MIRA INFORM REPORT

 

 

Report Date :

07.12.2007

 

IDENTIFICATION DETAILS

 

Name :

BANSWARA SYNTEX LIMITED

 

 

Registered Office :

Industrial Area, Dohad Road, Banswara –327 001, Rajasthan

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

05.05.1976

 

 

Com. Reg. No.:

1684

 

 

CIN No.:

[Company Identification No.]

L24302RJ1976PLC001684

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

JDHB01978E / JDHB04353G

 

 

PAN No.:

[Permanent Account No.]

AAACB8403F / AAACB8403F

 

 

Legal Form :

It is a public limited liability company.  The company’s shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing and marketing of synthetic Fiber and Yarn.

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

 

Maximum Credit Limit :

USD 3260000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established and reputed company having satisfactory track.  Available information indicates satisfactory financial responsibility of the Company. Trade relations are fair.  Business is active.  Payments are usually correct and as per commitments.

 

The Company can be considered normal for business dealing at usual trade terms and conditions.

 

LOCATIONS

 

Registered Office :

Industrial Area, Dohad Road, Banswara –327 001, Rajasthan, India

Tel. No.:

91-2962-242301 to 242306 / 240690 / 240691 / 240693

Fax No.:

91-2962-240692

E-Mail :

secbsw@banswarafabrics.com

Website :

www.banswarasyntex.com

 

 

Factory 1 :

98/3, Village Kadaiya, Nani Daman, Daman 396 210

 

 

Factory 2 :

Survey No. 713/1, 713/2, 713/3, 725/2 and 725/1, Village Dabhel, Nani Daman, Daman 396 210

 

 

Factory  3 :

Plot No. 5-6, G.I.D.C. Apparel Park, SEZ Sachin, Surat 394 230, Gujarat, India

 

 

 

 

Branches :

Ø       Gopal Bhawan, 5th Floor, 199, Princess Street, Mumbai – 400 002, Maharashtra, India

 

Ø       Flat No. 204, E-2, A.R.A. Centre, Jhandewalan, Delhi – 110 055, India

 

Ø       Ankur Apartments, S-6, Jyoti Nagar Extension, Jaipur 302 005, Rajasthan, India

 

DIRECTORS

 

Name :

Mr. R. L. Toshniwas

Designation :

Chairman and Managing Director

Date of Birth/Age :

73 Years

Qualification :

M. Sc.

 

 

Name :

Mr. Ravi Toshniwal

Designation :

Managing Director

Date of Birth/Age :

43 Years

Qualification :

B. Tech

 

 

Name :

Mr. Rakesh Mehra

Designation :

Director

Date of Birth/Age :

50 Years

Qualification :

F.C.A.

 

 

Name :

Mr. Shaleen Toshniwal

Designation :

Director

Date of Birth/Age :

30 Years

Qualification :

MBA

 

 

Name :

Mr. D. S. Alva

Designation :

Director

 

 

Name :

Mr. P. Kumar

Designation :

Director

 

 

Name :

Mr. D. P. Marg

Designation :

Director

 

 

Name :

Mr. S. B. Agarwal

Designation :

Director

 

 

Name :

Mr. Vijay Agarwal

Designation :

Director

 

 

Name :

Mr. Kamal Kishore Kacholia

Designation :

Director

 

 

Name :

Mr. A. N. Jariwala

Designation :

Director

 

 

Name :

Mr. Vijay Mehta

Designation :

Director

 

 

Name :

Mr. P. A. Makwana

Designation :

Director

 

KEY EXECUTIVES

 

Name :

Mr. S. S. Sajal

Designation :

President

 

 

Name :

Mr. J. K. Rathi

Designation :

President (Commercial)

 

 

Name :

Mr. V. G. Maheshwari

Designation :

President (Daman Unit)

 

 

Name :

Mr. J. K. Jain

Designation :

Sr. Vice President [Finance and Commerce]

 

 

Name :

Mr. S. N. Gupta

Designation :

Senior Vice President [Technical]

 

 

Name :

Mr. S. N. Gupta

Designation :

Sr. Vice President [Technical]

 

 

Name :

Mr. S. S. Kella

Designation :

Vice President [Audit and Taxation]

 

 

Name :

Mr. S. R. Jain

Designation :

Vice President [Engineering]

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No. of Shares

Percentage of Holding

Promoters

7180775

57.25

Mutual Funds and UTI

4925

0.04

Banks, Financial Institutions, Insurance Companies

60865

0.49

Private Corporate Bodies

1752158

13.97

Indian Public

3253805

25.93

NRIs/OCBs/Foreign Nationals

291333

2.32

Total

12543861

100.00

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and marketing of synthetic Fiber and Yarn.

