MIRA
INFORM REPORT
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Report Date : |
16.08.2007 |
IDENTIFICATION DETAILS
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Name : |
ABHISHEK MILLS LIMITED |
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Registered Office : |
GAT No. 148, Tamgaon, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
01.09.1993 |
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Com. Reg. No.: |
73706 |
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CIN No.: [Company
Identification No.] |
U51491PN1993PLC073706 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
KLPA01306E |
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PAN No.: [Permanent
Account No.] |
AACCA0323P |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares Are Listed On
the Stock Exchanges. |
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Line of Business : |
Manufacturers of Cotton Yarn. |
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 1963200 |
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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. A financial position is satisfactory. Payments are
usually correct and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
GAT No. 148, Tamgaon, |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Ramchandra M Mohite |
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Designation : |
Chairman |
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Name : |
Mr. Anasaheb R Mohite |
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Designation : |
Managing Director |
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Name : |
Mr. Abhishek A Mohite |
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Designation : |
Director (Marketing and Strategy) |
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Name : |
Mr. Rama Jawahar Swetta |
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Designation : |
Director |
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Name : |
Mr. Sheshrao D Armal |
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Designation : |
Independent Director |
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Name : |
Mr Shriprakash M Dhopeshwarkar |
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Designation : |
Independent Director |
KEY EXECUTIVES
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Name : |
Mr. Shrenik Uday Nagaonkar |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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A shareholding
of Promoter and Promoter Group |
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1 Indian |
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a Individuals / Hindu Undivided Family |
9908417 |
70.7317 |
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B Public
Shareholding |
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1 Institutions |
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a Mutual Funds / UTI |
185023 |
1.3208 |
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b Financial Institutions / Banks |
25000 |
0.1785 |
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2 Non
Institutions |
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a Bodies Corporate |
2153791 |
15.3749 |
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b Individuals |
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I Individuals – I Individual shareholders holding nominal share capital
up to Rs. 0.100 million |
1465281 |
10.4600 |
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II ii Individual shareholders holding nominal share capital in excess
of Rs. 0.100 million |
175618 |
1.2537 |
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c Other |
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I Clearing Members |
66418 |
04741 |
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II NRI (Repat) |
28914 |
0.2064 |
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Total |
14008462 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers of Cotton Yarn. |
GENERAL INFORMATION
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No. of Employees : |
300 |
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Bankers : |
State Bank of |
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Banking
Relations : |
-- |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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24000000 |
Equity shares |
Rs. 10/- each |
Rs. 240.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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9908462 |
Equity shares |
Rs. 10/-
each |
Rs. 99.084
millions. |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
99.100 |
150.000 |
54.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
391.700 |
184.600 |
66.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
490.800 |
334.600 |
120.300 |
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LOAN FUNDS |
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1] Secured Loans |
553.900 |
523.800 |
391.900 |
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2] Unsecured Loans |
0.500 |
33.600 |
78.100 |
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TOTAL BORROWING |
554.400 |
557.400 |
470.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1045.200 |
892.000 |
590.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
583.200 |
448.300 |
483.400 |
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Capital work-in-progress |
0.000 |
26.700 |
1.200 |
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INVESTMENT |
0.100 |
8.600 |
8.600 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
361.200
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236.400 |
162.200 |
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Sundry Debtors |
98.000
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130.800 |
29.900 |
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Cash & Bank Balances |
38.700
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22.700 |
21.000 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
56.900
|
80.000 |
58.200 |
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Total
Current Assets |
554.800
|
469.900 |
271.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
102.400
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56.000 |
174.500 |
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Provisions |
0.000
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6.300 |
0.000 |
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Total
Current Liabilities |
102.400
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62.300 |
174.500 |
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Net Current Assets |
452.400
|
407.600 |
96.800 |
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MISCELLANEOUS EXPENSES |
9.500 |
0.800 |
0.300 |
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TOTAL |
1045.200 |
892.000 |
590.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
673.600 |
585.900 |
338.300 |
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Other Income |
110.000 |
59.600 |
27.200 |
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Total Income |
783.600 |
645.500 |
365.500 |
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Profit/(Loss) Before Tax |
170.200 |
117.600 |
28.000 |
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Provision for Taxation |
42.100 |
(0.700) |
(2.200) |
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Profit/(Loss) After Tax |
128.100 |
118.300 |
30.200 |
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Expenditures : |
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Raw Materials |
192.400 |
225.500 |
189.600 |
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Excise Duty |
0.000 |
0.000 |
0.000 |
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Power and Fuel Cost |
0.000 |
49.700 |
39.900 |
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Other Manufacturing Expenses |
295.000 |
131.600 |
9.500 |
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Employee Cost |
13.400 |
11.900 |
10.400 |
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Selling and Administration Expenses |
23.700 |
24.300 |
16.400 |
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Miscellaneous Expenses |
0.300 |
1.200 |
3.100 |
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Interest |
34.800 |
31.000 |
33.800 |
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Depreciation |
53.800 |
52.700 |
34.800 |
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Total Expenditure |
613.400 |
527.900 |
33.75 |
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SUMMARISED RESULTS
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Year |
31.03.2007 |
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Type |
Full Year |
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Sales Turnover |
812.100 |
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Other Income |
96.800 |
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Total Income |
908.900 |
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Total Expenditure |
551.300 |
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Operating Profit |
357.600 |
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Interest |
43.700 |
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Gross Profit |
313.900 |
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Depreciation |
39.000 |
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Tax |
53.400 |
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Reported PAT |
218.900 |
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Dividend (%) |
00.000 |
KEY RATIOS
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Year |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
1.35 |
2.26 |
3.77 |
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Long Term
Debt-Equity Ratio |
1.15 |
1.64 |
2.56 |
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Current Ratio |
3.10 |
1.43 |
0.96 |
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TURNOVER RATIOS |
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Fixed Assets |
0.97 |
0.99 |
0.82 |
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Inventory |
2.25 |
2.94 |
2.47 |
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Debtors |
5.89 |
7.29 |
10.33 |
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Interest Cover
Ratio |
5.89 |
4.79 |
1.83 |
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Operating Profit
Margin(%) |
38.42 |
34.36 |
28.55 |
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Profit Before
Interest And Tax Margin(%) |
30.43 |
25.36 |
18.27 |
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Cash Profit
Margin(%) |
27.00 |
29.19 |
19.21 |
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Adjusted Net Profit
Margin(%) |
19.02 |
20.19 |
8.93 |
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Return On Capital
Employed(%) |
21.28 |
20.06 |
12.38 |
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Return On Net Worth(%) |
34.84 |
64.84 |
28.71 |
LOCAL AGENCY FURTHER INFORMATION
History:
Subject was incorporated as Abhishek Cotspin Mills Limited (ACML) on
September 1, 1993 for undertaking the business of manufacture of cotton yarn. Subsequently,
on November 14, 2005, name of their Company was changed to Abhishek Mills
Limited (AML).
The Company, which is a 100% export oriented spinning unit, is promoted by
Ramchandra M. Mohite, Anasaheb R. Mohite and. Anjali A. Mohite. The Company set
up modern manufacturing facilities for 100% combed cotton yarn at Kolhapur with
initial capacity of 13104 spindles in 1999 with total investment of Rs 208.587
millions financed through promoters' contribution of Rs 148.635 millions and
term loan of Rs 45.5 millions from The United Western Bank Limited (now merged
with IDBI Limited). In the year 2003 the company expanded the capacities to
25920 spindles including 2016 spindles of compact spinning with value added
facilities like Autoconer, TFOs, Singeing. This expansion of Rs 350.0 millions
was financed through term loan of Rs 230.2 millions from the Indian Overseas
Bank and balance through internal accruals/Promoter contribution. The Company
initiated another expansion in its spinning capacity by 7200 spindles in 2005,
and commercial production of which commenced from April 2006. The cost of above
expansion of 7200 spindles was Rs. 130.0 millions which has been financed
through term loans of Rs 113.7 millions by The United Western Bank Limited (now
merged with IDBI Limited) and balance through internal accruals/Promoter
contribution.
The company ventured into construction business in the year 2000 and undertook
job work for Morbe dam (earthern) project on Dhavri River, from M/s. R.M.
Mohite & Co., companies group firm, which is a category Class IA registered
contractor with PWD, GoM and pursuing government contracts for last 30 years.
This diversification was considered necessary to overcome maximum ceiling on
contracts that can be performed by any registered contractor for several state
corporations in
The Company, with more than 3 years experience in construction activity, became
eligible and applied for registration as category Class IB registered
contractor with PWD, GoM. On obtaining this registration, the company will be
eligible to bid for various infrastructure projects directly.
With the companies experience to cater to the premium segment of the fine yarn
export market, the company now intend to set up an integrated yarn dyed shirting
fabric project to tap its growing domestic and overseas market. Further, the
Company is also planning to increase its spinning capacity by adding another
12000 spindles to meet additional requirement of yarn for captive consumption.
About Them:
Subject, a 100% Export Oriented unit, is promoted by Mr. Ramchandra Mohite (Chairman), Mr. Anasaheb R Mohite (Managing Director) and Dr. Anjali A. Mohite. Mr. Ramchandra Mohite (Chairman),and Mr. Anasaheb R Mohite who are well known in the field of infrastructure development, specializing in earthen dams and are Pioneers in this type of construction activity involving heavy machinery and equipments like Hydraulic Excavators,Loaders, Vibrator compactors, Compressors, Dozers, Tippers in Maharashtra.
They have presence in two segments i.e. yarn manufacturing through 100%
E.O.U.our spinning unit, with 33120 spindles producing 100% combed cotton
yarn and in Construction business where they have applied for
registration as category Class IB registered contractor with PWD, GoM.
Directors Profiles:
Mr. Ramchandra Mohite, Chairman
Mr. Ramchandra Mohite, Chairman of Abhishek is a self made man who started from scratch and has built an empire of different enterprises in the field of construction activity involving Dams & reservoirs, Banking & Non-Banking Financial Institutions, Education etc.
His skills in identifying modern technology and equipments, hardwork and
uncompromising attitude in delivering quality in all fields of activity have
paid very rich dividends. His is an unique success story which has made him a
legend in his own life time.
Mr. Anasaheb R
Mohite, Managing Director
Mr. Anasaheb R Mohite, Managing Director and son of Mr.
Ramchandra Mohite is a qualified civil engineer and started his professional
career under the guidance of his father. He has handled big civil construction
projects independently and has travelled widely across
He has also been associated with textile business for last 13 years and
Abhishek - the diversification into textiles - has been his brainchild. He had
an indepth study undertaken for different avenues open for the diversification
activity and after much fieldwork, he zeroed in on a spinning project, which is
being followed by a weaving and processing project.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.41.57 |
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|
1 |
Rs.82.14 |
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Euro |
1 |
Rs.55.74 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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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 |
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--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 |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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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. |
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 |
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