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Rossell India Date Traded In Face Value CMP EPS (TTM) P/E Market Cap Enterprise Value 52 Week H/L Website : 7-Feb-14 : BSE B (533168) :2 : 48.65 : 5.82 : 8.3 : 178 Cr : 230 Cr : 55.5/ 26.10 : http://www.rossellindia.com/

Timeline Rossell Industries 1975 Jokai India Ltd incorporated 1976 Company acquires Jokai (Assam) Tea Company by amalgamation 1991 Name changed to Rossell Industries. Y.K Modi gains control. 1994 Rossell Tea incorporated under H.M Guptas leadership 1994 By scheme of arrangement, 3 estates of Rossell Industries transferred to Rossell Tea 1999 Unilever Overseas Holdings BV and Lipton India Exports Limited acquire Rossell Industries 2003 Rossell Industries delisted from BSE 2005 Rossell Industries sold to MK Shah Export

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Rossell India (formerly known as Rossell Tea) 1994 Rossell Tea incorporated with 3 tea estates from Rossell Industries 1999 The Company acquired Nagrijuli tea estate 2000 Acquired Bokakhat Tea Co. Pvt. Ltd. which owns Bokakhat tea estate 2006 Started Aerotech Services division on 1st April 2006 for undertaking Maintenance and Repairs of Avionics Equipment 2006 Acquired 56.25% equity capital of Sigma Microsystems Pvt Ltd 2008 A new Division namely Vankesh Avionics Technologies formed and its activities are design, development and manufacture of various types of test rigs, aircraft looming and PCB assembly etc. 2008 Shares issued to FII for Rs 10.25 Cr and amount is utilized in SPV of Lemon Tree hotels 2009 Invests in a company which has the franchise rights of 'YUM'(owners of brands like KFC, Pizza Hut, and Taco Bell) in Nigeria 2010 Lists on BSE 2011 Shares split from FV 10 to 5 shares of FV 2 2011 Name changed to Rossell India 2011 Sells stake in the loss making Sigma Microsystems 2011 Rossell Aviation has entered into an agreement with CAE International Holding Ltd., Canada (CAE) for jointly undertaking the business of "providing training solution 2011 New division Rossell Hospitality created 2012 Divests minority stake in the 3 Lemon Tree hotels for a profit of nearly Rs 14 Cr 2012 Acquires Namsang Tea Estate from Dhunseri Petrochem & Tea Limited 2012 Acquires Kharikatia Tea Estate, Assam 2012 Lists on NSE 2012 Opens QSR under Kebab Xpress brand 2013 Rossell Techsys Receives Order from Boeing for Manufacturing of Wire Harnesses

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Profile Rossell India Limited was formerly Rossell Tea Limited. The Company has diverse interests in Tea, Aviation and Hospitality. To better reflect the diversification of its businesses, and to create a unified brand, the company, on the 19th of April 2011, rechristened itself as Rossell India Limited. Post this rechristening, Rossell India Limited has also restructured itself into three divisions Tea, Aviation & Defence (Technology and Engineering) and Product Support Services (Aerospace). In the Aerospace and Defence segment, the company has JVs, partnerships and service agreements with leading OEMs of the world. Apart from this, Rossell India Limited also has strategic partnerships in the Hospitality sector Company Snapshot The various divisions and strategic investments are as below
Rossell India

Divisions

Strategic Investments

Tea (Rossell Tea)

Food & Beverages

Aerospace & Defense (Rossell Techsys)

Product Support & Services (Aerotech)

Hospitality (Rossell Hospitality)

Divisions Tea Rossell Tea is the cash cow of the company. Company produces nearly 5.8 million kgs of tea of which 60% is orthodox black tea while the rest is CTC. [Black teas are processed in either of two ways, CTC (Crush, Tear, Curl) or orthodox. The CTC method produces leaves of fannings or dust grades that are commonly used in tea bags and are processed by machines. This method is efficient and effective for producing a better quality product from medium and lower quality leaves of consistently dark color. Orthodox processing is done either by machines or by hand. Hand processing is used for high quality teas. While the methods employed in orthodox processing differ by tea type, this style of processing results in the high quality loose tea sought by many connoisseurs.

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The output of the 7 estates of Rossell India are as below Tea Bearing Area in Hectares 614 323 582 289 299 2,107 305 448 2,860 Crop Kgs. 2012-2013 12,02,550 6,21,537 9,63,937 4,56,847 6,03,723 38,48,594 4,67,548 1,26,490 44,42,632 Yield per Bearing Hectare 1,959 1,924 1,656 1,581 2,019 1,827 N.A. N.A.

Tea Estates Dikom Nokhroy Nagrijuli Bokakhat Romai Total Namsang * Kharikatia ** Grand Total

* acquired on and from 18th June, 2012 ** acquired on and from 1st November, 2012 The average realization price / kg of Rossell tea is higher than its peers 20122013 2012 210.22 135.59 181.14 159.49 171 153.36 20112012 2011 171.52 117.19 123.15 117.96 150 113.38 20102011 2010 170.45 119.5 130.48 117.39 145.11 134.07 20092010 2009 159.68 114.86 127.6 120.71 137.25 122.9 20082009 2008 128.46 95.27 109.21 103.86 111.03 105.81 2007- 20062008 2007 2007 104.1 73.37 89.54 84.23 87.16 87 2006 98.82 71.62 79.61 78.57 86.19 84.49

