Degree Holder in Associate of Arts in Business Administration |
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Date of Appointment : |
15.05.2004 |
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Name : |
Mr. G L Sultania |
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Designation : |
Director |
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Qualification : |
B .Com, F.C.A., F.C.S. |
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Date of Appointment : |
09.01.2006 |
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Name : |
Mr. N. G. Khaitan |
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Designation : |
Independent Director |
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Qualification : |
B. Com, LLB, Bar at Law From Kolkata High Court |
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Date of Appointment : |
29.06.1996 |
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Name : |
Dr. Rainer Siegfried Simon |
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Designation : |
Independent Director |
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Date of Appointment : |
18.05.2011 |
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Name : |
Mr. Salil Kumar Bhandari |
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Designation : |
Independent Director |
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Date of Appointment : |
29.05.2012 |
KEY EXECUTIVES
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Name : |
Mr. Vipin |
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Designation : |
Junior Officer |
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Name : |
Ms. Payal M. Puri |
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Designation : |
Company Secretary |
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Name : |
Mr. Ram Babu Kabra |
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Designation : |
President - BPD |
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Date of Birth/Age : |
55 Years |
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Qualification : |
B.Com., FCA, ACS |
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Experience : |
32 Years |
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Name : |
Mr. Santosh Nema |
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Designation : |
President - BPD |
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Date of Birth/Age : |
54 Years |
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Qualification : |
PGDBM (IIM-A) |
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Experience : |
30 Years |
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Name : |
Mr. Arun Kumar D |
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Designation : |
President - Glass Division |
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Date of Birth/Age : |
66 Years |
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Qualification : |
B.E. (Mechanical) |
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Experience : |
41 Years |
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Name : |
Mr. J K Somani |
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Designation : |
Sr. Vice President - BPD |
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Date of Birth/Age : |
56 Years |
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Qualification : |
B. Com., ACS |
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Experience : |
35 Years |
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Name : |
Mr. Anil Chandani |
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Designation : |
Sr. Vice President (Corporate Finance) |
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Date of Birth/Age : |
46 Years |
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Qualification : |
FCA , FCS , AICWA, DBF (ICFAI ) |
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Experience : |
23 Years |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of
Promoter and Promoter Group |
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5747719 |
8.70 |
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28314530 |
42.87 |
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34062249 |
51.57 |
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Total shareholding of
Promoter and Promoter Group (A) |
34062249 |
51.57 |
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(B) Public
Shareholding |
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5870163 |
8.89 |
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26496 |
0.04 |
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500 |
0.00 |
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13263925 |
20.08 |
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19161084 |
29.01 |
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1692936 |
2.56 |
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8891488 |
13.46 |
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1746229 |
2.64 |
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492409 |
0.75 |
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386620 |
0.59 |
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60106 |
0.09 |
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45683 |
0.07 |
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12823062 |
19.42 |
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Total Public
shareholding (B) |
31984146 |
48.43 |
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Total (A)+(B) |
66046395 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
66046395 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Sanitaryware and Container Glass. |
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Exports : |
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Products : |
Sanitaryware and Cantainer Glass |
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Countries : |
·
UK ·
Middle East ·
UAE ·
Austrialia ·
African Countries
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Imports : |
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Products : |
Raw Material |
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Countries : |
·
China ·
UK ·
Korea |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
GENERAL INFORMATION
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Suppliers : |
Not Divulged |
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Customers : |
Wholesalers and Retailers |
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No. of Employees : |
3500 (Approximately) |
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Bankers : |
· Andhra Bank Canara
Bank Central
Bank of India Citibank,
N.A. DBS
Bank Deutsche
Bank AG HDFC
Bank Limited Standard
Chartered Bank The
Bank of Nova Scotia The
Honkong and Shanghai Banking Corporation |
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Facilities : |
NOTE LONG TERM
BORROWINGS 1. Foreign currency
loans comprises of : a) External commercial borrowings (ECB) of USD 17 million from The Hongkong and Shanghai Banking Corporation Limited carrying interest @ 6 months LIBOR+ 200 bps, is repayable in 30 installments ranging from USD 0.40 million to USD 1.00 million starting from September 2011 and are secured by way of hypothecation of the whole of fixed assets including movable plant and machinery, machine spares, tools and accessories (both present and future) pertaining to the glass divisions of Company located at Sanathnagar and Bhongir and further secured by first pari-passu charge by way of mortgage of deposit of title deeds of immovable properties of glass divisions of the Company situated at Sanathnagar and Bhongir in Andhra Pradesh. b) External commercial borrowings (ECB) of USD 16.75 million from Citibank N.A. carrying interest @ 6 months LIBOR+ 181 bps, is repayable in 10 installments ranging from USD 0. 299 million to USD 0.925 million starting from September 2011 and are secured by way of hypothecation of the whole of fixed assets including movable plant and machinery, machine spares, tools and accessories (both present and future) pertaining to the glass divisions of Company located at Sanathnagar and Bhongir and further secured by first pari-passu charge by way of mortgage of deposit of title deeds of immovable properties of glass divisions of the Company situated at Sanathnagar and Bhongir in Andhra Pradesh. c) External commercial borrowings (ECB) of USD 16 million from Standard Chartered Bank carrying interest @ 6 months LIBOR+ 177 bps, is repayable in 36 installments ranging from USD 0.12 million to USD 1.079 million starting from September 2010 and are secured by way of hypothecation of the whole of fixed assets including movable plant and machinery, machine spares, tools and accessories (both present and future) pertaining to the glass divisions of Company located at Sanathnagar and Bhongir and further secured by first pari-passu charge by way of mortgage of deposit of title deeds of immovable properties of glass divisions of the Company situated at Sanathnagar and Bhongir in Andhra Pradesh. d) External commercial borrowings (ECB) of USD 8 million from Standard Chartered Bank carrying interest @ 6 months LIBOR + 225bps, is repayable in 40 equal installments of USD 0.25 million starting from September 2012 and are secured by way of hypothecation of the whole of fixed assets including movable plant and machinery, furniture and fittings, equipments, computerhardware, computer software, machinery spares, tools and accessories (both present and future) pertaining to the glass divisions of Company located at Sanathnagar and Bhongir and further secured by first pari-passu charge by way of mortgage of deposit of title deeds of immovable properties of glass divisions of the Company situated at Sanathnagar and Bhongir in Andhra Pradesh. e) External commercial borrowings (ECB) of USD 20 million from Standard Chartered Bank carrying interest @ 6 months LIBOR + 300 bps, is repayable in 50 installments ranging from USD 0.225 million to USD 0.90 million starting from March 2014 and are secured by way of hypothecation of the whole of fixed assets including movable plant and machinery, furniture and fittings, equipments, computer hardware, computer software, machinery spares, tools and accessories (both present and future) pertaining to the glass divisions of Company located at Sanathnagar and Bhongir and further secured by first pari-passu charge by way of mortgage of deposit of title deeds of immovable properties of glass divisions of the Company situated at Sanathnagar and Bhongir in Andhra Pradesh. f) External commercial borrowings (ECB) of USD 25 million from DBS Bank Limited carrying interest @ 6 months LIBOR + 260 bps, is repayable in 50 installments ranging from USD 0.32 million to USD 0.72 million starting from March 2014 and are secured by way of hypothecation of the whole of fixed assets including movable plant and machinery, furniture and fittings, equipments, computer hardware, computer software, machinery spares, tools and accessories (both present and future) pertaining to the glass divisions of Company located at Sanathnagar and Bhongir and further secured by first pari-passu charge by way of mortgage of deposit of title deeds of immovable properties of glass divisions of the Company situated at Sanathnagar and Bhongir in Andhra Pradesh. g) External commercial borrowings (ECB) of USD 8.955 million from DBS Bank Limited carrying interest @ 3 months LIBOR + 200 bps, is repayable in 32 equal installments of USD 0.281 million starting from October 2012 and are secured by exclusive charge by way of mortgage of deposit of title deeds of the Company pertaining to vacant freehold land situated at Sitarampur, Isnapur, PO Medak District, near Hyderabad, Andhra Pradesh. h) External commercial borrowings (ECB) of USD 20 million from The Hongkong and Shanghai Banking Corporation Limited carrying interest @ 6 months LIBOR + 300 bps, is repayable in 35 installments ranging from USD 0.57 million to USD 0.15 million starting from November 2014 and are secured by first pari-passu charge over all present and future movable and immoveable fixed assets of Sanitaryware plant located at Bahadurgarh, District Jhajjar, Haryana. 2. Rupee loans
comprise of : a) DBS Bank Limited : Term loan of Rs. 400.000 Millions, carrying interest @ 11.26% p.a., is repayable in 16 equal quarterly installments of Rs. 25.000 Millions starting from March 2011 and is secured by first pari-passu charge by way of mortgage of deposit of title deeds of the Company pertaining to vacant freehold land situated at Sitarampur, Isnapur, PO Medak District, near Hyderabad, Andhra Pradesh. b) DBS Bank Limited : Term loan of Rs. 500.000 Millions carrying interest @ 9.75% p.a., is repayable in 48 quarterly installments ranging from Rs. 6.250 Millions to Rs. 12.500 Millions starting from February, 2014 and is secured by first pari-passu charge on immovable and movable fixed assets located at the company’s sanitaryware plant at Bahadurgarh, District Jhajjar, Haryana. 3. Car finance loans from ICICI bank of Rs. 2.444 Millions, carrying interest @ 9.8% p.a., is repayable in 36 equal monthly installments of Rs. 0.068 lac starting from April 2011 and is secured by hypothecation of vehicles finance out of the proceed of such loan. 4. Car finance loans from ICICI bank of Rs. 9.406 Millions, carrying interest @ 9.25% p.a., is repayable in 36 monthly installments of Rs. 0.217 Millions starting from January 2011 and is secured by hypothecation of vehicles finance out of proceeds of such loans. 5. Deferred payment liabilities is in respect of value added tax and central sales tax liabilities pertaining to the year 1999-2000 to 2012-13, is repayable by the end of financial year 31 March 2027 is secured against the movable and immoveable properties of the Company. However, the charge is not yet been registered with the Registrar of Companies, West Bengal. Also, the amount of deferred sales tax credit is subject to assessment by sales tax authorities. 6. Current maturities of long-term borrowing amounting to Rs. 954.323 Millions (previous year Rs. 719.757 Millions) are included under the head ‘Other current liabilities’. SHORT TERM
BORROWINGS a) Buyer’s credit facilities from Citibank N.A., Standard Chartered Bank, Andhra Bank, The Hongkong and Shanghai Banking Corporation Limited carrying rate of interest ranging between 1.53% - 2.29% p.a. is repayable within 6 months from the origination and is secured by hypothecation of stocks and book debts and further secured by second pari-passu charge on all the fixed assets of the Company situated at Bahadurgarh, Bibinagar, Sanathnagar and Bhongir. b) Cash credit facilities from Central Bank of India, Canara Bank and Standard Chartered Bank carrying rate of interest of 13.25% p.a. is repayable on demand and is secured by hypothecation of stocks and book debts and further secured by second pari-passu charge on all the fixed assets of the Company situated at Bahadurgarh, Bibinagar, Sanathnagar and Bhongir. c) Cash credit facilities from Citibank N.A. carrying rate of interest 12% p.a. is repayable on demand and is secured by hypothecation of stocks and book debts and further secured by second pari-passu charge on all the fixed assets of the Company situated at Bahadurgarh, Bibinagar, Sanathnagar and Bhongir. d) Cash credit facilities from DBS Bank Limited carrying rate of interest 12.5% p.a. is repayable on demand and is secured by hypothecation of stocks and book debts and further secured by second pari-passu charge on all the fixed assets of the Company situated at Bahadurgarh, Bibinagar, Sanathnagar and Bhongir. e) Cash credit facilities from Andhra Bank carrying rate of interest 13.5% p.a. is repayable on demand and is secured by hypothecation of stocks and book debts and further secured by second pari-passu charge on all the fixed assets of the Company situated at Bahadurgarh, Bibinagar, Sanathnagar and Bhongir. f) Cash credit facilities from The Hongkong and Shangai Banking Corporation Limited carrying rate of interest 12.75% p.a. is repayable on demand and is secured by hypothecation of stocks and book debts and further secured by second pari-passu charge on all the fixed assets of the Company situated at Bahadurgarh, Bibinagar, Sanathnagar and Bhongir.
