MIRA
INFORM REPORT
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Report Date : |
01.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SEASONS TEXTILES LIMITED |
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Registered Office : |
25, Feroze Gandhi Road, 1st Floor, Lajpat Nagar
– III, New Delhi 110 024 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
28.04.1986 |
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Com. Reg. No.: |
24058 |
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CIN No.: [Company
Identification No.] |
L18101DL1986PLC024058 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELS20598E |
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PAN No.: [Permanent
Account No.] |
AABCS0711J |
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Legal Form : |
A Public Limited Liability Company. The company’s shares are listed on the stock exchanges |
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Line of Business : |
Manufacturer, Exporter and Trader of furnishing fabric and
made-ups. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 663200 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having satisfactory
track. Trade relations are fair. Business is active. Payments are reported as
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
25, Feroze Gandhi Road, 1st Floor, Lajpat Nagar
– III, New Delhi 110 024, India. |
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Tel. No.: |
91-11-26821853 / 51716600 |
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Fax No.: |
91-11-29844250 |
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E-Mail : |
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Website : |
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Corporate Office/ Factory 1: |
B-18, Sector –5, Noida – 201301, Uttar Pradesh, India |
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Factory 2: |
A-29, Sector-5, Noida –201301, Uttar Pradesh, India |
DIRECTORS
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Name : |
Mr. Nanak Singh |
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Designation : |
Chairman |
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Name : |
Mr. Inderjeet S Wadhwa |
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Designation : |
Director |
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Name : |
Mr. Mandeep S Wadhwa |
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Designation : |
Director |
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Name : |
Mr. R K Gupta |
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Designation : |
Director |
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Name : |
Mr. C K Tikku |
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Designation : |
Director |
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Name : |
Ms. Neelam Wadhwa |
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Designation : |
Director |
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Name : |
Mr. K C Mehra |
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Designation : |
Director |
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Name : |
Mr. P K Hari |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Inderjeet S Wadhwa |
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Designation : |
Chief Executive Officer |
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Name : |
Mr. Rakesh Arora |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Manufacturer, Exporter and Trader of furnishing fabric and
made-ups. |
GENERAL
INFORMATION
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No. of Employees : |
300 |
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Bankers : |
Canara Bank |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K L Datta & Company Chartered Accountants |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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8000000 |
Equity Shares |
Rs. 10/- each |
Rs. 80.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6590300 |
Equity Shares |
Rs. 10/- each |
Rs.65.903
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
65.900 |
50.900 |
50.900 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
99.900 |
84.900 |
74.300 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
165.800 |
135.800 |
125.200 |
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LOAN FUNDS |
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1] Secured Loans |
129.600 |
94.800 |
79.800 |
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2] Unsecured Loans |
16.800 |
16.800 |
8.000 |
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TOTAL BORROWING |
146.400 |
111.600 |
87.800 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
312.200 |
247.400 |
213.000 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
183.700 |
168.100 |
142.000 |
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Capital work-in-progress |
16.500 |
4.900 |
1.300 |
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INVESTMENT |
0.000 |
0.000 |
5.500 |
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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 |
97.500
|
77.800 |
80.200 |
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Sundry Debtors |
71.000
|
54.500 |
36.900 |
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Cash & Bank Balances |
1.400
|
1.200 |
0.700 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
14.000
|
6.400 |
5.900 |
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Total
Current Assets |
183.900
|
139.900 |
123.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
70.800
|
64.800 |
58.800 |
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Provisions |
1.100
|
0.700 |
0.700 |
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Total
Current Liabilities |
71.900
|
65.500 |
59.500 |
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Net Current Assets |
112.000
|
74.400 |
64.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
312.200 |
247.400 |
213.000 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
293.400 |
296.200 |
273.100 |
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Other Income |
13.900 |
13.000 |
14.200 |
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Total Income |
307.300 |
309.200 |
287.300 |
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Profit/(Loss) Before Tax |
14.800 |
14.600 |
11.300 |
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Provision for Taxation |
7.300 |
4.000 |
3.900 |
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Profit/(Loss) After Tax |
7.500 |
10.600 |
7.400 |
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Export Value |
154.333 |
0.000 |
0.000 |
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Expenditures : |
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Selling & Administrative Expenses |
33.300 |
38.700 |
36.800 |
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Manufacturing Expenses |
49.300 |
33.000 |
25.400 |
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Raw Material Consumed |
152.600 |
172.800 |
173.800 |
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Power & Fuel |
9.400 |
7.900 |
7.000 |
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Increase/(Decrease) in Finished Goods |
1.100 |
2.200 |
[5.000] |
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Salaries, Wages, Bonus, etc. |
13.000 |
10.800 |
10.100 |
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Interest |
15.300 |
12.600 |
13.600 |
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Depreciation & Amortization |
16.300 |
13.600 |
12.700 |
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Other Expenditure |
2.200 |
3.000 |
1.600 |
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Total Expenditure |
292.500 |
294.600 |
276.000 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales Turnover |
69.500 |
74.200 |
104.800 |
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Other Income |
0.000 |
0.600 |
0.500 |
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Total Income |
69.500 |
74.800 |
105.300 |
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Total Expenditure |
56.900 |
61.800 |
89.600 |
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Operating Profit |
12.600 |
13.000 |
15.700 |
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Interest |
4.700 |
4.300 |
6.200 |
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Gross Profit |
7.900 |
8.700 |
9.500 |
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Depreciation |
4.300 |
4.300 |
4.300 |
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Tax |
0.500 |
0.800 |
1.000 |
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Reported PAT |
2.900 |
3.600 |
4.200 |
KEY RATIOS
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PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
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PAT / Total Income |
(%) |
2.44
|
3.42 |
2.57 |
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Net Profit Margin (PBT/Sales) |
(%) |
5.04
|
4.92 |
4.14 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
3.85
|
4.67 |
4.23 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.08
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0.10 |
0.09 |
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Debt Equity Ratio (Total Liability/Networth) |
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1.32
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1.30 |
1.17 |
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Current Ratio (Current Asset/Current Liability) |
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2.56
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2.14 |
2.07 |
LOCAL AGENCY
FURTHER INFORMATION
BUSINESS
OPERATIONS:
During the period under review, the net sale has insignificantly improved to Rs. 305.608 millions (Rs. 304.552 millions in 2005-06). Profit before interest, depreciation and tax for the year increased to Rs.46.349 millions from Rs.40.691 millions during the preceding year. However Profit after Tax during the year 2006-07 has declined to Rs.7.511 millions (Rs.10.545 millions in 2005-06).
FINANCE:
Due to increase in borrowings coupled with increase in bank interest rates,
interest and financing costs have increased from Rs. 12.588 millions Rs.15.329 millions.
MANAGEMENT DISCUSSION
and ANALYSIS:
COMPANY
OVERVIEW:
The company is a widely held flagship Company of Seasons Group. The Company was formed in the year 1986. The present business of the Company is to manufacture, export and trading of furnishing fabric and made-ups. The Company came with its Initial Public Offer in the year 1993.
The Company has 11808 shareholders. At present the shares of the Company are listed on Stock Exchanges at Delhi, Mumbai, Ahmedabad, and Kolkatta.
The Company is progressing well under the able leadership of Shri Inderjeet Singh Wadhwa, CMD of the Company, a recipient of Udyog Patra Award. The Employees strength of the Company is more than 100 people. During the fiscal 2006-07 the net turnover of the Company was Rs. 305.608 millions.
BUSINESS OVERVIEW:
PRODUCTION:
The Company's philosophy is to provide a safe, healthy and eco-friendly
atmosphere conducive to the men and machines. During the year the Company
produced 1030170 Mtrs. of quality furnishing fabric against its installed
capacity of 1313205 Mtrs. To ensure international quality standards the Company
is using the latest technology and is converting its existing looms to adopt to
the latest technology, in a phased manner. As a part of its modernization
scheme the Company installed 5 shuttle less looms during the year2006-07. At
present the Company has 25 fully automatic shuttle less looms with electronic
jacquard. To be competitive both in export and domestic market, continuous
improvement in productivity and quality have always been the focus areas of the
Company.
In order to integrate the production facilities and give effect to its
expansion-cum -modernization plans, the Company had applied for land to HSIIDC
and it has been allotted land admeasuring 8,100 sq. mtrs. at Barhi, Distt.
Sonepat, Haryana. Possession of this plot of land has been taken over and the
Company plans to set up a state of the art plant to manufacture furnishing
fabrics and made ups.
DESIGNING:
The Company has always worn the crown of being a trendsetter in the house
of furnishings that has redefined elegance with the perfect amalgamation of
class and ethnicity. The unique spell binding patterns that are set amidst a
celebration of colours have always been the global favorite of those who prefer
to give a designer touch to their interiors. The in house Design Studio with a
talented team of designers who go to a great extent just to ensure that every
design, colour and thread woven not only attract the gaze of every connoisseur
but also becomes a rage in the arena of furnishings.
To keep abreast with the latest trends and customers taste as also to show case
its designs and manufacturing strengths, the Company has been participating in
international fairs and exhibitions. During the year the Company participated
in international fairs and exhibitions at `Decosit' in Brussels and `Como' in
Italy. During the year the Company has developed about 450 Designs in its own
Design Studio which were well received in the market.
The Company could successfully introduce Outdoor furnishing fabric which
can withstand 1,000 hours of light. It has also introduced Fire Retardant
Fabric for hospitality industry. For the first time, the Company introduced
velvets, embroidery, flocks and prints, to coordinate with their Jacquards in
International Fair at `Como' Italy.
MARKETING AND
EXPORTS:
The Company has been exporting its products to US, Middle East - Dubai and Asian Countries - Hongkong, Singapore, Phillipines, Malaysia and Indonesia.
The export turnover of the Company during the current fiscal has increased to Rs.154.333 millions from Rs.138.901 millions during the previous financial year.
With an impressive global presence, the Company has also carved an identity of
its own in the domestic furnishing scenario. However, during the period under
review, the domestic turnover has declined to Rs.139.121millions as compared to
last year's Rs. 157.250 millions.
The insignificant growth in turnover of the Company is mainly due to
devaluation of US dollar in comparison to INR which would otherwise had been 8
to 12% more than the present.
During the year the Company started Velvet Exports which have been well
received in the International Market. Export of made-ups of furnishing fabrics
has given encouraging results and expected to give good results in the time to
come. The Company has tapped new potential buyers in US namely Robert Allen,
Arcom and Maco. Besides, the Company also supplied furnishing fabrics to
prestigious Hotels - Bellagio Las Vegas, Starwood Sheraton US, and Harrah, US,
to name a few.
The following factors have impacted the operational results for FY 2006-07:
Manufacturing Overheads increased from Rs.49.470 millions to Rs.68.441 millions i.e. by 18.971 millions as compared to previous year. The increase is due to rise in cost of power and fuel, job work charges, wages and bonus.
Administrative and other overheads have increased from 14.506 millions to
Rs.16.087 millions i.e. by Rs.1.581 millions. This is due to increase in
salaries and perquisites of employees and directors, rent rates and taxes,
lease rent and sundry balances written off.
Finance Costs have increased from Rs.12.588 millions to Rs.15.329 millions i.e.
by Rs.2.741 millions due to increase in interest on loans, financial charges,
bank charges and commission.
OUTLOOK: ISSUES AND RISKS:
In its quest to achieve state of the art technology, during the Financial year the Company plans to launch very high quality 100% cotton fabric for bedding and furnishing to meet the demand of European Market.
A number of potential customers like Croscil in USA and Zimmer and Rhode in
Europe have shown their keen interest in the products of the Company and it is
hoped that the Company will be able to tap them in the year 2007-08.
Warwick, Australia, gave good business 3 years back, has again shown their interest in their products and the Company hopes to get good business from this party.
The foreign buyers have shown their keen interest in Furnishing made-ups and
the Velvets. It is going to be another area for concentration by the Company.
The Company is also targeting Embroidery, flocks, prints and light weight
curtains to coordinate with their Jacquards which will give boost to its
exports. Besides the buyers in hospitality sector have shown their interest in
Fire Retardant and Outdoor furnishing fabric, due to which the Company expects
a spurt in its exports.
The Company is making its efforts to increase its export as well as domestic
turnover. The modernization-cum-expansion plan to set up production facilities
at Barhi, Distt. Sonepat (Haryana), will increase the production capacity of
the Company.
New Designs, improved quality of production, made ups and velvet products,
coupled with increase in per capita income, growth of infrastructure, housing
sectors and hospitality sectors will give impetus to the growth of the Company.
COMPETITION:
As far as domestic market is concerned the unorganized sector in furnishing
industry has always posed a challenge to the Company. However, their high
quality and innovative designs do give them an edge over the products of
competitors.
In export market the Company has faced competition from Chinese products in
terms of price, especially in South Africa and Australia. However, due to its
quality and designs, the Company has no major challenge and its products are
well accepted in the international market.
WEBSITE DETAILS:
Subject is manufacturer of furnishing fabrics which offers the most exclusive quality and premium jacquard furnishing fabrics.
These fabrics are designed and manufactured after an extensive study of international trends. 70% of the total production is exports to wholesalers, retailers, converters in USA, Europe , Australia , South Africa , Middle East etc
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.40.29 |
|
UK Pound |
1 |
Rs.79.98 |
|
Euro |
1 |
Rs.61.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
62 |
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 |
|