MIRA
INFORM REPORT
|
Report Date : |
16.06.2007 |
IDENTIFICATION DETAILS
|
Name : |
HIMATSINGKA SEIDE
LIMITED |
|
|
|
|
Registered Office : |
2/1, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2006 |
|
|
|
|
Date of Incorporation : |
23.01.1985 |
|
|
|
|
Com. Reg. No.: |
08-6647 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L1711ZKA1985PLC006647 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
BLRH01939A |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACH3507N |
|
|
|
|
Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges |
|
|
|
|
Line of Business : |
Manufacturing of
Natural Silks and Silk Blended Fabrics. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 22500000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well
established and reputed company having satisfactory track. Available
information indicates high financial responsibility of the company. Trade
relations are fair. Financial position is good. Payments are usually correct
and as per commitments. The company is faring well. It can be
considered good for any normal business dealings. |
LOCATIONS
|
Registered Office : |
2/1, |
|
Tel. No.: |
91-80-25584038 / 25584307 / 25586304 |
|
Fax No.: |
91-80-23340117 / 25584249 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Office : |
No. 10/24, |
|
Tel. No.: |
91-80-22378000 |
|
Fax No.: |
91-80-22378058 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
23A, KIADB Industrial Area, |
DIRECTORS
|
Name : |
Mr. N. Vaghul |
|
Designation : |
Chairman |
|
Address : |
Flat No. 3,
Sudarshan Apartments, |
|
Date of Birth/Age : |
68 years |
|
|
|
|
Name : |
Mr. Dinesh Himatsingka |
|
Designation : |
Managing Director |
|
Address : |
173, RMV Extension, 8th |
|
Date of Birth/Age : |
55 years |
|
Qualification : |
B.A (Hons.) |
|
Experience : |
28 years |
|
Date of Appointment : |
01.08.1985 |
|
Previous
Employment |
Managing Director of |
|
|
|
|
Name : |
Mr. A. K. Himatsingka |
|
Designation : |
Vice Chairman & Whole time Director |
|
Address : |
25, |
|
Date of Birth/Age : |
63 years |
|
Qualification : |
B. Com. |
|
Date of Appointment : |
01.04.1999 |
|
Previous
Employment |
Whole time Director of Bihar Mercantile Union Limited |
|
|
|
|
Name : |
Mr. Rajiv Khaitan |
|
Designation : |
Director |
|
Address : |
203, Salarpuria
Paradise, 31, |
|
Date of Birth/Age : |
45 years |
|
Qualification : |
B.Com LLB |
|
|
|
|
Name : |
Mr. A. K. Dasgupta |
|
Designation : |
Director |
|
Address : |
IPSHITA, 10
Dreamland Society, Aloycious Soares Marg, Chembur, Mumbai – 400071, |
|
Date of Birth/Age : |
70 years |
|
Qualification : |
B.E. [Civil], PG in Concrete Technology |
|
|
|
|
Name : |
Mr. Aditya Himatsingka |
|
Designation : |
Executive Director |
|
Address : |
|
|
Date of
Birth/Age : |
40 years |
|
Qualification
: |
B. Com. (Hons.), Diploma in Textiles |
|
Experience : |
17 years |
|
Date of
Appointment : |
01.01.1988 |
|
|
|
|
Name : |
Mr. Dilip J. Thakkar |
|
Designation : |
Director |
|
Address : |
Little |
|
Date of
Birth/Age : |
68 years |
|
Qualification
: |
B. Com LLB FCA |
|
|
|
|
Name : |
Mr. Srikant Himatsingka |
|
Designation : |
Director |
|
Address : |
173, RMV
Extension, 8th |
|
Date of Birth/Age
: |
25 years |
|
Qualification
: |
B.Sc[Economics] |
|
|
|
|
Name : |
Mr. K R S Murthy |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Amit Jain |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31st
December, 2006
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
Shareholding of Promoter and Promoter Ground 2
|
|
|
|
Indian |
|
|
|
Individuals/Hindu
Undividend Family |
26739268 |
27.52 % |
|
Bodies
Corporate |
22153109 |
22.80 % |
|
Foreign |
|
|
|
Individuals
(Non-Resident Individuals/Foreign Individuals) |
237800 |
0.24 % |
|
Public
Shareholding 3 |
|
|
|
Institutions |
|
|
|
Mutual Funds/UTI |
10824291 |
11.14 % |
Financial
Institutions/Banks
|
37280 |
0.04 % |
|
Insurance
Companies |
1241286 |
1.28 % |
|
Foreign
Institutional |
13580616 |
13.98 % |
|
Non-Institutions
|
|
|
|
Bodies
Corporate |
2570268 |
3.65
% |
|
Individual shareholders
