MIRA INFORM REPORT

 

 

 

Report Date :

18.06.2008

 

IDENTIFICATION DETAILS

 

Name :

ALOK INDUSTRIES LIMITED

 

 

Registered Office :

3-43, Mittal Tower, Nariman Point, Mumbai - 400 021, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2007

 

 

Date of Incorporation :

12.03.1986

 

 

Com. Reg. No.:

11-39194

 

 

CIN No.:

[Company Identification No.]

L17110MH1986PTC039194

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMA02206B

 

 

PAN No.:

[Permanent Account No.]

AAACA0201C

 

 

Legal Form :

It is a public limited liability company.  The company's shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing of cotton and viscose / blended grey and processed fabrics and 100% cotton knitted fabrics and intermingled yarn.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 40977600

 

 

 

 

 

 

Status :

Good

 

 

 

 

 

 

Payment Behaviour :

Regular

 

 

 

 

 

 

Litigation :

Clear

 

 

 

 

 

 

Comments :

Subject is a well established company having satisfactory track.  Financial position is satisfactory.  Payments are usually correct and as per commitments.

 

The company is doing well.

 

The company can be considered normal for business dealings at usual trade terms and conditions.

 

 

 

LOCATIONS

 

Registered Office :

3-43, Mittal Tower, Nariman Point, Mumbai - 400 021, Maharashtra, India

Tel. No.:

91-22-22874865 / 22832923 / 24940129 / 22845233 / 22881279 / 22832923

Fax No.:

91-22-22874864 / 24936078

E-Mail :

aloknpt@bom7.vsnl.net.in

info@aloktextile.com

info@alokind.com

sales@aloktextile.com

sunil@alokind.com

krishna@alokind.com

premkumar@alokind.com

Website :

http://www.aloktextile.com

http://www.alokind.com

 

 

Corporate Office :

Peninsula Tower 'A' Wing, Peninsula Corporate Park, G. K. Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel. No. :

91-22-24996200 / 6500

 

 

Marketing Offices (Domestic)

 

Delhi Office

177, Alok House, Sant Nagar, East of Kailash, New Delhi - 110 065

 

Bangalore Office

Ground floor, Rajee, 8-3/1, Lang Fort Road, ,Lang Fort Town, Bangalore - 560 025

 

Chennai Office

Office No. D, First Floor, Doshi Towers No. 156, Poonamallee High Road, Kilpauk, Chennai - 600 010

 

 

Marketing offices: (Overseas)

Sri Lanka Office

31/2, De Fonseka Place, Colombo, Sri Lanka

 

U.S.A. Office

7 West, 34th Street, Suite # 607, New York, New York - 10001

 

 

Factory :

Spinning

412, Saily, Silvassa, Union Territory of Dadra & Nagar Haveli

 

Weaving Division

Kalyan  Road, Babla Compound, Bhiwandi - 421 302, District Thane, Maharashtra, India

 

17/5/1 & 521/1, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli

 

209/1 & 209/4, Silvassa, Village Dadra, Union Territory of Dadra and Nagar Haveli

 

Yarn Division

65, A, Piparia Industrial Estate, Silvassa - 396 230, Gujarat, India

 

103 / 2, Rakholi, Silvassa, Union Territory of Dadra  and Nagar Haveli

 

Processing

C-16 / 2, TTC Industrial Area, MIDC, Navi Mumbai, Maharashtra, India

 

S. No. 268, Village Balitha, Pardi, Valsad, Gujarat, India

 

254, Village Balitha, Taluka Pardi, District Valsad, State Gujarat

 

Knitting Division

17/5/1, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli

 

521/1, Saily, Union Territory of Dadra & Nagar Haveli, Silvassa

 

261/P (Part A, B and C), Balitha, Pardi, Valsad, Gujarat, India

 

110, Morai, Pardi, Valsad, Gujarat, India

 

Garments

374 Saily, Silvassa, Union Territory Dadra Nagar Haveli

 

C – 271/2, TTC Industrial Area, Turbhe, Navi Mumbai

 

Made Ups

374/2/2, Village Saily, Silvassa, Union Territory Dadra & Nagar Haveli

 

POY

521/1, Saily, Union Territory of Dadra & Nagar Haveli, Silvassa

 

Texturising (yarn)

103/2, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli

 

521/1, Saily, Union Territory of Dadra & Nagar Haveli, Silvassa

 

17/5/1 and 521/1 Rakholi / Saily, Silvassa

 

 

Branches :

177, Alok House, Sant Nagar, East of Kailash, New Delhi – 110065

 

 

DIRECTORS

 

Name :

Mr. Ashok B. Jiwrajka

Designation :

Executive Chairman

 

 

Name :

Mr. Dilip B. Jiwrajka

Designation :

Managing Director

 

 

Name :

Mr. Surendra B. Jiwrajka

Designation :

Joint Managing Director

 

 

Name :

Mr. K. C. Jani

Designation :

Nominee Director of Industrial Development Bank of India Limited

 

 

Name :

Mr. Rakesh Kapoor

Designation :

Nominee Director of IFCI Limited

 

 

Name :

Mr. K. J. Punnathara

Designation :

Nominee Director of Life Insurance Corporation of India

 

 

Name :

Mr. Ashok G. Rajani

Designation :

Director

 

 

Name :

Mr. C. K. Bubna

Designation :

Executive Director

 

 

Name :

Mr. K. R. Modi

Designation :

Director

 

 

Name :

Mr. R. J. Kamat

Designation :

Nominee Director of Industrial Development Bank of India

 

 

Name :

Ms. Hiroo S. Advani

Designation :

Nominee Director of Export Import Bank of India

 

 

Name :

Mr. Tim Ingram

Designation :

Director

 

 

Name :

Mr. Rakesh Kapoor

Designation :

Director

 

 

Name :

Mr. S. Sridhar

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Sunil O Khandelwal

Designation :

Chief Financial Officer

 

 

Name :

Mr. K H Gopal

Designation :

Secretary

 

 

CORPORATE :

 

Name :

Mr. Alok Jiwrajka 

Designation :

Head – Home Textiles

 

 

Name :

Mr. Gopinath Kamath 

Designation :

Asst. Vice President (Sales)

 

 

Name :

Mr. Jayesh Mehta

Designation :

Sr. Manager - Home Furnishing 

 

 

Name :

Mr. K. H. Gopal

Designation :

VP (Legal) and Company Secretary 

 

 

Name :

Mr. Mesmer Michaeli

Designation :

Vice President (Marketing) 

 

 

Name :

Mr. Nagori M. V.

Designation :

Vice President - Corporate Accounts

 

 

Name :

Mr. Prakash Thombre

Designation :

Head - Human Resources 

 

 

Name :

Mr. Ramesh Sharma

Designation :

Vice President (Marketing)

 

 

Name :

Mr. Shaji Varghese

Designation :

Head - Information Technology

 

 

Name :

Mr. Sunil Mehta

Designation :

Vice President (Retail)

 

 

Name :

Mr. Sunil O. Khandelwal

Designation :

Chief Financial Officer

 

 

Name :

Mr. Suraj Alva

Designation :

Vice President (Marketing) 

 

 

Name :

Mr. Suresh H. Sanghvi

Designation :

Vice President (Sales Yarn & Knit)

 

 

NAVI MUMBAI

 

Name :

Mr. Devang Mehta 

Designation :

CEO - Processing 

 

 

Name :

Mr. Raju Kapadia

Designation :

General Manager - Commercial (Garments)

 

 

Name :

Ms. Tulsi Karnani

Designation :

General Manager - Commercial (Processing) 

 

 

SILVASSA

 

Name :

Mr. B. N. Rai 

Designation :

Vice – President

 

 

Name :

Mr. K. V. S. Nair

Designation :

General Manager (Texturising)

 

 

Name :

Mr. M. C. Chaturvedi

Designation :

General Manager (Weaving) 

 

 

Name :

Mr. R. B. Mahapatra

Designation :

Vice - President  

 

 

Name :

Mr. Rambilas Bidada

Designation :

General Manager – Commercial

 

 

Name :

Mr. S. S. Shirolkar

Designation :

General Manager (Knitting) 

 

 

Name :

Mr. Sapan K. Mukerjee

Designation :

Chief Executive Officer (Spinning)  

 

 

Name :

Mr. A. K. Pal

Designation :

President - Processing (Apparel Fabric) 

 

 

Name :

Mr. G. C. Gupta

Designation :

President - Operations (Processing)

 

 

Name :

Mr. P.K. Das

Designation :

President - Technical 

 

 

Name :

Mr. S. C. Goyal

Designation :

Director - Projects 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.03.2008

 

Names of Shareholders

No. of Shares

Percentage of Holding

Promoters holding

 

 

Foreign promoters

102000

0.05

Indian promoters

60152940

34.14

Institutional Investors

 

 

Mutual funds and UTI

3981159

2.13

Bank Financial Institution and insurance

13779207

7.36

FII’s

55897385

29.86

Other investors

 

 

Private corporate bodies

25505431

13.63

NRI’s/ OCB’s/ Foreign Others

1205343

0.64

Others

9297306

4.97

Indian public

17254198

9.22

Total

18174969

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of cotton and viscose / blended grey and processed fabrics and 100% cotton knitted fabrics and intermingled yarn.

