MIRA
INFORM REPORT
|
Report Date : |
09.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
K.P.R. MILL LIMITED |
|
|
|
|
Formerly Known
As : |
K.P.R. COTTON MILLS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
9, |
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|
Country : |
|
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|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
19.03.2003 |
|
|
|
|
Com. Reg. No.: |
18-010518 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.526.829
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TZ2003PLC010518 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBK04050E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCK0893N |
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|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are listed on
stock exchange. |
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|
|
|
Line of Business
: |
The Company is mainly engaged in the business of manufacturing of textiles
consisting of yarn, fabrics and garments. |
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|
|
|
No. of Employees
: |
9116 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 23806000 |
|
|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
|
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Litigation : |
Clear |
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|
Comments : |
Subject is an established company having fine track. Trade relations
are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
9, |
|
Tel. No.: |
91-422-2479835 |
|
Fax No.: |
91-422-2470159 |
|
E-Mail : |
|
|
Website : |
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|
Corporate Office : |
270 J, Periyar Colony, Anupparpalayam, Tirupur – 641 652 , |
|
Tel. No.: |
91-421-2487081-86 |
|
Fax No.: |
91-421-2470780 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Spinning |
|
Tel. No.: |
91-4285-251490 |
|
|
|
|
Factory 2 : |
Spinning S.F.No.273, Kittampalayam,
Karumathampatti, |
|
Tel. No.: |
91-421-2336111 |
|
|
|
|
Factory 3 : |
Spinning and
Knitting S.F. No.525, Neelambur, |
|
Tel. No.: |
91-422-2625115 |
|
|
|
|
Factory 4 : |
Spinning,
Knitting and Garmenting S.F.N0.181, Kollupalayam, Arasur, |
|
Tel. No.: |
91-422-2635500 |
|
|
|
|
Factory 5 : |
Garmenting 252, Periyar Colony, Tirupur - 641 652, |
|
Tel. No.: |
91-421-2487081 |
|
|
|
|
Factory 6 : |
Processing SIPCOT Industrial Area, |
|
Tel. No.: |
91-4294-234145 |
|
|
|
|
Windmills : |
Tirunelveli, Tenkasi, Theni and Coimbatore District |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. K.P. Ramasamy |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
01.05.1949 |
|
Qualification : |
|
|
Date of Appointment : |
09.01.2007 |
|
Directorship in other Indian Public Companies as on 31.03.2011 : |
v
K.P.R. Developers Limited |
|
|
|
|
Name : |
Mr. K.P.D. Sigamani |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
04.08.1953 |
|
Qualification : |
M.Sc |
|
Date of Appointment : |
09.01.2007 |
|
Directorship in other Indian Public Companies as on 31.03.2011 : |
v
K.P.R. Developers Limited |
|
|
|
|
Name : |
Mr. P. Natraj |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
04.08.1957 |
|
Qualification : |
F.C.A. |
|
Date of Appointment : |
09.01.2007 |
|
Directorship in other Indian Public Companies as on 31.03.2011 : |
v
K.P.R. Developers Limited |
|
|
|
|
Name : |
Mr. C.R. Anandakrishnan |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
03.09.1977 |
|
Qualification : |
M.B.A. |
|
Date of Appointment : |
31.01.2011 |
|
|
|
|
Name : |
Mr. Shujaat Khan |
|
Designation : |
Director |
|
Date of Birth/Age : |
18.01.1970 |
|
Qualification : |
M.B.A. |
|
Date of Appointment : |
14.11.2006 |
|
Directorship in other Indian Public Companies as on 31.03.2011 : |
v
Rane Holding Limited v
KMC Constructions Limited |
|
|
|
|
Name : |
Mr. K.N.V. Ramani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.J. Vijayaraaghavan |
|
Designation : |
Director |
|
Date of Birth/Age : |
03.08.1932 |
|
Qualification : |
F.C.A. |
|
Expertise in Specific Functional Area: |
Mr. M.J. Vijayaraaghavan, an Independent Director, is a Chartered Accountant
with over four decades of experience. He is a senior partner of M.S.
