MIRA
INFORM REPORT
|
Report Date : |
13.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
ADDI INDUSTRIES LIMITED |
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Registered Office : |
A-106, Sector – IV, Uttar Pradesh District, Gautam Nagar, Noida – 201 301,
Uttar Pradesh |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
26.12.1980 |
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Com. Reg. No.: |
22154 |
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CIN No.: [Company
Identification No.] |
L51109UP1980PLC022154 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MRTA00787D |
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PAN No.: [Permanent
Account No.] |
AAACA7660H |
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Legal Form : |
Public limited liability company. Company’s shares are listed on the
Stock Exchange. |
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Line of Business : |
Manufacturer and Exporter of Garments. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 860000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established and reputed company having satisfactory
track. Trade relations are fair. Business is active. General Financial
position is satisfactory. Payments are reported as usually correct and as per
commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Sunil Agarwal |
|
Designation : |
Finance Manager |
|
Date : |
11.09.2008 |
LOCATIONS
|
Registered Office : |
A-106, Sector – IV, Uttar Pradesh District, Gautam Nagar, Noida – 201
301, Uttar Pradesh, India |
|
Tel. No.: |
91-95120-2529336 |
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Mobile No.: |
91-9211456605 |
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Fax No.: |
91-95120-2529334 |
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Factory : |
·
A-105, 106, Sector IV, Noida – 201 301, Uttar Pradesh, India ·
B-1,2,3, Hosiery Complex, Phase-II, Noida, Uttar Pradesh, India ·
H-11, Textile Colony, Industrial Area, Ludhiana ·
C-227, Industrial Area, Bulandshahr Road, Ghaziabad, Uttar Pradesh,
India ·
A-32, 33, 34, Industrial Area, Sikandarabad, Uttar Pradesh, India |
DIRECTORS
|
Name : |
Mr. C L Jain |
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Designation : |
Chairman and Managing Director |
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Qualification : |
CA |
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Name : |
Dr. B K Behera |
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Designation : |
Chairman and Managing Director |
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|
Name : |
Mr. V B Agarwal |
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Designation : |
Chairman and Managing Director |
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Name : |
Mr. Hari Bansal |
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Designation : |
Whole Time Director |
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Qualification : |
Graduate |
KEY EXECUTIVES
|
Name : |
Mr. Atul Jain |
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Designation : |
Manager Finance and Compliance Officer |
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Name : |
Mrs. Urmila Jain |
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Designation : |
General Manager - Production |
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Name : |
Mr. Abhishek Bansal |
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Designation : |
Marketing Manager |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 31.03.2007)
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
Promoters and Associates |
6518972 |
60.380 |
|
Mutual Funds, Axis and Bank |
11600 |
00.107 |
|
Private Corporate Bodies |
1810910 |
16.773 |
|
Indian Public |
2349635 |
21.763 |
|
NRI’s |
105457 |
00.977 |
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|
|
|
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Total |
10796574 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Exporter of Garments. |
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Exports : |
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Countries : |
USA |
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Selling : |
L/C and Cash |
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Purchasing : |
Cheque |
PRODUCTION STATUS
|
Particulars |
Unit |
Actual
Production |
|
Cotton Knitted and Woven |
Pcs |
251650 |
|
Garments except samples |
|
(410068) |
GENERAL INFORMATION
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Customers : |
·
Wholesalers ·
Retailers |
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No. of Employees : |
400 |
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Bankers : |
Punjab National Bank Nehru Place |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
M/S. S R Dinodia and Company Chartered Accountants |
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Address : |
K-39 Connaught Circus, New Delhi – 110 001, India |
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|
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Associates/Subsidiaries : |
Aum Texfab Private Limited |
CAPITAL STRUCTURE
(As on 31.03.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
Equity Shares |
Rs.5/- each |
Rs.75.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10796574 |
Equity Shares |
Rs.5/- each |
Rs.53.983
millions |
|
|
Amount received on Equity Shares Forfieted
(Previous year Rs.0.017 million) (Amount originally paid up) |
|
Rs.0.017
million |
|
|
|
|
|
|
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Total |
|
Rs.54.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
54.000 |
54.000 |
54.000 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
137.650 |
172.198 |
306.300 |
|
|
4] (Accumulated Losses) |
(20.479) |
0.000 |
0.000 |
|
|
NETWORTH |
171.171 |
226.198 |
360.300 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4.275 |
3.110 |
33.300 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
4.275 |
3.110 |
33.300 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
4.268 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
175.446 |
233.576 |
393.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
69.160 |
119.572 |
175.900 |
|
|
Capital work-in-progress |
0.090 |
1.693 |
4.900 |
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|
|
|
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INVESTMENT |
17.353 |
10.679 |
3.200 |
|
|
DEFERREX TAX ASSETS |
2.477 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
30.400
|
27.943 |
63.700 |
|
|
Sundry Debtors |
4.711
|
4.575 |
40.800 |
|
|
Cash & Bank Balances |
30.246
|
73.670 |
60.800 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
30.003
|
40.512 |
81.300 |
|
Total
Current Assets |
95.360
|
146.700 |
246.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
7.767
|
36.613 |
21.400 |
|
|
Provisions |
1.227
|
8.455 |
15.600 |
|
Total
Current Liabilities |
8.994
|
45.068 |
37.000 |
|
|
Net Current Assets |
86.366
|
101.632 |
209.600 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
|
|
|
|
|
|
TOTAL |
175.446 |
233.576 |
393.600 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
72.743 |
80.725 |
519.300 |
|
|
Other Income |
18.322 |
13.311 |
45.800 |
|
|
Total Income |
91.065 |
94.036 |
565.100 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
(55.202) |
(111.568) |
(4.000) |
|
|
Provision for Taxation |
(0.175) |
22.576 |
(5.100) |
|
|
Profit/(Loss) After Tax |
(55.027) |
(134.144) |
1.100 |
|
|
|
|
|
|
|
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Earnings in Foreign Currency : |
|
|
|
|
|
|
FOB Value of Goods Exports |
42.966 |
45.618 |
0.000 |
|
Total Earnings |
42.966 |
45.618 |
0.000 |
|
|
|
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|
|
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Imports : |
|
|
|
|
|
|
Raw Materials |
0.000 |
(0.535) |
0.000 |
|
|
Stores & Spares |
3.874 |
(2.025) |
0.000 |
|
Total Imports |
3.874 |
(2.560) |
0.000 |
|
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|
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Expenditures : |
|
|
|
|
|
|
Manufacturing, Selling, Administrative and
Other Expenses |
118.001 |
172.110 |
220.000 |
|
|
Personnel Expenses |
10.957 |
13.930 |
0.000 |
|
|
Financial Expenses |
1.319 |
2.731 |
0.000 |
|
|
Raw Materials |
0.000 |
0.000 |
178.500 |
|
|
Excise Duty |
0.000 |
0.000 |
1.100 |
|
|
Increase/(Decrease) in Finished Goods |
0.000 |
0.000 |
18.500 |
|
|
Employee Cost |
0.000 |
0.000 |
71.500 |
|
|
Interest and Financial charges |
0.000 |
0.000 |
11.800 |
|
|
Miscellaneous Expenses |
0.000 |
0.000 |
11.100 |
|
|
Power & Fuel |
0.000 |
0.000 |
25.200 |
|
|
Depreciation & Amortization |
15.990 |
16.833 |
31.400 |
|
Total Expenditure |
146.267 |
205.604 |
569.100 |
|
SUMMARISED RESULTS
|
PARTICULARS |
31.03.2008 |
|
Type |
Full
Year |
|
Sales
Turnover |
152.500 |
|
Other
Income |
64.700 |
|
Total
Income |
217.200 |
|
Total
Expenditure |
179.000 |
|
Operating
Profit |
38.200 |
|
Interest |
2.300 |
|
Gross
Profit |
35.900 |
|
Depreciation |
8.500 |
|
Tax |
0.300 |
|
Reported
PAT |
12.800 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2008 |
|
Type |
1st
Quarter |
|
Sales
Turnover |
39.500 |
|
Other
Income |
3.800 |
|
Total
Income |
43.300 |
|
Total
Expenditure |
39.300 |
|
Operating
Profit |
4.000 |
|
Interest |
1.100 |
|
Gross
Profit |
2.900 |
|
Depreciation |
2.800 |
|
Tax |
0.000 |
|
Reported
PAT |
0.100 |
KEY RATIOS
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
Debt-Equity Ratio |
0.02 |
0.06 |
0.21 |
|
Long Term Debt-Equity Ratio |
0.00 |
0.00 |
0.00 |
|
Current Ratio |
3.50 |
3.18 |
2.11 |
|
TURNOVER
RATIOS |
|
|
|
|
Fixed Assets |
0.23 |
0.20 |
1.19 |
|
Inventory |
2.50 |
1.76 |
6.77 |
|
Debtors |
15.66 |
3.56 |
9.36 |
|
Interest Cover Ratio |
(24.23) |
(28.22) |
0.70 |
|
Operating Profit Margin(%) |
(21.29) |
(73.61) |
7.64 |
|
Profit Before Interest And Tax
Margin(%) |
(43.27) |
(94.42) |
1.60 |
|
Cash Profit Margin(%) |
(22.80) |
(104.83) |
6.34 |
|
Adjusted Net Profit Margin(%) |
(44.78) |
(125.65) |
0.29 |
|
Return On Capital Employed(%) |
0.00 |
0.00 |
1.89 |
|
Return On Net Worth(%) |
0.00 |
0.00 |
0.41 |
LOCAL AGENCY
FURTHER INFORMATION
OPERATIONS
The performance during the financial year continues to be dismal and depressed,
due to a combination of factors. The operations in the Dyeing Plant were closed
on account of high operational costs, and its non economical viability.
The Company suffered a loss of Rs.22.424 millions on sale of old machinery and
equipment including those of its wom-out and outdated plant and machinery of
the closed and non-operational Dyeing Unit. All these cumulative factors have
adversely affected the turnover and the profitability of the Company during the
year under report.
TECHNOLOGY UPGRADATION,
MODERNISATION-CUM-DIVERSIFICATION:
The Company has incurred nominal capital expenditure of Rs.0.341 millions on
technology upgradation and modernization of its equipment wherever considered
necessary, during the year under report, as against Rs. 3.520 millions incurred
in the preceding year.
FUTURE
PROSPECTS:
During the first quarter ended on 30th June, 2007, the Company has achieved
turnover of Rs.19.546 millions only (incl. exports of Rs.14.658 millions) as
against Rs.10.979 millions (incl. exports of Rs.4.425 millions) in the
corresponding first quarter of the previous year. Strict monitoring is being
done to cut down costs and overheads wherever feasible to make the product more
price competitive. Product diversification and addition of high value added
products is being carried on. The Directors are making efforts and have taken
effective steps to increase the turnover, exports and improve the profitability
of the Company. The performance is poised for improvement in the current
year.
The Company is also expanding its domestic market gradually by opening more
retail outlets, including franchisees and new and diversified product lines are
continuously being added in the domestic retail marketing, keeping in view the
market requirements.
FINANCES:
The Company continues to have the support of its Bankers, Punjab National Bank,
for the working capital requirements commensurate with its business
activities.
MANAGEMENT
DISCUSSION & ANALYSIS REPORT
Industry structure and
developments:
The knitwear sector in the textile industry plays an important role in the
Indian Economy. This industry, however, is highly competitive and fragmented.
During the year 2005-07 the exports of ready-made garments showed some positive
upward trend, after witnessing a declining trend in the aftermath of
elimination of textile quota. Export growth was also severely affected due to
several internal and external developments. Stiff global competition continued
to have an adverse impact on business prospects and profitability.
Opportunities and Threats:
Ample opportunities exist in the Textile Industry. The positive trend and the
increasing growth in export of knitted garments augurs well for this segment of
the textile industry. There is a perceptible change in the outlook and shift
for diversified and high value-added products.
Textile Companies are always experiencing pricing pressures. The abolition of
quota regime has opened trade to fierce competition. Prices are bound to be
under pressure due to stiff international competition. Besides, lack of modern
technology and archaic personnel laws are some of the other areas of
significant threats.
Subject is seized of all such factors having adverse effect on its exports. It
is always eager and endeavouring to constantly update its plant and equipment
for producing the best quality products.
Sales in Company's domestic retail outlets is gradually improving. Keeping in
view the market requirements, new and diversified product lines are
continuously being added in the domestic market.
Segment wise Performance:
The Company operates in one segment only i.e. manufacturing of garments. Hence,
no segment-wise performance reporting is available.
Financial and Operational
Performance
The performance during the year 2006-07 continued to be depressed due to a
combination of factors. The Company achieved turnover of Rs.72.743 millions (including
exports of Rs.42.966 millions) as against the turnover of Rs.80.725 millions
(including exports of Rs.45.618 millions) in the previous year. However margins
have been under pressure.
The company suffered an operational loss of Rs.55.202 millions, which includes
loss of Rs.22.424 millions on sale of its old machinery and equipment. The
operational loss in the year under report was however much lower compared to
the operational loss of Rs.111.568 millins in the previous year.
Outlook:
Exports in the current year 2007-08 are looking up. The Company has achieved
exports of Rs.14.658 millions in the first quarter ended 30th June, 2007 as
compared to the exports of Rs.4.425 millions in the first quarter of the
preceding year. The abolition of quota system, though largely viewed as a cost
reduction measure, but it has surfaced as a tool for high pressure on selling
prices of the export products. Exports also depend a lot on Govt. policies and
developments in the international market.
FIXED ASSETS
·
Leasehold Land Building :
o
Office
o
Factory
o
Flat
·
Plant and Machinery
·
Leasehold Improvements
·
Electrical Installation
·
Furniture and Fixture
·
Vehicles
·
Computer
Financials of Addi Industries
(Rs. In Millions)
|
|
Quarterly |
Annual |
|
Income Statement |
31.03.2008 |
31.03.2008 |
|
|
|
|
|
Net Sales |
54.300 |
152.400 |
|
Other Income |
60.800 |
64.700 |
|
PBDIT |
39.100 |
38.100 |
|
Net Profit |
25.700 |
12.900 |
|
|
|
Annual |
|
Balance Sheet |
|
31.03.2008 |
|
Total Share Capital |
|
54.000 |
|
Net Worth |
|
171.200 |
|
Total Debt |
|
4.300 |
|
Net Block |
|
69.100 |
|
Investments |
|
17.400 |
|
Net Current Assets |
|
88.900 |
|
Total Assets |
|
175.500 |
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.45.77 |
|
UK Pound |
1 |
Rs.80.67 |
|
Euro |
1 |
Rs.64.20 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|