 

 

Products :

Item Code No. (ITC Code)

5509

Product Description

Yarn Synthetic Staple

 

 

Item Code No. (ITC Code)

5513

Product Description

Woven Fabric

 

 

Item Code No. (ITC Code)

6203

Product Description

Garment

 

PRODUCTION STATUS

 

Particulars

 

 

 

Installed Capacity

Yarn Spinning (Ring Spindles)

 

 

 

102464

Yarn Spinning (Air Jet Spindles)

 

 

 

576

Fabric Weaving (Looms)

 

 

 

148

Fabric Processing (Stenters)

 

 

 

4

 

 

Particulars

Unit

 

 

Actual Production

Yarn

Kg

 

 

20355343

Cloth

Mrts.

 

 

20997972

Garments

No. of pcs

 

 

657850

Waste

kgs

 

 

1466447

Including Job done by others

Kgs.

 

 

70823

Including Job woven by others

Mtrs.

 

 

11620042

Excluding Job processing for others

Mtrs.

 

 

3482644

Including Job done by others

Pcs.

 

 

3334

Excluding Job done for others

Pcs.

 

 

3369

 

GENERAL INFORMATION

 

No. of Employees :

4000

 

 

Bankers :

q                 Punjab National Bank

q                 Union Bank of India

q                 Bank of Baroda

q                 Bank of India

 

 

Facilities :

Particulars

As on 31.03.2007

 [Rupees in Millions]

SECURED LOAN

 

Term Loans From Financial Institutions / Banks

 

 

Industrial Development Bank Of India

197.131

Bank of Baroda

248.084

Punjab National Bank

499.130

Export Import Bank of India

471.558

Union Bank of India *

137.711

Bank of India

69.651

From Others

5.717

Interest Accrued and Due on Term Loans

8.125

 

 

Deferred Payment Credits

26.862

 

 

Working Capital Loans from Banks

 

Punjab National Bank

456.584

Union Bank of India

105.772

Bank of Baroda

35.015

Bank of India

42.982

 

 

Unsecured Loans

 

Fixed Deposits : From Directors

2.123

                           From Others

79.990

 

 

Long Term Loans from Corporate

20.025

Short Term Loan : From Bank

50.254

                             From Others

0.895

Deferred Payment Credits

153.287

 

Securities

Term Loans From Financial Institutions / Banks

Term Loans from Financial Institutions and Banks are secured by a joint equitable mortgage and/or hypothecation charges ranking pari-passu on immovable/movable properties, present and future of the Company subject to prior charges in favour of the Bankers on specified movable properties created and/or to be created for working capital facilities. However, documentation

for joint equitable mortgage in respect of term loans of Rs. 500 Millions is yet to be executed.

 

Term Loans from Financial Institutions and Banks are guaranteed by Shri R.L. Toshniwal, Chairman & Managing Director and Shri Ravi Toshniwal, Joint Managing Director in their personal capacities except for term loan of Rs 500 Millions from Export Import Bank of India & for term loan of Rs. 91.140 Millions from Export Import Bank of India, which is guaranteed only by Shri R.L.Toshniwal,Chairman & Managing director.

 

Includes Term Loan of Rs. 18.800 Millions of erstwhile Banswara Textile Mills Ltd. (e BTML) secured by joint equitable mortgage of land & building acquired by e BTML vide lease agreement dated 11-6-1980 and 20-6-1980, registered at Book No. 1, admeasuring 54 bigha, 12 biswa and/ or hypothecation of plant & machinery all present and future of e BTML and guaranteed by Shri R.L.Toshniwal, Chairman & Managing Director and Shri Shaleen Toshniwal, Wholetime Director in their personal capacities.

 

For Others:

Term Loans from others are for hire purchase finance from HDFC Bank Ltd. and ICICI Bank Ltd. secured by way of hypothecation of Vehicle financed by them.