Jagannathan and Visvanathan,Chartered Accountants, who are the Statutory
Auditors of Leading Companies located in |
|
Date of Appointment : |
05.10.2006 |
|
Directorship in other Indian Public Companies as on 31.03.2011 : |
v
Shanti Gears Limited v
K.G. Denim Limited |
|
|
|
|
Name : |
Mr. G.P. Muniappan |
|
Designation : |
Director |
|
Date of Birth/Age : |
69 Years |
|
|
|
|
Name : |
Dr. K. Sabapathy |
|
Designation : |
Director |
|
Date of Birth/Age : |
04.06.1955 |
|
Qualification : |
M. Sc., M.Phil., PhD. |
|
Date of Appointment : |
21.02.2007 |
|
Expertise in Specific Functional Area: |
Dr. K. Sabapathy, an Independent Director, was a faculty of Physics in
PSG College of Arts and Science for 5 years from 1977 to 1982 and a faculty
of Physics and Computer Science in |
|
Other Directorship: |
Coimbatore Capital Limited |
|
|
|
|
Name : |
Mr. A.M. Palanisamy |
|
Designation : |
Director |
|
Date of Birth/Age : |
15.08.1950 |
|
Qualification : |
F.C.A. |
|
Date of Appointment : |
22.02.2010 |
|
Directorship in other Indian Public Companies as on 31.03.2011 : |
v
Kovai Medical Centre and Hospital Limited |
|
|
|
|
Name : |
Mr. A. Sekar |
|
Designation : |
Whole Time Director |
|
Date of Birth/Age : |
53 Years |
|
Experience : |
22 Years |
|
|
|
|
Name : |
Mr. C. Thirumurthy |
|
Designation : |
Director |
|
Date of Birth/Age : |
16.04.1959 |
|
Qualification : |
F.C.S. |
|
Date of Appointment : |
31.01.2011 |
KEY EXECUTIVES
|
Name : |
Mr. P. Kandaswamy |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. J.S. Kumar |
|
Designation : |
Vice President (Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
27,030,000 |
71.73 |
|
|
1,038,000 |
2.75 |
|
|
28,068,000 |
74.48 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
28,068,000 |
74.48 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,063,691 |
2.82 |
|
|
30,390 |
0.08 |
|
|
953 |
- |
|
|
3,347,185 |
8.88 |
|
|
4,442,219 |
11.79 |
|
|
|
|
|
|
1,457,864 |
3.87 |
|
|
|
|
|
|
1,113,940 |
2.96 |
|
|
925,358 |
2.46 |
|
|
1,675,511 |
4.45 |
|
|
5,374 |
0.01 |
|
|
58,186 |
0.15 |
|
|
2 |
- |
|
|
1,611,949 |
4.28 |
|
|
5,172,673 |
13.73 |
|
Total Public shareholding (B) |
9,614,892 |
25.52 |
|
Total (A)+(B) |
37,682,892 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
37,682,892 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
The Company is mainly engaged in the business of manufacturing of
textiles consisting of yarn, fabrics and garments. |
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Products : |
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
UOM |
|
|
Installed
Capacity |
|
Yarn |
Spindles |
|
|
220176 |
|
Particulars |
Unit |
|
|
Production/
Purchases |
|
Garment |
Lakh Pieces |
|
|
149.64 |
|
Yarn |
Metric Tonne |
|
|
44897.20 |
|
Fabric |
Metric Tonne |
|
|
9454.98 |
|
Dyed Fabric |
Metric Tonne |
|
|
-- |
|
Waste |
Metric Tonne |
|
|
8476.23 |
GENERAL INFORMATION
|
Customers : |
·
·
C and A – ·
Ethel Alustin Limited, ·
Kiabi – France ·
Bandos AG – ·
Mother Care – ·
Innovations Club – ·
Grouppo Industry Moda SPA – ·
Vetri – France ·
|
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No. of Employees : |
9116 (Approximately) |
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|
Bankers : |
·
Bank of ·
Bank of ·
Corporation Bank ·
IDBI Bank Limited ·
Oriental Bank of Commerce ·
State Bank of ·
State Bank of ·
State Bank of Travancore ·
The Karnataka Bank Limited ·
United Bank of |
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Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
41, Shanmuga Manram, Race Cource, |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Mr. A Vetrivel B.Sc. F.C.A Chartered Accountant |
|
Address : |
1/1, Seth Narayan Das Layout, 2nd Street, Tatabad, |
|
|
|
|
Enterprises owned or significantly influenced by key management
personnel/ Directors or their relatives : |
K.P.R. Developers Limited |
|
|
|
|
Subsidiaries : |
Quantum Knits Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 Millions |
|
1500000 |
7% Redeemable Cumulative Non-Convertible Preference Shares |
