MIRA
INFORM REPORT
|
Report Date : |
03.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
MADURA COATS PRIVATE LIMITED |
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Formerly Known As : |
COATES VIYELLA INDIA LIMITED |
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Registered Office : |
New |
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Country : |
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Financials (as on) : |
31.12.2002 |
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Date of Incorporation : |
29.03.1973 |
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Com. Reg. No.: |
006677 |
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CIN No.: [Company
Identification No.] |
U18102TN1974PTC006677 |
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Legal Form : |
Private Limited Liability Company |
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Line of Business : |
Manufacturing, selling and exporting of yarn industrial
fabrics, cloth, cotton hank and handicraft thread, cotton and synthetic thread
dyesprings, non-woven and other textile articles. |
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 16000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject
is an old established company having satisfactory track records. Directors
are experienced, respectable and highly qualified professionals. Their trade
relations are fair. General financial position is satisfactory. Payments
are usually correct and as per commitments. Your
proposed business dealings of US $ 128000 can be considered against D/A or
D/P terms. It can be suggested for
maximum credit of US $ 300000 against
D/A or D/P terms. |
LOCATIONS
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Registered Office : |
New |
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Tel. No.: |
91-452-2602751 |
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Fax No.: |
91-452-2603130 / 2602739 |
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E-Mail: |
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Group
head office : |
144, |
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Tel. No.: |
91-80-558 4121 |
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Fax No.: |
91-80-558 4229 / 559 4598 |
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Factory : |
Ø
New Tel. No. :
91-452-602751 Fax No. :
91-452-603130 / 602739 Ø
Coats Ø
Centenary Mill, no. 8, New ambasamudram
Ø
Water Mill, Papavinasam Mills,
Ambasamudram - 627 422, Tamilnadu Ø
Madura Textiles, Papavinasam Mills,
Ambasamudram - 627 422, Tamilnadu Ø
Export
Oriented Unit : 10-A, Ø
Interlining
Manufacturing facility : Mela-Ambasamudram, Tirunelveli
- 627 401, Tamilnadu tuticorin
Ø
83 & 88, panoli
Ø
21/222, GIDC Industrial Estate,
Ankleshwar, Panoli - 394 116, District Bharuch, serampore
Serampore (Hooghly), |
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Sales Offices : |
q
216, q
q
·
46-D, q
Sanghavi Sadan, Off. q
203, Samudra Gaurav (II Floor), 6-A, Worli
Sea Face, Abdul Gaffarkhan Road, Worli, Mumbai – 400 025 q
Green View, 3rd Floor, P.
B. No.2725, 3rd Floor, 19, Circus Avenue, Kolkata – 700 017, West
Bengal, India q
19-A, q
No. 2, Gurucharan Roychowdhury, q
B-II/35, Mohan Co-operative
Industrial Estate, q
E-1, q
A8-Sectro 6, Gautam Budh Nagar, Noida
– 201 301, q
q
q
GF 32/33, Meghdoot, q
10, Karthapura, 22, Godown Industrial
Area, Jaipur – 301 206, q
13/6-7, Civil Lines, P. B. No, 112,
Pormat, q
Guru Govind Singh Nagar, Sisbro Complex,
Sherpur Chowk (Hero Chowk), Behind Saini Motors, G T Road, q
37A, q
Plot No. 19, S. No. 206/3, P. B. No. 8, Viman Nagar, Nagar Road,
Pune – 41 014, Maharashtra, India q
No. 66/67, q
MBN Reddy Estate, Survey No. 133,
Plassy Lane Bowenpally, Secunderabad - 500 011, Andhra Pradesh |
DIRECTORS
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Name : |
Mr. M. C. Flower |
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Designation : |
Chairman |
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Name : |
Mr. J. S. Remedios |
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Designation : |
Managing Director |
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Qualification : |
B.Com. (Hons)., PGDBM |
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Date of Appointment : |
01.06.1972 |
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Name : |
Mr. R. Bevan |
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Designation : |
Whole Time Director |
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Name : |
Mr. M. Subramanian |
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Designation : |
Whole Time Director |
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Name : |
Mr. J. D. Lea |
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Designation : |
Director |
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Name : |
Mr. B. G. Anderson |
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Designation : |
Director |
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Name : |
Dr. M. S. M. Ramaswamy |
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Designation : |
Director |
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Name : |
Mr. S. N. Talwar |
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Designation : |
Director |
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Name : |
Mr. P. K. Kurian |
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Designation : |
Director |
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Name : |
Mr. N. Ramamurthi |
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Designation : |
Director (Representing LIC of |
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Name : |
Mr. Y. D. Patil |
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Designation : |
Director (Nominee of GIC and its Subsidiaries) |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing, selling and exporting of yarn industrial fabrics,
cloth, cotton hank and handicraft thread, cotton and synthetic thread
dyesprings, non-woven and other textile articles. |
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Products : |
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PRODUCTION STATUS
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Yarn |
‘000
Kgs |
-- |
1008 |
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Industrial Fabrics |
‘000
Kgs |
-- |
9524 |
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Cloth |
‘000
Mts. |
-- |
34369 |
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Cotton hank and handicraft thread |
‘000
Kgs |
-- |
392 |
|
Cotton and synthetic thread |
Million
Mts. |
-- |
326825 |
|
Other textile articles (manufactured by outside
converters) |
Nos. |
-- |
224771 |
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Ring Spindles |
Nos. |
220,226 |
-- |
|
Looms |
Nos. |
1,110 |
-- |
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Non Wovens |
Tonnes |
350 |
-- |
GENERAL INFORMATION
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No. of Employees : |
10181 |
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Bankers : |
·
Hong Kong & Shanghai Banking Corporation,
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Facilities : |
-- |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Deloitte, Haskins & Sells Chartered Accountants |
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Address : |
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Parent Company : |
Coats Viyella Plc. |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
100,000,000 |
Equity Shares |
Rs.
10/- each |
Rs.
1000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
72,184,003 |
Equity Shares |
Rs.
10/- each |
Rs.
721.840 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2002 |
31.12.2001 |
31.12.2000 |
|
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SHAREHOLDERS FUNDS |
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|
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1] Share Capital |
588.600 |
588.600 |
721.840 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
3650.900 |
3878.100 |
4759.949 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4239.500 |
4466.700 |
5481.789 |
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LOAN FUNDS |
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1] Secured Loans |
2.500 |
38.400 |
121.023 |
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2] Unsecured Loans |
18.400 |
0.700 |
0.796 |
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TOTAL BORROWING |
20.900 |
39.100 |
121.819 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
4260.400 |
4505.800 |
5603.608 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1752.200 |
2015.200 |
2267.540 |
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Capital work-in-progress |
59.800 |
40.900 |
73.766 |
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INVESTMENT |
1359.800 |
1359.000 |
1359.005 |
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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 |
986.300 |
1333.700 |
1497.709 |
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Sundry Debtors |
1097.900 |
1151.300 |
1461.886 |
|
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Cash & Bank Balances |
971.100 |
449.300 |
680.054 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
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Loans & Advances |
435.400 |
410.600 |
433.926 |
|
Total
Current Assets |
3490.700
|
3344.900 |
4073.575 |
|
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
|
|
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Current Liabilities |
2331.800 |
2180.100 |
2012.665 |
|
|
Provisions |
70.300 |
74.100 |
157.613 |
|
Total
Current Liabilities |
2402.100
|
2254.200 |
2170.278 |
|
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Net Current Assets |
1088.600 |
1090.700 |
1903.297 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4260.400 |
4505.800 |
5603.608 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2002 |
31.12.2001 |
31.12.2000 |
|
|
Sales Turnover |
7482.900 |
7888.100 |
8482.386 |
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|
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|
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Profit/(Loss) Before Tax |
(27.300) |
(575.900) |
(127.727) |
|
|
Provision for Taxation |
130.100 |
30.100 |
0.065 |
|
|
Profit/(Loss) After Tax |
(157.400) |
(606.000) |
(127.792) |
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|
|
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Earnings in Foreign Currency : |
|
|
|
|
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Export Earnings |
NA |
NA |
1958.299 |
|
|
Other Earnings (and
commission) |
NA |
NA |
6.200 |
|
Total Earnings |
NA |
NA |
1964.499 |
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|
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Imports : |
|
|
|
|
|
|
Raw Materials |
NA |
NA |
1404.385 |
|
|
Stores & Spares |
NA |
NA |
51.838 |
|
|
Capital Goods |
NA |
NA |
67.545 |
|
|
Others |
NA |
NA |
32.444 |
|
Total Imports |
NA |
NA |
1556.212 |
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|
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Expenditures : |
|
|
|
|
|
|
Raw Materials Consumed
|
2404.800 |
2885.300 |
3061.586 |
|
|
Purchase for resale
|
617.300 |
675.900 |
279.050 |
|
|
Excise Duty
|
702.700 |
687.100 |
832.341 |
|
|
Power and Fuel
|
739.000 |
779.200 |
0.000 |
|
|
Employee Cost
|
1182.900 |
1260.300 |
0.000 |
|
|
Selling and Administration
|
1147.7000 |
1083.900 |
0.000 |
|
|
Sales Tax
|
0.000 |
0.000 |
241.486 |
|
|
Depreciation
|
216.200 |
274.200 |
320.693 |
|
|
Other Expenses
|
458.600 |
759.200 |
3912.778 |
|
|
Interest (Net)
|
41.000 |
58.900 |
(32.199) |
|
|
(Increase)/Decrease in Finished and Processed
Stocks
|
0.000 |
0.000 |
(5.622) |
|
Total Expenditure |
7510.200 |
8464.000 |
8610.113 |
|
KEY RATIOS
|
PARTICULARS |
31.12.2002 |
31.12.2001 |
31.12.2000 |
|
Debt Equity Ratio |
0.01 |
0.02 |
0.04 |
|
Long Term Debt Equity Ratio |
0.01 |
0.02 |
0.04 |
|
Current Ratio |
1.46 |
1.68 |
1.84 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
1.47 |
1.18 |
1.25 |
|
Inventory |
6.54 |
5.49 |
4.89 |
|
Debtors |
6.75 |
5.95 |
5.83 |
|
Interest Cover Ratio |
1.38 |
(5.25) |
4.31 |
|
Operating Profit Margin (%) |
3.59 |
(0.45) |
8.25 |
|
Profit Before Interest and Tax Margin (%) |
0.74 |
(3.98) |
4.61 |
|
Cash Profit Margin (%) |
1.34 |
(1.74) |
7.18 |
|
Adjusted Net Profit Margin (%) |
(1.51) |
(5.26) |
3.54 |
|
Return on Capital Employed (%) |
1.51 |
(7.09) |
9.20 |
|
Return on Net Worth (%) |
(3.10) |
(9.56) |
7.31 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was incorporated on
Coats Viyella India (CVIL) got its present name with effect
from
CVIL came out with a rights issue aggregating Rs. 240.70
millions, in July 1994, to part finance the modernisation and upgradation of
existing production facilities, the expansion of production capacities by
installing additional machinery, etc, at a project cost of Rs. 314.60 millions.
CVIL is in the area of textile which includes the conversion
of natural and synthetic fibres into year and threads, and the designing of
fabrics its major products are yarn, threads, consumer fabrics and industrial
textiles its garments division markets famous brands such as Allen Solly, Louis
Philippe and Van Heusen. These brands have carved a niche for themselves in the
premium category.
The company changed its name back to Madura Coats Limited
from Coats Viyella India Limited in June’98 following the proposed demerger of
Coats Viyella Plc. The name “Madura
Coats” has earned considerable trade, industry, employee and shareholder
goodwill over the years and enjoys strong brand equity in the company’s
garments, fabric and industrial textile business among customers in
In June 1998, the company changed its name back to Madura
Coats from Coats Viyella
The company has sold its Madura Garments Division to Indian
Rayon Industries Limited for Rs. 1892.30 millions as an ongoing business.
Coats
Its' core strengths of branding, distribution and a less
concentrated manufacturing / sourcing based facilitated a positive recovery.
Ø
Local market sales at Rs. 4110 millions
were 12% up on 1999
Ø
Export sales at Rs. 850 millions were
twice 1999 levels, supported largely by increased off take of grey thread by
Coats Viyella units worldwide.
The
company’s fixed assets of important value include land (freehold and
leasehold), buildings, railway sidings, machinery, furniture and fittings,
vehicles.
Subject employs around 10181 persons in its’ set up.
Press
clippings
Madura
Coats offer gets FIPB approval
MUMBAI, Sept. 24
THE Foreign Investment Promotion
Board has approved the open offer of J&P Coats Ltd and Coats plc to acquire
36.8 per cent share capital of Madura Coats Ltd for Rs 40 per share.
The open offer will open on
September 25 and close on October 24, a news release said. The offer price of
Rs 40 per share is based on a 33-month high price since the announcement.
DSP Merrill Lynch Ltd, advisors to the offer, had earlier
informed the BSE that J&P Coats along with Coats plc would make an open
offer to buy 21,669,392 fully paid equity shares of Rs 10 each at Rs 40 per
share.
JPC holds 37,188,070 equity shares or 63.2 per cent in MCL.
MCL had conducted an open offer under SEBI (Buyback of Securities) Regulations,
1998 in October 2001. The offer which was made through the tender offer route
at Rs 27 per share led to an increase in JPC's shareholding in Madura Coats to
63.2 per cent from 51.5 per cent.
According to the DSP
announcement if the September 2002 offer leads to a fall in public shareholding
to 10 per cent or below of MCL's voting capital, JPC will make a second offer
to buy out the remaining outstanding shares held by the public.
The second offer will be made
within three months from closure of the offer at the same offer price.
The second offer is to remain
open for six months.
On achieving 90 per cent stake
in Madura Coats through this open offer, the shares of MCL will be delisted
from the stock exchanges, the release said.
Subject was born in 1974 as a result of
the merger of Madura Mills, J & P Coats and A & F Harvey -
organisations which had been in existence for 20 to 90 years. The company has
the unique distinction of being the only professionally managed multinational
company in the textile industry.
MCL introduced the Management Trainee Scheme as early as
the 60's . In the 70's, the company came to be known for embracing modern
management concepts such as Management by Objectives and Performance Appraisal
Systems. During the 80's, the company adopted the profit centre structure to
facilitate focus and organic growth . The 90's were characterised by
diversification into the ready made garments business and expansion of the
thread business in
MCL operates through its two divisions - Coats India and
Global Thread Supply India.
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.40.66 |
|
|
1 |
Rs.81.70 |
|
Euro |
1 |
Rs.55.05 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
|