MIRA
INFORM REPORT
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Report Date : |
19.11.2008 |
IDENTIFICATION DETAILS
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Name : |
R M MOHITE TEXTILES LIMITED |
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Registered Office : |
Mohite House, 240/BL T GEN, Thorat Marg, |
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Country : |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
31.10.1990 |
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Com. Reg. No.: |
11-058774 |
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CIN No.: [Company
Identification No.] |
U17119MH1990PLC058774 |
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Legal Form : |
A Public Limited Company.The company’s shares are listed on the Stock
Exchange. |
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Line of Business : |
Manufacturer and Exporter of Cotton Yarn |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 2600000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well established textile mill having satisfactory track.
Trade relation are fair. Payments are
slow but correct. The company can be considered normal for business dealings as usual
trade terms and conditions. |
LOCATIONS
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Registered
Office : |
Mohite House,
240/BL T GEN, Thorat Marg, |
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Tel. No.: |
91-231-266999/95 |
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Fax No.: |
91-231-2653233 |
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Website : |
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Corporate Office
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Ambapwad Phata,
Vdgaon, Taluka Hatkanangali, Kolhapur-416112, |
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Tel. No.: |
91-231-2471230 to
2471233 |
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Fax No.: |
91-230-2471229 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Shivaji Ramchandra Mohite |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Vijay Madanlal Navandhar |
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Designation : |
Director |
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Name : |
Mr. Abhay Mohanlal Doshi |
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Designation : |
Director |
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Name : |
Mr. Arunkumar Madhavprasad Goenka |
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Designation : |
Director |
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Name : |
Mr. Sanjay Dnyandeo Patil |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Cotton Yarn |
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Products : |
v Knitting v Weaving v Double v Multifold v Special Purpose v Slub v Industrial v Yarn for
Towelling v Gassed Yarn |
GENERAL INFORMATION
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Bankers : |
v
State Bank of v
Bank of |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
B.J.Ingrole and Company Chartered Accountant |
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Address : |
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CAPITAL STRUCTURE
AS ON 31.03.2007
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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26000000 |
Equity Shares |
Rs. 10/- Each |
Rs.260.000
millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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20099700 |
Equity Shares |
Rs. 10/- Each |
Rs.200.997millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
201.000 |
201.000 |
201.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
307.300 |
277.300 |
248.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
508.300 |
478.300 |
449.700 |
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LOAN FUNDS |
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1] Secured Loans |
819.000 |
716.500 |
441.500 |
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2] Unsecured Loans |
141.000 |
91.200 |
53.100 |
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TOTAL BORROWING |
960.000 |
807.700 |
494.600 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
1468.300 |
1286.000 |
944.300 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
769.400 |
534.100 |
369.800 |
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Capital work-in-progress |
118.700 |
83.100 |
88.800 |
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INVESTMENT |
249.100 |
241.700 |
126.300 |
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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 |
193.800
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152.100 |
172.200 |
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Sundry Debtors |
207.300
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192.600 |
128.700 |
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Cash & Bank Balances |
12.500
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16.300 |
48.700 |
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Other Current Assets |
0.000
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0.000 |
0.000 |
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Loans & Advances |
87.500
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177.600 |
133.900 |
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Total
Current Assets |
502.300
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541.600 |
485.500 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
150.300
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81.300 |
105.200 |
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Provisions |
20.900
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33.200 |
20.900 |
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Total
Current Liabilities |
171.200
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114.500 |
126.100 |
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Net Current Assets |
331.100
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427.100 |
359.400 |
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MISCELLANEOUS EXPENSES |
1.200 |
3.300 |
2.000 |
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TOTAL |
