premier car
Content
Introduction
Established in 1944, Premier Ltd. (Formerly know as The Premier Automobiles Ltd.) went on to become the pioneer of automobile manufacturing in India. Today, Premier Ltd. is on a constant growth curve, rapidly gaining stature in both its segments : Engineering and Automotive. The Engineering segment has two activities - CNC Machine Division and Engineering while the Automotive segment consists of Light Utility Vehicles and Sports Utility Vehicles. Originally based in Mumbai, Premier Ltd. relocated to its present, ultra-modern, ISO 9001 certified plant at Chinchwad, Pune. Spread over 27 acres, this plant now serves as the centralized research, development and manufacturing for all activities.
Engineering
Sensing the trend of the future for energy generation, Premier‟s engineering division has turned a sharp focus on alternative energy sources – specifically, the wind energy sector. Accordingly, it went on to develop and manufacture cuttingedge wind turbine components for companies such as Enercon. In fact, Premier‟s engineering division provides end-to-end solutions for wind turbine component manufacturing. This includes fabrication, machining, blasting and painting of wind turbine steel parts like disc rotors, stator rings, stator carriers, rotor housings and supporting structures.
Machine Tool
Premier‟s CNC Machine Division has consistently distinguished itself by setting new benchmarks for industry excellence. Today, the company‟s focus on high-end technology has resulted in a sophisticated line of CNC Machine Division. Today, CNC Gear Cutting machines, Machining Centers, CNC Vertical Turning & Turn
mill Centers and custom-built Special Purpose Machines bearing the trusted Premier label are regularly used by leading industries.
Automotive
Premier gave India the ubiquitous Premier Padmini. Today, Premier‟s automotive division has reentered the passenger vehicle segment with the launch of India's first compact SUV – the RiO. Other products in the newly launched range of commercial vehicles designed specifically for Indian roads are : Sigma - a compact, multi-utility van, and Roadstar - a highly versatile pickup truck. Other Details: Listed on BSE and NSE. Current market capitalization is Rs287Cr as on 15-Jul-11. Current Stock price is Rs93/- as on 15-Jul-11 Premier Ltd. (formerly The Premier Automobiles Ltd.), declared a dividend of 27% for the year ended 31st March ‟11. During the year, Gross Sales increased by 42%, EBITDA was higher by 58% and Profit after Tax increased by 11%.
Milestones
Chairman's Desk
Dear Shareholders, Your Companyʼs performance for the year under review has been quite satisfactory as elaborated in the Management Discussion and Analysis Report. Based on this result the Board of Directors felt it appropriate to maintain the dividend at 27%. . Premier has come a long way in the last 5 years. Sales have grown by nearly 329% and operating profits by 496%. Dividends have consistently been paid and increased from 15% to 27% today. This is far removed from the difficult, uncertain and loss period that your Company faced between 1998 and 2005. It is now fair to say that your Company has achieved a strong, sustained resurgence and is poised for robust growth in the next 5 years.
During the past year, the Engineering segment continued to be the mainstay of your Companyʼs sales and profits. We have made significant investments in CNC machine design and development. This has resulted in greatly upgrading our existing product range as well as adding new, high technology machines created entirely in-house. We are also evaluating options to acquire a company in Europe to widen Premierʼs geographical presence in CNC machines, thereby generating cost saving synergies by manufacturing in India.
The Engineering division that makes several large components for the wind turbine and infrastructure sectors is growing robustly. Started only 3 years ago, this division has already reached an economic activity level of about ` 130 crores which we expect will grow to nearly ` 500 crores in the next 3 to 5 years. The highly complex nature of its activities results in both strong profit margins and entry barriers for competition. Last year saw the launch of our new compact SUV called Premier RiO. This has created an entirely new segment in the market and currently has no direct competition. During the course of the year considerable time and effort was invested in fine tuning the product as per customer expectations. In that sense the last year was more of a pilot production phase and we expect to ramp up sales in 2011-12. The Company has 218 acres of land in Dombivli, near Mumbai. We are in the process of monetizing this asset either through a sale or development. The management plans to use these financial resources towards growing our core activities; more particularly the Engineering segment. We are hopeful that this should materialize during 2011-12. Our relations with the union remain very cordial. During the year, we concluded a 3 year wage settlement in a timely, peaceful and amicable manner. In fact, the
union, on its own, has opted to reject any external affiliations preferring to be internally run by our own workers. Your Company follows a year round training program for all officers and workers. Consequently, we now attract new recruits from the top most educational institutions such as the College of Engineering Pune, etc. The Company, supported by the Promotersʼ Trust, has an active Corporate Social Responsibility (CSR) program including scholarships for employeesʼ children, tree planting, blood donation drives, eye camps and a variety of other community activities. The greatest challenges we face in the next couple of years is to progressively reduce the Companyʼs long term debt and interest cost without affecting growth. The other important issue is to raise the Premier RiOʼs volumes to start achieving profitability and increased turnover in the automotive segment. I see 2011-12 as a year of consolidation while maintaining at least a 20% growth target. I take this opportunity to thank all our stake holders: shareholders, employees and business associates for their continued commitment and support. I wish them all the very best for the next year. With regards, Maitreya Doshi Chairman
Board of Directors
Maitreya Doshi Chairman & Managing Director
Mr. S. Padmanabhan IAS (Retd.) / Advisor
Mr. Asit Javeri
Industrialist
Mrs. Rohita Doshi Computer Engineer
Mr. Rohan Shah Solicitor
Dr. Udo Weigel Machine Tool Technologist
Mrs. Kavita Khanna Management Consultant
Mr. Dilip J. Thakkar Chartered Accountant
Corporate Social Responsibility
As Milton Friedman‟s adage goes, “The business of business is business”. Over time, this view has drastically changed. In fact, if you look at the recent Economic Times Awards for Corporate Excellence held in January 2011, India Inc. is taking philanthropy to the next level, by integrating social issues into their business strategies. This highlights the importance of Corporate Social Responsibility (CSR), not just as an act of benevolence, but to sustain the creation of wealth in the corporate context. “The size of endowments has changed remarkably in 2010, making the world sit up and take notice,” says Pranab Mukherjee, Finance Minister (India). We, at Premier, have not only kept in line with this trend, but have also been ahead of our time in some aspects. Reflecting the vision of the Vinod Doshi group, Premier‟s Chairman and Managing Director, Mr. Maitreya Doshi, who is also managing trustee of the „Shri Lalchand Hirachand Premier Trust‟, a public charity trust named after the eminent industrialist. The group donates every year to support education, health and cultural activities. Premier Ltd. does not contribute company funds towards the Trust‟s corpus. The two activities are kept separate. While Premier‟s focus is to create stakeholder value, our CSR initiatives focus on our people and of course, a greener planet (something that we all need to invest in today). Last year, saw several such initiatives from both the Trust and Premier Ltd. in these arenas : Proud Executive SUV. Rugged Off-road Adventurer. Funky Party Ride. The RiO gives you more. Fantastic looks with a tail mounted spare wheel. A diesel engine that won't empty your wallet. The fun of a rear wheel drive. Easy driveability. Fully loaded. At an excellent price..... An extraordinary combination !
