%20LIMITED%20-%20Toyota%2028-Aug-2008_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
28.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
INDO RAMA
SYNTHETICS (INDIA) LIMITED |
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Registered Office : |
31-A, MIDC Industrial Area, Butibori, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28-04-1986 |
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Com. Reg. No.: |
166615 |
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CIN No.: [Company
Identification No.] |
L17124MH1986PLC166615 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BPLI00021A |
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PAN No.: [Permanent
Account No.] |
AAALI1530L |
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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 : |
Manufacturing of
Cotton, Synthetic and Blended Yarn. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
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Maximum Credit Limit : |
USD 33000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject has
improved a lot in last 2 years and the company is expected to strengthen its
performance in medium to long – run. Trade relations
are fair. Financial position is satisfactory. 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
|
Registered Office / Manufacturing Plant : |
A-31, MIDC Industrial Area, Butibori, Nagpur – 441122, Maharashtra,
India |
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Tel. No.: |
91-7104-265314 / 265313 |
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Mobile No. : |
91-9881158158 |
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Fax No.: |
91-7104-265305/265402 |
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E-Mail : |
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Website : |
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Corporate
Office : |
4th Floor,
Dr. Gopal Das Bhawan, 28, Barakhamba Road, New Delhi - 110 001 |
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Tel. No.: |
91 11 23351101 |
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Fax No.: |
91 11 23326827 |
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E-Mail : |
ranvirk.vij@indorama-ind.com |
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|
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Regional Offices :
|
v
245 Hill Road, Gandhi Nagar, Nagpur-440
010, Maharashtra, India Tel No. 91-712-2528380 Fax No.91-712-2528379 v
7-A, Geeta Chambers, Ratlam
Kothi, AB Road, Indore - 452001, Madhya Pradesh. Tel No. 91-731-2512516 / 2512837 Fax No.91-731-2523470 |
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Worldwide Offices : |
v
P. T. Indorama Synthetics ·
Kembang Kuning, Ubrug, Post
Box # 7, Jatiluhur, Purwakarta, Indonesia Tel No. 62-264-200235 /
845 Fax No. 62-264-200068
Tel No. 62-21-5261555 Fax No. 62-21-5261501 to 05 v
P. T. Irama Dinamika Latex J1. Hang Kastrui # 8, Medan 21052, Indonesia Tel No. 61-61-321530 v
ISIN International Pte Limited Far Eastern Bank Building, 156 Cecil Street # 06-09, Singapore 0106 Tel No. 65-2221347 /
2256046 Fax No. 65-2234613 v
Indorama Chemicals Thailand 75/101, 102 Ocean Tower 2, 37th Floor, SOI Sukhumvit 19,
Asoke Road, Klongtoey, Bangkok 10110, Thailand Tel. No. 66-2-6616657 to 63 Fax No. 66-2-6616664 v
Indorama Chemicals (America) Inc. 901, Merry Lane, Oak Brook, Illinois 60521, USA Tel No. 1-708-5730797 Fax No. 1-708-5730805 v
Ashok Textile Industries (Private) Limited 6/40 New Road, Post Box # 1390, Kathmandu, Nepal Tel No. 977-1-223855 /
2256046 Fax No. 977-1-222239 v
Isin Lanka (Private) Limited 157-A, Kynsey Road, Colombo 8, Sri Lanka Tel No. 94-1-696897 / 8 Fax No. 94-1-698075 |
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Marketing Offices : |
Located at :
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DIRECTORS
|
Name : |
Mr. M. L. Lohia |
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Designation : |
Chairman |
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Name : |
Mr. O. P. Lohia |
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Designation : |
Managing Director |
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Name : |
Mr. O. P. Vaish |
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Designation : |
Director |
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|
Name : |
Mr. U. K. Khaitan |
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Designation : |
Director |
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|
Name : |
Mr. A. K. Ladha |
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Designation : |
Director |
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|
Name : |
Mr. K N Memani |
|
Designation : |
Director |
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|
|
Name : |
Mr. J. Miyazaki |
|
Designation : |
Director |
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Date of Appointment : |
02.04.2007 |
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|
Name : |
Mr. M Yamamota |
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Designation : |
Director |
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Name |
Mr. Vishal Lohia |
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Designation |
Executive Director |
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Age |
26 years |
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Qualification |
Bachelors Degree in Financial & Economics, USA |
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Experience |
2 years |
|
Date of
Appointment : |
28.06.2002 |
KEY EXECUTIVES
|
Name : |
N.C.
Jain |
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Designation
: |
Company
Secretary |
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CORPORATE
EXECUTIVES |
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|
Name : |
Mr.
A. Chatterjee |
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Designation
: |
President,
Finance & Accounts |
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Qualification
: |
B.
Com. [Hons.]. FCA |
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Age [Years]
: |
57
Years |
|
Experience
[Years] : |
34
Years |
|
Date of
Appointment : |
18.08.2004 |
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|
|
|
Name : |
Mr. R.S.
Singhvi |
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Designation
: |
President,
Corporate Finance |
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Qualification
: |
B.
