MIRA
INFORM REPORT
|
Report Date : |
19.08.2011 |
IDENTIFICATION DETAILS
|
Name : |
BANSWARA SYNTEX LIMITED |
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Registered
Office : |
Industrial Area, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
05.05.1976 |
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Com. Reg. No.: |
17-1684 |
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Capital
Investment / Paid-up Capital : |
Rs.164.709
Millions |
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CIN No.: [Company Identification
No.] |
L24302RJ1976PLC001684 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHB01978E / JDHB04353G |
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PAN No.: [Permanent Account No.] |
AAACB8403F / AAACB8403F |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturing and marketing of synthetic Fiber and Yarn. |
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No. of Employees
: |
4000 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
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 6400000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal 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 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Industrial Area, |
|
Tel. No.: |
91-2962-242301 to 242306 / 240690 / 240691 / 240693 / 257676 / 681 |
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Fax No.: |
91-2962-240692 |
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E-Mail : |
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Factory 1 : |
98/3, Village Kadaiya, Nani Daman, |
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Factory 2 : |
Survey No. 713/1, 713/2, 713/3, 725/2 and 725/1, Village Dabhel, Nani
Daman, |
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Factory 3 : |
Plot No. 5-6, |
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Head / Marketing
Office: |
5th Floor, Gopal Bhawan, 199, |
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Branches : |
Located At:
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. R. L. Toshniwas |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
73 Years |
|
Qualification : |
M. Sc. |
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|
|
|
Name : |
Mr. Ravi Toshniwal |
|
Designation : |
Managing Director |
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Date of Birth/Age : |
43 Years |
|
Qualification : |
B. Tech |
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|
|
|
Name : |
Mr. Rakesh Mehra |
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Designation : |
Director |
|
Date of Birth/Age : |
50 Years |
|
Qualification : |
F.C.A. |
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|
|
|
Name : |
Mr. Shaleen Toshniwal |
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Designation : |
Director |
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Date of Birth/Age : |
30 Years |
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Qualification : |
MBA |
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|
Name : |
Mr. P. Kumar |
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Designation : |
Director |
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Name : |
Mr. D. P. Marg |
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Designation : |
Director |
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Name : |
Mr. S. B. Agarwal |
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Designation : |
Director |
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Name : |
Mr. Vijay Agarwal |
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Designation : |
Director |
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Name : |
Mr. Kamal Kishore Kacholia |
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Designation : |
Director |
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Name : |
Mr. A. N. Jariwala |
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Designation : |
Director |
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Name : |
Mr. Vijay Mehta |
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Designation : |
Director |
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Name : |
Mr. P.K. Bhandari |
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Designation : |
Director |
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Name : |
Dr. R. Swaminathan |
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Designation : |
Nominee Director |
KEY EXECUTIVES
|
Name : |
Mr. S. S. Sajal |
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Designation : |
President |
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Name : |
Mr. J. K. Rathi |
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Designation : |
President (Commercial) |
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Name : |
Mr. V. G. Maheshwari |
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Designation : |
President ( |
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Name : |
Mr. J. K. Jain |
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Designation : |
Sr. Vice President [Finance and Commerce] |
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Name : |
Mr. S. N. Gupta |
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Designation : |
Senior Vice President [Technical] |
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Name : |
Mr. S. N. Gupta |
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Designation : |
Sr. Vice President [Technical] |