Exterior Interior Instrument Panel Comfort Safety & Security
Exterior
MODEL DIESEL EX EXTERIOR Headlamp leveling device ORVM (Electrically operated) Tailgate opener, key type Windscreen wiper, 2-speed + 1-speed intermittent Large thin combined tail lamp Side claddings Rear wiper + washer Rear window demister Tinted glass window Rear fog lamp Black colored B-pillars DX LX PETROL GX GLX
205 / 70 R15 Alloy / Steel Steel wheels (tubeless) Roof Rails (optional)
Steel
Alloy Steel
Alloy
* Features are subject to change without prior notice. * LX Model also available without ABS
DIESEL MODEL SAFETY & SECURITY ABS with EBD Seat belts, front 3-point ELR with pretensioners Seat belts (rear) High mounted stop lamp Child lock (rear door) Keyless entry Side impact beams Brake assist
PETROL EX DX LX GX GLX
Technical Specifications -Diesel / CNG - Sigma Tourist Vehicle Type Type of Vehicle Control Drive Dimensions (mm) Overall Length Overall Width Overall Height Wheel Base Track - Front Track - Rear Ground Clearance Weights (kgs) 3695 1475 1940 2000 1290 1300 190 1.4 Non A/C Kerb Weight GVW 1000/1030 1815 1.4 Turbo A/C 1035/1065 1850 CNG Non A/C 1110 1750 A/C 1145 1750 Multi Purpose Vehicle Full Forward Control Rear Wheel Drive
Engine Type
1.4 IDI Diesel
1.4 Turbo IDI Diesel
CNG 4ZB1, Carburetor/CNG O.H.C
Cylinders Bore x Stroke (mm) Displacement (cc) Compression Ratio Maximum Power RPM ) (HP
4, In-line 77 x 80 1489 23:1 @ 56.6 @ 5000
4, In-line 77 x 80 1489 23:1 64.7 @ 4000
4, In-line 84 x 82 1817 8.5:1 54 @ 4600
Maximum Torque (NM @ 97 RPM) Steering Type Turning Circle Radius Suspension Front 2000/3000
@ 140 2250/3000
@ 95 @ 3000
Rack & Pinion 4.3 m
McPherson strut with coil spring and independent stabilizer bars
Rear
Leaf spring with shock absorbers
Transmission Type Gear Ratios 5 speed manual 1st - 4.12/3.736 2nd - 2.17/1.963 3rd - 1.5/1.363 4th - 1.0/1.0 5th - 0.86/0.775 Rev - 3.7/3.402 Final Drive Ratio Clutch Type Wheels & Tyres Wheels Tyres Brakes Front Rear Disc Drum 5B X 13 / 4 1/2 J X 13 165 R13 LT 8 PR / 155 R13 LT 8 PR Dry, Single plate, Diaphragm 4.1
Capacity Seating Fuel Tank (Litres)
1.4 / 1.4 Turbo 5/ 7/ 8/ 9 38
CNG 5/ 7 90 (~14 Kg)Augmented by
5 litres. petrol tank Emission Norms Bharat Stage III
Roadstar Pick-Up
1520 kgs payload capacity with 3-way opening deck 4 cylinder, 56HP, fuel efficient diesel engine with best in class pickup 5 Speed Transmission Mileage of 16.3 kmpl High ground clearance of 225 mm with 14" radial tyres Very low turning radius Maximum speed of upto 100 kmph
FINANCIAL DETAILS
(All figs are in Cr) Particulars Sales Turnover Gross Profit Profit Before Tax Adjusted Net Profit Equity Dividend % Mar-11 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 243.11 34.74 23.06 18.45 27.00 158.59 26.49 20.17 16.30 27.00 137.19 19.20 15.89 13.73 25.00 119.30 21.93 19.16 20.91 25.00 89.14 56.78 55.07 5.82 20.00 147.65 24.99 23.78 18.42 15.00
Contact
Head Office Premier Ltd 58, Nariman Bhavan, Nariman Point, Mumbai 400021, India. Tel: +91-22-6117 9009, Fax: +91-22-6117 9003 Regional Office Premier Ltd. Mumbai Pune Road, Chinchwad, Pune 411019, INDIA Tel: +91-20-66310000 Fax:+91-20-66310371 Board of directors: Maitreya Doshi – Chairman
Premier Ltd. – Fixed Deposit Scheme
Scheme (A) –Non Cumulative Scheme (B) – Cumulative
Quarterly Income Plan
Period
Min Amt
ROI *
Period Min Amt 24M 36M
ROI ** Maturity Yield Value 12.12% 13.50%
24M 36M
25000 11.00% 25000 11.50%
25000 11.00% 31,060 25000 12.00% 35,128
*Interest Payable Quarterly ** Interest Compound Quarterly
Profit & Loss - Premier Ltd.