Com. [Hons.], CA, CS, LLB |
|
Age [Years]
: |
48
Years |
|
Experience
[Years] : |
26
Years |
|
Date of
Appointment : |
01.05.2006 |
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|
|
|
Name : |
Mr. G. P. Bhatia |
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Designation
: |
President, Corporate |
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Qualification
: |
B.Sc. M.B.A. |
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Age [Years]
: |
61 Years |
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Experience
[Years] : |
36 Years |
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Date of
Appointment : |
01.11.1999 |
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|
|
|
Name : |
Mr. A. Kishore |
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Designation
: |
Chief of Projects |
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Qualification
: |
B.Sc. Chem, Engineering, PGDB and IM |
|
Age [Years]
: |
57 Years |
|
Experience
[Years] : |
36 Years |
|
Date of
Appointment : |
07.07.1999 |
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|
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|
SBU
POLYESTER |
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|
Name : |
Mr. C.V. Khandelwal |
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Designation : |
Chief of Operations, Poly & DTY |
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Qualification
: |
B. Text, MBA |
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Age [Years]
: |
57 Years |
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Experience
[Years] : |
36 Years |
|
Date of
Appointment : |
04.04.2005 |
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|
|
|
Name : |
Mr. Surya Varanasi |
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Designation : |
Chief of Operations |
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Qualification
: |
B. Tech., MS [Chem. Engg.] Diploma in Systems Management |
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Age [Years]
: |
52 Years |
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Experience
[Years] : |
31 Years |
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Date of
Appointment : |
17.07.2006 |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 30.06.2008
|
Category
of Shareholder |
No. of Shares |
Percentage of
Holding |
|
Shareholding of Promoter and Promoter Group2 |
|
|
|
Indian |
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|
|
Individuals/ Hindu Undivided Family |
51250116 |
36.27 |
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Foreign |
|
|
|
Individuals (Non-Residents Individuals/Foreign
Individuals) |
961724 |
0.68 |
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Bodies Corporate |
43288057 |
30.64 |
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Public shareholding |
|
|
|
Institutions |
|
|
|
Mutual Funds/ UTI |
8566827 |
6.06 |
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Financial Institutions / Banks |
2886490 |
2.04 |
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Insurance Companies |
4006850 |
2.84 |
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Foreign Institutional Investors |
13625705 |
9.64 |
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Non-institutions |
|
|
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Bodies Corporate |
7618554 |
5.39 |
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Individuals |
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|
|
Individuals -i. Individual shareholders holding nominal share
capital up to Rs 0.100 Million |
7344164 |
5.19 |
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ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100
Million |
1747437 |
1.24 |
|
GRAND TOTAL |
141295924 |
99.99 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Cotton, Synthetic and Blended Yarn. |
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Products : |
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Exports : |
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Countries : |
Algeria, Iran,
Madagascar and Latin American Countries |
PRODUCTION STATUS
[As on 31.03.2007]
|
Particulars |
Unit |
Licensed
Capacity |
Actual
Production |
|
Draw Texturised
Yarn |
TPA |
Delicensed vide notification no. 477
(E) dated 27th July, 1991 and press note No 1 (1998 series) dated 8th
June, 1998. |
32025 |
|
Polyester Staple
Fibre |
TPA |
|
263550 |
|
Polyester Chips |
TPA |
|
52500 |
|
Polyester
Filament Yarn |
TPA |
|
259000 |
|
Particulars |
Unit |
|
|
Actual
Production |
|
Draw Texturised
Yarn [DTY] |
MT |
|
|
39130 |
|
Polyester Staple
Fibre [PSF] |
MT |
|
|
133714 |
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Polyester
Filament Yarn [PFY] |
MT |
|
|
177126 |
|
Polyester Chips |
MT |
|
|
22772 |
GENERAL
INFORMATION
|
No. of Employees : |
800 |
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Bankers : |
v Bank of India v HDFC Bank Limited v ICICI Bank Limited v IDBI Bank Limited v State Bank of India v State Bank of Indore v Punjab National Bank v Oriental Bank of Commerce v State Bank of Bikaner & Jaipur v Axis Bank Limited |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Financial Institution : |
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|
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Auditors : |
|
|
Name : |
S.R.
Batliboi & Company Chartered Accountant |
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|
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
185,000,000 |
Equity Shares |
Rs. 10/- each |
Rs.1850.000 millions |
Issued and Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
131827284 |
Equity Shares |
Rs. 10/- each |
Rs. 1318.273 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
131827284 |
Equity Shares |
Rs. 10/- each |
Rs. 1318.273 Millions |
|
|
Less: Allotment money in arrears in respect of 6183 equity shares |
|
Rs. 0.010 Million |
|
|
Total |
|
Rs. 1318.263 Millions |
Notes :
Of the above :
- 325200 equity shares of Rs. 10/- each issued as fully paid up
pursuant to contracts for consideration other than cash.
- 22927269 equity shares of Rs. 10/- each allotted as fully paid up bonus
shares by capitalistion of securities premium account.
- 35180304 equity shares of 10/- each, allotted against 4397538 Global
Depository Receipts, each comprising of 8 underlying fully paid up equity
shares of Rs. 10/- each
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
1318.263 |
1318.257 |
1318.238 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5272.855 |
5356.733 |
5433.846 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6591.118 |
6674.990 |
6752.084 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8768.910 |
5609.375 |
5560.059 |
|
|
2] Unsecured Loans |
648.763 |
0.000 |
205.260 |
|
|
TOTAL BORROWING |
9417.673 |
5609.375 |
5765.319 |
|
|
DEFERRED TAX LIABILITIES |
1900.382 |
1769.762 |
1623.529 |
|
|
|
|
|
|
|
|
TOTAL |
17909.173 |
14054.127 |
14140.932 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
17186.398 |
11025.940 |
12124.183 |
|
|
Capital work-in-progress |
295.941 |
3470.765 |
577.171 |
|
|
Expenditure During Construction Period |
0.000 |
790.660 |
475.448 |
|
|
|
|
|
|
|
|
INVESTMENT |
372.506 |
489.793 |
650.553 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2866.421
|
1272.536
|
3411.994 |
|
|
Sundry Debtors |
833.703
|
679.317
|
