MIRA INFORM REPORT
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Report Date : |
14.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
BOMBAY RAYON FASHIONS LIMITED |
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Formerly Known
As : |
BOMBAY RAYON FASHIONS PRIVATE LIMITED |
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Registered
Office : |
D-1st Floor, Oberoi Garden Estates, Chandivali, Farms Road,
Chandivali, Andheri (East), Mumbai – 400072, Maharashtra |
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Country : |
India |
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Financials (as
on) : |
31.03.2007 |
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Date of
Incorporation : |
21-05-1992 |
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Com. Reg. No.: |
11-66880 |
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CIN No.: [Company
Identification No.] |
L17120MH1992PLC066880 |
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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
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Manufacturer of textiles consisting of fabrics and garments |
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 19825372 |
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Status : |
Good |
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Payment
Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. Trade
relations are fair. Financial position is good. Payments are usually correct
and as per commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. It can be regarded as a promising business partner in a medium to long
term. |
LOCATIONS
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Registered
Office/ Human Resource
Department : |
D-1st Floor, Oberoi Garden Estates, Chandivali, Farms Road,
Chandivali, Andheri (East), Mumbai-400072, Maharashtra, India |
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Tel. No.: |
91-22-66955566 |
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Fax No.: |
91-22-28476992 |
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Email : |
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Website : |
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Registrar/ Transfer Agent: |
Mr. Joy Varghese, Intime Spectrum Registery Limited C -13, Pannalal Silk Mills Compound, L.B.S. Marg, Bhandup (West),
Mumbai – 400078, Maharashtra, India |
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Tel. No.: |
91-22-25963838 (Extension – 293) |
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Fax No.: |
91-22-25946969 |
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E-Mail : |
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Factory 1 : |
Weaving of Fabrics Raj Rajeshwari Compound, Sonale Village, Bhiwandi |
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Factory 2 : |
Weaving of Fabrics TTC Industrial Area, Navi Mumbai |
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Factory 3 : |
Garment Manufacturing 57 / A, 3rd Phase, Peenya Industrial Area, Bangalore -
560058 |
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Factory 4 : |
Garment Manufacturing 288, 4th Phase, Peenya Industrial Area, Bangalore - 560058 |
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Factory 5 : |
Weaving of Fabrics 227 / 3, Khanvel Main Road, Kherdi, Silvassa |
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Factory 6 : |
Garment Manufacturing 19th KM 53 / 10, Madanayakanna Hialli, Madavara Post
Dasunp, Bangalore - 562123 |
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Factory 7 : |
Garment Manufacturing 151, Babaasabara Palya, Mysore Road, Kengeri, Bangalore - 560058 |
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Factory 8 : |
Yarn Dyeing, Processing and Garment Manufacturing Plot Number / Survey Number 21 to 32 (P), KIADB Apparel Park, Near
Railway Station, Doddaballapur – 561203 (under set up) |
DIRECTORS
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Name : |
Mr. Janardan Agarwal |
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Designation : |
Chairman |
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Name : |
Mr. Aman Agarwal |
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Designation : |
Vice Chairman |
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Name : |
Mr. Naseer Ahmed |
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Designation : |
Joint Vice Chairman |
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Name : |
Mr. Prashant Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. Uday Mogre |
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Designation : |
Executive Director (Corporate) |
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Name : |
Mr. A R Mundra |
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Designation : |
Executive Director (Finance) |
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Name : |
Mr. Pravin P Shah |
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Designation : |
Non Executive Director |
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Name : |
Mr. B S Bhesania |
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Designation : |
Non Executive Director |
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Name : |
Mr. S B Agarwal |
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Designation : |
Non Executive Director |
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Name : |
Mr. John Mathew |
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Designation : |
Nominee Director, EXIM Bank |
KEY EXECUTIVES
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Name : |
Ms. Prachi A. Deshpande |
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Designation : |
Deputy Company Secretary |
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Address |
D 1st Floor, Oberoi Garden Estates, Chandivali Farms Road,
Chandivali, Andheri (East), Mumbai –
400072, Maharashtra, India |
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Tel. No.: |
91-22-66955566 |
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E-Mail.: |
MAJOR SHAREHOLDERS
(As on 31.03.2007)
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoter Group |
2,73,59,160 |
43.43 |
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Mutual Funds and UTI |
4391712 |
6.97 |
