MIRA
INFORM REPORT
|
Report Date : |
06.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ABHISHEK INDUSTRIES LIMITED |
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Registered Office : |
Trident Complex,
Raikot Road, Barnala – 148 101, Punjab |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
18.04.1990 |
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Com. Reg. No.: |
010307 |
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CIN No.: [Company
Identification No.] |
L99999PB1990PLC010307 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDA00951G /
JLDA01343G |
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PAN No.: [Permanent
Account No.] |
AABCA4139J |
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Legal Form : |
Public Limited
Company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacturer of
Terry Towels, Cotton Yarn and Paper. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 16000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having average performance and financial status.
Directors are reported as experienced, respectable and having satisfactory
means of their own. Their trade relations are fair. Payments are reported as
slow but correct. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Trident Complex,
Raikot Road, Barnala – 148 101, Punjab, India |
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Tel. No.: |
91-1679-244700/244701
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Fax No.: |
91-1679-244708 |
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E-Mail : |
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Website : |
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Corporate
Office : |
E-212, Kitchlu Nagar,
Ludhiana – 141001 |
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Tel. No.: |
91-161-5039999/5038888 |
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Fax No.: |
91-161-5039900/5038800 |
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E-Mail : |
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Factory : |
Mansa Road, Dhaula Barnala, District Sangrur – 148 101, Punjab, India |
DIRECTORS
|
Name : |
Mr. Rajinder
Gupta |
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Designation : |
Managing Director |
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Name : |
Mr. S. K. Tuteja |
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Designation : |
Chairman |
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Name : |
Ms. Pallavi
Shroff |
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Designation : |
Director |
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Name : |
Ms. Ramni Nirula |
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Designation : |
Director |
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Name : |
Mr. Rajiv Dewan |
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Designation : |
Director |
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Name : |
Ms. Ravneet Kaur |
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Designation : |
Director |
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Name : |
Mr. Ajay Relan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Pawan Jain |
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Designation : |
Company Sectary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2008)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A)
Shareholding of Promoter and Promoter Group |
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(1)
Indian |
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Individuals / Hindu Undivided Family |
588266 |
0.30 |
|
Bodies Corporate |
31621608 |
16.29 |
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Financial Institutions / banks |
7715596 |
3.97 |
|
Any Other (Trust) (Specify) |
83417903 |
42.96 |
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Sub-Total
(A) (1) |
123343373 |
63.52 |
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(2) Foreign |
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Individuals (Non
Resident Individuals / Foreign Individuals) |
- |
- |
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Sub
Total (A) (2) |
- |
- |
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Total
Shareholding of Promoter and Promoter Group (A) = (A) (1) + (A) (2) |
123343373 |
63.52 |
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(B) Public Shareholding |
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(1) Institutions |
|
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Mutual Funds/UTI |
42065 |
0.02 |
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Financial
Institutions / Banks |
1499466 |
0.77 |
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Insurance Companies |
292 |
0.00 |
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Foreign Institutional Investors |
22594560 |
11.64 |
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Sub-Total
(B) (1) |
24136383 |
12.43 |
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(2)
Non Institutions |
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Bodies Corporate |
5843110 |
3.01 |
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Individuals – Individual shareholders holding nominal
share capital up to Rs. 0.100 million |
35005466 |
18.02 |
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Individual shareholders holding nominal share capital in
excess of Rs. 0.100 million |
5723162 |
2.95 |
|
Any Other (Specify) (Share in Transit) |
143181 |
0.07 |
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Sub-Total
(B) (2) |
46714919 |
24.05 |
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Total
Public Shareholding (B)= (B) (1) + (B) (2) |
70851302 |
36.48 |
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Total
(A)+(B) |
194194675 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Terry Towels, Cotton Yarn and Paper |
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Products : |
v
Sulphuric
Acid v
Cotton Yarn v
Terry Towels v
Writing and
Printing Paper |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual
Production |
|
Cotton Yarn |
MT |
24866 |
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Processed Yarn |
MT |
7368 |
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Towel |
MT |
11367 |
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Paper |
MT |
49285 |
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Sulphuric Acid |
MT |
111311 |
GENERAL
INFORMATION
|
No. of
Employees : |
8000 |
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|
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Bankers : |
v
State Bank of
India v
ICICI Bank
Limited v
Canara Bank v
State Bank
of Patiala v
Punjab
National Bank |
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Facilities : |
Cash Credit – Rs.
2500.000 Millions, Indian rupees term loan and Foreign currency term loan |
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Banking
Relations : |
Satisfactory |
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Auditors : |
Deloitte Haskins
and Sells Chartered
Accountants One Okhla
Institutional Area, New Delhi – 110025, India |
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Associates/Subsidiaries : |
v
Abhishek
Industries Inc., USA Abhishek
Industries SA, Switzerland |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
500,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 5000.000 millions |
|
100,000,000 |
Preference Shares |
Rs. 10/- each |
Rs. 1000.000 millions |
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Total |
|
Rs. 6000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
194190000 |
Equity Shares |
Rs. 10/-
each |
Rs. 1941.900 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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|
|
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1] Share Capital |
1941.900 |
1941.900 |
1942.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2052.600 |
1577.200 |
1230.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
3994.500 |
3519.100 |
3172.300 |
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LOAN FUNDS |
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1] Secured Loans |
9877.600 |
6879.300 |
4650.700 |
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2] Unsecured Loans |
21.500 |
15.700 |
13.200 |
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TOTAL BORROWING |
9899.100 |
6895.000 |
4663.900 |
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DEFERRED TAX LIABILITIES |
673.100 |
563.200 |
535.700 |
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TOTAL |
14566.700 |
11043.300 |
8371.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
7725.800 |
6467.100 |
5186.700 |
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Capital work-in-progress |
3011.200 |
1209.300 |
483.900 |
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INVESTMENT |
457.600 |
503.900 |
256.700 |
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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 |
2341.900
|
1778.100
|
1340.800 |
|
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Sundry Debtors |
299.000
|
289.400
|
752.900 |
|
|
Cash & Bank Balances |
532.200
|
287.200
|
142.000 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1086.300
|
489.500
|
438.400 |
|
Total
Current Assets |
4259.400
|
3641.400
|
2844.200
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
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Current Liabilities |
846.800
|
326.000
|
631.200 |
|
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Provisions |
40.500
|
96.100
|
54.400 |
|
Total
Current Liabilities |
887.300
|
778.400
|
422.100
|
|
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Net Current Assets |
3372.100
|
2863.000
|
2422.100
|
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
22.500 |
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|
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TOTAL |
14566.700 |
11043.300 |
8371.900 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Sales Turnover [including other income]
|
8348.400 |
7577.000 |
7314.200 |
|
Other Income
|
290.400 |
91.000 |
66.700 |
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Total Income
|
8638.800 |
7668.000 |
7380.900 |
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Profit/(Loss) Before Tax
|
614.100 |
720.100 |
631.200 |
|
Provision for Taxation
|
204.700 |
151.900 |
205.200 |
|
Profit/(Loss) After Tax
|
409.400 |
568.200 |
426.000 |
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Expenditures : |
|
|
|
|
|
|
Salaries, Wages, Bonus, etc. |
808.100 |
637.300 |
568.600 |
|
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Interest |
380.800 |
254.100 |
239.900 |
|
|
Power & Fuel |
826.500 |
627.700 |
643.300 |
|
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Depreciation & Amortization |
799.200 |
614.000 |
592.400 |
|
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Other Expenditure |
1330.400 |
4674.200 |
4446.300 |
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Total Expenditure
|
4145.000 |
6807.300 |
6490.500 |
|
QUARTERLY/SUMMARISED RESULTS
|
Year |
30.06.2007 1st Quarter |
30.09.2007 2nd Quarter |
31.12.2007 3rd Quarter |
|
Type |
|
|
|
|
Sales Turnover |
2237.700 |
2788.000 |
2671.000 |
|
Other Income |
176.600 |
96.400 |
130.600 |
|
Total Income |
2414.300 |
2884.400 |
2801.600 |
|
Total Expenditure |
1908.400 |
2441.400 |
2290.000 |
|
Operating Profit |
505.900 |
443.000 |
511.600 |
|
Interest |
132.900 |
111.900 |
106.600 |
|
Gross Profit |
373.000 |
331.100 |
405.000 |
|
Depreciation |
230.200 |
210.700 |
210.100 |
|
Tax |
56.800 |
44.200 |
50.200 |
|
Reported PAT |
86.000 |
76.200 |
144.700 |
KEY RATIOS
|
Year |
|
31.03.2007 |
31.03.2006 |
31.12.2005 |
|
Debt Equity Ratio |
|
2.24
|
1.73 |
1.12 |
|
Long Term Debt Equity Ratio |
|
1.69
|
1.28 |
0.81 |
|
Current Ratio |
|
1.12
|
1.21 |
1.44 |
|
Turnover Ratios |
|
|
|
|
|
Fixed Assets |
|
0.75
|
0.83 |
0.89 |
|
Inventory |
|
3.87
|
4.03 |
3.75 |
|
Debtors |
|
25.34
|
23.34 |
11.23 |
|
Interest Cover Ratio |
|
2.61
|
3.83 |
3.63 |
|
Operating Profit Margin (%) |
|
21.49
|
20.96 |
20.01 |
|
Profit Before Interest and Margin (%) |
|
11.92
|
12.86 |
11.91 |
|
Cash Profit Margin (%) |
|
14.48
|
15.60 |
13.92 |
|
Adjusted Net Profit Margin (%) |
|
4.90
|
7.50 |
5.83 |
|
Return on Capital Employed (%) |
|
8.19
|
10.69 |
11.19 |
|
Return on Net Worth (%) |
|
10.90
|
16.98 |
11.52 |
LOCAL AGENCY
FURTHER INFORMATION
History:
Subject is a part of
Trident Group was promoted by Rajinder Gupta. The company is engaged in
manufacturing of Terry Towels, Cotton Yarn and Paper. The company is one of the
largest manufacturer of Terry Towels in India with an installed capacity of 100
million pieces per annum(including the capacity of the ongoing expansion
project which will be on stream by March 2004). The company exports Terry
Towels to USA. Wall Mart is one of the company's prestigious clients.
The company's Yarn plant which produces both cotton and acrylic yarn is located
at Sanghera, Punjab. This unit was financed by the public issue in Oct. 1992.
Its products are used in hosiery products, textiles, fabrics, etc. The company
has an agreement with Sagatex International, UK, for marketing and exporting
its cotton production upto 50%.
The company's Second Unit i.e. Unit II has an installed capacity of 43392
Spindles for manufacture of dyed cotton, melange, acrylic and blended yarn
besides carded and combed cotton yarn. The Unit II project which has been
divided into parts the first phase of 36288 Spindles has started commercial
production from 1st July, 1999. The cost of project amounts to Rs 950 Millions
which was financed by term loans, rights issue and internal accruals.
During 1999-2000, the company got the status of Government Recognised Trading
House and the quality of the products was well accepted in the international
market.
During 2002, Varinder Agro was merged with company. The shareholders of
Varinder Agro were allotted 70 equity shares in Abhishek Industries for every
24 shares held.
Form 8:
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
L99999PB1990PLC010307 |
|
Name of the
company |
|
|
Address of the
registered office or of the principal place of business in India of the company |
Trident Complex,
Raikot Road, Barnala – 148101, Sangrur, Punjab, India |
|
Type of charge |
Book Debts,
Others as per Annexure A |
|
Particular of charge
holder |
State Bank of
India, Specialised Commercial Branch, Civil Lines, Ludhiana – 141 001,
Punjab, India |
|
Nature of
description of the instrument creating or modifying the charge |
|
|
Date of instrument
Creating the charge |
12.12.2006 |
|
Amount secured by
the charge |
Rs. 2250.000
Millions |
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Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest 1.75% below SBAR present.
Effective rate minium 9.25% p.a. with monthly rests Letter of Credit
and Bank Guarantee commission as per extent instructions of the member banks
FEDAI rules Terms of repayment As and when
demanded. Margin Raw Material –
25% Book Debts – 40% Extent operation of the charge 100% |
|
Short particulars
of the property charged |
|
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 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.42.86 |
|
UK Pound |
1 |
Rs.83.58 |
|
Euro |
1 |
Rs.66.17 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit consideration.
Capability to overcome financial difficulties seems comparatively below
average. |
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 |
|