MIRA INFORM REPORT

 

 

Report Date :

26.08.2011

 

IDENTIFICATION DETAILS

 

Name :

JAI CORP LIMITED

 

 

Registered Office :

A-3, MIDC Industrial Area, Nanded – 431 603, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

06.06.1985

 

 

Com. Reg. No.:

11-36500

 

 

Capital Investment / Paid-up Capital :

Rs.193.471 millions

 

 

CIN No.:

[Company Identification No.]

L17120MH1985PLC036500

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

NSKJ01283C

 

 

Legal Form :

Public limited liability company. The company’s shares are listed on the stock exchanges.

 

 

Line of Business :

Manufacturer, Exporter and Importer of Cold Rolled Steel Coils, Sheets, Sacks, Bags, Woven Sacks, Tubes, etc.

 

 

No. of Employees :

3500 Approximately

 

RATING & COMMENTS

 

MIRA’s Rating :

A (64)

 

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 110000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having fine track records. 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.

 

INFORMATION PARTED BY

 

Name :

Mr. R K Bhutoria

Designation :

Finance Controller

Contact No.:

91-22-61155300

Date :

24.08.2011

 

 

LOCATIONS

 

Registered Office :

A-3, MIDC Industrial Area, Nanded – 431 603, Maharashtra, India

Tel. No.:

91-22-61155300 / 22817051

Fax No.:

91-22-22875197

E-Mail :

rk.bhutoria@jaicorpindia.com

Website :

http://www.jaicorpindia.com/

Location :

Owned

 

 

Corporate Office :

12-B, Mittal Towers, Nariman Point, Mumbai – 400 021, Maharashtra, India

 

 

Manufacturing Facilities :

·         Plastic Processing Division

o        140/1/1/1 to 140/1/1/9, Village Khadoli, Silvassa (D and N.H) (100% EOU unit)

 

o        168/182-191, Dabhel Industrial Co-Operative Society Limited, Dabhel, Daman (Daman and Diu)

o        Survey No. 148, 149/1 and 2, 180/2 and 3, Dabhel Industrial Co-Operative Society Limited, Dabhel, Daman (Daman and Diu)

 

o        Plot No. F-1 and F-2, Indore SEZ Phase-1, Sector – III, Pithampur (MP) (SEZ Unit) 

 

·         Plastic Processing and Master Batch

Survey No. 141, Dabhel Industrial Co-Operative Society Limited, Dabhel, Daman (Daman and Diu)

 

·         Plastic Processing and PSF

Survey No. 326/1, 326/2/1, Village Athal, Silvassa (D and N.H)     

 

·         Steel Division

A-3, MIDC Industrial Area, Nanded, Maharashtra, India

 

·         Textile Division – Twisting

Survey No. 45-B, Govt. Industrial Estate, Masat, Silvassa (D and N.H)     

 

·         Textile Division – Dyeing

Plot No. 1620, GIDC Sarigam, District Valsad, Gujarat, India

 

·         Textile Division – Spinning

Survey No. 246, Khanvel Road, Vasona, Silvassa (D and N.H)     

 

 

DIRECTORS

 

As on 31.03.2010

 

Name :

Mr. Jai Kumar Jain 

Designation :

Chairman Emeritus

 

 

Name :

Mr. Anand Jain

Designation :

Chairman

 

 

Name :

Mr. Virendra Jain

Designation :

Vice Chairman

 

 

Name :

Mr. Gaurav Jain

Designation :

Managing Director

 

 

Name :

Mr. V S Pandit

Designation :

Director – Works 

 

 

Name :

Mr. S N Chaturvedi

Designation :

Director

 

 

Name :

Mr. D K Contractor

Designation :

Director

 

 

Name :

Mr. K M Doongaji

Designation :

Director

 

 

Name :

Mr. S H Junnarkar

Designation :

Director

 

 

Name :

Mr. P P Shah

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Ashok Tak

Designation :

Vice President – Commercial and Chief Financial Officer 

 

 

Name :

Mr. Ananjan Datta

Designation :

Company Secretary and Compliance Officer

 

 

Board Committee / Audit Committee :

·         Mr. K M Doongaji – Chairman

·         Mr. Virendra Jain

·         Mr. S N Chaturvedi

·         Mr. D K Contractor

 

 

Shareholders/Investors Grievance Committee :

·         Mr. K M Doongaji – Chairman

·         Mr. Virendra Jain

·         Mr. S N Chaturvedi

·         Mr. Gaurav Jain

 

 

Share Transfer Committee :

·         Mr. Jai Kumar Jain (Chairman)

·         Mr. Virendra Jain

·         Mr. Gaurav Jain

 

 

Name :

Mr. R K Bhutoria

Designation :

Finance Controller

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2011

 

Category of Shareholders

No. of Shares

% of total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

128682400

72.09

Bodies Corporate

1600000

0.90

Sub Total

130282400

72.99

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

130282400

72.99

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

283980

0.16

Financial Institutions / Banks

3640188

2.04

Foreign Institutional Investors

18809936

10.54

Sub Total

22734104

12.74

(2) Non-Institutions

 

 

Bodies Corporate

5782610

3.24

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 million

14323511

8.02

Individual shareholders holding nominal share capital in excess of Rs.0.100 million

577495

0.32

Any Others (Specify)

4793890

2.69

Non Resident Indians

491916

0.28

Trusts

50900

0.03

Clearing Members

243834

0.14

Foreign Corporate Bodies

4007240

2.25

Sub Total

25477506

14.27

Total Public shareholding (B)

48211610

27.01

Total (A)+(B)

178494010

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

-

-

(1) Promoter and Promoter Group

-

-

(2) Public

-

-

Sub Total

-

-

Total (A)+(B)+(C)

178494010

-

 

Shareholding belonging to the category "Promoter and Promoter Group"

 

Sl. No.

