MIRA
INFORM REPORT
|
Report Date : |
13.03.2014 |
IDENTIFICATION DETAILS
|
Name : |
3M INDIA LIMITED (w.e.f. December,
2002) |
|
|
|
|
Formerly Known
As : |
BIRLA 3M LIMITED ISC |
|
|
|
|
Registered
Office : |
Plot No.48-51, Electronics City, Hosur Road, Bangalore – 560 100,
Karnataka |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
04.07.1987 |
|
|
|
|
Com. Reg. No.: |
08-013543 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.112.651 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31300KA1987PLC013543 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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|
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|
Line of Business
: |
Subject engaged in manufacturing of, and trading in,
a wide variety of products catering to the industrial and transportation, healthcare,
safety, security and protection services business, consumer and office,
display and graphics segments. |
|
|
|
|
No. of Employees
: |
1791 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (70) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 26257000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Exist |
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|
|
Comments : |
Subject is a subsidiary of 3M Company, USA. It is a well-established
company having fine track record. The rating reflects healthy financial risk profile supported by 3M
India’s diverse and expanding product range, extensive and varied customer
profile and strong product innovation and technological capabilities. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
State-run banks hired nearly 300000
personnel including more than 94000 officers in the last four years, according
to the Indian Banks Association. A study by trade lobby Assocham in September
2013 indicated that banks would need 800000 people in the next six years. It
estimated that state-run lenders alone would hire 50000 people in 2013/14.
The Competition Commission of
India plans to issue final orders within a broad time-frame of one year in
matters where it decides to carry out detailed investigations. The number of
complaints received by the watchdog which keeps tabs on unfair trade practices
in the marketplace.
The government has detected
custom tax evasion totaling around Rs 37920 mn in 14 states until December.
Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs
8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.
Connaught Place in New Delhi
slipped four notches to become the world’s eighth most expensive office locations.
London’s West End is the world’s most expensive office market.
There are 4.072 mn number of
high value spenders under the scanner of the income tax department. The income
tax department has information that they have made cash deposits announcing to
Rs 1 mn or more in their savings bank accounts in the current financial year.
It plans to check potential evasion before the closing of the financial year on
March 31.
Estimated pharmaceutical sales
in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago.
The life sciences and health care industry is up against challenges such as
quality management, says a recent Deloitte report.
The gross non-performing assets
of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months
of the financial year. In absolute terms, the 40 listed banks added Rs 3386
crore to their gross NPAs in nine months with the State Bank of India leading
with the State Bank of India leading with an accretion of Rs 16610 crore.
The inflow of smuggled gold
doubled in 2013 following restrictions to curb the supply from official
channels to contain the current account deficit. China surpassed India in the
demand for gold for the first time in 2013 due to liberalization of gold
trading norms by its local governments.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Non-Convertible Debenture Programme: AAA |
|
Rating Explanation |
High degree of safety and carry lowest credit risk. |
|
Date |
December 24, 2012 |
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
(Tel. No.: 91-80-66595999/ 22231414)
LOCATIONS
|
Registered Office/ Factory 1/ Innovation Lab 1 : |
Plot No.48-51, Electronics City, Hosur Road, Bangalore – 560 100,
Karnataka, India |
|
Tel. No.: |
91-80-28520203/ 28520142/ 22231414/ 66595999 |
|
Fax No.: |
91-80-28520576/ 22231450/ 28520157 |
|
E-Mail : |
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|
Website : |
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Corporate Office/ Postal Address : |
Concorde Block, UB City, 24, Vittal Mallya Road, Bangalore
– 560 001, Karnataka, India |
|
Tel No.: |
91-80-22231414/ 66595759 |
|
Fax No.: |
91-80-22231450 |
|
|
|
|
Factory 2: |
Plot No.8, Moraiya Industrial Area, Off Sarkhej Bawla Highway, Moraiya, Taluka Sanand, Ahmedabad – 382 213,Gujarat, India |
|
Tel. No.: |
91-79-30465100 |
|
|
|
|
Factory 3: |
Plot No.B-20, MIDC, Ranjangaon Industrial Area, Taluka Shirur, District Pune – 412 201, Maharashtra, India. |
|
Tel. No.: |
91-2138-329999/ 663726 |
|
|
|
|
Innovation Lab 2 : |
60-61, Udyog Vihar, Phase IV, Gurgaon (NCR) – 122 001, Haryana, India |
|
Tel. No.: |
91-124-3854100 |
|
Fax No.: |
91-124-3854101 |
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|
|
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Branch Office : |
Located at: · Gurgaon · Mumbai · Chennai · Kolkata · Pune |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. D. J. Balaji Rao |
|
Designation : |
Chairman, Non-Executive and Independent Director |
|
Qualification : |
B. E in Mechanical Engineering |
|
DIN No.: |
00025254 |
|
|
|
|
Name : |
Mr. B. S. Iyer |
|
Designation : |
Non-Executive and Independent Director |
|
Qualification : |
Graduate |
|
DIN No.: |
00138425 |
|
|
|
|
Name : |
Mr. B. C. Prabhakar |
|
Designation : |
Non-Executive and Independent Director |
|
DIN No.: |
00040052 |
|
|
|
|
Name : |
Mr. Albert C. Wang (from March 12, 2012) |
|
Designation : |
Non-Executive Director |
|
DIN No.: |
05234667 |
|
|
|
|
Name : |
Mr. Frank R. Little |
|
Designation : |