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Banks / Financial Institutions / Insurance Companies |
621228 |
0.98 |
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Foreign Institutional Investors |
17064380 |
27.09 |
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Non-Resident Indians |
612033 |
10.61 |
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Private Bodies Corporate |
6685509 |
0.97 |
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Indian Public |
6102959 |
0.26 |
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Clearing Member |
163019 |
9.69 |
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Total |
63000000 |
100.00 |
BUSINESS DETAILS
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Line of Business
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Manufacturer of textiles consisting of fabrics and garments |
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Products : |
·
Woven Fabric of Cotton ·
Woven Fabric of Cotton mixed mainly or solely with Man made Fibre ·
Men’s or Boys Shirting’s ·
Women’s or Girls Blouses, Shirts and Shirt-Blouses |
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Exports to : |
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Products : |
· Tom
Tailor · DKNY
· Liz
Clairborne Source |
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Countries : |
· Europe · U.S.A. |
GENERAL
INFORMATION
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Customers : |
· Wholesalers · Distributors · Retailers |
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No. of Employees
: |
6773 |
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Bankers : |
· Jankalyan Sahkari
Bank Limited · Kalyan Janta
Sahkari Bank Limited · State Bank of
India · UTI Bank Limited · State Bank of
Patiala · State Bank of
Hyderabad · DBS Bank Limited · State Bank of
Mysore · Citibank N.A. · Export Import
Bank of India |
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Facilities : |
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Banking Relations : |
Satisfactory |
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Auditors : |
V. K. Beswal and Company Chartered Accounts |
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Address : |
Mumbai |
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Associates/Subsidiaries
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BRFL Europe B. V. |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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70000000 |
Equity Shares |
Rs.10/- each |
Rs.700.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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63000000 |
Equity Shares |
Rs.10/- each |
Rs.630.000 Millions |
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FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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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 |
630.000 |
489.797 |
329.636 |
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2] Advance Money received for convertible
warrants |
126.270 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4200.073 |
1043.845 |
129.355 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4956.343 |
1533.642 |
458.991 |
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LOAN FUNDS |
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1] Secured Loans |
3195.630 |
841.114 |
266.483 |
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2] Unsecured Loans |
138.914 |
108.751 |
6.059 |
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TOTAL BORROWING |
3334.544 |
949.865 |
272.542 |
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DEFERRED TAX LIABILITIES |
134.094 |
14.888 |
3.236 |
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TOTAL |
8424.981 |
2498.395 |
734.769 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
3059.497 |
687.023 |
252.339 |
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Capital work-in-progress |
480.552 |
515.182 |
42.020 |
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INVESTMENT |
1357.668 |
100.125 |
1.151 |
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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 |
1751.138
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833.539
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384.004 |
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Sundry Debtors |
1020.045
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346.159
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208.141 |
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Cash & Bank Balances |
772.644
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117.142
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8.663 |
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Other Current Assets |
0.000
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0.000
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0.000 |
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Loans & Advances |
734.729
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288.178
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84.427 |
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Total
Current Assets |
4278.556
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1585.018 |
685.235 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
650.815
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302.920
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217.053 |
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Provisions |
100.477
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86.033
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32.602 |
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Total
Current Liabilities |
751.292
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388.953
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249.655 |
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Net Current Assets |
3527.264
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1196.065
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435.580 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
3.679 |
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TOTAL |
8424.981 |
2498.395 |
734.769 |
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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 |