Name of the Shareholder

Total Shares held

 

 

Number

As a % of
grand total
(A)+(B)+(C)

1

 Satyapal Jaikumar Jain

24807340

 13.90 

2

 Harsh Jain

23151560

 12.97 

3

 Rina Jain

17719220

 9.93 

4

 Sushma Jain

16130740

 9.04 

5

 Ankit Jain

15054560

 8.43 

6

 Gaurav Jain

10427200

 5.84 

7

 Virendra Jain

9871620

 5.53 

8

 Laxmi Jain

8003540

 4.48 

9

 Anand Jain

3511840

 1.97 

10

 Jai Kumar Jain

4780

 0.00 

11

 Hide N Chic Furniture Private Limited

200000

 0.11 

12

 Kasturi Trading Company Private Limited

200000

 0.11 

13

 Pet Fibres Limited

200000

 0.11 

14

 Nidhi Polyster Limited

200000

 0.11 

15

 Richmond Traders Private Limited

200000

 0.11 

16

 Ridhi Synthetics Limited

200000

 0.11 

17

 Somerset Trading Private Limited

200000

 0.11 

18

 Sparsh Trading Private Limited

200000

 0.11 

 

 Total

130282400

 72.99 

 

 

Shareholding belonging to the category "Public" and holding more than 1% of the Total No. of Shares

 

Sl. No.

Name of the Shareholder

No. of Shares

Shares as % of Total No. of Shares

1

Deutsche Securities Mauritius Limited

6107919 

3.42 

2

Valiant Mauritius Partners Limited

4559518 

2.55 

3

Life Insurance Corporation of India

2677522 

1.50 

4

Valiant Mauritius Partners Offshore Limited

2996555 

1.68 

 

 Total

16341514 

9.16 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Cold Rolled Steel Coils, Sheets, Sacks, Bags, Woven Sacks, Tubes, etc.

 

 

Products :

Product Description

ITC Code

Cold Rolled Steel Coil/Sheet

7209

Galvanished Plain / Corrugated Coil/Sheet

7210

Woven Sacks and Bags

3923

Synthetic Yam

5509

 

 

Exports :

 

Products :

Sacks, Tubes, Bags etc.

Countries :

·         USA

·         Middle East

·         UK

 

 

Imports :

 

Products :

Spare Parts

Countries :

Malaysia

 

 

Terms :

 

Selling :

L/C, Cash and Credit

 

 

Purchasing :

L/C, Cash and Credit

 

PRODUCTION STATUS AS ON 31.03.2010

 

Particulars

Unit

Licensed Capacity

Installed Capacity

C R Oils

MT

NA

62500

GP/GC Coils / Sheets

MT

NA

55000

Woven Sacks / Fabrics

MT

NA

56278

Spinning Yarn

MT

NA

16010

Master Batch

MT

NA

12000

Staple Fibers

MT

NA

3200

Synthetic Fibres Twin

MT

NA

1460

 

Note : Licensed Capacity is not applicable in view of the Company’s products have been delicensed.

 

Particulars

Unit

Actual Production

C R Oils / Sheets * # 

MT

35438

GP/GC Coils / Sheets #

MT

36733

Woven Sacks / Fabrics * #

MT

31394

Tape and Liner *

MT

169

Spinning Yarn *

MT

8600

Master Batch * #

MT

5125

Staple Fibers *

MT

1102

Ink and Reducer *

MT

26

Synthetic Fibres Twin

MT

289

 

* Including 8770 MT in CR Coils captive consumption, includes 1329 MT in Master Batch, includes 52 MT in Tape and Liner, includes 1400 MT in Woven Sacks / Fabrics, includes 1 MT in Staple Fibres, includes 22 MT in Ink and Reducer and includes 3943 MT in spinning yarn as captive consumption.

 

# Including the goods manufactured as job processor CR Coils 26642 MT GP/GC Coils 27059 MT, Woven Sacks / Fabric Nil, Master Batch Nil.


 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         Retailers

·         End Users

 

 

No. of Employees :

3500 Approximately

 

 

Bankers :

·         Canara Bank, Nanded, Maharashtra, India

·         Axis Bank

·         Bank of Baroda

·         Development Credit Bank Limited

·         HDFC Bank Limited

·         South Indian Bank Limited

·         Union Bank of India

 

 

Facilities :

Secured Loans

As on 31.03.2010

Rs. in millions

As on 31.03.2009

Rs. in millions

Term Loans from a Bank

229.300

322.900

Working Capital Loan from a Bank

1.779

31.035

Total

231.079

353.935

 

Notes:

 

1. The Term Loans referred to above:-

 

(a) loans aggregating to Rs.161.800 millions are secured byway of first charge on fixed assets of the Company.

 

(b) loans aggregating to Rs.67.500 millions are secured by way of first parri passu charge on the entire immovable and movable assets and second parri passu charge on all current assets of the Company.

 

(c) the above are further secured by way of negative lien in quoted portfolio investments to the tune of Rs.500.000 millions of the Company.

 

2. The Working Capital Loan referred to above:-

 

(a) is secured by hypothecation on whole of current assets including a first charge on stock and book debts.

 

(b) is further secured by personal guarantees of one present Director and one erstwhile Director of the Company.