Tea prices in ` / Kg Avg Price (Rossell) Avg Auction Price (N.India) Avg Price ( Jayshree - Assam ) Avg Price ( Jayshree - Overall) Avg Price (Mc Leod Russell) Avg Price (Dhunseri)

Rossell Tea has increased its export sales over the years Kgs in Lakhs Exports Domestic Total Sales Export % 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06 10.24 8.68 5.49 4.27 3.62 4.68 3.46 1.96 32.85 32.34 34.16 38.36 38.23 40.46 48.88 51.88 43.09 41.02 39.65 42.63 41.85 45.14 52.34 53.84 23.76% 21.16% 13.85% 10.02% 8.65% 10.37% 6.61% 3.64%

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Tea Kgs in Lakhs

The export per kg realization price has also increased over the years

Export 2012-13 2011-12 2010-11 2009-10 2008-09 2007-08 2006-07 2005-06

Kgs in Lakhs 10.24 8.68 5.49 4.27 3.62 4.68 3.46 1.96

Rs in Cr 26.44 20.6 11.64 10.04 8.01 7.99 6.44 3.52

Rs / Kg 258.20 237.33 212.02 235.13 221.27 170.73 186.13 179.59

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Aerospace & Defence Rossell Techsys is the technology and engineering wing of Rossell India Limited and is focused to the aerospace and defence domain. Consistent with its objective of creating a unified brand, the company re-christened its technology and engineering division as Rossell Techsys on the 01st of May 2011. Vankesh Avionics Technologies was amalgamated into it. Rossell Techsys has its engineering hub in Bangalore and has 75 employees. The offerings of Rossell Techsys (a) Design and development of embedded systems (b) Test solutions including Test Jigs, Rigs, ATEs, test benches and Simulators and (c) Wire Harness Engineering and looming (d) Product support services, including installation, testing, commissioning, integration and maintenance. Its clients include various DRDO labs, such as ADA, DLRL, CAIR, Defence Public Sector Undertakings such as HAL, BEL, Autonomous institutions such as NAL, and the engineering arms of the three Indian defence forces. Rossell Techsys is AS9100 REV B, IS0 9001 - 2008 certified and is also a CEMILAC approved design house. Rossell Techsys has a state of the art, 34,000 square feet independent premises comprising of various labs, including a wire harnessing and looming lab, a systems lab, a verification and validation lab. Rossell Techsys is the Value Added Reseller (VAR) for Contact Memory Buttons developed by Macsema, USA. These contact memory buttons(CMBs), ranging from 128 BYTES to 4 GIGABYTE each that have wide ranging business case / application potential in diverse domains such as Aerospace, Defence, Homeland Security, Railroad systems, power and energy, Oil and Gas, etc.

Contact Memory Button is a battery-free read/write electronic data storage technology designed to perform in extreme operating environments associated with military, aerospace, utility, transportation and industrial applications. ButtonMemory enhances configuration management, asset tracking, inspection and maintenance functions throughout the service life of the asset to which it is attached. In addition to exceptional durability, ButtonMemory Contact Memory Buttons offer the potential to improve productivity by eliminating or reducing the time and inconvenience associated with accessing a central database. Data stored on a ButtonMemory is retrieved by momentary contact using a probe and can be viewed and updated on site. Each button has a unique serial number.

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Contact Memory Buttons (CMBs) are updateable memory devices. Each has a unique serial number and attached to an asset or location serves as a rugged identifier and updateable logbook allowing inspection and maintenance to be tracked electronically through the assets life. This eliminates time spent on hand data entry and associated human errors Rossell Techsys is a value added reseller for the complete range of XERAFY products the rugged metal products, embeddable tags, On and Off metal tags and Metal skin RFID labels.

Xerafy (www.xerafy.com) is a global provider of industrial rugged passive RFID tag solutions. It was the first tag manufacturer to develop a UHF RFID tag that can be embedded into metal. XERAFY products are some of the worlds smallest EPC UHF RFID-on-metal tags, able to withstand extreme conditions, harsh environments and high temperatures while still maintaining high performance. In Nov 2013 Rossell Techsys had bagged an order from Boeing for wire harness manufacturing. The company has received the order for Boeings F/A 18 Super Hornet fighter jet.

Product Support and Services Aerotech is the aerospace product support services division of Rossell India Limited. Aerotech was formed in June 2005 and has had agreements with foreign OEMs for offering critical post-sales support services. Aerotech has long term agreements with OEMs in the avionics, communications and ground support equipment business. Aerotech provides Product Support at various locations of the three Indian defence services, Defence Public Sector Undertakings (DPSUs) and Defence Research and Development Organization (DRDO). Hospitality Rossell Hospitality is a newly created division. The company has rolled out 6 QSR outlets under the brand name Kebab Xpress. The company has planned out to have 15 outlets by the end of 2014. The QSR chain has an Indian menu but the experience of typical western QSR like KFC.