4893.817 |
1989.803 |
1240.963 |
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Other Income |
70.970 |
13.729 |
0.000 |
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Total Income |
4964.787 |
2003.532 |
1240.963 |
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Profit/(Loss) Before Tax |
755.985 |
254.620 |
91.972 |
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Provision for Taxation |
211.850 |
72.818 |
19.351 |
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Profit/(Loss) After Tax |
544.135 |
181.802 |
72.621 |
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Total Imports |
1308.125 |
317.187 |
179.140 |
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Total Expenditure |
4623.499 |
1999.363 |
1148.991 |
QUARTERLY RESULTS
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PARTICULARS |
30.06.2007 1st Quarter |
30.09.2007 2nd Quarter |
31.12.2007 3rd Quarter |
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Sales Turnover |
2012.500 |
2246.100 |
2387.500 |
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Other Income |
39.800 |
94.500 |
65.900 |
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Total Income |
2052.300 |
2340.600 |
2453.400 |
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Total Expenditure |
1616.800 |
1753.700 |
1858.400 |
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Operating Profit |
435.500 |
586.900 |
595.000 |
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Interest |
54.000 |
66.800 |
76.900 |
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Gross Profit |
381.500 |
520.100 |
518.100 |
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Depreciation |
64.500 |
66.100 |
76.100 |
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Tax |
110.500 |
135.300 |
112.500 |
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Reported PAT |
220.500 |
306.800 |
345.700 |
KEY RATIOS
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Debt Equity Ratio (Total Liability / Networth) |
0.67
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0.61
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0.59 |
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Long Term Debt Equity Ratio |
0.40
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0.38
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0.20 |
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Current Ratio |
1.85
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2.03
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1.46 |
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TURNOVER RATIO |
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Fixed Assets |
2.43
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3.66
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5.47 |
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Inventory |
3.79
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3.32
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5.02 |
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Debtors |
7.17
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7.29
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5.83 |
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Interest Cover Ratio |
6.81
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4.95
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4.48 |
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Operating Profit Margin |
20.22
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17.25
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12.79 |
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Profit Before Interest and Tax Margin |
18.09
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15.79
|
11.04 |
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Cash Profit Margin |
13.24
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10.46
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8.52 |
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Adjusted Net Profit Margin |
11.11
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9.00
|
6.77 |
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Return on Capital Employed |
16.64
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19.87
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28.15 |
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Return On Net Worth |
17.10
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18.25
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27.27 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject
is a part of Bombay Rayon group was incorporated as Mudra Fabrics Private Limited
(MFL) on 21.05.1992. On 13.10.1992 the Company was converted into a public
limited company. Subsequently, on 30.09.2004, name of the company was changed
to Bombay Rayon Fashions Limited (BRFL). In March 2005, with a view to
consolidate business of our Group, Bombay Rayon Private Limited (BRPL) was
amalgamated with the Company after the High Court of Bombay approved the Scheme
of Amalgamation effective 01.04.2004 and two partnership firms of the Group,
i.e, B R Exports and Garden City Clothing were taken over by BRPL and BRFL
respectively.
After the amalgamation of BRPL with Subjectall the three entities, i.e., BRPL,
GCC and B R Exports have merged into their Company resulting into consolidation
of businesses from fabrics, design development and garments under one corporate
roof
The Company is mainly engaged in the business of manufacturing of textiles
consisting of fabrics and garments. The company has its plant for weaving of
fabrics at Bhiwadi, Navi Mumbai, Silvassa. Plant for Garment manufacturing at
Bangalore, and Plant for Yarn Dyeing, Processing and Garment
Manufacturing.
The company has also become one of the largest Garment Manufacturer of designer
shirts for exports with the increase in Garment capacity from 1.8 million
pieces p. a to 12 million pieces p.a. The Company has already added in its
customer list many well known brands/ labels from The United States of America
(USA)
and European Countries
The company focuses to convert the Company into 'Complete Apparel Company' with
state of the art designing and sampling set ups and entire value chain from
yarn dyeing, weaving, processing and manufacturing of fabrics and garments.