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Name : |
Mr. S. S. Kella |
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Designation : |
Vice President [Audit and Taxation] |
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Name : |
Mr. S. R. Jain |
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Designation : |
Vice President [Engineering] |
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Name : |
Mr. Ashok Mishra |
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Designation : |
Vice President [Technical Worsted] |
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Name : |
Mr. Nailesh Joshi |
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Designation : |
Vice Presidend [Technical |
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Name : |
Mr. Prashant Joshi |
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Designation : |
Vice President [Processing] |
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Name : |
Mr. D.K. Menariya |
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Designation : |
Vice President [Personal] |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2011
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
6,908,816 |
46.82 |
|
|
989,969 |
6.71 |
|
|
7,898,785 |
53.53 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
7,898,785 |
53.53 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
4,925 |
0.03 |
|
|
570 |
- |
|
|
1,500,383 |
10.17 |
|
|
1,505,878 |
10.20 |
|
|
|
|
|
|
2,311,327 |
15.66 |
|
|
|
|
|
|
2,077,993 |
14.08 |
|
|
962,378 |
6.52 |
|
|
5,351,698 |
36.27 |
|
Total Public shareholding (B) |
6,857,576 |
46.47 |
|
Total (A)+(B) |
14,756,361 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufacturing and marketing of synthetic Fiber and Yarn. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Installed
Capacity |
|
Yarn Spinning (Ring Spindles) |
141412 |
|
Yarn Spinning (Air Jet Spindles) |
736 |
|
Fabric Weaving (Looms) |
268 |
|
Fabric Processing (Stenters) |
7 |
|
Garment (Pcs.) |
Not Assessed |
|
Particulars |
Actual
Production |
|
Yarn (Kgs.) |
28035415 |
|
Cloth (Mtrs.) |
34679290 |
|
Garments / Made Ups (No. of Pcs.) |
1991065 |
|
Waste (Kgs.) |
2252596 |
|
Power (Units) |
116809737 |
GENERAL INFORMATION
|
No. of Employees : |
4000 [Approximately] |
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Bankers : |
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Facilities : |
Note: Securities
Term
Loans from Financial Institutions and Banks are secured by a joint equitable
mortgage and/or hypothecation charges ranking pari-passu on immovable/movable
properties, present and future of the Company subject to prior charges in
favour of the Bankers on specified movable properties created and/or to be
created for working capital facilities. Term
Loans from Financial Institutions and Banks are guaranteed by Mr. R.L.
Toshniwal, Chairman and Managing Director and Mr. Ravi Toshniwal, Joint
Managing Director in their personal capacities except for term loans
outstanding of Rs.814.100 Millions (Previous year Rs.149.100 Millions) from
Export Import Bank of
Deferred
payment credits under Sales Tax Deferment Scheme for Industries 1987 are
secured by a joint equitable mortgage and/or hypothecation charges ranking
pari-passu on immovable/movable properties procured for expansion project as
prescribed under the said scheme Rs.5.910 Millions (Previous year Rs.5.911
Millions) are payable within one year.
Working
Capital Loans are secured by way of hypothecation (Floating charges) of Raw material,
Dyes-Chemicals, Packing Materials, Stores and
Spares, Stock-in-process, Finished goods, Book debts, Export
Incentives and second charge on all the Fixed Assets of the Company and also
guaranteed by Mr. R.L. Toshniwal, Chairman and Managing Director and Mr. Ravi Toshniwal,
Joint Managing Director in their personal capacities. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Kalani and Company Chartered Accountants |
|
Address : |
Bapu Nagar, Jaipur 302 004, |
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Joint Venture: |
Ř
Carreman Fabrics India Limited Ř
Banswara Fabrics Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
45000000 |
Equity Shares |
Rs.10/- each |
Rs.450.000 Millions |
|
500000 |
Redeemable Preferences Shares |
Rs.100/- each |
Rs.50.000 Millions |
|
|
Total |
|
Rs.500.000
Millions |
Issued & Subscribed Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14756361 |
Equity Shares |
Rs.10/- each |
Rs.147.564
Millions |
|
173000 |
3% Redeemable Preferences Shares |
Rs.100/-
each |
Rs.17.300
Millions |
|
|
|
|
Rs.164.864 Millions |
Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
14756361 |
Equity Shares of Rs.10/- each Rs.147.564 Millions |
|
|
|
|
Less Allotment money due form others
Rs.0.155 Million |
|
Rs.147.409
Millions |
|
173003 |
3% Redeemable Preferences Shares |
Rs.100/-
each |
Rs.17.300
Millions |
|
|
Total |
|
Rs.164.709 Millions |
Note:
- Of above 3,82,222 Equity Shares of Rs.10 each issued in terms of scheme of Amalgamation of erstwhile Banswara Textile Mills Limited and 43,44,638 Equity Shares were issued as fully paid up Bouns Shares by way of Capitalisation of Securities Premium Account.
- Company has issued 1650000 equity shares of Rs.10/- each at a premium of Rs.31/- per share against the warrants allotted on preferential basis at the meeting of board of directors held on 29th August, 2009. such preferential allotment was made to the persons other than promoters as per SEBI (DIP) Guidelines.