holding nominal share capital up to Rs. 0.100 Millions |
11027060 |
11.35 % |
|
Individual
shareholders holding nominal share capital in excess of Rs. 0.100 Millions |
7472592 |
7.69 % |
|
Any other
(Sepecify) |
|
|
|
- NRI/OCB |
1261660 |
1.30 % |
|
- Clearing Member |
27930 |
0.03 % |
|
Total |
97173160 |
100.00 % |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Natural Silks and Silk Blended Fabrics. |
||||||||
|
|
|
||||||||
|
Products : |
Its product range
includes ·
Decorative
Fabrics
|
||||||||
|
|
|
||||||||
|
Exports : |
|
||||||||
|
Countries : |
|
||||||||
|
|
|
||||||||
|
Imports : |
|
||||||||
|
Countries : |
|
||||||||
|
|
|
||||||||
|
Terms : |
|
||||||||
|
Selling : |
L/C, Cash or
Credit [30/60/90 days] terms. |
||||||||
|
|
|
||||||||
|
Purchasing : |
Cash terms |
GENERAL INFORMATION
|
Customers : |
Wholesalers and
Retailers |
|
|
|
|
No. of Employees : |
641 |
|
|
|
|
Bankers : |
|
|
|
|
|
Facilities : |
-- |
|
|
|
|
Banking
Relations : |
Satisfactory |
|
|
|
|
Auditors : |
|
|
Name : |
S. B. Billimoria
& Company Chartered
Accountants |
|
Address : |
|
|
Tel. No.: |
91-80-22254610 |
|
Fax No.: |
91-80-22203125 |
|
|
|
|
Associates : |
v
v
Khaitan
& Company v
Satin
Reed ( v
Credit
Himatsingka Limited v
BMU
International v
19/1,
-
Exporters
of silk fabrics. |
|
|
|
|
Subsidiaries : |
ABC Trading
Private Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,00,000 |
Equity Shares |
Rs.5/- each |
Rs.500.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
97433160 |
Equity Shares |
Rs.5/- each |
Rs. 487.166 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
487.200 |
191.200 |
191.200 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5248.900 |
2680.400 |
2586.8000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5736.100 |
2871.600 |
2778.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
397.500 |
585.000 |
137.600 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
397.500 |
585.000 |
137.600 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6133.600 |
585.000 |
2915.600 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
940.100 |
920.600 |
1083.500 |
|
|
Capital work-in-progress |
200.400 |
164.300 |
1.100 |
|
|
|
|
|
|
|
|
INVESTMENT |
1265.900 |
1642.600 |
1182.600 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
424.800
|
293.900 |
358.700 |
|
|
Sundry Debtors |
306.200
|
231.500 |
217.400 |
|
|
Cash & Bank Balances |
2921.800
|
147.200 |
115.700 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
539.600
|
424.600 |
373.100 |
|
Total Current Assets |
4192.400
|
1097.200 |
1064.900 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
137.600
|
85.300 |
121.800 |
|
|
Provisions |
336.800
|
282.800 |
294.700 |
|
Total Current Liabilities |
474.400
|
368.100 |
416.500 |
|
|
Net Current Assets |
3718.000
|
729.100 |
648.400 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
9.200 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6133.600 |
3456.600 |
2915.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
1708.900 |
1454.600 |
1485.900 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
511.700 |
495.800 |
545.200 |
|
Provision for
Taxation |
28.600 |
31.800 |
40.000 |
|
Profit/(Loss)
After Tax |
483.100 |
464.000 |
505.200 |
|
|
|
|
|
|
Total Expenditure |
1695.200 |
1435.600 |
1475.400 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2006 |
30.09.2006 |
31.12.2006 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales
Turnover |
377.700 |
469.900 |
462.800 |
|
Other
Income |
61.700 |
68.700 |
68.300 |
|
Total
Income |
439.400 |
538.600 |
531.100 |
|
Total
Expenditure |
251.900 |
311.000 |
321.200 |
|
Operating
Profit |
187.500 |
227.600 |
209.900 |
|
Interest |
1.100 |
1.100 |
1.200 |
|
Gross
Profit |
186.400 |
226.500 |
208.700 |
|
Depreciation |
35.300 |
37.300 |
37.200 |
|
Tax |
7.000 |
27.000 |
20.800 |
|
Reported
PAT |
144.100 |
162.200 |
150.700 |
Notes
200606
Quarter 1 –
The Construction of Company's Bed Lenin Project at Hassan is
on Schedule. There were no pending investor complaints at the beginning of the quarter.