928.574 |
|
|
Cash & Bank Balances |
177.436
|
101.567
|
202.921 |
|
|
Other Current Assets |
370.562
|
260.713
|
144.606 |
|
|
Loans & Advances |
2012.594
|
904.908
|
565.518 |
|
Total Current Assets |
6260.716
|
3219.041
|
5253.613 |
|
|
Less
: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
5955.330
|
4158.978
|
4225.318 |
|
|
Provisions |
251.058
|
783.094
|
721.263 |
|
Total Current Liabilities |
6206.388
|
4942.072
|
4946.581 |
|
|
Net Current Assets |
54.328
|
(1723.031)
|
307.032 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
6.545 |
|
|
|
|
|
|
|
|
TOTAL |
17909.173 |
14054.127 |
14140.932 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
20116.839 |
18709.074 |
19044.175 |
|
|
Other Income |
607.842 |
627.623 |
|
|
|
Total Income |
20724.681 |
19336.697 |
|
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
342.773 |
671.772 |
1064.904 |
|
|
Provision for Taxation |
136.379 |
153.433 |
362.825 |
|
|
Profit/(Loss) After Tax |
206.394 |
518.339 |
702.079 |
|
|
|
|
|
|
|
|
Earnings in Foreign Currency : |
|
|
|
|
|
|
Export Earnings |
2122.166 |
2478.414 |
|
|
|
Other Earnings |
76.761 |
142.270 |
|
|
Total Earnings |
2198.927 |
2620.684 |
1447.559 |
|
|
|
|
|
|
|
|
Imports : |
|
|
|
|
|
|
Raw Materials |
4503.903 |
4066.700 |
|
|
|
Stores & Spares |
60.463 |
67.719 |
3772.657 |
|
|
Capital Goods |
2297.485 |
1269.261 |
|
|
Total Imports |
6861.851 |
5403.680 |
3772.657 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Purchase of goods for resale |
261.101 |
1621.907 |
|
|
|
Raw Material Consumed |
16624.895 |
11095.060 |
|
|
|
Personnel Expenses |
394.089 |
356.888 |
|
|
|
Operating and other Expenses |
2844.759 |
2397.868 |
2042.669 |
|
|
Increase/(Decrease) in Finished Goods |
[1326.502] |
2302.586 |
|
|
|
Difference of excise duty on stocks of
finished goods and waste |
119.187 |
[384.941] |
|
|
|
Financial Expenses |
396.306 |
294.932 |
|
|
|
Depreciation & Amortization |
1068.073 |
980.625 |
|
|
Total Expenditure |
20381.908 |
18664.925 |
2042.669 |
|
%20LIMITED%20-%20Toyota%2028-Aug-2008_files/image003.gif){kind=small}
%20LIMITED%20-%20Toyota%2028-Aug-2008_files/image004.gif){kind=small}
%20LIMITED%20-%20Toyota%2028-Aug-2008_files/image005.gif){kind=small}
SUMMARISED RESULTS
|
PARTICULARS |
|
|
31.03.2008 |
|
Type |
|
|
Full
Year |
|
Sales
Turnover |
|
|
25427.900 |
|
Other
Income |
|
|
1358.500 |
|
Total
Income |
|
|
26786.400 |
|
Total
Expenditure |
|
|
24403.500 |
|
Operating
Profit |
|
|
2382.900 |
|
Interest |
|
|
838.500 |
|
Gross
Profit |
|
|
1544.400 |
|
Depreciation |
|
|
1473.300 |
|
Tax |
|
|
12.600 |
|
Reported
PAT |
|
|
30.200 |
|
Dividend
(%) |
|
|
100.000 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2008 |
|
Type |
|
|
1st
Quarterly |
|
Sales
Turnover |
|
|
8012.600 |
|
Other
Income |
|
|
225.700 |
|
Total
Income |
|
|
8238.300 |
|
Total
Expenditure |
|
|
7933.100 |
|
Operating
Profit |
|
|
305.200 |
|
Interest |
|
|
241.300 |
|
Gross
Profit |
|
|
63.900 |
|
Depreciation |
|
|
374.900 |
|
Tax |
|
|
2.100 |
|
Reported
PAT |
|
|
[208.100] |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
1.39 |
1.06 |
1.29 |
|
Long Term Debt Equity Ratio |
1.25 |
1.02 |
1.23 |
|
Current Ratio |
0.64 |
0.67 |
0.83 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.93 |
1.08 |
1.15 |
|
Inventory |
10.54 |
9.07 |
5.70 |
|
Debtors |
28.51 |
26.14 |
26.91 |
|
Interest Cover Ratio |
1.59 |
1.85 |
4.21 |
|
Operating Profit Margin (%) |
7.88 |
7.27 |
11.89 |
|
Profit Before Interest and Tax Margin (%) |
2.92 |
2.60 |
7.44 |
|
Cash Profit Margin (%) |
5.64 |
5.69 |
8.19 |
|
Adjusted Net Profit Margin (%) |
0.68 |
1.02 |
3.74 |
|
Return on Capital Employed (%) |
4.88 |
4.95 |
13.52 |
|
Return on Net Worth (%) |
2.72 |
4.01 |
15.55 |
LOCAL AGENCY
FURTHER INFORMATION
HISTORY
Incorporated in Apr.'86, Indo Rama Synthetics (India) (IRSIL)
commenced business in Nov.'86. Promoted by M L Lohia and A P Lohia to
manufacture synthetic yarn, PSF and POY.
In Sep.'93, IRSIL issued FCDs to part-finance its Rs 55.500 Millions
expansion-cum-backward integration project to manufacture partially oriented
yarn (POY) and polyester staple fibre (PSF) at Butibori, near Nagpur which
commenced commercial production in Mar.'95. Through de-bottlenecking, polyester
production touched 810 tonnes per day. This is slated to reach 860 TPD by
2002-03.
IRSIL has technical collaborations with Chemtex International, US, and M/s
Dupont, US, and barmag, Germany, for the POY and polyester chip projects; and
Toyobo, Japan, for the PSF project. IRSIL exports its products to the US,
Germany, France, Belgium, etc. The company's 100% EOU at Pithampur has been
awarded the ISO 9002 certification.
The new plant for manufacture of PSF at Nagpur is being implemented and
production is expected to commence on 2004-05. After commissioning the capacity
of Polyster Staple Fibre would be 450,000 tpa from the present 300,000 tpa.
This expansion is being executed in partnership with Zimmer AG, Germany.
The company successfully commissioned the mini expansion for PFY/FDY capacity
by 70 tonnes per day (25000 p.a and DTY capacity by 27 tonnes per day (9800
tonnes p.a). The total cost of the project was Rs.480 Millions. This project
was funded by DEF Euro loan of Rs.260 Millions, SBI Yen loan of Rs.170 Millions
and the rest through internal accruals.
As a restructuring measure the company has de-merged its spun yarn business
into a separate company, Indo Rama Textiles Limited while retaining its
polyster business with itself. This de-merger was done after securing necessary
approvals from the Shareholders of the company. Pursuant to this de-merger
shareholders were allotted 20 shares in IRTL for every 100 shares held in the
company while continuing to hold 80 shares in the company.
As a step towards leveraging information for value creation, the Company has
re-built its information backbone around an ERP application by implementing SAP
R/3 package that links all business activities of the organisation. The Company
also plans to focus on strategic IT initiatives like E-enabling, supply chain
management and CRM. It is exploring new markets in Latin America, Argentina,
Columbia and Venezuela.
During 2005-2006, the company has taken up expansion of Polyester production
capacity from 800 tonnes per day to 1600 tonnes per day for both Polyester
Staple Fibre and Partially Oriented Yarn. The expansion is expected to
completed in a phased manner from June, 2006 onwards. After this expansion the
Polyester capacity of the Company will increase to around 6,00,000 tpa. at a
single location in Butibori, Nagpur.
The companies production capacity of Draw Texturised Yarn, Draw Twisted Yarn,
Polyester Staple Fibre, Polyester Chips and Polyester Filament Yarn stood at
32025 tpa, 132300 tpa, 52500 tpa and 126000 tpa respectively.
Expansion
of Capacity:
The Company during the year successfully implemented the expansion of its two
Continuous Polymerisation (CP) Plants of 400 tpd, each - one for Polyester
Staple Fibre (PSF) production and another for Partially Oriented Yarn (POY)
production. The entire project costing of Rs.7636 million net of taxes and
duties was completed within the budgeted cost. While the Commercial Production
in new POY Lines commenced w.e.f. 1st November, 2006, the Company commenced
Commercial Production in the new PSF Plant from 30th March, 2007.