 

Unsecured Loans

As on 31.03.2010

Rs. in millions

As on 31.03.2009

Rs. in millions

Interest Free Sales-tax Loan

99.248

72.110

Total

99.248

72.110

 

 

Banking Relations :

--

 

 

Auditors :

 

Name 1 :

Chaturvedi and Shah

Chartered Accountant

 

 

Name 2 :

S R Batliboi and Company

Chartered Accountant

 

 

Associates :

·         Tough Roof

·         Tex Feb

·         Searock Developers FZC

·         Urban Communication Infrastructure Private Limited

·         Urban Energy Distribution Private Limited

·         Urban Energy Generation Private Limited

·         Urban Energy Transmission Private Limited

·         Urban lnfotech Solution Private Limited

·         Urban Infrastructure Construction Private Limited

·         Urban Infrtructure Holdings Private Limited

·         Urban Water Supply Private Limited

 

 

Subsidiaries :

·         Ashoka Realty and Developers Limited

·         Awas Realtors Limited

·         Belle Terre Realty Limited

·         Dev Realty and Developers Limited

·         Ekdant Realty and Developers Limited

·         Han Darshan Realty Limited

·         Hill Rock Construction Limited

·         Hind Agri Properties Limited

·         lconic Realtors Limited

·         Jai Corp Finance and Holding Limited

·         Jai lnfraprojects Limited

·         Jal Laxmi Realty and Developers Limited

·         Jai Realty Ventures Limited

·         Krupa Land Limited

·         Krupa Realtors Limited

·         Multifaced Impex Limited

·         Novelty Realty and Developers Limited

·         Oasis Holding FZC

·         Rainbow Infraprojects Limited

·         Rejoice Land Developers Limited

·         Rudradev Developers Limited

·         Sarbags Pty Limited

·         Samart Realty and Developers Limited

·         Swar Land Developers Limited

·         Swastik Land Developers Limited

·         UI Wealth Advisors Limited

·         Urban Gas Distribution Limited

·         Urban Gas Limited

·         Urban Gas Suppliers Limited

·         Urban Infrastructure Trustees Limited

·         Urban Infrastructure Venture Capital Limited

·         Vasant Bahar Realty Limited

·         Welidone Real Estate Limited

·         Yug Developers Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

450000000

Equity Shares

Rs.1/- each

Rs.450.000 millions

15000000

1% Non-Cumulative, Non-Participating Redeemable Preference Shares

Rs.1/- each

Rs.15.000 millions

35000000

Unclassified Shares

Rs.1/- each

Rs.35.000 millions

 

Total

 

Rs.500.000 millions

 

Issued, Subscribed Capital :

No. of Shares

Type

Value

Amount

178494010

Equity Shares

Rs.1/- each

Rs.178.494 millions

15000000

1% Non-Cumulative, Non-Participating Redeemable Preference Shares

Rs.1/- each

Rs.15.000 millions

 

Total

 

Rs.193.494 millions

 

Paid-up Capital :

No. of Shares

Type

Value

Amount

178449410

Equity Shares

Rs.1/- each

Rs.178.449 millions

15000000

1% Non-Cumulative, Non-Participating Redeemable Preference Shares

Rs.1/- each

Rs.15.000 millions

 

Add : Forfeited Shares (Amount Originally Paid up on 4460 Shares

Rs.10 each

Rs.0.022 million

 

Total

 

Rs.193.471 millions

 

Notes:

1. Of the above Equity Shares:

 

(a) 49,63,522 Equity Shares of Rs.10 each were allotted, without payment being received in cash, pursuant to the Scheme of Amalgamation of Sipta Coated Steels Limited and Comet Steels Limited with the Company before subdivision and issue of bonus shares.

 

(b) Bonus Shares:

 

i) 24,00,000 Equity Shares of Rs.10 each were allotted as fully paid-up bonus shares by capitalisation of free reserves before subdivision.

ii) 8,62,69,400 Equity Shares of Re.1 each were allotted as fully paid-up bonus shares by way of capitalisation of Securities Premium Account.

2. Equity Shares having face value Rs.10 each (fully paid-up) were subdivided into Re.1 each (fully paid-up) in the financial year 2007-08.

3. (a) 1% Non-cumulative, Non-Participating Redeemable Preference Shares of Re.1 each fully paid-up were due for redemption on 25 November 2009. As consented by the Preference Shareholders and subsequently by the Members of the Company at their 24 Annual General Meeting held on 23d September, 2009, the tenure of these Shares has been extended by a period not exceeding two years from the date of roll over (i.e. two years from 25th November, 2009), accordingly these Shares are redeemable at a premium of 6 % p.a. on issue price of Rs.1,000 per share on the expiry of two years from the date of roll over with an option to the Company / the Preference Shareholder(s) to redeem the same after one year from the said date of roll over.

 

(b) Redemption premium on Preference Shares as mentioned above will be paid out of the Securities Premium Account, hence, no provision has been considered necessary.

