MIRA
INFORM REPORT
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Report Date : |
24.09.2007 |
IDENTIFICATION DETAILS
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Name : |
RSWM LIMITED |
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Formerly Known As : |
RAJASTHAN
SPINNING AND WEAVING MILLS LIMITED |
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Registered Office : |
Kharigram, P. O.
Gulabpura, District Bhilwara – 311 021, Rajasthan |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
1960 |
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Com. Reg. No.: |
8216 |
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CIN No.: [Company
Identification No.] |
L17115RJ1960PLC008216 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JDHR02676C |
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PAN No.: [Permanent
Account No.] |
AAACR9700M |
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Legal Form : |
A public limited
liability company. The company’s
shares are listed on the Stock Exchanges |
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Line of Business : |
Manufacturers and
Sellers of Polyester Viscose, Blended Yarn, Blended Fabric, Cotton Yarn, etc. |
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 12200000 |
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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 a well
established company having satisfactory track. Directors are reported as
experienced, respectable and resourceful businessmen. Their trade relations
are fair. Payments are usually correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions |
LOCATIONS
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Registered Office : |
Kharigram, P. O.
Gulabpura, District Bhilwara – 311 021, |
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Tel. No.: |
91-1482-223144 To 50 |
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Fax No.: |
91-1482-223361 |
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E-Mail : |
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Website : |
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Corporate Office : |
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Tel. No.: |
91-120-2541810
(EPABX) |
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Fax No.: |
91-120-2531648 /
22531745 |
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E-Mail : |
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Overseas
marketing offices |
Located at |
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Factory: |
Kharigram, P. O.
Gulabpur – 311 021, District Bhilwara, Rajasthan, Lodha, P. O.
Banswara – 327 001, Mandpam, Bhilwara
– 311 001, |
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Regional
offices: |
Located at : Mumbai, Kolkata
and |
DIRECTORS
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Name : |
Mr. Shekhar Agarwal |
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Designation : |
Vice Chairman and Managing Director |
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Date of Birth/Age : |
50 years |
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Qualification : |
B.Tech. (M.E.), M. Sc. ( |
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Experience : |
21 years |
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Date of Appointment : |
13.02.1984 |
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Previous
Employment |
Shashi Commercial Limited – Chief Executive |
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Name : |
Mr. J. C. Laddha |
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Designation : |
Executive Director |
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Date of Birth/Age : |
53 years |
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Qualification : |
B.Com., F.C.A. |
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Experience : |
30 years |
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Date of Appointment : |
01.01.1988 |
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Previous
Employment: |
Bhilwara Spinners Limited |
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Name : |
Mr. L. N.
Jhunjhunwala |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. Ravi
Jhunjhunwala |
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Designation : |
Chairman |
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Name : |
Dr. Kamal Gupta |
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Designation : |
Director |
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Name : |
Mr. A. R. Garde |
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Designation : |
Director |
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Name : |
Mr. S. K.
Srivastava |
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Designation : |
Director - Nominee LIC |
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Name : |
Mr. Riju
Jhunjhunwala |
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Designation : |
Director |
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Name : |
Mr. A K Churiwal |
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Designation : |
Director |
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Name : |
Mr. D N Davar |
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Designation : |
Director |
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Name : |
Mr. R P Khaitan |
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Designation : |
Director |
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Name : |
Mr. Pradeep
Dinodia |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Surender Gupta |
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Designation : |
Company Secretary |
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Corporate Office Mr. D. P. Mangal Executive Director (Corporate Affairs) Mr. R. S. Dugar Executive Director Mr. P. S. Puri President (Corporate Finance) Mr. T. Dev Joshi President (HR & OD) Mr. M. L.