1468.300 |
1286.000 |
944.300 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Sales Turnover |
1055.800 |
996.000 |
943.300 |
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Other Income |
9.300 |
13.600 |
9.100 |
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Total Income |
1065.100 |
1009.600 |
952.400 |
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Profit/(Loss) Before Tax |
54.100 |
82.200 |
78.600 |
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Provision for Taxation |
24.100 |
29.000 |
25.400 |
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Profit/(Loss) After Tax |
30.000 |
53.200 |
53.200 |
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Expenditures : |
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Manufacturing Expenses |
47.900 |
19.000 |
21.200 |
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Administrative Expenses |
39.900 |
42.300 |
45.700 |
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Raw Material Consumed |
651.400 |
659.200 |
656.000 |
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Salaries, Wages, Bonus, etc. |
40.100 |
27.100 |
21.300 |
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Interest |
70.000 |
53.200 |
29.400 |
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Power & Fuel |
113.700 |
82.900 |
65.800 |
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Depreciation & Amortization |
48.000 |
43.700 |
34.400 |
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Total Expenditure |
1011.000 |
927.400 |
873.800 |
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QUARTERLY RESULTS
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PARTICULARS |
30.06.2008 |
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Type |
1st
Quarter |
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Sales Turnover |
278.300 |
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Other Income |
1.300 |
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Total
Income |
279.600 |
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Total Expenditure |
247.100 |
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Operating Profit |
32.500 |
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Interest |
16.400 |
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Gross Profit |
16.100 |
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Depreciation |
15.400 |
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Tax |
0.000 |
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Reported PAT |
0.700 |
KEY RATIOS
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Year |
31.03.2008 |
31.03.2007 |
31.03.2006 |
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Debt-Equity Ratio |
1.79
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1.40 |
0.94 |
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Long Term Debt-Equity Ratio |
1.06 |
0.80 |
0.53 |
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Current Ratio |
1.04 |
1.28 |
1.53 |
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TURNOVER RATIO |
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Fixed Assets |
0.98 |
1.19 |
1.34 |
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Inventory |
6.10 |
6.14 |
6.51 |
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Debtors |
5.23 |
6.10 |
7.71 |
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Interest Cover Ratio |
1.77 |
2.55 |
3.67 |
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Operating Profit Margin(%) |
16.30 |
17.98 |
15.10 |
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Profit Before Interest And Tax Margin(%) |
11.75 |
13.59 |
11.45 |
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Cash Profit Margin(%) |
7.39 |
9.73 |
9.29 |
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Adjusted Net Profit Margin(%) |
2.84 |
5.34 |
5.64 |
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Return On Capital Employed(%) |
9.01 |
12.14 |
12.78 |
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Return On Net Worth(%) |
6.08 |
11.47 |
12.24 |
LOCAL AGENCY FURTHER INFORMATION
Expansion and Modernization:
i) Forward integration in Textiles Operations:
a) Company had planned expansion under its textile operations for forward
integration, comprising.
Weaving Project comprising manufacturing of fabric on 192 looms.and* Setting up
of Knit-Fabric Processing unit and* Setting up of Yarn Dyeing unit.
b) Total project cost of this forward integration projects was around Rs.1060
millions, appraisal of which was done by SBI Caps. Company wanted to raise
total Term Loan of Rs. 720 millions for these projects, for which BOB had
sanctioned its 50% stake of Rs. 360 millions. Remaining Term Loan of Rs.360
millions was to be sanctioned by SBI.
c) However now the Company prefers to relook at the project relating to
Knit-Fabric Processing and Yarn Dyeing and for the moment these projects are
deferred by the Company.
d) Company has gone ahead with the Weaving Project comprising 192 second hand
looms. Cost of project of this Weaving project stands revised to Rs.300
millions for which Company expects to have Term Loan of Rs. 204.500 millions.
Company has already
procured around 184 looms (II hand) from Bombay Dyeing' and completed the
factory building etc. The project is made operational during April -08. Fabric
manufactured on this Weaving Project is proposed to be bought back by Bombay
Dyeing'. Buy-back agreement is already executed with Bombay Dyeing' by the
Company
ii) Hydro Electricity Project of 10-MW at Radhanagari (Dist-Kolhapur):
Subject company has started setting up of Hydro Elec. Project of 10MW capacity
at Radhanagari (
Erection of
imported plant, together with domestic components, will be commissioned by M/s
Mahati Electricals, Pune, during Oct-08 and is likely to be fully complete by
end of Dec-08. Trial runs are expected to be commenced during Jan/ Feb
-2009.
iii) Garmenting
under OZARIO' brand:
Subject Company has
continued to explore a venture of manufacturing the garments, which are made
available in all sizes and multi colours, under OZARIO brand name. OZARIO -
presents wide range of 100% fine cotton knit wears with world class styles and
international blend of colours at competitive prices.
