MIRA
INFORM REPORT
|
Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
KDDL LIMITED |
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Registered
Office : |
Plot No. 3, Sector – III, Parwanoo – 173220, Himachal Pradesh |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
08.01.1981 |
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Com. Reg. No.: |
06-008123 |
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Capital Investment
/ Paid-up Capital : |
Rs. 91.239 Millions |
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CIN No.: [Company Identification
No.] |
L33302HP1981PLC008123 |
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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
: |
Manufacturer of Watch and Its Components. |
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No. of Employees
: |
1000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (34) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 1800000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. Company has incurred loss from its operation in the year 2013. However, trade relation are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
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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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects
positive impact of the election cycle.
India’s economy may grow
4.7 % in the current financial year, lower than the official estimate of 4.9 %,
Fitch Rating said. The global rating agency expects the economy to pick up in
the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and January
of 2013/14 which has seen some signs of recovery according to a Care Ratings
report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in
the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating: “BB+” |
|
Rating Explanation |
Inadequate credit quality and high credit
risk. |
|
Date |
17.09.2013 |
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Rating Agency Name |
CRISIL |
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Rating |
Short term rating: “A4+” |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
17.09.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Om Prakash Sani |
|
Designation : |
Accounts Manager |
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Contact No.: |
91-172-2548223 |
|
Date : |
16.05.2014 |
LOCATIONS
|
Registered Office/ Factory 1 : |
Plot No. 3, Sector – III, Parwanoo – 173220, Himachal Pradesh,
India |
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Tel. No.: |
91-172-2548223 / 24 / 27 |
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Fax No.: |
91-172-2548302 |
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E-Mail : |
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Corporate Office : |
Kamla Centre, S.C.O. 88-89, Sector 8-C, Madhya Marg, Chandigarh – 160 009, India |
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Factory 2: |
Haibatpur Road, Saddomajra, Derabassi – 140 507, Punjab, India |
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Factory 3: |
Plot No. 17, HSIIDC, Industrial Area, Alipur, Barwala – 134 118, Haryana, India |
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Hands Unit 1: |
Plot No. 296-297, 5th Main, IV Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India |
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Hands Unit 2: |
408, 2nd Floor, 4th Main, 11th Cross, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India |
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Assembly Units 1: |
Windsmoor Complex, Plot No. 2, Sector 2, Parwanoo – 173 220, Himachal Pradesh, India |
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Assembly Units 2: |
Village Dhana, Bagbania, P.O. Manpura, Tehsil Baddi, District Solan – 173 205, India |
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Packaging Unit: |
Plot No. 25/1, Industrial Area, Phase – II, Chandigarh – 160 002, India |
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Precision Stamping
Unit (Eigen): |
408, 4th Main, 11th Cross, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India |
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E-Commerce
Division: |
Shop No. 204 to 206, Square One Shopping Complex, District Centre, Saket Place, Saket, New Delhi – 110 065, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Rajendra Kumar Saboo |
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Designation : |
Chairman |
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Name : |
Mr. Yashovardhan Saboo |
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Designation : |
Vice Chairman and Chief Executive Officer |
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Name : |
Mr. Dinesh Agrawal |
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Designation : |
Chief Operating Officer |
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Name : |
Dr. T. N. Kapoor |
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Designation : |
Director |
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Name : |
Mr. Chandra Mohan |
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Designation : |
Director |
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Name : |
Mr. Jagesh Khaitan |
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Designation : |
Director |
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Name : |
Mr. Anil Khanna |
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Designation : |
Director |
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Name : |
Mr. Marc Bernhardt |
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Designation : |
Director |
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Name : |