 

 

Products :

Item Code No.

(ITC CODE)

Products Description

5208

Woven Fabrics of Cotton

5512

Woven Fabrics of Synthetic Staple Fibres

5513

Woven Fabric of Synthetic Staple Fibres

5406           

Man Made Filament Yarn

6001           

Pile Fabric

6002

Other Knitted or Crocheted Fabric

 

 

Imports from :

Switzerland, England, Hongkong, Germany, Belgium, Bahrain, Malaysia and Japan

 

 

GENERAL INFORMATION

 

Suppliers :

v      Zellweger Luwa AG, Uster, Switzerland

v      Benninger Company Limited, Uzwil, Switzerland

v      Bonas Machine Company Limited, Gateshead, England

v      Staubli AG, Horgen, Switzerland

v      Atlas Copco Airpower N. V., Antwerpen, Belgium

v      Electronia Contractor AG, Lugano, Switzerland

v      Itochu Middle East E.C., Bahrain

v      Dunham-Bush Industries Sdn Bhd, Salangor Darul Ehsan, Malaysia

v      Todo Seisakusho Limited, Osaka, Japan

v      Benninger Company Limited, Uzwil, Switzerland

v      Gematex Textivered Lungs-Maschinen Gmbh, Wettinerstrasse 4, D-08280, Aue Germany

v      Fong's National Engineering Company Limited, Tsing Yi Island, Hong Kong

v      Osthoff-Senge GmbH & Company Kg. Postfach 11 04 65  D-42304, Wuppertal, Germany

v      Mayer and Cie Gmbh & Company, Albstadt, Germany

 

 

No. of Employees :

1500

 

 

Bankers :

·         Bank of Baroda

·         Calyon Bank

·         Citigroup

·         Dena Bank

·         IDBI Bank

·         ING Vysya Bank Limited

·         State Bank of Mysore

·         State Bank of Saurashtra

·         State Bank of Travancore

 

·         State Bank of India, Backbay Reclamation Branch, Raheja Chambers, Ground Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India

Tel. No. 91-22-22819539 / 22840754 / 1458

Fax No. 91-22-22043252

 

·         Bank of India, Bank of India Building, 4th Floor, M. G. Road, Fort, Mumbai – 400 001, Maharashtra, India

 

·         Jammu & Kashmir Bank Limited

Homi Modi Cross Lane II, Fort Chambers, Block “B”, Fort, Mumbai – 400 023, Maharashtra, India

 

·         Andhra Bank, Nanavati Mahalaya, 18, Homi Modi Street, Fort, Mumbai – 400 023, Maharashtra, India

 

·         Centurion Bank of Punjab Limited, 25/26, Maker Chamber III, 2nd Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India

Tel. No. 91-22-22819124 / 22831922

Fax No. 91-22-22048165

 

·         The Federal Bank Limited, Mimson House, 1st Floor, Crawford Market, Mumbai – 400 003, Maharashtra, India

Tel. No. 91-22-23453202

Fax No. 91-22-23453204

 

·         State Bank of Indore, 214, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra, India

 

·         State Bank of Patiala, Atlanta, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

·         Punjab National Bank, PNB House, Sir P. M. Road, Fort, Mumbai - 400 001, Maharashtra, India

Tel. No. 91-22-22660040

Fax No. 91-22-22663521

 

·         The Karur Vysya Bank Limited, Kamanwala Chambers, Ground Floor, Sir P. M. Road, Fort, Mumbai - 400 001, Maharashtra, India

Tel No. 91-22-22665467 / 5914

Fax No. 91-22-22654260

 

·         Development Credit Bank Limited, 6, Tulsiani Chambers, Ground Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India

Tel. No. 91-22-22830115

Fax No. 91-22-22885272

 

·         State Bank of Hyderabad, 11-C, Mittal Tower, 1st Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India

Tel. No. 91-22-22844096

Fax No. 91-22-22841096

 

·         Syndicate Bank, 11, Ballard Estate, Adi Marzban Road, Ballard Estate, Mumbai - 400 038, Maharashtra, India

Tel. No. 91-22-22626622 / 22618536

Fax No. 91-22-22626619

 

·         Syndicate Bank, Syndicate Bank Building, Sir P. M. Road, Fort, Mumbai – 400 001, Maharashtra, India

 

·         The Vysya Bank Limited, 210, Mittal Tower, ‘A’ Wing, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

·         Standard Chartered Grindlays Bank, 90, M. G. Road, Fort, Mumbai – 400 001, Maharashtra, India

Tel. No. 91-22-22642245

Fax No. 91-22-22619866

 

·         State Bank of Bikaner & Jaipur, Overseas Branch, 240-242, Nirman Building, Nariman Point, Mumbai – 400 021, Maharashtra, India

·         Citi Bank

·         Industrial developments Bank of India

·         ING Vysya Bank Limited

·         State Bank of Patiala

 

 

Facilities:

SECURED LOANS

31.03.2007

31.03.2006

 

(Rs. in millions)

10.00% Redeemable Non Convertible Debentures

0.000

190.000

8.00% Redeemable Non Convertible Debentures

0.000

1000.000

8.75% Redeemable Non Convertible Debentures

500.000

0.000

9.00% Redeemable Non Convertible Debentures

200.000

0.000

6.75% Redeemable Non Convertible Debentures

0.000

250.000

Total

700.000

1440.000

Term Loans

(1) From Financial Institutions

 

 

Rupee Loans

1317.200

2255.500

Foreign Currency Loans

1100.700

723.700

Total

2417.900

2979.200

(2) From Banks

 

 

Rupee Loans

18964.900

9704.100

Foreign Currency Loans

466.900

526.800

Total

19431.800

10230.900

 

 

 

c. From Banks on Cash Credit Accounts, Working

capital Demand Loans etc.

 

 

Includes Rs. 345.900 millions demand loan in

foreign currency (Previous Year Rs. 417.300 millions)]

5689.200

3230.800

Total

5689.200

3230.800

 

 

 

d. Loans under Hire Purchase/ Lease Arrangements

91.600

121.200

Total

91.600

121.200

 

NOTES:

1 Debentures are secured by:

a) i) Nil (previous year 1900000) 10% Secured Redeemable Non Convertible Debentures of Rs. 10/- each, based on agreement with debenture holders are redeemable at par in six annual installments commencing from 1 st December, 2005 till 1 st December, 2010. During the year these debentures have been fully redeemed on exercise of premature redemption option by the company.

 

ii) Nil (previous year 1,000) 8.00% Secured Redeemable Non-Convertible Debentures of Rs. 10.00000/- each were redeemable in 32 equal quarterly installments starting from 1st April 2008. During the year these debentures have been fully redeemed on exercise of premature redemption option by the company.

 

b) All the Debentures in 'a' above were secured by (i) a pari passu charge created on all present and future fixed assets of the company subject to exclusive charges created/to be created on specific fixed assets in favour of specified lenders, (ii) a charge created/to be created on all current assets of the company subject to a prior charge on such current assets created/to be created in favour of the company's working capital bankers (iii) Registered mortgage on the immovable property situated at Mouje Irana, Taluka Kadi, District Mehsana in the state of Gujarat, and (iv) the personal guarantees of three promoter

directors.

 

c) 500 (previous year Nil) 8.75% Redeemable Non convertible Debentures of Rs.1000000/- each, which are redeemable on 25th June 2007 are secured by way of registered mortgage on the immovable property situated at Mouje Irana, Taluka Kadi, District Mehsana in the state of Gujarat, (since redeemed).

 

d) 200 (previous year Nil) 9.00% Redeemable Non convertible Debentures of Rs.1000000/- each, which are redeemable on 24th December 2007 are secured by way of registered mortgage on the immovable property situated at Mouje Irana, Taluka Kadi, District Mehsana in the state of Gujarat.

 

e) Nil (previous year 250) 6.75% Secured Redeemable Non-Convertible Debentures of Rs. 10000007- each, are redeemed on 2nd November 2006 and were secured by way of registered mortgage on the immovable property situated at Mouje Irana, Taluka Kadi, District Mehsana in the state of Gujarat.

 

2. Term loans are secured as under:

a) Term loans from financial institutions and from banks (Including foreign currency loans) to the extent of Rs.1954.400 millions (Previous year Rs.2979.200 millions) and Rs.16387.200 millions (Previous year Rs.6991.500 millions) respectively, are secured by (i) a pari passu first charge created/to be created on all present and future movable and immovable assets of the company subject to exclusive charges created/to be created on specific fixed assets in favour of specified lenders, (ii) a charge created/to be created on all current assets of the company subject to a prior charge on such current assets created/to be created in favour of the company's working capital bankers and (iii) the personal guarantees of three promoter directors. Financed by them and (ii) the personal guarantees of three promoter directors.