Subsidiary company
Subject company holds 51% stake in First Steps Baby-Wear Pvt.
Ltd., which is engaged in manufacturing of baby-wear apparels based in
Subject company has also taken 91.66% stake in Mohite and Mohite
(Engineers and Contractors) Pvt. Ltd., which is engaged in construction of
earthen-dams.
MANAGEMENT
DISCUSSION and ANALYSIS:
The management of Subject Company presents the analysis of business
performance of the Company for the year 2007-2008 and its outlook for the
future. This outlook is based on assessment of the current business
environment. It may vary due to future economic and other developments, both in
INDUSTRY STRUCTURE and FUTURE OUTLOOK:
a) The Textile and Clothing sector has witnessed unprecedented investment trend
in the last few years, so much so that for the last five years the CAGR of
investment has been around 100%. It is more encouraging to see that weak
sectors like processing have drawn significant investment in the last two
years.
b) The growth figures of the last few years have made the entire textile
industry brim with unprecedented confidence and optimism. These growth targets
envisaged a fundamental shift in the textile scenario and have taken a
trajectory of a very rapid growth. There has been a boost in the Indian
Domestic Textile Sector. The increasing GDP per capita has let to greater
disposable income with the Indian people. There have been more working female
population, leading to increasing purchases and a major portion of the
purchases is among the textile and clothing items.
c) The growth penetration of organized retail (the percentage is expected to
increase from the present 3% to 10% by 2010) will increase the availability and
hence the purchase of textile and clothing by the Indian consumer.
d) In the Export sector removal of MFA has given a boost to the Indian textile
entrepreneurs, a trend which has only been augmented by the progressive dismantling
of spinning and weaving from the developed world.
Added to this, the quota limitations to
e) The Indian textile industry plays a vital role in the Indian economy by
contributing to GDP, generating employment and earning foreign exchange. An
estimated 38 million people are directly employed in the textile industry in
WEBSITES DETAILS
Subject is a
Spinning Unit manufacturing and exporting 100% cotton yarn of the count range
between 20s and 100s. Initially it’s started with installation 14112 spindles
in 1995. They went in for expansion by setting additional 12896 spindles, with
the required back process machinery, making total installed capacity of 35216
spindles in the month of Oct. 1998.
The replacement of machines installed in 1995 is started with new Ring Frames
and will be finished be September 2005.
Expansion program
in manufacturing capacity has been completed and the entire machinery is now in
full operational effective from October 1998. Back process machinery like
Blow-room, Carding, Combers and Draw-frames, is from ‘RIETER’ –
They installed ‘VISION SHIELD’ from RIETER, which removes contamination and foreign matter from the cotton in Blow-room itself. Also‘Loepfe Yarn Master 900 I Yarn SIRO CLEARERS to check contamination and to remove it at final stage. Loepfe Spectra is also with imperfection channel on Auto-Coners. List of such state-of-the-art machinery installed at our Mills is separately given.
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Blow - Room Line (With Vision Shield For Contamination And Uniclean, Uniflex) |
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Cards - C 51 |
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Draw Frames - Sb / D-10 |
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Unilap - E 30 |
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COMBERS-E60hcombed |
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Draw Frames - Rsb/ D 30 |
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Speed Frame L/F 1400 A |
Lakshmi Rieter |
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Ring Frameg 5/1- 1008 Spindles. |
Lakshmi Rieter |
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Autoconers – 338 |
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Precision Winding |
P.S.Mettler |
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Vts 09.6 T. F. O. |
Volkmann |
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Spinning Cans |
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Spider Web |
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Abc Control |
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Xorella |
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Ring Eye |
Premier Polytronics |
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Loepfe |
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Humidifaction Plant |
Luwa |
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Cotton Testing |
Peyer
– 5200 Hvi -
900 Uster Afis - N |
Motion
Control Inc, |
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Yarn Testing |
Uster
Tester – Iii Uster
Tensorapid – Iii
Uster Classimat – Ii
Uster
Autosorter-Iii Uster
Tester – Iii Wrap Reel
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CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs. |
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1 |
Rs. |
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Euro |
1 |
Rs. |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
5 |
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OPERATING SCALE |
1~10 |
5 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
5 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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--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 |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
NO |
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--LISTED |
YES/NO |
YES |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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46 |
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 |
|
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>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 |
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