Mr. Mannil Venugopalan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Pawan Kumar Goyal |
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Designation : |
Company Secretary and Compliance Officer |
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Name : |
Mr. Sanjeev Kumar Masown |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding
as a % of Total No. of Shares |
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|
As a % of (A+B) |
|
(A) Shareholding of
Promoter and Promoter Group |
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|
4776981 |
52.86 |
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|
16001 |
0.18 |
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|
4792982 |
53.04 |
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Total shareholding
of Promoter and Promoter Group (A) |
4792982 |
53.04 |
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(B) Public
Shareholding |
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|
2900 |
0.03 |
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|
50 |
0.00 |
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|
100951 |
1.12 |
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|
103901 |
1.15 |
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|
1880625 |
20.81 |
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|
1048387 |
11.60 |
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|
848765 |
9.39 |
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|
362060 |
4.01 |
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|
54556 |
0.60 |
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|
257018 |
2.84 |
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|
50000 |
0.55 |
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|
486 |
0.01 |
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|
4139837 |
45.81 |
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Total Public
shareholding (B) |
4243738 |
46.96 |
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Total (A)+(B) |
9036720 |
100.00 |
|
(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 |
|
Total (A)+(B)+(C) |
9036720 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Watch and Its Components. |
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Exports : |
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Products : |
·
Finished goods |
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Countries : |
·
China ·
Hong Kong ·
Switzerland ·
Germany ·
USA ·
France |
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Imports : |
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Products : |
·
Raw Material |
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Countries : |
·
Switzerland ·
Hong Kong |
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Terms : |
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Selling : |
L/C, Credit |
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Purchasing : |
L/C, Credit |
GENERAL INFORMATION
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No. of Employees : |
1000 (Approximately) |
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Bankers : |
· Bank of India, Sector – 17, Chandigarh, India · Corporation Bank, Sector – 08, Chandigarh, India · IDBI Bank Limited, Sector – 17, Chandigarh, India |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Messrs Walker, Chandiok and Company Chartered Accountants |
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Address : |
L-41, Connaught Circus, New Delhi – 110 001, India |
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Subsidiary
companies: |
· Pylania S.A. · Kamla International Holding AG · Ethos Limited · Mahen Distribution Limited |
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Associates: |
· Kamla Tesio Dials Limited |
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Joint venture: |
· Satva Jewellery and Design Limited |
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Entities over which
significant influence is exercised by the company /key management personnel: |
· Saboo Coatings Limited · Dream Digital Technology Limited · VBL Innovations Private Limited · Vardhan Properties and Investments Limited · Vardhan International Limited · Kamla Devi Saboo Charitable Trust · M.K. Saboo Charitable Trust · Saveeka Family Trust |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
12480000 |
Equity Shares |
Rs.10/- each |
Rs. 124.800 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9036720 |
Equity Shares |
Rs.10/- each |
Rs. 90.367
Millions |
|
174280 |
Equity shares of |
Rs. 10 each,
Rs. 5 paid up |
Rs. 0.871
Million |
|
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Total |
|
Rs. 91.239 Millions |
Reconciliation of
equity share capital
|
|
As on 31.03.2013 |
|
|
|
Numbers |
Rs. In Millions |
|
Equity share capital
of Rs. 10 each fully paid up |
|
|
|
Balance at the beginning of the year |
8836620 |
88.266 |
|
Add: Shares issued pursuant to conversion of zero coupon convertible warrants |
200100 |
2.001 |
|
Balance at the end
of the year |
9036720 |
90.367 |
There is no movement in equity share capital of Rs. 10 each, Rs. 5 paid up during the current and previous year.
Shareholders holding
more than 5% of equity share capital
|
|
As on 31.03.2013 |
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|
Numbers |
Rs. In Millions |
|
R. K. Saboo |
2054560 |
20.546 |
|
Y. Saboo |
1472448 |
14.725 |
|
U. Saboo* |
-- |
-- |
|
|
3527008 |
35.270 |
Persuant to the increase in paid up share capital of the Company during the year ended 31 March 2013, the shareholding has declined to below 5%, accordingly, figures for the year ended 31 March 2013 have not been stated.