Mar'11 Mar'10 Mar'09 Mar'08 Mar'07
12 Months 12 Months 12 Months 12 Months 12 Months
INCOME:
Sales Turnover Excise Duty
NET SALES
243.11 15.93 227.18 0.00 232.80
158.59 8.35 150.25 0.00 152.43
137.22 7.84 129.38 0.00 131.10
119.32 12.72 106.60 0.00 109.28
89.17 10.49 78.67 0.00 87.27
Other Income
TOTAL INCOME
EXPENDITURE:
Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made
TOTAL EXPENDITURE
4.44 119.17 31.76 2.35 16.86 -5.94 0.00 168.64 58.54 64.16 11.68 0.00
3.73 86.48 26.31 1.99 12.73 -17.14 0.00 114.10 36.15 38.33 6.32 0.00
3.63 74.00 24.72 0.00 13.61 -12.70 0.00 103.25 26.13 27.85 3.32 0.00
3.97 49.51 24.79 2.07 10.27 -3.53 0.00 87.09 19.52 22.20 2.77 0.01
2.47 45.09 16.96 2.53 9.52 -2.93 0.00 73.62 5.05 13.64 1.71 0.33
Operating Profit
EBITDA
Depreciation Other Write-offs
EBIT
52.48 30.02 22.46 5.32 17.14 1.20 0.10 0.00 18.45
32.01 12.32 19.69 4.18 15.51 1.12 0.00 0.00 16.63
24.53 8.28 16.25 2.68 13.57 0.08 -0.0 0.00 13.61
19.42 6.24 13.18 2.41 10.77 5.83 6.82 -0.0 23.41
11.60 7.52 4.07 6.83 -2.75 42.99 8.01 0.00 48.24
Interest
EBT
Taxes
Profit and Loss for the Year
Non Recurring Items Other Non Cash Adjustments Other Adjustments REPORTED PAT
KEY ITEMS
Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs)
EPS - Annualised (Rs)
0.00 8.20 26.97 303.73 6.07
0.00 8.20 26.97 303.73 5.48
0.00 7.59 24.97 303.73 4.48
0.00 7.01 24.97 280.55 8.35
0.00 5.21 19.97 260.68 18.51
Premier- Key Fundamentals
Market Cap (Rs Cr.) EPS - TTM (Rs) P/E Ratio (x) Face Value (Rs) Latest Div. (%) Div. Yield (%) Book Value / sh. (Rs) P/B Ratio (x) : : : : : : : : 214 5.37 13.22 10.00 27.00 3.83 64.92 1.09
Industry Competitors: Engineering - General
SYMBOL GEI Industrial Systems Ltd. Petron Engineering Construction LG Balakrishnan & Bros Ltd. Hindustan DorrOliver Ltd. Commercial Engineers & Body Buil Electrotherm (India) Ltd. PRICE 129.95 275.95 306.80 25.50 47.70 %CHANGE 1.40% 4.99% 2.49% 3.77% 0.73% VOLUME 24433 1448 1511 52449 24422
140.30
4.97%
1982
Manugraph India Ltd. Shanthi Gears Ltd. Ion Exchange (India) Ltd. Kalindee Rail Nirman (Engineers) McNally Bharat Engineering Compa
50.30 35.50 99.70 93.40
1.85% 1.38% 4.95% 11.80%
8628 33356 23096 347639
105.35
2.18%
6903
Premier- Comparative Analysis
Premier Ltd. BSE Smallcap CNX NIFTY JUNIOR Today 0.68% 1.14% 1.52% 1 Month 8.49% 8.97% 5.96% 3 Months 8.37% 14.15% 8.32% 1 Year 46.5% 40.36% 27.57% 3 Years 91.95% 72.11% 120.1%
Financial Results
The financial performance of the Company for the financial year ended 31st March 11, is summarized below: Rs. (Lakhs) 2010-11 Profit (from operations) before Depreciation, Interest & Tax Less: Interest Depreciation Profit (from operations) before Tax Less: Provision for Current Taxation Profit after tax Add: Balance in Profit and Loss Account Amount Available for Appropriation Appropriations: Dividend on Equity Shares Tax on dividend General Reserve Balance carried to Balance Sheet 820.06 136.20 200.00 2111.63 1423.19 820.06 139.37 175.00 2009-10
6040.38
3812.53
2506.96 1167.63 2365.79 521.09 1844.70 1423.19 3267.89
1099.81 632.19 2080.53 417.59 1662.94 894.68 2557.62
During the year under review, the Company has shown a rise of 42% in gross sales to Rs. 244 crores. The profit before depreciation, interest and tax has gone up by 58% to Rs. 60.40 crores from Rs. 38.13 crores in the previous year. 2. Dividend The Directors recommend the dividend at 27% (i.e. Rs. 2.70 per share) on equity shares for the year ended on 31st March 11. The payment of dividend will be subject to the approval of the shareholders at the ensuing annual general meeting. 3. Operations and Management Discussion & Analysis
The current years operations are covered in the Management Discussion and Analysis Report. This Management Discussion and Analysis Report, as stipulated under Clause-49 of the Listing Agreement with the Stock Exchanges, is presented in a separate section forming part of this annual report. 4. Corporate Governance The Report on Corporate Governance, as stipulated under Clause 49 of the Listing Agreement, forms part of this Annual Report. 5. Directors
Mr. Rohan Shah and Dr. Udo Weigel retire by rotation in accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company and being eligible, offer themselves for reappointment. 6. Directors Responsibility Statement as required under Section 217(2AA) of the Companies Act, 1956 The Directors state that (i) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; (ii) the directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year covered under this Report and of the profit of the Company for the year; (iii) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) the directors had prepared the annual accounts on a going concern basis. In terms of the requirement of Accounting Standards, segment-wise results are shown in the notes to accounts. 7. Conservation of energy, technology absorption & foreign exchange earnings & outgo The details as required under the Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988 are provided in the annexure to the Directors Report. 8. Fixed Deposits
The Company has accepted the fixed deposits by filing a statement in lieu of advertisement under Section 58A of the Companies Act, 1956 and has complied with all the regulatory requirements At the end of the year, there were no unclaimed/overdue deposits. 9. Particulars of Employees
In terms of notification dated 31-03-2011 issued by the Ministry of Corporate Affairs, Government of India, there are no employees covered under section 217 (2A) of the Companies Act, 1956, in respect of whom, the particulars are required to be given.