 

For Deferred Payment Credits:

Deferred payment credits under Sales Tax Deferment Scheme for Industries 1987 are secured by a joint equitable mortgage and/or hypothecation charges ranking pari-passu on immovable/movable properties procured for expansion project as prescribed under the said scheme.

 

For Working Capital Loans:

Working Capital Loans are secured by way of hypothecation (Floating charges) of Raw material, Dyes-Chemicals, Packing Materials, Stores & Spares, Stock-in-process, Finished goods, Book debts, Export Incentives and second charge on all the Fixed Assets of the Company and also guaranteed by Shri R.L. Toshniwal, Chairman & Managing Director and Shri Ravi Toshniwal, Joint Managing Director in their personal capacities.

 

Includes Rs. 789.500 Millions in name of e BTML secured by way of hypothecation of raw material, stock in process, finished goods, stores & spares and book debts and guaranteed by Shri R.L.Toshniwal, Chairman & Managing Director and Shri Shaleen Toshniwal, Wholetime Director in their personal capacities.

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

Kalani and Company

Chartered Accountants

Address :

Bapu Nagar, Jaipur 302 004

 

 

Joint Venture/Associates :

Ø       Carreman Fabrics India Limited

Ø       Banswara Fabrics Limited

Ø       Banswara Textile Mills Limited

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

20000000

Equity Shares

Rs. 10/- each

Rs. 200.000 Millions

500000

Redeemable Preference Shares

Rs. 100/- each

Rs. 50.000 Millions

 

Total

 

Rs. 250.000 Millions

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

12543861

Equity Shares

Rs. 10/- each

Rs. 125.439  Millions

 

Less : From Others   

 

Rs. 0.289 Millions

173000

3% Redeemable Preference Shares

Rs. 100/- each

Rs. 17.300 Millions

 

Total

 

Rs. 142.450 Millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2007

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

142.450

77.695

68.100

2] Share Application Money

28.501

24.569

0.000

3] Reserves & Surplus

646.257

529.875

398.500

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

817.208

632.139

466.600

LOAN FUNDS

 

 

 

1] Secured Loans

2304.322

1768.239

1352.100

2] Unsecured Loans

153.287

150.901

154.400

TOTAL BORROWING

2457.609

1919.140

1506.500

DEFERRED TAX LIABILITIES

195.678

184.143

0.000

 

 

 

 

TOTAL

3470.495

2735.422

1973.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2445.190

1703.784

1228.500

Capital work-in-progress

0.000

0.000

91.100

 

 

 

 

INVESTMENT

65.329

27.831

1.400

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

823.631

773.082

627.100

 

Sundry Debtors

303.036

287.992

218.900

 

Cash & Bank Balances

61.363

61.496

28.400

 

Other Current Assets

199.753

172.986

0.000

 

Loans & Advances

144.303

187.348

272.800

Total Current Assets

1532.086

1482.904

1147.200

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Current Liabilities

485.231

421.169

461.300

 

Provisions

87.291

60.085

34.200

Total Current Liabilities

572.522

481.254

495.500

Net Current Assets

959.564

1001.650

651.700

 

 

 

 

MISCELLANEOUS EXPENSES

0.412

2.157

0.400

 

 

 

 

TOTAL

3470.495

2735.422

1973.100

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

3975.600

3285.505

2588.700

Other Income

849.903

701.215

161.300

Total Income

4825.503

3986.72

2750.000

 

 

 

 

Profit/(Loss) Before Tax

227.847

157.060

67.800

Provision for Taxation

78.414

64.490

30.000

Profit/(Loss) After Tax

149.433

92.570

37.700

 

 

 

 

Earnings in Foreign Currency :

2195.142

2195.142

0.000

 

 

 

 

Total Imports

96.969

79.038

0.000

 

 

 

 

Expenditures :

 

 

 

 

Materials

2602.052

2157.431

1470.600

 

Manufacturing Expenses

888.713

703.291

106.500

 

Payment to Employees

280.524

232.191

223.400

 

Administrative and selling expenses

339.472

288.668

394.900

 

Financial Expenses

178.096

143.711

174.800

 

Excise Duty

32.527

24.994

199.900

 

Miscellaneous Expenses

0.000

0.000

26.900

 

Interest and Financial Charges

0.000

0.000

125.800

 

Depreciation & Amortization

162.563

133.094

107.400

 