Rs.100/- each |
Rs.150.000 Millions |
|
|
Total |
|
Rs.550.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
37682892 |
Equity Shares |
Rs.10/- each |
Rs.376.829
Millions |
|
1500000 |
7% Redeemable Cumulative Non-Convertible Preference Shares |
Rs.100/- each |
Rs.150.000
Millions |
|
|
Total |
|
Rs.526.829 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
526.829 |
376.829 |
376.829 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5424.678 |
4982.478 |
4722.347 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5951.507 |
5359.307 |
5099.176 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6614.775 |
4391.955 |
5098.868 |
|
|
2] Unsecured Loans |
121.520 |
158.248 |
189.980 |
|
|
TOTAL BORROWING |
6736.295 |
4550.203 |
5288.848 |
|
|
DEFERRED TAX LIABILITIES |
418.753 |
534.007 |
395.735 |
|
|
|
|
|
|
|
|
TOTAL |
13106.555 |
10443.517 |
10783.759 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8143.583 |
7690.011 |
8205.807 |
|
|
Capital work-in-progress |
1774.521 |
254.984 |
3.005 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.000 |
1.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2668.444
|
1226.463
|
2070.366
|
|
|
Sundry Debtors |
1347.377
|
1059.204
|
1164.476
|
|
|
Cash & Bank Balances |
357.382
|
518.917
|
462.324
|
|
|
Other Current Assets |
46.811
|
137.887
|
229.443
|
|
|
Loans & Advances |
516.496
|
787.034
|
530.678
|
|
Total
Current Assets |
4936.510
|
3729.505
|
4457.287
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1176.495
|
633.302
|
1541.157
|
|
|
Other Current Liabilities |
433.998
|
357.002
|
250.391 |
|
|
Provisions |
138.566
|
241.679
|
90.792
|
|
Total
Current Liabilities |
1749.059
|
1231.983
|
1882.340
|
|
|
Net Current Assets |
3187.451
|
2497.522
|
2574.947
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13106.555 |
10443.517 |
10783.759 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9656.309 |
7885.024 |
7181.775 |
|
|
|
Other Income |
933.143 |
441.417 |
320.873 |
|
|
|
TOTAL (A) |
10589.452 |
8326.441 |
7502.648 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Decrease/ (Increase) in Stock |
(515.217) |
(26.648) |
13.550 |
|
|
|
Cost of Goods Consumed |
7052.354 |
5173.031 |
5102.949 |
|
|
|
Manufacturing and Direct Expenses |
690.008 |
633.245 |
576.981 |
|
|
|
Salaries, Wages and Other Employee Benefits |
564.302 |
464.452 |
493.309 |
|
|
|
Administrative and Other Expenses |
154.565 |
264.087 |
55.464 |
|
|
|
Selling and Distribution Expenses |
154.833 |
152.118 |
134.162 |
|
|
|
TOTAL (B) |
8100.845 |
6660.285 |
6376.415 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2488.607 |
1666.156 |
1126.233 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
311.560 |
271.590 |
383.689 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2177.047 |
1394.566 |
742.544 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1256.754 |
704.973 |
559.544 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
920.293 |
689.593 |
183.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
207.700 |
187.783 |
81.966 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
712.593 |
501.810 |
101.034 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1974.175 |
1764.225 |
1758.943 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
71.259 |
50.181 |
7.578 |
|
|
|
Preference Dividend |
6.156 |
0.000 |
0.000 |
|
|
|
Tax on Preference Dividend |
1.022 |
0.000 |
0.000 |
|
|
|
Interim Dividend |
113.049 |
150.732 |
0.000 |
|
|
|
Tax on Interim Dividend |
18.776 |
25.035 |
0.000 |
|
|
|
Proposed Dividend |
113.050 |
56.524 |
75.366 |
|
|
|
Tax on Proposed Dividend |
18.340 |
9.388 |
12.808 |
|
|
BALANCE CARRIED
TO THE B/S |
2345.116 |
1974.175 |
1764.225 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods at FOB value |
1595.834 |
1956.731 |
1800.873 |
|
|
TOTAL EARNINGS |
1595.834 |
1956.731 |
1800.873 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
211.802 |
1395.658 |
176.985 |
|
|
|
Stores & Spare Parts |
36.944 |
33.129 |
20.922 |
|
|
|
Machinery |
272.838 |
57.631 |
144.259 |
|
|
TOTAL IMPORTS |
521.584 |
1486.418 |
342.166 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.72 |
13.32 |
2.68 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.73 |
6.03
|
1.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.53 |
8.75
|
2.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.04 |
6.04
|
1.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15 |
0.13
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.43 |
1.08
|
1.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.82 |
3.03
|
2.37 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
KPR Cotton Mills Private Limited, now known as KPR Mill Limited,
was originally incorporated on March 19, 2003. The company has vertically
integrated apparel company with International accreditations for quality
control, environmental standards and social accountability, is a manufacturer
of readymade knitted apparel, cotton knitted fabric and yarn in
REVIEW OF OPERATIONS
With constant
growth in all its activities, the Company could cross a milestone of achieving
more than Rs.10000.000 millions Turnover during the financial year. With
operations at 90% capacity utilization, the Yam Division witnessed a strong
traction in its revenues. Similar trends prevailed in Garment and Processing
Divisions too. The Company's Export Revenue increased by 28% over last year to
Rs.2998.800 millions, of which around 94% contributed by Garment Division.
These enabled the Company to attain commendable total revenue of Rs.11095.600
millions, @ 33% over last year's Rs.8370.900 millions registering an enhanced
profitability with EBlTDA for Current Year Rs.2514.500 millions, from
Rs.1671.700 millions in previous year, an increase of 50%. Net Profit increased
to Rs.722.100 millions in current year from Rs.504.400 millions of previous
year. Overall improvement in Capacity Utilisation and the encouraged market
conditions enabled the achievement.
EXPANSION AND MODERNIZATION
The ongoing expansion
and modernization projects undertaken by the Company comprise of:
1. Compact Spinning Expansion
As reported last
year the Company expands in high margin, high value-add compact yarn segment.
Addition of 1,03,680 spindles with a total outlay of Rs.3100.000 millions at
Karumathampatti utilising the Term Loan assistance from Banks and the
unutilized IPO Funds is in progress. Around 80% of the civil construction work
that was commenced during May 201 0, has been completed. 34560 spindles have
been installed, in which 10080 spindles were already put in to operation.
Commercial production commenced during April 2011 which is expected to be fully
operational by September 2011. Entire Term
Loan availed is
eligible for TUF subsidy.
2. Windmill
Added 25 Wind
Mills of 21.25 MW capacity to the present 39.82 MW thereby enhancing its Wind
Power generation capacity to 61.07 MW to support its Compact Spinning capacity
Expansion. The strategic approach of supplementing all its expansion activities
with simultaneous wind energy capacity addition:
1. Reassures KPR
's ability to meet its power requirements through wind energy
2. Reduces its
Power cost significantly
3. Reiterates its
commitments towards Green initiatives
3. Modernisation at Sathyamanaalam Mill
Through
Modernisation cum Expansion plan at an estimated cost of Rs.384.500 millions at
Sathyamangalam, the total Spindles envisaged are 51,456, out of which 21,216
Spindles have been erected during March 2011 and the balance is expected to be
completed in a phased manner by October 2011.
4. Melange Yarn
Spinning
Enthused by the
domestic and export market demand, the Company has initiated. Installation of
16,128 Spindles of Melange Yam capacity at Karumathampatti plant considering
the cost and location benefits. The total cost of the expansion is estimated at
Rs.177.200 millions and average cost per Spindle will be Rs.11,000 which has
leverage of economics. The unique features of Melange Yarn are the natural
fiber with excellent treatment enabling coziness, softness and lively color.
Besides meeting 25% of captive consumption it shall cater to the needs of
market. Around 20% Civil work is completed and the project is expected to be
fully operational by January2012 in a phased manner.
After completion
of the aforesaid projects the total spinning capacity will rise to 353088
spindles from the existing 212064 (up 66%).
FUTURE OUTLOOK
The Company
continues to accelerate growth through its focused approach in higher value-
add segments of the textile value chain by expansion and modemisation. Further,
to maintain its self-reliance in power requirements, additional wind power
capacity is added. These new endeavors promises sustained growth in the years
to come enhancing its profitability and returns.
Contrary to the
surge prevailed in most part of the financial year, the prices of cotton
vis-ŕ-vis yarn are witnessing sharp decline. However The Company believes that
this short term trend would bounce back once the prices stabilize.
With concerted
efforts to move deeper into premium margin segments and strong cost
competitiveness, your
Company expects to
continue to deliver consistent growth and performance.
FINANCE
The Company has
been regular in meeting its obligation towards payment of Principal I Interest
to Banks.
PROPOSED FINANCIAL
PARTICIPATION:
The Board of
Directors in its Meeting held on 30.05.2011, approved 'In-Principle"
financial participation upto Rs.725.000 millions, to be met out of internal
accruals over 2 years, in K.P.R. Sugar Mills Private Limited for setting up a
Sugar cum Co-gen Project at Bijapur District, Karnataka. K.P.R. Sugar Mills
Private Limited will be a Subsidiary of the Company and by virtue of this
participation there will be access to 34 MW of Green Power. This along with
their existing investments in wind power will position the Company with an
unique distinction of having 100% Green Power of 95 MW.
SHARE CAPITAL:
As approved in the
7th Annual General Meeting of the Company 15,00,000, 7% Redeemable Cumulative
Non-Convertible Preference Shares of Rs.100/- each were allotted to K.P.R.
Developers Limited as a consideration other than cash.
MANAGEMENT DISCUSSION AND ANALYSIS
Financial Year
2011 was a landmark year for the Company in terms of financial performance. The
continued growth momentum in the sector, driven by robust domestic demand,
helped the Company cross the coveted mark of Rs.10000.000 millions in revenues.
Strong traction in sales across all key product segments has significantly
enhanced their profitability and returns during the year.
The Company
witnessed over 32% growth in its total operating income over last year, posting
highest ever increase in revenues since listing in 2007. Operating profit
margin - which we define as earnings before interest, tax, depreciation and
amoritsations (EBITDA) divided by net sales -expanded by 270 basis points to
22.70% and net margin expanded by50 basis points to 6.50% during the fiscal
year ending March 2011. During the year, the Company increased its focus on yam
segment in order to capitalize on the high demand conditions prevailing for yam
in both domestic and export markets. This increased contribution from yarn to
55% in FYI1 from 51% in FY10. Going ahead, the ongoing expansion in 100%
compact yarn spinning capacity, to be fully commissioned by September 2011,
would further accelerate growth and profitability of the company.
Industry Overview and Developments
Indian textile
industry is the most important industrial segment for the Country. It is the
second largest provider of employment after agriculture. It contributes about
4% to the country's GDP, 14% to the industrial production and 17% to the export
earnings.
The industry
witnessed better growth momentum during fiscal year ended March 2011. It is
expected to register double digit growth of +10% during FYI2 to reach -$78bn in
size. As per Technopak estimates, the industry has the potential to grow at
over 11% CAGR to reach a size of about$134bn by2015. The main drivers of growth
are improving exports and domestic demand on the back of increasing population,
increasing income levels, rapid urbanization, improving demographics and
increasing penetration of retailers into smaller cities. Further, Government
initiatives such as Technology Upgradation Fund Scheme (TUFS), Technology
Mission on Cotton (TMC), excise and duty sops etc. would continue to support
development of the sector.
Domestic demand to continue to occupy dominant
share of the market
The Indian
domestic market for textiles is expected to grow from -$52bn in 2010 to $89bn
in 2015E, growing at a robust pace of +11% CAGR over the period. Domestic
market would continue to occupy over 65% share of the total market. However,
increased recovery in global demand would see
Total textile
exports from
The growth in
total textile exports from
Increase in Textile Production
Production increased
across various textile product categories during the fiscal year 2011. During
April-Jan'11, cotton yarn production increased by 13% YoY and cotton fabric
production by 7% YoY. Total fabric production increased by 3%YoY to reach
50,774mn sq. mt. Rapidly growing cotton production in
Business Overview
The Company is a
textile company with vertically integrated operations in
CONTINGENT LIABILITIES NOT PROVIDED FOR IN THE
ACCOUNTS (As on 31.03.2011)
a. The Company is
in receipt of a demand of Rs.8.150 millions from the Indian Bank towards
prepayment charges. The same has been contested in writ filed before the High
Court of Judicature at madras which has restrained Indian Bank from applying
proceeds of TUF subsidy towards its demand for prepayment charges. The case is
pending disposal.
b. The Company has
issued Bank Guarantee amounting to Rs.7.959 millions in favour of EPCG and Bank
Guarantee amounting to Rs.0.500 million in favour of Tamilnadu pollution
Control Board and Bank Guarantee amounting to Rs.14.850 millions in favour of
Madras Aluminium Company Limited The Company issued Corporate Guarantee
amounting to Rs.600.000 millions towards working capital facility of the wholly
owned subsidiary.
c. The Company has
an Export obligation of Rs.7667.242 millions to be completed upto 2017-18.The
duty implication involved is Rs.958.405 millions.
d. At the request
of the Company the Bankers have established Letter of Credits in favour of the
suppliers of the Company as under:
Foreign Letter of
Credits - Rs.684.475 millions
e. The Company has
discounted sale bills amounting to Rs.92.251 millions with banks.
f. The Company has
obtained a stay order at High Court of Madras restraining TNEB from Collection
of tax under Tamilnadu Tax on Consumption and Sale of Electricity Act, in
respect of maximum demand charges. The estimated Contingent liability will be
Rs.7.409 millions.
g. Income Tax
pending appeals, aggregate Tax Disputed Rs.8.869 millions. Central Excise
pending appeals, aggregate Duty Disputed Rs.0.597 million. Service tax pending
appeals, Tax disputed Rs.2.751 millions.
h. Estimated
Amount of contracts on capital account remaining to be executed (net of
advances) aggregate to Rs.1220.308 millions.
FIXED ASSETS:
·
Land
·
·
Buildings
·
Plant and Machinery
·
Wind Mill
·
Electrical
·
Furniture and Fixtures
·
Computers and Accessories
·
Vehicles
WEBSITE DETAILS:
Origins
Subject Journey into textiles began in the year 1984, in 1989, the group
ventured into garment exports. Today KPR is a garment exporter as well as a
largest vertically integrated apparel company, engaged in manufacturing and
marketing readymade knitted garments, knitted fabrics and cotton yarn.
KPR Cotton Mills Private Limited, now known as KPR Mill Limited, was
originally incorporated on March 19, 2003.
In order to rationalize operations and better leverage capacities, KPR
Cotton Mills Private Limited purchased KPR Knits, a proprietorship concern as a
going concern with effect from April 1, 2005.
Subject and KPR Spinning Mill Private Limited were consolidated into KPR
Cotton Mills Private Limited through a merger process as approved by the High
Court of Madras on August 19, 2006, to take effect from April 1, 2005.
Consequent to the merger, the company’s name was changed from KPR Cotton Mills
Private Limited to KPR Mills Limited.
Subject is managed by well- qualified and experienced management team in
the apparel and textile industry with a collective experience of over 35 years
and has been instrumental for the sustained growth of the Company which is
illustrated by doubling of the capacity every two years since fiscal
2001. The management team is ably supported by an experienced and
technically qualified execution team and by professionally qualified and
experienced Directors on the Board.
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
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.96 |
|
|
1 |
Rs.73.94 |
|
Euro |
1 |
Rs.64.55 |
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 |
YES |
|
--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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.