During the quarter ended 30.06.2006, The Company received 37 Investor
complaints which have been attended and no complaints remain unresolved as on
30.06.2006. Previous Year /quarters figures have been regrouped/recast wherever
necessary.
200609
Quarter 2 –
Expenditure Includes Consumption of Raw Material Rs 151.722
million (Increase)/Decrease in stock Rs 10.518 million Personnel Expenses Rs
57.739 million Manufacturing Expenses Rs 40.135 million Administration, Sales
& Other expenditure Rs 50.837 million 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 41
Complaints disposed off during the quarter 41 Complaints unresolved at the end
of the quarter Nil 1. Erection of plant and machinery for bed linen project at
Hassan SEZ is in progress. 2. Effective from April 01, 2006, the ICAI has
issued revised AS-15 on Employee benefits. The Company is in the process of ascertaining
the impact of said revised AS-15 and the necessary provision in respect of
additional liability if any, will be made at the year end. 3. The Board of
Directors have recommended payment of 25% (Rs 1.25 per share of Rs 5 each)
Interim Dividend. 4. The Statutory Auditors have carried out a limited Review'
of the financial results for the quarter / half year ended September 30, 2006.
4. Previous years / quarters figures have been regrouped / recast, wherever
necessary
200612
Quarter 3 –
Expenditure Includes Consumption of Raw Material Rs 241.867
million (Increase)/Decrease in stock Rs (75.510) million Personnel Expenses Rs
62.933 million Manufacturing Expenses Rs 37.884 million Administration, Sales
& Other expenditure Rs 54.072 million EPS is Basic & Diluted Status of
Investor Complaints for the quarter ended December 31, 2006 Complaints Pending
at the beginning of the quarter Nil Complaints Received during the quarter 69
Complaints disposed off during the quarter 69 Complaints unresolved at the end
of the quarter Nil 1. Erection of plant and machinery for bed linen project at
Hassan SEZ is in progress. 2. The Statutory Auditors have carried out a
'Limited Review' of the financial results for the quarter/nine months ended
December 31, 2006. 3. Previous years/quarters figures have been
regrouped/recast, wherever necessary.
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.11 |
0.13 |
0.03 |
|
Long Term Debt
Equity Ratio |
0.06 |
0.03 |
0.00 |
|
Current Ratio |
4.13 |
1.59 |
2.06 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.70 |
0.66 |
0.68 |
|
Inventory |
4.23 |
4.26 |
3.97 |
|
Debtors |
5.66 |
6.20 |
6.34 |
|
Interest Cover
Ratio |
36.05 |
30.87 |
78.10 |
|
Operating Profit
Margin (%) |
43.62 |
45.21 |
46.27 |
|
Profit Before
Interest and Tax Margin (%) |
34.59 |
36.84 |
35.48 |
|
Cash Profit
Margin (%) |
40.78 |
41.73 |
43.24 |
|
Adjusted Net
Profit Margin (%) |
31.75 |
33.36 |
32.45 |
|
Return on Capital
Employed (%) |
10.99 |
16.08 |
17.92 |
|
Return on Net
Worth (%) |
11.22 |
16.43 |
16.82 |
STOCK PRICES
|
Face Value |
Rs.5/- |
|
High |
Rs.127.55/- |
|
Low |
Rs.124.00/- |
LOCAL AGENCY FURTHER INFORMATION
Fixed
Assets
v
Land
v
v
Building
v
v
Plant and
Machinery
v
Furniture
and Fixtures
v
Office
Equipment
v
Vehicles
It is in trade
terms with :
v
v
Jab
Josef Anstoetz
v
Robert
Allen
v
Nobilis
v
Zimmer
+ Rohde
v
Christian
Fischbacher
v
Sahco
Hesslein
v
Kravet
v
Rubelli
v
Schumacher
v
Lelievre
v
Andrew
Martin
v
Decortex
v
Osborne
& Little
Financials:
Although profit before tax from operations (without other income) increased
marginally to Rs. 422.35 million, from Rs. 411.44 million in the previous year,
the operating profit margin for the year was lower and stands at 40.51% versus
41.31% of the previous year. This fall is mainly attributed to a 12% increase
in raw material prices along with the appreciation of the rupee, which impacted
their sales realisation.
