MIRA INFORM REPORT
|
Report No. : |
332762 |
|
Report Date : |
17.07.2015 |
IDENTIFICATION DETAILS
|
Name : |
TITAN COMPANY LIMITED (w.e.f. 01.08.2013) |
|
|
|
|
Formerly Known
As : |
TITAN INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
3, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu |
|
Tel. No.: |
91-4344-664199 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
26.07.1984 |
|
|
|
|
Com. Reg. No.: |
18-001456 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 887.800 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74999TZ1984PLC001456 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHET08980G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACT5131A |
|
|
|
|
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 and sale of watches, jewellery, precision engineering components, eyewear and accessories |
|
|
|
|
No. of Employees
: |
7558 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (75) |
|
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 88000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
Comments : |
Subject is a joint venture between the “Tata Group” and “Tamil Nadu
Industrial Development Corporation Limited (TIDCO)”. It is an established company having excellent track record. Financial position of the company is sound. Fundamentals are strong.
Directors are reported to be experienced and respectable businessman. Trade relations are reported as fair. Business is active. Payment
terms are reported to be regular and as per commitment. 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 – 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 |
AA+ (Long Term Rating) |
|
Rating Explanation |
High degree of safety and carry very low
credit risk. |
|
Date |
28.01.2015 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1+ (short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
28.01.2015 |
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
31-03-2013.
LOCATIONS
|
Registered Office : |
3, SIPCOT Industrial Complex, Hosur – 635126, Tamilnadu,
India |
|
Tel. No.: |
91-4344-664199 |
|
Fax No.: |
91-4344-276037 |
|
E-Mail : |
|
|
Website : |
|
|
|
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|
Corporate Office : |
132, 133 Divyasree Technopolis, Off HAL Airport Road, Yamalur, Bangalore – 560037, Karnataka, India |
|
Tel. No.: |
91-80-66609000/ 66609027 / 28 |
|
Fax No.: |
91-80-25269923/ 25263001 |
|
E-Mail : |
|
|
|
|
|
Regional Offices : |
Located at:
|
|
|
|
|
Watch Plant 1 : |
Plot Nos.3, 4 and 5, SIPCOT Industrial Complex, Hosur – 635126,
Tamilnadu, India |
|
|
|
|
Watch Plant 2 : |
Mohabewala Industrial Area, Dehradun - 248002, (i) Unit 1 - Khasra No. 148D, 173B, 176A and 176B (ii) Unit 2 - Khasra No. 148B, 149B |
|
|
|
|
Watch Plant 3 : |
Plot No. C1, C2, C3, Khasra No. 37, Village Bantakheri, Tehsil -
Roorkee, District - Haridwar, Uttaranchal, India |
|
|
|
|
Watch Plant 4 : |
Plot No. 10B, Khasra Nos. 150, 151, 152, 153 Sector 2, Integrated Industrial
Estate, SIDCUL, Pant Nagar 263 153, Udham Singh Nagar District, Uttarkhand,
India |
|
|
|
|
Watch Plant 5 : |
Survey Field No. 19 & 20 Kallapalayam Village, Sulur Tank, Coimbatore, 641201 Tamil Nadu, India |
|
|
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Jewellery 1 : |
29, SIPCOT Industrial Complex, Hosur 635 126, Tamil Nadu |
|
|
|
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Jewellery 2 : |
Khasra No.238, Kuanwala, Haridwar Road, Dehradun 248 160, Uttarakhand |
|
|
|
|
Jewellery 3 : |
Plot No. 10 A, Sector 2, Integrated Industrial Estate, SIDCUL, Pantnagar, 263 153 District Udham Singh Nagar, Uttarkhand |
|
|
|
|
Precision Engineering Plants 1 : |
No.15 B, Bommasandra Industrial Area, Hosur Road, Anekal Taluka,
Bangalore - 562158, Karnataka, India |
|
|
|
|
Precision Engineering Plants 2 : |
Plot Nos. 27, SIPCOT Industrial Area, Hosur - 635126, Tamilnadu, India
|
|
|
|
|
Prescription
Eyewear Lens Laboratory: |
Plot No. 27, KIADB Industrial Area, Chikaballapur 562 101 Karnataka |
|
|
|
|
Overseas Branch Office : |
Unit No. 11 and 12, 20/F, Metro Loft No. 38, Kwai Hei Street, Kwai
Chung N T, Hong Kong |
|
Tel No.: |
00852 64716536 |
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. C.V. Sankar |
|
Designation : |
Chairman from 16th June 2014 |
|
|
|
|
Name : |
Mr. Hans Raj Verma, |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. N.S. Palaniappan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T.K. Arun |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Bhaskar Bhat |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Ishaat Hussain |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N.N. Tata |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T.K. Balaji |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C.G. Krishnadas Nair |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Vinita Bali |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Hema Ravichandar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Das Narayandas |
|
Designation : |
Director |
|
|
|
|
Name : |
Ms. Ireena Vittal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Harish Bhat |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
S. Subramaniam |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. A.R. Rajaram |
|
Designation : |
Head- Legal and
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2015
|
Category of
Shareholder |
No.