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The operations of Kebab Xpress is headed by the VP Jagjit Kandhari Singh who has an experience of over 22 years. His past employments have been with Blue Foods, Starwood Hotels in North America and Taj Group of Hotels. He holds an Executive MBA degree in Operations management from ISBM. He has a HACCP accreditation from Chicago Food Council. Strategic Investments Hospitality In 2008 Rossell India Limited had made a strategic investment in the hospitality sector in the form of 3 JVs with Lemon Tree hotels in Bangalore, Alleppey and New Delhi. The company by 2012 had made incremental investments in the SPV to the tune of Rs 29.47 Cr. In April 2012 Rossell sold its investment in the SPV for a profit of Rs 13.6 Cr. Food and Beverages Rossell India Limited has collaborative strategic investments in the fast food business in Nigeria, Africa. With franchise rights from YUMS, the brand owners of KFC, Pizza hut and Taco Bell. (Src : www.rossellindia.com) The above mentioned is the official version. To get to the actual details we need to dig in a bit. In 2009-10, Rossell invested in the equity and preference shares of RV Enterprizes Pte. Ltd., Singapore. As of 31st Mar 2013, Rossell has invested around Rs 11 crores in RV Enterprizes Pte. Ltd., Singapore. Rossel has termed this as a JV and said its extent of shareholding is 26%. As per the outward FDI from India data released by Overseas Investment Division of the Foreign Exchange Dept (Govt. of India), Devyani International Limited has also invested in RV Enterprizes Pte. Ltd., Singapore. Devyani International Limited (An associate company of RJ Corp- largest bottler for Pepsico- with interests in Beverages/Food/ Beer/Milk/ Ice-cream/ Stem-cell/ Real Estate/ Education) is the largest franchisee for Pizza Hut and KFC in India. It also has Pan India franchisee rights for Costa Coffee and Swensen's Ice creams. Devyani International (Nigeria) Ltd. is a franchisee of Yum Inc. operating KFC Restaurants in Nigeria

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In 2009 KFC brand was brought to Nigeria, via Devyani International Nig Ltd (formed from a joint venture between RJ Corp of India and Chellarams Plc) and an agreement with Yum Restaurants International (YRI), who are the franchise owners of the KFC brand. This is the link between Rossell India and KFC in Nigeria Currently there are 25 KFC outlets in Nigeria Rossell CAE India Rossell Aviation Private Limited, the fully owned Subsidiary of Rossell India as on 31st March, 2012, entered into a Joint Venture Agreement with CAE International Holdings Ltd., Canada on 4th August, 2011, subject to approval from the Foreign Investment Promotion Board (FIPB). The required approval has since been received. The Company is in the process of changing its name to CAE Rossell India Ltd. Upon implementation of the said Agreement, the Company will provide training solutions for projects primarily related to the Offset obligations that foreign OEMs need to fulfill under their contract with the Ministry of Defence. The Company will undertake installation, maintenance and operation of Simulators for the life of the program. (Src: Ar 2013) CAE is a global leader in modelling, simulation and training for civil aviation and defence. The company employs approximately 8,000 people at more than 100 sites and training locations in approximately 30 countries. CAE offers civil aviation, military and helicopter training services in more than 45 locations worldwide and trains approximately 100,000 crew members yearly. In addition, the CAE Oxford Aviation Academy offers training to aspiring pilot cadets in 11 CAE-operated flight schools. CAE's business is diversified, ranging from the sale of simulation products to providing comprehensive services such as training and aviation services, integrated enterprise solutions, in-service support and crew sourcing. The 2013 revenue for CAE was C$ 2100 millions InterGlobe Enterprises (which runs IndiGo) and CAE, a Canadian civil and military aviation simulation training company, in Nov 2013 launched the countrys largest pilot simulation training facility in Greater Noida, Uttar Pradesh. The two partners in CAE Simulation Training Pvt Ltd (CSTPL), a 50:50 joint venture, have together invested $25 million to set up the centre. MF investments Rossell India has around Rs 49 Cr in various MF as of 31-Mar-2013

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Rossell India Board of Directors Mr. H. M. Gupta, has been the Promoter Director of the company since its incorporation. He took over as the Executive Vice-Chairman of the company in 1994 and became its Executive Chairman on 01st of February 2001. He was the honorary consul of the Republic of Chad in India. He is an executive committee member with FICCI. Mr. C. S. Bedi, is the Managing Director of the Company. Mr Bedi has extensive experience, spanning four decades, and is a tea industry pioneer. He schooled at Sherwood College, Nainital and graduated with Honours from St. Stephens College, Delhi. His career includes 26 years with Jardine Henderson Ltd., where he served in various capacities, at the estate level to overseeing the groups production in the late eighties. Mr Bedi has been with Rossell India since its incorporation in 1994. In 2003 he joined the Board as Executive Director and became the Managing Director in 2007. . He is currently the Chairman of the National MRL Committee on Tea which deals with food safety and pesticide residue levels. In 2010 he was appointed Chairman of the Indian Tea Association and Chairman of Consultative Committee of Plantation Associations. He is also a Member of the FAO Inter Governmental Group on Tea. He also served as the past Chairman of the Tea Research Association, the oldest and largest tea research body worldwide. Dr. S. S. Baijal, has been associated with the Company as a Director since its formative stages. He did his doctorate in Organic Chemistry. A distinguished and accredited professional, he served as the Chairman & Managing Director of ICI India Ltd., and Chairman of ICI PLC, London UK, companies in India. He was Chairman of Fertiliser Association of India. He is a Companion (highest honour) of Chartered Management Institute of London, UK. He is well - versed in corporate affairs and management. He was in the past Non-Executive Director, amongst other companies, of ICICI Ltd, EID Parry (India) Ltd., DCM Ltd., Voltas Ltd., Bharat Aluminium Company Ltd, (BALCO), CRISIL, Max India Ltd.,. He has been designated Chairman - Emeritus of Max India Ltd. DrBaijal is also currently Director of Atul Ltd., and DCM Shriram Consolidated Ltd. Closely associated with the Rossell Group, Dr Baijal is also a Director of the Holding Company, BMG Enterprises Limited and is an independent Director on the Board of Rossell Aviation Private Limited, a Subsidiary of Rossell India. Dr Baijal is also the Chairman of the Audit Committee of the Board of Directors and a Member of the Remuneration Committee of the Board. Mr. H. M. Parekh, is an independent director of the Company. Mr Parekh has extensive experience, spanning more than five decades, in the tea industry. With a scholastic background in commerce, he served at the helm of distinguished companies in the tea industry. He retired as the Chairman of J. Thomas & Company Private Limited, the worlds largest tea Broking Company. He also served as the Chief Executive Officer of Project India Blend Limited. Mr Parekh is also a Director of the Holding Company, BMG Enterprises Limited. He also serves on the boards of various tea companies offering valuable advice on wide ranging industry issues. Mr. P. L. Agarwal, is an independent director of the company. Mr P.L. Agarwal has extensive experience, spanning more than four decades, in Corporate and Commercial Law.