Accretion/[Decretion] to stock

[81.119]

[27.895]

[148.000]

Total Expenditure

4402.828

3655.485

2682.200

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2007

30.09.2007

Type

 

1st Quarter

2nd Quarter

Sales Turnover

 

933.900

1045.700

Other Income

 

01.300

03.200

Total Income

 

935.200

1048.900

Total Expenditure

 

803.500

922.700

Operating Profit

 

131.700

126.200

Interest

 

56.300

55.600

Gross Profit

 

75.400

70.600

Depreciation

 

43.900

46.600

Tax

 

04.200

03.600

Reported PAT

 

20.200

15.000

 

KEY RATIOS

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

3.13

3.19

2.95

Long Term Debt-Equity Ratio

2.09

2.00

1.92

Current Ratio

1.03

1.07

1.12

Fixed Assets

1.54

1.55

1.46

Inventory

5.02

4.73

4.90

Debtors

13.55

13.07

12.43

Interest Cover Ratio

2.18

2.02

1.54

Operating Profit Margin(%)

14.59

13.42

11.63

Profit Before Interest And Tax Margin(%)

10.53

9.40

7.48

Cash Profit Margin(%)

7.79

6.81

5.61

Adjusted Net Profit Margin(%)

3.73

2.80

1.46

Return On Capital Employed(%)

14.61

13.85

10.87

Return On Net Worth(%)

21.59

17.25

8.35

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Fixed Assets:

Ø       Land and site developments

Ø       Roads & buildings

Ø       Plant & machinery

Ø       Building machinery

Ø       Electric & water supply installation

Ø       Furniture & fixtures

Ø       Office equipments

Ø       Live stock

Ø       Vehicles.

 

 

OPERATIONS: 
 
The Company's performance in all the fields has improved significantly during the Financial Year 2006-07. The production of yarn increased to 20.400 Millions kgs. up by 6%, production of cloth rose to 21 Millions meters, up by 28% and production of garments went up by 50%. As a result gross income of the Company at Rs.4711.800 Millions recorded an increase of 22.7% over the previous year. This is the second consecutive year of increase in gross income by over 20%. 

 
The improved performance in production and sales coupled with better efficiency and margins has resulted in higher profitability also. The profit before depreciation and tax increased to Rs. 390.400 Millions for 2006-07 as against Rs.290.200 Millions in 2005-06 i.e. up by about 35%. Profit after tax for the year 2006-07, at Rs.149.400 Millions recorded 61% growth over the previous year. During the year, the company paid Rs.23 less as fringe benefit tax and Rs. 64.600 Millions as Income Tax besides making a provision of Rs.11.500 Millions as deferred tax liability. 

 
EXPORTS: 
 
The Company's performance on exports front has also improved substantially during the year; it has achieved export turn over of Rs.2244.200 Millions as against Rs. 1863 Millions during 2005 06 an increase of 20%. During the year, the Company received duty free credit entitlement of Rs.1505.500 Millions under Target Plus Scheme for its export performance during 2005-06. 

 
The present market trend indicates good market for yarn, fabrics and readymade garments produced in India. The Textile demand in Western Countries met by European Countries is gradually shifting to Asia. The Company is getting the benefit and, as a result, exports are increasing. 

 
The Company has further attracted new customers of international repute during the year. The marketing team of the Company keeps close watch on the developments in the global textile market. The fabric design and development team brings out new products as per the customers' requirements. The Company Participates in the international trade fairs to get the feed-back of the changing fashion trends and quality expectations, The Company is also making sincere efforts to penetrate new markets of South America and Africa. 

 


EXPANSION, DIVERSIFICATION AND MODERNISATION:

The Company has invested Rs. 461.300 Millions in the fixed assets during 2006-07, and capital work in progress is at Rs. 438.700 Millions  as at 31.03.07. During the year, the Company has added 10,432 spindles and 16 Air Jet Looms to its spinning and capacity.