 

c) Term loan from the banks to the extent of Rs.76.100 millions (Previous year Rs. 102.900 millions) are secured by (i) an exclusive charge created on specific assets financed by them (ii) a charge created/ to be created on all the assets of the company present and future subject to a prior charge on such asset created/

to be created in favour of the company's term lenders and working capital bankers and (iii) the personal guarantees of three promoter directors.

 

d) Term loans from the Banks and Financial Institutions to the extent of Rs.1095.300 millions (previous year Rs.1332.900 millions) and Rs.463.500 millions (Previous year Rs. Nil) respectively, are secured by (i) subservient charge on all movable assets of the Company present and future subject to prior charge on specific movable assets in favour of the company's term lenders and working capital bankers (ii) the personal guarantee of three Promoter Directors of the Company.

 

3 Working Capital limits from banks are secured by (i) hypothecation of Company's inventories, book debts, etc. (ii) second charge created / to be created on the fixed assets of the Company (iii) immovable properties belonging to the Company / Guarantors and (iv) the personal guarantees of three promoter directors of the Company.

 

4 Hire Purchase Loans are secured by the respective assets, mainly Plant and Machinery and Equipments, purchased under the said loans

 

 

UNSECURED LOAN

31.03.2007

31.03.2006

Fixed deposits

(Rs. in millions)

Term loans and advances

 

 

a) from Banks and financials institutions

2.900

3.400

Rupee Loans

1170.500

470.000

Foreign Currency Loans

499.200

563.200

Total

1672.600

1036.600

From others

 

 

Nil (previous year 20000) 9.40% Unsecured redeemable Non –convertible Debentures of Rs. 100/- each redeemed at par on 26th June 2006

0.000

200.000

Other loans and Advances

 

 

From Banks

 

 

Foreign Currency Loans

1335.800

0.000

934 (previous year 989) 1% Foreign Currency Convertible Bonds (FCCB)

2028.700

2206.300

Total

3364.500

2406.300

 

NOTES:

1. Term Loans from Banks

a) To the extent of Rs. Nil (Previous year Rs.100.000 millions) was secured on persortal guarantee of three promoter directors.

 

b) Includes commercial paper of Rs.800.000 millions (Previous year Rs.200.000 Millions) maximum amount outstanding at any time during the year Rs.800.000 millions (Previous year Rs.700.000 millions).

 

2 Short Term Foreign Currency Loan of Rs.434.400 millions (previous year Rs.446.200 millions) from Bank are secured by (i) Personal Guarantee of three Promoter Directors and (ii) Power of Attorney to create first charge on the fixed assets of the company in case of default.

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

·         Gandhi & Parekh

Chartered Accountant,

Saraswati Darshan, Malad (West), Mumbai – 400 064, Maharashtra,

India

 

·         Deloitte Haskins and Sells

Chartered Accountants

 

 

Internal Auditors:

·         Bhandarkar and company

Chartered Accountants 

 

·         Devdhar Joglekar and Srinivasan

Chartered Accountants 

 

·         N T Jain and company

Chartered Accountants

 

·         Shah Gupta and company

Chartered Accountants

 

·         T R Chadha and company

Chartered Accountants 

 

 

Associates :

·         Grabal Alok Impex Limited

106/107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Manufacture of all types of embroidered products

 

·         Alok Knit Exports Limited

109, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

 

·         Nirvan Holdings Private Limited

109, Shah & Nahar (Worli) Industrial Estate, Off E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Investment Company

 

·         Jiwarjka Associates Private Limited

109, Shah & Nahar (Worli) Industrial Estate, Off E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Trading in textiles

 

·         Jiwarjka Investment Private Limited

2, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Trading in textiles

 

·         Niraj Realtors & Shares Private Limited

107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Dealing in real estate, properties and shares

 

·         Alok Finance Private Limited

106/107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Finance company

 

·         Nirvan Capital Services Limited

109, Shah & Nahar (Worli) Industrial Estate, Off Dr. E, Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Finance Company

 

·         Ashok Realtors & Shares Private Limited

302, Krishnakunj, 3rd Floor, Plot No. TPS – 170, Shivaji Park Road No. 5, Pandurang Naik Marg, Mahim, Mumbai – 400 016, Maharashtra, India

Dealing in real estate, properties and shares

 

·         Alok Denims (Private) Limited

106/107, Shah & Nahar (Worli) Industrial Estate, Off Dr. E. Moses Road, Worli, Mumbai – 400 018, Maharashtra, India

Manufacturing of Denim fabric

 

·         Alok Textile Traders 

·         Pramatex  Enterprises 

·         Alok Knit Exports Limited

·         Nirvan Clothing Company Limited

·         Nirvan Exports

·         Alok Finance Private Limited

·         D. Surendra & Company

·         Green Park Enterprises

·         Lipren Knit-Fab Private Limited

·         Galaxy Gloknit Private Limited  (Formerly known as Renhok Tex-Knit Private Limited

·         Pramita Creations Private Limited (Formerly Pramita Fashions Private Limited)

·         Vidhi Gloknit Private Limited  (Formerly Known as Vidhi Apptex Private Limited)

·         Globus E-Commerce Limited (Formerly Known as Globus Technologies Limited)

·         Alok Itec Limited

·         Buds Clothing Company

·         Eden Knitfab

·         Honey Comb Knit Fabrics

·         Maclon Textiles

·         Mircon Knits

·         Pique Knits

·         Tulip Textiles

·         Vaibhav Knit-Fabs

·         Viraj Textiles

·         The Waffle Knits

·         Daffodil Knitfab

·         Alok Incorporation

·         Alok Industries International Limited

·         Alok Infrastructure Private Limited

·         Ashok NB Jiwrajka (HUF)

·         Dilip B Jiwrajka (HUF)

·         Grabal Alok (UK) Limited ((formerly known as Hamsard 2353 Limited)

·         Grabal Alok international Limited

·         Green Park Enterprises

·         Nirvan Exports

·         Pramatex Enterprises

 

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

210000000

Equity shares

Rs. 10/- each

Rs.2100.000 millions

90000000

Preferences shares

Rs. 10/- each

Rs.900.000 millions

 

Total

 

Rs.3000.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

170371974

Equity shares

Rs. 10/- each

Rs.1703.700 millions

 

 

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

1703.700

2254.700

2183.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

8540.700

6500.600

4607.300

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

10244.400

8755.300

6790.800

LOAN FUNDS

 

 

 

1] Secured Loans

28330.500

18002.100

12395.100

2] Unsecured Loans

5037.100

3442.900

794.000

TOTAL BORROWING

33367.600

21445.000

13189.100

DEFERRED TAX LIABILITIES

1418.200

1001.000

751.000

Share Warrants

0.000

0.000

33.200

 

 

 

 

TOTAL

45030.200

31201.300

20764.100

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

19753.200

11557.700

7010.800

Capital work-in-progress

5888.900

7069.000

1707.700

Incidental Expenditure during Construction

195.900

115.700

74.200

 

 

 

 

INVESTMENT

2194.900

397.000

78.500

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
4644.600

3581.500

3632.700

 

Sundry Debtors
5445.200

3545.300

4029.700

 

Cash & Bank Balances
7853.000

5330.300

4968.000

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
1983.800

1581.600

961.700

Total Current Assets
19926.600

14038.700

13592.100

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
2554.600

1713.500

1467.600

 

Provisions
374.700

263.300

231.600

Total Current Liabilities
2929.300

1976.800

1699.200

Net Current Assets
16997.300

12061.900

11892.900

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

45030.200

31201.300

20764.100

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2007

31.03.2006

31.03.2005

Sales Turnover

18102.000

14074.500

13036.200

Increase In Stock of Finished Goods and Process Stocks

653.300

205.900

0.000

Other Income

373.000

51.400

0.000

Total Income

19128.300

14331.800

13036.200

 

 

 

 

Profit/(Loss) Before Tax

2323.100

1540.000

1235.100

Provision for Taxation

674.500

447.900

342.600

Profit/(Loss) After Tax

1648.600

1092.100

892.500

 

 

 

 

Export Value

6081.700

3656.600

2735.400

 

 

 

 

Import Value

3168.800

2995.500

1159.500

 

 

 

 

Expenditures :

 

 

 

 

Purchases of traded goods

984.100

218.800

 

Manufacturing and other expenses

13845.100

11232.900

104128.500

 

Interest

890.400

667.800

 

 

Depreciation

1230.400

804.800

 

Total Expenditure

16950.000

12924.300

104128.500

 

QUARTERLY RESULTS

 