of Shares |
%
of No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
247476720 |
27.88 |
|
|
223531200 |
25.18 |
|
|
471007920 |
53.05 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
471007920 |
53.05 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
15757583 |
1.77 |
|
|
553453 |
0.06 |
|
|
715203 |
0.08 |
|
|
12142472 |
1.37 |
|
|
178380623 |
20.09 |
|
|
12514120 |
1.41 |
|
|
12514120 |
1.41 |
|
|
220063454 |
24.79 |
|
|
|
|
|
|
12881698 |
1.45 |
|
|
|
|
|
|
92698420 |
10.44 |
|
|
90761272 |
10.22 |
|
|
373396 |
0.04 |
|
|
364396 |
0.04 |
|
|
9000 |
0.00 |
|
|
196714786 |
22.16 |
|
Total Public
shareholding (B) |
416778240 |
46.95 |
|
Total (A)+(B) |
887786160 |
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) |
887786160 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the manufacturing and sale of watches, jewellery, precision engineering components, eyewear and accessories |
|
|
|
|
Products : |
Not Available |
|
|
|
|
Brand Names : |
Not Available |
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|
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Agencies Held : |
Not Available |
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|
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Exports : |
Not Divulged |
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|
|
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Imports : |
Not Divulged |
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|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
7558 (Approximately) |
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Bankers : |
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||||||||||||||
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Facilities : |
|
|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
|
|
|
|
Prompters : |
·
Tamilnadu Industrial Development Corporation
Limited ·
Tata Sons Limited |
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1200000000 |
Equity Shares |
Rs.1/- each |
Rs. 1200.000 Million |
|
4000000 |
Redeemable cumulative preference shares |
Rs.100/- each |
Rs.400.000 Million |
|
|
Total |
|
Rs.1600.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
887800000 |
Equity Shares |
Rs.1/- each |
Rs. 887.800
Million |
|
|
|
|
|
c) Rights,
preferences and restrictions attached to shares
The Company has only one class of equity shares. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval by the shareholders at the ensuing Annual General Meeting.
In the event of liquidation, the shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholdings.