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

193.471

193.471

193.471

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

26248.228

25666.132

25412.132

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

26441.699

25859.603

25605.603

LOAN FUNDS

 

 

 

1] Secured Loans

231.079

353.935

349.000

2] Unsecured Loans

99.248

72.110

465.464

TOTAL BORROWING

330.327

426.045

814.464

DEFERRED TAX LIABILITIES

186.774

163.263

136.612

 

 

 

 

TOTAL

26958.800

26448.911

26556.679

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2196.436

2002.738

2124.027

Capital work-in-progress

82.490

323.077

202.516

 

 

 

 

INVESTMENT

18895.959

17226.348

18439.047

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
478.007

413.456

442.629

 

Sundry Debtors
632.899

903.721

755.716

 

Cash & Bank Balances
53.672

617.390

50.415

 

Other Current Assets
47.102

7.097

0.158

 

Loans & Advances
4955.255

5207.665

4965.849

Total Current Assets
6166.935

7149.329

6214.767

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

61.706

87.699

136.361

 

Other Current Liabilities
150.189

88.417

89.522

 

Provisions
171.125

76.465

197.795

Total Current Liabilities
383.020

252.581

423.678

Net Current Assets
5783.915

6896.748

5791.089

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

26958.800

26448.911

26556.679

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Net Turnover

4096.148

3754.154

3085.304

 

 

Other Income

488.263

537.146

1294.804

 

 

TOTAL                                     (A)

4584.411

4291.300

4380.108

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Trade Purchases

1.948

656.991

870.412

 

 

Manufacturing and Other Expenses

3589.823

3005.189

2005.477

 

 

Variation in Stocks 

12.819

11.787

(39.151)

 

 

TOTAL                                     (B)

3604.590

3673.967

2836.738

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

979.821

617.333

1543.370

 

 

 

 

 

Less

INTEREST AND FINANCE CHARGES                 (D)

25.387

46.441

58.975

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

954.434

570.892

1484.395

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

162.795

153.251

148.362

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

791.639

417.641

1336.033

 

 

 

 

 

Less

TAX                                                                  (H)

180.945

135.143

54.498

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

610.694

282.498

1281.535

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

2605.471

2379.721

1284.174

 

 

 

 

 

Add

PRIOR PERIOD ADJUSTMENTS (NET)

(0.384)

(0.146)

(0.380)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

General Reserve

61.032

28.250

128.200

 

 

Proposed Dividend on Preference Shares

0.150

0.150

0.052

 

 

Proposed Dividend on Equity Shares

24.084

24.084

49.017

 

 

Tax on Proposed Dividend

4.025

4.118

8.339

 

 

Excess Provision of Dividend of earlier year

(0.045)

0.000

0.000

 

BALANCE CARRIED TO THE B/S

3126.535

2605.471

2379.721

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB value of Exports

323.184

468.764

542.365

 

TOTAL EARNINGS

323.184

468.764

542.365

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

23.690

0.000

107.928

 

 

Stores & Spares

2.309

2.963

1.237

 

 

Capital Goods

43.694

65.643

6.594

 

 

Trading Goods

0.000

337.369

332.727

 

TOTAL IMPORTS

69.693

405.975

448.486

 

 

 

 

 

 

Earnings Per Share (Rs.)

3.42

1.58

7.34

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover (Approximately)

 

 

5300.000

 

The above information has been parted by Mr. R K Bhutoria

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

30.06.2011

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

5th Quarter

Net Sales

1110.500

1101.000

1136.400

1510.300

1360.700

Total Expenditure

942.500

952.900

977.800

1364.300

1165.200

PBIDT (Excl OI)

168.000

148.100

158.600

146.000

195.500

Other Income

194.200

215.900

191.300

131.800

218.300

Operating Profit

362.200

364.000

349.900

277.800

413.800

Interest

6.200

3.900

4.300

3.600

2.800

Exceptional Items

0.000

0.000

0.000

0.000

0.000

PBDT

356.000

360.100

345.600

274.200

411.000

Depreciation

43.000

41.700

41.800

42.500

43.100

Profit Before Tax

313.000

318.400

303.800

231.700

367.900

Tax

46.100

65.000

63.900

70.500

101.300

Provisions and contingencies

0.000

0.000

0.000

0.000

0.000

Profit After Tax

266.900

253.400

239.900

161.200

266.60

Extraordinary Items

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

0.000

Net Profit

266.900

253.400

239.900

161.200

266.600

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
13.32

6.58

29.26

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
19.33

11.12

43.30

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
9.47

4.56
16.02

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.03

0.02
0.05

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
0.03

0.03
0.05

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
16.10

28.31
14.67

 

 

LOCAL AGENCY FURTHER INFORMATION

 

DETAILS OF SUNDRY CREDITORS

 

Particulars

As on 31.03.2010

Rs. in millions

As on 31.03.2009

Rs. in millions

As on 31.03.2008

Rs. in millions

Micro and Small Enterprises

1.552

1.030

2.575

Others

60.154

86.669

133.786

Total

61.706

87.699

136.361

 

TRADE REFERENCES

 

·         Reliance Industries

 

RESULTS OF OPERATIONS:
 
During the year, the turnover of the Company's Steel Division decreased to Rs.572.200 millions as compared to last year's turnover of Rs.766.500 millions. The decrease is due to decrease in trade sale, however, the Company's income from manufactured products and job works have  gone  up.
 
The Plastic Processing Division of the Company achieved a turnover of Rs.3070.800 millioins as compared to last year's turnover of Rs.2632.800 millions. 
 
The Spinning Division of the Company achieved a turnover of Rs.671.000 millions as compared to last year's turnover of Rs.551.300 millions.
 
During  the  year, the Company increased  its  capacities  for Spinning  Yarn,  Masterbatch and Synthetic Fibres Twin from  11,100  MT  to  16,010  MT,  from  6,720  MT  to  12,000  MT  and  from  nil  to  1,460  MT  respectively.  The Company's production of CR coils and sheets  and  GP/GC coils and sheets increased from 2,414 MT to 35,438 MT and from 3,255 MT  to 36,733 MT respectively.
 