Year

30.06.2007

1st Quarter

30.09.2007

2nd Quarter

31.12.2007

3rd Quarter

31.03.2008

4th Quarter

Sales Turnover

4189.000

4647.800

5507.800

7247.900

Other Income

397.400

138.700

88.700

0.000

Total Income

4586.400

4786.500

5596.500

7247.900

Total Expenditure

3173.400

3561.600

4160.100

5553.300

Operating Profit

1413.000

1224.900

1436.400

1694.600

Interest

270.100

282.700

295.400

364.500

Gross Profit

1142.900

942.200

1141.000

1330.100

Depreciation

357.500

363.700

434.400

456.900

Tax

90.700

67.800

83.400

104.100

Reported PAT

550.100

429.700

488.000

537.400

 

KEY RATIOS

 

Year

 

31.03.2007

31.03.2006

31.03.2005

Debt-Equity Ratio

2.88

2.23

2.00

Long Term Debt-Equity Ratio

2.42

1.77

1.29

Current Ratio

2.08

2.19

1.80

TURNOVER RATIOS

Fixed Assets

0.99

1.28

1.80

Inventory

4.52

4.03

4.54

Debtors

4.14

3.84

3.07

Interest Cover Ratio

2.64

2.97

2.55

Operating Profit Margin(%)

26.74

21.51

20.29

Profit Before Interest And Tax Margin(%)

20.12

15.98

15.82

Cash Profit Margin(%)

15.48

13.05

11.42

Adjusted Net Profit Margin(%)

8.87

7.51

6.94

Return On Capital Employed(%)

10.14

9.26

12.68

Return On Net Worth(%)

17.92

14.49

17.93

 

 

 

 

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Operations

The Company, during the year leveraged global opportunities to achieve another year of sustained growth. Sales grew by 28.44% over the last year to Rs. 18246.800 millions; profit before tax (PBT) grew by an even more impressive 50.85% to Rs. 2323.100 millions, inclusive of foreign exchange gain of Rs. 334.300 millions. The Company's efforts to build a global client base is aptly reflected in its export performance, with the current year's export sales of Rs. 6417.100 millions, showing an increase of 62.64% over last year.

 

A detailed note on the performance of the company for the year is given in the 'Management Discussion and Analysis', which forms a part of this Directors' Report.

 

Strategic Initiatives

As a part of its initiatives to unlock shareholder value and capitalise on growth opportunities through wholly owned subsidiaries. Garmenting, domestic retailing, international business and infrastructure would be managed in these subsidiaries; the parent company would continue with Spinning, Apparel Fabrics, Home Textiles and Polyester Yarn manufacturing.

 

Garmenting:

 The garmenting business shows significant potential, and, in order to capitalise on this opportunity, the Company proposes to hive off its current garmenting division into a separate wholly-owned subsidiary. This would take over and increase the current garmenting to a level of 22 million pieces; subsequent enhancement of capacities would be undertaken through a 'step-down' model with

joint venture partners.

 

Domestic Retailing:

During the year, Subject  has started operations in the retail segment. 'H and  A' is a unique concept store, where Subject  sells not only garments but home textiles as well - all under one roof. The Company today has 14 'H and  A' stores in major metro cities and plans to roll out 500 stores within the next 3 years. The range of products includes fabrics, garments, embroidered fabric, 'salwar kameez dupatta' (SKD) sets, saris, bed linen and terry towels.

 

International Business:

AIIL has acquired a 60% stake in Mileta a.s., a company based in the Czech Republic manufacturing high end yarn dyed shirting fabrics, handkerchiefs, table linen, batistes and damasks. AIIL has the option to raise the stake to about 80% over the next five years.

 

AIIL has also signed an exclusive license agreement with New York, NY headquartered AISLE 5, LLC for its portfolio of lifestyle brands like world, Cotton + Clay etc. Under this multi-year license, the Company has the rights o manufacture and distribute Bath, Sleeping, Dining and Home Decor textile products specifically: sheets, pillow cases, blankets, duvets, robes, bathmats, towels, table linens, decorative pillows through supermarket retail stores in the United States and Canada. This provides a unique opportunity for the Company to participate in building of a new and large channel of distribution in the USA.

 

Infrastructure: AIPL is setting up a Textile SEZ in Silvassa and is awaiting the final approval from Government of India in this regard. AIPL has also acquired following properties: (i) Office premises admeasuring around 575,000 square feet at Lower Parel, Mumbai in an office complex called 'Peninsula Business Park" being developed by Peninsula Land Holdings Limited at the erstwhile "The Dawn Mills Limited";

 

(ii) Office premises at Ashford Centre admeasuring about 57,000 square feet at Lower Parel, Mumbai being developed by Ashford Universal.

 

Awards, Licenses and Certificates

During FY 2007, Subject won a number of awards and certifications, a summary of which is given below. These are a sign of the Company's growing stature in the international market, as well as a reflection to its constant commitment to producing the best quality of goods.

 

1. Texprocil' Silver Trophy for the highest fabric exports from India.

 

2. Texprocil' Bronze Trophy for the highest 'made ups' exports from India.

 

3. Award from the All India Exporters Chamber in recognition of the role played by the Company in the Award~and 

Certificat^R^ognitionof the company^growthandc^ste^p^riorma^e'. Development of exports of 'made ups'.

 

4. 'Certificate of Excellence' by Kohl's Department Stores for partnership and teamwork.

 

5. Certificate from Control Union Certification, Netherlands: The company's weaving, knitting and processing plants are as per 'Skal international Standards for Sustainable Textile Production' for the processing of natural fibres.

 

6. Control Union Certificate for 100% organic products issued by CU Inspection P. Limited ., Netherlands

 

7. Fair Trade Licence for use of their cotton by Fair Trade label organisation (FLO), Germany.

 

8. 'Supima' licence for use of their cotton in manufacture of woven and knitted fabrics.

 

9. ISO 9001:2000 certifications for Vapi, Silvassa (weaving and knitting) and Pawane plants, along with Corporate Office.

 

General Overview

2006 was a year of broad-based global economic growth among both developed and developing countries. Despite some early signs of a possible slowdown in the first quarter of 2007, the USA grew its GDP by 3.3% in 2006. Led by Germany and Spain, the Euro Zone achieved a smart turnaround and closed 2006 with 3% growth. Even Japan seemed to have decisively come out of a decade of deflation s— and grew by 2.3% during 2006.

 

Asia's growth rate was significantly higher. Led by China's 10.7% GDP growth, developing Asia recorded a growth rate of 9.4% — it's highest in the last 10 years. With China expected to maintain the same scorching pace in 2007, and India to grow at a forecasted rate of 8.5%, the economic situation for Asia looks positive.

 

India's had an excellent economic performance over the last few years. In 2006-07 (or FY2007), India achieved GDP growth of 9.4%, which followed 9% growth of the previous year. The compounded annual growth rate (CAGR) of the last four years is now over 8.6%. The worry about rising inflation has now abated. Outward direct investment from India is also growing- a sign that Indian corporate are keen to and have the required financial muscle to invest in other economies. Some estimates predict that in 2007-08, India's outward FDI may exceed its inward FDI. Buoyant tax revenues have contributed to a steady reduction in overall fiscal deficit. Although interest rates hardened considerably throughout FY2007, there are signs that the period of credit and money supply tightening is coming to an end.

 

According to most economists, India is poised to grow at around 8.5% in FY2008.

 

Industry Overview

This environment of global and Asian growth has also contributed to a growing trade in textiles and clothing, which has been increasing at around 6% per year over the last five years. With the removal of quotas since 2005, global textiles and clothing trade is expected to grow at the same annual rate - from USD 480 billion in 2005 to USD 650 billion in 2010, accompanied by an increasing shift in favour of relatively lower-cost Asian producers.

 

In quantitative terms, India is the second largest producer of textiles and garments, after China; and it is also the world's second largest cultivator of cotton. Textiles contribute to 17% of the total Indian exports and to approximately 4% of the GDP. Clothing accounts for approximately 50% of the total textiles business. USA, the EU, Canada, the U.A.E., Japan, Saudi Arabia, Republic of Korea and Turkey are major importers of Indian textiles. With a re-imposition of quotas on China by the USA and the dismantling of weaving, spinning and processing facilities in the USA and in the EU, the growth in exports from India is expected to continue.

 

In FY2006, India's textiles and clothing exports grew by almost 22% to USD 17 billion. With the right kind of investments in the industry, it is quite possible for textiles and clothing exports to grow at an annual rate of 20% over the next five years.

 

India's domestic textile market has grown at a 4-year CAGR of 6.4% to USD 34 billion in 2006. Apart from the overall growth in the economy, the growth in domestic textiles demand has been-fuelled by: (a) increased retail penetration; (b) higher disposable incomes;

 

(c) Increase in the number of nuclear families; and (d) growth in tourism and healthcare, which, in turn, has generated higher demand for the home textile segment. The domestic market is expected to grow at a CAGR of 9%. Investments for 2006 have been estimated at USD 6 billion, an increase of 71% over 2005. These have mainly been used for increasing production capacities. The industry is becoming more organised and favouring large-scale manufacturers. Indian firms have also been investing in companies located in developed economies.

India can be a significant global player in textiles. However, for it to do so, some challenges need to be addressed.

 

• Creating economies of scale.

Overseas buyers prefer to source from large manufacturers that can quickly deliver changing designs and high volumes; this 'speed to market' is a function of large capacities and high production efficiencies. With China as a large-scale exporter at one end, and the low-cost, low-margin Asian exporters at the other, Indian textile exports can grow only if the volume and delivery capabilities are enhanced. If the Government of India's target of USD 45 billion exports by 2010 is to be achieved and the industry size is to reach USD 95 billion, it is estimated that the textiles industry will need USD 30 billion of investments. With USD 6 billion of investments in 2006, the signs look positive.

 

• Meeting infrastructural constraints.

India ranks behind developed and other Asian countries in infrastructure development, especially road and port facilities. Also, the high cost of power and its intermittent supply creates production bottlenecks. With a growing emphasis on infrastructure development and the industry's increasing self-reliance on power generation, this is an area, which is being fast addressed.

 

• Technology absorption.

Though rapidly improving, a low proportion of Indian looms are shuttle-less, and the majority of India's total cloth production and processing is in the unorganised sector. Technology absorption on a pan-industry basis will be dependent upon the larger players being proactive in absorbing newer technologies and ramping up production efficiencies.

 

• Human resources. A shortage of skilled 'textile specific' people is going to be a hurdle to growth unless concrete measures are undertaken to plug this gap. Stringent labour laws also make it difficult for flexible employment generation.

 

Sales of the Company grew from Rs. 14207.000 millions to Rs. 18246.800 millions representing a rise of 28.4% over the previous year. Growth in total income was 30.6% over last year, on the back of a Rs. 334.300 millions gain in exchange difference while repaying External Commercial Borrowings (ECB). This exchange difference income was generated through appropriate hedging strategies adopted by the Company, while taking into account a repayment of JPY 11.8 billion loan. Net material consumption as a percentage to sales went down to 57.2% in FY 2007 from 59.7% in FY 2006; thus reflecting greater cost efficiencies through the backward integration initiatives and better realisations. Increases in capacities and production facilities have also brought about increases in people needs. As stated earlier, The company's headcount as on 31 March 2007 was 9,116 as against a headcount of 6430 in 2005-06. This has contributed to the increase in manpower costs by 71.1% from Rs. 280.400 millions to Rs. 479.700 millions. Manpower costs as a percentage to sales also increased from 1.9% to 2.6%.

 

Operating profit before depreciation, interest and taxation (Operating PBDIT) grew 36.4% over last year to Rs, 410960.000 millions in FY 2007. Taking into account extraordinary income by way of exchange gain of fls. 334.300 millions, the Company's overall PBDIT grew by 47.5% to Rs. 4443.900 millions in 2006-07.

 

Overall borrowings grew from Rs. 21445.000 millions in 2005-06 to Rs. 33367.600 millions in 2006-07, representing an increase of 55.6%. Consequently, interest costs went up by 33.3% from Rs. 667.800 millions in FY 2006 to Rs. 890.400 millions in FY 2007. Interest Cost as percentage to sales also increased to 4.88%, as compared to the previous year's figure of 4.70%.

 

The company's gross fixed assets have grown to Rs. 29542.000 millions a growth of 39.2% over the previous year's figures of Rs. 21218.900 millions. This has been due to capitalization of the Phases I and II projects and capital work-in-progress of the Phase III projects. Consequently, depreciation for the year has also increased by 52.9% over the previous year to Rs. 1230.400 millions from last year's figures of Rs 804.800 millions.

 

• In spite of higher interest and depreciation charges, profit before tax (PBT) of the Company grew 50.9% over last year to Rs. 2323.100 millions. Excluding the extraordinary income of Rs. 334.300 millions, the Operating PBT was Rs. 1988.800 millions, which represents a healthy 29.1% growth over the previous year.

 

The company's overall tax impact for the year has increased by 50.6% over the previous year from Rs. 447.900 millions to Rs. 674.500 millions, which is mainly on account of an increase in current and deferred taxes and is in line with the Company's increased profitability.

 

Profit after taxes (PAT) rose to Rs. 1648.600 millions in FY 2007, an increase of 50.9% over last year. In pure operating terms (excluding the post-tax value of extraordinary income), PAT has increased to Rs. 1351.800 millions an increase of 23.8% over last year.

 

The Institute of Chartered Accountants of India (ICAI) has revised its Accounting Standard 15 (AS-15) regarding the method and items to be considered for charging as unclaimed employee benefits (medical, leave travel assistance and other encashable leaves).

 

The Institute has also recommended a change in the method of computing the actuarial value of such future transactions. Although recommendatory for 2006-07, the company has voluntarily complied with these recommendations.

 

Till the end of March 2007, the division had generated exports worth Rs. 841.400 millions, which represents 4.6% of the total revenues of the Company. Exports have been to Pakistan, China, Canada, Portugal and Vietnam. China and Turkey are expected to be important markets for this division. In the domestic market, the company plans to address the yarn requirements of 'premium segment' fabric manufacturers.

 

Apparel Fabric

Apparel Fabric as a business is segregated into two major sections - weaving and knitting, both with back-end processing facilities. The company's fabrics cater to international labels as well as to the top Indian exporters.

 

Weaving

The company commenced weaving operations in -1991. Today, the Company's two units at Silvassa and Dadra have 1,160 looms (598 wider width looms; 564 apparel width looms), with a total capacity of 102.7 million metres - the largest shuttle-less weaving capacity in India. The company manufactures a wide range of apparel width fabric - from coarse weaves to superfine weaves including plain, twill, drill, jacquard, satin and dobby. The Company is now focused on manufacture of value-added yarn dyed fabrics and trouser fabrics.

 

The removal of the quota system last year has thrown up major opportunities for India - especially in the garment export market. To cash in on these opportunities, the company is expanding its weaving capacity for apparel fabrics by a further 288 looms with an additional installed capacity of approximately 25 million metres.

 

Knitting

The company, which started its knitting operations in 1997 at Silvassa, currently has 171 machines, with a total installed capacity of 16,800 TPA. The knitted fabric is used for the company's in-house demand for garments; it is also supplied to garment manufacturers for the domestic and the export markets.

 

With the clothing culture changing from a formal to a more casual look, even in office-wear, the knits business is expected to show" significant growth in both menswear and ladies' garments. The company has, therefore, planned a major expansion in capacity.

 

 

 

Processing

Indian garment exporters had always faced a shortage of high quality processed fabrics (both knit and woven). The company addressed this issue by setting up modern, eco-friendly textile processing units in Navi Mumbai and Vapi.

 

The Navi Mumbai unit has a capacity of 22.5 million metres p.a. of cotton/viscose woven fabrics and 3,000 TPA of cotton knitted fabrics. The Vapi unit is the largest processing unit in the country, with the widest range of processing capabilities. It has a capacity to produce 60 million metres p.a. of 'wider width' fabrics for home textiles as also 60 million metres p.a. of 'normal width' fabrics, which are mainly sold to garment exporter’s who.are vendors for internationally acclaimed labels. Additionally, the Vapi unit has capacity for processing 13,800 TPA of knitted fabrics and 3,000 TPA of yarn

dyeing.

 

The abolition of quotas has provided the fabrics business further scope for growth. The Company, therefore, is adding further processing capacity across all its product lines. The company is also in the process of adding a 6,700 TPA terry fabric processing line, which is expected to start operations in FY 2008.

 

To bring designs and samples to fruition within the shortest possible lead time, the company has also added a facility for textile designing and sample weaving. This allows the Company to develop design concepts in-house, as well as quickly translate a customer design into a sample.

 

On an overall basis, the division grew at 23.2% over last year to Rs. 8968.200 millions. The woven business grew 20.6% from Rs. 6661.000 millions to Rs. 8033.000 millions. Although currently occupying a relatively smaller share of the 'business pie', the knitting section showed 62.2% yearon- year growth to achieve Rs. 790.000 millions of sales. Knits are expected to grow substantially in the near future and contribute to a larger of the apparel fabric business. The company has been actively looking for opportunities for inorganic synergy, one of which is the Mileta acquisition.

 

The Mileta acquisition

In April 2007, the company acquired 60% of the equity of Mileta; a 'top of the line' integrated textile entity situated in the Czech Republic. Mileta is one of the largest totally integrated textile enterprises in Europe. The company manufactures handkerchiefs, shirting fabrics, table linen and bed linen, brocade, damask, batiste with satin checks. It also produces jacquard handkerchiefs for Africa. Mileta exports 90% of it's production to Europe, North and South America, Africa, Middle East, Far East and Australia, employs about 550 employees and has a turnover of USD 30 million.

 

Mileta brings four major advantages to The company: (a) product know-how for producing high-value added fabrics; (b) product and design development support; (c) access to Mileta's markets, distribution chain and customer base; and, lastly, (d) the acquisition of Mileta's internationally recognised brands (Mileta, Erba, Cottonova, Lord Nelson and Wall Street), which would be introduced to both the Indian and International markets.

 

The Company has also been actively exploring new markets and developing new product categories for value-added apparel fabrics.

 

New Product Categories

So far, the company has focused on the garment exports sector for its apparel fabrics. The company has been also exploring avenues for growth in the emerging apparel fabric segments, among which are the following.

 

° Work-wear, encompassing industrial work-wear fabrics and garments: overalls, boiler suits, protective clothing, water resistant /fire retardant clothing, high visibility fabrics, etc. The Company is finding encouraging response from this area.

 

High value fashion fabrics. The company is currently exporting exclusive 'branded' fabrics with proprietary designs and pre-committed volumes to European designers and design firms. These fabrics fetch considerably higher realisation per metre due to the exclusive nature of their prints and designs.

 

• Defence and institutional wear. These are jungle prints for the armed forces, supply parachute fabric, flame retardant and infrared retardant fabrics. This is a large volume business, driven through the 'tendering' process. The company is in preliminary discussions and evaluation with the purchasers of such fabrics.

 

The company believes in the sustainability of raw material resources, development of ecologically friendly products and supporting the farmer through fair trade practices and prices. To that effect, the Company has been at the forefront of manufacturing fabrics and garments out of organic cotton: an alternative that is not only more environment friendly but is also the way of the future. Major global buyers are increasingly shifting to 'organic cotton' products, for which they are willing to pay a premium. The company has already been supplying organic cotton fabrics to global suppliers and converters for global garment labels. The Company wishes to increase its volume of organic cotton fabrics, and is also actively assisting farmers to transition to growing organic cotton. In fact, the company already as an exclusive tie-up for buying approximately 175,000 bales of organic and 'fair trade' cotton: a move that would actively boost the 'organic cotton' initiative.

 

Home Textiles

The company's is a leading player in this segment with a present capacity of 60 million metres per annum. The Company is currently India's largest producer and exporter of bed linen. India's shipments on the home textiles front have increased through the years - especially cotton textiles - and the Company feels that this segment is a major growth area, both in the domestic and in the international markets. The company is, therefore, scaling up its capacity to 82.5 million metres per annum by the end of FY 2008, through the addition of one more continuous processing line and 378 looms.

 

The company is also adding a terry towel manufacturing facility of 6,700 TPA at Vapi, which is expected to commence production by the end of FY 2008

 

The home textiles segment contributes 18.3% of the total revenues of the Company. Export sales grew by Rs. 241.700 millions in FY 2007, representing a growth of 8.1% over the previous year. In the export market, the Company has notched up some impressive achievements during the last year. During the previous year, The company has emerged as amongst the largest global exporter of bed-sheets to the US markets. The company has also introduced 'top of the bed' lines into the export market. The Company has also been working with clients for ongoing replenishment programmes, which would allow long-term production planning. In order to interact with retailers and purchasers at their point of convenience, the company has also opened an office-cum showroom in New York, USA.

 

Though the US is a major export market, the company is also exploring opportunities in South America, Europe and Central European nations. The domestic market also offers significant growth opportunities for the Company's products.

 

Garments

Opportunities for growth in the garments business has been increasing, thanks to the removal of quotas and the growing acceptance of Indian garments manufacturers as suppliers of quality products at competitive prices. Looking at this, the company entered this segment, with an initial capacity of 1 million pieces per annum. The current capacity of 8 million pieces per annum is being enhanced to 15 million pieces p.a. at Silvassa by FY 2008.

 

The company manufactures knitted and woven outerwear garments - mainly ladies' tops, children wear and some menswear items. Over a short period of time, the company has developed strong customer relationships with big 'fashion label' houses and retailers. These garments are designed according to the latest fashion trends and often according to specific designs mandated by the buyer the company's garments business is driven through exports, though a small volume is now being sold through its in-house retail channel (about which we shall discuss in a separate section). During FY 2006-07, the garments business grew 94.7% over last year, reaching a value of Rs. 290.300 millions. Although this growth is on a small base figure, garments export is an area where the company sees profitable business opportunities. Being a preferred/nominated supplier of apparel fabrics to international garment manufacturers, retailers and brands, the approval process for garments would become easier and faster.

 

80% of the company's garment exports are sold in the EU countries, with the balance 20% to the USA. The company has established 'supply relationships' with large retail chains in these markets. As a strategic initiative and as a measure to accelerate growth in this segment, the Company proposes to spin off this division into a 100% subsidiary. The company expects that this move will enhance shareholder value as well as sharpen operational focus. The subsidiary would also be involved in enhancing capacity through joint ventures using a 'step-down' model.

 

POY and  Texturising

The company's partially oriented yarn (POY) and texturising units are situated at Silvassa. The POY unit has a capacity of 54,000 TPA. The unit produces a wide variety of POY including 'high value-add' micro-filament yarn, most of which is used in the company's draw texturising yarn (DTY) plant, with a small part of it being sold to third parties. Conversely, a small amount DTY is used in-house; most of the material is sold in the domestic and export markets.

 

The production of man-made filament yarn is approximately 1,180 million kgs per annum with a CAGR of 9.11% over a decade. There are a number of small spinning units who cater to the market; however, the company is second largest player in the country in DTY production.

 

The Company feels that the demand for DTY will be on an upward curve in both the international and domestic markets; the company plansn 'to exploits this opportunity by increasing capacities over a period of time. Concurrently, the backward integration into POY has helped in cost reductions and improved margins for the division. The company is also looking at manufacturing Polyethylene Terephthalate (PET) chips and enhancing POY capacity through the continuous polymerisation (CP) route to 182,500 TPA.

 

As on 31 March 2007, the company had a 75,500 TPA capacity for texturising. Expansion of the texturising capacity to 118,000 TPA is already in the pipeline, which is expected to complete by the second quarter of FY 2008.

 

In FY 2007, this division grew 30.4% in value terms to Rs. 4801.000 millions, mainly due to a large growth in export sales. During the year, the company exported DTY to Latin America, Bangladesh and Turkey. Focus on exports also helped in gaining greater margins per tonne. As a result of its impressive growth, POY and  Texturising increased its overall share of total revenues from 25.9% in FY 2005-06 to 26.3% in FY 2006-07.

 

The company is looking to open up market opportunities for DTY in the East and Central European nations, and increase export volume of POY and DTY to the Middle East and North Africa.

 

Export Geographies

In FY 2007, 35% of the company's revenue in its various divisions came from exports. This section analyses the company's business by geographies. The share of export revenue as a percentage to total operational revenue increased from 27.8% to 35.2%. This export growth is testimony to the growing stature of the company in the world market as a quality supplier of textile solutions. Chart B represents the distribution of the company's business into domestic and export.

 

The company sells its products to more than 50 countries across the world. The comparative geographical spread of business during FY 2006-07, vis-a-vis the previous year is represented in Chart C.

 

The company has adopted a strategy of expanding its footprint into different geographies. Though the US remains an important market for its products, the Company is also exploring opportunities in Latin America, Central Europe, the Middle East, Africa and Russia. The Mileta acquisition fits in well with this strategy. Mileta's plant in the Czech Republic would become a European manufacturing base for 'top of the line' fabrics (especially in shirting); the acquisition also opens up high value clients in Europe, Africa and Japan.

 

New Horizons

Retail

During the year, the company has started operations in the retail segment. 'H and  A' is a Value for money' retail format, where the company sells garments and home textiles. The range of products includes 'ready to stitch' and embroidered fabrics, garments, 'salwar kameez dupatta' (SKD) sets, saris, bed linen and terry towels.

 

Till the end of FY 2007, 'H and  A' set up ten stores - seven in and around Mumbai, and one each at Vapi, Pune and Bangalore. In line with the Company's strategy for growing its presence in the domestic market, the company will sell a part of its apparels and home textile products through this store brand. Organised retailing is projected to grow at an annual rate of over 25%, to reach Rs. 1000000.000 millions from its present level of Rs. 350000.000 millions. As a step towards becoming a significant player in this lucrative sector, the company is strategically transferring this business to a 100% subsidiary. The company expects that this exercise, while creating the right environment for rapid growth will simultaneously increase shareholder value. A By the end of FY 2008, The company, through its subsidiary, plans to roll out about 100 "H and A’ stores. The Company expects that, by 2010, with 500 stores in place, it would have achieved a pan-India presence and high consumer recall.

 

Brands

Hand a Retail store in Andheri (West), Mumbai, and inside view of the shop. For the domestic market, the company has signed a trademark license agreement with Peacock Alley, a premium manufacturer and importer ofmluxury bed and bath linens in the USA. The company will market its premium category home linens range in India under the 'Peacock Alley' brand, with Peacock Alley providing the design and marketing inputs. These products would be available across all major departmental stores and exclusive MH8N* home textile outlets.

 

The Company is also in the process of introducing 'Wall Street' as a premium brand for men's formal shirtwear. 'Wall Street' has come into the company fold through the Mileta acquisition, and is to be launched shortly in the Indian markets.

 

Textile SEZ and real estate

The company has promoted a wholly-owned subsidiary, the company Infrastructure Private Limited (AIPL) for the development of a textile Special Economic Zone (SEZ) at Silvassa, spread over of 183.69 acres. AIPL has obtained an 'in principle' approval from the Government of India for this purpose and the final approval is expected shortly. In addition to leasing the SEZ to outside textile units, the company also intends to put up a part of its operations at this location.

 

AIPL has also acquired two prime properties in Mumbai, with a total floor area of about 640,000 square feet. AIPL will actively pursue similar avenues for growth and value addition.

 

Expansion Plans: Phase IV

Indian textile exports have always been globally competitive, when compared on price and quality parameters. The major roadblock to growing the exports market has been the lack of capability to deliver large volumes within short lead times. If this is addressed, the Indian textile industry has the potential to become increasingly well-regarded as suppliers of quality products in the global market. Indian government, recognising this potential, has also encouraged investment in this sector by extending the Technology Upgradation Fund Scheme (TUFS) till 2012.

 

The company has identified the following elements as its key drivers to sustain its growth path and successfully compete in the global textiles space:

 

(a) Integration - both backwards and forwards - to create self-reliance, cost efficiencies and value addition at different steps of the textile chain;

 

 (b) Develop itself as a vendor offering 'integrated textile solutions' with design and product development support;

 

(c) Global production capacities for economies of scale; (d) low lead time to market; and (e) greater efficiencies in the production process. To ensure the company's growth and to increase its market-share, the Company has been expanding and modernising its capacities.

 

As stated in last year's report, the company had started implementing Phase III of its expansion drive, which includes increase of capacities in spinning, weaving and processing, garments and texturising. Large parts of the Phases I'and II of the expansion programme have now been commissioned and stabilised; the terry towel unit is likely to be completed by the end of this financial year, along with the Phase III expansions.

 

The Company now proposes to further increase capacity, by March 2009, in the following areas, as part of its Phase IV expansion.

 

Ring Spinning. The proposed increase of 100,800 spindles, translated to 9,750 TPA of production, would increase the company's ring spinning capacity 30,000 TPA. This would then meet around 50% of its estimated future yarn requirements in-house. At the end of the expansion programme, the company's spinning capacities of 30,000 TPA and 352,800 spindles is expected to be one of India's largest at a single location.

 

• Apparel Fabric

Apparel knit fabric. Knitted fabric shows strong demand both in the domestic and in the international market. To exploit this opportunity, the company will expand its knit and knit processing capacities by 50,400 TPA to 67,200 TPA. This would make the company one of the largest producers of knitted fabric in the world.

 

Apparel woven fabric. The company is a market leader in the woven fabric segment. There is a growing demand in this segment and the Company wishes to strengthen its leadership position and, therefore, proposes to increase its processing capacities by 22.5 million meters.

 

By the end of FY2009, the Company would have, in addition to its terry towel fabric and yarn dyeing capacities, enhanced its processing capabilities to 82.5 million metres p.a. for wider width fabrics, 105.0 million metres p.a. for apparel width fabrics and 67,200 TPA for knits.

 

• Garments. Garments form an important segment of the textile value chain. The Company now wishes to add a further 1,000 machines with an installed capacity of 7 million pieces p.a. at its proposed SEZ at Silvassa. Post expansion, the garmenting capacities will move upto to 22 million pieces p.a.

 

• Made ups. Home textile products have a large market in Europe and the USA. The company needs to grow its in-house stitching capacities to be able to fully match its 'wider width' processing capabilities. To that effect, it proposes to add a further 3.75 million pieces per annum in stitching capacity, thereby taking it to a total of 13.75 million pieces p.a.

 

• Power Plant. The company's spinning, weaving, knitting and texturising plants, located at Silvassa, currently need about 30 MW of power; the demand is expected to double after the expansion. To cater to this rise in demand, de-risk the concern of power shortages and hedge against the possibility of rising power costs, the company wishes to increase its current 10 MW captive power production to 60 MW. The new captive power plant would be a 'dual fuel' plant, using furnace oil or gas The total cost of these expansions is expected to be in the region of Rs. 11800 Millions; Rs. 9500 Millions of this would be debt-funded under TUFS and the balance would be met through internal accruals. After the completion of the Phase IV expansion, the company would become a global sized player in each of its business divisions. Tables 14 and 15 list the company's current and the increased capacities in various production areas.

 

The company is in trade terms with:

·         Embassy Silicones (India) Private Limited

·         Happy Hardware

·         Keshari Enterprises

·         Sumedha Fiscal Services Limited

·         B R Corporation

·         Atmaram Maneklal Industries Limited

·         Bindu Synthetics Limited, Silvassa, Vapi, Gujarat

·         Professional

·         Esha Exim Private Limited

·         Century Textile and  Industries Limited

·         Century Bhavan

Contact Person :  Mr. Sultan

 

·         Bharat Petroleum Corporation Limited, Chembur

Contact Person :  Mr. M. L. Mahadevan

Tel No. 91-22-25543493

 

·         Ciba Speciality Chemical (India) Limited

Contact Person :  Mr. S. Kumar

 

·         Vardhaman Spinning Limited

Contact Person :  Mr. B. K. Jain

Tel. No. 91-22-28578823News:

 

FIXED ASSESTS

 

·         Freehold Land

·         Leasehold land

·         Factory Building

·         Office premises

·         Plant and machinery

·         Computer and Peripherals

·         Office equipments

·         Furniture and fittings

·         Vehicles

·         Tools and Equipment

 

AS PER WEBSITE

Origin and Growth

Established in 1986 as a private limited company, the company began with texturising of yarn and steadily expanded into weaving, knitting, processing, home textiles and readymade garments. The company also controls an extensive embroidery operation through its sister concern, Grabal Alok Impex Limited

In 1993, they became a public limited company. Since then they have continued to increase the scale of their operations and the range of their activities. Today, the company is amongst the A Group listed companies on India's leading stock exchanges.

In less than two decades, the company has grown to become a diversified manufacturer of world-class home textiles, apparel fabrics, garments and polyester yarns selling directly to manufacturers, exporters, importers, retailers and brands the world over. With the sales turnover of around Rs. 12500 Millions in F.Y. 2004-05, The company is amongst the fastest growing vertically integrated textile companies in India.

Infrastructure

The company is fully geared for innovation and product developments… manufacturing and quality assurance. Spread over 6 locations in Navi Mumbai, Vapi and Silvassa, their major plants are backed by 100% captive power, global standard effluent treatment units, high standard facilities for their manufacturing, product development and marketing teams, enabling us meet their customers' expectations in terms of precision, quality, in-time delivery, environmental and social concerns.  

Total Quality Assurance

 

A huge investment in their sophisticated, ISO 9001:2000  compliant world-class testing lab is the reflection of The company’s commitment, confidence as well as philosophy towards maintaining global standards.     

  

Passionate Quality Management has endeared the company to its highly demanding customers. They have empowered themselves with one of the finest in-house textile testing laboratories in India, equipped with the world’s best testing equipment from Datacolour, Macbeth, Werner Mathis and James Heal.

 

Right from the inputs like yarn, dyestuffs and chemicals, every batch of fabric is tested for weaving and knitting standards, colour fastness under different conditions, strength, consistency, and all pre-defined parameters of their own and of course, their customers.

 

Board of Directors

 

Mr. Ashok  Jiwrajka - Executive Chairman Commerce graduate with 29 years of experience in the marketing of textiles.Responsible for the marketing and exports of the company.

 

Mr. Dilip Jiwrajka - Managing Director Science graduate with a diploma in Business Entrepreneurship and Management. 25 years of experience in the manufacturing and trading of fabric for the garment industry. Responsible for the weaving and processing divisions and overseeing the strategic planning, administration, finance functions and overall working of the company.   

 

Mr. Surendra Jiwrajka - Jt. Managing Director Commerce graduate with 23 years of experience in the trading and manufacturing of yarn, implementation of projects and marketing of knitted fabrics/Texturised yarn. Responsible for the manufacturing, marketing and purchase functions of the yarn and knitting divisions. Overseeing the implementation of projects of the company.  

 

Mr. Chandrakumar Bubna - Executive Director Mr. Bubna has over two decades of experience in textile marketing.  He helps in formulating the company’s sales and marketing strategy and overseas its implementation in the Northern region of India.

 

Mr. Ashok Rajani - Director Mr. Rajani is the former President of  The Clothing Manufacturers’ Association of India and the Vice-President, Western Region, Apparel Export Promotion Council, the apex body of the Indian garment export industry.

 

Mr. K.R. Modi - Director A senior partner in Kanga & Company, one of Mumbai’s leading law firms. He is well-versed in issues relating to company law, property matters and other allied acts.

 

Mr. K.J. Punnathara - Director Mr. Punnathara, Executive Director(Estates), Life Insurance Corporation of India is their nominee on the board.

 

Mr. K.C. Jani - Director Mr Jani, General Manager, IDBI is their nominee on the board.

 

Mr. A.K. Bhan - Director Mr. Bhan, is the nominee director of IFCI Limited

 

Mr. R.J. Kamath - Director Mr. Kamath, is the nominee director of Industrial Development Bank of India Limited. 

 

Mr. S. Sridhar - Director Mr. Sridhar, is the nominee director of Export Import Bank of India.

 

Mr. Tim Ingram - Director Mr. Ingram, is presently the Chief Executive of Caledonia Investments Plc., a London based investment company. He has wide experience in the fields of international banking and finance. 

 

Major Milestones

 FY 1989

Setting up manufacturing facilities for Texturising at Silvassa. (1 no. Texturising machine). 

 FY 1991

Commencement of weaving operation at Bhiwandi, District Thane.

 FY 1993

Conversion into Public Limited Company and IPO of 22,50,000 equity shares of Rs.10/- each for cash at a premium of Rs.10/- each per share aggregating Rs. 45 Millions to part finance Weaving capacity (50 nos. Cimmco looms) at Bhiwandi and expansion of Texturising capacity (1 no. Texturising machine) at Silvassa. 

 FY 1994

Expansion of weaving capacity (50 Cimmco Looms) at Bhiwandi and texturising capacity (3 nos. Texturising machines) at Silvassa. 

 

Turnover of Rs. 500 Millions achieved. 

 FY 1995

Financial and Technical collaboration with Grabal, Albert Grabher Gesellshaft mbH & Co of Austria for manufacture of embroidered products through a Joint Venture Company viz. Grabal Alok Impex Limited

 FY 1996

Setting up of Knitting Division at Silvassa (8 machines) and state-of-the-art eco-friendly Process House at Navi Mumbai (3 Stenter). 

 

Turn over of Rs.1000 Millions achieved. 

 FY 1997

Expansion of Texturising capacity (5 nos. Texturising machines) at Silvassa. 

 

Turn over of Rs. 1500 Millions achieved. 

 

Completion of Rights Issue of 7490192/- equity shares of Rs.10/- each at a premium of Rs.10/- per share aggregating to R.149.804 Millions to part-finance the process house and knitting projects. 

 FY 1998

Modernization and expansion of weaving (24 Sulzer Projectile Looms) at Silvassa. 

 

Private placement of 9142700/- equity shares of Rs.10/- each at a premium of Rs.7.50 per share aggregating to Rs.160 Millions with FIIs. 

 FY 1999

Expansion of weaving (28 Sulzer Projectile Looms) and knitting capacities (20 machines) at Silvassa. 

 

Turn over of Rs. 2500 Millions achieved. 

 FY 2000

Turnover surpasses Rs. 3500 Millions. 

 FY 2001

Undertaken expansion of weaving and processing capacities under TUFS at an aggregate cost of Rs.1900 Millions. 

 

Foray into the domestic ready-made Garments sector (OWL Brand). 

 FY 2002

Rights Issue of 5670098/- FCDS of Rs.90/- each aggregating to Rs.510.300 Millions to part-finance the weaving and processing projects. 

 

Completion of Modernisation and Expansion of weaving project (88 Air Jet / Rapier Sulzer Looms) at Silvassa. 

 

Expansion of knitting capacities (28 machines) at Silvassa. 

 

Turnover surpasses Rs. 5500 Millions.  

 FY 2003

“Export Trading House” Status awarded. 

 

Completion of Modernisation and Expansion of processing project at Vapi. (2 Stenters). 

 

Expansion of Texturising Capacity at Silvassa (10 machines). 

 

Setting Up of Garment Unit at Navi Mumbai (100 stitching machines). 

 

Turnover Surpasses Rs. 7500 Millions. 

 FY 2004

Turnover surpasses Rs.10000 Millions. (Exports exceeded Rs.1000 Millions).

 

Expansion of Texturising Capacity at Silvassa (30 machines). 

 

Expansion of Knitting Capacity at Silvassa (40 machines). 

 

Expansion of Weaving Capacity at Silvassa (170 Airjet / Rapier Looms). 

 

Foray in to Home Textiles (Bed Sheets) for Direct Exports. 

 

Concluded Mezzanine Finance Transaction of Rs.1010 Millions (Rs.680 Millions Redeemable Preference Shares and 330 Millions warrants) arranged by CLSA. 

 

Preferential allotment of 538890 Equity shares of Rs.10/- each at premium of Rs.55.67 to Body Corporate. 

 FY 2005

Completed FCCB issued of USD 35 mn (Rs. 1530 Millions) comprising of 1400 Bonds of USD 25000 each. Out of these bonds, 1380 bonds have been converted into 31870334 equity shares of Rs. 10/- each at an average price of Rs. 49.68 per share. The proceeds of the issue are used for augmenting long term margin for working capital, repayment of debt and normal capex. 

 

Preferential allotment of 11311400 Equity shares of Rs.10/- each at premium of Rs.51/- per share (promoters 5573700 and IL & FS 5737700) aggregating to Rs. 690 Millions. The proceeds of the same are used to part finance the expansion programme of the Company. 

 

Conversion of 1450000 OFCDs (part) issued to LIC into 2604634 equity shares of Rs. 10/- each at a premium of Rs.45.67 per share. 

 

Exports exceeded Rs. 3000 Millions. 

 

Expansion of Weaving Capacity at Silvassa (170 Airjet / Rapier Looms). 

 FY 2006

Texprocil Silver Trophy for 2nd Highest export award in the Manufacturer Exporter – Made ups Category. 

 

Completed FCCB issue of USD 70 mn about Rs. 3062.500 Millions (Assumed price 1 USD=43.75) in May and June 2005. 

 

Conversion of balance 1450000 OFCDs issued to LIC into 2604634 equity shares of Rs. 10/- each at a premium of Rs.45.67 per share in June 2005. 

 

Conversion of 5966400 warrants into 5966400 equity shares of Rs. 10 each for cash at a premium of Rs. 45.67 per share by Niraj Realtors & Shares Private Limited (purchased from TAD (Mauritius) Limited .) in the month of  August 2005. 

 

Completion of wider width weaving and processing under Rs. 10700 Millions project in October 2005. 

 

Setting up of new plant for processing of knitted fabric at Vapi and POY plant at Silvassa. 

ATED TEXTILE SOLUTIONS

MEDIA RELEASE

 

Alok Industries FY08 net sales up by 18.34% at Rs 2159.25cr

PAT up by 23.79% at Rs. 167.34 Crore

 

Alok Industries Limited, one of the leading integrated textile companies in India, today reported a Net Sales of Rs 724.79 crore for the quarter ended March 31, 2008, a jump of 26.25% as against Rs 574.08 crore posted in the same period of the last fiscal.

 

Operating Net Profit for the fourth quarter stood at Rs 60.98 crore, a growth of 24.45% as compared to Rs 49.00 crore posted in the same period of last year. The operating margin for Q4 FY08 was at 24.89% as against 23.34% recorded in Q4 FY 07.

 

Net sales for the year ended March 31, 2008 grew by 18.34% to Rs 2159.25 crore compared to Rs 1824.68 crore in the previous year, while operating net profit for the year ended March 31, 2008 rose by 23.79% to Rs 167.34 crore, as against Rs 135.18 crore posted in the same period of last fiscal. Earnings Per Share (EPS) for FY08 worked out to Rs 11.51 as compared to Rs 9.70 for the same period last fiscal.

  

Export Sales for the fourth quarter stood at Rs 385.45 crore, a growth of 50.16% as compared to Rs 256.69 crore posted in the same period of last year. The figure of Export Sales for 2007-08 rose by 59.87% to Rs 1025.87 crore as compared to Rs 641.71 crore in 2006-07. 

 

Commenting on the results, Mr. Dilip Jiwrajka, Managing Director, Alok Industries Limited said, “It is indeed a gratifying feeling to have record export growth in a year when the rupee was in an appreciation mode and generally testing conditions had set in towards the latter half of the year. All of which goes to prove that if one has the right size, right product, right quality and right price, then most challenges can be surmounted. We will consolidate operations this year and enhance efficiencies and endeavor to surpass expectations. In the course of last year, we also foot printed the real estate sector and expect to generate reasonable returns from this sector in the current fiscal.”

 

Alok’s Phase III and IV projects are progressing satisfactorily while its joint venture with the National Textile Corporation for two mills in Mumbai and Aurangabad is making satisfactory headway.

 

Alok’s real estate ventures are moving smoothly and its financing plans are also nearing completion with its merchant bankers hopeful of clinching a major deal shortly.

 

 

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.42.92

UK Pound

1

Rs.84.48

Euro

1

Rs.66.66

 

 

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

9

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--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

YES

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

66

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions