MIRA INFORM REPORT
|
Report No. : |
354248 |
|
Report Date : |
14.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
VST INDUSTRIES
LIMITED |
|
|
|
|
Registered
Office : |
1-7-1063/1065, P.O. Box No. 1804, Azambad, Hyderabad – 500020
Talangana |
|
Tel. No.: |
91-40-27610460 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
10.11.1930 |
|
|
|
|
Com. Reg. No.: |
36-000576 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 154.419 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29150TG1930PLC000576 |
|
|
|
|
IEC No.: |
0988002264 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACV6799C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the manufacturing of cigarettes and marketing of unmanufactured tobacco. (From Indirect Sources) |
|
|
|
|
No. of Employees
: |
858 (Approximately) [303 management staff and 555 workmen] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (71) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
Maximum Credit Limit : |
USD 9900000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an associate of “British American Tobacco Group”. It is a
well-established company having excellent track record. The company has a manufacturing facility at Hyderabad and its
principal activities are manufacture and sale of cigarettes and
unmanufactured tobacco. Subject possesses robust financial profile marked by sound capital
structure and strong liquidity position along with no external borrowings.
Management has reported healthy profit margin in FY-2015. Rating takes into consideration, the subject being a third largest
player in the Indian cigarette market, having its operations concentrated in
the southern and eastern regions of the country. Trade relations are trustworthy. Business is active. Payment terms are
reported as regular and as per commitments. In the view of vast experience of the promoters and strong customer
base, the subject can be considered for business dealings at usual trade
terms and conditions. |
NOTES:
Any query related to this report can be made on
e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating =
AA+ |
|
Rating Explanation |
Having high degree
of safety and very low credit risk. |
|
Date |
July 14, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating =
A1+ |
|
Rating Explanation |
Very strong degree of
safety and carry lowest credit risk. |
|
Date |
July 14, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
LOCATIONS
|
Registered Office / Factory : |
1-7-1063/1065, P.O. Box No. 1804, Azambad, Hyderabad – 500020 Talangana,
India |
|
Tel. No.: |
91-40-27610460 |
|
Fax No.: |
91-40 2761 5336 |
|
E-Mail : |
|
|
Website : |
DIRECTORS
As on 31.03.2015
|
Name : |
Sai Sankar Nanduri |
|
Designation : |
Managing Director |
|
Address : |
Flat No. 209, Beta Block, Jayabheri Silicon County, Madhapur Road, Hyderabad - 500032, Telangana, India |
|
Qualification : |
Commerce Graduate |
|
Experience : |
35 years of experience in finance |
|
Date of Appointment : |
01.01.2001 |
|
DIN No.: |
00010270 |
|
|
|
|
Name : |
Mr. Sampathkumaran Thirumalai |
|
Designation : |
Director |
|
Address : |
8-2-268/A/2/19, Road No.3, Banjara Hills, Hyderabad, 500034, Telangana, India |
|
Date of Appointment : |
20.10.20005 |
|
DIN No.: |
00011899 |
|
|
|
|
Name : |
Mr. Raymond Stephen Noronha |
|
Designation : |
Director |
|
Address : |
Flat No. D-204, 4th Floor, Jayabheri Orange County Serilingampally, Rangareddy, 500046, Telangana, India |
|
Qualification : |
B.A. |
|
Experience : |
40 years of varied experience in the cigarette |
|
Date of Appointment : |
30.11.2006 |
|
DIN No.: |
00012620 |
|
|
|
|
Name : |
Mr. Devaraj Lahiri |
|
Designation : |
Whole-Time Director |
|
Address : |
F No. 3, VST Colony, 8-2-248, Road No.3, Banjara Hills, Hyderabad - 500034, Telangana, India |
|
Date of Appointment : |
01.08.2011 |
|
DIN No.: |
03588071 |
|
|
|
|
Name : |
Mubeen Rafat |
|
Designation : |
Director |
|
Address : |
6-3-456/17/1, Dwarkapuri Colony, Panjagutta, Hyderabad - 500082, Telangana, India |
|
Date of Appointment : |
01.01.2014 |
|
DIN No.: |
06776540 |
|
|
|
|
Name : |
Mr. Ramakrishna Venkata Addanki |
|
Designation : |
Nominee Director |
|
Address : |
Istinye Mah. Sulh Sk. No: 10/A.3/A, Blok D2 Sariyer List Istinye, Istanbul, 0000, Turkey |
|
Qualification : |
Commerce Graduate |
|
Experience : |
20 years of experience in the tobacco industry |
|
Date of Appointment : |
21.04.2015 |
|
DIN No.: |
07147591 |
KEY EXECUTIVES
|
Name : |
Mr. Nitesh Bakshi |
|
Designation : |
Company Secretary |
|
Address : |
Flat No.8, VST Colony, 8-2-248/A/1, Road No.3, Banjara Hills, Hyderabad - 500034, Telangana, India |
|
Date of Appointment : |
19.10.2012 |
|
PAN No. : |
AFSPB7863H |
|
|
|
|
Name : |
Mr. Anish Gupta |
|
Designation : |
Chief Financial Officer |
|
Address : |
24 Krishinagar, Secunderabad - 500009, Telangana, India |
|
Date of Appointment : |
23.04.2014 |
|
PAN No. : |
ADEPG7554Q |
SHAREHOLDING PATTERN
As on 30.09.2015
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of
Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
||
|
|
|
|
|
|
|
|
|
|
4965902 |
32.16 |
|
|
4965902 |
32.16 |
|
Total shareholding of
Promoter and Promoter Group (A) |
4965902 |
32.16 |
|
|
|
|
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
1532323 |
9.92 |
|
|
14253 |
0.09 |
|
|
407876 |
2.64 |
|
|
2139077 |
13.85 |
|
|
4093529 |
26.51 |
|
|
|
|
|
|
4185837 |
27.11 |
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs.0.100 Million |
1832966 |
11.87 |
|
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million |
135578 |
0.88 |
|
|
228108 |
1.48 |
|
|
14908 |
0.10 |
|
|
1667 |
0.01 |
|
|
89134 |
0.58 |
|
|
119532 |
0.77 |
|
|
2228 |
0.01 |
|
|
614 |
0.00 |
|
|
25 |
0.00 |
|
|
6382489 |
41.33 |
|
Total Public shareholding
(B) |
10476018 |
67.84 |
|
Total (A)+(B) |
15441920 |
100.00 |
|
|
|
|
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
15441920 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the manufacturing of cigarettes and marketing of unmanufactured tobacco. (From Indirect Sources) |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
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Selling : |
Not Available |
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Purchasing : |
Not Available |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
858 (Approximately) [303 management staff and 555 workmen] |
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Bankers : |
|
|
Auditors : |
|
|
Name : |
Lovelock and Lewes Chartered Accountants |
|
Address : |
Hyderabad – 500034, Telangana, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Company having
significant influence : |
|
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs.500.000 Million |
|
5000000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs.500.000 Million |
|
|
Total |
|
Rs.1000.000
Million |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15441920 |
Equity Shares |
Rs.10/- each |
Rs.154.419
Million |
There was no movement in number of Ordinary Shares during the year.
Details of
shareholders holding more than 5% of Ordinary Shares:
|
Name of the Shareholders |
No. In Million |
% Holding |
|
Bright Star Investments Private Limited |
4.007 |
25.95 |
|
The Raleigh Investment Company Limited |
3.620 |
23.45 |
|
Tobacco Manufacturers (India) Limited |
1.279 |
8.28 |
|
Matthews India Fund |
10.74 |
6.96 |
|
Small Cap World Fund Inc. |
1.003 |
6.50 |
Rights, Preferences
and restrictions attached to ordinary shares
The Company has only one class of Ordinary Shares
outstanding, having a par value of Rs.10 each, that rank pari passu in all
respects including voting rights and entitlement to dividend.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
154.419 |
154.419 |
154.419 |
|
(b) Reserves & Surplus |
3312.331 |
3127.937 |
2886.663 |
|
(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) |
3466.750 |
3282.356 |
3041.082 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
61.632 |
32.943 |
2.212 |
|
Total Non-current
Liabilities (3) |
61.632 |
32.943 |
2.212 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Trade payables |
775.731 |
499.056 |
545.094 |
|
(c) Other current
liabilities |
2649.049 |
2472.307 |
2718.192 |
|
(d) Short-term provisions |
1307.118 |
1264.639 |
1129.142 |
|
Total Current Liabilities
(4) |
4731.898 |
4236.002 |
4392.428 |
|
|
|
|
|
|
TOTAL |
8260.280 |
7551.301 |
7435.722 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1976.748 |
2091.059 |
1751.657 |
|
(ii) Intangible Assets |
0.993 |
0.000 |
0.000 |
|
(iii) Capital
work-in-progress |
0.000 |
0.258 |
0.603 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
22.557 |
32.557 |
32.557 |
|
(c) Deferred tax assets
(net) |
140.055 |
98.932 |
85.664 |
|
(d) Long-term Loan and Advances |
10.717 |
21.415 |
107.638 |
|
(e) Other Non-current
assets |
0.127 |
0.127 |
0.127 |
|
Total Non-Current Assets |
2151.197 |
2244.348 |
1978.246 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
1690.000 |
1779.594 |
1954.846 |
|
(b) Inventories |
3660.690 |
2676.206 |
2533.680 |
|
(c) Trade receivables |
119.531 |
77.789 |
236.945 |
|
(d) Cash and cash
equivalents |
420.507 |
469.354 |
472.722 |
|
(e) Short-term loans and
advances |
177.304 |
256.734 |
225.376 |
|
(f) Other current assets |
41.051 |
47.276 |
33.907 |
|
Total Current Assets |
6109.083 |
5306.953 |
5457.476 |
|
|
|
|
|
|
TOTAL |
8260.280 |
7551.301 |
7435.722 |
PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
8361.579 |
7891.742 |
6636.98 |
|
|
Other Income |
185.280 |
324.424 |
312.303 |
|
|
TOTAL |
8546.859 |
8216.166 |
6949.283 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
4066.668 |
3846.496 |
3241.955 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(91.205) |
(19.617) |
(36.077) |
|
|
Employees benefits
expense |
770.771 |
699.210 |
634.275 |
|
|
Other expenses |
1193.992 |
1184.586 |
1043.580 |
|
|
TOTAL |
5940.226 |
5710.675 |
4883.733 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
2606.633 |
2505.491 |
2065.550 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
319.042 |
265.713 |
224.985 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
2287.591 |
2239.778 |
1840.565 |
|
|
|
|
|
|
|
Less |
TAX |
765.512 |
738.252 |
578.083 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
1522.079 |
1501.526 |
1262.482 |
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
1113.300 |
1027.400 |
1020.600 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General
Reserve |
152.500 |
151.000 |
126.500 |
|
|
Dividend proposed |
1080.900 |
1080.900 |
965.100 |
|
|
Corporate Dividend Tax |
226.200 |
183.700 |
164.000 |
|
|
Balance Carried to the
B/S |
1175.779 |
1113.300 |
1027.400 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
1927.553 |
1555.110 |
1212.905 |
|
|
TOTAL EARNINGS |
1927.553 |
1555.110 |
1212.905 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
92.218 |
75.836 |
71.612 |
|
|
Components and Stores
parts |
16.322 |
11.014 |
6.430 |
|
|
Capital Goods |
124.521 |
370.455 |
220.374 |
|
|
TOTAL IMPORTS |
233.061 |
457.305 |
298.416 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
98.57 |
97.24 |
81.76 |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flows from |
NA |
NA |
NA |
QUARTERLY RESULTS
|
Particulars (Unaudited) |
30.06.2015 |
30.09.2015 |
|
1st
Quarter |
2nd
Quarter |
|
|
Net Sales |
1914.400 |
2045.000 |
|
Total Expenditure |
1407.500 |
1566.500 |
|
PBIDT (Excl OI) |
506.900 |
478.500 |
|
Other Income |
49.400 |
63.200 |
|
Operating Profit |
556.300 |
541.700 |
|
Interest |
0.000 |
0.000 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
556.300 |
541.700 |
|
Depreciation |
81.100 |
68.700 |
|
Profit Before Tax |
475.200 |
473.000 |
|
Tax |
166.000 |
155.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
309.200 |
317.900 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
309.200 |
317.900 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT/Sales) |
(%) |
18.20 |
19.03 |
19.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
28.25 |
30.19 |
25.15 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.66 |
0.68 |
0.61 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.00 |
0.00 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.29 |
1.25 |
1.24 |
STOCK
PRICES
|
Face Value |
Rs.10.00/- |
|
Market Value |
Rs.1600.00/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
154.419 |
154.419 |
154.419 |
|
Reserves & Surplus |
2886.663 |
3127.937 |
3312.331 |
|
Net worth |
3041.082 |
3282.356 |
3466.750 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
0.000 |
0.000 |
|
Total borrowings |
0.000 |
0.000 |
0.000 |
|
Debt/Equity ratio |
0.000 |
0.000 |
0.000 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
6636.980 |
7891.742 |
8361.579 |
|
|
|
18.906 |
5.954 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
6636.980 |
7891.742 |
8361.579 |
|
Profit |
1262.482 |
1501.526 |
1522.079 |
|
|
19.02% |
19.03% |
18.20% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
---------------------- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
---------------------- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
---------------------- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
---------------------- |
|
33 |
Market information |
---------------------- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
S. NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
90140529 |
22/06/2001 |
150,000,000.00 |
ICICI LIMITED |
ICICI TOWERS, BANDRA KURLA COMPLEX; BANDRA (EAST), MUMBAI, MAHARASHTRA, INDIA |
- |
|
2 |
90258384 |
20/03/1998 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, HYDERABAD - 500482, TELANGANA, INDIA |
- |
|
3 |
90258376 |
08/06/1999 * |
180,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORP. OF INDIA |
163; BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA |
- |
|
4 |
90258166 |
20/03/1998 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, TOPAZ BUILDING, HYDERABAD, TELANGANA, INDIA |
- |
|
5 |
90258056 |
20/03/1998 * |
400,000,000.00 |
STATE BANK OF HYDERABAD |
INDUSTRIAL FINANCE BRANCH, HYDERABAD - 500482, TELANGANA, INDIA |
- |
|
6 |
90258034 |
08/06/1999 * |
180,000,000.00 |
THE INDUSTRIAL
CREDIT AND INVESTMENT CORP. OF
INDIA |
163; BACKBAY RECLAMATION, MUMBAI - 400020, MAHARASHTRA, INDIA |
- |
|
7 |
90120749 |
15/09/1994 |
50,000,000.00 |
STANDARD CHARTERED BANK |
58; ARMENIAN STREET, MADRAS - 600001, TAMILNADU, INDIA |
- |
|
8 |
90120745 |
28/05/1996 * |
125,000,000.00 |
STATE BANK OF HYDERABAD INDUSTRIAL BRANCH |
6-3-713; PUNJAGUTTA, HYDERABAD - 500482, TELANGANA, INDIA |
- |
|
9 |
90257994 |
05/09/1994 * |
144,000,000.00 |
STATE BANK OF INDIA |
BANK STREET, HYDERABAD - 500001, TELANGANA, INDIA |
- |
|
10 |
90120626 |
26/07/1993 |
90,000,000.00 |
AMERICAN EXPRESS INTERNATIONAL BANKING CORPORATION |
HAMILTON HOUSE; BLOCK A, CANNOUGHT PLACE, NEW DELHI - 110001, INDIA |
- |
* Date of charge modification
MANAGEMENT DISCUSSION
AND ANALYSIS
Industry Structure
and Development
The trend of frequent and steep tax increase continues with third consecutive year of excise revision in the Union Budget presented in July 2014. This year the duty on most affordable 64mm cigarettes was disproportionately increased by 72% versus 17% for other key segment. This impacts the Company significantly more than competition.
In addition, frequent revision in state taxes continues to pose a challenge for the industry. Some key cigarette consuming states such as Tamilnadu and Kerala increased tax rates from 20% to 30% in 2014-15.
This trend of succession tax hikes has led to pricing pressure on consumers resulting in another year of industry volume decline. The resultant increase in price of legitimate cigarettes has led to the growth of tax inefficient non duty paid cigarettes thus hurting legitimate stakeholders further. The unpredictable tax regime poses varied challenges for the industry moving forward.
The government has also proposed stringent regulatory measures including 85% graphical health warning on both panels of cigarette packs, ban on sale of loose sticks and blanket ban on any kind of promotional activity. These measures, if enforced, would further inhibit an already highly regulated industry and significantly hinder legitimate competition.
Segment Wise
Performance
The Company largely operates in the value segment. Discriminatory and exponential excise hike in 64mm in 2014-15 affects the Company more than others since affordability driven 64mm segment contributes significantly to overall volumes.
The Company's key trademarks such as Moments, Special and Charms have delivered superior performance in a challenging year thus helping to minimize volume drop in a declining industry. The Company strives to cater to diverse consumer preferences through portfolio laddering of key trademarks, introducing new brands and entering new geographies.
Market Scenario
Cigarette volumes of the Company during 2014-15 stood at 7540 mns compared to 8100 mns in 2013-14. Though disproportionately affected by excise hike, the Company's performance is in line with general industry trends.
Leaf Tobacco
The Company has recorded leaf sales turnover of Rs.2560.000 Million, in the year 2014-15 leveraging its expertise in all varieties of tobacco. The Company is continuing domestic sales in addition to exports for maximizing turnover and profits.
The focus on the development of niche varieties of tobacco continued in view of the changing requirements of tobacco in the international market. Besides helping develop backward regions, it has also helped in improving the Company's profitability. The Oriental project continues with improved agronomic practices.
It is satisfying to note that your Company's farmers continue to grow tobacco with the lowest pesticide residue levels and low TSNAs (Tobacco Specific Nitrosamaines) that are well within international standards.
The Company's leaf tobacco function continues to be
certified by Registro Italiano Navale, Genova, Italy for SA8000 reflecting
Company's resolve to follow best international practices in its operations.
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH
SEPTEMBER 2015
(Rs. In Million)
|
Particulars |
3 Months ended 30.09.2015 |
Preceding 3 Months ended 30.06.2015 |
Year to date figures for current period ended 30.09.2015 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
Income
from operations |
|
|
|
|
Net sales/ Income from operation (net of excise duty) |
2032.900 |
1901.300 |
3934.200 |
|
Other operating income |
12.100 |
13.100 |
25.200 |
|
Total
income from Operations(net) |
2045.000 |
1914.400 |
3959.400 |
|
Expenditure |
|
|
|
|
Cost of material consumed |
1018.100 |
839.500 |
1857.600 |
|
Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
(7.600) |
10.100 |
2.500 |
|
Employees benefit expenses |
184.900 |
203.300 |
388.200 |
|
Depreciation and amortization expenses |
68.700 |
81.100 |
149.800 |
|
Other expenditure |
371.100 |
354.600 |
725.700 |
|
Total expenses |
1635.200 |
1488.600 |
3123.800 |
|
Profit
from operations before other income and financial costs |
409.800 |
425.800 |
835.600 |
|
Other income |
63.200 |
49.400 |
112.600 |
|
Profit from
ordinary activities before finance costs |
473.000 |
475.200 |
948.200 |
|
Finance costs |
0.000 |
0.000 |
0.000 |
|
Profit from ordinary activities after finance costs but before Exceptional Items |
473.000 |
475.200 |
948.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
Profit from
ordinary activities before tax Expense: |
473.000 |
475.200 |
948.200 |
|
Tax expenses |
155.100 |
166.000 |
321.100 |
|
Net Profit / (Loss)
from ordinary activities after tax |
317.900 |
309.200 |
627.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Net Profit / (Loss) for the period |
317.900 |
309.200 |
627.100 |
|
Paid-up equity share capital (Nominal value Rs.10/- per share) |
154.400 |
154.400 |
154.400 |
|
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year |
--- |
--- |
--- |
|
Earnings per share (before
extraordinary items) of Rs.10/- each) (not annualized): |
|
|
|
|
Basic and diluted |
20.59 |
20.03 |
40.62 |
|
Earnings per share (after
extraordinary items) |
|
|
|
|
Basic and diluted |
20.59 |
20.03 |
40.62 |
|
A.
Particulars of shareholding |
|
|
|
|
1.
Public Shareholding |
|
|
|
|
- Number of shares |
10476018 |
10476018 |
10476018 |
|
- Percentage of shareholding |
67.84 |
67.84 |
67.84 |
|
2. Promoters and Promoters group Shareholding- |
|
|
|
|
a) Pledged /Encumbered |
|
|
|
|
Number of shares |
--- |
--- |
--- |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
--- |
--- |
--- |
|
Percentage of shares (as a % of total share capital of the
company) |
--- |
--- |
--- |
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
Number of shares |
4965902 |
4965902 |
4965902 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100 |
100 |
100 |
|
Percentage of shares (as a % of total share capital of the
company) |
32.16 |
32.16 |
32.16 |
|
B.
Investor Complaints |
|
|
|
|
Pending at the beginning of the quarter |
|
--- |
|
|
Receiving during the quarter |
|
37 |
|
|
Disposed of during the quarter |
|
37 |
|
|
Remaining unreserved at the end of the quarter |
|
--- |
|
STANDALONE
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Million)
|
Particulars |
30.09.2015 |
|
(Unaudited) |
|
|
EQUITY AND LIABILITIES |
|
|
Shareholders’ Funds |
|
|
Share Capital |
154.400 |
|
Reserves and Surplus |
3935.800 |
|
Sub-total Shareholder’s
Fund |
4090.200 |
|
Non-Current Liabilities |
|
|
Long term provisions |
97.700 |
|
Sub-total
Non-Current Liabilities |
97.700 |
|
Current Liabilities |
|
|
Trade Payables |
613.100 |
|
Other Current Liabilities |
4255.800 |
|
Short term provisions |
6.100 |
|
Sub-total
Current Liabilities |
4875.000 |
|
|
|
|
TOTAL – EQUITY
AND LIABILITIES |
9062.900 |
|
|
|
|
ASSETS |
|
|
Non-Current Assets |
|
|
Fixed Assets |
1872.600 |
|
Non-Current Investments |
22.500 |
|
Deferred Tax Assets (net) |
162.000 |
|
Long term loans and advances |
57.700 |
|
Other Non-Current Assets |
0.100 |
|
Sub-total
Non-Current Assets |
2114.900 |
|
Current Assets |
|
|
Current Investment |
2463.600 |
|
Inventories |
3959.100 |
|
Trade Receivables |
229.700 |
|
Cash and Bank Balances |
176.900 |
|
Short term Loans and advances |
82.700 |
|
Other Current Assets |
36.000 |
|
Sub-total
Current Assets |
6948.000 |
|
|
|
|
TOTAL - ASSETS |
9062.900 |
Note:
- The above mentioned results were reviewed by the Audit Committee at its meeting held on 5th November, 2015 and approved by the Board of Directors at their meeting held on 6th November, 2015.
- Limited Review of Financial Results as per Clause 41 of Listing Agreement with the Stock Exchanges has been carried out by the Statutory Auditors.
- As the Company’s business activity falls within a single primary business segment viz. “Tobacco and related products”, the disclosure requirements of Accounting Standard 17 "Segment Reporting” are not applicable.
- To facilitate comparison, figures of the previous period have been re-arranged, where necessary.
FIXED ASSETS
Tangible Assets
- Land
- Buildings on Freehold Land
- Buildings on Leasehold Land
- Plant and Equipment
- Furniture and Fixtures
- Motor Vehicle
- Office Equipment
Intangible Assets
- Goodwill and Trade Marks
- Computer Software
- Time Share Rights
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.66.78 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.73.10 |
INFORMATION DETAILS
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
PNM |
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 |
|
--PROFITABILITY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
71 |
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.