OUTLOOK
 
The Company has invested in entities engaged in the businesses of  creation  of  essential integrated urban infrastructure. These businesses  relate  to  SEZs,  ports,  real  estates and other ancillary services  related  to  the  creation of urban infrastructure, which are expected to contribute to India  emerging  as  a  powerful economic force in the  world. The Company also intends to focus on its asset management business in order to deploy global capital in the development of the real estate sector in India. In addition, the Company is also taking steps to improve the performance and efficiency of its existing manufacturing businesses. As a result of these  factors, the Directors  believe that the Company will continue its endeavor for creation of long-term and substantial value, both for the nation  and  the stakeholders.

 

MANAGEMENT'S DISCUSSION AND ANALYSIS
 
OVERVIEW OF FY 2009-10
 
The Financial Year (FY) 2009-10 was clearly one of the toughest and challenging  years for businesses globally. This was a year of contrasts. The first half of the year saw firm prices and demand. However, following the credit  crisis and the slowdown in global economies, demand  was  seen  dropping sharply and margins coming under severe pressure during the second half. The tone  of the economy reflected on the bourses  as  well.  Stock markets  are  considered  barometers  of the activity  and  health  of  the economy. The first quarter of FY 2009-10, saw  buoyancy  in  the stock markets, however, the remainder of the fiscal year was by and large  tepid. The growth rate of the Gross Domestic Product (GDP) in FY 2008-09 was 6.7%, with growth in the last two quarters hovering around 6%. The Indian economy besides weathering  the global crisis had to face a weak monsoon  also  in 2009. Some amount of turnaround was seen in the second quarter of FY 2009-10 when the economy  registered a growth of  7.9%  As  per  the  advance estimates  of  GDP  for FY 2009-10, released  by  the  Central  Statistical Organisation (CSO), the economy is expected to grow at 7.2% in FY  2009-10, with  the  industrial  and the service sectors growing  at  8.2%  and  8.7% respectively. Subject saw through this challenging period and has reported robust financial performance. 
 
Key financial performance indicators FY 2009-10 are as follows:
 
·                            The gross turnover increased by 9% to Rs.4309.900 millions in FY 2009-10 from Rs.3950.600 millions in FY 2008-09.
 
·                            The total EBIDTA, increased by 59% to Rs.979.800 millions in FY 2009-10 from Rs.617.300 millions in FY 2008-09.
 
·                            The total PAT increased by 116% to Rs.610.700 millions in FY 2009-10 from Rs.282.500 millions in FY 2008-09.
 
BUSINESS REVIEW
 
URBAN INTEGRATED INFRASTRUCTURE
 
Sector Overview
 
According  to  United  Nations  (UN)  projections,  half  of  the   world's population  now live in urban areas and about 70% will be city dwellers  by the  year  2050. With cities and towns in Asia and Africa registering the biggest  growth,  this hyper-urbanisation trend and  the  concentration of urban population in the big cities in developing countries bring not  only the problem of resource limitations to the fore, but also adds new problems as well.  In order to cope with massive problems that have emerged as a result of rapid urban growth the Jawaharlal Nehru National  Urban  Renewal Mission  (JNNURM) was launched by the government on December 3, 2005 for  a seven-year  period beginning 2005-06. The selected cities are one million plus cities, state capitals and places of historical, religious, or tourist importance. The private sector, including farming, micro, small and medium enterprises (MSMEs), and the corporate sector, has a critical role to play in achieving the objective of faster and more inclusive growth. This sector accounts for 76% of the total investment in the economy and an even larger share in employment and output.
 
SPECIAL ECONOMIC ZONES -URBAN INFRASTRUCTURE
 
The  contribution of urban sector to India's GDP has increased from 29%  in FY  1950-51  to 47% in FY 1980-81. The urban sector presently contributes about 62%-63% of the GDP and this is expected to increase to 75%  by  the year 2021. The Government of India, in the year 2000, announced a pragmatic Special Economic Zone SEZ policy, which offers several innovative  fiscal and  regulatory incentives to developers of the SEZs, as well as the  units within  these zones. Each SEZ is treated as a foreign territory and units located in it are not subject to either customs tariffs or domestic duties. Sales  to  Domestic Tariff  Areas are permitted,  subject  to  payment  of applicable  customs  duties and import policies in force. Inputs, whether imported or sourced domestically, are free of any taxes.
 
OUTLOOK FOR SEZS IN INDIA
 
The  Honourable  Union  Finance  Minister of India,  in  his  speech  while presenting the Union Budget on February 26, 2010 stated that the SEZs  have attracted  significant  flows  of  domestic and  foreign  investments.  In financial  year 2009-10, exports from SEZs recorded a growth of  121%  over the corresponding period last year. Government is committed  to  ensuring continued  growth  of  SEZs  to draw  investments  and  boost  exports  and employment. As on May 25, 2010, the Board of Approval had given 578 formal approvals  to set up SEZs. As on March 31, 2010, 111 SEZs were  operational providing  employment to over 5.04 lakh people with a total export of  over Rs.2207110 millions.
 
Subject is a stakeholder in entities developing Special Economic Zones in Maharashtra.
 
(I) NAVI MUMBAI SEZ (NMSEZ):
 
The   State  Government  of  Maharashtra  appointed  City  and   Industrial Development  Corporation (CIDCO) as a nodal agency for developing  SEZs  in Navi Mumbai. CIDCO invited international bids for a joint venture partner 
for  developing  SEZs.  Navi Mumbai SEZ was formed with CIDCO as a joint venture (JV) partner in Navi Mumbai SEZ Private Limited. The total size  of NMSEZ is 5,289 acres (approximately 2,140 hectares). With a convenience  of existing rail, sea, road and air linkages and also the planned ones,  which are  expected to be developed in the near future, NMSEZ is well  placed  to create a world-class industrial hub in Navi Mumbai.
 
NMSEZ has 3 nodes: Dronagiri, Kalamboli and Ulwe.
 
The Dronagiri zone is located at the south-western tip of Navi Mumbai. The site is located to the east of Uran town, and is bound by the Karanja Creek on the south-east and Jawaharlal Nehru Port Trust (JNPT) India's  largest Container Port is to the north of the SEZ. Residential areas are located to the west and north-west of the zone. The Multi-Product SEZ is notified for an area of 1,223.67 hectares (Ha) at Dronagiri.
 
The Kalamboli zone lies on the eastern edge of Navi Mumbai and adjoins the Taloja MIDC area.The Special Economic Zone is notified for  an  area  of 310.33 Ha at Kalamboli and has approvals for Multi-Services SEZ (176.71 Ha) and IT/ITESSEZs (133.62 Ha).
 
PORTS
 
Sector Overview
 
Ports act as the gateways to India's international trade and handle approx 95% of foreign trade by volume and 70% by value. The country has 12  major ports and about 200 non-major ports along the 7,517 kms long its coast-line.
 
The  Ulwe  (W) node is situated along the southwestern  waterfront  of  the Central Business District of Navi Mumbai and extends towards the new  Nhava Sheva Docks (JNPT) to south. Three IT/ITES SEZs have been notified in  this node having area of 21.12 Ha, 38.28 ha and 10.77 Ha.
 
The Ulwe (E) node that skirts the southern edge of the proposed Navi Mumbai International Airport has two notified SEZ's. These are the Multi Service SEZ (128.43 Ha) and Gem and Jewellery SEZ (33.54 Ha).
 
Performance Overview
 
The State Government of Maharashtra has declared NMSEZ as  a  'Special Planning Authority' for all notified SEZs in Dronagiri, Kalomboli and Ulwe zones. Maharashtra Pollution Control Board (MPCB) has issued  necessary environmental  clearance  under the Environmental Impact Assessment (ElA) notification and consent to establish have also been obtained for all  the notified zones.
 
(II) MUMBAI SEZ (MSEZ):
 
Mumbai  SEZ  Limited (MSEZ) has obtained the in-principle approval of  the Ministry  of  Commerce, Government of India to develop a 5,000  Ha  SEZ  at Khopta, Maharashtra. 
 
Performance Overview
 
Notification under Section 6 of the Land Acquisition Act has been published for all villages under MSEZ.
 
REWAS PORT
 
INDIA'S EMERGING SHIPPING HUB
 
Subject is a stakeholder in the entity developing Rewas Port  project  in Maharashtra. Rewas Port has been conceived as a multi-cargo, all  weather, deep-water  port  based  SEZ. The port is being developed by Rewas  Ports Limited  under  a  'Concession Agreement'  executed  with  the  Maharashtra Maritime   Board  (MMB),  a  nodal  agency  of  the  State  Government   of Maharashtra. The Rewas port is located south of Karanja Fishing Harbour  in Dharamtar Creek, on the intertidal land of Rewas Headland, District Raigad, on the West Coast of Maharashtra. Rewas is located close to two major ports of India namely Mumbai Port (MbP) and Jawaharlal Nehru Port (JNP).
 
Performance Overview
 
All statutory approvals required prior to commencement of work have been obtained. The phase I development is planned on the inter-tidal  land  and Government land and excluding the hamlets in the area. The transfer process of these lands are at an advanced stage. The work will commence after these lands are transferred to the  project  by the State Government of Maharashtra.
 
POWER
 
Sector Overview
 
India has the fifth largest generation capacity in  the  world  with  an installed  capacity  of 152 Giga Watt (GW) as on September  30,  2009. The average  per  capita consumption of electricity in India, FY 2008-09, was estimated  at  704 Kilo Watt Hours(kWh). This is fairly low  when  compared with the world average that stands at 2,300 kWh. India's  installed  power generation  capacity  is currently around 1,57,229 Mega Watt  (MW).  In FY 2009-10, total capacity addition was 9,585 MW. Generation capacity steadily increased, however, the demand-supply gap has also increased over the years because of various problems faced by the sector. The energy shortage  and peak  power  shortage  during  FY  2009-10  was  about  10.1%  and  13.3  % respectively. 
 
Performance Overview
 
Subject has strategised its presence in power generation, distribution and transmission through its associate companies, viz. Urban Energy  Generation Private Limited (UEGPL), Urban Energy Distribution Private Limited  (UEDPL) and Urban Energy Transmission Private Limited (UETPL).
 
Power Generation: UEGPL - a special purpose vehicle (SPV), has been formed for  establishing,  commissioning,  setting-up, operating and maintaining electric power generating stations based on conventional / non-conventional 
sources.  Presently, UEGP has planned for implementing 3 natural gas based combined  cycle  power  projects  to  be  located  in  Raigad  District  of Maharashtra:
 
1.                         2,000 MW power plant at Dronagiri node of Navi Mumbai Special  Economic Zone (NMSEZ)  in Uran Taluka will be implemented in 3  phases,  for  which Board  of Approval, Ministry of Commerce and Industries, Government of  India has granted the status of Co-Developer. All Central Government statutory clearances including Environmental and coastal regulation zone have already been obtained.
 
2.                         The State Government of Maharashtra has issued support letter for 2,100 MW power plant at Vangni Tarfe Taloja in Panvel Taluka. Environmental and other statutory clearances are also at advance stage of approval.
 
3.                         The State Government of Maharashtra has issued support letter for 2,100 MW power plant at Kondgaon, Nagothane in Roha Taluka.  Environmental and other statutory clearances are also at advance stage of approval.
 
POWER DISTRIBUTION
 
UEDPL intends to develop power distribution infrastructure in the Dronagiri node of NMSEZ. The Board of Approval, Ministry of Commerce and Industries, Government of India has granted UEDPL the status of a 'co-developer'  for NMSEZ. It has also received the approval of authorized operations from the Ministry of Commerce and Industries, Government of India for establishing a power distribution system.
 
POWER TRANSMISSION
 
UETPL  intends  to  develop  infrastructure  related  to   operation   and maintenance of facilities for transmission of all form of energy / power in the Dronagiri node of NMSEZ. The Board of Approval, Ministry of Commerce and Industries,  Government  of India has granted UETPL the status  of  a  'co- developer' for NMSEZ. Route approval is being obtained for the transmission of the power.

WATER SUPPLY AND SEWERAGE DISPOSAL
 
Sector Overview
 
National  Water  Policy (2002) envisages that the water  resources  of  the country  should be developed and managed in an integrated manner and  inter alia states that adequate safe drinking water facilities should be provided to  the entire population both in urban and in rural areas. Irrigation  and multipurpose projects should invariably include a drinking water component, wherever  there is no alternative source of drinking water. Drinking  water needs  of  human  beings  and animals should be the  first  charge  on  any available water. 
 
With a view to provide 100% water supply accessibility to the entire  urban population by end of XI plan in 2012, it has been estimated that Rs.536660.000 millions would be required. Thus Public Private Partnership (PPP) is important to leverage government investments and to access private sector management efficiencies.
 
SOLID WASTE MANAGEMENT
 
As per  National Urban Sanitation Policy impacts of  poor  sanitation  are especially significant for the urban poor (approximately 22% of total urban population),  women,  children and the elderly. The loss due to diseases caused by poor sanitation for children under 14 years alone in urban  areas amounts to Rs.5000.000 millions at 2001 prices.
 
The  Government  of India, Ministry of Environment and Forests  has  framed Municipal Solid Waste (Management and Handling) Rules 2000 and notified the same  in  September,  2000  making  it  mandatory  for  all  the  municipal authorities in the country and those responsible for managing the municipal solid waste in the country to implement the Rules.
 
Eleventh Five Year Plan targets for urban sanitation is  100%  population coverage  with 70% by sewerage facility and 30% by low cost sanitation. In solid waste management, 100% population is proposed to  be  covered  with appropriate  solid  waste management. It has been estimated that the fund requirement for these programmes is Rs.531680.000 millions for sanitation and Rs.22120.000 millions for solid waste management. The Planning Commission has  noted  that  though privatization of water supply and sanitation sector could  not make  significant  progress as of now, there is substantial  potential  and need for the same in near future.
 
Performance Overview
 
Subject has plans to enter the water supply, wastewater and solid waste management sector, through one of its associate companies viz. Urban Water Supply Private  Limited (UWSPL) and is currently at  an  exploratory  and viability  assessment stage, to be undertaken at NMSEZ. The  objectives  of UWSPL are as follows:
 
·                            Supply water on 24X7 basis as per international standards.
 
·                            Develop infrastructure for water treatment, storage and distribution, wastewater collection, treatment and recycling.
 
·                            Make arrangements for sourcing sufficient quantity of water as per demand
 
·                            Provide water, waste water and recycled water management system
 
·                            Develop infrastructure for solid waste management system including waste collection, waste segregation, recycling, transportation, treatment and disposal.
 
The Board of Approval, Ministry of Commerce and Industries, Government of India has granted UWSPL the status of a 'co-developer' for NMSEZ.
 
ENGINEERING, PROCUREMENT AND COMMISSIONING
 
Sector Overview
 

The Finance Minister in his budget speech of February 26, 2010 has stated that accelerated development of high quality physical infrastructure, such as roads, ports, airports and railways is essential to sustain economic growth and proposed to maintain the thrust for upgrading infrastructure in both rural and urban areas. In the budget for FY 2010-11, a provision was made for Rs.1735520.000 millions, which accounts for over 46% of the total plan allocations, for infrastructure development in the country. Therefore, infrastructure sector is expected to show huge potential in the coming years. The Indian Engineering, Procurement and Commissioning sector is slowly and surely evolving into a strong, mature and industry-driven engine to achieve sustained economic growth.

 

Performance Overview

 

Subject intends to enter this business through one of its associate companies viz. Urban Infrastructure Construction Private Limited (UICPL). Through this company, Subject proposes to execute EPC related work primarily in the SEZs. It also plans to undertake the development of residential, commercial and retail spaces in the SEZs. These are currently at an initial basic development stage. UICPL has been granted the status of a’co-developer’ by the Board of Approval, Ministry of Commerce and Industries, Government of India for NMSEZ.

 

IT AND TELECOM

 

Sector Overview

 

The indian Information Technology-information Technology - Enabled Services (IT) ITES) industry has continued to perform its role as the most consistent growth driver for the economy. Service, software exports and EPO remain the mainstay of the sector. Over the last five years, the IT I ITES industry has grown at a remarkable pace. Consider some of the significant indicators for these remarkable achievements. The IT I ITES exports have grown to a staggering US$ 46.3 billion in 2008-09. the IT sector currently employing 2.2 million professionals directly and another 8 million people indirectly accounts for over 5% of GDP, a majority of the Fortune 500 and Global 2000 corporations are sourcing IT/ITES from India and it is the premier destination for the global sourcing of (T/ ITES accounting for 55% of the global market in offshore IT services and garnering 35% of the ITES / BPQ market. The Indian telecommunications industry is one of the fastest growing in the world. According to the Telecom Regulatory Authority of India (TRAI), the number of telephone subscribers in India increased to 638.05 Million at the end of April 2010 from 621.28 Million in March 2010, thereby registering a growth rate of 2.70%. With this, the overall Tele-density in India reaches 54.10. Wireless subscriber base increased from 584.32 Million in March 2010 to 601.22 Million at the end of April 2010 registering a growth of 2.89%. Wireless tele-density stands at 50.98.