 
The Process House and Laboratory have been upgraded. The Company has taken up another expansion modernization and diversification plan with total capital outlay of Rs. 135,500 Millions. This will add now production capacities of 37690 ring spindles for PV and cotton yarns, 10800 spindles for worsted yarn spinning, 52 new Tsudakoma's Air Jet looms 10 Jacquard looms for upholstery fabric and 175000 pcs garments per month at SEZ Surat unit. Term loan requirement for this at 108400 Millions has been tied up with the Company's bankers under TUF scheme

 

JOINT VENTURE 

The JV Company, Careened Fabrics India Limited has set up a weaving unit at Banswara. The Company owns 50% interest in the Company This unit has commenced commercial production from July, 2006. JV Company is producing fabric for the Company on job work basis. This has generated additional business for the Company. 


Carreman Fabrics India Limited has also Installed continuous Scouring machine and gas based Stenter, imported from Europe, at Company's Process House.


POWER PLANT:

At present, the Company meets the power requirement through its Wartsila make furnace oil based power plants of 9.5 MW capacity. The balance requirement is met through Government supply through Ajmer Vidyut Vitran Nigam Limited. The furnace oil prices have increased substantially in the last couple of years, therefore, the Company has installed a coal based thermal power plant of 18 MW capacity is likely to start generation of power from June, 2007 and will meet 100% power requirements of the Company's plants at Banswara This will substantially reduce the power cost.

The Company will utilize the existing Furnace Oil based Power Plants as standby resource. 

FINANCE: 
The company has availed term loans of Rs.69175.600 Millions, during the year, from Banks and Financial Institutions, under TUF Scheme refund various expansion, diversification and modernization programmes. The Company's Bankers/ Financial Institutions have continued to provide need-based funds to meet the long term and short-term requirements of the company from time to time.

AS PER WEBSITE DETAILS

 

Profile
Subject is a vertically integrated textile mill having manufacturing facilities from Yarn, Fabrics to Readymade Garments.

The company was incorporated in the year 1976; it was promoted by Mr. R L Toshniwal, the current Chairman & Managing Director of the company, jointly with Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO) in Banswara, a backward district situated in the southern part of Rajasthan. Later on Mr. R. L. Toshniwal bought back the holding of RIICO. The company started its commercial production in the year 1978 with an initial spindle capacity of 12480 spindles.

The company has a track record of expanding, modernizing and diversifying its activities from time to time keeping in view the increasing demands, quality aspects, changing market requirements, etc.

The company embarked on cloth weaving activity in the year 1992 by setting up a state-of-art weaving plant to manufacture quality fabrics in the brand name of BANTEX mainly for export. The company is manufacturing fabrics supported by the well known international brand Lycra from Dupont.

BSL again diversified its activities into Cotton spinning and Readymade Garment manufacturing in the year 2004. For Readymade Garments, a separate unit was set up at Daman (U.T.) to manufacture trousers in the brand name of INTEGRATION.

In the year 2005, Banswara Textile Mills Ltd., an associate firm engaged in fabric finishing activity, was amalgamated with the company.

At present the company has an integrated production capacity of 91952 ring spindles and 576 air jet spindles, 143 looms, 5 stenters and 75,000 pieces readymade garments per month.

The company is a Government recognized Two Star Export House having IS/ISO 9001:2000 certification by the Bureau of Indian Standards.

BSL, backed by a fashion-savvy team with a motto of producing wide range of textile products with utmost quality consciousness, is exporting its products to more than 50 countries around the globe and has won several awards for its best export performance

Their Group :

Banswara Fabrics Limited :

Subject is situated at Banswara, is an associate firm of the company. It is doing job spinning work for the company and also engaged in fabric manufacturing and trading activity at Umergaon.

Carreman Fabrics India Limited :

Carreman Fabrics India Limited, set up by the Company in Joint Venture with Carreman Michel Thierry, France, a leading textile business house in Europe, with 50:50 capital contribution. Carreman Fabrics India Ltd. has a state-of-art weaving plant at Banswara having 60 Tsudakoma looms to produce quality fabrics to be exported to developed countries.

YARN
At Banswara, they understand that to produce high-quality finished fabrics, they must start by producing the best quality yarn. Throughout their history, they’ve focused on innovation. They understand the changing needs of the fashion industry and are constantly at the forefront of new developments to make dreams come true.


They specialize in producing blends of viscose staple fibre, polyester staple fibre, acrylic staple fibre, lycra, cotton, linen and wool. They have a total production capacity of 25000 tonnes of yarn per year.

 

20,000 tonnes are polyester blended dyed yarns and 5000 tonnes are 100% cotton combed and carded yarn.