d) Reconciliation of the
shares outstanding at the beginning and at the end of the year
|
PARTICULAR |
As on 31.03.2015 |
|
|
|
|
|
|
Equity shares with voting rights |
|
|
|
At the beginning of the year |
887.786 |
887.786 |
|
At the end of the year |
887.786 |
887.786 |
e) Shareholders
holding more than 5% shares in the Company
|
Name of shareholder |
As on 31.03.2015 |
|
|
|
No. of shares held |
% total holding |
|
Tamilnadu Industrial Development Corporation Limited |
2475 |
27.88 |
|
Tata Group |
|
|
|
Tata Sons Limited |
1351 |
15.22 |
|
Tata Steel Limited |
388 |
4.37 |
|
Tata Investment Corporation Limited |
172 |
1.94 |
|
Tata Chemicals Limited |
138 |
1.56 |
|
Tata Global Beverages Limited |
92 |
1.04 |
|
Ewart Investments Limited |
50 |
0.56 |
|
Tata International Limited |
26 |
0.29 |
|
Piem Hotels Limited |
18 |
0.20 |
|
Total - Tata Group |
2235 |
25.18 |
|
Jhunjhunwala Rakesh Radheshyam |
503 |
5.66 |
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 |
887.800 |
887.800 |
887.786 |
|
(b) Reserves & Surplus |
30032.300 |
24351.700 |
18760.917 |
|
(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) |
30920.100 |
25239.500 |
19648.703 |
|
|
|
|
|
|
(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 |
874.500 |
717.600 |
628.960 |
|
Total Non-current
Liabilities (3) |
874.500 |
717.600 |
628.960 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
997.900 |
8062.700 |
0.000 |
|
(b) Trade
payables |
19393.100 |
8577.100 |
20972.637 |
|
(c) Other
current liabilities |
3089.500 |
15480.200 |
14573.486 |
|
(d) Short-term
provisions |
3447.300 |
2992.300 |
2931.775 |
|
Total Current
Liabilities (4) |
26927.800 |
35112.300 |
38477.898 |
|
|
|
|
|
|
TOTAL |
58722.400 |
61069.400 |
58755.561 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
6798.600 |
5903.500 |
4402.196 |
|
(ii)
Intangible Assets |
33.700 |
58.900 |
84.179 |
|
(iii) Capital
work-in-progress |
549.300 |
328.700 |
416.624 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
326.300 |
265.700 |
185.090 |
|
(c) Deferred tax assets (net) |
196.700 |
93.500 |
80.378 |
|
(d) Long-term Loan and Advances |
2428.300 |
2178.400 |
1722.199 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
10332.900 |
8828.700 |
6890.666 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
40474.300 |
38672.000 |
36779.449 |
|
(c) Trade
receivables |
1873.500 |
1520.200 |
1637.909 |
|
(d) Cash
and cash equivalents |
2102.000 |
8889.200 |
11365.454 |
|
(e)
Short-term loans and advances |
3896.100 |
2992.200 |
1986.862 |
|
(f) Other
current assets |
43.600 |
167.100 |
95.221 |
|
Total
Current Assets |
48389.500 |
52240.700 |
51864.895 |
|
|
|
|
|
|
TOTAL |
58722.400 |
61069.400 |
58755.561 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
119032.100 |
109157.900 |
101126.708 |
|
|
Other Income |
705.800 |
1201.900 |
1007.709 |
|
|
TOTAL
(A) |
119737.900 |
110359.800 |
102134.417 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
78339.900 |
65556.100 |
67537.288 |
|
|
Purchases of Stock-in-Trade |
11239.400 |
15945.900 |
15550.954 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(2043.200) |
(995.700) |
(8128.842) |
|
|
Employees benefits expense |
6256.500 |
5344.900 |
4845.251 |
|
|
Other expenses |
13705.900 |
12822.300 |
11215.796 |
|
|
TOTAL
(B) |
107498.500 |
98673.500 |
91020.447 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
12239.400 |
11686.300 |
11113.970 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
806.600 |
871.100 |
506.400 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11432.800 |
10815.200 |
10607.570 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
873.900 |
655.900 |
544.889 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
10558.900 |
10159.300 |
10062.681 |
|
|
|
|
|
|
|
Less |
TAX (H) |
2328.200 |
2747.900 |
2810.871 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
8230.700 |
7411.400 |
7251.810 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD (K) |
9387.100 |
8313.900 |
6361.932 |
|
|
|
|
|
|
|
Add |
ON AMALGAMATION |
41.500 |
0.000 |
62.362 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
4693.500 |
4157.000 |
3181.000 |
|
|
Dividend |
2041.900 |
1864.400 |
1864.351 |
|
|
Tax on Dividend |
415.700 |
316.800 |
316.846 |
|
|
Total
(M) |
7151.100 |
6338.200 |
5362.197 |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S (J+K+L-M) |
10508.200 |
9387.100 |
8313.907 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
3582.400 |
2203.900 |
1973.149 |
|
|
Others |
7.500 |
7.300 |
5.228 |
|
|
TOTAL
EARNINGS |
3589.900 |
2211.200 |
1978.377 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials and Components |
4328.900 |
10026.700 |
28695.742 |
|
|
Stores parts |
178.600 |
106.200 |
101.686 |
|
|
Capital Goods |
415.200 |
256.900 |
205.998 |
|
|
TOTAL
IMPORTS |
4922.700 |
10389.800 |
29003.426 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
9.27 |
8.35 |
8.17 |
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 |
7227.100 |
(2661.400) |
8286.567 |
|
Net cash flows from (used in) operating activities |
5078.300 |
(5512.900) |
5529.645 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
6.91 |
6.79 |
7.17 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
10.28 |
10.71 |
10.99 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
18.32 |
16.83 |
17.33 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.34 |
0.40 |
0.51 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.03 |
0.32 |
0.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.80 |
1.49 |
1.35 |
STOCK
PRICES
|
Face Value |
Rs.1.00 |
|
Market Value |
Rs.351.00 |
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 |
887.786 |
887.800 |
887.800 |
|
Reserves & Surplus |
18760.917 |
24351.700 |
30032.300 |
|
Net
worth |
19648.703 |
25239.500 |
30920.100 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
0.000 |
8062.700 |
997.900 |
|
Total
borrowings |
0.000 |
8062.700 |
997.900 |
|
Debt/Equity
ratio |
0.000 |
0.319 |
0.032 |
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 |
101126.708 |
109157.900 |
119032.100 |
|
|
|
7.942 |
9.046 |
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 |
101126.708 |
109157.900 |
119032.100 |
|
Profit |
7251.810 |
7411.400 |
8230.700 |
|
|
7.17% |
6.79% |
6.91% |
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 |
No |
|
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 |
No |
|
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 |
UNSECURED LOAN
|
Unsecured Loan |
31.03.2015 (Rs.
in Million) |
31.03.2014 (Rs.
in Million) |
|
Short-term
borrowings |
|
|
|
Loans repayable on demand from banks |
0.000 |
2000.00 |
|
Total
|
0.000 |
2000.00 |
FINANCIAL RESULTS
The economic outlook for the year 2014-15 was promising while improvement in consumer demand was quite lukewarm. The Company’s jewellery business was also impacted due to regulatory changes and termination of the consumer friendly Golden Harvest Scheme. The Company’s brands witnessed good growth during the first half, while in the later half it witnessed a decline due to the absence of the Golden Harvest Scheme which used to contribute about 30% of the Jewellery Division’s revenues. The Company will however continue to invest in strategic initiatives taking into account its long term and sustainable growth plans.
During the year, the Company’s sales income grew by 8.96% to Rs.119367.100 Million compared with Rs.109551.400 Million in the previous year. Profit before tax grew by 3.93 % to Rs.10558.900 Million and the net profit grew by 11.05% to Rs.8230.700 Million. This performance came in the backdrop of an environment where the consumer sentiment did not pick up as expected. The strength of Company’s brands contributed to sales growth across all retail formats of watches, jewellery and eyewear.
The Watches business of the Company recorded an income of Rs.19210.400 Million, a growth of 7.27%, which was achieved through meticulous planning and execution of key initiatives. The income from Jewellery segment grew by 9.24% touching Rs.94299.700 Million. The income from other segments comprising Precision Engineering, a B2B Business, the Eyewear Business and accessories grew by 12.91% to Rs.5643.100 Million.
The year witnessed aggressive expansion of the Company’s retail network with a net addition of 123 stores. As on 31st March 2015, the Company had 1201 stores, with over 1.59 million square feet of retail space delivering a retail turnover of just under Rs.120000.000 Million. The Management Discussion and Analysis report, which is attached, dwells into the performance of each of the business division and the outlook for the current year.
INTERNATIONAL
OPERATIONS
The Watches exports registered a handsome growth of 12% to clock a turnover of Rs.1377.600 Million against a backdrop of several headwinds in international markets. The business sustained its targeted investments in retail and brand building in key, large markets. The presence of Titan in modern retail is adding to both image and business. Entry into In-flight sales through Singapore Airlines paves way for a new route to building the brand. Vietnam, UAE and Malaysia lead the growth stories while Indonesia, Nigeria, Philippines and SAARC markets hold promise for future.
FINANCE
The Jewellery Division of the Company was successfully operating customer schemes for jewellery purchases for many years. As on1st April 2014, the Company had around seven lakhs subscribers contributing to these schemes. These schemes were not covered under the Companies Act, 1956 relating to acceptance of public deposits as such schemes were exempt from the definition of deposits. However, under the Companies Act, 2013 (the “Act”) and Regulations made there under (‘Deposit Regulations’) the scope of the term “deposit” has been enlarged and therefore a view has been taken that the jewellery purchase schemes offered by the Company to its customers will be treated as public deposits. In these circumstances, the Company discontinued fresh enrolment of subscribers and initiated steps to close the current customer schemes, which were wound down by 31st August 2014.
Under the Deposit Regulations, a company is permitted to accept deposits subject to applicable provisions, to the extent of 25% of the aggregate paid-up share capital and free reserves from public and 10% of the aggregate paid-up share capital and free reserves from Members of the company, after prior approval by way of a Special Resolution passed by the Members in this behalf. In pursuance thereof, a Postal Ballot was conducted during August/September 2014 and requisite approval was obtained from the Members of the Company and a new customer scheme for jewellery purchase was launched in November 2014 in compliance with the Deposit Regulations.
MANAGEMENT DISCUSSION
AND ANALYSIS
THE ECONOMY
Despite a better economic outlook, the year gone by witnessed lukewarm demand improvement as consumer sentiment did not exactly pick up the way it was expected to. The market saw significant disruption by E commerce players trying to build their share in each category. Regulation of gold imports, funding and sales transactions severely affected the industry despite some marginal roll back. Unemployment, especially of youth continues to affect both demand for youth products and general sentiment amongst families where they are significant wage earners.
GDP growth is expected to increase to 6.3% (as per old CSO workings) in the current fiscal 2015-16 from an estimated GDP growth in 2014-15 of 5.5%. Consumer Price Inflation is falling steadily and is averaging around the 6% mark. RBI reduced rates reflecting its confidence on controlled inflation. Raw material prices have been declining internationally, across most commodities and sectors. This will also put downward pressure on future inflation levels and also shield the Rupee from extreme volatility on account of lower oil prices and hence the Current Account Deficit. Overall Indian consumer confidence has already risen to 125+ levels (Nielsen Survey of Consumer Confidence Index), which is the highest amongst all countries worldwide. This is significantly higher than last year, however lower than the peak Indian consumer confidence levels achieved a decade ago, when the economy was growing at nearly 9%. Growing aspirations and positive sentiment of consumers going forward, basis strong government and good macro-economic indicators such as low inflation and stable rupee are expected to drive discretionary spends up. A large untapped opportunity has emerged in middle India towns (tier 3 & 4) where consumer aspirations are comparable to tier 1 & 2 towns, but access is restricted. This is now being further tapped by the rapid rise in E & M-commerce, fuelled by smart phone penetration.
Growing economic independence and rise of working women segment is leading to greater demand for our brands like Tanishq and Raga. Youth segment is large and their aspirations are growing rapidly as well, hence with Fastrack and Sonata Superfibre, the Company is well placed to tap this opportunity.
Rising fashion quotient and expressive lifestyles amongst the middle and upper-middle class segments is also a favourable factor for the Company’s products and brands. E-commerce has grown substantially last year backed by an almost endless amount of foreign capital. The Company is seeing this both as an opportunity for its brands to tap a new channel and a potential disruption to the exclusive brick and mortar retail stores.
WATCHES &
ACCESSORIES DIVISION
OVERVIEW
The Watches and Accessories Division turned in a reasonably good performance despite a challenging environment. The economy remained sluggish, consumer sentiment was weak, the retail environment remained one where deep discounts were doled out to attract consumers and watches as a category lacked consumer appeal compared to categories like apparel, mobile phones, laptops, etc. In such a scenario, Titan and its portfolio of brands, maintained its market share in the organized watch market recording an overall value growth of 6%.
INDEX
OF CHARGES
CONTINGENT
LIABILITIES:
Contingent liabilities not provided for - Rs.2979.300 Million (2014: Rs.2335.700 Million) comprising of the following:
Sales Tax - Rs.255.700 Million (2014: Rs.250.000 Million) (relating to the applicability of rate of tax, computation of tax liability, submission of certain statutory forms)
Customs Duty - Rs.46.700 Million (2014: Rs.31.700 Million) (relating to compliance with the terms of notification, exemptions, export obligations)
Excise Duty - Rs.1934.800 Million (2014: Rs.1516.300 Million) (relating to denial of exemption by amending the earlier notification, computation of the assessable value, denial of input credit on service tax and excise duty on jewellery)
Income Tax - Rs.685.000 Million (2014: Rs.491.400 Million) (relating to disallowance of deductions claimed) Others - Rs.57.100 Million (2014: Rs.46.300) (relating to miscellaneous claims)
The above amounts are based on the notice of demand or the Assessment Orders or notification by the relevant authorities, as the case may be, and the Company is contesting these claims with the respective authorities. Outflows, if any, arising out of these claims would depend on the outcome of the decisions of the appellate authorities and the Company’s rights for future appeals before the judiciary. No reimbursements are expected.
INDEX OF CHARGES:
|
S. No |
Charge ID |
Date of Charge Creation /Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN |
|
1 |
10451443 |
10/09/2013 |
18,565,000,000.00 |
CANARA BANK |
PRIME CORPORATE BRANCH, NO.25, SHANKARANARAYANA
BLDG M.G ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
B85906733 |
|
2 |
10158230 |
21/05/2009 * |
244,000,000.00 |
HSBC BANK (MAURITIUS) LIMITED |
6TH FLOOR, HSBC CENTRE, CYBER CITY, EBENE,
- 000000, MAURITIUS |
A63005292 |
|
3 |
80042817 |
08/10/2004 |
250,000,000.00 |
INDIAN BANK |
CREDIT DEPARTMENT, 110 M G ROAD,
BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
4 |
80033180 |
27/08/2004 |
250,000,000.00 |
ORIENTAL BANK OF COMMERCE |
26 HJS CHAMBERS, RICHMOND ROAD, BANGALORE,
KARNATAKA - 560025, INDIA |
- |
|
5 |
90007139 |
18/08/2003 |
110,000,000.00 |
CANARA BANK |
CORPORATE SERVICE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
6 |
90007127 |
09/07/2003 |
100,000,000.00 |
CANARA BANK |
CORPORATE SERVICE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD, BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
7 |
90007106 |
26/03/2003 |
167,000,000.00 |
BANK OF BARODA |
CORPORATE BANKING BRANCH H.J.S. CHAMBERS, 1ST
FLOOR 26; RICHMOND ROAD, BANGALORE, KARNATAKA - 560025, INDIA |
- |
|
8 |
90007085 |
22/11/2002 |
200,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA,
BUILDING |
- |
|
9 |
90007071 |
17/09/2002 |
200,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD,
BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
10 |
90154815 |
06/06/1996 |
825,000.00 |
THE JANAKALYAN SAHAKARI BANK LIMITED |
VIVEK DARSHAN; OPP. BHAKTI BHAVAN,
CHEMBUR, BOMBAY, MAHARASHTRA - 400071, INDIA |
- |
|
11 |
90153280 |
20/05/1996 |
75,000.00 |
THE JANAKALYAN SAHAKARI BANK LIMITED |
VIVEK DARSHAN; OPP. BHAKTI BHAVAN,
CHEMBUR, BOMBAY, MAHARASHTRA - 400071, INDIA |
- |
|
12 |
90006470 |
17/04/2002 * |
20,000,000.00 |
CANARA BANK |
TRINITY CIRCLE BRANCH SHANKAR NARAYANA
BUILDING, 25 M.G. ROAD,
BANGALORE, KARNATAKA - 560001, INDIA |
- |
|
13 |
90006469 |
05/06/2012 * |
26,000,000,000.00 |
CANARA BANK (LEADER) |
PRIME CORPORATE BRANCH SHANKAR NARAYANA
BUILDING, NO. 25, M.G.ROAD,
BANGALORE, KARNATAKA - 560001, |
B42427294 |
|
14 |
90006451 |
02/09/1988 * |
131,250,000.00 |
CANARA BANK |
112; J.C.ROAD, BANGALORE, TAMIL NADU -
560002, INDIA |
- |
|
* Date of charge modification |
||||||
FIXED ASSETS
- Land
- Building
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipment
- 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.63.46 |
|
|
1 |
Rs.98.47 |
|
Euro |
1 |
Rs.70.69 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ART/JYTK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILITY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
75 |
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.