Post-expansion the Polyester manufacturing capacity of the Company has
increased to around 600,000 tpa at a single location in Butibori, Nagpur While
this expansion of capacity shall foster the advantages of scale, latest
technology, superior quality and higher productivity, it shall also pose the
challenges of driving down costs, reaching newer customers and aggressively
building-up market share.
Review of operations:
The year was volatile for the Polyester industry with pressures on both the
topline as well as the bottom line. Sustained high costs of raw-material (PTA
and MEG) prices, scarcity of availability of key raw materials and high input
costs like Power continued to put pressures on the Polyester production cost.
In order to support the industry during this period of rising input costs as
well as interest rates and tight liquidity, it was consciously decided not to
pass on the full impact of input costs increases to the customers. This has
adversely impacted the profitability of the Company for the year.
The Company's cost competitiveness, product quality, increased market
penetration and product development efforts, strong customer bonding and
competitive pricing approach have helped the Company increase its net sales by
7.5% compared to the last year. The Directors continue to remain bullish on the
future outlook of Polyester industry in India.
The Company achieved gross sales of Rs.21569 million and Net Sales of Rs.20117
million representing an increase of 2.6% and 7.5%, respectively as compared to
the last year. The Company's interest costs rose during the year by more than
38% primarily due to the commencement of the charge of the Project Loans to the
profit and loss account, increase in the rate of interest and higher level of
working capital deployed during the year pursuant to the completion of the
expansion project. Interest cost as a percentage to Net Sales remained at 1.8%
in the Financial Year 2006-07 as compared to 1.4% in the last Financial
Year.
The exports remained a major thrust area and Company's export performance has
been significant during the year with a turnover of Rs.2122.17 million as
against Rs.2478.41 million in the previous year. The Company has bagged the
Synthetics & Rayon Textile Export Promotion Council (SRTEPC) Export Awards
for its export performance for the year 2005-06 as under:-
* Gold Trophy for best overall export performance in the category of Man-made
Fibre Yarn Category.
* Gold Trophy for best Export Performance in the Category of Exports to 'Focus
LAC countries.
Merger
of Captive Power Generating Unit with the Company:
As already reported, the Company has made strategic investments of Rs.100
million in the equity capital of Indo Rama Petrochemicals Limited (IRPL), which
is in advanced stage of completing a Coal Fired Thermal Power Project to
produce 30 MW (2x15 MW) electrical power, 58 tonnes per hour process steam and
16 M3 per hour of process DM Water at Butibori. IRPL has already commissioned
Unit 1 of 15 MW Power in December, 2006 and has commenced Commercial Production
from 1st February, 2007. The 2nd Unit is likely to undergo Commercial
Production shortly. In order to maximise value creation for the shareholders
for both the companies, the Board of Directors of both the companies decided to
merge IRPL with the Company, through a Scheme of Merger, under the provisions
of Section 391 - 394 of the Companies Act, 1956, subject to the completion of
necessary legal formalities. The merger shall help the Company lower the cost
of power for its manufacturing process, facilitate saving of losses under
various cost elements and enhance the value proposition for the company. The
company engaged the services of a leading firm of Chartered Accountants and a
globally reputed Accounting firm for the valuation of businesses of both the
companies. Based on their reports, the Board of Directors of the Company
decided the swap ratio for exchange of shares in IRPL with that of IRSL as
10:16, meaning thereby that the shareholders in IRPL - for every 10 (ten)
shares held in IRPL - would receive 16 (sixteen) shares of IRSL with a
consequent reduction and cancellation of their shares in IRPL upon issue and
allotment of shares in IRSL as per the swap ratio subject to the completion of
necessary formalities and approvals as applicable.
Registered Office:
The Company had its Registered Office shifted from the State of Madhya Pradesh
to its plant at Butibori in the State of Maharashtra after obtaining
confirmation from the Company Law Board (Western Region Bench), Mumbai and also
upon completion of other related formalities in this regard.
Project under Clean Development
Mechanism (CDM):
Green House Gas (GHG) emission, which is the key responsible factor in global
warming, was addressed in Kyoto Protocol. Developing countries now have an
incentive to participate in GHG emission reduction initiative through Clean
Development Mechanism (CDM) - one of the flexible mechanisms of Kyoto Protocol.
Adoption of energy efficiency measures in production is one of the means to
reduce GHG emission. The Company has taken up several such measures, and based
on this principle, two CDM projects were taken up at Butibori plant. The
projects have resulted in 10,000-15,000 t/y of carbon-dioxide emission
reduction, which translates into carbon credit for the Company. The CDM
projects are in advanced stages, and are expected to be registered at UNFCCC
(United Nation Framework Convention for Climate Change) shortly. There is a
significant demand of carbon credits in the developed world due to their commitment
to reduce GHG emission through Kyoto Protocol. Transaction of the credits
expected to be earned by the Company would result in earning carbon credit
revenue for the next 10 years.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT
Global Outlook:
The global production of Polyester continued to rise in 2006 and touched 74.7
Million Tonnes from 71.1 Million tonnes - an increase of 5.1% over 2005. The
Man Made Fibres Segment continued to strongly contribute to the rising output
volumes.
Fibrewise Outlook:
Cotton:
Global Cotton consumption recorded a rise of 4.9% at 26.5 Million Tonnes in
2006 exceeding the production for the year. The estimated production is approx
25.4 Million Tonnes. Higher demand from China and India resulted in the
increased consumption in a major way.
Man Made Fibers:
Man Made Fibres (MMF) recorded an increase in production by 6.2% in 2006 over
2005. In volume terms the output moved to 41.2 Million Tonnes from 38.8 Million
Tonnes. This translates MMF Share to 55% on total fibre base. In the year 2005,
the share of MMF was 54%. Within Man Made Fibres, Polyester Fibre Segment has
been on the rise and the trend continued in 2006 also. In the year 2006, the
share of Polyester in MMF was 67%, up by 2% from the year 2005.
Polyester Fibre (all segments) including textile and industrial yarns as
well as staple fibres have made significant contribution to the remarkable
growth. The production increased to 27.7 Million Tonnes in 2006 from 25.4 Million
Tonnes in 2005 - a remarkable growth of 8.4%. While Staple fibre grew to 11.7
Million Tonnes by 7.9%, filament rose by 8.8% to 16.0 Million Tonnes. The
soaring production in Asia espacially in India and China contributed to the
increased output. However, the contribution from Europe and the US decliend by
about 7%.
The production of other fibers like Polyamide rose by 2.1% to 4.1 Million
Tonnes, Polypropylene by 2.5% to 3.1 Million Tonnes while Acrylic declined by
3.0% to 2.5 Million Tonnes.
It is evident that the production of Polyester is steadily growing and
improving the share in the overall fibre base. The share in terms of percentage
has risen from 35.6 to 37.0 from 2005 to 2006 in all fibres. Today China,
India, Thailand, Korea and Taiwan accounts for more than 75% of the production
and China commands more than 50% of the total production.
Indian Fibre Outlook:
The year 2006 marked the significant arrival of Indian Textile Industry on the
world Map. The entire Textile value chain from Raw Fibre to Garmenting saw the
healthy trend of increased consumption and addition of value to the
process.
Some of the Key growth pointers showing positive trends of Indian Textile
Industry are :-
* A strong fibre raw material base with growing production
* The exports touching more than US 17 Billion in the current year
* The all round growth of exports both in terms of US$ ( 6.47%) and INR
(11,43%) in Readymade garments, Cotton Textiles, Man-made Textiles and
Silk
* Textile Vision setting a target of over US$ 50
Billion by 2010
* Large scale downstream investment as in weaving and Processing
A look at the production of Fabric and Yarns over the last three years
strengthen the faith of a robust build up of the Textile Industry in India.
Today, in India, the total estimated production of fibres is
7.2 Million Tonnes. The Cotton and Polyester fibre respresent, together approx
94% of the total production base, leaving the other fibres like Viscose,
Polyamide etc. almost insignificant. In contrast, the domestic consumption
stands at around 5.9 Million Tonnes, of which Cotton and Polyester respresent
93% of the total consumption. Polyester, as a growing fibre, represents 31.5%
of the total fibre production and 33% of the total consumption in India.
This year witnessed major expansion in Polyester fibre by Majors and New
entrants. The capacity expansion is in line with the increased exports of
Polyester based garments fuelling domestic demand. The total Polyester capacity
now stands at 2.60 Million Tonnes as compared to 1.95 Million Tonnes in the
year 2005, an increase of 33%. The year 2007-08 is likely to scale up to around
3.3 Million Tonnes by 2007-08 after becoming fully operational.
Total Polyester consumption in 2006 increased from 1.68 Million Tonnes to an
estimated 1.96 Million Tonnes, posting a healthy growth of 16%. This is in
contrast to the growth of a marginal 2.5% recorded in the year 2005.
OPPORTUNITIES AND THREATS:
Opportunities
* The economy growing at 8-9% GDP consistently is positive and the overall
economy outlook is stable.
* The outlook for the Textile and Clothing sector remains stable. The sector
aided by the dismantling of the quotas from the year 2005 generated increased
exports in the years 2005 and 2006 and is expected to continue the trend in the
year 2007. It is estimated that the year 2007 is likely to witness US$ 20
Billion mark in Textile exports.
* The sensivity of the sector towards Government Policies is high, the
direction being now favourable, large scale investments in Spinning, Weaving,
Garmenting, Knitting and Processing are taking place and are also planned up
for future.
* The per capita household consumption of textile and clothing has grown around
4-5% from 2004 onwards as a result of higher disposable income and the growing
middle class population in India.
* Significant Value added Exports, with an average better realization than
China and Pakistan, India has emerged as a large value added Player
* A US$ 50 Billion Target of Exports and US$ 40 Billion Domestic market dream
in 2010 can be realised only with the rapidly growing Polyester fibre due to
the limited avialability of Cotton Fibre. It is estimated that quantity greater
than 5.0 Million Tonnes Polyester would be required to achieve the desired
target. A great opportunity for Polyester segment is there to grow by leap and
bounds.
* The high prices of Cotton, declining raw material prices of PTA, MEG
resulting in low price of Polyester would result in higher
competitiveness.
Threats:
* The Industry growth is mainly dependent upon the downstream growth like
that of Spinning, Weaving and Garmenting. The cyclic nature also adds
inconsistency in the overall performance.
* The processing still remains the weakest link in order to produce a
high value fabric or garments. Though some investments are planned to take
place in this area, but still a lot of improvements are required to bring the
sector to a world class status.
* Volatility in Crude Oil prices may have an adverse impact on the
consistency of Polyester prices.
* 2006-07 witnessed large capacities, which created a temporary demand supply
imbalance. This has resulted in low margins. The new capacity addition
absorption may take a year or so.
* Exchange Rate Volatility, Appreciation of Rupee may have adverse affect on
export realisations.
PRODUCTWISE PERFORMANCE:
PFY:
Total sales of POY, FDY and DTY of Rs. 11,605.35 Million were recorded during
the year. Domestics sales increased by 9.9% in value terms compared to last
year Indo Rama has a consolidated market share of 11%.
PSF:
Total sales of PSF of Rs.8,667.54 Million were recorded in the year. Domestic
sales declined by 4.3% in value terms compared to last year Indo Rama has a
consolidated market share of 21%.
SECTOR OUTLOOK:
PFY:
The total installed capacity for PFY is estimated at 1.68 Million Tonnes and is
expected to go up to 2.08 Million Tonnes in the year 2007-08. Most of the major
expansions are already completed. The opening of world trade with no quota has
seen a quantam jump in export of ladies dresses, which are mainly produced out
of PFY. The huge domestic demand due to various applications in Weaving and
Knitting and also of Industrial Yarns segments would result in double digit
growth in the year. The domestic demand is likely to be 10-11 % CAGR. PFY
Contributes around 66% of the total Polyester fibre production.
The estimated production is around 1.50 Million Tonnes in the current year, an
increase of over 39% from 2005-06 and corresponds to 89% operational capacity.
The easy processability and wide spread usage make PFY attractive. Indo Rama
accounts for 16% of the industry's installed capacity.
PSF:
The total installed capacity of PSF is estimated at 0.92 Million Tonnes and is
expected to go up to 1.12 Million Tonnes. The year saw huge capacity additions
by the Industry Majors in expectation of robust downstream industry demand. The
Spindlage addition of around 2.00 lacs per month is currently taking place and
PSF industry sees a huge opportunity to tap the peotential that lies ahead in
terms of quantum. The shortage of Quality Cotton and the relatively high prices
of Cotton make Polyester Staple Fibre attractive.
The estimated production is 0.78 Million Tonnes in the year 2006-07 and
corresponds to 85% of the capacity utilisation-. The increase in production
over the year 2005-06 is about 24%. Indo Rama, today, accounts for 24% of the
installed capacity and, in 2007-08, around 26%.
PSF demand is likely to surge due to huge spindlage expansion on Cotton and
Manmade spindle system across the country To meet the growing exports in Man
Made Textiles category, PSF would be needed. The application of 100% Polyester
Spun yarns has seen a robust growth and with the increased areas of application
in Apparel and Non-Apparel, PSF demand is likely to remain @ 8-10 CAGR.
OUTLOOK FOR INDO RAMA:
Indo Rama doubled its capacity from 800 TPD to 1600 TPD in the current year and
is in line with anticipated robust domestic demand growth in the future. The
Company sees a great growth potential for both of its main products, PFY and
PSF and hence/has positioned itself as a Quality Supplier right from the
beginning,; The Wide Spread Commodity Products, Customized Products as per the
requirement of customer, Technical Evaluation of the performance on the shop
floor and Customer Friendly sales and marketing policies enabled Indo position
itself as a preferred Supplier in an extremely competitive market.
The Value for money approach, Customer Learning workshops helped Indo Rama to
retain more than 90% of the customers in its fold during the year.
Indo Rama also enfered the Export Market and was an instant success due to its
high and consistent quality of products in PFY, PSF. Today, Indo Rama exports
to South East Asia, Middle East, Africa, Europe and Latin America. The exports
enabled Indo Rama to balance the Domestic Demand-Supply scenario. The
organisation is now seen as a leading Polyester Exporter with great Emphasis on
Quality and Service.
PFY :
The continuous improvements in quality and better realisations for the
customers are the key focus areas for Indo Rama. The development of new
products is a priority and, in the current year, Indo Rama developed new
deniers, such as 505/96, 120/108 and 360/34 used in suiting, shirting and Dress
Material applications. The Company expects to gain better market share from the
present 11% to 14%. Indo Rama, after establishing its product range in semidull
market, looks forward to enter the Speciality deniers, on a select basis, to
add to the product basket.
PSF:
Indo Rama currently maintains 21% market share and through sustainable measures,
new products like PSF for Sewing Threads SHT projects to take market share to
24% in the year 2007-08. Indo Rama PSF has a reach of entire India Customer
base and will increase the base by sound customer Policies.
Risk and Concerns:
* The huge capacity expansions by Polyester producers have created a short term
demand supply imbalance resulting in loss of margins and is an area of
concern.
* The Company is mostly in a commodity trade and is subject to intense
competition of commercial offerings by competitors. It may result in sales
loss.
* China's ambitious and structured growth of Textiles and Clothing Exports may
result in loss of exports from India, which in turn, may have impact on
domestic growth of fibres. This can affect the sale prospects of the
Company.
* The Company plans to exports currently 15-20% of the production and is
subject to currency exchange rate fluctuation and can affect the export
realisation to that extent.
* The abnormal fluctuations in raw material costs from time to time may erode
price competitiveness and can adversely affect the Company's
profitability.
Indo Rama aims to. address all the above risks and concerns, through well timed
strategy and business decisions. The domestic consumption, even after factoring
all the above concerns, is likely to grow due to its wide usage applications
and demand raised by final consumer. The recently completed expansion project
will add to scale and is aimed to becoming cost competitive and reach new
customers, through technology innovation and quality products.
INTERNAL CONTROL SYSTEM AND THEIR
ADEQUACY:
Indo Rama is an organisation where the interest of customer comes first. It is
an enterprise, which Is truly dedicated to the cause of customers. All the
Policies are drawn in a most comprehensive way and in a most transparent
manner.
The core activities of Finance, Procurement, Logistics & Warehouse and
IT-SAP have been already outsourced to World Renowned Organisation,
Accenture.
Some of the Systems that make Indo Rama a class apart, which are in place and
are honoured by each and every employee of Indo Rama:
Independent Credit Control System to assess the financial risk of
customers.
* Independent Third Party Internal Audit System currently outsourced to a
leading firm of Chartered Accountants.
* ISO9001:2000 Accreditation.* ISO14001 for Environmental Management System.*
OEKO Tex Certificate for Human cological balance.
In the areas of Surrounding Environment, Safety and Health, Indo Rama has taken
a further step to implement Occupational Health and Safety Management System as
OSHAS-18001 for the year 2006-07.
The various strategic intiatives and interventions on water conservation.
Excellent Management of Solid and Hazardous waste. The company has been
selected as one of 'GREEN COMPANY' in India by FICCI, New Delhi.
The corporate governance has been a sort of achievement of the Company. The
creation of ethical workplace with seamless boundary has resulted into a
working atmosphere whereby Indo Rama looks beyond the physical boundaries to
reach its shareholders and extended customers. The solid foundation of
Corporate Governance has raised the level of efficiency and the approach to
work for a social cause. The CSR has taken up a front seat in organisation
vision, policy perspectives and business operations.
Indo Rama always believes in keeping its manpower talent intact. The management
always emphasises on positive communication, sharing and building business
through knowledge and rewarding.
Indo Rama always believes in doing the business, through leadership, where
systems and processes are given utmost importance and achieves continuous
business excellence.
Contingent Liabilities not provided for
·
Excise duty demands on the difference between the price charged to
domestic customers and physical exporters in respect of deemed export sales
under advance license – Rs. 6.461 Millions
·
Show cause received from Excise Authorities in respect of down gradation
of PFY and special discounts passed to customers Rs. 14.125 Millions.
·
Custom duty demand in respect of import of PTA on the basis of valuation
as per contemporaneous imports nil
·
Differential duty demand on DTY dispatches claimed under Exemption
Notification Rs. 256.824 Millions
·
Disallowance of Service Tax credits and other demands Rs. 24.523
Millions
·
Excise duty demand on scrap, packing materials, sludge; usage of Cenvat
for payment of National Calamity Contingent Duty [NCCD]; etc Rs. 47.248 Millions
- Demand made
by Sales Tax Authorities in respect of sale of scrap and others Rs. 5.241
Millions
- Demand made
by Income Tax Authorities for the Assessment Years 2000-01 to 2004-05 in
respect of disallowances of various expenss Rs. 70.033 Millions
- Various other
claims made against the Company by ex-employees, vendors, customers and
other authorities not acknowledged as debts Rs. 40.163 Millions
- Cases pending
with Labour Courts
Based on the favourable decisions in similar cases / legal opinions
taken by the Company / discussions with the solicitors etc. the company
believes that it has good case in respect of al the items listed above and
hence no provision thereagainst is considered necessary.
Subject is in trade terms with:
v
Aksa Stick-On Private Limited
v
Autostrap India
v
B N Enterprises
v
Bindal Packaging
v
Burhani Wire Product
v
Capitol Machine Tools Private
Limited
v
Choudhary Packagers
v
Crystal Chemicals
v
Excel Tubes and Cones
v
Global Packaging Products
v
Gondwana Packers (Private)
Limited
v
Hariwansh Packaging Products
v
Hindustan Wiremesh Private
Limited
v
Ideal Wrapper
v
K M Enterprises (Silvassa)
v
Kamal Packaging (Private)
Limited
v
Kochar Industries
v
Kochar Packaging
v
Mangal Singh Brothers Private
Limited
v
Modern Construction
v
Narayani Industries
v
Narayani Paper Industries
v
P. Conitex
v
Pooja Packwell (India) Private
Limited
v
S K Label Systems (Private)
Limited
v
Safety Packers
v
Sharda Paper Kraft
v
Sharda Paper Products Private
Limited
v
Shree Corrugators & Packers
v
Shree Gajanand Plastics
(Private) Limited
v
Siri Ram Filteration &
Engineering Company
v
Super Industries
v
Sureka Paper Containers Private
Limited
v
Suresh Polymers Private Limited
v
Taj Traders
v
Tejas Polymers
v
Tex Tube Manufacturing Company
Private Limited
v
Tirupati Packo Plast
v
Unique Wire Industries
v
Utkarsh Packers Private Limited
Fixed Assets:
- Land
(Freehold and Leasehold)
- Roads &
Buildings
- Plant &
Machinery
- Furniture
& Office Equipments
- Vehicles
As Per Website Details
Awards & Company profile
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Indo Rama has won
several prestigious awards for exports from its first year of operations - an
achievement repeated every successive year. Their impressive track record can
be gauged from the fact that they have been awarded with more honours than many
other textile companies. Here's a look at some of the awards.
|
Year |
Category |
Awards |
|
2004-05 |
National Award for Excellence in Water Management 2004 |
CII Water Award |
|
2004-05 |
Mr. O.P. Lohia's outstanding contribution to the State of Madhya
Pradesh |
Udyog Ratna Award |
|
2003-04 |
SRTEPC Special Award |
Silver |
|
|
Man-Made Fibre Yarn Blended with Natural Fibre |
Gold |
|
|
Viscose Spun Yarn |
Gold |
|
2002-03 |
SRTEPC Special Award |
Silver |
|
|
Man-Made Fibre Yarn Blended with Natural Fibre |
Gold |
|
|
Focus Africa Countries |
Gold |
|
2001-02 |
SRTEPC Special Award |
Silver |
|
|
Man-Made Fibre Yarn Blended with Natural Fibre |
Gold |
|
|
Highest Exports to Latin American Countries |
Gold |
|
2000-01 |
SRTEPC Special Award |
Silver |
|
|
Man-Made Fibre Yarn Blended with Natural Fibre |
Gold |
|
|
Non-Traditional Markets |
Gold |
|
1999-00 |
SRTEPC Special Award |
Gold |
|
|
Polyester Spun Yarn |
Gold |
|
|
Man-Made Fibre Blended Yarn |
Gold |
|
|
Man-Made Fibre Yarn Blended with Natural Fibre |
Gold |
|
|
Non-Traditional Markets |
Gold |
|
|
Federation of Indian Export Orgns |
Certificate |
|
1998-99** |
Man-Made Fibre Yarn Blended with Natural Fibre |
Gold |
|
|
Non-Traditional Markets |
Gold |
|
1997-98 |
SRTEPC Special Award |
Gold |
|
|
Man-Made Staple Fibre |
Gold |
|
|
Polyester Filament Yarn |
Gold |
|
|
Ministry of Commerce |
National Export Award |
|
|
Federation of Indian Export Orgns. |
'Niryat Shree' |
|
|
Man-Made Fibre Blended Yarn Gold |
Gold |
|
1996-97 |
SRTEPC Special Award |
Gold |
|
|
Man-Made Staple Fibre |
Gold |
|
1995-96 |
SRTEPC Special Award |
Gold |
|
|
Viscose Spun Yarn |
Gold |
|
|
Polyester-Cotton Blended Yarn |
Gold |
|
|
Ministry of Commerce |
National Export Award |
|
|
Federation of Indian Export Orgns. |
'Niryat Shree' |
|
1994-95 |
SRTEPC Special Award |
Gold |
|
|
Viscose Spun Yarn |
Gold |
|
|
Polyester-Cotton Blended Yarn |
Gold |
|
1993-94 |
Polyester-Cotton Blended Yarn |
Gold |
|
1990-91 |
Viscose Spun Yarn |
Gold |
|
1989-90 |
Viscose Spun Yarn |
Gold |
Genesis
Indo Rama Synthetics (India) Limited was established in India in 1989 and today is an over Rs. 22.18 billion corporation with sharp focus on quality, cost and delivery. The company has emerged as a lean, agile and supremely fit corporation in the face of economic liberalization and globalization.
The company benchmarks itself against the best in the world and sets global standards for itself. Indo Rama is distinguished by its ability to work smart and as a place that empowers people and encourages them to take initiatives. Visionary individuals who can seize emerging market opportunities ahead of their competition are the ones who form the nucleus of this organization. Their aim is to enhance business results by building self - motivated and self - managed teams who pursue the path of excellence and explore their potential thereby creating greater synergies
Indo Rama
Synthetics (India) Limited
Indo Rama Synthetics (India) Limited was established in India in 1989 with a commitment to quality and customer satisfaction.
It’s exposure to international operations gives it a competitive edge in adherence to global standards. The company boasts of covering diverse fields of Polyester (staple fibre, filament yarn, and FDY, DTY and textile grade chips).
In 1995 the Integrated Polyester Complex at Butibori, near Nagpur in Maharashtra in technical collaboration with Dupont of USA was set up for polymer production and partially oriented yarn (POY) and Toyobo of Japan for polyester staple fibre (PSF).
Indo Rama Synthetics (India) Limited is the country’s largest dedicated polyester manufacturer (at a single location), with an Integrated Manufacturing Complex at Butibori, near Nagpur in Maharashtra producing Polyester Staple Fibre (PSF), Polyester Filament Yarn (PFY – POY/DTY), Draw Textured Yarn (DTY) and Textile grade Chips.
As part of the expansion process, the Butibori plant has now doubled its capacity of both PSF and PFY. The expansion has been executed in alliance with Zimmer AG, a leading technology provider from Germany. Today, the Butibori plant produces 6, 00,000 metric tones of PSF, POY, FDY, DTY and fibre grade chips. The expansion was completed with a project cost of Rs. 9000 Millions over a period of 2.5 years.
During December 07, Indo Rama Petrochemicals Limited is merged with Indo Rama Synthetics (India) Limited With this merger, Power business has now become a separate revenue segment of the company. Excess power available from the 30 MW coal fired power plant, after captive consumption, is being sold to the Maharashtra grid.
Indo Rama has in place ISO-9001 (2000) for highest standard of Quality Management System (QMS), ISO-14001 (2004) for Environment Management System (EMS) and OEKO Tex certificate to meet Human Ecological requirements. Implementation of OSHAS-18001 (Occupational Safety & Health) was taken up in financial year of 2006-07.