Financial Graph (Year Wise)
Yearly Sales Turnover Gross Profit Profit before Tax Net Profit
11-Mar 243.11 34.74 23.06 18.45
10-Mar 158.59 26.49 20.17 16.3
9-Mar 137.19 19.2 15.89 13.73
8-Mar 119.3 21.93 19.16 20.91
250 200
158.59
243.11
150 100
137.19 119.3
21.93
20.91 19.2
15.89 13.73
50 0
26.49 20.17
34.74 16.3 18.45 23.06
19.16
8-Mar Sales Turnover
9-Mar Gross Profit
10-Mar Profit before Tax
11-Mar Net Profit
RiO PETROL EX- SHOWROOM PRICES IN LACs
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Pune PCMC MUMBAI Auangabad Amravati Sangli Latur Ahmadnagar Solapur Karad Delhi GOA Hydeabad Chennai Vizag Trissur Salem Trivendrum Pattukottai Indore Punjab Haryana Bhubneshwar Muzzafarpur Nagaland Itanagar Guwahati LOCATION GX (Grey Interior) 4.79 4.70 4.95 4.72 4.74 4.72 4.72 4.71 4.71 4.71 4.90 4.82 4.97 5.02 4.99 4.96 4.99 4.93 5.05 4.92 4.96 4.97 5.09 5.08 5.22 5.19 5.18 GLX ( Grey Interior) 5.25 5.15 5.42 5.17 5.19 5.17 5.17 5.16 5.16 5.16 5.36 5.28 5.44 5.49 5.46 5.42 5.46 5.39 5.52 5.39 5.42 5.42 5.56 5.55 5.68 5.65 5.64 GX ( Beige Interior ) 5.03 5.03 5.29 5.05 5.07 5.05 5.05 5.04 5.04 5.04 5.24 5.16 5.31 5.36 5.33 5.30 5.33 5.26 5.39 5.27 5.30 5.30 5.44 5.42 5.56 5.52 5.57 GLX ( Beige Interior ) 5.57 5.57 5.86 5.59 5.61 5.59 5.59 5.58 5.58 5.58 5.79 5.71 5.87 5.92 5.90 5.85 5.90 5.81 5.95 5.82 5.84 5.84 6.00 5.98 6.11 6.07 6.13
28 29 30
Kolkata Rajkot Rewa
4.98 4.99 5.04
5.44 5.46 5.51
5.32 5.34 5.39
5.87 5.90 5.94
RESEARCH DESIGN
This study is a mix of explorative and formal methodologies adopting monitoring and observing to study the dealerships in Sagar and communication to elicit responses from customers. This is a cross sectional study done during the months March-May.
SOURCE OF DATA
The report has been prepared as per the information obtained from two sources. They are: Primary data Secondary data
1. PRIMARY DATA :
The primary data is that which details we collect first time from the market and also used first time in the research. To collect the primary data structured non disguise questionnaire is prepared. Primary Data was very crucial to collect so as to know various past & present consumer views about Cars/Commercial Vehicles and to calculate the market share of this brand in regards to other brands. Fresh primary data was collected by taking direct filling of a questionnaire from customer which involved face to face, all the premier customer who visited the dealership showroom for the service of their Cars/Commercial Vehicles were questioned in order to find out the behavior of customer.
2. SECONDARY DATA: Secondary data are those which has been collected by some one else and which already have been passed through statistical process. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire. Secondary data has been taken from internet, newspaper, magazines and companies web sites.
DATA COLLECTION METHOD
Researcher instruments is the tool by which the researcher can do research on specific problems or objective. The most popular researcher instrument for collection data is “Questionnaire” for a particular investigation. It is simple for a moiled set of questions presented to respondents for their answers. Due to this flexibility, it is most common instrument used to collect the primary data. During the pre- testing of questionnaire, I seen the reaction of respondents and suggestions required to make change in research instrument.
SAMPLE DESIGN
Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose. For the customer satisfaction study a sample of 30 persons was chosen from the Premier dealership in Sagar.
SAMPLING PLAN:
Data collected has been analyzed and interpreted by using simple percentage method and finally the data is presented in graphs and charts.
SAMPLING FRAME:
Customers visiting showrooms for servicing their motorcycles
Shopping malls, Supermarket, Markets, College parking etc
SAMPLE SITE:The survey was conducted in Sagar city.
SAMPLING UNIT:It means “Who is to be surveyed”. Here target population is decided and it is who are interested to purchase “Cars/Commercial Vehicles” and sampling frame is developed so that every one in the target population has known chance of being sampled. So the survey is conducted particularly in Sagar City.
Established in 1944, Premier Ltd. (Formerly know as The Premier Automobiles Ltd.) went on to become the pioneer of automobile manufacturing in India. Today, Premier Ltd. is on a constant growth curve, rapidly gaining stature in both its segments : Engineering and Automotive. The Engineering segment has two activities - CNC Machine Division and Engineering while the Automotive segment consists of Light Utility Vehicles and Sports Utility Vehicles. Originally based in Mumbai, Premier Ltd. relocated to its present, ultra-modern, ISO 9001 certified plant at Chinchwad, Pune. Spread over 27 acres, this plant now serves as the centralized research, development and manufacturing for all activities.
