MIRA
INFORM REPORT
|
Report Date : |
19.10.2006 |
IDENTIFICATION
DETAILS
|
Name : |
DHANALAXMI
ROTO SPINNERS LIMITED |
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Registered Office : |
Sy.
No. 114 & 115, Station Road, Mahaboobnagar, Thimmapur – 509
325, Andhra Pradesh, India. |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
11.09.1987 |
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Com. Reg. No.: |
01-7769 |
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CIN No.: [Company
Identification No.] |
U18100AP1987PTC007769 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDS08949D |
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PAN No.: [Permanent
Account No.] |
AAACD8429P |
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Legal Form : |
A
Public Limited Liability Company. The company’s shares are listed on the
stock exchange. |
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Line of Business : |
The
company is engaged in the business of manufacturing of cotton yarn by open
and spinning process. |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
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Maximum Credit Limit : |
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Status : |
Moderate
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Payment Behaviour : |
Slow
by average 45 days |
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Litigation : |
Clear |
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Comments : |
Subject
is an established company having moderate track. Profit margin is low.
Payments are reported as slow by average 45 days. The
company can be considered for small to mediocre business dealing at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office/Factory: |
Sy.
No. 114 & 115, Station Road, Mahaboobnagar, Thimmapur – 509
325, Andhra Pradesh, India. |
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Corporate Office: |
15-9-55,
Inani House,Maharaj Gunj, Hyderabad – 500 012, Andhra Pradesh, India. |
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Tel. No.: |
91-40-24601782/3/32990707 |
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Fax No.: |
91-40-27847960 |
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Mobile No.: |
91-9866322221 |
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E-Mail: |
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Website: |
DIRECTORS
|
Name : |
Mr.
Rajkumar Inani |
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Designation : |
Whole
Time Director |
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Name : |
Mr.
Narayan Inani |
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Designation : |
Executive
Director |
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Name : |
Mr.
Rajiv Kumar Maheshwari |
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Designation : |
Director
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Name : |
Mr. K.
N. Prasad |
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Designation : |
Director
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Name : |
Mr.
Shyam Sunder Jakhotia |
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Designation : |
Director
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MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Promoters
Holding |
|
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|
Promoters |
|
|
|
- Indian
|
706800 |
18.12 |
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|
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Persons
acting in concert |
739900 |
18.97 |
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Sub
Total (A): |
1446700 |
37.09 |
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|
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Others: |
|
|
|
Private
Corporate Bodies |
202959 |
5.20 |
|
Indian
Public |
2238682 |
57.40 |
|
NRIs/
OCBs |
10959 |
0.28 |
|
Any
Other |
1000 |
0.03 |
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Sub
Total (B): |
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|
|
|
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Grand
Total (A+B): |
3900300 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The
company is engaged in the business of manufacturing of cotton yarn by open
and spinning process. |
GENERAL
INFORMATION
|
No. of Employees : |
200 |
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|
|
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Bankers : |
Ř
Tamilnad
Mercantile Bank Limited Kishangunj Branch, Hyderabad –
500 012, Andhra Pradesh, India Ř
Citi
Bank Begumpet Branch, Hyderabad –
500 012, Andhra Pradesh, India |
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Facilities : |
-- |
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Banking Relations : |
-- |
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Auditors : |
G. D.
Upadhyay & Company Chartered
Accountant |
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Tel. No.: |
15-1-53,
2nd Floor, Upstairs Andhra Bank, Opposite Goshamahal High School |
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|
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Associates: |
Ř
Inani
Securities Limited Ř
Anirudh
Marketing Ř
Inani
Commodities & Finance Limited Ř
Inani
Distributors Ř
Inani
Real Estate and Developers (Private) Limited Ř
Dhansree
Syntex (Private) Limited Ř
Sri
Balaji Enterprises |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity
Shares |
Rs. 10/- each |
Rs. 50.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3900300 |
Equity
Shares |
Rs. 10/- each |
Rs. 39.003 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
39.003 |
39.003 |
39.000 |
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|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
3.408 |
3.408 |
(4.400) |
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4] (Accumulated Losses) |
(2.101) |
(3.389) |
0.000 |
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|
NETWORTH |
40.310 |
39.022 |
34.600 |
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|
LOAN FUNDS |
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|
|
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|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
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TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
0.432 |
0.000 |
0.000 |
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TOTAL |
40.742 |
39.022 |
34.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7.161 |
7.553 |
6.200 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
2.652 |
2.727 |
1.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.357 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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|
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Inventories |
4.323
|
0.000 |
2.200 |
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Sundry Debtors |
8.267
|
10.359 |
4.300 |
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|
Cash & Bank Balances |
5.755
|
3.607 |
4.400 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
17.002
|
19.795 |
20.100 |
|
Total Current Assets |
35.347
|
33.761 |
31.000 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
4.418
|
5.641 |
4.500 |
|
|
Provisions |
0.000
|
0.000 |
0.300 |
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Total Current Liabilities |
4.418
|
5.641 |
4.800 |
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Net Current Assets |
30.929
|
28.120 |
26.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.265 |
0.500 |
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TOTAL |
40.742 |
39.022 |
34.600 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
52.324 |
77.873 |
46.200 |
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|
|
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Profit/(Loss)
Before Tax |
2.332 |
5.458 |
4.600 |
|
Provision
for Taxation |
1.044 |
1.085 |
1.400 |
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Profit/(Loss)
After Tax |
1.288 |
4.373 |
3.200 |
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|
|
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Export
Value |
0.357 |
0.000 |
0.000 |
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Total
Expenditure |
49.995 |
72.424 |
41.200 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2006 (1st Quarter) |
|
Sales Turnover |
|
|
15.300 |
|
Other Income |
|
|
0.300 |
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Total Income |
|
|
15.600 |
|
Total Expenditure |
|
|
15.100 |
|
Operating Profit |
|
|
0.500 |
|
Interest |
|
|
0.000 |
|
Gross Profit |
|
|
0.500 |
|
Depreciation |
|
|
0.100 |
|
Tax |
|
|
0.000 |
|
Reported PAT |
|
|
0.400 |
200606 Quarter 1
Notes EPS is basic and diluted. Status of Investor
Complaints for the quarter ended 30.06.2006 Complaints Pending at the beginning
of the quarter Nil Complaints Received during the quarter Nil Complaints
disposed off during the quarter Nil Complaints unresolved at the end of the
quarter Nil 1. The above unaudited results were taken on record by the Board of
Directors at its meeting held on 31.07.2006. 2. The above Income from
operations relates to the trading activity of the Company. 3. The Company is
mainly engaged in Trading Activity. 4. Tax provisions will be provided at the
time of finalising the accounts.
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
(%) |
2.46
|
5.61 |
6.93 |
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Net
Profit Margin (PBT/Sales) |
(%) |
4.46
|
7.01 |
9.96 |
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Return
on Total Assets (PBT/Total
Assets} |
(%) |
5.16
|
12.22 |
11.68 |
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Return
on Investment (ROI) (PBT/Networth) |
|
0.06
|
0.14 |
0.13 |
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Debt
Equity Ratio (Total
Liability/Networth) |
|
0.11
|
0.14 |
0.14 |
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Current
Ratio (Current
Asset/Current Liability) |
|
8.00
|
5.98 |
6.46 |
STOCK PRICES
|
Face
Value |
Rs.
10/- |
|
High |
Rs.
38.75/- |
|
Low |
Rs.
35.15/- |
LOCAL AGENCY
FURTHER INFORMATION
History:
Dhanalaxmi
Roto Spinners Limited was originally incorporated as a Private Limited
Liability Company. Subsequently, it was converted in to a Public Limited
Liability Company. The company was promoted by Ramakant Inani and Srikant
Inani. Later, Rajkumar Inani and Dinesh Kamkani joined the company. The company
is engaged in the business of manufacturing cotton yarn by open end spinning
process since 1987. The company had setup two open and machines having 336
rotors and started production in 1989. The company has added one more machines
of 192 rotors in March 1994, taking the total capacity to 1387 MT p.a.
The
expansion programme to increase the installed capacity has been successfully
completed.
Review
of Operations:
During
the year under review, the company has made a gross income of Rs. 52.324
Millions in trading activity when compared to Rs. 77.874 Millions in the
earlier year. Net Profit earned during the year under review amounted to Rs.
2.329 Millions, as against Rs. 5.449 Millions in the previous year. The company
expects to improve performance in the future years.
Fixed
Assets:
Land,
Building, Borewell, Plant & Machinery, Equipments, Vehicles, Cycle, Live
Stock, Furniture & Fixture & Computer and Printers, etc.
As
Per Website:
A
Group that appeals all.
Genuine class is
few & doesn’t come often - they feel proud to have customers like these and
to reveal that they possess that kind of Appeal...
Their business portfolios extends to the following:
Ř
Textiles
Ř
Stock
Broking
Ř
Paper
Ř
Import
/ Export Trading
Ř
Cotton
Ginning
Ř
Licensing
Ř
Real
Estate
Ř
Charitable
Activities
Ř
Agriculture
Business
baton has passed from generation to generation, but the guiding illumination
has become only stronger.14 decades have flown by with a strong base in noted
places such as Hyderabad, Secunderabad, Mumbai, Kakinada & Madnoor.
A brief
glance about their Firms.
Inani & Company:
Established in 1962, deals in Textile Distribution business in association with
S. Kumars group for their uniform fabrics in the state of Andhra Pradesh,
India. In addition, deals in sale of ‘Reid and Taylor’ & ‘Isuzu Textiles’
brand fabrics & functions as a leading distributor for uniform fabrics.
Dhanalaxmi Roto Spinners Limited:
Founded in 1987 as a cotton spinning factory & went public in the year
1992. Deals in import, export & trading of products such as wood pulp and
waste paper and exports of various grades of paper.
Inani Securities Limited:
Founded
in 1984 with interests in stock broking business. A member of noted stock
exchanges such as Hyderabad Stock Exchange, NSE, BSE, HSC OTCEI & recently
ventured into commodity Stock broking by becoming a member of MCX.
Anirudh
Marketing:
Established in 1996 & deals in the distribution of paper, waste paper &
wood pulp n the domestic markets.
Ranganath
Enterprises Private Limited:
Manufactures cast iron, used in fan manufacturing industries based in Hyderabad
& other such products such as fan bodies, telephone sockets and other cast
iron products.
Pramila Impex:
Deals in the business of DEPB and DFRC licenses with offices at Mumbai,
Hyderabad and Jalandhar.
Sri
Balaji Industries:
Manufactures Cotton Ginning products at its manufacturing plant at Madnoor,
Andhra Pradesh. Cotton ginning possess a sizeable market & growing
technology has made the product even more refined. Their success in this field
has been excellent.
Inani Real Estates and Developers Private Limited:
Involved in construction, Real estate development, warehousing and investments
in real estate development projects & owns properties at various locations.
Inani Krishi Kendra:
Agriculture and farm development activities on a sprawling 400 acres of land at
Madnoor. The work quality has kept momentum and pace in rhythm with evolving
technologies and enshrined their stamp of excellence to blend the best of
traditional & modern methods.
Inani Charitable Trust:
Just living & breathing business is not their goal, they aim to serve
society to give back what it has given back to us all these years. The same
well reflected in their commitment to numerous religious and charitable works
in Choultries, Hospitals, School and Temples. Charity lifts their spirits to
bring a smile to those who benefit from their charity works. Their motto is to
take this spirit further & enliven the joy of sharing & living.
Future Plans
Future always beckons & looking ahead has shaped their strategy. Global
changes has altered the way they think & walk ahead, us being no exception.
They intend getting into new & exciting segments that holds fine prospects.
Trading in textile uniform of paper and other commodities are their core
competencies of they look further to strengthen that.
Never look back, but learn from past mistakes as to never repeat them &
look ahead is their Spark to a better road ahead.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs. 45.09 |
|
UK
Pound |
1 |
Rs.85.54 |
|
Euro |
1 |
Rs.57.32 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
36 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|