MIRA
INFORM REPORT
|
Report Date : |
16.02.2007 |
IDENTIFICATION
DETAILS
|
Name : |
LAHOTI
OVERSEAS LIMITED |
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Registered Office : |
307,
Arun Chambers, Tardeo Road, Mumbai-400034, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
24.04.1995 |
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Com. Reg. No.: |
11-87643 |
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CIN No.: [Company
Identification No.] |
L7499MH1995PLC087643 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUML04856F |
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PAN No.: [Permanent
Account No.] |
AAACL2578H |
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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 : |
Exporters
of Yarns and Knitted Fabrics |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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
but 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. Profit margin is under severe pressure. Payments are reported as slow
but correct. The
company can be considered normal for business dealings at usual trade terms
and conditions with slight caution. |
LOCATIONS
|
Registered Office : |
307,
Arun Chambers, Tardeo Road, Mumbai-400034, Maharashtra, India |
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Tel. No.: |
91-22-23516389/
90/ 56602167/ 68 |
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Fax No.: |
91-22-223511930 |
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E-Mail : |
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Website : |
DIRECTORS
|
Name : |
Mrs.
Rukmini R. Lahoti |
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Designation : |
Chairman |
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Name : |
Mr.
Umesh R. Lahoti |
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Designation : |
Managing
Director |
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Name : |
Mr.
Pradeep R. Lahoti |
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Designation : |
Director |
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Name : |
Mr.
Arun Godbole |
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Designation : |
Director |
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Name : |
Mr.
Prakash R. Bang |
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Designation : |
Director |
KEY EXECUTIVES
|
Name
: |
Mr.
Ujwal Lahoti |
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Designation
: |
Executive
Director (Marketing) |
BUSINESS DETAILS
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Line of Business : |
Exporters
of Yarns and Knitted Fabrics |
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Products : |
Yarns - cotton, open end, blended, melange, synthetic, bamboo, fabrics - grey and finished woven and knitted fabrics |
GENERAL
INFORMATION
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No. of Employees : |
600 |
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Bankers : |
v
Punjab
National Bank v
Citi
Bank N.A. v
HSBC
Bank Limited v
State
Bank of India v
DBS
Bank Limited |
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Facilities : |
Secured Loans (Rs. In Millions) :
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Banking Relations : |
Satisfactory |
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Auditors : |
P. C.
Ghadiali & Company Chartered
Accountants Mumbai |
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Associates/Subsidiaries : |
Subsidiaries : v
Butterfly
Securities Limited v
G.
Varadan Limited Associates : v
PS
ware Information Private Limited v
Sri
Laxmi Exports v
Kirti
Stock Brokers Private Limited v
Bauble
Investment Private Limited |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
6000000 |
Equity
Shares |
Rs.10/- each |
Rs.60.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
25132500 |
Equity
Shares |
Rs.2/- each |
Rs.50.265 millions |
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Less :
Calls in Arrears |
|
Rs.(0.315) millions |
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Total |
|
Rs.49.950
millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
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 |
49.950 |
49.883 |
49.700 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
327.265 |
316.953 |
308.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
377.215 |
366.836 |
358.300 |
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LOAN FUNDS |
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1] Secured Loans |
85.412 |
85.889 |
109.200 |
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2] Unsecured Loans |
0.000 |
2.475 |
0.000 |
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TOTAL BORROWING |
85.412 |
88.364 |
109.200 |
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DEFERRED TAX LIABILITIES |
24.729 |
19.923 |
0.000 |
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TOTAL |
487.356 |
475.123 |
467.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
127.379 |
143.143 |
93.700 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
29.969 |
39.872 |
71.000 |
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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 |
24.222
|
18.531 |
36.200 |
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Sundry Debtors |
246.761
|
269.767 |
269.200 |
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Cash & Bank Balances |
24.159
|
17.104 |
8.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
87.420
|
59.063 |
65.200 |
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Total Current Assets |
382.562
|
364.465 |
379.100 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
29.683
|
58.001 |
54.300 |
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Provisions |
22.871
|
14.611 |
22.600 |
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Total Current Liabilities |
52.554
|
72.612 |
76.900 |
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Net Current Assets |
330.008
|
291.853 |
302.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.255 |
0.600 |
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TOTAL |
487.356 |
475.123 |
467.500 |
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PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1685.082 |
1491.804 |
1826.900 |
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Profit/(Loss)
Before Tax |
23.673 |
35.071 |
39.000 |
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Provision
for Taxation |
16.184 |
24.433 |
9.000 |
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Profit/(Loss)
After Tax |
7.489 |
10.638 |
30.000 |
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Total
Expenditure |
1661.409 |
1456.733 |
1787.900 |
QUARTERLY
RESULTS
|
PARTICULARS |
|
30.06.2006 (1st Qtr.) |
31.09.2006 (2nd Qtr.) |
|
Sales Turnover |
|
355.900 |
439.700 |
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Other Income |
|
1.800 |
0.300 |
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Total Income |
|
357.700 |
440.000 |
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Total
Expenditure |
|
340.600 |
420.700 |
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Operating
Profit |
|
17.100 |
19.300 |
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Interest |
|
3.200 |
4.700 |
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Gross Profit |
|
13.900 |
14.600 |
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Depreciation |
|
4.000 |
4.100 |
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Tax |
|
0.000 |
2.000 |
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Reported PAT |
|
9.900 |
8.500 |
200606 Quarter 1
Notes
EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended June 30, 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 Main business
activity of the company is export in cotton yarn and to act as an export house
for these activity. There is no separate material segment (except non material
revenues generated from power division) as per the accounting standards on
segment reporting (AS-17) issued by the Institute Of chartered Accountants of
India (ICAI) . 2. The results for the quarter ended June 30, 2006 have been
subjected to a limited review by the Statutory Auditors of the Company in
compliance with the requirement of listing agreement with Stock Exchanges. 3.
The above results were approved and taken on record by Board & Audit
Committee in their meeting held on July 28, 2006. 4.The provision for deferred
tax as per AS 22 would be provided at the time of finalization of accounts.
200609 Quarter 2
Notes:
EPS is Basic &
Diluted Status of Investor Complaints for the quarter ended September 30, 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 Main business of the
company is export in cotton yarn and to act as an export house for these
activity. There is no separate material segment (except non material revenues
generated from power division) as per the accounting standards on segment
reporting (AS-17) issued by the ICAI. 2. The results for the quarter ended
September 30, 2006 have been subjected to a limited review by the Statutory
Auditors of the Company in compliance with the requirement of listing agreement
with Stock Exchanges. 3. The above results were approved and taken on record by
Board in their meeting held on October 30, 2006. 4. The provision for deferred
tax as per AS 22 would be provided at the time of finalization of accounts.
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt-Equity Ratio |
0.23 |
0.27 |
0.20 |
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Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
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Current Ratio |
2.17 |
2.03 |
2.42 |
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TURNOVER RATIOS |
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|
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Fixed Assets |
9.60 |
10.07 |
16.58 |
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Inventory |
76.39 |
50.94 |
48.64 |
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Debtors |
6.31 |
5.17 |
6.93 |
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Interest Cover Ratio |
2.71 |
3.61 |
3.95 |
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Operating Profit Margin(%) |
3.44 |
4.25 |
3.65 |
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Profit Before Interest And Tax Margin(%) |
2.31 |
3.47 |
3.03 |
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Cash Profit Margin(%) |
2.13 |
2.53 |
2.36 |
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Adjusted Net Profit Margin(%) |
0.99 |
1.75 |
1.74 |
|
Return On Capital Employed(%) |
8.19 |
10.50 |
12.51 |
|
Return On Net Worth(%) |
4.35 |
6.73 |
8.60 |
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.7.65/- |
|
Low |
Rs.7.00/- |
LOCAL AGENCY
FURTHER INFORMATION
Company’s
fixed assets include land, office premises, motor car, furniture and fixtures,
guest house, office equipments, air conditioners and computers.
OPERATION:
The Company has
achieved Sales Turnover of Rs. 1679.501 millions for the year ended 31.01.2006
which is higher by 12.62% as compared to the previous year. Profit before tax
of the company has decreased by 32.50% compared to the previous year. It is to
be noticed that the company has installed Wind Power Mill in the State of
Tamilnadu in March 2005 and charged proportionate depreciation for F.Y. 2005-
2006 based on written down value method of depreciation. However, during the
year, Company has charged full depreciation on such Wind Power Machinery, which
increased the deprecation amount from 10.832 millions to Rs.18.514 millions..
