MIRA
INFORM REPORT
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Report Date : |
24.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SIYARAM SILK MILLS LIMITED |
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Registered Office : |
H-3/2, MIDC, A-Road, Tarapur, Boisar, Dist. Thane - 401 506.
Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
29.06.1978 |
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Com. Reg. No.: |
020451 |
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CIN No.: [Company
Identification No.] |
L17116MH1978PLC020451 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS37269B |
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PAN No.: [Permanent
Account No.] |
AAACS6995 |
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Legal Form : |
Subject is a Public Limited Liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacture of Woven Fabrics, Texturising Yarn and Readymade Garments |
RATING &
COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 5310000 |
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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 fine
track. Available information
indicates high financial responsibility of the Company. Trade relations are fair. General financial position is
satisfactory. Fundamentals are strong
and healthy. Payments are reported as
usually correct and as per commitments. The Company can be considered good for any normal business dealings. |
LOCATIONS
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Registered Office : |
H-3/2, MIDC, A-Road, Tarapur, Boisar, Dist. Thane - 401 506.
Maharashtra, India |
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Tel. No.: |
91-22-2307 1180 /2308 2917 / 3119 / 2309 7963 |
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Fax No.: |
91-22-2307 3922 / 2307 3602 |
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E-Mail : |
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Website : |
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Corporate Office : |
B-5, Trade World, Kamala City, Senapati Bapat Marg, Lower Parel,
Mumbai 400 013, Maharashtra, India |
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Plants : |
Weaving Ø H-3/2, MIDC,
A-Road, Tarapur, Boisar, Dist. Thane - 401 506, Maharashtra. Ø D-23/l, MIDC,
Tarapur, Boisar, Dist. Thane - 401 506, Maharashtra. Ø D-2/l,MIDC,Murbad,
Dist. Thane - 421 401, Maharashtra Ø Survey No 367,
P.O.: Sailly, Silvassa (U.T.) - 396
230 |
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Yarn Ø G-1/1, MIDC,
Tarapur Industrial Area, Boisar, Dist. Thane - 401 506, Maharashtra. Ø A-31, MIDC,
Patalganga, Dist. Raigad - 410 220, Maharashtra. |
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Readymade 481/1-2, Dabhel, Daman, Daman & Diu (U.T.) - 396 210 |
DIRECTORS
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Name : |
Mr. Dharaprasad R. Poddar |
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Designation : |
Chairman |
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Name : |
Mr. Ramesh D. Poddar |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. Brijmohan L. Sarda |
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Designation : |
Director |
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Name : |
Prof.(Dr.) Mangesh D. Teli |
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Designation : |
Director |
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Name : |
Mr. Ketan P. Gupte |
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Designation : |
Director |
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Name : |
Mr. Shailesh S.Vaidya |
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Designation : |
Director |
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Name : |
Mr. Arvind M. Poddar |
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Designation : |
Director |
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Name : |
Mr. Pawand. Poddar |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Shrkishan D. Poddar |
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Designation : |
Director |
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Name : |
Vijaylaxmi A. Poddar |
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Designation : |
Executive Directors |
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Name : |
Mr. Ashokm. Jalan |
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Designation : |
Whole Time Director |
KEY EXECUTIVES
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Name : |
Mr. Om Prakash Singh |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
[As on 31.03.2007]
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
6206220 |
66.22 |
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Mutual Funds and UTI |
585878 |
6.25 |
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Banks, Financial Institutions, Insurance Companies |
1841 |
0.02 |
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Foreign Institutional Investors |
234433 |
2.50 |
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Private Corporate Bodies |
367849 |
3.92 |
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Indian Public |
1966980 |
21.00 |
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NRI's / OCB's |
8847 |
0.09 |
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Total |
9372048 |
100 |
BUSINESS DETAILS
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Line of Business : |
Manufacture of Woven Fabrics, Texturising Yarn and Readymade Garments |
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Products : |
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Brand Names : |
The company’s brand names are “Siyaram’s”, “J. Hampstead”, “Mistair”, “Oxemberg”, etc. |
PRODUCTION STATUS
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Particulars |
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Installed
Capacity |
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Looms |
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367 |
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Texturising Machines (Nos.) |
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0 |
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Stitching Machine (Nos.) |
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439 |
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Yarn Dyeing Capacity (Tons) Per Annum |
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4500 |
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Particulars |
Unit |
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Actual
Production |
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Cloth |
Mtrs. |
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34.910 |
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Yarn |
Kgs. |
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2.008 |
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Readymade Garments |
Nos. |
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0.914 |
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Bed Linen Products (On Job work basis) |
Nos. |
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0.026 |
GENERAL
INFORMATION
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No. of Employees : |
About 3000 |
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Bankers : |
Ø Bank of Baroda Ø Central Bank of
India Ø Corporation Bank |
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Facilities : |
Note: (1) Working
capital loan from Banks are secured by hypothecation of Stocks, Book Debts
and personally guaranteed by two directors. (2) The Term
Loans from bank are secured by first charge by way of mortgage, hypothecation
created on entire fixed assets of Company, Personally guaranteed by two
directors, except Term Loan of Rs. 420.800 Millions.
