MIRA
INFORM REPORT
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Report Date : |
24.11.2006 |
IDENTIFICATION
DETAILS
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Name : |
AMARTEX INDUSTRIES LIMITED |
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Registered Office : |
SCF
18-19, Sector 9D, Chandigarh, Union Territory, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
27.01.1988 |
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Com. Reg. No.: |
53-7928 |
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CIN No.: [Company
Identification No.] |
U18110CH1988PTC007928 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTLA10072G |
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PAN No.: [Permanent
Account No.] |
AABCA2243H |
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Legal Form : |
A
Closely Held Public Limited Liability Company |
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Line of Business : |
Manufacturing,
Trading and Marketing of Textile and Textile Products including Readymade
Garments |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
500000 |
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Status : |
Good |
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Payment Behaviour : |
Usually
Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is a well – established company having satisfactory track. Trade relations
are fair. Financial position of the company is satisfactory. Payments are
correct and as per commitments. The
company can be considered good for any normal business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
SCF
18-19, Sector 9D, Chandigarh, Union Territory, India |
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E-Mail : |
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Website : |
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Factory
1 : |
365
Amartex House, Phase – I, Industrial Area, Panchkula, Haryana, India |
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Tel.
No.: |
91-172-2586399,
2562483 |
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Fax
No.: |
91-172-2584366 |
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E-Mail
: |
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Factory
2 : |
Panchkula
(Haryana) and Baddi (Himachal Pradesh) |
DIRECTORS
|
Name : |
Mr.
Arun Grover |
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Designation : |
Managing
Director |
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Address : |
Plot
No. 365, Industrial Area, Phase – I, Panchkula, Haryana |
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Date of Birth/Age : |
12.07.1961 |
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Date of Appointment : |
27.01.1988 |
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Name : |
Ms.
Sangeeta Grover |
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Designation : |
Whole
time Director |
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Address : |
Plot
No. 365, Industrial Area, Phase – I, Panchkula, Haryana |
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Date of Birth/Age : |
06.12.1964 |
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Date of Appointment : |
15.07.1996 |
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Name : |
Mr.
Narinder Pal Singh |
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Designation : |
Whole
time Director |
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Address : |
9
Anand Vihar, Basa Road, Baltana, Patiala, Punjab |
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Date of Birth/Age : |
05.08.1962 |
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Date of Appointment : |
01.04.2005 |
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Name : |
Mr. J
K Bhardwaj |
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Designation : |
Whole
Time Director |
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Address : |
1247,
Saini Vihar, Phase – III, Baltana, Patiala, Punjab |
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Date of Birth/Age : |
08.08.1957 |
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Date of Appointment : |
01.04.2005 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Mr.
Arun Grover |
3,391,171 |
58.98 |
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Mrs.
Sangeeta Grover |
426,506 |
7.42 |
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Mr.
Amar Gawari |
29,000 |
0.50 |
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Mr.
Amit Gawri |
16,100 |
0.28 |
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Ms.
Anu Gawri |
16,300 |
0.28 |
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Mr.
Tanu Gawri |
14,400 |
0.25 |
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Mr.
Karan Grover |
83,949 |
1.46 |
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Mr.
Varun Grover |
287,357 |
5.00 |
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Mr.
Shivam Grover |
95,475 |
1.66 |
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Mr.
Sunil Arora |
43,957 |
0.76 |
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Mr.
Ashok Arora |
35,857 |
0.62 |
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M/s.
Classic Fabrics Private Limited |
166,000 |
2.89 |
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Mr.
Anuj Sharda |
143,928 |
2.50 |
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M/s.