Jhunjhunwala Sr. Vice President, Mumbai Business Heads Mr. J. C. Laddha Chief Executive (Dyed Yarn Business) Mr. Prakash Maheshwari Chief Executive (Grey Yarn Business) Mr. S. C. Garg Chief Executive (Melange Yarn Business) Project Heads Mr. Haresh Israni
President (Operations - Denim Business) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters, Directors, relatives and associates |
12037742 |
52.00 |
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Foreign institutional investors/ mutual |
199178 |
0.86 |
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Public financial institutions/ State Financial Corporation |
2206321 |
9.53 |
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Mutual funds (Indian) |
740702 |
3.20 |
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Nationalised and other banks |
14636 |
0.06 |
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NRIs/OCBs (Other than Promoters) |
536239 |
2.32 |
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Public |
7413871 |
32.03 |
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Total |
23148689 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturers and
Sellers of Polyester Viscose, Blended Yarn, Blended Fabric, Cotton Yarn, etc. |
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Products : |
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Brand Names : |
"MAYUR" |
GENERAL INFORMATION
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No. of Employees : |
6204 |
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Bankers : |
v
State
Bank of v
State
Bank of v
Bank of v Punjab National Bank v
The Bank of Rajasthan Limited, Bhilwara, v
ICICI Bank Limited, Bhilwara, v
Axis Bank
Limited, |
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Facilities : |
-- |
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Banking Relations
: |
Satisfactory |
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Auditors : |
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Name : |
Chartered Accountants, Jaipur,
Chartered Accountants, Bhilwara, |
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Associates/Subsidiaries : |
v
Bhilwara
Infotech Limited v
Bhilwara
Melba de Witte Limited v
Bhilwara
Processors Limited v
Bhilwara
Spinners Limited v
BSL
Limited v
eScribe
India Private Limited v
HEG
Limited v
Indo
Canadian Consultancy Services Limited v
Malana
Power Company Limited v
Maral
Fashions v
Maral
Overseas Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
34,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 340.00 millions |
|
3,100,000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 310.00 millions |
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Total
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Rs. 650.00 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
23150000 |
Equity Shares |
Rs. 10/- each |
Rs. 231.500 Millions |
|
37500000 |
Cumulative Redeemable Preference Shares |
Rs. 100/- each |
Rs. 375.000 Millions |
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Total |
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Rs. 606.500 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
606.500 |
606.500 |
219.200 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2446.200 |
2055.000 |
1774.200 |
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4] Warrants |
0.000 |
18.800 |
0.000 |
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5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3052.700 |
2680.300 |
1993.400 |
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LOAN FUNDS |
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1] Secured Loans |
8724.900 |
4440.500 |
3786.600 |
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2] Unsecured Loans |
0.400 |
1.400 |
102.000 |
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TOTAL BORROWING |
8725.300 |
4441.900 |
3888.600 |
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DEFERRED TAX LIABILITIES |
0.000 |
347.700 |
256.800 |
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TOTAL |
11778.000 |
7469.900 |
6138.800 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
5158.300 |
4027.700 |
2740.100 |
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Capital work-in-progress |
3247.900 |
279.000 |
794.700 |
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INVESTMENT |
464.600 |
267.800 |
407.600 |
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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 |
1649.700
|
1292.200
|
1169.900 |
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Sundry Debtors |
1006.700
|
1118.000
|
621.500 |
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Cash & Bank Balances |
166.000
|
45.700
|
65.700 |
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Other Current Assets |
0.000
|
865.800
|
446.300 |
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Loans & Advances |
1107.900
|
212.500
|
363.800 |
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Total
Current Assets |
3930.300
|
3534.200 |
2667.200 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1043.600
|
528.600
|
391.000 |
|
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Provisions |
0.400
|
126.700
|
93.900 |
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Total
Current Liabilities |
1044.000
|
655.300 |
484.900 |
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Net Current Assets |
2886.300
|
2878.900 |
2182.300 |
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MISCELLANEOUS EXPENSES |
20.900 |
16.500 |
14.100 |
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TOTAL |
11778.000 |
7469.900 |
6138.800 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
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Sales Turnover |
10558.700 |
9877.800 |
7555.400 |
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Other Income |
187.200 |
115.800 |
272.000 |
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Total Income |
10745.900 |
9993.600 |
7827.400 |
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Profit/(Loss) Before Tax |
647.200 |
390.100 |
209.900 |
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Provision for Taxation |
206.500 |
119.300 |
25.800 |
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Profit/(Loss) After Tax |
440.700 |
270.800 |
184.100 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
4175.675 |
3020.996 |
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Total Earnings |
NA |
4175.675 |
3020.996 |
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Imports : |
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Raw Materials |
NA |
333.944 |
552.753 |
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Total Imports |
NA |
333.944 |
552.753 |
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Expenditures : |
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Manufacturing Expenses |
551.600 |
503.600 |
567.200 |
|
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Administrative Expenses |
738.300 |
742.300 |
594.000 |
|
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Raw Material Consumed |
5902.300 |
5457.000 |
4344.700 |
|
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Salaries, Wages, Bonus, etc. |
782.900 |
692.000 |
508.200 |
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Interest |
269.100 |
231.900 |
155.000 |
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Power & Fuel |
1190.200 |
1077.100 |
660.600 |
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Other Expenditure |
124.000 |
118.400 |
139.700 |
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Total Expenditure |
9558.400 |
8822.300 |
6969.400 |
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QUARTERLY
|
PARTICULARS |
|
|
30.06.2007 (1ST
Quarter) |
|
Sales Turnover |
|
|
2543.200 |
|
Other Income |
|
|
37.400 |
|
Total Income |
|
|
2580.600 |
|
Total Expenditure |
|
|
2289.900 |
|
Operating Profit |
|
|
290.700 |
|
Interest |
|
|
82.800 |
|
Gross Profit |
|
|
207.900 |
|
Depreciation |
|
|
140.300 |
|
Tax |
|
|
9.400 |
|
Reported PAT |
|
|
50.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total
Income |
(%) |
4.10
|
2.70 |
2.35 |
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|
Net Profit Margin (PBT/Sales) |
(%) |
6.02
|
3.90 |
2.68 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
7.12
|
5.15 |
3.88 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.14 |
0.10 |
|
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|
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|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.20
|
1.90 |
2.19 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.76
|
5.39 |
5.50 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY
The company was
originally incorporated in the year 1960 at
Subject was
promoted by the Bhilwara Group which has interest in various group
companies. The company is managed by
Chairman, Mr. L. N. Jhunjhunwala and Vice-Chairman and Managing Director, Mr.
Shekhar Agarwal.
Subject came out
with a Rs. 1570.000 millions Euro issue in 1994 to finance its plans to
increase spindleage by 18800, add 24 looms at each of the units and to set up a
process house at its Banswara unit with a capacity of processing 15.6 million
mtrs. of fabric per annum. The
product-mix of the company include blends like polyester/viscose, 100% viscose,
100% polyester, polyester sewing threads, 100% acrylic, polynosic blends, silk
blends, viscose/flax, polyester/cotton, 100% cotton melange yarn.
During 1993-1994,
it signed a MOU with Hydro Quebec International,
Subject has opened
marketing offices in
The company had
received the Rajasthan's prestigious Export Excellence Award for the year
1994-95.
During the year
1997-98, Bhilwara Melba De Witte Limited, a joint venture project promoted by
the company with Australian and Belgian partners, had established its
leadership in the market for automotive furnishing fabric. In 1998-99, it increased the installed
capacity of spindles and looms to 131376 nos. and 157 nos. respectively and
commissioned 4.2 MW each of power plant for captive consumption.
During the year
1999-2000, the company's process house at Mordi, District Banswara had been
sold.
The company had
finalised plans for modernisation/upgradation of existing equipment under
Technology Upgradation Funs Scheme at a cost of Rs. 485.000 millions. Term loan upto Rs. 400.000 millions had been
sanctioned and the modernisation scheme had already commenced.
Term Loan upto Rs.
240.000 millions has been sanctioned from PNB for Yarn Dyeing project at
Mandpam, Looms at Gulabpura and the modernisation scheme has already commenced.
The Board of the company has approved for acquiring Rishabhdev Textile Mills
unit of HEG Limited and the company is taking steps for giving effect to this
proposal. The 2.8 ME at Mandpam at cost of Rs. 100.000 millions was installed
in 2002-03 and operations has commenced during the year itself.
The company’s fixed
assets of important value include Land (Freehold and Leasehold), Roads and
Buildings, Plant and Machinery, Electric Fittings and Water Supply
Installations, Furniture and Fixtures and Other Equipments and Vehicles.
Press Releases
LNJ
Bhilwara presents the new face of The Company As a corporate makeover company
unveilsnew logo-reflecting dynamism and growth
Noida, Monday, 11.09.2006 - The Company, a
leading integrated player in the textiles sector in
Since it's inception in 1961, THE COMPANY has gone from strength to strength. Incorporating the far sighted vision of the founder, it has moved from core strengths and specialties like grey, dyed and melange yarn to widen the portfolio and expand into Fabric (Mayur Suiting), Technical textiles like Flame Retardant Fabric, Ready to wear garments and now Denim.
Said Mr. Riju Jhunjhunwala Jt. MD The company " Apart from merely broadening their
inventory base, they have consciously been incorporating best industry
practices and strategizing towards keeping a step ahead of developments in both
technology as well as markets. The company has benchmarked the industry, as one
of the earliest and largest exporters to high fashion markets like Europe and
The three Crescents in ascending sizes strongly connote the growing nature of THE COMPANY . The crescent shape is symbolic of superlative quality, purity in nature and global (in fact cosmic) stature. The color Black connotes the strong heritage the Company enjoys, along with unity and reliability, while the color Gold reflects passion, excellence, superlative quality and the diverse expansion in the product range. The fine, international font used symbolizes compactness, along with unity and strong bonds.
"The three colours of the crescent represent different values: Black is the beginning of everything. It predates all that is new. Thence emerges light and colour. Thus black is also the umbilical cord that links us to their heritage. Gold stands for wealth - of knowledge, achievement, material gains - it takes us forward with passion and excellence and also connotes the diverse expansion of the group" Mr. Jhunjhunwala further added.
The company
The company has an annual capacity to deliver 75000 MT of yarn, with plans
already firmed to double the capacity by 2009. The in-house fabric weaving and
processing facilities, with an installed capacity of 12 million metres per
annum are being integrated and modernized in the current fiscal year, which
help us to achieve better realizations for the fabric manufactured. The
production capacity, at the state-of-the-art garment unit will be ramped up
from the current level of 3000 units per day to 8000 units per day within next
six months. The company is looking for more opportunities in the garment
business for global customers and feels that there are considerable avenues for
growth in this segment. Other ongoing endeavors include setting up a 27 million
meter /p.a denim facility and a captive power plant.
And these are not the only developments that have been steadily directed over the years. With the passage of time their strong sense of commitment to deliver the best in everything they touch has become deeply engrained in all the facets of their functioning. Within the company, they implement exacting standards for quality at power with the best in the world and ensure holistic development of their family members through varied cutting edge HR practices. But never the least they are irrevocably committed to developing and delivering the best to their clients from the smallest local to the largest global player. Their strong sense of social commitment has found newer avenues to grow into through their initiatives in the area of corporate social responsibility.
Profile
Rajasthan Spinning and Weaving Mills Ltd. the flagship
Company of the LNJ Bhilwara Group. The Company is primarily engaged in the
manufacture of synthetic, blended, melange and speciality yarns and fabrics.
The Company is a premier company of the Group, with a turnover of Rs.7750.00
Millions (US$ 177 million). The Company is exporting a complete range of yarn
and fabric to over 60 countries worldwide, giving The Company a markedly
visible presence across the textile world.
The manufacturing capacity of the Company is upwards of 81,000 MT of Yarn per annum from its Five Units - Gulabpura, Banswara, Mandpam, Rishabhdev And Ringas Located In Rajasthan. The Company also manufactures 12 million metres of fabric per annum at its Gulabpura unit.
All the plants are equipped with state-of-the-art machines and Captive Power
Generation facilities. The Company is the first composite textile mill in
The company’s leadership in the textile industry is exemplified in the equity that its brand enjoy in the Indian market - place - ‘ Mayur Suitings ‘.
The Company is in the process of modernization drive and increase of spindles of its all the manufacturing units. The Company will soon introduce ready -to-wear Apparels. To enhance its operating capacity, The Company has acquired Jaipur Polyspin Ltd. for manufacturing of Synthetic Blended Yarn. The Company has also acquired a state-of-the-art process house at Mordi, Banswara, Rajasthan..
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.39.87 |
|
|
1 |
Rs.80.11 |
|
Euro |
1 |
Rs.56.19 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
63 |
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. |
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 |
|