Non-Executive Director (From October 26, 2012) |
|
DIN No.: |
06395992 |
|
|
|
|
Name : |
Mr. John R. Houle |
|
Designation : |
Non-Executive Director (From October 26, 2012) |
|
DIN No.: |
06395986 |
|
|
|
|
Name : |
Mr. Ajay Nanavati |
|
Designation : |
Managing Director |
|
Qualification : |
Bachelor Degree in Chemical Engineering |
|
DIN No.: |
02370729 |
|
|
|
|
Name : |
Mr. B. V. Shankaranarayana Rao |
|
Designation : |
Whole-time Director |
|
DIN No.: |
00044840 |
|
|
|
|
Name : |
Mrs. Sadhana Kaul |
|
Designation : |
Whole Time Director |
|
DIN No.: |
02589934 |
|
|
|
|
Name : |
Mr. R. Vijay Kumar |
|
Designation : |
Whole-time Director (upto October 26, 2012) |
|
Din No.: |
05108452 |
KEY EXECUTIVES
|
Name : |
Mr. V. Srinivasan |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. Zinan Wadood |
|
Designation : |
Chief Financial Officer (From October 1, 2012) |
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|
|
|
Audit Committee : |
Mr. B. S. Iyer – Chairman Mr. D. J. Balaji Rao – Member Mr. B. C. Prabhakar – Member |
|
|
|
|
Shareholders’/ Investors’ Grievance Committee: |
Mr. D. J. Balaji Rao – Chairman Mr. B. S. Iyer – Member Mr. B. C. Prabhakar – Member Mr. Ajay Nanavati – Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
|
|
|
|
8448802 |
75.00 |
|
|
8448802 |
75.00 |
|
Total
shareholding of Promoter and Promoter Group (A) |
8448802 |
75.00 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
425072 |
3.77 |
|
|
432 |
0.00 |
|
|
60 |
0.00 |
|
|
1047384 |
9.30 |
|
|
1472948 |
13.08 |
|
|
|
|
|
|
305107 |
2.71 |
|
|
|
|
|
|
898996 |
7.98 |
|
|
101478 |
0.90 |
|
|
37739 |
0.34 |
|
|
511 |
0.00 |
|
|
36671 |
0.33 |
|
|
557 |
0.00 |
|
|
1343320 |
11.92 |
|
Total
Public shareholding (B) |
2816268 |
25.00 |
|
Total
(A)+(B) |
11265070 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
11265070 |
0.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal
share capital up to Rs.0.100 million
BUSINESS DETAILS
|
Line of Business : |
Subject engaged in manufacturing of, and trading in,
a wide variety of products catering to the industrial and transportation, healthcare, safety,
security and protection services business, consumer and office, display and
graphics segments. |
||||||||
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|
|
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|
Products : |
·
Injection Moulding
Tape ·
Adhesives (milling,
Compounding) ·
Coating ·
Screen Printing ·
Solvent Extraction ·
Telecom Connectors ·
Injection Moulding ·
Electro Mechanical
Assembly ·
Fiber Optic Assembly
Injection Moulding |
PRODUCTION STATUS (AS ON 31.03.2011):
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Self Adhesive Labels |
Nos. |
NA |
187500000 |
92203692 |
|
Fusion bonded epoxy coating |
Kgs. |
NA |
18000000 |
3872212 |
|
Paper and Paper Tapes |
Nos. |
NA |
NA |
31036291 |
|
Paint Polishes |
Nos. |
NA |
NA |
6482550 |
|
Abrasives |
Nos. |
NA |
NA |
125458278 |
Notes:
i) Installed capacity is as certified by the Management and relied upon by the auditors without verification as this is a technical matter.
ii) Represents installed capacities on three shifts basis.
iii) Includes products which are non standard having various sizes and measurement.
iv)The installed capacity represents annual capacity based on the maximum utilisation of Plant and Machinery.
v) Installed capacity includes capacity at third party processing/contract manufacturing locations.
vi) Figures in brackets relate to the previous period.
GENERAL INFORMATION
|
No. of Employees : |
1791 (Approximately) |
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|
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Bankers : |
· BNP Paribas · Canara Bank · Citibank N.A. · Deutsche Bank AG · HDFC Bank Limited · ICICI Bank Limited · JPMorgan Chase Bank, N.A. · State Bank of India ·
The Hongkong and Shanghai Banking Corporation
Limited |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewes Chartered Accountants |
|
Address : |
5th Floor, Tower “D”, The Millenia, 1 and 2 Murphy Road, Ulsoor,
Bangalore – 560 008, Karnataka, India |
|
|
|
|
Holding Company : |
3M Company, USA |
|
|
|
|
Fellow Subsidiaries : |
·
3M Gulf Limited ·
3M United Kingdom PLC ·
3M Electro and Communication India Private
Limited ·
3M Philippines ·
3M Indonesia Limited ·
3M Canada Company ·
3M Innovation (SG) Singapore ·
3M Apac Rdc Pte Limited ·
Sumitomo 3M Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11265070 |
Equity Shares |
Rs.10/- each |
Rs.112.651 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11265070 |
Equity Shares |
Rs.10/- each |
Rs.112.651
millions |
|
|
|
|
|
Notes:
a) Reconciliation of
the number of shares outstanding:
|
Particulars |
As at 31.03.2013 |
|
|
No.
of Shares |
Amount
(Rs.
in Millions) |
|
|
Equity Shares |
|
|
|
Shares outstanding at the beginning of the year |
11265070 |
112.651 |
|
Shares issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares
outstanding at the end of the year |
11265070 |
112.651 |
b) Rights,
preferences and restrictions attached to shares
The Company has only one class
of shares referred to as equity shares having a par value of Rs.10 per share.
Each holder of equity shares is entitled to one vote per share. In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company after distribution of all preferential
amounts, in proportion to their shareholding.
c) Shares held by
Holding Company
|
Particulars |
As at 31.03.2013 |
|
|
No.
of Shares |
Amount
(Rs.
in Millions) |
|
|
|
|
|
|
3M Company, USA |
8448802 |
84.488 |
d) Shares held by
each shareholder holding more than 5 per cent shares
|
Particulars |
As at 31.03.2013 |
|
|
No.
of Shares held |
%
of Holding |
|
|
|
|
|
|
3M Company, USA, the Holding Company |
8448802 |
75.00% |
In order to comply with 25%
Minimum Public Shareholding as mandated by Securities and Exchange Board of
India (SEBI), 3M Company, USA, promoter of the Company sold 113,198 shares through
Offer for Sale (OFS) method through Stock Exchanges on March 21, 2013,
accordingly the percentage of shareholding is reduced from 76% to 75%.