 

Their aim is to make sure every customer is satisfied. To ensure the quality of their final product, all yarn is tested for irregularities and imperfections.

 

Testing for yarn irregularities: Uster testing UT-3 and Classimat testing.


Because without good yarn, you can’t weave good fabric.


They manufacture inter alia the following variety yarns:

A          100% Polyster

B          100% Viscose

C          100% Acrylic

D          Poly / Viscose

E          P / V Wool

F          P / V Lycra

G          P / V Linen

H          P / V High Twists

I           100% Combed and Carded Cotton Yarn

 

Count Range 8's - 60's NE. available in Fibre Dyed / Ecru.

THE RIGHT COLOUR:  At Banswara, they go to great lengths in search of the perfect shade. And once they have it, they ensure it stays that way. To achieve consistency throughout the batch, they offer fibre-dyeing. They also have facilities for yarn and fabric dyeing, to give you flexibility without compromising on the quality of colour.

Facilities: Ring spinning with Reiter auto-leveler draw frames and Autoconers with Uster-quantum clearers.

FABRICS
They create fabric that is based on the clothes people wear, and people wear clothes based on the fabric they create. Their team takes you through every step, from weaving to finishing.
The BANSWARA fabric team is the source for innovation with value. Inspired by Europe, made in India. Their collections have the creative edge. They produce solutions to career-wear clothing and smart casual look.


Their Specialties include:

» Stretch fabrics. THEY ARE “LYCRA ASSURED”
» Specialty finishes for touch (Stain, Wrinkle, Moisture Management, etc.)
» Critical match.
» Design innovations.
» Sampling and development support.

At present, they manufacture the following fabrics, for men and women.

Mono, Bistretch and Rigid fabrics in the following blends:

A          Polyester / Viscose

B          Worsted Spun Polyester/Wool

C          Polyester/Modal

D          Polyester/Viscose/Lycra

E          Polyester/Viscose/Cotton

F          100% Cotton specialties

G          100% Viscose

 

 

 

Quality Testing:

» Pilling and abrasion
» Colour fastness to washing and to light
» Dimensional Stability
» Seam Slippage
» Spray Rating- for Teflon fabrics
» Stretch/Recovery/Growth- for lycra fabrics

They also arrange for inspection of goods from Intertek Testing Services

Facilities:
•• Shuttleless weaving: Sulzer Airjet, Sulzer Projectile and Picanol Gama Rapier Looms

•• Finishing: Finishing capacity of upto 2 million metres per month, superfinish machine and KD Biella Decatiser

 

READYMADE GARMENTS

Banswara Garments is a new member of the Banswara Group. The factory is located in Daman, which is 200KM north of Mumbai and 600 KM south of Banswara. The garment unit is a specialized dress pant factory. It makes the offering of Banswara complete and vertical. Their team will take you right from the concept to the final product in the least possible lead-time.

Facilities:

The factory is equipped with a full complement of machines to be able to manufacture a trouser of the finest quality. They do all their marking and grading on a CAD system from Rich Peace. The sewing line primarily consists of Juki machines. There are automatic welting machines from Eagle. Curtain felling machines from Union Special, eyelet buttonhole machines from Reece and blind loop machines from Mair. The pressing is entirely from Rotondi, including leggers, toppers and side seam presses.

Capacities:

The total floor space of the factory is close to 40,000 square feet of built up area. The installed capacity is for about 2,000 units per day. The entire focus of the factory is on producing dress pants that are able to match the highest standards of workmanship, quality and appearance.

The Banswara group is considering further capacity expansion in this area in view of the quota free access to North American and European markets.

The capacity of the garment factory is backed by their fabric manufacturing and design capable of producing up to a million meters per month of dress pant fabric.

New Land Purchase»

The Company has purchased 17762 sq.mtr. of land in Banswara near to its existing unit BFL.  This land is proposed to be utilized for further expansions and additional utilities required for the existing production activities.

 

NSE LISTING»

National Stock Exchange of India Ltd. (NSE) has approved listing application of 12543861 equity shares of Rs. 10/- each of  the Company for listing on National Stock Exchange Limited. The NSE has admitted the shares for trading w.e.f. 11.04.2007.

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. 39.47

UK Pound

1

Rs. 80.09

Euro

1

Rs. 57.65

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

9

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

YES

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

64

 

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

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions