MIRA
INFORM REPORT
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Report Date : |
19.01.2007 |
IDENTIFICATION DETAILS
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Name : |
AREX
INDUSTRIES LIMITED |
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Registered Office : |
612,
G.I.D.C. Estate, TA Coal, Chatrai, Gandhinagar-382729, |
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Country : |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
10.05.1989 |
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Com. Reg. No.: |
04-12213 |
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CIN No.: [Company
Identification No.] |
U99999GJ1989PLC012213 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMA00596B |
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PAN No.: [Permanent
Account No.] |
AADCA0424C |
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Legal Form : |
A
Public Limited Liability Company. The Company’s shares are listed on Stock
Exchanges. |
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Line of Business : |
Manufacturing
of Woven and Printed Labels |
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
350000 |
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Status : |
Satisfactory |
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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 mediocre performance. Trade relations
are fair. Payments are reported as slow but correct. General financial
position is satisfactory. The
company can be considered for small to mediocre business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
612,
G.I.D.C. Estate, TA Coal, Chatrai, Gandhinagar-382729, |
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E-Mail : |
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Website : |
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City
Office : |
S/10,
Vikram Chambers, |
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Branches
: |
206,
Panchratna Apartment, 23/2, Manorama Ganj, B/h. Sanghi Show-Room, Near
Palasia Chowrah, Phone
/ Fax : 91-731- 249 2849 Tirupur 28,Kongu
Nagar, Phone
: 91-421-222 1294, 222 6803 / 6804 38/43,
10th 'A' Phone
: 91-80-2656 5553 Chennai 86,Hardevi
Chambers, Phone
: 91-44-2826 7935 Ahmedabad S/10,
Vikram Chambers, Near Sales Phone :
91-79- 2754 6231 / 2754 6804 Mumbai 1,Gopal
Bhuvan, Khed Gali (West), Phone
: 91-22- 2422 6855/ 2431 0499 |
DIRECTORS
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Name : |
Mr.
Dinesh A. Bilgi |
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Designation : |
Chairman
and Managing Director |
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Name : |
Mr.
Pragnesh K. Shah |
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Designation : |
Director |
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Name : |
Mr.
Laxman C. Tilani |
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Designation : |
Director |
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Name : |
Mr.
Vasant R. Shah |
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Designation : |
Director |
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Name : |
Mr.
Balkrishna I. Makwana |
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Designation : |
Director |
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Name : |
Mr.
Neel D. Bigi |
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Designation : |
Additional
Director and Executive Director |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing
of Woven and Printed Labels |
GENERAL INFORMATION
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No. of Employees : |
90 |
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Bankers : |
State
Bank of |
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Banking Relations : |
Satisfactory |
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Auditors : |
C.R.
Sharedalal & Company Chartered
Accountants, Ahmedabad |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity
Shares |
Rs.10/- each |
Rs.50.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
3958 |
Equity
Shares |
Rs.10/- each |
Rs.0.039 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 |
39.600 |
39.600 |
39.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
55.600 |
41.300 |
32.600 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
95.200 |
80.900 |
72.200 |
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LOAN FUNDS |
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1] Secured Loans |
109.600 |
73.200 |
49.500 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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TOTAL BORROWING |
109.600 |
73.200 |
49.500 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
204.800 |
154.100 |
121.700 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
180.200 |
130.900 |
131.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
0.100 |
0.100 |
0.100 |
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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 |
18.600
|
16.200 |
13.800 |
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Sundry Debtors |
32.100
|
30.400 |
20.900 |
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Cash & Bank Balances |
1.600
|
0.900 |
1.500 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
7.800
|
5.200 |
2.700 |
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Total Current Assets |
60.100
|
52.700 |
38.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
29.300
|
23.100 |
44.600 |
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Provisions |
6.300
|
6.500 |
4.200 |
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Total Current Liabilities |
35.600
|
29.600 |
48.800 |
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Net Current Assets |
24.500
|
23.100 |
(9.900) |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.500 |
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TOTAL |
204.800 |
154.100 |
121.700 |
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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 [including other income] |
126.900 |
107.900 |
84.800 |
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Profit/(Loss)
Before Tax |
26.600 |
20.200 |
13.500 |
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Provision
for Taxation |
8.100 |
7.400 |
4.900 |
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Profit/(Loss)
After Tax |
18.500 |
12.800 |
8.600 |
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Export
Value |
0.060 |
NA |
NA |
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Import
Value |
59.243 |
NA |
NA |
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Total
Expenditure |
100.300 |
87.700 |
71.300 |
KEY
RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Debt-Equity Ratio |
1.04 |
0.80 |
0.59 |
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Long Term Debt-Equity Ratio |
1.01 |
0.76 |
0.50 |
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Current Ratio |
1.61 |
1.08 |
1.15 |
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TURNOVER RATIOS |
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Fixed Assets |
0.44 |
0.44 |
0.41 |
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Inventory |
7.24 |
7.07 |
6.63 |
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Debtors |
4.03 |
4.13 |
4.12 |
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Interest Cover Ratio |
5.16 |
4.74 |
5.09 |
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Operating Profit Margin(%) |
43.05 |
44.91 |
40.24 |
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Profit Before Interest And Tax Margin(%) |
26.21 |
24.15 |
20.12 |
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Cash Profit Margin(%) |
31.53 |
32.83 |
30.42 |
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Adjusted Net Profit Margin(%) |
14.69 |
12.08 |
10.30 |
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Return On Capital Employed(%) |
18.39 |
18.60 |
13.75 |
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Return On Net Worth(%) |
21.01 |
16.72 |
11.13 |
QUARTERLY
/ SUMMARISED RESULTS
|
PARTICULARS |
|
30.06.2006 |
30.09.2006 |
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Sales Turnover |
|
2.93 |
3.70 |
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Other Income |
|
0.00 |
0.02 |
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Total Income |
|
2.93 |
3.72 |
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Total
Expenditure |
|
1.71 |
2.20 |
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Operating
Profit |
|
1.22 |
1.52 |
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Interest |
|
0.19 |
0.21 |
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Gross Profit |
|
1.03 |
1.31 |
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Depreciation |
|
0.64 |
0.70 |
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Tax |
|
0.19 |
0.10 |
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Reported PAT |
|
0.25 |
0.41 |
200606
Quarter 1
Notes
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs.0.131 million Consumption of Raw Materials Rs.6.219 million Staff Cost Rs.3.558 million Other Expenditure Rs.7.147 million Tax Includes Provision for Current Tax Rs.1.800 million Deferred Tax Rs(0.454)million Fringe Benefit Tax Rs.0.060 million EPS is Basic and 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 05 Complaints disposed off during the quarter 05 Complaints unresolved at the end of the quarter Nil 1. The above results were taken on record by the Board of Directors in their meeting held on July 31, 2006. 2. The Company does not have more than one reportable segment. Accordingly, segmental information is not required to be provided. 3. The above results is subject to a limited review by Audit of the Company.
200609
Quarter 2
Notes
Expenditure Includes (Increase) / Decrease in Stock in Trade Rs (0.184)million Consumption of Raw Materials Rs.8.922 million Staff Cost Rs.5.365 million Other Expenditure Rs.7.849 million Tax Includes Provision for Current Tax Rs.0.900 million Deferred Tax Rs.1.079 million Fringe Benefit Tax Rs.0.060 million EPS is Basic and 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 02 Complaints disposed off during the quarter 02 Complaints unresolved at the end of the quarter Nil 1. The above results were taken on record by the Board of Directors in their meeting held on October 31, 2006. 2. The Company does not have more than one reportable segment. Accordingly, segmental information is not required to be provided. 3. The above results is subject to a limited review by Audit of the Company.
STOCK PRICES
|
Face
Value |
Rs.10.00/- |
|
High |
Rs.16.70 |
|
Low |
Rs.16.70 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
The Company's performance continued to be satisfactory. The Company has secured
sales of Rs.12598.3 millions, i.e. an increased of 19% over the previous year's
sales of Rs.10602.8 millions. The Company has earned a profit of Rs.4770
millions as against profit of Rs.4220 millions earned during the previous year,
before depreciation and taxes. Their Directors are hopeful for better results
in the years to come.
Overview
Their Company is engaged in the manufacturing of woven and printed labels.
Labels are rightly said as the brand ambassadors of any products. The labels
are widely used in ready-made garments, hosieries, shoes, badges, terry towels
& leather garment products. The entire production of their Company is
currently being consumed by the garment manufacturers and exporters in
Industry Structure
The Indian Textile Industry occupies an important place in the economy of the
country because of its contribution to the industrial output, employment
generation and foreign exchange earnings. Since their Company is engaged in
supplying accessories to the textile industry, the Companies future seems to be
promising.
Website Details :
Subject was founded in
1989 by a young technocrat, Mr. Dinesh
Bilgi, based on his weaving expertise and knowledge.
What began with just 12
team members and four conventional shuttle looms; has metamorphosed into a US
$6.0 million company with a net worth of US $3.6 million within a decade,
patronized by its ever valued clients.
Today, subject is a 120
plus family of professionals and technocrats. Under the inspiring leadership of
Mr. Dinesh Bilgi in the capacity of Chief Executive, they cater to the
fluctuating demands of image-conscious brands around the world. Sales have
crossed US $2.25 million, and the demand curve is on a steady rise.
Subject believes
that branding is a buzzword to success for quality and perfection. Today,
Labels though small accessories, become a powerful marketing tool and also
design elements. It provides their product an image and personality,
establishing a marketing scheme and price. It is this label which mirrors their
brand and must retain its shape, size, texture and superiority. In short it
should enhance the reputation of their company and product.
With their
commitments to share their responsibility of brand building process and unique
range of services from concept to completion, centered around labels, customers
will definitely agree to get their labels, as eloquent symbols of quality
product, different from the crowd.
Subject
has mastered the art of translating their needs into weaving patterns.
Incorporating the ‘State-of-the-Art’ technology in the ultra modern
computerized plant, they maintain international standards of woven labels and
excellent workmanship with a proven track record of adhering to stringent
delivery schedules. In the process, earning the distinction of being
uncompromising when it comes to quality, response and customized solutions.
The Subject’s
team of hardcore professionals, with decades of fruitful experience, is hence,
committed to excellence, which is rightly reflected in the ever enhancing list
of satisfied customers, who are leaders in their respective fields.
Subject provides 414 million Woven Labels annually, in response to vastly diverse client requirements. These labels can be Satin or Taffeta quality in White or Black warp-base, upto a width of 500 MM and 12 Colours.
Coloured
Warp-base is also available for customized assignments.
These
labels feature Ultrasonic Cutting along normal hot-slitted edges from broad
looms, and soft edges from Needle looms.
These
labels are provided in a vast range of finishes :
Ř End Fold
Ř Center Fold
Ř Miter Fold
Ř
Ř Starched
Ř Specially Coated
Ř Self Adhesive
Ř Thermo Adhesive
Ř Laser Cut
Ř Die Cut
Ř Filled In
Ř Comfort Soft
To all their
valued customers they provide swift responses, a highly personalized and
efficient service through a network of Customer Service Centers, spanning all
major garment producing centers of
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 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.44.34 |
|
|
1 |
Rs.87.61 |
|
Euro |
1 |
Rs.57.61 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
4 |
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FINANCIAL CONDITION |
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|
|
--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
4 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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 |
|
--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 |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
42 |
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 |
|