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 |
164.709 |
148.114 |
148.114 |
|
|
2] Share Application Money |
0.000 |
16.913 |
0.000 |
|
|
3] Reserves & Surplus |
1451.759 |
1013.084 |
762.237 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1616.468 |
1178.111 |
910.351 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5626.410 |
4242.436 |
3540.557 |
|
|
2] Unsecured Loans |
126.586 |
174.191 |
145.152 |
|
|
TOTAL BORROWING |
5752.996 |
4416.627 |
3685.709 |
|
|
DEFERRED TAX LIABILITIES |
301.619 |
272.261 |
219.293 |
|
|
|
|
|
|
|
|
TOTAL |
7671.083 |
5866.999 |
4815.353 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4521.648 |
3380.584 |
3244.615 |
|
|
Capital work-in-progress |
161.566 |
82.769 |
26.328 |
|
|
Advance on Capital Account |
76.467 |
162.196 |
38.013 |
|
|
|
|
|
|
|
|
INVESTMENT |
66.977 |
66.730 |
66.329 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2560.010
|
1766.817 |
1213.120 |
|
|
Sundry Debtors |
891.811
|
615.445 |
558.531 |
|
|
Cash & Bank Balances |
74.138
|
50.676 |
62.630 |
|
|
Other Current Assets |
331.785
|
257.577 |
222.372 |
|
|
Loans & Advances |
283.440
|
177.525 |
172.194 |
|
Total
Current Assets |
4141.184
|
2868.040 |
2228.847 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
148.136
|
29.377 |
31.044 |
|
|
Other Current Liabilities |
993.802
|
528.435 |
595.477 |
|
|
Provisions |
154.821
|
135.508 |
162.258 |
|
Total
Current Liabilities |
1296.759
|
693.320 |
788.779 |
|
|
Net Current Assets |
2844.425
|
2174.720 |
1440.068 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
7671.083 |
5866.999 |
4815.353 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
8084.539 |
6309.654 |
5489.358 |
|
|
|
Other Income |
47.095 |
29.939 |
37.167 |
|
|
|
TOTAL (A) |
8131.634 |
6339.593 |
5526.525 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material |
4100.288 |
3010.171 |
2629.195 |
|
|
|
Manufacturing Expenses |
1522.451 |
1315.471 |
1193.737 |
|
|
|
Payments to and Provision for Employees |
867.386 |
673.958 |
541.309 |
|
|
|
Administrative and Selling Expenses |
659.942 |
497.219 |
437.955 |
|
|
|
Excise duty on Finished Goods and Others |
0.751 |
1.318 |
(17.909) |
|
|
|
Extraordinary Items |
(14.490) |
(60.842) |
75.332 |
|
|
|
Accretion / Decretion to Stocks
|
(394.635) |
(168.576) |
(102.866) |
|
|
|
TOTAL (B) |
6741.693 |
5268.719 |
4756.753 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1389.941 |
1070.874 |
769.772 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
424.598 |
330.167 |
362.889 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
965.343 |
740.707 |
406.883 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
340.245 |
307.344 |
293.933 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
625.098 |
433.363 |
112.950 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
155.814 |
124.597 |
17.037 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
469.284 |
308.766 |
95.913 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
104.407 |
53.560 |
60.802 |
|
|
|
EXCESS
DIVIDEND AMOUNT WRITTEN BACK |
3.847 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend and Tax Thereon |
34.371 |
22.957 |
0.000 |
|
|
|
Proposed Dividend on Preference Shares |
0.519 |
0.519 |
0.519 |
|
|
|
Proposed Dividend on Equity Shares |
43.870 |
29.463 |
23.546 |
|
|
|
Tax on Proposed Dividend |
7.201 |
4.980 |
4.090 |
|
|
|
Transfer to General Reserve |
350.000 |
200.000 |
75.000 |
|
|
BALANCE CARRIED
TO THE B/S |
141.577 |
104.407 |
53.560 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4236.892 |
3434.689 |
3098.071 |
|
|
|
Other Earnings |
307.078 |
182.305 |
39.845 |
|
|
TOTAL EARNINGS |
4543.970 |
3616.994 |
3137.916 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
307.883 |
164.434 |
179.283 |
|
|
|
Dyes and Chemical |
11.286 |
16.008 |
16.752 |
|
|
|
Components and Spare Parts |
58.629 |
44.286 |
39.962 |
|
|
|
Capital Goods |
532.348 |
173.215 |
156.366 |
|
|
TOTAL IMPORTS |
910.146 |
397.943 |
392.363 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
31.79 |
20.92 |
7.29 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
2097.910 |
|
Total Expenditure |
|
|
1734.360 |
|
PBIDT (Excl OI) |
|
|
363.550 |
|
Other Income |
|
|
49.220 |
|
Operating Profit |
|
|
412.770 |
|
Interest |
|
|
175.970 |
|
PBDT |
|
|
236.800 |
|
Depreciation |
|
|
102.540 |
|
Profit Before Tax |
|
|
134.260 |
|
Tax |
|
|
42.500 |
|
Profit After Tax |
|
|
91.760 |
|
Net Profit |
|
|
91.760 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.77
|
4.87 |
1.74 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.73
|
6.87 |
2.05 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.22
|
6.94 |
2.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.37 |
0.12 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.36
|
4.34 |
4.92 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.19
|
4.14 |
2.83 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
During the year 2010-11, the Company’s performance in all the areas of
operations has improved significantly.
Production of synthetic yarn
increased to 274 Lac Kgs., up by 7%, and that of worsted yarn increased to 12.13 Lac Kgs., up by 92%. Similarly, the
production of suitings at 324 Lac Mtrs.
went up by 26%. The Company's garment production also increased by about
30% to
20.45 Lac pcs. The Company also
made its forays in the production of technical textiles.
During the year 2010-11, the Company's net income from operations at
Rs.8080.000 Millions recorded a growth
of 28% over Rs.6310.000 Millions
in 2009-10. The
Company's turnover of yarn increased by 18%, fabric by 37% and
garments by 36%
as compared to previous year.
This conforms to the Company's future
business plan for
a major thrust on value- added
fabric and garment
business.
The profit before depreciation and tax for the year 2010-11 at
Rs.965.300 Millions recorded an impressive growth of about 30%.
The profit before tax and net profit for the year at Rs.625.100
Millions and Rs.469.300 Millions were up by 44% and 52% respectively over the previous
years to
gives. During the current financial year, the Company has provided
for the liability of entry tax and
interest thereon pertaining to the financial
years from 2006-07 to 2010-11. The Company has paid Rs.130.000 Millions
as income tax besides providing Rs.29.400 Millions as deferred tax liability for the
year under report.
The basic and diluted earning per
share for the year 2010-11 works out
to Rs.32.05 and Rs.31.79
respectively. (Previous year Rs.23.56 and Rs.20.92).
EXPORTS
During the year 2010-11, the export turnover at Rs.4610.000 Millions, as
against Rs.3670.000 Millions
during 2009-10, recorded an increase of 26%. The
Company recorded export growth in yarn by 31% and fabric by 27%. The
Company has maintained 65% share of export sales in the total turnover.
During the year under report the Company's marketing as well as
design and development
teams collected the feed-back in the international market
by participation in the international trade fairs, meeting with the customers etc. The Company has added few more new customers
World wide. Its design studio
for fabric and garments helped the Company to penetrate in the new areas/customers domestically and
internationally.
POWER PLANT
The 2nd unit
of Captive Thermal Power Plant of 15
MW capacity started generation of power from 9th March, 2011. The 151 unit
of Captive Thermal Power Plant is also working satisfactorily. The total
power generation capacity of
the Company is now 33 MW.
During the year, the
Company purchased coal from South
Eastern Coalfields Ltd. (SECL) against the
Fuel Supply Agreement. The coal purchases from SECL have reduced
the cost
of power generation. The Company
has also applied for sanction of Govt, coal quota for the second unit of its
Power Plant.
FINANCE
During the year
2010-11, the Company availed
Term Loans aggregating Rs.946.700 Millions
from Banks and Financial Institutions.
The Company has applied for
additional term loan of
Rs.290.000 Millions to Exim Bank
to part finance company's
expansion cum modernization project of Rs.362.500 Millions .
The Company’s bankers has provided the need base increase working capital limit during the year.
MANAGEMENT
DISCUSSION AND ANALYSIS
INTRODUCTION
Management Discussion and Analysis mainly comprises the statements involve predictions based
on which termed as perceptions and, therefore, may be
prove to
risks and uncertainties. It is the sum total of
the Company's expectations, beliefs,
estimates and projections
which may be
forward looking within the meaning of applicable securities, laws and regulations. The actual
results could differ materially from
those expressed herein specifically or
impliedly. The important
factors that could
make a difference to the
Company's operations include availability and cost of raw material, cyclical demand and pricing in the Company's
principal markets, changes in
Government regulations, tax regimes,
economic developments within
INDUSTRY
STRUCTURE, ITS DEVELOPMENT AND
The Indian Textile
Industry was stagnant before
the introduction of Technology Upgradation Fund Scheme (TUFS)
by the Government of India in the year 2000. Substantial capacity expansion and
modernization took place with the
concessional rate of interest subsidized by Government of India under the
Scheme. The Government withhold
the sanction of loans under TUFS in June
2010, which nearly
stopped the creation of new
capacities. The Government has
since notified the restart of the TUFS w.e.f. 28*
April, 2011, which should
benefit enable the industry to
expand its capacity substantially. The
new TUFS has allotted the segment
wise funds for spinning, weaving, finishing, garments
and technical textiles. The modified TUFS
provide for allotment of segment
wise funds for spinning, weaving, finishing, garments and technical
textiles.
The textile industry
holds a very significant
position in the
Indian industry. It accounts for nearly 14% of the total industrial
output; and is the 2nd largest industry
providing employment. The lifting of
the import restrictions of the
multi fibre arrangement under WTO agreement on
textile and clothing has emerged as an opportunity for the industry.
Currently, the textile industry is undergoing substantial
reorientation towards other than clothing segment of the textiles which
is commonly known as technical textiles. It is moving vertically with an
average growing rate of nearly double than that of clothing. Now, it accounts
for more than half of the total textile output.
During the year 2010-11, the
cotton prices increased very substantially-almost by about 180% over the prices in the last
year. In the increasing cotton prices
the spinners have gained substantially due to stocks
with them. The polyester and
viscose prices have also increased mainly
in the last quarter
of the Financial Year. In the
domestic and international markets the price of finished goods also supplemented
the increase in the raw material
prices. As such, the
Indian Textile Industry
has seen increased profitability
during 2010-11.
The cotton, polyester and viscose prices have started falling during
2011 -12. As the reduction in the fibre prices is gradual
and continuous, the demand
in the market has slowed down. As such the
spinning mills are accumulating stocks and weaving mills are waiting for
stabilization there prices. It is not
unusual but a short term phenomena, In the long run, the lower
raw material prices would
ultimately help the textile
industry to perform better. Besides this, there are following
positive factors which auger well for the Indian Textile
Industry:-
1. The Ministry of Textiles has
notified the restart of the TUF Scheme
to provide interest and
capital subsidy for
expansion, modernization and diversification of the
textile industry. This scheme is available
till March, 2012.
2. There is a steep rise in the
labour cost in
3. The availability of dyed viscose in the country enables
the Indian Industry to offer
wider range of varieties of the products.
4. Indian textile industry is
known for better designs, colours
and new products besides the flexible product-mix providing
customers a exclusive range. Wide and
varied, almost exclusive, range of promotion.
5. As the garment industry in
UNAUDITED FINANCIAL RESULTS
FOR THE QUARTER ENDED 30TH JUNE, 2011
Rs. in Millions
|
Particular |
Quarter Ended |
|
|
30.06.2011 |
|
|
|
|
(a)
Net Sales / Income from operations |
2039.430 |
|
(b)
Other Operating Income |
58.475 |
|
Total
Income |
2097.905 |
|
Expenditure |
|
|
a)
(Increase) / Decrease in stock in trade and work in progress |
(253.997) |
|
b)
Consumption of raw materials |
1215.486 |
|
c)
Purchase of traded goods |
0.000 |
|
d)
Employees cost |
250.115 |
|
e)
Power and fuel |
213.836 |
|
f)
Depreciation |
102.542 |
|
g)
Other expenditure |
308.905 |
|
Total |
1836.887 |
|
Profit
from operations before other income, interest and exceptional Items |
261.018 |
|
Other
income |
49.217 |
|
Profit
before interest and exceptional Items |
310.235 |
|
Interest |
175.972 |
|
Profit after Interest but
before Exceptional Items |
134.262 |
|
Exceptional
Items |
0.000 |
|
Profit (+)/Loss(-) from
Ordinary Activities before tax |
236.804 |
|
Tax
expense |
134.262 |
|
Current
tax |
27.942 |
|
Deferred
tax |
19.912 |
|
MAT
credit entitlement |
(5.352) |
|
Net Profit (+)/Loss(-) from
Ordinary Activities after tax |
91.760 |
|
Extraordinary Items |
-- |
|
Net
Profit (+) / Loss (-) for the year period |
91-760 |
|
Paid up
equity share capital (Face value of Rs.10/- per share) |
147.409 |
|
Reserves
excluding revaluation reserves as per balance sheet of previous accounting
year |
-- |
|
Earning
per share (EPS) |
|
|
(a) Basic and diluted
EPS before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
6.21 |
|
(a) Basic and diluted EPS
before Extraordinary items for the period, for the year
to date and for the previous year (not to be
annualised) |
6.21 |
|
Public
shareholding |
|
|
Number of shares |
6857576 |
|
Percentage of shareholding |
46.47 |
|
Promoters
and Promoters group Shareholding- |
|
|
a)
Pledged /Encumbered |
|
|
Number
of shares |
-- |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
-- |
|
Percentage
of shares (as a % of total share capital of the company) |
-- |
|
b)
Non Encumbered |
|
|
Number
of shares |
7898785 |
|
Percentage
of shares (as a % of total shareholding of the promoter and promoter group) |
100.00 |
|
Percentage
of shares (as a % of total share capital of the company) |
53.53 |
Note:
- The above results were reviewed by the audit committee and approved
by the board of directors at their meeting held on July 28, 2011. The
statutory auditors have carried out a limited review of the results.
- The company is engaged in production of textile products having
integrated working and power generation. For management purposes, company
is organized into major operating activity of the textile products besides
power generation which has revenue less than 10%. The company has no
activity outside
- The net sales / income from operations is exclusive of inter
division transfers and effects of foreign exchange rates.
- Credit in respect of minimum alternative tax under income tax act,
1961 (MAT Credit-Entitlement), wherever applicable, is recognized in
accordance with guidance note issued by the council of the institute of
chartered accountants of
- The number of investors complaints pending at the beginning of the
quarter is Ni, received and disposed off during the quarter is 6 and ling
unresolved at the end of the quarter is nil.
- Figures for the previous quarter / year have been regrouped and
rearranged, wherever necessary.
AS PER WEBSITE DETAILS:
PROFILE:
Subject is a vertically
integrated textile mill manufacturing man-made
synthetic blended Yarn, wool and
wool mixed yarn, all type of Fabrics,
Jacquard Furnishing Fabrics,
besides production of Readymade
Garments and Made-up's.
Subject was incorporated in the year 1976. While incorporation it was a
joint sector company with RIICO Ltd. (A Govt. of Rajasthan Undertaking) and Mr.
R. L. Toshniwal. In 1982 Mr. Toshniwal purchased the shares from
RIICO. Presently it is a Public Limited Company, the promoters holding is
59.44% of Equity Share Capital.
Initially it was a spinning mill with 12500 spindles. As the journey
continued the Company completed expansion, diversification and modernization
plans. Over the last 3 decades, Company besides increasing the Spinning
capacity to 144380 spindles started production of Fabric from 1993, Readymade
Garments from 2004, Made-up's and Worsted Spinning from 2008. The
Company also entered into Joint Venture with French Company Carreman in 2006.
The present installed capacity is 144380 Ring Spindles including 14400
Spindles for Worsted Yarn Spinning, 736 Air Jet Spindles, 222 Shuttles-less
Looms, 20-Air Jet Jacquard Looms, 7 Stenters with processing capacity of
4 million meters per month, besides ready-made garment production capacity for
trousers 2.25 lac pieces and 10000 pieces Jackets per month at Daman and Surat.
The Company also has a large dye house with latest technology machines
for dyeing of fiber, yarn and wool 40
Tons/day. It also started the production of laminated and other type of technical fabrics for high
altitude weather and also suitable for
sports wear etc. The company has also started production of wool and wool mixed fabrics in the brand name of
"UNITY CARLO" for domestic supply. It is also supplying all wool
and P/W fabrics world's most reputed
brands all around the globe. The second unit of 18 MW captive thermal power
plant is also likely to start w. e. f. Feb. 2011.
The company has a track record of expanding, modernizing and
diversifying its activities from time to time keeping in view the increasing
demands, quality expectation of the customers, changing market requirements
etc.
The company embarked on cloth weaving activity in the year 1993 by
setting up a state-of-art weaving plant to manufacture quality fabrics in the
brand name of BANTEX mainly for domestic market. The company manufacturing fabrics with
Lycra purchased from international brand, Dupont. Banswara Syntex
Limited exports its products to more than 50 countries including US,
BSL again diversified its activities into Cotton spinning and Readymade
Garment manufacturing in the year 2004. For Readymade Garments, a separate unit
was set up at Daman (U.T.) to manufacture trousers in the brand name of INTEGRATION. Second Garmenting Unit was set up in SEZ at
In the year 2005, Banswara Textile Mills Ltd., an associate firm engaged
in fabric finishing activity, amalgamated with the company. The Company is also
introducing technical fabric and has setup coating unit for the same.
The company is a Government recognized Two Star Export House having
IS/ISO 9001:2000 certification by the Bureau of Indian Standards.
Subject, backed by a fashion-savvy team with a motto of producing wide
range of textile products with utmost quality consciousness, is exporting its
products and has won several awards for its best export performance. It has
continuously won highest Export Award from SRTEPC for last 8 years in a
row.
Management Team:
The company is managed by a Board comprising twelve directors having
vast experience and expertise in different fields as under:-
Mr. R.L.Toshniwal, aged 77 years, is the Chairman and Managing Director of the Company. He holds
Masters Degree in Textiles from
Mr. Ravi Toshniwal, aged 46 years, is the Jt. Managing Director of
the Company. He is B.Tech (Chem.) from IIT, Mumbai. He has undergone OPM course
of
Mr. Rakesh Mehra, aged 52 years, is the Whole-Time Director of the Company.
He is a Chartered Accountant, having 21 years experience in the textile
industry. He is the former Chairman of The Synthetic and Rayon Textile Export Promotion Council
(SRTEPC). Before joining the company he was Chief Executive of RR
Toshniwal Enterprises. Mr. Mehra looks after entire commercial and financial
activities besides export sales of yarn.
Mr. Shaleen Toshniwal, aged 32 years, is the Whole-time Director of the
company. He holds Bachelors degree in Business Management from
Mr. Kamal Kishore Kacholia, aged 58 years, is a renowned
industrialist. He holds a degree in Chemical Engineering and Masters in
Business Administration from
Mr. Parduman Kumar, aged 72 years, is a Chartered Accountant. He is
on the Board of the company for the last 9 years. He is a senior banking professional
and retired as Chief General Manager of IDBI. He looked after various
project appraisal, financing, monitoring and recoveries during his tenure with
IDBI. He has also worked with Reserve Bank of
Mr. Vijay Mehta, aged 56 years, is a renowned Stock broker and
financial consultant. As an astute orator, he has been invited at various
forums all over the world to present papers on economic reforms and changes in
financial services industry. He was a part of an Indian delegation invited by the
Chinese Government in May, 2005 to explore trade opportunities with
Mr. Vijay Kumar Agarwal, aged 59 years, industrialist, is on the
Board of the Company for the last 5 years. He is the founder promoter and chairman of the creative group. He started
manufacturing and export of readymade garment in 1974. He is an Engineer from
VJTI. He has vast experience in all aspects of manufacturing and export of
textile product. He has traveled widely all over the world for business
promotion. His group has entered the Indian market through its home linen
product under the brand name ‘PORTICO’ which has become a leading player in the
industry.
Mr. A. N. Jariwala, aged 78 years, industrialist. He
holds Master Degree in Textile from
Mr. D. P. Garg, Aged about 61 years, industrialist, is on the Board
of the Company for the last 6 years. He is a graduate in Mech. Engineering from
Mr. S. B. Agarwal, aged 71 years, Consultant, is on the Board
of the Company for the last 5 years having over all 44 years of professional
experience. He is M Com, M A (Eco.) LLB, FCA has been a pioneer in the
textile industry. As the Group Executive President (Textile) of Grasim
Industries Ltd. and Advisor to Indian Rayon Ltd., he was also responsible for
the various textile units in
Dr. Mr. R. Swaminathan, Aged about 70 years, appointed as Nominee
Director of EXIM Bank w.e.f. 19.06.2008., He is retired IAS. He did Master of
Arts-Mathematical Statistics from Madras University-1959, Edward S Mason Fellow
in Economic Development Kennedy School of Government, Harverd
university–1976-77, Master in Public Administration, Harvard University
USA-1977 and Doctorate in
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.45.61 |
|
|
1 |
Rs.75.32 |
|
Euro |
1 |
Rs.65.68 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.