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Mr. V. P. Agarwal, is an independent director of the company. Mr VP Agarwal has extensive experience of more than four decades in various industries in different capacities, senior executive as well as member of the board. He has been at the helm of companies with more than 5000 crore turnover. He is at present also a management consultant. He did his masters in commerce from Agra University in 1962 and topped the batch. He went on to do his Masters in Business Administration and Graduation in law from Delhi University. He also did an advanced management program in Harvard Business School in 1986. He has been a fellow member of the institute of company secretaries in India for over four decades. Mr VP Agarwal is also on the board of the holding company BMG Enterprises Limited Executive Management - Rossell Techsys Prabhat Kumar Bhagvandas Chief Operating Officer. has over 28 years industry experience in diverse Real Time Systems domains - defence, automotive, consumer electronics, industrial automation and controls and data networking. He has a scholastic background in electronics and communication engineering from Jawaharlal Nehru Technological University in Hyderabad, and a masters degree in business management. His past employments have been with Vizag Steel, CMC Limited, Portal Player and LVL7 (acquired by Broadcom).He has extensive experience in engineering and operations from start up to scaling. He was on the board of directors in his earlier assignments. He heads the operations of the company. Before joining Rossell, Mr. Bhagvandas was the founder of ProVieTek Systems. He was previously the Vice President and General Manager, India Operations of Dilithium. Prior to joining Dilithium. Mr. Bhagvandas was Managing Director and Vice President - India Operations for LVL7 Systems (acquired by Broadcom), a leader in network processing software. He created a team from the ground up, reaching 280 engineers at the time of his departure, with attrition rates of less than 5% in a highly competitive market. Prior to LVL7, Mr. Bhagvandas, lead the software engineering team at PortalPlayers India design center and grew the team to 60+ engineers working in the domain of Portable multimedia players. Prior to PortalPlayer, Mr. Bhagvandas was Director of Real Time Systems at CMC Limited, where he started the Real Time Systems Group, growing it to 270 engineers, and managed the transition of the business model from a cost-center to a profit-center. Under his leadership, CMC Limited grew mid to large size Offshore Development Centers for Toshiba, Lucas Varity (now TRW automotive), Wind River Systems, and Local Defense Labs. Prior to CMC Limited, Mr. Bhagvandas led a 40+ person technical team at Vizag Steel, Indias first shore based integrated steel plant. As an Assistant Manager, he was a key team member for pre-installation, installation, testing, commissioning and maintenance of process control, automation, electrical switchgear and distribution equipment in the captive thermal power plant and other electrical and process utilities. Mr. Bhagvandas earned a Bachelors of Electronics and Communication Engineering, from Jawaharlal Nehru Technological University, India. He also holds a Masters in

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Business Administration degree, is a certified value engineer and a certified ISO-9000 internal quality auditor. Air Vice Marshal (retd) Satish Sofat, Senior Vice President - Product Support and Services. Satish has a post graduate degree in science from the defence services staff college. He is a distinguished and decorated senior air-force officer who has served in a variety of roles ranging from a pilot to senior executive positions. He was awarded the Vayu Sena Medal by the government of India. Satish was also the air attach in Paris, where he was instrumental in forging business relationships with civil and defence industries in France, Netherlands, Germany, UK and Belgium. He played a key role in the induction of Defence and Civil aircrafts and equipment for the Indian Air Force, Indian Navy, DRDO and HAL. He heads the services and support division and works very closely with Foreign OEMs and focuses on partnerships. V Srinivasan, Senior Vice President Business Development. Mr Srinivasan is an alumni of the Indian Institute of Science, Bangalore, where he graduated in Electrical Technology. He later pursued a Post Graduate diploma in Aeronautics from the Indian Institute of Technology, Kanpur. He served in Hindustan Aeronautics Ltd (HAL) for a period of nearly 37 fruitful years in various positions and various capacities. Starting from Design, his expertise spanned Production Engineering, Assembly & Testing, Operations, Divisional & Corporate Planning and Project management. He superannuated from HAL as the Executive Director of the Avionics Division at Hyderabad. He was the driving force in setting up new production and ROH lines for various LRUs and also for enhancing the Sales and Profitability of the Division. He is responsible for business liaison and relationship building with Domestic and Global OEM. Rishab Gupta, Vice-President, Global Business Development. Rishab has a scholastic background in marketing management. He is an alumni of the Suffolk University, MA, USA. He underwent training on Business Strategies, at CAE, Montreal, as part of the Business Management curricula. Since his return from the US, he has been an active strategist in building relationships with foreign OEMs, including Joint Ventures. One such venture is with CAE. He is tasked with expanding the companys global tie-ups and relationships, aligned with the requirements of the offset policy. Mr. Digant Parikh, Vice-President Finance is an alumnus of the NMIMS institute, Mumbai from where he pursued a scholastic background in finance and emerged with distinction. He has close to two decades of rich and diversified Industry & Corporate experiencein the Banking & Financial Services industry entailing Investment Banking (Private Equity), Asset / Wealth Management, Corporate / Trade Finance (Wholesale & Retail Credit / Trade Products), Capital Market (Primary & Secondary), Debt Restructuring and General Insurance Broking. He is one of the key executives to create the Kebab Xpress brand. As the Vice President Finance, he heads the corporate finance team for the Rossell Techsys and Rossell Hospitality Divisions of Rossell India Limited. Air Commodore (retd) Prem Pal Ganda, General Manager, Business Development, North. Cmde Ganda possesses an engineering degree in electrical engineering. During service in the Indian Air Force, Cmde Ganda served in various capacities ranging from technical officer to command engineering officer to Chief Engineering Officer and

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Director. He has experience in Radar, Aircraft, Missile and Communication Systems. He has worked on the MiG 21, Jaguar and Mirage Aircraft and has worked closely with overseas OEMs in deployment and maintenance. He is responsible for business development, customer relationship management and opportunity creation in the north of India. Captain (IN Retd) Shiv Kumar, General Manager, Business Development, South. Captain Shiv is an electrical engineer, who served in various capacities in the Indian Navy and in different divisions ranging from engineering to quality control and assurance. Well versed in Radars, Missile, Communication Systems, Inertial Navigation systems, electronic warfare and Power Generation Systems for Aircraft as well as ships, he was the commissioning Air Electrical Officer of Sea Harrier aircraft squadron in U.K. and India. He was also part of the commission crew for one of Indians largest Aircraft Carrier. He is responsible for the business development, customer relationship management and opportunity creation in the South of India.

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Financials Yearly Results - Profit and Loss

CONSOLIDATED (Rs Cr.)

Mar 2013 INCOME :

Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income 105.97 0.03 105.94 15.07 0.67 121.68

Mar 2012
82.97 0.13 82.84 0.85 -1.27 82.42

Mar 2011
80.66 0.27 80.39 0.76 0.18 81.33

Mar 2010
79.94 0.2 79.74 2.18 0.46 82.38

Mar 2009
59.56 0.12 59.44 2.25 0.58 62.27

Mar 2008
57.38 0.51 56.87 15.15 -0.31 71.71

EXPENDITURE :
Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Administration Expenses Miscellaneous Expenses Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax Deferred Tax Net Profit Minority Interest (after tax) Net Profit after Minority Interest & P/L Asso.Co. Extraordinary Items Adjusted Net Profit P & L Balance brought forward Appropriations P & L Balance carried down Dividend Equity Dividend (%) Dividend Per Share(Rs) EPS after Minority Interest (Adj) (Unit Curr.) Book Value (Adj) (Unit Curr.) 0.89 7.33 44.37 9.54 11.19 4.11 77.43 44.25 2.18 42.07 3.07 39 8.2 0.53 30.27 0 30.27 0.65 29.62 3.23 30.13 3.37 1.83 25 1.25 8.17 39.17 1.01 4.46 31.14 8.05 8 4.49 57.15 25.27 0.56 24.71 1.96 22.75 4.75 -0.65 18.65 0 18.65 -0.91 19.56 2.77 19.71 3.23 1.47 20 0.4 5.02 31.5 1.76 4.74 28.76 8.95 8.09 2.9 55.2 26.13 1.42 24.71 1.91 22.8 4.85 0.04 17.91 -0.17 18.08 0.02 18.06 4.4 19.71 2.77 1.47 20 0.4 4.86 26.46 2.04 4.53 26.81 10.73 6.97 2.94 54.02 28.36 2.45 25.91 1.7 24.21 5 0.68 18.53 -0.34 18.87 -0.11 18.98 2.25 16.71 4.4 1.46 20 2 5.07 22 1.16 3.98 23.83 9.49 6.13 4.84 49.43 12.84 2.39 10.45 1.41 9.04 1.85 1.15 5.91 -0.46 6.37 -0.61 6.98 4.26 8.38 2.25 1.1 15 1.5 NA NA 1.64 4.22 23.6 6.31 6.06 1.8 43.63 28.08 1.56 26.52 1.45 25.07 2.16 1.63 21.18 0.54 20.64 10.27 10.37 -5.07 11.31 4.26 0.79 12.5 1.25 NA NA

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Balance Sheet
CONSOLIDATED (Rs Cr.)

Mar 2013 SOURCES OF FUNDS :

Share Capital Reserves Total Total Shareholders Funds Minority Interest Secured Loans Unsecured Loans Total Debt Other Liabilities Total Liabilities 7.34 187.19 194.53 0 58.48 0 58.48 0.22 253.23

Mar 2012
7.34 159.8 167.14 0 9.43 0 9.43 0.22 176.79

Mar 2011
7.34 142.06 149.4 0 13.03 1.4 14.43 0.22 164.05

Mar 2010
7.34 126.4 133.74 0.17 15.29 12.89 28.18 0 162.09

Mar 2009
7.34 109.56 116.9 0.51 17.19 6.03 23.22 0 140.63

Mar 2008
6.31 95.59 101.9 0.97 5.88 11.61 17.49 0 120.36

APPLICATION OF FUNDS :
Gross Block Less: Accumulated Depreciation Less: Impairment of Assets Net Block Capital Work in Progress Investments Current Assets, Loans & Advances Inventories Sundry Debtors Cash and Bank Loans and Advances Total Current Assets Less : Current Liabilities and Provisions Current Liabilities Provisions Total Current Liabilities Net Current Assets Miscellaneous Expenses not written off Deferred Tax Assets Deferred Tax Liability Net Deferred Tax Other Assets Total Assets Contingent Liabilities 15.05 2.64 17.69 3.61 0 0 0.4 -0.4 7.62 253.23 0 7.97 2.05 10.02 14.1 0 0.13 0 0.13 8.26 176.79 0 7.37 2.19 9.56 7.59 0 0 0.55 -0.55 9.64 164.05 0 9.23 1.34 10.57 15.43 0.01 0 0.51 -0.51 0 162.09 0 7.47 1.83 9.3 9.24 0 0.17 0 0.17 0 140.63 0 8.43 1.5 9.93 4.24 0 1.31 0 1.31 0 120.36 0 5.55 7.02 4 4.73 21.3 2.77 6.16 8.9 6.29 24.12 4.65 3.98 4 4.52 17.15 3.93 2.66 7.34 12.07 26 3.54 2.31 1.1 11.59 18.54 3.01 4.15 0.47 6.54 14.17 202.54 21.33 0 181.21 0.39 60.8 135.07 17.78 0 117.29 0.44 36.57 129.69 15.85 0 113.84 0.15 33.38 127.56 13.24 0 114.32 0.29 32.55 121.46 11.22 0 110.24 0.51 20.47 118.47 9.76 0 108.71 0.51 5.59

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Cash Flow
(Rs Cr.)

Year
Cash and Cash Equivalents at beginning of the year Net Cash from Operating Activities Net Cash Used In Investing Activities Net Cash Used In Financing Activities Net Inc/Dec In Cash and Cash Equivalents Cash And Cash Equivalents at end of the year

Mar 2013
8.79 20.84 -74.02 48.28 -4.9 3.89

Mar 2012
3.91 21.06 -9.47 -6.71 4.88 8.79

Mar 2011
7.16 13.67 -2.42 -14.5 -3.25 3.91

Mar 2010
0.79 19.8 -17.49 4.06 6.37 7.16

Mar 2009
0.38 6.02 -18.77 13.16 0.41 0.79

Key Ratios
CONSOLIDATED

Years
Debt-Equity Ratio Long Term Debt-Equity Ratio Current Ratio

Mar 2013
0.26 0.16 0.84

Mar 2012
0.11 0 0.94

Mar 2011
0.24 0.12 1.03

Mar 2010
0.35 0.26 1.31

Mar 2009
0.36 0.22 0.99

Turnover Ratios
Fixed Assets Inventory Debtors Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) 0.9 25.47 16.08 18.89 41.76 38.86 39.7 31.46 28.56 25.13 23.34 1.03 22.36 16.36 41.63 30.46 28.09 29.78 24.84 22.48 19.67 17.53 1.06 18.8 24.3 17.06 32.4 30.03 30.63 24.57 22.2 21.93 20.12 1.12 21.4 32.17 10.88 35.48 33.35 32.41 25.31 23.18 27.15 25.56 0.9 18.19 18.44 5.17 23.1 20.74 19.09 13.31 10.95 16.04 11.51

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Quarterly Results
STANDALONE (Rs Cr.)

Particulars
Gross Sales Other Operating Income Other Income Total Income Total Expenditure PBIDT Interest PBDT Depreciation Tax Deferred Tax Reported Profit After Tax Extra-ordinary Items Adjusted Profit After Extra-ordinary item

Sep 2013
44.11 0.93 1.08 46.10 23.54 22.56 1.43 21.13 0.90 4.24 0.00 15.99 0.00 15.99

Jun 2013
16.09 0.40 0.52 17.01 14.34 2.67 1.08 1.59 0.84 0.16 0.00 0.59 0.00 0.59

Mar 2013
20.15 0.86 0.10 21.08 28.59 -7.51 0.60 -8.11 0.98 -2.26 0.53 -7.36 0.00 -7.36

Dec 2012
39.40 1.07 0.62 41.02 23.78 17.24 0.65 16.59 0.77 3.71 0.00 12.11 0.00 12.11

Sep 2012
32.70 0.75 0.52 33.97 16.10 17.87 0.71 17.16 0.72 3.90 0.00 12.54 0.00 12.54

Jun 2012
9.36 0.31 15.46 25.13 8.47 16.66 0.22 16.44 0.60 2.85 0.00 12.99 11.14 1.85

EPS (Unit Curr.) EPS (Adj) (Unit Curr.) Calculated EPS (Unit Curr.) Calculated EPS (Adj) (Unit Curr.) Calculated EPS (Ann.) (Unit Curr.) Calculated EPS (Adj) (Ann.) (Unit Curr.) Book Value (Unit Curr.) Dividend (%) Equity Reserve & Surplus Face Value

4.36 4.36 4.36 4.36 17.43 17.43 0.00 0.00 7.34 0.00 2.00

0.16 0.16 0.16 0.16 0.64 0.64 0.00 0.00 7.34 0.00 2.00

-2.00 -2.00 0.00 0.00 0.00 0.00 0.00 0.00 7.34 0.00 2.00

3.30 3.30 3.30 3.30 13.20 13.20 0.00 0.00 7.34 0.00 2.00

3.42 3.42 3.42 3.42 13.67 13.67 0.00 0.00 7.34 0.00 2.00

3.54 3.54 3.54 3.54 14.16 14.16 0.00 0.00 7.34 0.00 2.00

Public Shareholding (% in Equity) Pledged/Encumbered - No. of Shares Non Encumbered - % in Total Promoters Holding Non Encumbered - % in Total Equity

25.13 0.00 100.00 74.87

25.25 0.00 100.00 74.75

25.46 0.00 100.00 74.54

25.47 0.00 100.00 74.53

26.99 0.00 100.00 73.01

29.36 0.00 100.00 70.64

PBIDTM(%) PBDTM(%) PATM(%)

51.17 47.92 36.27

16.59 9.88 3.67

-37.33 -40.31 -36.58

43.83 42.18 30.79

54.65 52.48 38.35

177.99 175.64 138.78

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Shareholding Pattern

Shareholding % Promoter

Dec-13 74.87

Sep-13 74.87

Jun-13 74.75

Mar-13 74.54

Dec-12 74.53

Sep-12 73.01

Jun-12 70.64

Mar-12 70.64

In the last couple of years promoters have increased their stake by 4% Investor Returns
Period 1Week 1Month 3Month 6Month 1Year 2Year 3Year 5Year Date 23-Jan-14 30-Dec-13 30-Oct-13 30-Jul-13 30-Jan-13 30-Jan-12 31-Jan-11 16-Mar-10 Price (Rs) 50.6 42.65 27.85 35.1 43.3 40.5 72.1 12 Returns (%) -4.15 13.72 74.15 38.18 12.01 19.75 -32.73 304.17

Stock split 20-Jan-2011 Src : http://www.motilaloswal.com/

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Kebab Xpress sales data Outlet Outlet No 1 Outlet No 2 Outlet No 3 Outlet No 4 Outlet No 5 Outlet No 6 Opening Date Nov 2012 18 Dec 2012 28 Sep 2013 25 Oct 2013 8 Nov 2013 16 Dec 2013

The opening dates are not accurate and been taken from the net

Revenue (Rs Cr) Cultivation, manufacture & sale of tea Aviation products & services Hospitality Segment results (Rs Cr) Cultivation, manufacture & sale of tea Aviation products & services Hospitality

Sep13 41.21 3.28 0.62

Jun13 13.63 2.67 0.42

Mar13 16.47 4.05 0.41

Dec12 38.47 2.09 0.12

Sep12 31.31 2.36

Jun12 7.72 2.13

Mar12 7.24 3.31

Dec11 30.79 1.65

23.28 0.62 -1.05

3.31 0 -0.84

-8.89 1.24 -0.92

17.2 -0.31 -0.81

17.54 -0.22 -0.47

1.5 -0.46 -0.26

-8.48 1.06 -0.07

11.7 -0.15

Qtr Dec-13 Mar-13 Jun-13 Sep-13

No of Outlets 1 2 2 2

Sales Rs Lakhs 12 41 42 62

Avg Sales / Per Outlet / Month in Rs Lakhs 6 6.83 7.00 10.33

The management has said that Kebab Xpress break even will happen when the number of outlets is 15 - 20. The management has plans to take the count to 30 35 in a couple of years. The opened outlets are in and around Delhi. The next city in which the expansion will take place is Kolkata or Bengaluru.

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Management Compensation Year ending 2013 (Rs in Cr) Sales NP Exec Directors Salary & Comm Promoters Renumeration Promoters relatives Non Promoters 2.35 0.25 0.46 3.06 Non Exec Sitting Fees & Comm 0.15 106 30

Debtor Days Selling a product is one thing but getting the payment for is a totally different world. The speed at which the payment comes after the sale denotes the importance of the product to the customer. In the corporate world 60 90 days are the norm for the payment to be settled. 20122013 Debtor Days 24.15 20112012 27.1 20102011 14.15 20092010 2.16 20082009 3.7 20072008 6.86 20062007 5.34

The debtor days for Rossell seems to be decent also considering the fact that they have substantially increased the sales over the years SWOT Analysis Strengths Rossell Tea has pricing power. The average / kg realization is higher than peers and industry average The management team of Rossell Techsys seems to be promising. The COO has been instrumental in scaling up his teams / divisions in his earlier jobs. The other senior managers are ex armed forces with high rankings The company strategy seems to be getting into new ventures in a phased manner, check their footing and then get into the expansion mode. If the decision to divest stake in Sigma Microsystems was because of the losses of Sigma then it should be taken as a good move. After giving some time for the

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investment, if the investment does not make sense, the move to dispose of it to cut the losses should be welcomed Even though the company per se is not well known in the investor community, it seems to associate with established companies like CAE, Lemon Tree, Devyani International. We would assume that such companies would not get into relationship with a company with weak footing Has around Rs 49 Cr worth of MF holding

Weakness The main cash cow of the company is Tea which is a commodity [Mkt perception] Cyclic [Mkt perception] Even though the aviation division has been around for some time, the financials are fluctuating and has not delivered stellar performance
Sep 2013 6 Mar 2013 12 Mar 2012 12 Mar 2011 12 Mar 2010 12 Mar 2009 12 Mar 2008 12 Mar 2007 12

Year (Amt in Rs Cr) Months Revenue Cultivation, manufacture & sale of tea Aviation Products & Services Hospitality

54.84 5.95 1.04

93.97 10.63 0.53

73.87 9.97

69.36 8.75

70.27 12.09

55.64 5.95

49.72 6.42

52.9 3.72

Segment results Cultivation, manufacture & sale of tea Aviation Products & Services Hospitality 26.59 0.62 -1.89 27.35 0.25 -2.46 21.05 2.94 -0.07 21.71 3.17 22.79 3.77 11.29 0.02 22.11 3.75 8.53 2.69

Capital Employed Cultivation, manufacture & sale of tea Aviation products & services Hospitality Unallocated 127.9 16.31 5.04 62.11 120.55 14.95 3.37 55.74 108.23 17.41 0.61 40.96 102.6 7.92 0 40.4 67.25 13.49 57.41 6.17 41.96 5.6 25.27 4.03

This could be countered with the argument that the initial setup and Sigma Microsystems could be the reason for the fluctuation The company could be more out coming in its Annual Reports on its past decisions and its future plans

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Opportunities The companys diversifications are in areas such as aviation and food / beverages which hold immense growth potential. These sectors also do catch the fancy of the investors Over the recent years Govt. has opened the defence sector for private participation. As per the new Defence Procurement Procedure, it has become mandatory that 30% offset work has to be executed in India against all contracts which are awarded to overseas companies and valued above Rs.300 Crores. In higher value contracts, offset / sub contract work share is further enhanced to 50% of the work to be done in India. Compliance of this offset is a pre requisite for the foreign company, prior to execution of the entire contract. There are great opportunities for the private sector to participate in the defence sector. The Food & Beverages especially the QSR segment is growing a decent rate. The investment in KFC franchises in Nigeria and setting up own brand in India has good growth potential Boeing has placed an order with Rossell Techsys for supply of wire harness for its F/A 18 Super Hornet fighter jet

Threats The investment for the diversifications / acquisitions of tea estates should not get the company caught into a debt trap

Valuation The company has Debt (LT and ST) of Rs 70 Cr. Now just for the sake of valuations, lets assume we want to knock of the debt from the books of the company by selling its Rs 49 Cr Mutual Funds and its Rs 11 Cr investments in the KFC Nigeria. As per an ET article in Dec 2012, the offer price for quality estates in Assam is Rs 500 per kg. Rossell India has the capacity to produce 5.8 million kgs of tea. Thus the valuation of estates of Rossell would be Rs 290 Cr. The mkt cap of the company is Rs 180 Cr. Thus for an mkt cap of Rs 180 Cr, we are getting the assets worth Rs 290 Cr of tea estates. As a business, the tea division is going to provide a major share of the Rs 20 25 Cr net profit the company will make annually (after the loss of hospitality). When the Techsys and Hospitality division starts to kick in the with the profits, the mkts will take notice of the company

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Synopsis The company seems to have a LT debt of Rs 37 Cr and ST debt of Rs 35 Cr. The company seems to be on track to make at least Rs 20 Cr PAT (assuming Techsys division does not generate major cash and hospitality making losses).With its new tea estates, the tea division is expected to make the bulk of the sales. Rossell Techsys is on the spring board, all the setup has been done and it now needs to take off. The Boeing order may be the trigger for Techsys. Kebab Xpress we need to watch this space. The investments in KFC Nigeria outlets will yield good returns. The CAE Rossell relationship seems to be in a passive mode as of now.

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Kebab Xpress Outlets 1. M-43, Connaught place, Outer Circle, New Delhi 2. N-5, Block N, Connaught place, New Delhi 3. V3S Mall, Laxmi Nagar, Delhi 4. Moments Mall, Kirti Nagar, New Delhi 5. DLF Cyber Hub, Gurgaon 6. The Great India Place, Noida

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Rossell Techsys @ Bangalore

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References 1. www.bseindia.com 2. www.rosselindia.com 3. www.rosselltea.com 4. http://www.rosselltechsys.com 5. http://www.rossellhospitality.com 6. http://www.macsema.com/ 7. http://www.teaboard.gov.in 8. http://en.wikipedia.org/wiki/Black_tea#Manufacture 9. www.motilaloswal.com 10. http://www.jayshreetea.com/corporate/about_us 11. http://www.mcleodrusselindia.com/ 12. http://www.chellaramsplc.com/?p=1607 13. http://www.kfc-ng.com/ 14. Annual Reports of Jayshree Tea, Mc Leod Rusell & Rossell India

Disclaimer General: This report is not a buy / sell recommendation. Buying stocks must be done after careful analysis and the above report can be used as a base for the analysis and should not be used as sole basis. Vested Interest: The author has bought the above mentioned stock at an average price of ` 37. He may purchase / sell the same in the future in the short or long term based on his conviction and his financial situation. Data Validity: The data is collated from various sites in the internet. Even though we have tried our best, there may be discrepancy due to human error while collating the data. The author should not be held responsible for such mistakes. The data can be looked up at various websites given in the reference section. Valuation: The author is not an expert and his valuation may be off the mark.

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