With the expansion capacities going on stream soon, the profile of the Company
will change from a fabric company to an integrated garment manufacturing
company for exports. With the completion of new project, the total Garment
Manufacturing capacity will increase to 18 million pieces p.a. The plans are
being drawn to increase it to 30 million pieces p.a. (1,00,000 pieces per day)
within the next financial year.
The Company has been allotted 20.16 acres of land in the Apparel Park at
Doddaballapur for setting up an integrated textile project of yarn dyeing,
weaving, process house and garment manufacturing. Based on the Techno-Economic
Feasibility Report prepared by Gherzi Eastern Limited, Mumbai, the total cost
of the Integrated Textile Project at Doddaballapur, Bangalore at the time of
Initial Public Issue was estimated at Rs.1617.2 Millions. The Company has expanded
the scope of the aforesaid project in view of setting up a new Greenfield
Garment facility for 7.8 Million pieces p. a at Bangalore. The total cost after
the new plans has increased to Rs. 2467.200 Millions.
The New Garment Unit at Bangalore with an installed capacity for manufacturing
7.8 Million pieces of Garments per annum became operational with commencement
of commercial production from 6th March 2006. The project execution is at an
advanced stage and is scheduled to be fully commercially operational in the
second quarter of the current year.
OPERATIONS:
The Gross turnover of the Company for the year review stood at
Rs.4898.969 millions with an increase of 2.45 times over the previous year. The
total Export Sales has increased to Rs.2134.084 millions from Rs.634.729
millions (3.36 times). The Profit before Tax jumped to Rs.755.985 millions in
comparison with Rs.254.620 millions in the previous year. After provision for
Taxation, the Profit after Tax (PAT) for the year was Rs.544.135 millions as
against Rs.181.802 millions for the previous year.
The commercial production for integrated textile project commenced with the
manufacturing facilities of yarn dyeing, weaving, processing and garmenting at
single location. With this the total installed capacities at the end of year
under review reached to 50 million meters p.a of fabric and 19.2 million pieces
p.a (64,000 pieces per day) of garments.
The expansion plans have already been undertaken to increase the total
installed capacities to 120 million meters of fabrics and 45 million pieces p.a
(1,50,000 pieces per day) of garments within next financial year.
EXPANSION
PROJECT:
After completion of New Integrated Textile Project at Doddaballapur,
Bangalore the new project for expansion has been taken to set up the following
capacities:
Fabrics: 70 million mtrs p.a
Garments: 25.8 million pieces p.a (86,000 pieces per
day)
The financial appraisal and syndication of Debt were done by LITI Bank Ltd by
getting sanctions for Term Loans from various Bankers under Technology
Upgradation Fund Scheme (TUFs) entitling the company an interest subsidy of 5%
and capital subsidy of 10% on total investment in Processing Machineries.
The project execution work has been undertaken by finalizing the critical
machineries with technologies and project will be fully on stream by end of
third quarter of next financial year.
The Company has also drawn of the plan for setting up fabric
weaving and new Garment Manufacturing Facilities in Maharashtra.
SUBSIDIARY COMPANIES:
BRFL Europe B.V.:
The wholly-owned subsidiary of the Company BRFL Europe B.V. at Netherlands set
up last year, has played an important role for canvassing the business,
services to customers on products and designs.
During the year under review, a branch office of the aforesaid subsidiary was
incorporated in New York, U.S. in the name of BRFL Europe B.V. Inc. The
establishment of said branch office shall enable the Company to provide
services to customers at their door step which in turn would give the overseas
buyers a comfort of dealing with a company having reached in their respective
territory.
DPJ Clothing Ltd:
During the year under review, the Company has acquired 420 Ordinary shares
constituting 70% of the total paid-up capital of DPJ Clothing Ltd, a UK based
Company, for a total consideration of Pound 1.54 million. DPJ Clothing Limited
is engaged in business of wholesale marketing and distribution of clothing
Products. The said subsidiary is working with various retail fabric chains
facilitating the outsourcing of fabrics and garment either by direct import or
by import and delivery basis.
Bombay Rayon Retail Limited:
With a view to expand into domestic market through retail
segment, the Company has, during the year under review, incorporated a
wholly-owned subsidiary in the name of 'Bombay Rayon Retail Ltd'. However, no
operations had commenced during the year under review.
As required by Section 212 of the Companies Act, 1956, the
Statement of holding in subsidiary and Consolidated Accounts pursuant to
Accounting Standard (AS 21) issued by the Institute of Chartered Accountant of
India, including the financial accounts of the subsidiary company are forming
part of the Annual Report.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Industry structure and
development:
The global textile industry estimated at USO 500 billion is one of the largest
contributors to global trade. India's growing 'ports of USID 20 billion make it
an important player in this market. The country largely exports fabrics,
apparel and made-ups to the US and EU.
The steady growth in the exports of value added products has
resulted in an increase in India's market share and the favourable product-mix
has contributed to higher realizations and better margins. Post quota
phase-out, the Indian Textile Industry has gained immensely and continues to
benefit over its regional peers in terms of export of value-added
products.
Worldwide, there is a rapid change in consumer preferences in term of style and
fashion preferences. More and more consumers ate shifting towards high end
value added products. This has necessitated efficient service coupled with
brand offerings which in turn has led to new opportunities for the textile and
apparel industry. A strong brand image, world class production facilities
further expansion of the existing distribution network and emphasis on retail
would be the keys to maintaining market leadership by any company in the
textile and clothing industry.
Business Overview:
The company is a leading manufacturer and exporter of fashion fabrics and
garments. It has fully integrated operations from design to yarn dyeing to
fabric processing to garment manufacturing. Vertical integration focus on
designing and manufacturing high end garments enable the company to achieve
higher margins.
With a focus on becoming a leader in high-end garment manufacturing, The
Company plans to further expand its manufacturing facilities. It plans to
increase the output of fabric from 50 million meters annually to approximately
120 million meters annually and garments from 18.6 million pieces annually to
approximately 45 million pieces annually. The total cost for this expansion is
projected to be Rs.3,520.30 million. The cost is being funded by Equity already
raised and Term Loans under Technology Upgradation Fund Scheme (TUFs).
Opportunities and Threats:
Opportunities:
As the textile industry matures, international players are now seeking
manufacturers with vertically integrated product development facilities and
having the ability for managing quality and costs. India is steadily being
recognised in this regard and sourcing of value-added products from India
continues to increase.
The Government of India has set a target for textile exports to grow to
USD 50 billion by 2010. In continuation of its policy to support the Indian
textile sector, the Government of India had allocated TUF subsidies for
investments in the sector. In addition, the increase in FDI has provided huge
opportunities to Indian Textile players who can source domestically and provide
a one-stop solution to the global retailers who source from India.
Fashion
Risk:
This risk arises because the Company is in the fashion business where designs
have a short shelf life.
Subject has its own in-house Research and Development
Department consisting of a Designing Unit and a Fabric Development Unit. There
is a team of designers who come out with new ideas and designs based on current
fashion trends in the domestic and the international markets. Subject also
works closely with its customers. Thus the Company has its mitigation in
place.
Outlook:
Easy access to raw material (India is the third largest producer of cotton and
one of the largest producers of man-made fibres) and availability of low cost
skilled labour make the country an ideal destination for sourcing fabrics as
well as garments. With fully integrated operations, the Company intends to
become a complete apparel house. Barring unforeseen circumstances, the
financial and operational performance of the Company is expected to grow
significantly in the next few years. Established relations with existing
customers and a constant drive to increase they customer base shall enable the
Company to emerge a strong player in the industry.
Fixed Assets
- Land
- Buildings
- Plant and Machinery
- Furniture and Fixtures
- Office Equipments
- Vehicles
- Computers
Profile:
Subject offers the finest in the Textile industry. Based in
Mumbai, Maharashtra, company designs, and sources and markets some of the most
pioneering textile offerings in the industry. Being one of India’s top textile
giants for over two decades, Company registered a CARG of over 100% in sales
over last three years employing over 5000 workmen in its facilities. The
Company's quest for continual innovation and excellence in products and ease
and speed tactics in customer service drives its growth.