During the year, they added Rs. 422.38 million to their investible surplus
bringing it up to Rs. 1701.29 million as on March 31, 2005. The surplus was
invested in debt-based mutual fund schemes and bank deposits. Returns on these
investments averaged 5.08% during the year. Other income, as a result of this,
was Rs. 65.23 million, as against Rs. 133.74 million in the previous year. The
considerable drop in their other income impacted their Profit after tax for the
year, which stands at Rs. 464.03 million, as against Rs. 505.18 million in the
previous year.
Consolidated Financial Results:
Their
consolidated sales revenue grew by 13% to Rs.1497.57 million as compared to Rs.
1328.35 million in the previous year. Profit before tax from operations was at Rs.
426.52 million, up 12% as compared to previous year. However, due to lower
other income, the net profit was at Rs. 454.60 million as compared to Rs.
470.14 million in the previous year.
Prospects:
The international market is showing signs of improvement, though recovery is
still slow. They are prepared for the upswing and are positioning ourselves to
meet potential increase in consumer demand. In line with this strategy, the
Company has expanded capacity of the weaving division in April 2005 at a cost
of Rs. 200 million.
Finance:
Cash generation during the year continued to be strong. The Company's surplus
funds were invested prudently. Of the total investible surplus of Rs. 1701.29
million as on March 31, 2005, the Company has invested Rs. 554.11 million in
debt schemes of mutual funds, while Rs. 122.50 million was kept in fixed
deposits with banks. In accordance with the provisions of the Investor
Education and Protection Fund (awareness and protection of investor) Rules,
2001, unpaid and unclaimed dividend amounting to Rs. 0.19 million for the
financial years 1996-97 and 1997-98 was transferred to the Investor Education
and Protection Fund.
Personnel:
Industrial relations were cordial and an atmosphere of understanding prevailed
throughout the year. They continue to train and motivate their workforce, to
increase their contribution to the growth of the Company.
Research and Development:
Research
and Development continues to provide valuable support to their exports and has
helped us keep pace with a dynamically changing market. They continue to give
in-house research and innovation the highest priority.
Awards:
The Company was conferred the Best Managed Company (small cap category) Award
by the prestigious Asiamoney magazine published from
1. Best Annual Report2. Best Focus on Shareholder Value3. Best Operational
Efficiency
The Company also received the 'Largest Silk Exporter' Award from the Indian
Silk Export Promotion Council for the twelfth consecutive year.
Environment, Safety, Energy Conservation and Technology Absorption:
Safety and environmental protection continue to be the prime concern of the
Company. Investments are continuously made in projects for reducing and
treating wastes and increase energy efficiencies.
They regularly upgrade their effluent treatment and water recycling plants to
keep pace with the technological advancements. By avoiding carcinogenic azo
class dyes, they ensure eco friendly production and worker safety. Their
endeavour has been to maximize efficient use of energy and ensure the safe and
responsible discharge of residual wastes, while minimising any adverse
environmental impact and waste generation.
Information under section 217(1)(e) read with Companies (Disclosure of
particulars in the report of Directors) Rules, 1988 are given in the Annexure,
forming part of this report.
Corporate Governance:
They
comply with the Corporate Governance Code as prescribed by the Stock Exchanges
and SEBI. You will find a detailed report on Corporate Governance as part of
this Annual Report. The Auditors' Certificate on compliance with the mandatory
recommendations on Corporate Governance is annexed to this report.
Industry Structure and Developments :
Their product portfolio comprises of a broad range of silk & silk-blended
furnishings, apparel fabric and silk & blended yarn. To maintain their
leadership position as the largest manufacturers of these products in
The principal producers of high-quality fabrics are
Opportunities:
Recognizing an opportunity to enter the dynamically growing domestic market
with an exclusive range of home furnishings, they launched ten signature stores
under the brand name ATMOSPHERE. This retail initiative is conducted through a
wholly owned subsidiary, Himatsingka Wovens Private Limited. They aim to
achieve about 20% of their fabric division's revenues from this venture.
They believe the phasing out of MFA quotas on textiles and clothing products
from January 1, 2005, will dramatically boost world trade. They see this
liberal, free trade environment as an attractive business opportunity, since it
will give non-silk and blended fabrics unrestricted access to export markets.
Towards this end, they have identified cotton bed linen and made ups as their
current focus area. Plans to set up a new, world-class production facility
dedicated to its manufacture have already been finalized.
Threats:
Globally,
Risks and Concerns:
The
Company's risks and concerns have been discussed comprehensively under the
segment, disk Management, later in this section.
Retail Operations:
The
Company's retail initiative is conducted through a wholly owned subsidiary,
Himatsingka Wovens Private Limited under the brand name ATMOSPHERE. During the
year 2004-05 Company opened six new showrooms in
Outlook:
They are witnessing improved economic growth in their main markets. Similarly,
they expect robust growth in their domestic market, which is serviced through
Atmosphere showrooms. They would continue to gain market share as their
potential customers increasingly value the reliability, sustainability,
innovation, integrity and quality behind the Himatsingka brand. And they will
continue to promote these advantages as they target new customers as well as
territories and take additional market share in the coming years.
Risk Management:
Risk is an essential part of any business or industrial undertaking. A
comprehensive and integrated risk management framework forms the basis of all
the de-risking efforts taken by the Company. Prudential norms aimed at limiting
exposures are an integral part of this framework.
A slowdown in the global economy could affect the Company's revenues and
profits. The high degree of concentration in select markets could turn risky,
especially when the consumption pattern in these markets is affected by
political or economic events specific to them.
They mainly cater to countries in Western Europe and
They sell to distributors and brands that have a global retail presence. Hence,
they are not limited by the geographic fluctuations that generally mark most
businesses.
In 2004-05, the Company earned an average realisation of $20 per metre, which
was considerably higher than the average realisation per metre of silk and
silk-blended fabric exported from the country. The Company may not be able to
sustain these realisation levels in future.
The Company essentially benchmarks itself with Italian, French and Swiss
producers of similar fabric. They have a cost advantage of about 20-25% over
players in these countries. As long as this differential is available to us,
their selling price will be more attractive to their customers than the
products available from European producers.
The Company had a forex exposure of Rs. 1500 million in 2004-05, which includes
imports and exports. Since foreign exchange rates are volatile, the Company
must prudently manage its exposure at all times.
To minimise this risk, they have laid down a foreign exchange management policy
and applied appropriate hedging strategies. The Company's chosen policy is
designed to optimise results rather than maximise realisations. The Company has
set up systems to continuously track and manage its exposures. The risk
management team regularly seeks expert advice and stays abreast of currency
movements.
As on March 31, 2005, the Company had invested Rs. 1580 million in plant and
machinery. These assets may be subject to obsolescence due to both ageing and
the continuous emergence of new technologies.
They continue to channel fresh investments in plant and machinery to update and
modernise their older assets and embrace the latest technologies in the context
of capacity enhancements.
An excessive exposure to a few large clients has the potential to impact the
Company's revenues and increase its credit risk.
The Company's maximum exposure to a single client is around 6% of its turnover.
The addition of new customers will enable us to further dilute this risk.
The Company imports its principal raw materials from
To minimise the risk arising out of a potential delay in delivery and to
mitigate the impact of an unforeseen increase in raw material prices, they keep
a three-to-four month raw material inventory.
The effluents generated in some of the Company's production processes are
harmful to the environment, if released untreated. A poor management of the
environment process could invite official censure and lead to a closure of the
Company's operations.
They conduct their operations with respect for the environment. Their
continuous investments in their effluent and waste water treatment plant ensure
that the effluents and waste generated are within the statutory levels.
In a business like ours, where specialised insights into design, manufacturing
and marketing translate into value-addition, an attrition of critical skill
sets will be difficult to replace immediately.
Various initiatives on the HR front have been implemented which have led to
positive working environment in the Company. With these measures, they intend
to keep their work force motivated and improve their retention levels
considerably from the current attrition rate of 7%.
The Company's intellectual capital resides largely in its designs. If these
designs are lost or pilfered, it could give someone a headstart in the market
and lead to a corresponding loss in the Company's competitive edge.
To ensure design security, they have embarked on a few initiatives. They have
prudently evolved designs from the physical to the virtual networked
environment with high security features. Besides, only select personnel have
access to these designs, which has minimised the loss of sensitive
information.
As
Per Website Details
Company
Their
silk yarns and fabrics are offered across
Spinning
division
Himatsingka
Filati, their spinning division, was established in technical collaboration
with Filati Buratti of
Weaving division
Himatsingka Seide, their
weaving division, offers yarn dyed decorative, bridal and fashion
fabrics. The entire operation of winding, doubling, twisting, dyeing, weaving
and finishing is integrated under one roof.
Awards
- They have been awarded the first prize
for being the largest exporter of silk fabrics from the Indian Silk Export
Promotion Council (ISEPC) for 1997 - 98
- They have received the ISO 9001
certificate from TUV Germany for establishment of quality systems in the
manufacture of natural silk fabrics and yarns
- Himatsingka Seide has been ranked among
the top ten investor rewarding companies in
1SO
9001 certificate
from TUV
As a responsible organisation, they ensure a safe environment for the community
around their factory. Several programmes have been initiated as part of their
contribution to community Environment & Social Welfare
In
2003, HSL forayed into domestic retailing & launched “a t m o s p h e r
e”,
In
addition to increasing its retail presence in
Going
forward, Himatsingka has embarked on a 400 Crore Greenfield Project at
the Hassan SEZ to manufacture Bed Linen products for Domestic &
International Markets. The integrated manufacturing facility will be amongst
the best of its kind & will have an installed capacity of 60,000 meters/day
of Wider Width Cotton Fabrics & 8,000 sets/day of exquisite Made-up
products.
Their
engineers are trained in yarn, fabric and dyeing technologies. Apart from this,
expertise in facilities engineering is available. Their designers come from
reputed design schools in
Insight
into international market trends is provided through training programmes and
enhanced by the presence of their design house in
Their
contribution to the community around the factory takes the form of welfare
programmes. One such programme is the adoption and development of Veerapura
village located near their mill. Several facilities have already been built for
schools in the area, to promote education.
They
also ensure safe surroundings for people to live and work in. Eco-friendly
production processes, not using carcinogenic Azo class dyes and running a
modern effluent treatment plant, are some of the ways through which they keep
the environment pollution free.
Product
Their
fabrics and yarns reflect artistry and craftsmanship. Three fabric lines -
decorative, bridal and fashion - are offered by their weaving division. Yarns
of both the traditional variety and interesting new blends are manufactured by
Himatsingka Filati, their spinning division.
Their
products reach leading distributors across Europe and
Manufacturing
Their
integrated yarn and fabric manufacturing operations use state-of-the-art textile
equipment from the world's leading suppliers. Order processing, production
monitoring and process flow are seamlessly integrated through a company-wide
computer network. This helps us meet customer requirements on time.
Himatsingka Filati,
their spinning division
They
can spin about 400,000 kgs. of yarn each year. The power requirements are met
through their captive power plant. This prevents interruptions and provides a
stable supply to their micro-processor controlled machines. Luwa air-conditioning
plants from
Their
manufacturing facilities include equipment for opening, cutting, carding,
combing, drawing, roving, gassing, rewinding, as well as ring frames,
autoconers and two-for-one twisters.
Himatsingka Seide, their
weaving division
Their
vertical weaving operations handle the entire production process of yarn
preparation, yarn dyeing, weaving and finishing. They have 60 weaving machines
from Sulzer-Ruti and Dornier of which 30 are equipped with electronic jacquards
from Staubli. The looms fitted with the jacquards handle varying repeat sizes
up to 68 cms in width.
The
weaving operations are integrated through the computer network for efficient
process control, CAD and CIM operations. Other equipment like sample warpers
and colour matching computers support the production process.
Design
Studio
Each
Himatsingka fabric is marked by originality in design. The fully equipped
Design studio at their factory is supported by a CAD/CAM centre. Designers,
artists and stylists interact with each other. Latest styles are discussed and
client feedback evaluated. Sometimes, designs are created along with visiting
consultants. They specialise in traditional, transitional and contemporary
designs.
Every
design idea undergoes quality trials and sampling across a variety of yarns and
colours. Their weave technicians and full-fledged sampling staff ensure perfect
fabric finish. Over the years, they have developed an entire collection of
fabrics in different qualities, yarns and colours.
Brunschwig's forest design
The
forest theme presented a challenge in execution. Trace the exciting evolution
of this design from paper to fabric
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.40.76 |
|
|
1 |
Rs.80.67 |
|
Euro |
1 |
Rs.54.58 |
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 |
|