The Directors are hopeful of achieving better results in the coming year.
EXPORTS:
The year 2005-2006 is
a year of mixed performance for the Cotton Textile Industry from India. Removal
of Quota system has resulted in net gain to the exports of cotton textile
products from India. However, the growth pattern is mixed in various segments.
However, the future looks
very bright for the Textile Industry and Cotton Textile Industry in particular.
The huge opportunities have been opened up to India now and the. country is all
set to export the same. The Company has drawn ambitious expansion plans and has
planned to put up a Knitting, Processing & Garment Project. The overall
scenario of textile industry from India is very encouraging due to availability
of cheap raw material and labour and the Directors are confident of achieving
better performance in the coming years.
Subject was incorporated on 24.04.1995 as a private limited company and was converted into a public limited company on 26.04.1995. The company was promoted by Umesh Lahoti to take over the business of the erstwhile partnership firm Lahoti Exports (a merchant exporter). Lahoti Exports was set up in 1990 to export cotton yarn. The erstwhile partnership firm was exporting cotton yarn to the far-east and middle-east countries like Hon Kong, South Korea, Sri Lanka, UAE, etc.
In Apr.1996, the company came out with a public issue of 2.000 millions equity
shares of Rs.10 each for cash at a premium of Rs.15 per share aggregating
Rs.50.000 millions, to part-finance the acquisition of Lahoti Exports.
Company has bagged the prestigious Award given by TEXPROCIL (The Cotton Textile
Export Promotion Council of Govt. of India.) of Gold Trophy for outstanding
Export performance in Yarn & Silver Trophy for outstanding export
performance in yarn amongst non-quota export for the year 1998-99.
Company is having its subsidiary company – Gold state Far East Limited, Hong
Kong. Company has invested an amount of HK$ 3877240 towards the share capital.
Website Details :
Subject was incorporated in 1991 and is registered on the Bombay Stock
Exchange.
The company began with exports of yarns and then diversified with exports of
woven and knitted fabrics.
Subject is one of the largest exporters of cotton yarn from India from last 10
years. The Company has received numerous awards from TEXPROCIL, State
Government and FIEO.
Subject’s reliability reflects itself in its exports to countries across the
seven continents. Growing demands from the existing customers speak volumes
about subject’s credibility.
Subject has always seen the opportunities and grabbed them successfully. Hard
work and the vision are the key factors for their success.
Subject was established in 1990 with a single objective: to specialize
in the export of quality Cotton Yarns from India's leading spinning mills.
Starting with OE yarns, Subject's range today covers a wide variety of Cotton
Yarns including carded and combed ring spun yams of coarse & fine counts,
ply yarns, special yarns and grey fabrics. Subject’s reliability reflects
itself in its exports to countries across the seven continents. Growing demands
from the existing customers speak volumes about subject’s credibility.
The Company is professionally managed by Ujwal Lahoti and Umesh Lahoti
under the able guidance of an industrious and professional Board of Directors.
With a sound footing in the global market for Indian Cotton Yarns,
subject is set to spin faster, in time.
Awards :
They never worked for awards. But when they come in, it surely motivates
them to strive still harder. They commit themselves to complete satisfaction of
all their customers, suppliers and business associates.
From TEXPROCIL:
|
2004-05 |
Merchant Exports |
Bronze |
|
2003-04 |
Merchant Exports |
Silver |
|
2002-03 |
Merchant Exports |
Gold |
|
2000-01 |
Non-quota Exports |
Silver |
|
1999-00 |
Non-quota Exports |
Bronze |
|
1998-99 |
Non-quota Exports |
Silver |
|
1997-98 |
Merchant Exports |
Gold |
|
1997-98 |
Non-quota Exports |
Silver |
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1996-97 |
Merchant Exports |
Bronze |
|
1995 – 96 |
Non-quota Exports |
Gold |
From FIEO:
|
2003-04 |
Niryatshree |
Silver |
From GOVERNMENT OF MAHARASHTRA:
The Silver Plaque Awards, consistently for 2 years in 1995-96 and
1996-97, bestowed for the highest performance in Maharashtra State for exports
under the Merchant Exporters category.
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.44.20 |
|
UK
Pound |
1 |
Rs.86.28 |
|
Euro |
1 |
Rs.58.22 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
37 |
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 |
|