MIRA INFORM
REPORT
|
Report
Date : |
03.07.2007 |
IDENTIFICATION DETAILS
|
Name : |
ABHISHEK INDUSTRIES LIMITED |
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Registered
Office : |
Trident Complex, |
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Country
: |
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Financials
(as on) : |
31.03.2006 |
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Date
of Incorporation : |
18.04.1990 |
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Com.
Reg. No.: |
16-10307 |
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CIN
No.: [Company
Identification No.] |
L99999PB1990PLC010307 |
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TAN
No.: [Tax
Deduction & Collection Account No.] |
JLDA00951G / JLDA01343G |
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PAN
No.: [Permanent
Account No.] |
AABCA4139J |
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Legal
Form : |
Public Limited Company The company’s shares are listed on the Stock Exchanges. |
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Line
of Business : |
Manufacturer of Terry Towels, Cotton Yarn and Paper. |
RATING & COMMENTS
|
MIRA’s
Rating : |
Ba |
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
14000000 |
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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 average
performance and financial status. Directors are reported as experienced,
respectable and having satisfactory means of their own. Their trade relations
are fair. Payments are reported as slow but correct. The company can be considered normal for business dealings
at usual trade terms and conditions. |
LOCATIONS
|
Registered
Office : |
Trident Complex, |
|
Tel.
No.: |
91-1679-244700/244701 /161-5039999 |
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Fax
No.: |
91-1679-244708 / 161-5039900 |
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E-Mail
: |
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Website
: |
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Corporate
Office : |
E-212, Kitchlu Nagar, |
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Tel.
No.: |
91-161-5039999/5038888 |
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Fax
No.: |
91-161-5039900/5038800 |
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E-Mail
: |
DIRECTORS
|
Name : |
Mr. Rajinder Gupta |
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Designation
: |
Managing Director |
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Name : |
Mr. S. K. Tuleja |
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Designation
: |
Chairman |
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Name : |
Ms. Pallavi Shroff |
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Designation
: |
Director |
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Name : |
Mr. Chandra Mohan |
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Designation
: |
Director [up to 27.10.2005] |
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Name : |
Ms. Ramni Nirula |
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Designation
: |
Director |
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Name : |
Mr. Rajiv Dewan |
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Designation
: |
Director |
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Name : |
Ms. Ravneet Kaur |
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Designation
: |
Director |
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Name : |
Mr. Ajay Retan |
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Designation
: |
Director |
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Name : |
Mr. L. N. Vaz |
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Designation
: |
Director |
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Name : |
Mr. S. C. Bhatia |
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Designation
: |
Director |
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Name : |
Mr. Viswajeet Khanna |
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Designation
: |
Chairman [Up to 21.07.2005] |
KEY EXECUTIVES
|
Name : |
Mr. Pawan Jain |
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Designation
: |
Company Sectary |
MAJOR SHAREHOLDERS
AS ON 31.03.2006
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
PROMOTERS HOLDING |
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Promoters |
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Indian
Promoters |
119463893 |
61.52 |
|
Foreign Promoters |
-- |
-- |
|
Persons acting in concert |
3879480 |
2.00 |
|
Sub Total |
123343373 |
63.52 |
|
Non Promoter’s Holding |
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|
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Institutional Investors |
|
|
|
Mutual
Funds and UTI |
44223 |
0.02 |
|
Banks,
Financial Institutions, Insurance Companies |
1758901 |
0.91 |
|
FIIs |
22631934 |
11.65 |
|
Sub Total |
24435058 |
12.58 |
|
Others |
|
|
|
Private
Corporate Bodies |
5808951 |
2.99 |
|
Indian
Public |
37766172 |
19.45 |
|
NRIs/OCBs |
2539594 |
1.31 |
|
Any Other |
|
|
|
Shares in
Transit |
301527 |
0.15 |
|
Sub Total |
46416244 |
23.90 |
|
GRAND TOTAL |
194194675 |
100.00 |
BUSINESS DETAILS
|
Line
of Business : |
Manufacturer of Terry Towels, Cotton Yarn and Paper |
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Products
: |
v Sulphuric Acid |
PRODUCTION STATUS
|
Particulars |
Unit |
|
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Actual Production |
|
Cotton
Yarn |
MT |
|
|
24866 |
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Processed
Yarn |
MT |
|
|
7368 |
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Towel |
MT |
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|
11367 |
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Paper |
MT |
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|
49285 |
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Sulphuric
Acid |
MT |
|
|
111311 |
GENERAL INFORMATION
|
No. of
Employees : |
1500 |
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Bankers
: |
v State Bank of v ICICI Bank Limited v Canara Bank v State Bank of v Punjab National Bank v Industrial Development Bank of
India Limited |
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Facilities : |
-- |
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Banking Relations : |
Satisfactory |
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Auditors
: |
Deloitte Haskins and Sells Chartered Accountants One Okhla Institutional Area, |
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Associates/Subsidiaries
: |
v Abhishek Industries Inc., v Abhishek Industries SA, |
CAPITAL STRUCTURE
Authorised
Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
500,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 5000.000 millions |
|
100,000,000 |
Preference Shares |
Rs. 10/- each |
Rs. 1000.000 millions |
|
|
TOTAL |
|
Rs. 6000.000 millions |
Issued,
Subscribed & Paid-up Capital :
|
No. of
Shares |
Type |
Value |
Amount |
|
194,194,675 |
Equity Shares |
Rs. 10/- each |
Rs. 1941.947 millions |
FINANCIAL
DATA
[all
figures are in Rupees Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.12.2003 |
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|
SHAREHOLDERS
FUNDS |
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|
|
|
|
1] Share
Capital |
1941.900 |
1942.000 |
1942.000 |
|
|
2] Share
Application Money |
0.000 |
0.000 |
0.000 |
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|
3]
Reserves & Surplus |
1577.200 |
1230.300 |
804.300 |
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|
4]
(Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
NETWORTH
|
3519.100 |
3172.300 |
2746.300 |
|
|
LOAN
FUNDS |
|
|
|
|
|
1]
Secured Loans |
6879.300 |
4650.700 |
1930.300 |
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|
2]
Unsecured Loans |
15.700 |
13.200 |
10.400 |
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TOTAL
BORROWING
|
6895.000 |
4663.900 |
1940.700 |
|
|
DEFERRED
TAX LIABILITIES |
563.200 |
535.700 |
377.300 |
|
Equity Warrant
|
66.000 |
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|
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|
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TOTAL
|
11043.300 |
8371.900 |
5064.300 |
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APPLICATION OF FUNDS
|
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FIXED ASSETS [Net Block]
|
6467.100 |
5186.700 |
2427.400 |
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Capital work-in-progress
|
1209.300 |
483.900 |
515.400 |
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|
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INVESTMENT
|
503.900 |
256.700 |
87.500 |
|
DEFERREX TAX ASSETS
|
0.000 |
0.000 |
0.000 |
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|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
1977.600
|
1778.100
|
1340.800 |
|
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Sundry Debtors
|
360.000
|
289.400
|
752.900 |
|
|
Cash & Bank Balances
|
485.800
|
287.200
|
142.000 |
|
|
Other Current Assets
|
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances
|
818.000
|
489.500
|
438.400 |
Total Current Assets
|
3641.400
|
2844.200
|
2674.100 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
492.000
|
326.000
|
631.200 |
|
|
Provisions
|
286.400
|
96.100
|
54.400 |
Total Current Liabilities
|
778.400
|
422.100
|
685.600 |
|
Net
Current Assets
|
2863.000
|
2422.100
|
1988.500 |
|
|
|
|
|
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|
MISCELLANEOUS EXPENSES
|
0.000 |
22.500 |
45.500 |
|
|
|
|
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|
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TOTAL
|
11043.300 |
8371.900 |
5064.300 |
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PROFIT & LOSS ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.12.2003 |
Sales Turnover [including other income]
|
7527.400 |
7121.700 |
4699.000 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
720.100 |
631.200 |
479.300 |
Provision for Taxation
|
151.900 |
205.200 |
120.700 |
Profit/(Loss) After Tax
|
568.200 |
426.000 |
358.600 |
|
|
|
|
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Total Expenditure
|
6807.300 |
6490.500 |
4219.700 |
SUMMARISED
RESULTS
|
PARTICULARS |
|
30.09.2006 [1st Half] |
31.03.2007 [2nd Half] |
|
Sales
Turnover |
|
3902.400 |
4263.500 |
|
Other
Income |
|
86.800 |
203.600 |
|
Total
Income |
|
3989.200 |
4467.100 |
|
Total
Expenditure |
|
3099.000 |
3563.200 |
|
Operating
Profit |
|
890.200 |
903.900 |
|
Interest |
|
165.100 |
215.700 |
|
Gross
Profit |
|
725.100 |
688.200 |
|
Depreciation |
|
376.600 |
422.600 |
|
Tax |
|
129.900 |
(35.100) |
|
Reported
PAT |
|
218.600 |
190.800 |
|
Dividend
(%) |
|
0.000 |
0.000 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2006 |
31.03.2005 |
31.12.2003 |
|
PAT / Total Income |
(%) |
7.54
|
5.98 |
7.63 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.57
|
8.86 |
10.20 |
|
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|
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.12
|
7.85 |
9.40 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.20 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.18
|
1.60 |
0.96 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.68
|
6.74 |
3.90 |
STOCK PRICES
|
Face
Value |
Rs.10.00 |
|
High |
Rs.17.90 |
|
Low |
Rs.17.40 |
LOCAL AGENCY FURTHER
INFORMATION
History:
Subject is a part of Trident Group was promoted by Rajinder
Gupta. The company is engaged in manufacturing of Terry Towels, Cotton Yarn and
Paper. The company is one of the largest manufacturer of Terry Towels in
The company's Yarn plant which produces both cotton and acrylic yarn is located
at Sanghera,
The company's Second Unit i.e Unit II has an installed capacity of 43392
Spindles for manufacture of dyed cotton, melange, acrylic and blended yarn
besides carded and combed cotton yarn. The Unit II project which has been
divided into parts the first phase of 36288 Spindles has started commercial
production from 1st July, 1999. The cost of project amounts to Rs 950 Millions
which was financed by term loans, rights issue and internal accruals.