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Banking Relations
: |
Good |
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Auditors : |
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Name : |
M/s. Jayantilal Thakkar and Company Chartered Accountants COST AUDITORS M/s. Tholiya and Associates Chartered Accountants INTERNAL AUDITORS M/s. K. M. Garg and Company Chartered Accountants |
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Associates/Subsidiaries : |
Ø Balkrishna Industries Limited Ø Govind Rubber Limited Ø S. P. Investtrade (India) Limited Ø Sanchana Trading & Finance Limited Ø S. P. Finance & Trading Limited Ø Poddar Brothers Investment Limited Ø Santigo Textile Mills (Private) Limited Ø Sagar Silk Industries Limited Ø Oxemberg Fashion Limited Ø Beetee Textile Industries Limited Ø Fabwear Garments Ø Futuristic Concepts Media Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9750000 |
Equity Shares |
Rs. 10/- each |
Rs. 97.500 Millions |
|
25000 |
11% Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 2.500 Millions |
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Total |
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Rs. 100.000
Millions |
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
9374016 |
Equity Shares |
Rs. 10/-
each |
Rs. 93.740
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
9372048 |
Equity Shares |
Rs. 10/-
each |
Rs. 93.720
Millions |
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Add: Forfeited Equity Shares |
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Rs. 0.018
Millions |
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Total |
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Rs. 93.738 Millions |
Note:
Of the above:
(1) 4644652 Equity
Shares have been allotted as fully paid up Bonus Shares by capitalisation of
General Reserve and Share Premium Account.
(2) 1467724 Equity
Shares of Rs. 10/- each were allotted on conversion of Convertible Debentures.
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 |
93.738 |
62.496 |
62.500 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1233.897 |
1119.287 |
993.100 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1327.635 |
1181.783 |
1055.600 |
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LOAN FUNDS |
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1] Secured Loans |
1125.155 |
830.554 |
772.500 |
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2] Unsecured Loans |
810.828 |
468.627 |
474.000 |
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TOTAL BORROWING |
1935.983 |
1299.181 |
1246.500 |
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DEFERRED TAX LIABILITIES |
160.057 |
163.256 |
0.000 |
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TOTAL |
3423.675 |
2644.220 |
2302.100 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1513.790 |
1210.420 |
1219.400 |
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Capital work-in-progress |
267.686 |
50.653 |
11.900 |
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INVESTMENT |
1.365 |
1.365 |
1.400 |
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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 |
750.676
|
732.916 |
641.500 |
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Sundry Debtors |
1277.510
|
993.621 |
676.900 |
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Cash & Bank Balances |
14.038
|
10.497 |
7.900 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
217.018
|
157.128 |
151.600 |
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Total
Current Assets |
2259.242
|
1894.162 |
1477.900 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
458.484
|
422.103 |
354.300 |
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Provisions |
159.924
|
90.277 |
54.200 |
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Total
Current Liabilities |
618.408
|
512.380 |
408.500 |
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Net Current Assets |
1640.834
|
1381.782 |
1069.400 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
3423.675 |
2644.220 |
2302.100 |
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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 |
4467.065 |
3938.544 |
3396.400 |
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Other Income |
77.524 |
98.822 |
43.800 |
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Total Income |
4544.589 |
4037.366 |
3440.200 |
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Profit/(Loss) Before Tax |
230.999 |
242.980 |
109.500 |
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Provision for Taxation |
35.800 |
86.900 |
28.300 |
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Profit/(Loss) After Tax |
195.199 |
156.080 |
81.200 |
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Earnings in Foreign Currency : |
222.594 |
301.165 |
NA |
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Total Imports |
183.830 |
95.372 |
NA |
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Expenditures : |
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Manufacturing Expenses |
4090.901 |
3611.048 |
595.400 |
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Interest |
67.191 |
41.258 |
63.500 |
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Depreciation & Amortization |
155.498 |
142.080 |
118.500 |
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Stock Adjustment |
0.000 |
0.000 |
[15.600] |
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|
0.000 |
0.000 |
2568.900 |
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Total Expenditure |
4313.590 |
3794.386 |
3330.700 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 |
30.09.2007 |
31.12.2007 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Sales Turnover |
888.500
|
1248.900
|
1281.100
|
|
Other Income |
12.100
|
11.700
|
20.000
|
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Total Income |
900.600
|
1260.600
|
1301.100
|
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Total Expenditure |
829.600
|
1126.800
|
1203.700
|
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Operating Profit |
71.000
|
133.800
|
97.400
|
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Interest |
24.500
|
24.800
|
31.600
|
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Gross Profit |
46.500
|
109.000
|
65.800
|
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Depreciation |
37.800
|
44.800
|
39.300
|
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Tax |
2.000
|
18.700
|
2.600
|
|
Reported PAT |
10.300
|
46.300
|
34.000
|
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
1.29 |
1.14 |
1.18 |
|
Long Term Debt-Equity Ratio |
0.57 |
0.65 |
0.72 |
|
Current Ratio |
1.28 |
1.54 |
1.73 |
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Fixed Assets |
2.38 |
2.24 |
1.81 |
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Inventory |
7.08 |
6.54 |
5.33 |
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Debtors |
4.62 |
5.38 |
4.93 |
|
Interest Cover Ratio |
4.05 |
6.88 |
2.72 |
|
Operating Profit Margin(%) |
8.15 |
9.48 |
8.58 |
|
Profit Before Interest And Tax Margin(%) |
5.19 |
6.32 |
5.09 |
|
Cash Profit Margin(%) |
6.27 |
6.63 |
5.88 |
|
Adjusted Net Profit Margin(%) |
3.30 |
3.47 |
2.39 |
|
Return On Capital Employed(%) |
9.48 |
11.89 |
7.72 |
|
Return On Net Worth(%) |
13.82 |
13.95 |
7.90 |
LOCAL AGENCY
FURTHER INFORMATION
Fixed Assets:
Ø Freehold land
Ø Leasehold land
Ø Building
Ø Factory road
Ø Plant and
machinery
Ø Electrical
installation
Ø Furniture and
equipments
Ø Vehicles
Ø Intangible assets
Ø Computer software
Ø Trademark
Operations:
The
Net Turnover & other income of the Company registered a growth of 12%
during the year under review at Rs. 45.446 Millions against Rs. 40.374 Millions
in the previous year. The profit after tax of the Company increased to Rs.1.952
Millions as against Rs. 1.561 Millions in the previous year.
The year witnessed growth in all business areas of the Company. Demand for
Company's products continued to grow, supported by favourable domestic market
conditions. There was stress on the profitability owing to the combined effect
of incurrence of set up expenditure for new businesses like Retail &
Furnishings and fuming up of interest rates.
Expansion:
During
the year under review, the Company has added 99 Looms at its plants at Tarapur
and Silvassa. This led to increase in the fabric weaving capacity by 5.000
Millions Mtrs. per annum. In the current year, the Company is proposing to
install 24 Looms for manufacturing furnishing fabrics along with balancing
equipments. The implementation of this project is in the final stage of its
completion.
The Company has increased its yam dyeing capacity during the year under review
by 1,500 Tons per annum. In the current year, the Company proposes to further
increase its yam dyeing capacity by installing latest technology dyeing
machines along with twisting and doubling machines for manufacturing value
added yam.
The Company has entered into sunrise retail sector and aims at
penetrating deeper into domestic markets. Under this strategy, the Company is
opening exclusive retail shops, where in all the brands of the Company would be
available under one roof. The Company has already opened few shops. This will
enable the Company to cater to the up coming niche market of entire profile and
increasing purchasing power.
The Company has launched a new brand of Ready-made Garments and
developed new products in the existing brands to remain one of the permanent
players in the competitive textile market. The Company's R&D Department is
fully geared up to develop the fabrics and Ready-made Garments as per the
latest trends and designs.
The Company is widening its network of marketing channel by appointing Dealers,
Retailers, Franchisees and C&F Agents to increase its market size.
Subsidiary Companies:
The Company has formed two
100% Subsidiaries, namely Siyaram Polycote Limited on 15th March, 2007 and
Oxemberg Clothing Limited on 16th March, 2007 and has paid Rs. 0.500 Millions
to each towards the Share Application Money.
Other
Matters:
1) Murbad Unit: The operation of the unit remained suspended as majority
of the workers have opted for VRS.
2) Masat Unit: The Company had sought necessary permissions from shareholders
through postal ballot on 14* February 2005, for the sale/ disposal of Masat Unit.
The process of disposal has now been completed.
3) Patalganga Unit: The unit has been under suspension of
operations.
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. 40.45 |
|
UK Pound |
1 |
Rs. 81.20 |
|
Euro |
1 |
Rs. 63.48 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
-- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
75 |
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 |
|