Engineering
Sensing the trend of the future for energy generation, Premier‟s engineering division has turned a sharp focus on alternative energy sources – specifically, the wind energy sector. Accordingly, it went on to develop and manufacture cuttingedge wind turbine components for companies such as Enercon. In fact, Premier‟s engineering division provides end-to-end solutions for wind turbine component manufacturing. This includes fabrication, machining, blasting and painting of wind turbine steel parts like disc rotors, stator rings, stator carriers, rotor housings and supporting structures.
Machine Tool
Premier‟s CNC Machine Division has consistently distinguished itself by setting new benchmarks for industry excellence. Today, the company‟s focus on high-end technology has resulted in a sophisticated line of CNC Machine Division. Today, CNC Gear Cutting machines, Machining Centers, CNC Vertical Turning & Turn
mill Centers and custom-built Special Purpose Machines bearing the trusted Premier label are regularly used by leading industries.
Automotive
Premier gave India the ubiquitous Premier Padmini. Today, Premier‟s automotive division has reentered the passenger vehicle segment with the launch of India's first compact SUV – the RiO. Other products in the newly launched range of commercial vehicles designed specifically for Indian roads are : Sigma - a compact, multi-utility van, and Roadstar - a highly versatile pickup truck. Other Details: Listed on BSE and NSE. Current market capitalization is Rs287Cr as on 15-Jul-11. Current Stock price is Rs93/- as on 15-Jul-11 Premier Ltd. (formerly The Premier Automobiles Ltd.), declared a dividend of 27% for the year ended 31st March ‟11. During the year, Gross Sales increased by 42%, EBITDA was higher by 58% and Profit after Tax increased by 11%.
Milestones
Chairman's Desk
Dear Shareholders, Your Companyʼs performance for the year under review has been quite satisfactory as elaborated in the Management Discussion and Analysis Report. Based on this result the Board of Directors felt it appropriate to maintain the dividend at 27%. . Premier has come a long way in the last 5 years. Sales have grown by nearly 329% and operating profits by 496%. Dividends have consistently been paid and increased from 15% to 27% today. This is far removed from the difficult, uncertain and loss period that your Company faced between 1998 and 2005. It is now fair to say that your Company has achieved a strong, sustained resurgence and is poised for robust growth in the next 5 years.
During the past year, the Engineering segment continued to be the mainstay of your Companyʼs sales and profits. We have made significant investments in CNC machine design and development. This has resulted in greatly upgrading our existing product range as well as adding new, high technology machines created entirely in-house. We are also evaluating options to acquire a company in Europe to widen Premierʼs geographical presence in CNC machines, thereby generating cost saving synergies by manufacturing in India.
The Engineering division that makes several large components for the wind turbine and infrastructure sectors is growing robustly. Started only 3 years ago, this division has already reached an economic activity level of about ` 130 crores which we expect will grow to nearly ` 500 crores in the next 3 to 5 years. The highly complex nature of its activities results in both strong profit margins and entry barriers for competition. Last year saw the launch of our new compact SUV called Premier RiO. This has created an entirely new segment in the market and currently has no direct competition. During the course of the year considerable time and effort was invested in fine tuning the product as per customer expectations. In that sense the last year was more of a pilot production phase and we expect to ramp up sales in 2011-12. The Company has 218 acres of land in Dombivli, near Mumbai. We are in the process of monetizing this asset either through a sale or development. The management plans to use these financial resources towards growing our core activities; more particularly the Engineering segment. We are hopeful that this should materialize during 2011-12. Our relations with the union remain very cordial. During the year, we concluded a 3 year wage settlement in a timely, peaceful and amicable manner. In fact, the
union, on its own, has opted to reject any external affiliations preferring to be internally run by our own workers. Your Company follows a year round training program for all officers and workers. Consequently, we now attract new recruits from the top most educational institutions such as the College of Engineering Pune, etc. The Company, supported by the Promotersʼ Trust, has an active Corporate Social Responsibility (CSR) program including scholarships for employeesʼ children, tree planting, blood donation drives, eye camps and a variety of other community activities. The greatest challenges we face in the next couple of years is to progressively reduce the Companyʼs long term debt and interest cost without affecting growth. The other important issue is to raise the Premier RiOʼs volumes to start achieving profitability and increased turnover in the automotive segment. I see 2011-12 as a year of consolidation while maintaining at least a 20% growth target. I take this opportunity to thank all our stake holders: shareholders, employees and business associates for their continued commitment and support. I wish them all the very best for the next year. With regards, Maitreya Doshi Chairman
Board of Directors
Maitreya Doshi Chairman & Managing Director
Mr. S. Padmanabhan IAS (Retd.) / Advisor
Mr. Asit Javeri
Industrialist
Mrs. Rohita Doshi Computer Engineer
Mr. Rohan Shah Solicitor
Dr. Udo Weigel Machine Tool Technologist
Mrs. Kavita Khanna Management Consultant
Mr. Dilip J. Thakkar Chartered Accountant
Corporate Social Responsibility
As Milton Friedman‟s adage goes, “The business of business is business”. Over time, this view has drastically changed. In fact, if you look at the recent Economic Times Awards for Corporate Excellence held in January 2011, India Inc. is taking philanthropy to the next level, by integrating social issues into their business strategies. This highlights the importance of Corporate Social Responsibility (CSR), not just as an act of benevolence, but to sustain the creation of wealth in the corporate context. “The size of endowments has changed remarkably in 2010, making the world sit up and take notice,” says Pranab Mukherjee, Finance Minister (India). We, at Premier, have not only kept in line with this trend, but have also been ahead of our time in some aspects. Reflecting the vision of the Vinod Doshi group, Premier‟s Chairman and Managing Director, Mr. Maitreya Doshi, who is also managing trustee of the „Shri Lalchand Hirachand Premier Trust‟, a public charity trust named after the eminent industrialist. The group donates every year to support education, health and cultural activities. Premier Ltd. does not contribute company funds towards the Trust‟s corpus. The two activities are kept separate. While Premier‟s focus is to create stakeholder value, our CSR initiatives focus on our people and of course, a greener planet (something that we all need to invest in today). Last year, saw several such initiatives from both the Trust and Premier Ltd. in these arenas : Proud Executive SUV. Rugged Off-road Adventurer. Funky Party Ride. The RiO gives you more. Fantastic looks with a tail mounted spare wheel. A diesel engine that won't empty your wallet. The fun of a rear wheel drive. Easy driveability. Fully loaded. At an excellent price..... An extraordinary combination !
Exterior Interior Instrument Panel Comfort Safety & Security
Exterior
MODEL DIESEL EX EXTERIOR Headlamp leveling device ORVM (Electrically operated) Tailgate opener, key type Windscreen wiper, 2-speed + 1-speed intermittent Large thin combined tail lamp Side claddings Rear wiper + washer Rear window demister Tinted glass window Rear fog lamp Black colored B-pillars DX LX PETROL GX GLX
205 / 70 R15 Alloy / Steel Steel wheels (tubeless) Roof Rails (optional)
Steel
Alloy Steel
Alloy
* Features are subject to change without prior notice. * LX Model also available without ABS
DIESEL MODEL SAFETY & SECURITY ABS with EBD Seat belts, front 3-point ELR with pretensioners Seat belts (rear) High mounted stop lamp Child lock (rear door) Keyless entry Side impact beams Brake assist
PETROL EX DX LX GX GLX
Technical Specifications -Diesel / CNG - Sigma Tourist Vehicle Type Type of Vehicle Control Drive Dimensions (mm) Overall Length Overall Width Overall Height Wheel Base Track - Front Track - Rear Ground Clearance Weights (kgs) 3695 1475 1940 2000 1290 1300 190 1.4 Non A/C Kerb Weight GVW 1000/1030 1815 1.4 Turbo A/C 1035/1065 1850 CNG Non A/C 1110 1750 A/C 1145 1750 Multi Purpose Vehicle Full Forward Control Rear Wheel Drive
Engine Type
1.4 IDI Diesel
1.4 Turbo IDI Diesel
CNG 4ZB1, Carburetor/CNG O.H.C
Cylinders Bore x Stroke (mm) Displacement (cc) Compression Ratio Maximum Power RPM ) (HP
4, In-line 77 x 80 1489 23:1 @ 56.6 @ 5000
4, In-line 77 x 80 1489 23:1 64.7 @ 4000
4, In-line 84 x 82 1817 8.5:1 54 @ 4600
Maximum Torque (NM @ 97 RPM) Steering Type Turning Circle Radius Suspension Front 2000/3000
@ 140 2250/3000
@ 95 @ 3000
Rack & Pinion 4.3 m
McPherson strut with coil spring and independent stabilizer bars
Rear
Leaf spring with shock absorbers
Transmission Type Gear Ratios 5 speed manual 1st - 4.12/3.736 2nd - 2.17/1.963 3rd - 1.5/1.363 4th - 1.0/1.0 5th - 0.86/0.775 Rev - 3.7/3.402 Final Drive Ratio Clutch Type Wheels & Tyres Wheels Tyres Brakes Front Rear Disc Drum 5B X 13 / 4 1/2 J X 13 165 R13 LT 8 PR / 155 R13 LT 8 PR Dry, Single plate, Diaphragm 4.1
Capacity Seating Fuel Tank (Litres)
1.4 / 1.4 Turbo 5/ 7/ 8/ 9 38
CNG 5/ 7 90 (~14 Kg)Augmented by
5 litres. petrol tank Emission Norms Bharat Stage III
Roadstar Pick-Up
1520 kgs payload capacity with 3-way opening deck 4 cylinder, 56HP, fuel efficient diesel engine with best in class pickup 5 Speed Transmission Mileage of 16.3 kmpl High ground clearance of 225 mm with 14" radial tyres Very low turning radius Maximum speed of upto 100 kmph
FINANCIAL DETAILS
(All figs are in Cr) Particulars Sales Turnover Gross Profit Profit Before Tax Adjusted Net Profit Equity Dividend % Mar-11 Mar-10 Mar-09 Mar-08 Mar-07 Mar-06 243.11 34.74 23.06 18.45 27.00 158.59 26.49 20.17 16.30 27.00 137.19 19.20 15.89 13.73 25.00 119.30 21.93 19.16 20.91 25.00 89.14 56.78 55.07 5.82 20.00 147.65 24.99 23.78 18.42 15.00
Contact
Head Office Premier Ltd 58, Nariman Bhavan, Nariman Point, Mumbai 400021, India. Tel: +91-22-6117 9009, Fax: +91-22-6117 9003 Regional Office Premier Ltd. Mumbai Pune Road, Chinchwad, Pune 411019, INDIA Tel: +91-20-66310000 Fax:+91-20-66310371 Board of directors: Maitreya Doshi – Chairman
Premier Ltd. – Fixed Deposit Scheme
Scheme (A) –Non Cumulative Scheme (B) – Cumulative
Quarterly Income Plan
Period
Min Amt
ROI *
Period Min Amt 24M 36M
ROI ** Maturity Yield Value 12.12% 13.50%
24M 36M
25000 11.00% 25000 11.50%
25000 11.00% 31,060 25000 12.00% 35,128
*Interest Payable Quarterly ** Interest Compound Quarterly
Profit & Loss - Premier Ltd.
Mar'11 Mar'10 Mar'09 Mar'08 Mar'07
12 Months 12 Months 12 Months 12 Months 12 Months
INCOME:
Sales Turnover Excise Duty
NET SALES
243.11 15.93 227.18 0.00 232.80
158.59 8.35 150.25 0.00 152.43
137.22 7.84 129.38 0.00 131.10
119.32 12.72 106.60 0.00 109.28
89.17 10.49 78.67 0.00 87.27
Other Income
TOTAL INCOME
EXPENDITURE:
Manufacturing Expenses Material Consumed Personal Expenses Selling Expenses Administrative Expenses Expenses Capitalised Provisions Made
TOTAL EXPENDITURE
4.44 119.17 31.76 2.35 16.86 -5.94 0.00 168.64 58.54 64.16 11.68 0.00
3.73 86.48 26.31 1.99 12.73 -17.14 0.00 114.10 36.15 38.33 6.32 0.00
3.63 74.00 24.72 0.00 13.61 -12.70 0.00 103.25 26.13 27.85 3.32 0.00
3.97 49.51 24.79 2.07 10.27 -3.53 0.00 87.09 19.52 22.20 2.77 0.01
2.47 45.09 16.96 2.53 9.52 -2.93 0.00 73.62 5.05 13.64 1.71 0.33
Operating Profit
EBITDA
Depreciation Other Write-offs
EBIT
52.48 30.02 22.46 5.32 17.14 1.20 0.10 0.00 18.45
32.01 12.32 19.69 4.18 15.51 1.12 0.00 0.00 16.63
24.53 8.28 16.25 2.68 13.57 0.08 -0.0 0.00 13.61
19.42 6.24 13.18 2.41 10.77 5.83 6.82 -0.0 23.41
11.60 7.52 4.07 6.83 -2.75 42.99 8.01 0.00 48.24
Interest
EBT
Taxes
Profit and Loss for the Year
Non Recurring Items Other Non Cash Adjustments Other Adjustments REPORTED PAT
KEY ITEMS
Preference Dividend Equity Dividend Equity Dividend (%) Shares in Issue (Lakhs)
EPS - Annualised (Rs)
0.00 8.20 26.97 303.73 6.07
0.00 8.20 26.97 303.73 5.48
0.00 7.59 24.97 303.73 4.48
0.00 7.01 24.97 280.55 8.35
0.00 5.21 19.97 260.68 18.51
Premier- Key Fundamentals
Market Cap (Rs Cr.) EPS - TTM (Rs) P/E Ratio (x) Face Value (Rs) Latest Div. (%) Div. Yield (%) Book Value / sh. (Rs) P/B Ratio (x) : : : : : : : : 214 5.37 13.22 10.00 27.00 3.83 64.92 1.09
Industry Competitors: Engineering - General
SYMBOL GEI Industrial Systems Ltd. Petron Engineering Construction LG Balakrishnan & Bros Ltd. Hindustan DorrOliver Ltd. Commercial Engineers & Body Buil Electrotherm (India) Ltd. PRICE 129.95 275.95 306.80 25.50 47.70 %CHANGE 1.40% 4.99% 2.49% 3.77% 0.73% VOLUME 24433 1448 1511 52449 24422
140.30
4.97%
1982
Manugraph India Ltd. Shanthi Gears Ltd. Ion Exchange (India) Ltd. Kalindee Rail Nirman (Engineers) McNally Bharat Engineering Compa
50.30 35.50 99.70 93.40
1.85% 1.38% 4.95% 11.80%
8628 33356 23096 347639
105.35
2.18%
6903
Premier- Comparative Analysis
Premier Ltd. BSE Smallcap CNX NIFTY JUNIOR Today 0.68% 1.14% 1.52% 1 Month 8.49% 8.97% 5.96% 3 Months 8.37% 14.15% 8.32% 1 Year 46.5% 40.36% 27.57% 3 Years 91.95% 72.11% 120.1%
Financial Results
The financial performance of the Company for the financial year ended 31st March 11, is summarized below: Rs. (Lakhs) 2010-11 Profit (from operations) before Depreciation, Interest & Tax Less: Interest Depreciation Profit (from operations) before Tax Less: Provision for Current Taxation Profit after tax Add: Balance in Profit and Loss Account Amount Available for Appropriation Appropriations: Dividend on Equity Shares Tax on dividend General Reserve Balance carried to Balance Sheet 820.06 136.20 200.00 2111.63 1423.19 820.06 139.37 175.00 2009-10
6040.38
3812.53
2506.96 1167.63 2365.79 521.09 1844.70 1423.19 3267.89
1099.81 632.19 2080.53 417.59 1662.94 894.68 2557.62
During the year under review, the Company has shown a rise of 42% in gross sales to Rs. 244 crores. The profit before depreciation, interest and tax has gone up by 58% to Rs. 60.40 crores from Rs. 38.13 crores in the previous year. 2. Dividend The Directors recommend the dividend at 27% (i.e. Rs. 2.70 per share) on equity shares for the year ended on 31st March 11. The payment of dividend will be subject to the approval of the shareholders at the ensuing annual general meeting. 3. Operations and Management Discussion & Analysis
The current years operations are covered in the Management Discussion and Analysis Report. This Management Discussion and Analysis Report, as stipulated under Clause-49 of the Listing Agreement with the Stock Exchanges, is presented in a separate section forming part of this annual report. 4. Corporate Governance The Report on Corporate Governance, as stipulated under Clause 49 of the Listing Agreement, forms part of this Annual Report. 5. Directors
Mr. Rohan Shah and Dr. Udo Weigel retire by rotation in accordance with the provisions of the Companies Act, 1956 and the Articles of Association of the Company and being eligible, offer themselves for reappointment. 6. Directors Responsibility Statement as required under Section 217(2AA) of the Companies Act, 1956 The Directors state that (i) in the preparation of the annual accounts, the applicable accounting standards had been followed along with proper explanation relating to material departures; (ii) the directors had selected such accounting policies and applied them consistently and made judgements and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company at the end of the financial year covered under this Report and of the profit of the Company for the year; (iii) the directors had taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956, for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities; (iv) the directors had prepared the annual accounts on a going concern basis. In terms of the requirement of Accounting Standards, segment-wise results are shown in the notes to accounts. 7. Conservation of energy, technology absorption & foreign exchange earnings & outgo The details as required under the Companies (Disclosure of Particulars in Report of Board of Directors) Rules, 1988 are provided in the annexure to the Directors Report. 8. Fixed Deposits
The Company has accepted the fixed deposits by filing a statement in lieu of advertisement under Section 58A of the Companies Act, 1956 and has complied with all the regulatory requirements At the end of the year, there were no unclaimed/overdue deposits. 9. Particulars of Employees
In terms of notification dated 31-03-2011 issued by the Ministry of Corporate Affairs, Government of India, there are no employees covered under section 217 (2A) of the Companies Act, 1956, in respect of whom, the particulars are required to be given.
Financial Graph (Year Wise)
Yearly Sales Turnover Gross Profit Profit before Tax Net Profit
11-Mar 243.11 34.74 23.06 18.45
10-Mar 158.59 26.49 20.17 16.3
9-Mar 137.19 19.2 15.89 13.73
8-Mar 119.3 21.93 19.16 20.91
250 200
158.59
243.11
150 100
137.19 119.3
21.93
20.91 19.2
15.89 13.73
50 0
26.49 20.17
34.74 16.3 18.45 23.06
19.16
8-Mar Sales Turnover
9-Mar Gross Profit
10-Mar Profit before Tax
11-Mar Net Profit
RiO PETROL EX- SHOWROOM PRICES IN LACs
Sr. No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Pune PCMC MUMBAI Auangabad Amravati Sangli Latur Ahmadnagar Solapur Karad Delhi GOA Hydeabad Chennai Vizag Trissur Salem Trivendrum Pattukottai Indore Punjab Haryana Bhubneshwar Muzzafarpur Nagaland Itanagar Guwahati LOCATION GX (Grey Interior) 4.79 4.70 4.95 4.72 4.74 4.72 4.72 4.71 4.71 4.71 4.90 4.82 4.97 5.02 4.99 4.96 4.99 4.93 5.05 4.92 4.96 4.97 5.09 5.08 5.22 5.19 5.18 GLX ( Grey Interior) 5.25 5.15 5.42 5.17 5.19 5.17 5.17 5.16 5.16 5.16 5.36 5.28 5.44 5.49 5.46 5.42 5.46 5.39 5.52 5.39 5.42 5.42 5.56 5.55 5.68 5.65 5.64 GX ( Beige Interior ) 5.03 5.03 5.29 5.05 5.07 5.05 5.05 5.04 5.04 5.04 5.24 5.16 5.31 5.36 5.33 5.30 5.33 5.26 5.39 5.27 5.30 5.30 5.44 5.42 5.56 5.52 5.57 GLX ( Beige Interior ) 5.57 5.57 5.86 5.59 5.61 5.59 5.59 5.58 5.58 5.58 5.79 5.71 5.87 5.92 5.90 5.85 5.90 5.81 5.95 5.82 5.84 5.84 6.00 5.98 6.11 6.07 6.13
28 29 30
Kolkata Rajkot Rewa
4.98 4.99 5.04
5.44 5.46 5.51
5.32 5.34 5.39
5.87 5.90 5.94
RESEARCH DESIGN
This study is a mix of explorative and formal methodologies adopting monitoring and observing to study the dealerships in Sagar and communication to elicit responses from customers. This is a cross sectional study done during the months March-May.
SOURCE OF DATA
The report has been prepared as per the information obtained from two sources. They are: Primary data Secondary data
1. PRIMARY DATA :
The primary data is that which details we collect first time from the market and also used first time in the research. To collect the primary data structured non disguise questionnaire is prepared. Primary Data was very crucial to collect so as to know various past & present consumer views about Cars/Commercial Vehicles and to calculate the market share of this brand in regards to other brands. Fresh primary data was collected by taking direct filling of a questionnaire from customer which involved face to face, all the premier customer who visited the dealership showroom for the service of their Cars/Commercial Vehicles were questioned in order to find out the behavior of customer.
2. SECONDARY DATA: Secondary data are those which has been collected by some one else and which already have been passed through statistical process. When the secondary data are sufficient, the researcher has to be satisfied with the primary sources of data. Secondary data can be used as bases for comparison with primary data have been collected by questionnaire. Secondary data has been taken from internet, newspaper, magazines and companies web sites.
DATA COLLECTION METHOD
Researcher instruments is the tool by which the researcher can do research on specific problems or objective. The most popular researcher instrument for collection data is “Questionnaire” for a particular investigation. It is simple for a moiled set of questions presented to respondents for their answers. Due to this flexibility, it is most common instrument used to collect the primary data. During the pre- testing of questionnaire, I seen the reaction of respondents and suggestions required to make change in research instrument.
SAMPLE DESIGN
Sampling is a process of obtaining. The information about the entire population by examine a part of it .The effectiveness of the research depends on the sample size selected for the survey purpose. For the customer satisfaction study a sample of 30 persons was chosen from the Premier dealership in Sagar.
SAMPLING PLAN:
Data collected has been analyzed and interpreted by using simple percentage method and finally the data is presented in graphs and charts.
SAMPLING FRAME:
Customers visiting showrooms for servicing their motorcycles
Shopping malls, Supermarket, Markets, College parking etc
SAMPLE SITE:The survey was conducted in Sagar city.
SAMPLING UNIT:It means “Who is to be surveyed”. Here target population is decided and it is who are interested to purchase “Cars/Commercial Vehicles” and sampling frame is developed so that every one in the target population has known chance of being sampled. So the survey is conducted particularly in Sagar City.