During 1999-2000, the company got the status of Government Recognised Trading
House and the quality of the products was well accepted in the international
market.
During 2002, Varinder Agro was merged with company. The shareholders of
Varinder Agro were allotted 70 equity shares in Abhishek Industries for every
24 shares held.
Business:
Corporate Overview
The Company operates in four main business segments viz. Yarn, Terry Towel,
Paper and Chemical. At present Company is having following manufacturing
capacities installed beside utilities of Co-Generation of Power and Soda
Recovery:
Yarn 78,864 spindles Yarn processing 6,825 tpa Open End Yarn 1,280 Rotors (6500
tpa) Terry towels 208 looms (21,000 tpa) Writing & printing paper 40,500
tpa Sulphuric acid 1,00,000 tpa
Results of Operations
Financial Review
The net sales of the Company for the period under report increased to Rs 7056.2
million as compared to Rs 4638.1 million in the previous year, registering a
growth of 22 per cent on annualized basis. The Profit before interest and taxes
of the Company has grown by 10 per cent on annualised basis from Rs 1063.9
million in previous year to Rs 1462.2 million in the period under review.
However, Net Profit margin could not be sustained due to adverse effect of a
weak dollar and realignment of export incentives besides provision for deferred
tax.
Cash profit increased by 13 per cent on annualized basis to Rs 1197.2 million
from Rs 844.7 million in the previous year. Company has added fixed assets
worth Rs 3267.4 million over Rs 4950.6 million in the previous year making its
gross block of fixed assets to Rs 8218.0 million.
Total paid up capital of your Company remained unchanged at Rs 1942.0 million.
Earning per share was Rs 2.19 and Cash Earning per share was Rs.6.16.
Exports
Export sales accounted for 47 per cent of net sales. During the period under
review, export sales increased by 27 per cent on an annualized basis from Rs
2076.3 million in the previous year to Rs 3300.2 million in the current
period.
Expansions / Modernisation
During the period under report, the Company has commissioned phase I consisting
of 96 looms of Terry Towel increasing the installed capacity by approximately
12,300 tpa. Phase II of Terry Towel expansion project envisaging the setting up
of 60 additional looms is under implementation and is likely to be operative by
third quarter of 2005-6. The total capitaloutlay for the scheme is Rs 3330
million.
Also, the Company has upgraded its existing spinning facilities through
automation and increasing the value adding processes with an investment of
approximately Rs 150 million, besides putting up new facilities for producing
Open-End Yarn with an installed capacity of 6,500 tpa with an investment of Rs
390 million. The commercial production has also started.
The Company is expanding all its core businesses. The Company has already
started working towards executing Phase I of expansion cum modernization
programme of its Paper division. The scheme envisages setting up of a new pulp
mill with an installed capacity of 225 tpd, a new paper machine with an
installed capacity of 275 tpd besides the upgradation and modernisation of
existing pulp an paper facilities, upgradation and environmental management
both for existing and new facilities and a captive power plant of 20 MW
involving an investment of approximately Rs 6800 million. The Phase I consists
of upgradation and modernisation of the existing pulp and paper facilities
along with requisite environmental management.
The Company is also expanding the yarn production facilities by installation of
another 50,784 spindles involving an outlay of Rs 1560 million. The work has
already commenced on the scheme and the facility is scheduled to be operative
from June 2006.
Looking at the power scenario in the State, the Company intends to gain self
sufficiency for its power requirements and accordingly is setting up an
additional 20 MW captive power generation capacity to meet the power
requirements of its textiles business, both existing and future. The project,
with an estimated cost of Rs 706 million has been appraised by ICICI with the
sanction of necessary financial assistance under the TUF scheme. The
implementation has already commenced and is scheduled to be completed by June
2006.
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 :s
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.40.49 |
|
|
1 |
Rs.81.77 |
|
Euro |
1 |
Rs.55.18 |
|
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 |
|