Studds Accessories Limited Unlisted Shares

(i) ABOUT STUDDS ACCESSORIES LTD.

a)They are the largest two-wheeler helmet manufacturer of the world(In terms of a total number of helmets sold in FY 2018 (source: F&S Industry report) diligently serving their customers with safety, style, and comfort.

b) With a market share of more than 25% in India, they have established themselves as the largest organized player in the industry. Since their incorporation in 1983, they have witnessed a sustained growth in their business. What started as a small manufacturing set up is today 2 manufacturing facilities company spread across almost 6 acres in Faridabad, Haryana.

c) Largest- Manufacturer of Helmets in the world, UNIQUE- Their laboratory is the only one in the industry (in India) to be certified by European Safety Agency, and Safety – They use one of the best technologies in the world to
produce certified products.

(ii) Presence of the Company
The company has a presence in almost more than 30 countries in the world.

(iii) Competitiveness

a) Innovation– 16 New Products launches in the last 3 years.
b) Excellence– 21 No. of quality/safety tests done in-house (per helmet as per ECE 22.05 standard).
c) Adaptability– 7 Different sizes are available in the helmet.
d) Presence- Over 360 Active dealer network across India as on 31st March 2018 across more than 30 countries.

(iv) Look and Feel of the Products of the Company

a) Full-face helmet and b) Flip-up full face helmets

c) Flip-off full face helmets and d) Open Face Helmets

e) Sporting helmets and f) Industrial Helmets

g) Off-road full face helmets

(v) Revenue Model

(a) The company sells a helmet in the range of Rs.825 to 2165 under the brand name Studds having a market share of 25% as on FY18.

(b) The company sells a helmet in the range of Rs.2300 to 9800 under the brand name SMK having a market share of 27.79% as on FY18.

(c) Apart from selling a helmet the company also in the business of Motorcycle Accessories like Jacket, Gloves, Glass etc.

(d) The 90% of the Revenue comes from Helmet division and 10% comes from Motorcycle Accessories.

(e) The 92.3% of the business comes from the Domestic Market and rest 7.97% comes from Export.

(vi) Future Plans

The company plans to enter into manufacturing and selling bicycle helmets. These products would be destined for the domestic and global market. Bicycle helmets have a larger market share in advanced Economies and as such we expect a bigger export market.

Studds Accessories Limited Unlisted Shares Details:

Total Available Shares:	10
Face Value:	₹ 5 Per Equity Share
Lot Size:	50-100 Shares
Current Unlisted Share Price:	₹ 850 Per Equity Share
Retail Discount:	Bulk Deal (1%)

Promoters And Management:

(i) Mr. Madhu Bhushan Khurana is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in engineering (aeronautical) from the Panjab University. Madhu Bhushan Khurana has been on Board since our Company’s incorporation. Prior to incorporating Company, he was an entrepreneur and had commenced the business of manufacturing motorcycle helmets. He has over 35 years of experience in the field of business administration, finances, strategies, and manufacturing. (ii) Mr. Sidhartha Bhushan Khurana is the Managing Director of the Company. He holds a bachelor’s degree in engineering (aeronautical) from the Panjab University. He has been on Board since 1998. He has more than 19 years of experience in the field of business administration, finance, strategy, and manufacturing. (iii) Mr. Shanker Dev Choudhry is an independent Director of the Company. He holds a bachelor’s degree in science (metallurgy) from the Panjab University. He has been on Board since March 2, 2015. Previously, he has worked with the Bureau of Indian Standards for more than 20 years and has experience in quality management and quality control activities.

Financials of Studds Accessories Limited Unlisted Shares:

1. Assets and Liabilities Key Parameters
Year	Asset(M)	Liabilities(M)	Net Worth(M)	Book Value	Debt	Debt/Equity	RONW
FY16	1,234.28	598.93	635.35	581	24.30	0.04	39%
FY17	1,416.99	546.74	870.25	796	24.75	0.03	27%
FY18	2,228.33	1,041.45	1,186.88	1086	3.51	0.00	28%

2. Profit n Loss Key Parameters
Year	Revenue(M)	PAT(M)	EBITDA Margins	Profit Margins	Outstanding Shares( M)	EPS
FY16	2,930.26	245.59	13.4%	8%	1.093	225
FY17	3,111.33	236.01	11.9%	8%	1.093	216
FY18	3,417.89	328.81	16.8%	10%	1.093	301
Post Issue					17.4904	18.80

3. Cash Flow Statement(all figures in Million)
Particulars	FY18	FY17	FY16
(i) Net Cash Generated from Operation	431.28	231.1	348.39
(ii) Net Cash Generated from Investment	-324.41	-209.76	-357.8
(iii) Net Cash Generated from Financing Activity	-36.26	-2.7	-71.91
(iv) Total[ (i)+(ii)+(iii) ]	70.61	18.64	-81.32
(v) Cash and Cash Equivalent (Opening)	100.84	82.2	163.52
(vi) Cash and Cash Equivalent (Closing)	171.45	100.84	82.20

Key Salient Points: 1. The Company has shown 8% Revenue Growth in the last 3 years. 2. The Company has shown 15.21% PAT Growth in the last 3 years. 3. The Company has almost debt Free. 4. The Company has Excellent Return Ratios ROE and ROCE in the last 3 years.

Year	ROE	ROCE
2016	39%	52%
2017	27%	37%
2018	28%	32%

5. The Company is continuously generating the cash in the last 3 years which is big positive for the company.

Comparison With Peers:

There are no listed entities in India which are similar to the line of business and comparable to STUDDS scale of operations.

Annual Report 2018

Discussion on Studds Accessories Limited Unlisted Shares:

On 17-12-2018, the Studds Limited got approval from SEBI for IPO.

The company, which had filed its draft papers with the markets regulator in August seeking its clearance for the initial public offer (IPO), obtained Sebi’s observations on December 14, latest data with the capital markets watchdog showed. Studds Accessories’ IPO comprises fresh issuance of shares worth Rs 98 crore besides an offer for sale of 39.39 lakh equity shares by promoters Madhu Bhushan Khurana and Sidhartha Bhushan Khurana, and other existing shareholders, according to the draft papers.

The company plans to use Rs 83 crore to part-finance the construction of two factories. It also plans to use some money for general corporate purposes.

(i) The Company was having total outstanding Shares of 1,093,150 with FV=10 as on March FY18.

(ii) Then on July 07 2018, the company had spilt the FV from 10 to 5 and accordingly the number of shares increased to 2186300 Shares.

(iii) Then on July 16 2018, the company has issued bonus shares in the ratio 1:8 and accordingly the number of shares increased to 17,490,400 Shares before the issue.

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