The company name carries one of India’s finest reputations.
Serving an industry which is dynamic and constantly evolving, they are
committed to continue to anticipate future needs and to invest in the design,
equipment and facilities to retain their position as leaders in their industry.
Subject manufactures one of the most versatile and
technically advanced ranges of fabrics, apparels and home textiles in India.
Every second of every day subject manufactures and distributes fabrics across
the length and breadth of India. Through their network of wholesalers,
distributors and retailers across India, wherever fabrics are being
distributed, there is the subject name close at hand providing the same
quality, reliability, service and exceptional value for money.
News and Media
India : Bombay
Rayon acquires UK based DPJ Clothing
February 23, 2007
Bombay Rayon Fashions Limited, leading manufacturer of fashion fabrics
and garments, has acquired UK- based DPJ Clothing Limited at a consideration of
£ 1.54 million ($2.90m). With this acquisition, DPJ Clothing Ltd. has become a
foreign subsidiary of Bombay Rayon Fashions Limited.
This acquisition through the purchase of 420 Ordinary Shares (70% of
total capital) in DPJ Clothing was approved by the Board of Directors of Bombay
Rayon Fashions.
“With this acquisition, Bombay Rayon will be able to expand its customer
base in the European region for its designer garments and also get the headway
for outsourcing and distributing the other related products in that region.”,
said Mr. Prashant Agarwal, MD, Bombay Rayon Fashions Limited.
Bombay Rayon Group established by Mr. Janardhan Agrawal in 1986 with a
modest beginning in manufacturing of fashion fabrics at present is considered
amongst India’s leading manufacturers and exporters of fashion fabrics and
garments with a State-of-the-art manufacturing facilities at New Mumbai,
Silvassa, Sonale and Bangalore fully backed by the facilities of product
development, design studio and efficient sampling infrastructure to provide the
quality service to its customers in India and abroad.
DPJ Clothing Ltd is engaged in the business of wholesale marketing and
distribution of clothing products and is incorporated under English Companies
Act 1985 with place of business and Registered office at Birmingham.
Bombay Rayon
Fashions Limited (BRFL) signed a Memorandum of Understanding (MOU)
today with the Government of Maharashtra towards expanding its fabric and
garment making capacities by setting up new facilities at Tarapur, Islampur,
Ichalkaranji and other lesser developed areas of Maharashtra like Latur, Nanded
& Osmanabad.
Presently
BRFL has Fabric processing capacity of 1,50,000 meters per day and garment
capacity of 1,00,000 garments per day in the State of Karnataka. However, BRFL
has chosen to undertake major expansion in its capacities by setting up
Greenfield Units for Yarn Dyeing, Weaving, Processing and garmenting in the
State of Maharashtra.
BRFL
is presently employing more than 30,000 people in its various units spread over
Mumbai & Bangalore. With the addition of these capacities potential
employment generation would be exceeding an additional 50,000 people.
The
MOU was signed by Mr. V.K.Jairath, Principal Secretary, Department of Industries, Government of Maharashtra (GoM)
and Mr. Prashant Agarwal- Managing Director , Bombay Rayon Fashions Limited in
the presence of Mr. Vilasrao Deshmukh, Hon'ble Chief Minister of Maharashtra,
Mr. Ashok Chavan, Hon'ble Minister of Industries, GoM, Mr. Jayantrao Patil,
Hon'ble Minister of Finance , GoM, Mr. Johny Joseph, Chief
Secretary , GoM , Mr. Aman Agarwal - Vice Chairman Bombay Rayon Fashions
Limited and Mr. Uday Mogre - Executive Director (Corporate) Bombay Rayon
Fashions Limited.