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 |
112.651 |
112.651 |
112.651 |
|
(b) Reserves & Surplus |
6451.713 |
5929.060 |
5281.343 |
|
(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) |
6564.364 |
6041.711 |
5393.994 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
76.913 |
91.983 |
99.551 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
128.645 |
110.679 |
104.740 |
|
Total Non-current
Liabilities (3) |
205.558 |
202.662 |
204.291 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
1604.043 |
611.896 |
0.000 |
|
(b)
Trade payables |
1279.667 |
1450.823
|
1209.325
|
|
(c)
Other current liabilities |
969.572 |
902.625
|
699.655
|
|
(d) Short-term
provisions |
4.098 |
3.810
|
3.209
|
|
Total Current
Liabilities (4) |
3857.380 |
2969.154 |
1912.189 |
|
|
|
|
|
|
TOTAL |
10627.302 |
9213.527 |
7510.474 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
2939.842 |
2838.528 |
1611.577 |
|
(ii)
Intangible Assets |
55.707 |
60.207 |
41.627 |
|
(iii)
Capital work-in-progress |
1208.496 |
208.014 |
942.020 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
90.647 |
44.048 |
63.993 |
|
(d) Long-term Loan and Advances |
222.680 |
408.782 |
236.797 |
|
(e) Other
Non-current assets |
40.978 |
7.881 |
0.000 |
|
Total Non-Current
Assets |
4558.350 |
3567.460 |
2896.014 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
2252.110 |
2137.166
|
1589.261
|
|
(c)
Trade receivables |
2663.718 |
2331.137
|
1967.463
|
|
(d) Cash
and cash equivalents |
595.834 |
538.898
|
506.835
|
|
(e)
Short-term loans and advances |
557.290 |
638.866 |
550.901 |
|
(f)
Other current assets |
0.000 |
0.000 |
0.000 |
|
Total
Current Assets |
6068.952 |
5646.067 |
4614.460 |
|
|
|
|
|
|
TOTAL |
10627.302 |
9213.527 |
7510.474 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue
from Operations (Net) |
15741.312 |
14051.007 |
11914.093 |
|
|
|
Other Income |
105.034 |
52.674 |
109.996 |
|
|
|
TOTAL (A) |
15846.346 |
14103.681 |
12024.089 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
6166.173 |
5135.592 |
4108.488 |
|
|
|
Purchases of stock-in-trade |
3813.460 |
4138.905 |
3110.199 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
(40.678) |
(597.497) |
(274.355) |
|
|
|
Employee Benefits Expense |
2128.217 |
1856.627 |
1490.718 |
|
|
|
Other Expenses |
2569.058 |
2306.830 |
1926.733 |
|
|
|
TOTAL (B) |
14636.230 |
12840.457 |
10361.783 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1210.116 |
1263.224 |
1662.306 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
95.135 |
31.805 |
8.002 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1114.981 |
1231.419 |
1654.304 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
363.000 |
270.313 |
173.657 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
751.981 |
961.106 |
1480.647 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
229.328 |
313.389 |
492.575 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
522.653 |
647.717 |
988.072 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
5830.845 |
5183.128 |
4195.056 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
6353.498 |
5830.845 |
5183.128 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods |
231.991 |
221.046 |
282.194 |
|
|
|
Freight and insurance on exports |
4.547 |
4.701 |
8.686 |
|
|
|
Contract Research |
172.545 |
141.092 |
73.886 |
|
|
|
Re-charge of Other Services |
44.448 |
69.644 |
63.648 |
|
|
TOTAL EARNINGS |
453.531 |
436.483 |
428.414 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2926.953 |
2480.267 |
1804.382 |
|
|
|
Traded Goods |
3962.556 |
3707.305 |
2667.911 |
|
|
|
Stores & Spares |
6.790 |
6.898 |
5.270 |
|
|
|
Capital Goods |
320.373 |
6.948 |
244.623 |
|
|
TOTAL IMPORTS |
7216.672 |
6201.418 |
4722.186 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
46.40 |
57.50 |
87.71 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.30 |
4.59 |
8.22 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.78 |
6.84 |
12.43 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.06 |
10.73 |
22.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.16 |
0.27 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.26 |
0.12 |
0.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.57 |
1.90 |
2.41 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
112.651 |
112.651 |
112.651 |
|
Reserves & Surplus |
5281.343 |
5929.060 |
6451.713 |
|
Net worth |
5393.994 |
6041.711 |
6564.364 |
|
|
|
|
|
|
long-term borrowings |
99.551 |
91.983 |
76.913 |
|
Short term borrowings |
0.000 |
611.896 |
1604.043 |
|
Total borrowings |
99.551 |
703.879 |
1680.956 |
|
Debt/Equity ratio |
0.018 |
0.117 |
0.256 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations
(Net) |
11914.093 |
14051.007 |
15741.312 |
|
|
|
17.936 |
12.030 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations
(Net) |
11914.093 |
14051.007 |
15741.312 |
|
Profit |
988.072 |
647.717 |
522.653 |
|
|
8.29% |
4.61% |
3.32% |
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
LITIGATION
DETAILS:
HIGH COURT OF
KARNATAKA-BANGALORE BENCH
MISC. CVL
22905/2009
Petitioner/ Appnt. Name: The Commissioner of Income Tax
Respondent/ Defnt. Name: 3M India Limited
Petnr./ Appnt. Advocate: M.V. Seshchala
Date Filed: 14.12.2009
District: Bangalore City
Stage: Pending for Admission
Lower Court Details [Appeal from below case.]
Case No.: ITA 1412/2006
Court Name: HC Bangalore
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number
(SRN) |
|
1 |
90200246 |
22/09/1999 * |
5,000,000.00 |
STATE BANK OF INDIA |
ELECTONIC CITY BRANCH, BLOCK;
1 KSSIDC COMPLEX, BANGLORE, KARNATAKA - 561229, INDIA |
- |
* Date of charge modification
|
Unsecured Loans |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
SHORT-TERM BORROWINGS |
|
|
|
Term Loan from Bank (Term Loan from Bank is
repayable after one year from the date of drawing along with the interest of
9% to 9.5% p.a.) |
344.078 |
0.000 |
|
Working Capital Loans
repayable on demand from banks |
1259.965 |
611.896 |
|
Total
|
1604.043 |
611.896 |
GENERAL INFORMATION:
The Company is the
subsidiary of 3M Company, USA. The Company markets several products in India in
health care; industrial markets; display and graphics; consumer and office;
safety, security and protection services; and transportation. In India, the
Company has manufacturing facilities at Ahmedabad, Bangalore, Pune and has a
R&D Centre in Bangalore.
The Company manages its
operations in five operating business segments: Industrial and Transportation Business;
Health Care Business; Display and Graphics Business; Consumer and Office
Business and Safety, Security and Protection Services Business. 3M India’s five
business segments bring together common or related 3M technologies that enhance
the development of innovative products and services and provide efficient
sharing of business resources. The Company is a public limited Company and is
listed on the Bombay Stock Exchange Limited (BSE) and the National Stock
Exchange Limited (NSE).
COMPANY PERFORMANCE:
The Company registered an
overall turnover growth of 12% at Rs.15846.300 millions for the financial year
ended March 31, 2013 compared to Rs.14103.700 millions in the previous year.
The operating margin for the current year was at 7.64% compared to 8.96% for
the last year. Net Profit before Tax was at Rs.752.000 millions compared to
Rs.961.100 millions for the previous year. Net profit after taxation was at
Rs.522.700 millions compared to Rs.647.700 millions for the previous year.
Higher input costs combined with interest, depreciation of the rupee against
all currencies and accelerated investments impacted their profit after tax.
Export Sales was at
Rs.220.500 millions for the year ended March 31, 2013 compared to Rs.224.800
millions in the previous year.
The Industrial and
Transportation business grew by 11.66%; Health Care business grew by 21.13%:
Display and Graphics business grew by 18.66%; Consumer and Office business grew
by 17.71% and Safety, Security and Protection Services business de-grew by 3.05%.
The EPS (Basic and Diluted)
of the Company for the year 2012-13 was Rs.46.40 per share as compared to
Rs.57.50 per share in the previous year 2011-12.
RECOGNITION OF NEW R&D CENTER IN BANGALORE:
On July 20, 2012, The
Department of Scientific and Industrial Research (DSIR), Government of India
has recognized the Company’s in-House R&D Unit at Bangalore and on February
7, 2013, approval under section 35(2AB) of the Income Tax Act, 1961 was
obtained from DSIR for availing the weighted deduction under Income Tax Act.
REDUCTION IN PROMOTER’S SHAREHOLDING IN THE COMPANY:
In order to comply with
Minimum Public Shareholding of 25% as mandated by Securities and Exchange Board
of India (SEBI), 3M Company, USA, promoter of the Company sold 113,198 shares through
Offer for Sale(OFS) method through Stock Exchanges on March 21, 2013 and
brought down its stake from 76% to 75%.
CHANGE IN BUSINESS SEGMENTS
Consistent with 3M’s global
strategy of building relevance and presence in the marketplace, the Company will
also align resources and management towards a new revised structure comprised
of five business groups: Consumer; Industrial; Health Care; Safety and
Graphics; and Energy which will align with 3M Global structures.
Presently the Company’s
operating results were managed on the basis of its existing segment structures
viz., Industrial and Transportation, Health Care, Display and Graphics,
Consumer and Office and Safety, Security and Protection Services through April
1, 2012 to March 31, 2013, with the intention that results be managed under the
new alignment once it is fully effective from April 1, 2013 onwards.
AWARDS AND RECOGNITION:
- The Healthcare Division
won the prestigious QCI-DL Shah National Award for Healthcare Services, awarded
by the Quality Council of India (QCI) in the ‘Quality Control in Hospital
Sterilization’ category for its significant contribution towards Infection
prevention, enabling speedy recovery and positive patient outcomes at reduced
healthcare costs.
- The Electronic City (EC)
Plant won second place at the State Level Safety awards announced at the
National Safety Day celebrations, organized by the Department of Factories,
Boilers, Industrial Safety and Health.
- The EC plant won second
Prize for 5S Excellence from the Confederation of Indian Industry (CII) in the
Manufacturing Category (Medium Scale).
- TESCO presented their
Home Care Division with their ‘Winning Together’ award for supply chain
excellence which helped TESCO register a growth of 49% (year-on-year) in Home
Care products for the period Jan-Dec 2012.
- The Company won the MMOG
Certification (Materials Management and Operations Guideline) and the Ford Q1
Award, a Global Recognition from Ford for World Class Quality Standards. The
MMOG certification is given by the US Automotive
Industry Action Group and
recognizes their automotive best practices.
- The Company’s work
towards establishing the highest quality stand was recognized by General Motors
India for Supplier
Quality Excellence in 2012.
The EC plant consistently supplied on time in full with "Zero DPPM"
(defective parts per million) to General Motors for 12 consecutive months.
- The Company’s products -
CHG Hand Rub Bottle and Scotch-Brite Kitchen Towels- won the Indiastar 2012
award for excellence in packaging design. Both products have now received
recognition at the Asia Regional level by winning the Asia Star Awards for
Packaging.
- The Healthcare division
was declared ‘The Wound Management Company of the Year’ by renowned research
company, Frost and Sullivan at their 4th Annual India Healthcare Excellence
Awards after being selected and evaluated on the basis of various criteria
ranging from revenue generation and market share to technological innovation
and clinical excellence, among others. The efforts undertaken by the division
in training the nursing fraternity that has in turn considerably raised the
standards of care in wound management, has been instrumental in helping the
company earn this recognition.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
PROFILE:
Subject is a subsidiary of
3M Company, USA and is a diversified technology company with a global presence
in the following businesses: Industrial and Transportation; Health Care;
Consumer and Office; Safety, Security and Protection Services; and Display and
Graphics. It is among the leading manufacturers of products for many of the
markets it serves. Most of its products involve expertise in product
development, manufacturing and marketing, and are subject to competition from
products manufactured and sold by other technologically oriented companies. In
India, the company has manufacturing facilities at Ahmedabad, Bangalore, Pune
and has a R&D Centre in Bangalore. As at March 31, 2013, the Company
employed 1,791 people.
For the year 2012-13, the
Company managed its operations in five operating business segments: Industrial
and Transportation; Health Care; Display and Graphics; Consumer and Office and
Safety, Security and Protection Services. 3M India’s five business segments
bring together common or related 3M technologies that enhance the development
of innovative products and services and provide efficient sharing of business
resources. These segments have worldwide responsibility for virtually all 3M
product lines.
3M products are sold through
numerous distribution channels, including directly to users and through
numerous wholesalers, retailers, converters, distributors and dealers in a wide
variety of trades in many countries around the world. The Management of the
Company believes that the confidence of wholesalers, retailers, converters,
distributors and dealers in 3M and its products – a confidence developed
through long association with skilled marketing and sales representatives has
contributed significantly to 3M India's growth and its position in the
marketplace.
Consistent with 3M’s global
strategy of building relevance and presence in the marketplace, the Company
will also align resources and management towards a new revised structure
comprised of five business groups: Consumer; Industrial; Health Care; Safety
and Graphics; and Energy from April 1, 2013 which will align with 3M Global
structures.
GLOBAL ECONOMIC OVERVIEW:
Global prospects have
improved but the road to recovery in the advanced economies will remain rough.
World output growth is forecast to reach 3Ľ percent in 2013 and 4 percent in
2014. In the major advanced economies, activity is expected to gradually
accelerate, following a weak start to 2013, with the United States in the lead.
In emerging market and developing economies, activity has already picked up
steam. Advanced economy policymakers have successfully defused two of the
biggest threats to the global recovery, a breakup of the euro area and a sharp
fiscal contraction in the United States caused by a plunge off the “fiscal
cliff.”
In the short term, risks
mainly relate to developments in the euro area, including uncertainty about the
fallout from events in Cyprus and politics in Italy as well as vulnerabilities
in the periphery. In the medium term, the key risks relate to adjustment
fatigue, insufficient institutional reform, and prolonged stagnation in the
euro area as well as high fiscal deficits and debt in the United States and
Japan. In advanced economies, the right macroeconomic approach continues to be
gradual but sustained fiscal adjustment, built on measures that limit damage to
activity and accommodative monetary policy aimed at supporting internal demand.
The euro area needs to strengthen the Economic and Monetary Union (EMU). In
emerging market and developing economies, some tightening of policies appears
appropriate in the medium term.
INDIA ECONOMIC OVERVIEW:
Slowdown in Indian economy
has to be seen in the context of slowing global economic growth from 3.9% in 2011
to 3.2% in 2012. While India's recent slowdown is partly rooted in external
causes, domestic causes are also important.
However, the boost to
consumption, coupled with supply-side constraints, led to higher inflation.
Monetary policy was tightened, even as external headwinds to growth increased.
Falling savings without a commensurate fall in aggregate investment have led to
a widening current account deficit (CAD). Wholesale price index (WPI) inflation
has been coming down in recent months. The food inflation, after a brief
slowdown, continues to be higher than overall inflation. Given the higher
weightage to food in consumer price indices (CPI), CPI inflation has remained
close to double digits. Another consequence of the slowdown has been lower-than-targeted
tax and non-tax revenues. With the subsidies bill, particularly that of
petroleum products, increasing, the danger that fiscal targets would be
breached substantially became very real in the current year. The situation
warranted steps to reduce government spending so as to contain inflation. Also
required were steps to facilitate corporate and infrastructure investment so as
to ease supply. Several measures announced in recent months are aimed at
restoring the fiscal health of the government and shrinking the CAD as also
improving the growth rate.
The need of the situation
is that, India, now will have to revive growth, and that growth has to provide
more jobs for the many millions who will join the labor force, even while
reducing poverty. Second, India needs to shift from consumption to investment,
i.e., increase their savings especially government savings and household
financial savings, even as they also increase corporate and infrastructure
investment. Third, India needs macroeconomic stabilization i.e., to bring down
inflation, the fiscal deficit and the current account deficit.
The World Economic Outlook
predicts Growth will rise in India to 5 ľ percent in 2013 as a result of
improved external demand and recently implemented pro-growth measures.
Significant structural challenges will likely lower potential output over the
medium term and also keep inflation elevated by regional standards.
INDIAN INDUSTRY’S PERFORMANCE:
After recovering to a
growth of 9.2% in 2009-10 and 2010-11, growth of value added in industrial
sector, comprising manufacturing, mining, electricity and construction sectors,
slowed to 3.5% in 2011-12 and to 3.1% in the current year. The manufacturing
sector, the most dominant sector within industry, also witnessed a decline in
growth to 2.7% in 2011-12 and 1.9% in 2012-13 compared to 11.3% and 9.7% in
2009-10 and 2010-11, respectively. The growth in electricity sector in 2012-13
has also moderated. The growth of the mining sector in 2012-13 is estimated at
0.4%, though it showed an improvement over a negative growth of 0.63% recorded
in 2011-12. With improved business sentiments and investor perception and a
partial rebound in industrial activity in other developing countries,
industrial growth is expected to improve in the next financial year.
RESULTS OF THE OPERATIONS OF THE COMPANY:
The Company registered an
overall turnover growth of 12% at Rs.15846.300 millions for the financial year
ended March 31, 2013 compared to Rs.14103.700 millions in the previous year.
The operating margin for the current year was at 7.64% compared to 8.96% for
the last year. Net Profit before Tax was at Rs.752.000 millions compared to
Rs.961.100 millions for the previous year. Net profit after taxation was at
Rs.522.700 millions compared to Rs.647.700 millions for the previous year.
Higher input costs, combined with depreciation of the rupee against all
currencies (as compared to March 31, 2012 rates of all currencies) at
Rs.468.300 millions, interest costs at Rs.95.100 millions and accelerated investments
impacted their profit after tax. Export Sales was at Rs.220.500 millions
compared to Rs.224.800 millions.
Other Operating Income:
The other income was at
Rs.105.000 millions for the year 2012-13 when compared to Rs.52.700 millions
for the previous year 2011-12.
SEGMENT WISE PERFORMANCE:
The Industrial and
Transportation business grew by 11.66%; Health Care business grew by 21.13%:
Display and Graphics business grew by 18.66%; Consumer and Office business grew
by 17.71% and Safety, Security and Protection Services business de-grew by
3.05%.
INDUSTRIAL AND TRANSPORTATION BUSINESS:
The
Industrial and Transportation Business Segment serves a broad range of markets,
such as general industry, appliances, paper and packaging, food and beverage,
electronics, automotive Original Equipment Manufacturer (OEM), automotive
aftermarket (auto repair shops, Service shops, auto care and retail) to name a
few. Their Industrial and Transportation business has products that include
tapes, a wide variety of coated and non-woven abrasives, adhesives, specialty
materials, compounds and polishes , components and products that are used in
the manufacture, repair and maintenance of automotive, marine, aircraft and
specialty vehicles. Major products under this segment include vinyl, polyester,
foil and specialty industrial tapes and adhesives: Scotch® Masking Tape,
Scotch® Filament Tape and Scotch® Packaging Tape; Functional and Decorative
Graphics; Abrasion-Resistant Films, Masking Tapes and Other Specialty Materials
under 3M , Scotch , Meguair and Bondo Brand . The newest foray is in service
business thru 3M Car Care Centers.
Financial
Highlights
|
Particulars |
12
Months Ended 31.03.2013 (Rs.
in Millions) |
12
Months Ended 31.03.2012 (Rs.
in Millions) |
|
Segment
Revenue |
7717.901 |
6912.011 |
|
Profit
before Interest and Tax |
550.794 |
571.741 |
|
Capital
Employed |
3913.360 |
2941.560 |
Highlights
• Slow down in Industrial
growth in the country and in manufacturing, specifically slowest growth in Auto
sector in the past one decade had an impact of reducing the growth rate of the
business.
• Devaluation of the Indian
rupee vis-a -vis foreign currencies like the US Dollar and Euro had the effect
of increasing the cost of imported raw material and finished goods. While the
business responded with aggressive price increases, the whole impact of cost
increase was not neutralized.
• The success of the 3M Car
Care Center initiative helped in enhancing visibility for the 3M brand and
opened up a potentially new high growth business opportunity.
HEALTH CARE BUSINESS:
Their
Health Care business segment serves markets that include large multi-specialty
hospitals and small clinics, dental and orthodontic practitioners, processed food
manufacturers and pharmaceutical companies. Their offerings include medical and
surgical supplies, medical devices, skin and wound care and infection
prevention products and solutions, drug delivery systems, dental and
orthodontic products and food safety products.
Financial
Highlights
|
Particulars |
12
Months Ended 31.03.2013 (Rs.
in Millions) |
12
Months Ended 31.03.2012 (Rs.
in Millions) |
|
Segment
Revenue |
2214.786 |
1828.391 |
|
Profit
before Interest and Tax |
115.095 |
111.769 |
|
Capital
Employed |
722.065 |
465.090 |
Highlights
• The Healthcare Business
received many awards including the Prestigious DL Shah National Award from
Quality Council of India in March 2013. The Award recognizes 3M Healthcare’s
success in "Taming Infection through Quality Control in Hospital
Sterilization”. 3M Healthcare was also awarded “Wound Management Company of the
Year” in the Frost and Sullivan 4th Annual Health Excellence awards
in 2012.
• A Healthcare
Manufacturing facility is being set up in Ranjangaon with a capability to
manufacture expanded range of medical products.
• 3M Healthcare continued
focus on strong customer relationships and launched a number of customer
education initiatives. Several new products were launched which created
significant impact in the market and ensured continued leadership.
• State-of-the-art lingual
orthodontics system (Incognito TM) was launched in India further enhancing
their brand image in this business.
• Food Safety business has
made breakthroughs in several major accounts in the Diary, Beverage and other
Food processing Industry.
SAFETY, SECURITY AND PROTECTION SERVICES
BUSINESS:
Safety,
Security and Protection Services business segment serves a broad range of
markets that increase the safety, security and protection of workers,
facilities and systems. Major product offerings include personal protection
products, brand and asset protection solutions, border control products,
passive fire protection products for industries and commercial establishments,
track and trace products, cleaning and hygiene products for the hospitality
industry.
Financial
Highlights
|
Particulars |
12
Months Ended 31.03.2013 (Rs.
in Millions) |
12
Months Ended 31.03.2012 (Rs.
in Millions) |
|
Segment
Revenue |
1940.729 |
2001.790 |
|
Profit
before Interest and Tax |
30.901 |
125.906 |
|
Capital
Employed |
1144.290 |
1113.374 |
Highlights
• Increasing trend in
adoption of Safety and Security practices by organization saw increase in interest
and demand for personal protection, brand and asset protection, border control,
and passive fire protection products.
• Growth in IT, ITES and
Hospitality Sector has ensured good demand for cleaning and hygiene products.
• Considerable efforts have
gone in to develop business with their innovative products in new segments like
Water Authority, Hospitals, Railways and Defense sector. They foresee sizeable
business in coming years.
• Business Growth from
Infrastructure, Oil and Gas Pipeline sector has been modest because of delays.
CONSUMER AND OFFICE BUSINESS:
The
company focused on increasing its franchise with the retail consumers, by
increasing the availability of its products across more geographies, as well as
with new product introductions. There was continued brand investment in Home
Care business for the Scotch-Brite® brand and increased spends on TV, as well
as in digital space. Targeting the student market for the Scotch® range of
Tapes and Adhesives, based on ‘Dikhao Apna Magic’ to foster creativity amongst
schools students was very well received. The extension of brand Scotchgard®, in
providing protection for furnishings and upholstery into new metros was a
success.
Financial
Highlights
|
Particulars |
12
Months Ended 31.03.2013 (Rs.
in Millions) |
12
Months Ended 31.03.2012 (Rs.
in Millions) |
|
Segment
Revenue |
1442.707 |
1225.696 |
|
Profit
before Interest and Tax |
(54.456) |
(39.605) |
|
Capital
Employed |
442.568 |
279.460 |
Highlights
• With activation programs
across Modern Trade Chains, the Scotch-Brite® brand has been able to gain high
category share and has successfully been able to gain leadership in the
Household cleaning tools market of - Utensil care, Floor Care, Wiping and other
handled tools.
• This was supported with
above the line marketing campaigns during the course of the year, to establish
the brand in Floor and handled tools category across channels.
• Integrated Marketing
Campaign on Trendy Wipes, with a contest of ‘Design Your Own Wipe’ received a
great response across the key metro markets.
• The Post-it® brand, with
the repositionable notes is now being adopted by the students, who find this as
a great organizational tool, as well as a handy study tool.
• The unique color
changing, Purple Glue stick from the Scotch® portfolio has become a leader in
its category, with the student’s community.
• Along with the
Do-it-yourself cans from Scotchgard®, the extension of services of protecting
the upholstery in the home market, is gaining good acceptance.
• Manufacturing facility is
being set up at Ranjangaon to manufacture many products.
DISPLAY AND GRAPHICS BUSINESS:
Display
and Graphics Business is an amalgamation of four divisional subsets- the
Traffic Safety Systems Division (TSSD), the Commercial Graphics Division (CGD),
the Architectural Markets Division (AMD) and the Mobile Interactive Solutions
Division (MISD). TSSD offers a host of road safety services and motor vehicle
safety solutions. The offerings include retro reflective traffic signs for
highways and cities, pavement marking and vehicle registration products and
services. CGD portfolio includes products like films, inks and digital signage
products which help create static and dynamic graphics for retail signs,
buildings, vehicles, commercial-space exteriors and interiors as also a
multi-segment brand-owner focus service offering. AMD offers wall and glass
cladding products coupled with architectural interior services and
environmental graphics for home and office spaces. MISD caters to the
electronic displays market addressing the needs for projection systems,
computer and ATM-screen privacy filters and brightness enhancement films for
television, avionics and automotive displays.
Financial
Highlights
|
Particulars |
12
Months Ended 31.03.2013 (Rs.
in Millions) |
12
Months Ended 31.03.2012 (Rs.
in Millions) |
|
Segment
Revenue |
2196.042 |
1850.752 |
|
Profit
before Interest and Tax |
66.282 |
133.760 |
|
Capital
Employed |
403.275 |
426.177 |
Highlights
• The Traffic Safety
Systems (TSS) Division successfully completed several turnkey traffic signage
projects like for Large Infrastructure Projects like Jaypee’s Yamuna Expressway
and L & T’s Highway Projects in Gujarat.
• TSS has established a Leading
position in the Conspicuity Tapes Market for Vehicle Market – both OEM and
After-Market.
• Commercial Graphics
Division has executed: a Turnkey Interior Graphics program for Axis Bank
Branches covering 1400 Branches and 7500 ATMs; a brand identity change program
for MaxLife Insurance in over 135 Branches and; a BTL visibility campaign for
Shell across 7500 Dealer Outlets.
• Commercial Graphics
Division has bagged an order for Exterior Signage and Interior Graphics and
related branding work for over 100 Dealerships of Ashok Leyland Heavy Vehicles.
• Commercial Graphics
Division has also started rolling out a Digital Menu Board Network for Domino’s
Pizza and Dunkn Donuts covering more than 75 outlets.
• The Architectural Markets
(AMD) Division has built a solid channel foundation with a network of Pan-India
Distributors and their products have found applications in the IT/ITES space.
The following are some of
the risk mitigation plants by the Company:
• Currency volatility -
continue to drive localization and aggressively adjust prices to off-set.
• Cost escalation - use
Lean Six Sigma projects for cost reduction.
• Productivity - optimize
deployment of resources to maximize coverage and penetration.
• Success of new product
launches - continue the existing disciplined New Product Introduction (NPI)
gate process to filter programs.
• Timely new plant
start-ups - pro-actively allocate appropriate technical resources to ensure no
delays.
• Sustained industry slowdown
- continue strong cost controls and manage resources effectively.
OUTLOOK:
Most countries are facing
challenges in growth and unemployment as still global economy is in an
uncertain phase. They expect India’s projected GDP for 2013-14 to grow better
than 2012-13 as the recent policy initiatives / reforms by the Government
should help to boost sentiment /investment climate. Reviving demand, increase
industrial production, improving power generation and fast track infrastructure
projects will be the major challenges for the Indian economy. Increased per
capita income, increased liquid fund in market, higher discretionary spending,
growing aspirations of the Indian middle class, growth of retail credit are the
other key drivers of the economy this year.
The Company expects the
sales growth and related incremental income, in addition to expected
productivity improvements, selling price increases in excess of raw material,
inflation, and other benefits, should help offset the items that will
negatively impact earnings. This expected sales growth and related incremental
operating income is considered after taking into account factors such as; price
increase initiatives, increase in productivity, sustained investments in
Infrastructure by the State and Central Governments with more focus on urban
transportation, major highway projects and focus on health care etc.,. The
Company will continue to focus on its localization efforts, innovative R&D,
development of new customer segments and expansion of current market segments
to secure competitive growth.
STATEMENT OF STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED SEPTEMBER 30, 2013
(Rs. in Millions)
|
SI No |
Particulars |
3 Months ended 30.09.2013 (Unaudited) |
3 Months ended 30.06.2013 (Unaudited) |
6 Months ended 30.09.2013 (Unaudited) |
|
|
PART-I |
|
|
|
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net Sales/income from operations (net of excise duty) |
4464.492 |
4134.631 |
8599.123 |
|
|
(b) Other Operating Income |
81.892 |
79.082 |
160.974 |
|
|
Total Income from
operations (net) |
4546.384 |
4213.713 |
8760.097 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
1584.300 |
1440.747 |
3025.047 |
|
|
b) Purchases of stock-in-trade |
1161.924 |
1245.685 |
2407.609 |
|
|
c) Changes in inventories of finished goods, work-in-progress and stock-in-trade |
215.648 |
(138.652) |
76.996 |
|
|
d) Employee benefits expense |
619.045 |
615.522 |
1234.567 |
|
|
e) Depreciation and amortisation expense |
120.638 |
102.643 |
223.281 |
|
|
f) Other expenses |
803.393 |
754.505 |
1557.898 |
|
|
Total expenses |
4504.948 |
4020.450 |
8525.398 |
|
3 |
Profits from
Operations before Other Income, Finance costs and Exceptional Items (1-2) |
41.436 |
193.263 |
234.699 |
|
4 |
Other Income |
7.745 |
14.651 |
22.396 |
|
5 |
Profit from ordinary
activities before Finance Costs and Exceptional items (3+4) |
49.181 |
207.914 |
257.095 |
|
6 |
Finance Costs |
36.450 |
30.398 |
66.848 |
|
7 |
Profit from
ordinary activities after Finance Costs but before Exceptional items (5-6) |
12.731 |
177.516 |
190.247 |
|
8 |
Exceptional items |
-- |
-- |
-- |
|
9 |
Profit from
Ordinary Activities before tax (7+8) |
12.731 |
177.516 |
190.247 |
|
10 |
Tax Expenses |
|
|
|
|
|
a) Current Tax |
(70.185) |
109.501 |
39.316 |
|
|
b) Deferred Tax |
67.273 |
(57.902) |
9.371 |
|
|
Total (a+b) |
(2.912) |
51.599 |
48.687 |
|
11 |
Net Profit from
Ordinary Activities after tax (9-10) |
15.643 |
125.917 |
141.560 |
|
12 |
Extraordinary items (Net of tax expense) |
-- |
-- |
-- |
|
13 |
Net Profit for the period
(11-12) |
15.643 |
125.917 |
141.560 |
|
14 |
Share of profit/(loss) of associates |
-- |
-- |
-- |
|
15 |
Minority interest |
-- |
-- |
-- |
|
16 |
Net Profit after
taxes, minority interest and share of profit/(loss) of associates(13-14-15) |
15.643 |
125.917 |
141.560 |
|
17 |
Paid up Equity Share Capital (Face Value of Share Rs.10/- each) |
112.651 |
112.651 |
112.651 |
|
18 |
Reserves Excluding Revaluation Reserves as per Balance Sheet of previous accounting year |
|
|
|
|
19.i |
Earnings Per Share (before extraordinary items) (of Rs.10/- each) (not annualised) |
|
|
|
|
|
a) Basic |
1.39 |
11.18 |
12.57 |
|
|
b) Diluted |
1.39 |
11.18 |
12.57 |
|
19. ii |
Earnings Per Share (after extraordinary items) (of Rs.10/- each) (not annualised) |
|
|
|
|
|
a) Basic |
1.39 |
11.18 |
12.57 |
|
|
b) Diluted |
1.39 |
11.18 |
12.57 |
|
|
|
|
|
|
|
|
PART - II |
|
|
|
|
|
A - PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of Shares |
2816268 |
2816268 |
2816268 |
|
|
- Percentage of Shareholding |
25.00% |
25.00% |
25.00% |
|
2 |
Promoters and
Promoter 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) |
-- |
-- |
-- |
|
|
- Percentage of Shares (as a % of the total share capital of the company) |
-- |
-- |
-- |
|
|
b) Non-encumbered |
|
|
|
|
|
- Number of Shares |
8448802 |
8448802 |
8448802 |
|
|
- Percentage of Shares (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
100.00% |
|
|
- Percentage of Shares (as a % of the total share capital of the company) |
75.00% |
75.00% |
75.00% |
|
|
B - INVESTORS
COMPLAINTS |
3 Months ended 30.09.2013 |
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
8 |
|
|
Disposed of during the quarter |
8 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1.
The
Results for the quarter ended September 30, 2013 have been subjected to Limited
Review by Statutory Auditors of the Company.
2.
The
above Financial Results were reviewed by the Audit Committee in its meeting
held on October 31, 2013 and approved by the Board of Directors of the Company
at its meeting held on that date.
3.
The
Company during the quarter received orders from Assistant Commissioner of Sales
Tax, Mumbai under the Maharashtra Value Added Tax Act, 2002 and Central Sales
Tax Act, 1956 for the years 2005-06 and 2008-09 demanding differential tax,
interest and penalty of Rs.488.387 millions contending the applicable rate of
tax for various products and matters pertaining to declaration forms. The
Company based on legal opinion received, has filed appeal against the orders
and accordingly no liability has been recognised in the books.
4.
Segments
have been identified in line with the Accounting Standard on Segment Reporting
(AS-17) taking into account the organisation structure as well as the
differential risks and returns of these segments.
5.
Segment
revenue, results and capital employed figures include the respective amounts
identifiable to each of the segments. Other unallocable income net off
unallocable expenditure are towards common services to the segments which are
not directly identifiable to the individual segments as well as those at a
corporate level which relate to the Company as a whole.
6.
With
effect from April 1, 2013, the Company internally aligned its operating
divisions to new segments viz., Industrial, Health Care, Safety and Graphics,
Consumer and Energy from its old segments viz., Industrial and Transportation
Business, Health Care Business, Safety, Security and Protection Services
Business, Consumer and Office Business, Display and Graphics Business.
Accordingly, segment reporting for current quarter and corresponding previous
periods are presented as per new segments.
7.
Corresponding
previous quarters'/years' figures are regrouped wherever necessary.
FIXED ASSETS:
· Land
· Buildings
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Data Processing Equipment
· Leasehold Improvements
· Goodwill
· Computer Software
· Land-Leasehold
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.09 |
|
|
1 |
Rs.101.59 |
|
Euro |
1 |
Rs.84.65 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
70 |
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.