g) Short term secured loan from DBS Bank Limited amounting to Rs. 120.000 lacs (previous year Rs. Nil) carrying interest rate ranging from 10% to 10.35% p.a. is repayable by April 2013. h) Short term secured loan from Standard Chartered Bank amounting to Rs. 40.000 Millions (previous year Rs. Nil) carrying interest rate of 10.90% p.a. is repayable by June 2013. i) Short term secured loan from The Hongkong and Shanghai Banking Corporation Limited amounting to Rs. 50.000 Millions (previous year Rs. Nil) carrying interest rate of 9.85% p.a. is repayable by April 2013. j) Short term secured loan from The Hongkong and Shanghai Banking Corporation Limited amounting to Rs. 15.000 Millions (previous year Rs. Nil) carrying interest rate of 9.75% p.a. is repayable by June 2013. k) Short term unsecured commercial paper outstanding as at the year end Rs. 850.000 Millions (previous year Rs. 1600.000 Millions) is issued by way of earmarking of working capital limit with banks is repayable as under: - Commercial paper Rs. 350.000 Millions (discounted value Rs. 341.413 Millions) issued on 15 March 2013 discounted @ 10.20% p.a. repayable by June 2013 - Commercial paper Rs. 500.000 Millions (discounted value Rs. 488.555 Millions) issued on 14 January 2013 discounted @ 9.50% p.a. repayable by April 2013 l) Short term unsecured loan from HDFC Bank amounting to Rs. 500.000 Millions (previous year Rs. Nil) carrying interest rate of 9.95% p.a. is repayable by August 2013. m) Short term unsecured loan from Citi Bank amounting to Rs. 190.000 Millions (previous year Rs. Nil) carrying interest rate of 10.10% p.a. is repayable by February 2014. n) Short term unsecured loan from The Hongkong Shanghai Banking Corporation Limited amounting to Rs. 100.000 Millions (previous year Rs. Nil) carrying interest rate of 9.80% p.a. is repayable by July 2013. o) Short term unsecured loan from First Rand Bank amounting to Rs. 250.000 Millions (previous year Rs. Nil) carrying interest rate of 10.60% p.a. is repayable by June 2013. p) Short term unsecured loan from The Bank of Nova Scotia amounting to Rs. 330.000 Millions (previous year Rs. 50.000 Millions) carrying interest rate ranging from 9.75% p.a. to 11.75% p.a. is repayable by September 2013. q) Buyer’s credit unsecured facilities from IDBI Bank carrying rate of interest ranging between 1.53% - 2.29% p.a. are repayable within 6 months from the origination. |
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Walker, Chandiok and Company Chartered Accountants |
|
Address : |
21st Floor, DLF Square, Jacaranda Marg, Phase II, Gurgaon – 122002, Haryana, India |
|
Tel No.: |
91-124-4628000 |
|
Fax No.: |
91-124-4628001 |
|
Email : |
|
|
|
|
|
Internal Auditors : |
|
|
Name : |
DH Consultants Private Limited (Formerly Known as BDO Consulting Private Limited) |
|
|
|
|
Cost Auditors : |
|
|
Name : |
Narasimha Murthy and Company Cost Accountants |
|
|
|
|
Wholly owned
subsidiaries : |
· AGI Glasspack Limited (ceased to be subsidiary w.e.f. 25 March 2013) Hindware
Home Retail Private Limited HSIL
Associates Limited Garden
Polymers Private Limited Halis
International Limited, Mauritius Alchemy
International Cooperatief U.A.(subsidiary of Halis International Limited) Haas
International B.V.(subsidiary of Alchemy International Cooperatief U.A.) Barwood
Products Limited (subsidiary of Haas International B.V.) |
|
|
|
|
Entities where
significant influence is exercised by KMP and / or their relatives having
transactions with the Company : |
· Textool Mercantile Private Limited Paco
Exports Limited New
Delhi Industrial Promotors and Investors Limited Soma
Investments Limited Jugmug
Projects Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs. 2/- each |
Rs. 200.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
66050220 |
Equity Shares |
Rs. 2/- each |
Rs. 132.100
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
66046395 |
Equity Shares |
Rs. 2/- each |
Rs. 132.093
Millions |
|
|
Add : Forfeited
shares |
|
Rs. 0.004
Million |
|
|
Total |
|
Rs. 132.097 Millions |
Note:
Reconciliation of share outstanding at the beginning and at the end of
reporting year
|
Particulars |
31.03.2013 |
|
|
Number |
Rs. in millions |
|
|
Equity shares outstanding at the beginning of the year |
6,60,46,395 |
132.093 |
|
Add: Equity shares issued during the year |
-- |
-- |
|
Equity shares outstanding at the end of the year |
6,60,46,395 |
132.093 |
Terms and
rights attached to equity shares
The Company has only one class of equity shares having par value of Rs. 2 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. During the year ended 31 March 2013, the amount of per share dividend is recognised as distribution to equity shareholder as Rs. 3 per share (previous year Rs. 3 per share)
The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
List of
shareholders holding more than 5% of the equity share capital of the Company at
the beginning and at the end of the reporting year
|
Name of shareholders |
31.03.2013 |
|
|
No. of equity shares held |
% of holding |
|
|
Paco Exports Limited |
2,06,64,530 |
31.29 |
|
Soma Investments Limited |
40,00,000 |
6.06 |
|
New Delhi Industrial Promotors and Investors Limited |
36,50,000 |
5.53 |
|
T. Rowe Price International Discovery Fund |
35,96,728 |
5.45 |
The above information is furnished as per shareholder register as at the year end.
The above figure of subscribed and paid up capital includes application and allotment money received on forfeited shares amounting to Rs. 0.004 Million (originally amount paid up Rs. 0.004 Million).
LISTING DETAILS:
|
|
BSE : 500187 NSE : HSIL |
|
Stock Exchange Place : |
Ø National Stock
Exchange of India Limited Ø
The Stock Exchange, Mumbai |
|
Listed Date : |
31.05.2000 |
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 |
132.097 |
132.097 |
132.097 |
|
(b) Reserves & Surplus |
10759.670 |
10000.259 |
6879.551 |
|
(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) |
10891.767 |
10132.356 |
7011.648 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
5782.270 |
5334.664 |
2840.398 |
|
(b) Deferred tax liabilities (Net) |
1100.886 |
738.286 |
731.184 |
|
(c) Other long term liabilities |
139.761 |
126.246 |
117.823 |
|
(d) long-term provisions |
39.311 |
29.379 |
23.317 |
|
Total Non-current Liabilities (3) |
7062.228 |
6228.575 |
3712.722 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
3255.507 |
2321.309 |
512.529 |
|
(b) Trade payables |
1316.692 |
1062.597 |
828.393 |
|
(c) Other current
liabilities |
2691.830 |
2584.113 |
1543.328 |
|
(d) Short-term provisions |
250.285 |
276.457 |
221.934 |
|
Total Current Liabilities (4) |
7514.314 |
6244.476 |
3106.184 |
|
|
|
|
|
|
TOTAL |
25468.309 |
22605.407 |
13830.554 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
13817.610 |
10603.031 |
7779.684 |
|
(ii) Intangible Assets |
14.649 |
16.754 |
18.827 |
|
(iii) Capital
work-in-progress |
616.094 |
3329.514 |
295.346 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1970.693 |
1864.672 |
762.116 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
481.450 |
556.740 |
362.565 |
|
(e) Other Non-current assets |
15.501 |
54.131 |
53.584 |
|
Total Non-Current Assets |
16915.997 |
16424.842 |
9272.122 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
241.707 |
|
(b) Inventories |
3620.683 |
2732.753 |
2069.896 |
|
(c) Trade receivables |
3510.980 |
2247.122 |
1614.808 |
|
(d) Cash and cash
equivalents |
792.049 |
714.049 |
200.344 |
|
(e) Short-term loans and
advances |
615.768 |
475.796 |
427.658 |
|
(f) Other current assets |
12.832 |
10.845 |
4.019 |
|
Total Current Assets |
8552.312 |
6180.565 |
4558.432 |
|
|
|
|
|
|
TOTAL |
25468.309 |
22605.407 |
13830.554 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income from operations (net) |
15737.928 |
13393.311 |
10521.734 |
|
|
|
Other Income |
45.495 |
55.288 |
36.449 |
|
|
|
TOTAL (A) |
15783.423 |
13448.599 |
10558.183 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of raw materials consumed |
2849.630 |
2280.085 |
1750.059 |
|
|
|
Purchases of traded goods |
2252.497 |
2127.404 |
1585.594 |
|
|
|
Employee benefits expense |
1583.276 |
1401.779 |
1150.878 |
|
|
|
Other expenses |
7221.671 |
5386.099 |
4190.060 |
|
|
|
Exceptional items |
(236.630) |
0.000 |
0.000 |
|
|
|
Changes in stock of finished goods and work in progress |
(764.694) |
(329.554) |
(284.350) |
|
|
|
TOTAL (B) |
12905.750 |
10865.813 |
8392.241 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2877.673 |
2582.786 |
2165.942 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
639.416 |
389.121 |
356.327 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2238.257 |
2193.665 |
1809.615 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
850.778 |
567.028 |
534.981 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1387.479 |
1626.637 |
1274.634 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
396.255 |
525.647 |
401.114 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
991.224 |
1100.990 |
873.520 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
2752.596 |
2081.888 |
1500.270 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
200.000 |
100.000 |
|
|
|
|
231.813 |
198.082 |
165.116 |
|
|
|
Tax on Dividend |
|
32.200 |
26.786 |
|
|
BALANCE CARRIED
TO THE B/S |
3312.007 |
2752.596 |
2081.888 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of export of goods |
339.959 |
324.161 |
240.864 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and Components |
951.362 |
778.135 |
575.090 |
|
|
|
Spares |
129.967 |
102.303 |
144.909 |
|
|
|
Capital Goods |
302.283 |
1116.135 |
79.946 |
|
|
|
Goods purchased for resale |
605.253 |
691.201 |
510.716 |
|
|
TOTAL IMPORTS |
1988.865 |
2687.774 |
1310.661 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic and
diluted earnings per share before prior period item |
15.01 |
16.70 |
14.50 |
|
|
|
Basic and
diluted earnings per share after prior period item |
15.01 |
16.67 |
14.47 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.28
|
8.19
|
12.11
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.82
|
12.15
|
12.11
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.06
|
9.34
|
9.98
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.16
|
0.18
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.83
|
0.76
|
0.48
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.14
|
0.99
|
1.47
|
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 |
132.097 |
132.097 |
132.097 |
|
Reserves & Surplus |
6,879.551 |
10,000.259 |
10,759.670 |
|
Net
worth |
7,011.648 |
10,132.356 |
10,891.767 |
|
|
|
|
|
|
long-term borrowings |
2,840.398 |
5,334.664 |
5,782.270 |
|
Short term borrowings |
512.529 |
2,321.309 |
3,255.507 |
|
Total
borrowings |
3,352.927 |
7,655.973 |
9,037.777 |
|
Debt/Equity
ratio |
0.478 |
0.756 |
0.830 |
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 |
10,521.734 |
13,393.311 |
15,737.928 |
|
|
|
27.292 |
17.506 |
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 |
10,521.734 |
13,393.311 |
15,737.928 |
|
Profit |
873.520 |
1,100.990 |
991.224 |
|
|
8.30% |
8.22% |
6.30% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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 |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
------ |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10453514 |
21/08/2013 |
1,225,000,000.00 |
STANDARD CHARTERED BANK |
(ACTING AS AN SECURITY AGENT), NARAIN MANZIL, 23 BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA |
B86861911 |
|
2 |
10401730 |
24/01/2013 |
315,000,000.00 |
STANDARD CHARTERED BANK |
CREDIT DOCUMENTATION UNIT, NARAIN MANZIL, 23 BARA KHAMBA ROAD, NEW DELHI - 110001, INDIA |
B67549287 |
|
3 |
10397554 |
28/12/2012 |
210,000,000.00 |
DBS BANK LIMITED |
UPPER GROUND FLOOR,25,BARAKHAMBA ROAD, BIRLA TOWER, NEW DELHI - 110001, INDIA |
B66088899 |
|
4 |
10386805 |
19/07/2013 * |
500,000,000.00 |
DBS BANK LIMITED |
CAPITOL POINT, BABA
KHARAK SINGH MARG,, CONNAUGHT |
B81216723 |
|
5 |
10384915 |
31/10/2012 |
1,076,000,000.00 |
HSBC BANK (MAURITIUS) LIMITED |
6TH FLOOR, HSBC CENTRE, 18, CYBERCITY, EBENE, MAURITIUS, - NA, MAURITIUS |
B61536744 |
|
6 |
10321183 |
09/02/2012 * |
1,223,965,000.00 |
DBS BANK LIMITED |
ACTING ON BEHALF OF DBS BANK LIMITED, SINGAPORE, UGF, BIRLA TOWER, 25 BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA |
B33582081 |
|
7 |
10297830 |
29/06/2011 |
400,000,000.00 |
DBS BANK LIMITED |
UPPER GROUND FLOOR, BIRLA TOWER, 25, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA |
B17078403 |
|
8 |
10281788 |
19/08/2011 * |
360,000,000.00 |
STANDARD CHARTERED
BANK (ACTING AS AN SECURITY AGE |
CREDIT RISK
CONTROL, NARAIN MANZIL, 23 BARAKHAMBA |
B20662870 |
|
9 |
10248708 |
29/06/2011 * |
400,000,000.00 |
DBS BANK LIMITED |
UPPER GROUND FLOOR, BIRLA TOWER, 25, BARAKHAMBA ROAD, NEW DELHI - 110001, INDIA |
B17163692 |
|
10 |
10133023 |
20/03/2009 * |
800,000,000.00 |
HSBC BANK PLC |
SOUTH ASIAN BANKING LEVEL 37, 8, CANADA SQUARE, LONDON, - E145HQ, UNITED KINGDOM |
A59661900 |
|
11 |
10137282 |
08/08/2013 * |
5,700,000,000.00 |
CANARA BANK |
PCB, CANNAUGHT PLACE, WORLD TRADE TOWER, BARAKHAM BA LANE, NEW DELHI - 110001, INDIA |
B83626606 |
|
12 |
10129256 |
20/03/2009 * |
728,625,000.00 |
CITIBANK N.A. |
JEEVAN VIHAR, 3,
SANSAD MARG, NEW DELHI - |
A60101185 |
|
13 |
10123290 |
12/07/2011 * |
720,000,000.00 |
STANDARD CHARTERED
BANK (ACTING AS AN SECURITY AGE |
CREDIT RISK
CONTROL, NARAIN MANZIL, 23 BARAKHAMBA |
B17061938 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2013 (Rs. in
Millions) |
31.03.2012 (Rs. in
Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred payment liabilities |
507.554 |
468.062 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Buyer’s credit facilities from banks |
339.242 |
342.338 |
|
Short term loans from banks |
1370.000 |
50.000 |
|
Commercial papers |
850.000 |
1600.000 |
|
Total |
3066.796 |
2460.400 |
PERFORMANCE ANALYSIS
The Company’s revenues surged to Rs. 17099.541 Millions in 2012-13 from Rs. 14441.587 Millions in 2011-12, up 18.40%. EBITDA increased by 2.26%, to Rs. 2641.043 Millions from Rs. 2582.786 Millions in 2011-12. The Company experienced an improvement in cash profit to Rs. 2204.602 Millions in 2012-13 from Rs. 1675.120 Millions in 2011-12. However, profits dipped by 9.97% for the same period, plummeting to Rs. 991.224 Millions from Rs. 1100.990 Millions. The gross revenues from the container glass division rose to Rs. 9185.403 Millions in 2012-13 from Rs. 7884.227 Millions in 2011-12 , an increase of 16.50%. The gross revenues for the Building Products Division grew to Rs. 7884.363 Millions in 2012-13 by 20.84%, from Rs. 6524.665 Millions in the previous year.
The Company witnessed a marginal decline in PAT and EBITDA, owing to higher costs of raw material, logistics and fuel. The Company’s excellent operational efficiencies were key contributors for the overall reduction of impact on the margins.
BUSINESS DIVISION
REVIEW
Performance of the building products division Net sales for the building products division grew by 20.13% in 2012-13, driven by volume growth, better product mix and launch of several products under the luxury brand QUEO and hindware Italian collection.
MAJOR INITIATIVES
HSIL undertook several major initiatives during the year. In retrospect, some of these are discussed below.
Launched India’s first International Association of Plumbing and Mechanical Officials (IAPMO) certified star-rated water efficient closets in a wide range.
Commercialised QUEO during the year by launching an array of products under sanitaryware and faucets.
Launched QUEO Emporio in Gurgaon and Delhi to display complete range of QUEO.
Launched Hindware Arcade in Chennai to display brands hindware, Amore and Vents.
Introduced a new brand, Amore for range of wellness products.
Launched 3D Travertino HD tiles, having 3D structure and visual effect with high-definition quality.
Commissioned brownfield expansion adding 0.3 million pieces capacity at Bahadurgarh plant.
PERFORMANCE OF THE
CONTAINER GLASS DIVISION
Net sales for HSIL’s container glass division increased by 15.22% on account of commissioning of new furnace and adopting technologies to produce special coloured, chemical and lightweight bottles.
MAJOR INITIATIVES
Adopted special German technology and advanced machinery to manufacture special coloured bottles, a new product in the domestic market; the Company currently produces dead leaf, dark green and dark blue bottles
Increased chemical bottles manufacturing
Commenced producing lightweight wine bottles, which are import substitutes
SCHEME OF
AMALGAMATION
At the meeting held on 25 September 2012, the Company’s Board of Directors approved the proposal for the amalgamation of Garden Polymers Private Limited, the Company’s wholly owned subsidiary, with effect from 1 April 2012, the appointed date. The Scheme of Amalgamation, was approved by the Company’s Members at their meeting held on 1 March 2013 in terms of the Order dated 22 January 2013, of the Hon’ble High Court, Calcutta. The final order of the Hon’ble High Court, Calcutta, to the said Scheme of Amalgamation is awaited.
MANAGEMENT DISCUSSION
AND ANALYSIS
At HSIL, they believe transformation is crucial for long-term sustainability. The paradigms of performance and product excellence for both the Building Products Division and Container Glass Division are never the same. They change with customer aspirations, emerging technologies and new demands being created as lifestyles evolve. The natural consequence of such a scenario is consistent innovation in product design to explore new product lines and embrace opportunities on the horizon. It also means seeking new approaches of doing business and engaging better with customers. They try to anticipate socio-economic trends that alter lifestyles and attune their responses accordingly.
They have been transformational since inception. Their transformation is apparent in their conscious shift in the value chain from the basic segment to premium and super-premium and luxury segments, launch of new product lines and brands and above all, in their R&D capabilities. At HSIL, when the levers of innovation and transformation move, progression happens. Progression in brand recall, geographical penetration and stakeholder value creation.
THE BUILDING PRODUCTS
DIVISION
The Division has witnessed extensive transformation and innovation since the very early days. Interestingly, this
transformation was driven by a combination of external realities and an internal impulse to evolve.
HSIL provides an array of building products ranging from sanitaryware, wellness products and faucets to kitchen appliances and ceramic tiles. They are well equipped with superior technologies and provide finest quality products.
India’s burgeoning population and growing urbanisation have escalated the demand for building products. The country’s per capita income (in real terms), a gauge for measuring living standards have risen to Rs. 39,168 in 2012-13 from Rs. 38,037 in 2011-12. A strong appetite for better lifestyles and high disposable income has enhanced industry optimism.
SANITARYWARE
INDUSTRY STRUCTURE
AND DEVELOPMENTS
With evolving lifestyles, the role of sanitary products has gained significant prominence. India, home to the world’s second largest population, has only 40% sanitation coverage. This has influenced the spending structure on the basic amenities. The industry is pegged at Rs. 24000.000 Millions growing at 14-16% within which premium segment is growing faster at 20-25% per annum due to rapid urbanisation, improving living standard and rising awareness.
THE CONTAINER GLASS
DIVISION
The Division has also witnessed considerable transformation and innovation, driven by market demand, technological shifts and HSIL’s continuous focus to elevate performance to the next level.
Emerging markets are becoming growth centres for the global packaging glass industry. Led by changing demographics, increasing population and rising disposable income, these markets are rising as major consumer hubs of beverages, food, healthcare and pharmaceutical products.
HSIL, India’s second-largest container glass producer, commands a pan-India market share of 18%. It is the biggest player in South India’s container glass market with 62% share. They manufacture container glass under the brand AGI , catering to industries like soft drinks, pharmaceuticals, food, beer and liquor, among others.
CONTAINER GLASS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The global packaging industry is likely to reach US D 597 billion by 2014. India’s packaging industry, worth US D 14 billion, has been growing at 15% over the past few years. India’s container glass industry constitutes around 5.6% of the packaging industry valued at Rs. 44000.000 Millions and growing at the rate of 10-12% per annum.
The glass industry can be divided into four major segments, namely container glass, specialty glass, flat glass and fibreglass. Container glass is the second largest segment comprising glass packaging for consumer goods and pharmaceuticals.
Despite India’s low per capita glass consumption, the container glass industry is driven by rising hygienic packaging demand, burgeoning population and increasing per capita income of average Indian. The country’s per capita glass consumption for the year stood at 1.5 kg, compared to China’s 5.9 kg and USA ’s 27.5 kg Hence, there is immense scope for penetration.
BUILDING PRODUCTS
DIVISION
OPERATIONAL REVIEW
Capacity expansion
· Bahadurgarh brownfield expansion project (sanitaryware) of 0.3 million pieces has become operational from October 2012.
Work
is in progress for greenfield plant for faucets of 2.5 million pieces at
Kaharani, Bhiwadi extension, Bhiwadi, Rajasthan.
Product
launches
A
more wellness range
15
sanitaryware products
3D
tiles
16
kitchen appliances
New brand: Introduced Amore in the wellness range - a complete range of wellness bath collection - under brand hindware. They also commercialised their brand QUEO and launched F-series of luxury products under the sanitaryware segment.
Retail outlets: Launched Hindware Arcade, a 5,000 square feet retail outlet in Chennai, to display premium bath fittings and faucets from hindware, Amore and QUEO. They have also opened QUEO Emporio in Gurgaon.
Financial review,
2012-13
Gross revenue increased 21% to Rs. 7884.400 Millions from Rs. 6524.700 Millions
EBIT improved 11% to Rs. 1357.900 Millions from Rs. 1221.800 Millions
PBT increased 8% to Rs. 1229.500 Millions from Rs. 1136.200 Millions
CONTAINER GLASS
DIVISION
OPERATIONAL REVIEW
Capacity expansion: A new 475 TPD furnace was commissioned in May 2012 on the existing capacity of 1,125 TPD, resulting in more than 42% capacity increase.
Special coloured bottles: HSIL has adopted high-end, costeffective technology to emerge as India’s sole special coloured bottle producer. Currently, it produces bottles in several colours.
Chemical and light-weight bottles: Upgraded technology for manufacturing chemical and light-weight bottles.
Capacity utilisation: Achieved average capacity utilisation of 82%.
Product launches: Launched 67 new products during the year.
Financial review,
2012-13
Gross revenue increased 17% to Rs. 9185.400 Millions from Rs. 7884.200 Millions
EBIT declined 34% to Rs. 713.200 Millions from Rs. 1086.300 Millions
PBT declined 77% to Rs. 168.200 Millions from Rs. 722.400 Millions
FUTURE PLANS
Introduction of balance score card for performance evaluation linking strategy, business and results
Automation of HR processes to improve productivity, enhance efficiency and reduce human errors
Talent management for career progression of high performers, succession planning for key roles and talent pool creation for better business results
Knowledge management to identify, create, distribute and enable adoption of their insights and industry experiences
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
a) Demands
raised by the excise authorities against which appeals have been filed |
306.220 |
30.289 |
|
b) Demands made by
the sales tax authorities against which appeals have been filed |
14.804 |
24.459 |
|
c) Demands
raised by the income tax authorities against which appeals have been filed |
28.360 |
-- |
|
d) Duty availed on imports against EPCG licenses |
298.285 |
309.805 |
|
e) Bank guarantees outstanding |
252.475 |
310.096 |
|
f) Corporate guarantees (Barwood Products Limited, Hindware Home Retail Private Limited and Garden Polymers Private Limited) |
721.210 |
720.502 |
|
g) Claims against the Company not acknowledged as debts |
211.960 |
202.954 |
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE
MONTHS ENDED 31.12.2013
PART I
(Rs. In Millions)
|
SI. No. |
Particulars |
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
|
|
|
|
1 |
Income from Operations |
|
|
|
|
|
Gross Sales |
3890.400 |
4103.100 |
11878.800 |
|
|
Less: Excise duty |
277.500 |
288.900 |
883.500 |
|
|
(a) Net Sales/ Income from operations |
3612.900 |
3814.200 |
10995.300 |
|
|
(b) Other operating income |
52.600 |
62.200 |
179.300 |
|
|
Total Income from operations (net) |
3665.500 |
3876.400 |
11174.600 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
671.600 |
689.300 |
2101.300 |
|
|
b) Purchases of stock-in-trade |
818.700 |
732.500 |
2030.300 |
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(522.600) |
(337.700) |
(1156.800) |
|
|
d) Employee benefits expense |
415.600 |
391.200 |
1193.500 |
|
6 |
e) Depreciation and amortisation expense |
244.200 |
233.400 |
695.100 |
|
|
f) Power & fuel |
867.900 |
991.000 |
2902.700 |
|
|
g) Other expenses |
806.100 |
867.300 |
2488.500 |
|
|
Total expenses |
3301.500 |
3567.000 |
10254.600 |
|
3 |
Profit from operations before other income, finance costs and exceptional items (1-2) |
364.000 |
309.400 |
920.000 |
|
4 |
Other income |
5.500 |
9.500 |
27.600 |
|
5 |
Profit from ordinary activities before finance costs and exceptional items (3+4) |
369.500 |
318.900 |
947.600 |
|
6 |
Finance costs |
179.300 |
163.300 |
495.100 |
|
7 |
Profit from ordinary activities after finance costs but before exceptional items (5-6) |
190.200 |
155.600 |
452.500 |
|
8 |
Exceptional items |
-- |
-- |
-- |
|
9 |
Profit from ordinary activities before tax [7+8] |
190.200 |
155.600 |
452.500 |
|
10 |
Tax expense |
|
|
|
|
|
-Current tax |
86.600 |
72.000 |
210.600 |
|
|
-Deferred tax |
(14.300) |
(7.700) |
(26.500) |
|
|
-MAT credit adjustment |
-- |
-- |
-- |
|
11 |
Net profit from ordinary activities after tax [9-10] |
117.900 |
91.300 |
268.400 |
|
12 |
Extraordinary items (net of tax expenses Rs. Nil) |
-- |
-- |
-- |
|
13 |
Net profit for the period [11-12| |
117.900 |
91.300 |
268.400 |
|
17 |
Operating profit (EBIDTA) |
613.700 |
552.300 |
1642.700 |
|
18 |
Paid up equity share capital (Shares of Rs.2/- each) |
132.100 |
132.100 |
132.100 |
|
19 |
Reserves excluding business reconstruction reserve |
|
|
|
|
20 i |
Earning per sharefbefore extraordinary items) |
|
|
|
|
|
(of Rs. 2/- each) {not annualized) |
|
|
|
|
|
(a) Basic (Rs.) |
1.79 |
1.38 |
4.06 |
|
|
(bj Diluted (Rs.) |
1.79 |
1.38 |
4.06 |
|
20 ii |
Earning per share(after extraordinary items) |
|
|
|
|
|
(of Rs.2/- each) (not annualized) |
|
|
|
|
|
(a) Basic (Rs.) |
1.79 |
1.38 |
4.06 |
|
|
(b) Diluted (Rs.) |
1.79 |
1.38 |
4.06 |
|
|
|
|
|
|
|
|
|
|
||
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
- Number of Shares |
31984146 |
31984146 |
31984146 |
|
|
- Percentage of Shareholding |
48.43 |
48.43 |
48.43 |
|
2 |
Promoters and promoters group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of shares |
Nil |
Nil |
Nil |
|
|
-Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
Nil |
Nil |
Nil |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
Nil |
Nil |
Nil |
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of shares |
34062249 |
34062249 |
34062249 |
|
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
100 |
|
|
- Percentage of shares (as a % of the total share capital of the company) |
51.57 |
51.57 |
51.57 |
|
B |
Investor Complaints
(Nos.) |
3 months ended 31.012.2013 |
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
14 |
|
|
Disposed of during the quarter |
14 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
SL No. |
Particulars |
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
1 |
Segment Revenue: a) Building Products b) Container Glass c) Others Less: Inter Segment Revenue Net sales/Income
from operations |
2133.400 1531.100 1.000 3665.500 -- 3665.500 |
2298.400 1571.600 6.400 3876.400 -- 3876.400 |
6098.500 5061.700 14.400 1174.600 -- 1174.600 |
|
2 |
Segment Results:
Profit<+>/ Loss(-) (before tax and interest) a) Building Products b) Container Glass c) Others Total profit before unallocable expenditure Add: Exceptional items Less: Finance costs Less: Unallocable expenditure. Net of unallocable income Total Profit before
tax |
425.700 16.100 (1.400) 440.400 -- 179.300 -- 70.900 190.200 |
459.300 (86.800) 3.900 376.400 -- 163.300 -- 57.500 155.600 |
1204.500 (86.500) 7.100 1125.100 -- 495.100 -- 177.500 452.500 |
|
3 |
Capital Employed: a) Building Products b) Container Glass c) Others d) Unallocable |
8479.800 12670.300 81.800 2631.300 23863.200 |
8286.200 12258.300 90.800 2430.600 23065.900 |
8479.800 12670.300 81.800 2631.300 23863.200 |
Notes:
The above financial results of the Company have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on January 31, 2014 and have also been reviewed by the Statutory auditors of the Company.
Tax expense for the quarter/nine months period ended is made on the annual
effective income tax rate based on estimated income.
The scheme of Amalgamation('Scheme')involving merger of Garden Polymers Private
Limited (a wholly owned subsidiary) with the Company, is pending for receipt of
final approval from Hon'ble High Court, Calcutta.
Previous year's/period's figures have been re-grouped /re-arranged, wherever
considered necessary.
FIXED ASSETS
v
Tangible
Assets
Land
Freehold
Leasehold
Land
Building
Plant
and Machinery
Vehicles
Office
Equipments
Computers
(including software)
Furniture
and Fixtures
Leasehold
Improvements
v
Intangible Assets
Trade
Marks
Technical
Know How
PRESS RELEASE
HINDWARE
TILES AWARDED GRIHA CERTIFICATION; A FIRST IN ITS CATEGORY
Apr 17th 2013
Market leader brand Hindware from the house of HSIL Limited, added another feather to its cap. Innovating constantly to ensure a better life and a better world, Hindware tiles has been awarded GRIHA (Green Rating for Integrated Habitat Assessment) certification. It is a first, in the tiles category in the market.
GRIHA is a green building evaluation system that has been conceived by TERI and developed jointly with the Ministry of New and Renewable Energy, Government of India. It is a rating tool that helps people assess the performance of their building against certain nationally acceptable benchmarks by evaluating the environmental performance of a building holistically over its entire life cycle, thereby providing a definitive standard for what constitutes a ‘green building’.
GRIHA has included Hindware’s Portinari range made in Brazil and Europe, the Lavigare range (digital), Multi-charge range, Stain Free Soluble Salt range, TechGranit Full Body Vitrified tiles, Exterio range and HD Digital Ceramic Wall range under the GRIHA Criterion 17 and SVAGRIHA Criterion 12. This accomplishment asserts the fact that Hindware tiles are environmentally sustainable products and meet the GRIHA parameters to support the cause of green buildings. These products can be used in the GRIHA and SVAGRIHA registered projects as they meet the GRIHA and SVAGRIHA norms as well by consumers adopting a green cause.
Mr. Rajesh Khanna, Head – Tiles, HSIL Limited, said, “We at Hindware recognize our role to reduce the consumption of natural resources, vital to sustain life. Thus it is a proud moment for us to receive the GRIHA certification. This national recognition is an affirmation of our efforts to recycle, re-use and lessen the environmental pollution at every stage of tile manufacturing and be at par with the requirements of a green building. Hindware has always taken the lead in manufacturing and developing products that are not only superior in quality but also adhere to environmental norms, added, Mr. Khanna.
HSIL REPORTS STRONG
GROWTH IN Q3 2013 -14
Financial Results for Q3, FY’14
Gross sales for the quarter stands at INR 3890.400 millions
Total turnover (Net sales and other operating income) INR 3665.500 millions
Profit Before Tax (PBT) stands at INR 190.200 millions
Net Profit After Tax (PAT) stands at INR 117.900 millions
New Delhi, January 31, 2014: HSIL Limited, India’s leading Sanitaryware Company and second largest in Container Glass today announced the results for the third quarter and nine months of FY 2013-14. YOY Sales has declined by 9.35% for Q3 and grew by 3.63% for 9 months ended 31.12.2013.
The company registered a total turnover (Net Sales and other Operating Income) of INR 3665.500 millions and net Profit After Tax (PAT) of INR 117.900 millions
The cumulative sales for the first three quarters of the year (April-December’13) stand at:
Gross Sales grew 3.63% from Rs 11462.200 millions to Rs 11878.800 millions for the nine months ended December 31st 2013.
Operating profit (EBITDA) decreased by 10.71% from INR 1839.800 millions to INR 1642.700 millions.
Building Products Division Revenue witnessed significant growth of 15.90% from INR 5261.900 millions to INR 6098.500 millions
Container Glass Division Revenue decreased by 6.28% from INR 5400.900 millions to INR 5061.700 millions.
Mr. Sandip Somany, Jt. Managing Director, HSIL, said "We are pleased to share our performance for Q3 FY 2013 – 14. While our Building Products Division demonstrated a significant growth our Container Glass division is picking up momentum and we expect better results in Q4. He further added, in this challenging environment, we will continue to focus on improving margins through better product mix, costs rationalization & improvement in plant efficiencies. The market potential in tier II and III cities holds great opportunities and strengthening our distribution channel will continue. The civil work on the greenfield faucet plant in Kaharani, Distt. Bhiwadi, Rajasthan is in progress & the plant is expected to be commissioned soon, which will be an added boost for the overall growth of the company’.
FINANCIALS AT A
GLANCE (STANDALONE)
|
|
|
|
|
|
|
Rs. In Millions |
|
|
Q3 ending on |
Nine Months ending on |
||||
|
|
31.12.2013 |
31.12.2012 |
Growth % |
31.12.2013 |
31.12.2012 |
Growth % |
|
Gross Sales |
3890.400 |
4291.700 |
-9.4% |
11878.800 |
11462.200 |
3.6% |
|
Net Sales |
3612.900 |
3932.400 |
-8.1% |
10995.300 |
10555.900 |
4.2% |
|
EBITDA |
613.700 |
577.400 |
6.3% |
1642.700 |
1839.800 |
-10.7% |
|
PBT |
190.200 |
181.000 |
5.1% |
452.500 |
750.400 |
-39.7% |
|
Net Profit |
117.900 |
122.600 |
-3.8% |
268.400 |
510.100 |
-47.4% |
|
Building Products Division Revenue |
2133.400 |
1840.000 |
15.9% |
6098.500 |
5261.900 |
15.9% |
|
Container Glass Division Revenue |
1531.100 |
2103.200 |
-27.2% |
5061.700 |
5400.900 |
-6.3% |
HINDWARE HOME RETAIL
TO INVEST RS. 3000.000 MILLIONS BY FY15
Home and interior decor firm Hindware Home Retail Ltd, a subsidiary of HSIL, will invest up to Rs. 3000.000 millions by fiscal year 2014-15 to increase its footprint across the country.
Parent firm HSIL makes sanitary products under brand 'Hindware'.
"We will invest up to Rs. 300 by next financial year to increase our footprint. We will open company owned and operated mega stores and franchised stores as well," Hindware Home Retail COO Ajay Seth told PTI.
The company, which sells its product under brand 'Evok', plans to open another 8-10 mega stores (spread over more than 10,000 square feet) and is targeting a turnover of Rs. 2000.000 millions in FY15.
The company reported turnover of Rs. 800.000 millions in last fiscal year.
At present, Hindware Home Retail has 18 mega stores and its main business includes living solutions, modular kitchens and wardrobes and entertainment solutions.
In order to push sales from its modular kitchen vertical, the company would open 50 stores in the next three years through franchise models.
"We are expanding through franchise model to increase our overall footprint in the market. We will open 50 stores in the next three years spread across the country. Modular kitchen industry is not organised but it has huge growth potential. We intend to capture this market," Mr Seth said.
Modular Kitchen and Wardrobes vertical contributes about 25 per cent to the total turnover of the company.
"Once we open 50 stores for Modular Kitchen vertical, we expect contribution of kitchen business to increase to 40 per cent of total turnover," he added.
The company is also looking at beginning production at its parent's company plant in Bahadurgarh in Haryana to replace local sourcing with in-house manufacturing.
At present, Hindware Home Retails sources 70 per cent of its products from domestic companies and rest imports from Europe.
The company is also looking at expanding its business verticals and enter into office solutions segment, Mr Seth said.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist organization
or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction registered
against subject: None
5] on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.90 |
|
|
1 |
Rs.103.26 |
|
Euro |
1 |
Rs.85.13 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LIdNES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
68 |
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.