Forbes magazine has recognized the group - Indo Rama Synthetics (India) Limited and associate companies based in South-East Asia - as one of the ‘100 Best Small Companies in the Emerging Markets’.
Indo Rama Synthetics (India) Limited, in agreement with Pegasus Global Limited of Thailand established a Joint Venture (JV) in the USA. The JV, under the name of Star Pet Inc., acquired an operational Integrated Bottle-Grade Pet Resin manufacturing facility with an installed capacity of manufacture of around 70,000 tonnes (150 million pounds) per annum (tpa) of Polyester from Tiepet International Limited of North Carolina, USA. The acquisition was, structured by Management Consultants KPMG Atlanta on financial aspects and Cadwalder NY on legal and environment issues.
Indo Rama has a dynamic workforce of about 3,000 employees. The organization puts forth the growth of its employees in terms of their welfare. Continuous programmes for its staff in training and healthcare are provided at regular intervals. Housing colonies have been built for its employees at Nagpur. A school at Butibori imparts quality education both for the employees’ children as well as the citizens of Nagpur.
Every step that the company takes helps it get closer to its objective of building an organization, which is customer-focused, innovative and where quality is the bottom-line.
Mr. OP Lohia is heading the Board of Directors and the organization as Chairman and Managing Director.
Indo Rama
Synthetics (India) Limited EBIDTA up by 125% in Q1 FY 2008-09
New Delhi, July, 29, 2008
- a Net sales
of Rs.7901.700 Millions, a jump of 15%
- Operating
Profit Before Tax reaches Rs. 345.900 Millions
- Operating Cash
Profit up to Rs. 343.800 Millions
- Exports
increased by 55%
Indo Rama Synthetics (India) Limited, the
country’s largest dedicated polyester manufacturer, today announced its Q1
results for the financial year 2008 – 09.
Q1 Results for FY 2008 – 09:
Operating
EBIDTA for the quarter has registered an increase of 125% at Rs.587.200
Millions as compared to Rs.260.400 Millions during the same period last year.
Operating Profit before Tax reaches Rs. 345.900 Millions — against Rs.73.600
Millions during Q1 2007-08, a jump of 370%. Operating Cash Profit rose up to
Rs. 343.800 Millions - an increase of 400% over 68.700 Millions recorded during
Q1 last year.
Net
sales for the quarter stood at Rs.7901.700 Millions, higher by 15% as compared
to Rs.6869.300 Millions in the corresponding quarter. Exports zoomed to
Rs.1564.900 Millions as compared to 1011.600 Millions, recording a growth of
55% in Value terms, a healthy jump of 42% and recorded 24557 MT, over 17278 MT
registered during the corresponding quarter.
Performance
during the quarter has seen better realization and improved margins in spite of
an increase in raw material costs close to 13%. Demand from domestic and
Exports market has shown an upward momentum and with softening of crude oil
prices, coupled with scarcity and rising prices in cotton, the market condition
is expected to be buoyant, going forward.
Commenting
on the Results, Mr. O.P. Lohia, Chairman and Managing Director, IRSL said,
“We
are witnessing healthy demand from both Polyester Staple Fibre and Polyester
Filament Yarn. This has enabled us to improve margins in spite of higher input
prices. We are also enthused with the performance of our power business which
has now begun to contribute strongly to overall results. I look forward to
further improved performance in the coming quarters”
About Indo Rama Synthetics (India) Limited
Indo Rama Synthetics (India) Limited was
established in India in 1992 with a commitment to quality and customer satisfaction.
It’s exposure to international operations gives it a competitive edge in
adherence to global standards. With the recent expansion, Indo Rama’s Butibori
plant has become one of the largest single-location plants in the world,
producing around 6,00,000 tonnes per annum of Polyester Staple Fibers, Filament
Yarns, and Textile grade Chips.
Indo
Rama Synthetics (India) Limited Net sales up by 26.5% in FY’07
o FY07
EBIDTA also up by 34.6%
o Declares
a dividend of 10%
New
Delhi, June 30, 2008: Indo Rama Synthetics (India) Limited, the
country’s largest dedicated polyester manufacturer, today announced its Annual
and Q4 results for the financial year ended March 31, 2008.
Annual
Results for FY 2007 – 08:
Net sales
for the year rose by 26.5% to Rs.25455.200 Millions as compared to Rs.
20116.800 Millions for FY 06 – 07. EBIDTA for the year also registered an
increase of 34.6% at Rs.2382.900 Millions compared to Rs.1770.200 Millions last
year. Clocked PAT of Rs.30.200 Millions for the year, down by 85.4% compared to
last years 206.400 Millions. Exports recorded a phenomenal 69635 MT a growth of
111.15% over the previous years’ 32979 MT.
Q4
Results:
IRSL
Q4 net sales stood at Rs.6441.700 Millions, higher by 5.02% as compared to Rs.
6133.600 Millions in the corresponding period last year.
Commenting
on the Results, Mr. O.P. Lohia, Chairman and Managing Director, IRSL said, “Our performance during the year, especially
in the second half of the year, was impacted by lack luster performance of the
textile Industry which impacted polyester demand and margins. In spite of that
we have registered a healthy top line growth. Polyester demand has been robust
over the first quarter of this fiscal, a healthy change in the environment
today. With robust environ of the textile sector both in domestic and export
sector, and with stable input prices, I believe the polyester industry is in a
sweet spot and poised for strong growth. I look forward to improved
performance, both in top line & bottom line, going forward.” The Board of Directors of the
Company at their meeting held today declared an annual dividend of 10 %, i.e.
Re. 1.00 per equity share. With a growing consumption across all sectors and
with buoyant demand in both domestic and exports of Indian textile, the future
augurs well for strong, cost efficient large-scale polyester producers.
About Indo Rama Synthetics (India) Limited
Indo Rama Synthetics (India) Limited was
established in India in 1992 with a commitment to quality and customer
satisfaction. It’s exposure to international operations gives it a competitive
edge in adherence to global standards. With the recent expansion, Indo Rama’s
Butibori plant has become one of the largest single-location plants in the world,
producing around 6,00,000 tonnes per annum of Polyester Staple Fibers, Filament
Yarns, and Textile grade Chips.
For
further information please contact:
Mr. R
Gurumoorthy Ms.Sunaina
Indo
Rama Synthetics (India) Limited Image Inc.
Mobile:
09873411360 Mobile: 09811645243
gurumoorthy.r@indorama-ind.com
sunaina@image-publicrelations.com
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.43.73 |
|
UK Pound |
1 |
Rs.80.57 |
|
Euro |
1 |
Rs.64.29 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
|
72 |
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 |
|