KVS Apparels Private Limited |
1,000,000 |
17.39 |
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Total |
5,750,000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing,
Trading and Marketing of Textile and Textile Products including Readymade
Garments |
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Products : |
Home
Appliances v
TV
& DVDs v
Juicer
Mixer Grinder v
Grinder v
Oven v
Music
Systems v
Toasters v
Microwave
Ovens v
Washing
Machines v
Soda
Maker v
Multi
Steam Cooker v
Ladies
Duppta v
Suiting v
Shirting v
Home
Furnishing v
Bed
Sheets v
Blankets v
Quilts v
Carpets v
Towels v
Grocery
Items v
Shirts v
Children
Garments v
T-Shirts v
Trousers v
Blazers |
PRODUCTION
STATUS
|
Particulars |
Unit |
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Installed Capacity |
Actual Production |
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Weaving |
Meters |
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1.500 Millions |
1.295 Millions |
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Processed
Fabric |
Meters |
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5.700 Millions |
4.435 Millions |
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Readymade
Garments |
Pieces |
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0.500 Millions |
0.347 Millions |
GENERAL
INFORMATION
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Bankers : |
v
State
Bank of India v
ICICI
Bank Limited v
State
Bank of Indore v
Punjab
National Bank |
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Facilities : |
Subject
has availed Working Capital Loan from |
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Banking Relations : |
Satisfactory
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Auditors : |
M/s
Ashwani K Gupta & Associates Chartered
Accountants (Mr
Ashwani K Gupta, Partner) |
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Address: |
3292,
Sector 20-D, Chandigarh |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
9,250,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 92.500 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
5,750,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 57.500 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
|
57.500 |
57.500 |
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2] Share Application Money |
|
17.500 |
0.000 |
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3] Reserves & Surplus |
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48.108 |
30.688 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
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123.108 |
88.188 |
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LOAN FUNDS |
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1] Secured Loans |
|
191.329 |
74.747 |
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2] Unsecured Loans |
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26.225 |
24.920 |
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TOTAL BORROWING |
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217.554 |
99.667 |
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DEFERRED TAX LIABILITIES |
|
9.994 |
8.866 |
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TOTAL |
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350.656 |
196.721 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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154.180 |
97.567 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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177.945 |
115.841 |
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Sundry Debtors |
|
18.896 |
2.762 |
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Cash & Bank Balances |
|
62.678 |
3.410 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
|
49.531 |
43.469 |
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Total Current Assets |
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309.050 |
165.482 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
|
111.879 |
66.278 |
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Provisions |
|
0.737 |
0.121 |
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Total Current Liabilities |
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112.616 |
66.399 |
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Net Current Assets |
|
196.434 |
99.083 |
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MISCELLANEOUS EXPENSES |
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0.042 |
0.071 |
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TOTAL |
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350.656 |
196.721 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
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Sales Turnover [including other income] |
|
865.333 |
606.347 |
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Profit/(Loss)
Before Tax |
|
22.681 |
15.082 |
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Provision
for Taxation |
|
5.365 |
4.747 |
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Profit/(Loss)
After Tax |
|
17.316 |
10.335 |
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Total
Expenditure |
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824.101 |
577.099 |
KEY
RATIOS
|
PARTICULARS |
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31.03.2005 |
31.03.2004 |
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PAT / Total Income |
|
2.00 |
1.70 |
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Net
Profit Margin |
|
2.83 |
2.50 |
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Return
on Total Assets |
|
3.74 |
3.93 |
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Return
on Investment (ROI) |
|
14.07 |
11.72 |
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Current
Ratio |
|
2.74 |
2.49 |
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Quick
Ratio |
|
1.16 |
0.75 |
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Debt
Equity Ratio |
|
1.77 |
1.13 |
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Current
Liabilities/Networth |
|
0.91 |
0.75 |
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Fixed
Asset / Networth |
|
1.25 |
1.11 |
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Average
Collection Days |
|
8.59 |
1.67 |
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Account
Receivables Turnover |
|
42.47 |
218.68 |
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Inventory
Turnover |
|
4.51 |
5.21 |
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Asset
Turnover |
|
5.20 |
6.19 |
LOCAL AGENCY
FURTHER INFORMATION
Financial
During
the period under review, the turnover of the subject company increased by about
33% to Rs.802.449 Millions as compared to the previous year of Rs.603.997
Millions. The rising trend in respect
of net surplus continued thereby showing an increase of more than 72% over the
previous year. This growth is mainly attributed to good customers’ turnover at
all the stores, improved manufacturing process, use of latest technology, Plant
& machinery. Further the subject followed the policy of opening new
shopping malls and showrooms at various places in New Delhi and in the Northern
part of the country after conducting fact-based market research.
The
subject has launched ‘franchisee partnership’ in important cities and towns of
Punjab, Himachal Pradesh, Haryana, Uttaranchal and UT of Chandigarh including
the other areas of strategic importance.
Profile
Amartex
Industries Limited is a integrated manufacturing Company with a balanced mix of
manufacturing and marketing. The Company is equipped with modern manufacturing
and marketing infrastructure, such as, weaving to processing , designing and
garments manufacturing and is the fastest growing company in the region. The
subject company is selling their products through 34 Company owned retail
outlets . The Company provides consumers with a wide variety of apparel
products and services to suit their individual needs. They have carved out a
niche and name in the industry and cater directly to the varied needs of the
society.
Amartex
was brought into existence in 1988 by a team of competent promoters viz-a-viz :
The Grover Family. The core promoters have more than two decades of experience
in manufacturing and marketing of textile products. The management of the
Company comprises of an appropriate mix of qualified and competent Directors
and Managerial Staff.
The
company has flourished under the able and dynamic guidance of Mr. Arun Grover ,
Managing Director. The Company has grown to be one of the most competitive
companies in the apparel and textile sector, with a large employee base. The
company has complete in- house facilities such as - Dyeing units processing
units , Garment Units , Design Studio and even its own Retail outlets . This
ensures cost effective products and a ready cash flow for the Company.
Professional
staff and optimum use of technological resources enable us to provide high
quality at competitive prices to the consumers.
Press
Clippings
Source:
The Hindu 25.08.2005
New
Delhi , 28.08.2005
AMARTEX
Industries Limited on Thursday announced plans to approach the capital market
by this year-end to raise around Rs. 600.000 Millions. The company plans to
invest the funds in increasing its retail presence across the country from 30
outlets at present to around 50 by the end of 2006-2007.
The
Panchkula-headquartered textile manufacturing and retailing firm also aims to
shed its north India-centric image and spread out to the rest of the country,
the Managing Director, Mr. Arun Grover, said here.
"They
have already tied up with State Bank of India Capital Markets Limited for
advisory service for the IPO and Karvy for providing financial service,"
he said. The company would launch its first retail outlet in the Capital in
Paschim Vihar on August 27.
"They
are planning to open 8 to 10 such shops in Delhi and the National Capital
Region by the end of the next fiscal with a total investment of around
Rs.200.000 Millions. Three of them would start functioning this financial year
itself," Mr. Grover said.
With a
capacity of 1.320 Millions metres of ready-to-wear garments a year, Amartex is
targeting raising its current annual turnover from Rs.1000.000 Millions to over
Rs.1750.000 Millions in the current fiscal, leveraging its advantages of
in-house manufacturing facilities, newer varieties of merchandise and absence
of middlemen in marketing, he added.
The
Amartex General Manager (Marketing), Mr.Anil Bhardwaj, said the company would
focus only on the domestic market for the next year, and had no plans of
exporting, as of now, in the post-quota regime. Founded in 1988 as a textile
unit in Panchkula, Amartex got into retail sales a decade later and currently
has outlets in Haryana, Himachal Pradesh, Punjab, Uttaranchal and Chandigarh,
besides the one coming up in Delhi.
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.44.87 |
|
UK
Pound |
1 |
Rs.85.99 |
|
Euro |
1 |
Rs.58.15 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
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OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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|
--BUSINESS SCALE |
1~10 |
6 |
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--PROFITABILIRY |
1~10 |
6 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
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--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
|
54 |
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 |
|