Speaking
on this occasion the Chief Minister Mr. Vilasrao Deshmukh said " BRFL is a fast growing company and has
grown to its present level of turnover of Rs. 1000 crores p.a. especially
posting phenomenal growth in the last three years. I am happy to note that BRFL
has decided to establish fabric & garment manufacturing units in the lesser
developed areas of Maharashtra, thereby creating major employment opportunity
for the local people"
BOMBAY RAYON UNVEILS MEGA INVESTMENT PLAN IN MAHARASHTRA
Mumbai
13th November, 2007
·
Major expansion in Yarn dyeing, Weaving, Processing and
Garment capacities. Adding Fabric processing capacity of 5 lac meters per day
and garment capacity of 1,00,000 garments per day.
·
Investment of Rs. 1,100 Crores.
·
Creating direct employment of about 32,000 people.
Bombay Rayon Fashions Limited (BRFL)
signed a Memorandum of Understanding (MOU) today with the Government of
Maharashtra towards expanding its fabric and garment making capacities by
setting up new facilities at Tarapur, Islampur, Ichalkaranji and other lesser
developed areas of Maharashtra like Latur, Nanded & Osmanabad.
Presently BRFL has Fabric processing
capacity of 1,50,000 meters per day and garment capacity of 1,00,000 garments
per day in the State of Karnataka. However, BRFL has chosen to undertake major
expansion in its capacities by setting up Greenfield Units for Yarn Dyeing,
Weaving, Processing and garmenting in the State of Maharashtra.
BRFL is presently employing more than 30,000 people in its
various units spread over Mumbai & Bangalore. With the addition of these
capacities potential direct employment generation would be exceeding an
additional 32,000 people.
The MOU was signed by Mr. V.K.Jairath, Principal Secretary,
Department of Industries, Government of Maharashtra (GoM) and Mr. Prashant
Agarwal- Managing Director , Bombay Rayon Fashions Limited in the presence of
Mr. Vilasrao Deshmukh, Hon’ble Chief Minister of Maharashtra, Mr. Ashok Chavan,
Hon’ble Minister of Industries, GoM, Mr. Jayantrao Patil, Hon’ble Minister of
Finance , GoM, Mr. Johny Joseph, Chief Secretary , GoM , Mr. Aman Agarwal –
Vice Chairman BRFL, Mr. Naseer Ahmed – Jt. Vice Chairman BRFL and Mr. Uday
Mogre – Executive Director BRFL.
Speaking on this occasion the Chief Minister Mr. Vilasrao
Deshmukh said “BRFL is a fast growing company and has grown to its present
level of turnover of Rs. 1000 crores p.a. especially posting phenomenal growth
in the last three years. I am happy to note that BRFL has decided to establish
fabric & garment manufacturing units in the lesser developed areas of
Maharashtra, thereby creating major employment opportunity for the local
people”
Minister of Industries, GoM Mr. Ashok Chavan said, “State of
Maharashtra have been in the fore front in attracting investment and providing
all the infrastructure for setting up industries. The proposed investment by
BRFL proves that Maharashtra enjoys the confidence of entrepreneurs.
Mr. Jayantrao Patil, Hon’ble Minister of Finance, GoM, said
“I have had the occasion of visiting BRFL units in Bangalore and I was extremely
impressed with the facilities set up by BRFL in the State of Karnataka. Since
BRFL started its operation in and around Maharashtra, it was my objective to
bring BRFL back to Maharashtra and facilitate setting up of their major
expansion plans in the State of Maharashtra”.
Mr. Prashant Agarwal, Managing Director of Bombay Rayon
Fashions Limited said “our decision to invest in the State of Maharashtra
was owing to the tremendous support and comfort offered by Government of
Maharashtra. We are also very grateful to Government of Maharashtra for
promising all necessary help and assistance in speedy implementation of this
Project”.
Mr. V. K. Jairath, Principal Secretary, Department of
Industries, GoM, while welcoming the guests assured BRFL, of all assistance and
help in setting up this project and reiterated full support of its agencies
like MIDC for providing excellent infrastructure and Single Window Clearance
for this Project.
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.42.16 |
|
UK Pound |
1 |
Rs.82.28 |
|
Euro |
1 |
Rs.65.54 |
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 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--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 |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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 |
|