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 |
91.239 |
89.238 |
78.583 |
|
(b) Reserves & Surplus |
374.958 |
388.405 |
299.800 |
|
(c) Money received against
share warrants |
0.000 |
2.052 |
12.972 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
466.197 |
479.695 |
391.355 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
193.876 |
184.500 |
112.259 |
|
(b) Deferred tax liabilities
(Net) |
44.612 |
40.327 |
39.832 |
|
(c) Other long term
liabilities |
22.976 |
25.677 |
0.000 |
|
(d) long-term provisions |
22.551 |
17.125 |
12.687 |
|
Total
Non-current Liabilities (3) |
284.015 |
267.629 |
164.778 |
|
|
|
|
|
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(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
252.389 |
196.445 |
143.648 |
|
(b) Trade payables |
148.147 |
101.693 |
104.697 |
|
(c) Other current liabilities |
160.578 |
195.000 |
104.751 |
|
(d) Short-term provisions |
20.211 |
40.296 |
33.294 |
|
Total
Current Liabilities (4) |
581.325 |
533.434 |
386.390 |
|
|
|
|
|
|
TOTAL |
1331.537 |
1280.758 |
942.523 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
572.880 |
467.521 |
384.622 |
|
(ii) Intangible Assets |
14.465 |
6.698 |
9.776 |
|
(iii) Capital work-in-progress |
7.691 |
85.515 |
4.949 |
|
(iv) Intangible assets under
development |
2.241 |
6.807 |
2.396 |
|
(b) Non-current Investments |
180.941 |
180.698 |
136.425 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
43.291 |
38.633 |
25.776 |
|
(e) Other Non-current assets |
0.120 |
0.240 |
0.480 |
|
Total
Non-Current Assets |
821.629 |
786.112 |
564.424 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
217.420 |
184.307 |
141.292 |
|
(c) Trade receivables |
169.597 |
185.042 |
166.862 |
|
(d) Cash and cash equivalents |
38.690 |
33.840 |
17.276 |
|
(e) Short-term loans and
advances |
83.290 |
90.902 |
52.053 |
|
(f) Other current assets |
0.911 |
0.555 |
0.616 |
|
Total
Current Assets |
509.908 |
494.646 |
378.099 |
|
|
|
|
|
|
TOTAL |
1331.537 |
1280.758 |
942.523 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
955.921 |
1,010.716 |
794.726 |
|
|
Other Income |
11.563 |
32.798 |
12.941 |
|
|
TOTAL
(A) |
967.484 |
1,043.514 |
807.667 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
254.413 |
256.868 |
201.690 |
|
|
Purchases of Stock-in-Trade |
15.154 |
11.079 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(11.758) |
(4.578) |
(1.005) |
|
|
Employees benefits expense |
312.909 |
292.881 |
235.689 |
|
|
Other expenses |
264.616 |
238.476 |
200.411 |
|
|
Prior period expenditure |
0.727 |
0.573 |
0.000 |
|
|
Exceptional items |
6.970 |
19.474 |
0.000 |
|
|
TOTAL
(B) |
843.031 |
814.773 |
636.785 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
124.453 |
228.741 |
170.882 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
71.045 |
50.757 |
45.802 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
53.408 |
177.984 |
125.080 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
56.831 |
43.473 |
39.797 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
(3.423) |
134.511 |
85.283 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
0.149 |
46.421 |
22.440 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
(3.572) |
88.090 |
62.843 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
76.713 |
33.583 |
2.960 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
0.000 |
12.200 |
6.280 |
|
|
Dividend |
9.040 |
27.110 |
22.250 |
|
|
Tax on Dividend |
1.460 |
4.400 |
3.690 |
|
|
Dividend and Dividend Tax for
prior year |
0.000 |
1.250 |
0.000 |
|
|
Adjustment pursuant to merger |
6.070 |
0.000 |
0.000 |
|
|
BALANCE
CARRIED TO THE B/S |
56.571 |
76.713 |
33.583 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
526.846 |
623.475 |
413.344 |
|
|
Others |
11.429 |
7.200 |
8.065 |
|
|
TOTAL
EARNINGS |
538.275 |
630.675 |
421.409 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Capital goods |
13.197 |
71.745 |
14.662 |
|
|
Raw material and components |
127.518 |
153.965 |
100.857 |
|
|
Stores and spares |
28.271 |
22.831 |
15.850 |
|
|
Others |
0.005 |
0.626 |
0.000 |
|
|
TOTAL
IMPORTS |
168.991 |
249.167 |
131.369 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
0.38 |
13.43 |
8.48 |
|
Particulars |
|
|
31.03.2014 |
|
Sales Turnover (Approximately) |
|
|
1000.000 |
|
|
|
|
|
Expected Sales (2014-2015): Rs. 1250.000 Millions
The above information has been parted by Mr. Omprakash Soni
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
(0.37) |
8.44 |
7.78 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.36) |
13.31 |
10.73 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.30) |
13.35 |
10.68 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01) |
0.28 |
0.22 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.96 |
0.79 |
0.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.88 |
0.93 |
0.98 |
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 |
78.583 |
89.238 |
91.239 |
|
Reserves & Surplus |
299.800 |
388.405 |
374.958 |
|
Money received against share
warrants |
12.972 |
2.052 |
0.000 |
|
Net
worth |
391.355 |
479.695 |
466.197 |
|
|
|
|
|
|
long-term borrowings |
112.259 |
184.500 |
193.876 |
|
Short term borrowings |
143.648 |
196.445 |
252.389 |
|
Total
borrowings |
255.907 |
380.945 |
446.265 |
|
Debt/Equity
ratio |
0.654 |
0.794 |
0.957 |
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 |
794.726 |
1,010.716 |
955.921 |
|
|
|
27.178 |
(5.421) |
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 |
794.726 |
1,010.716 |
955.921 |
|
Profit |
62.843 |
88.090 |
(3.572) |
|
|
7.91% |
8.72% |
(0.37)% |
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
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 |
CASE DETAILS
|
Filing Type |
Civil Writ Petition |
Register Type |
Civil Writ Petition |
||||
|
|
|||||||
|
Stamp No. |
CWPST/22781/2014 |
Filling Date |
17/04/2014 |
Reg. No |
CWP/2840/2014 |
Reg. Date |
26/04/2014 |
|
|
|||||||
|
Petitioner |
Kamla Dial workers Union (Regd. No. 322) |
Respondent |
M/S. Kamla Dial and Device Limited |
||||
|
Petn. Adv. |
V. D. Khidta |
Resp. Adv. |
0 |
||||
|
District |
SOLAN |
||||||
|
|
|||||||
|
|
|||||||
|
Bench |
DIVISION |
||||||
|
Status |
Pre-Admission |
||||||
|
Last Date |
02/05/2014s |
Stage |
ADMISSION MATTERS BEFORE NOTICE |
||||
|
Last Coram |
HON'BLE MR. JUSTICE RAJIV SHARMA |
||||||
|
HON'BLE MR. JUSTICE TARLOK SINGH CHAUHAN |
|||||||
|
|
|||||||
|
Act |
CONSTITUTION OF INDIA |
||||||
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Inter corporate deposits from related party |
15.000 |
0.000 |
|
Inter corporate deposits from others |
15.000 |
0.000 |
|
Public deposit from related parties |
4.800 |
1.200 |
|
Public deposit from others |
58.249 |
57.079 |
|
|
|
|
|
Short term
borrowings |
|
|
|
Inter corporate deposits from related party |
0.000 |
0.500 |
|
Inter corporate deposits Public deposits |
12.437 |
9.430 |
|
|
|
|
|
Total |
105.486 |
68.209 |
PERFORMANCE AND PROJECTIONS
During the year, the company achieved sales revenue of Rs. 993.000 Million against Rs. 1042.000 million in the previous year, thereby registering a decline of 5%. The company earned net loss after tax of Rs. 3.600 million against a net profit of Rs. 88.000 million in the previous year. The decline in turnover and profitability was due to the deep and persistent slowdown and recession in exports market, which is a strategic and key focus area for the company. The year commenced with the healthy trend in the market, however, quarter by quarter, the market position witnesses the impact of inventory accumulations in Asia region, which is a major consumption centre for the Swiss watches. The economic turmoil in European region, another vital market for luxury watches, had also impact on the industry. The profitability of the company was also affected by the one time impact of the manpower rationalization in the dials manufacturing units and impact of the merger of Himachal Fine Blank Limited during the year.
The turnover decline was witnessed in all the watch component business segments; however, the decline in watch dials was more significant as compared to watch hands. During the current year, the major international brands in the watch segment deferred their new product developments and the decline in the international market was more in the low and medium priced watches whereas the premium and high priced watches continued to witness growth. This trend was visible in both the domestic and export markets. This year the impact of the recession was more severe compared to the previous recession as the order position from domestic major players was also on decline, a trend different from the previous period.
Company has taken the necessary corrective steps in the watch components segment for cost reduction, restructuring and capacity consolidation. The Company is also focussing on some new customer segments and for further improving manufacturing excellence.
The outlook for the watch components segment has turned positive as the inevitable corrections in global inventory levels have started correcting. The company has started getting enquiries and orders for the new product developments across product categories including high profit segments. The company's efforts of tie-ups with the new customers and market segments is also moving with requisite pace. We are confident that this will help in further improving the turnover and performance of the company.
Another positive development in the Swiss exports market is that the Swiss parliament has deferred the passage and implementation of the “Swiss Origin” law, which will lead to continued imports of watch components from the low cost manufacturing countries like India and China. The efforts of the company during last few years to upgrade the capabilities for moving up the value chain by offering high featured more complex components will also yield the results in the coming quarters and company remains confident of improved performance and recovery at a fast and healthy pace.
In the precision stamping division, Eigen engineering, business turnover was better than the last year by registering a growth of 36% in sales. The company is now moving to enhance the profitability of the business and also working on increasing exports which has proven to be more beneficial.
The business of Packaging division was also significantly impacted by the decline in order position from the watch segment in domestic market. During the year the sales turnover of this division declined by 14%. In order to overcome the impact of high dependence on the watch segment for the business, the company accelerated its efforts for broad basing the market segments and utilized the resources for enhancing the market in export markets and the jewellery and accessories segments. The result of these efforts is encouraging and the company was in a position to increase the exports by more than 300%. The company has reduced the dependence on the watch segment and is confident that in the coming periods the business will witness healthy growth and return.
The Company's Swiss subsidiary, Pylania SA in Switzerland was also impacted by the recession in the watch industry and its turnover declined by 22% over the previous year. The reduced turnover led to higher operational losses of CHF 0.69 million during the year. The company took the necessary steps for major reduction in the costs and operational expenses and has made alternate plans for healthy recovery and sustainable development in the Swiss markets for other watch products. Company facilities will be also utilized for alternate uses and the company is in the process of discussions with other watch players for further enhancing the business.
The operations of the Joint venture Company Satva Jewellery and Design Limited, the 50:50 Joint Venture with Pascal Vincent Vaucher, SA of Switzerland remained suspended during the year due to no orders. The company recorded a loss of Rs. 2.67 million during the year. The Company increased its paid-up capital by Rs. 5.21 million during the year and is in discussion with the JV partner for finding out the alternatives for restructuring / realigning the business of the company.
MANAGEMENT DISCUSSION
AND ANALYSIS
AN OVERVIEW OF THE ECONOMY
The global economies continued to witness a sharp slowdown. The fall in faster growing emerging economies like BRICS (Brazil, Russia, India, China and South Africa) was more severe but the other developed economies Germany and Japan also faced major slowdown due to global weaknesses. The US economy remained stagnant but the other European countries like Italy, Spain, Poland were affected significantly due to Euro-zone issues.
While India's recent slowdown is partly rooted in external causes, domestic causes are also important. The strong post-financial-crisis stimulus led to stronger growth in 2009-10 and 2010-11. However, the boost to consumption, coupled with supply side constraints, led to higher inflation and tightening of monetary policy. The consequent slowdown, especially in 2012-13, has been across the board, with no sector of the economy unaffected.
During the year, the Indian economy had to face the challenge of managing growth and price stability. The Indian economy growth slowed down from 6.9% in 2011-12 to 5% in 2012-13 and the major reason was rate of growth in manufacturing sector decline to 1.9%.
The delayed policy decisions and required corrective actions for improving corporate and infrastructure investments and creating conducive environment by removing the bottlenecks and uniformity and clarity on key policies affected the economy.
The government's selective efforts in recent months are aimed at restoring the fiscal health and improving the growth rate. The fiscal consolidation corrective measures and policies like controlling subsidies on petroleum products and permitting the FDI in multiple brands will help the economy in the coming periods. However, other important matters like goods and service tax (GST), Direct Tax code (DTC) would help in eliminating multiple taxes and improving the efficiencies and make India more of a national integrated market. Similarly the direct cash benefit transfer scheme will result in containing wasteful expenditure.
While the current environment is difficult, the future holds promise. With the global economy also likely to recover somewhat in 2013, the selective measures announced by government should help in improving the Indian economy's outlook for 2013-14.
BUSINESS OVERVIEW
KDDL Limited is one of the leading Companies in India in manufacture of watch components and manages the largest retail chain in luxury Swiss watches in the organized sector through its subsidiary Company Ethos Limited.
BUSINESS PERFORMANCE REVIEW
Revenue
The gross operating income of the company declined from Rs. 1042.000 million to Rs. 993.000 million, a decrease of 5% over the previous year. Despite, the suppressed market conditions, global recession and the economic turmoil in the European markets, which is a major source of revenue for the company, company managed to protect any rapid decline in the turnover. This was possible as the company efforts in the previous years of supplying quality products and competitive prices helped in retaining the confidence and trust of the reputed customers, both in domestic and Export markets. Company could not fully insulate itself from the subdued market conditions.
The watch segment gross operating income declined from Rs. 784.000 million to Rs. 689.000 million, a decrease of 12%. The other segments revenue increased from Rs. 190.000 million to Rs. 230.000 million reflecting an increase of 21%.
The domestic sales of the company improved from Rs. 387.000 million to Rs. 413.000 million representing a growth of 7%, whereas the exports market declined from Rs. 599.000 million to Rs. 508.000 million, decline of almost 15%, which re-establishes the fact that the global recession impacted the performance in the exports markets. However, they are confident that the market is turning for the better and will witness growth in next 2 quarters. The efforts of the company in re-positioning and capturing new customers and market segments will also help in improving the revenue in the coming periods.
OUTLOOK 2013 ONWARDS
The weaknesses and slowdown in the world economic situation had impacted the watch industry during 2012. However Swiss watch players are optimistic about the growth outlook in many countries. Asia particularly is the fast growing and important market for Swiss watches, followed by U.S.A. There is a clear upturn in leading indicators pointing to a recovery and rebound during 2nd half of 2013.
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31 DECEMBER 2013.
|
Sr. No. |
Particular |
Quarter
Ended |
Nine
months Ended |
|
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
|
|
|
|
|
|
Net Sales/Income from Operations |
265.600 |
264.600 |
771.900 |
|
|
Other operating income |
16.200 |
15.300 |
41.700 |
|
|
Total Income |
281.800 |
279.900 |
813.600 |
|
|
|
|
|
|
|
|
Expenditure |
|
|
|
|
|
Cost of materials consumed |
75.600 |
63.300 |
200.300 |
|
|
Purchase of stock in trade |
0.000 |
0.000 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(7.700) |
(0.400) |
(2.600) |
|
|
Employee benefits expenses |
84.300 |
88.600 |
255.000 |
|
|
Depreciation and amortization expenses |
15.400 |
14.400 |
44.500 |
|
|
Other expenses |
72.900 |
78.400 |
217.800 |
|
|
Total Expenses |
240.500 |
244.300 |
715.000 |
|
|
|
|
|
|
|
|
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
41.300 |
35.600 |
98.600 |
|
|
Other Income |
2.200 |
1.800 |
5.900 |
|
|
Profit from Ordinary Activities before Finance Cost and
Exceptional Items (3+4) |
43.500 |
37.400 |
104.500 |
|
|
Finance Cost |
18.300 |
18.800 |
56.800 |
|
|
Profit From Operations after Other Income, Interest and Exceptional
Items (5-6) |
25.200 |
18.600 |
47.700 |
|
|
Exceptional Items |
2.600 |
3.000 |
5.900 |
|
|
Net Profit / (loss) from ordinary activities before tax
(7-8) |
22.600 |
15.600 |
41.800 |
|
|
Tax Expense |
8.800 |
3.600 |
13.600 |
|
|
Net Profit / (loss) from ordinary activities after tax and
before prior period expenses (9-10) |
13.800 |
12.000 |
28.200 |
|
|
prior period expenses |
0.000 |
0.000 |
0.000 |
|
|
Net Profit |
13.800 |
12.000 |
28.200 |
|
|
Paid-up Equity Share Capital |
91.200 |
91.200 |
91.200 |
|
|
(Face Value of Re. 1/- Each) |
0.000 |
0.000 |
0.000 |
|
|
Reserves Excluding Revaluation Reserve |
|
|
|
|
|
Earning Per Share before extraordinary items |
|
|
|
|
|
a) Basic |
1.53 |
1.32 |
3.12 |
|
|
b) Diluted |
1.53 |
1.32 |
3.12 |
|
|
|
|
|
|
|
|
Earning Per Share after extraordinary items |
|
|
|
|
|
a) Basic |
1.53 |
1.32 |
3.12 |
|
|
b) Diluted |
1.53 |
1.32 |
3.12 |
|
|
|
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
-Number of Shares |
4250738 |
4261738 |
4250738 |
|
|
- Percentage of Shareholding |
47.04% |
47.16% |
47.04% |
|
|
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) |
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 |
4785982 |
4774982 |
4785982 |
|
|
- 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) |
52.96% |
52.84% |
52.96% |
|
|
Particulars |
31.12.2013 |
|
|
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
6 |
|
|
Disposed of during the quarter |
6 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT REPORTING
|
Sr. No. |
Particular |
Quarter
Ended |
Nine
months Ended |
|
|
|
|
31.12.2013 (Unaudited) |
30.09.2013 (Unaudited) |
31.12.2013 (Unaudited) |
|
|
|
|
|
|
|
|
Segment
revenue |
|
|
|
|
|
a) Precision and watch components |
263.700 |
262.800 |
760.600 |
|
|
b) Others |
18.100 |
17.100 |
53.000 |
|
|
Net sales/income from operations (Including other operating
income) |
281.800 |
279.900 |
813.600 |
|
|
Segment results profit/(loss) before tax and interest |
|
|
|
|
|
a) Precision and watch components |
67.600 |
74.500 |
194.200 |
|
|
b) Others |
(5.400) |
(8.000) |
(14.900) |
|
|
Total |
62.200 |
66.500 |
179.300 |
|
|
Less: Interest and financial charges (net of interest
income) |
17.700 |
18.100 |
54.900 |
|
|
Less: Other un-allocable expenditure net of un-allocable
income |
21.900 |
32.800 |
82.600 |
|
|
Total
Profit/(loss) before tax after prior period items |
22.600 |
15.600 |
41.800 |
|
|
|
|
|
|
|
|
Capital employed |
|
|
|
|
|
(Segment assets - Segment Liabilities) |
|
|
|
|
|
a) Precision and watch components |
828.200 |
785.400 |
828.200 |
|
|
b) Others |
26.900 |
25.600 |
26.900 |
|
|
c) Un allocated |
270.200 |
298.100 |
270.200 |
|
|
Total |
1125.300 |
1109.100 |
1125.300 |
Note:
The above results were renewed by the Audit Committee and approved by the Board of Directors at its meeting held on February 07, 2014.
Tax expense includes adjustment of Deferred tax and prior period tax
adjustments.
Exceptional items for the quarter ended December 31, 2013 and previous quarter
ended September 30, 2013 includes certain asset written off aggregating Rs.26
Lacs and 30 Lacs respectively, due to discontinuation of operations of two
dials manufacturing units of the Company and for other reportable periods
include diminution in the value of investment of joint Venture- Satva Jewellery
and Design Limited and subsidiary Pylania SA.
The Statutory auditors of the Company have earned out a limited review of the
results for the quarter and nine months ended December 31, 2013.
Previous period figures have been recast/regrouped wherever considered feasible
and necessary.
FIXED ASSETS
· Land
· Buildings
· Plan and Machinery
· Office Equipments
· Vehicles
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 58.86 |
|
|
1 |
Rs.98.82 |
|
Euro |
1 |
Rs. 80.71 |
INFORMATION DETAILS
|
Information
Gathered by : |
HTL |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--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 |
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 |
|
34 |
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.