 

Performance Overview

 

Subject has plans to facilitate the IT and telecom business requirements within the SEZ’s through its associate companies viz. Urban Infotech Solutions Private Limited (UISPL) and Urban Communications Infrastructure Private Limited (UCIPL). These are currently at an exploratory and viability stage. USPL and UCIPL have been granted the status of co-developer’ by the Board of Approval, Ministry of Commerce and Industries, Government of India for / NMSEZ. In the process UCIPL has acquired / Internet Service Provide (ISP) License, Category- B for Mumbai Service Area and is also registered, for Infrastructure Provider Category-I (IP-I), from Department of Telecommunications.

REAL ESTATE

 

Sector overview

 

The Indian real estate sector plays a significant role in the country’s economy. The real estate sector is second only to agriculture in terms of employment generation and contributes heavily towards the gross domestic product (GDP). Almost 5% of the country’s GDP is contributed to by the housing sector. In the next five years, this contribution to the GDP is expected to rise to 6%. India’s property market was in a severe downturn for much of 2009. The realty sector witnessed a decline after nearly four years of boom and high demand. While there have been some signs of the situation stabilizing, the recession has led to some significant ongoing problems. The year 2010 is likely to be characterized as a year of selective stability. While average vacancies are expected to increase and average prices to fall, this may not be experienced uniformly across all projects or locations. A flight to quality resulting in an increasingly two tier market may emerge during 2010 in which best quality projects and locations will benefit from selective stability. With supply levels having adjusted, the major driver of performance in the real estate market in 2010 is likely to be the strength of ongoing demand.

 

Performance Overview

 

Some of the subsidiary companies of subject have acquired land. The same may be consolidated for the purpose of development. The Company is of the view that any presumed fall in the current value of land held by some of its subsidiary companies is only temporary in nature. These investments are long term and in course of time the fair value of the investments are expected to be realised.

 

ASSET MANAGEMENT

 

The Indian asset management has witnessed unprecedented growth in recent years. The industry witnessed a compounded annual growth reat (CAGR) of around 47 % over a period of 2003-2009. During first nine months of FY 2009-10, assets under management (AUM) of venture capital fund (VCF) and foreign venture capital investors (FVCI) has increased by approximately Rs.30000.000 millions. During the same period, Mutual Funds AUM increased by Rs.2.48 Iakh crore reaching Rs.6.65 lakh crore.

 

With penetrations of Mutual Fund, Insurance and Pension Funds still far below global averages, they see tremendous growth opportunity in this sector.

 

Performance Overview

 

Subject is present in this industry through its wholly owned subsidiary-Urban Infrastructure Venture Capital Limited (UIVCL), a venture capital management company.

 

UIVCL currently manages Urban Infrastructure Opportunities Fund (UIOF), a scheme of Urban India Venture Capital Fund (UIVCF), a SEBI registered fund. UIOF is a close ended India domiciled venture capital fund with total corpus of approximately Rs.24340.000 millions.

 

UIVCL, is also advisor to Urban Infrastructure Capital Advisors (UICA), investment manager to India focussed Mauritius domiciled Urban Infrastructure Real Estate Fund (UIREF), with a total fund corpus of about USD 300 million.

 

The Funds’ investments are focussed on large townships and mixed-use development projects in Tier-I and Tier-Il cities of western and southern India. Together, the funds have invested in 32 SPVs spread across 15 cities of India.

 

INVESTMENT AVENUES

 

Both the funds are focussed on investments in real estate development projects in India. The investment philosophy is to identify development partners with high growth potential and to invest with them in SPVs for project execution. The intent is to grow the SPVs into large real estate development companies by adding multiple projects. The investment focus is on developing large integrated townships and large mixed-use developments.

 

STEEL DIVISION

 

Sector overview

 

As per Ministry of Steels annual report for FY 2009-10, India has emerged as the fifth largest producer of steel in the world and is likely to become the second largest producer of crude steel by 2015-16. Steel exports decreased by 36% as it reached an estimated 2.099 million tonne while steel imports were at an estimated 5.21 million tonne, a growth of 16.6%. Domestic steel consumption was at 40.997 million tonne and increased by 7.8%, indicating further strengthening of demand.

 

Performance Overview

 

Subject manufactures cold rolled coils, galvanised coils and galvanised corrugated sheets at its Nanded unit in Maharashtra. The Company’s current capacity of manufacturing cold rolled coils and galvanised coils is 62,500 Metric Tonnes Per Annum (MTPA) and 55,000 MTPA, respectively. In FY 2009-10, the Company achieved production (including Job Work) of 35,438 MT of CR coils and 36,733 MT of GP/GC as compared to 2414 MT and 3,255 MT respectively in FY 2008-09 due to an improvement in the demand for the Company’s products. The Company was able to undertake higher job works also.

 

Cold rolled coils are sold directly to end users, such as auto component manufacturers. Galvanised sheets are sold through distributors in the domestic market under the brand name of ‘SIPTA’. Presently, the dynamics of this industry have changed in favour of the integrated steel manufacturer with capabilities of manufacturing hot rolled, cold rolled and also galvanising of steel. This factor has put the Steel Division’s operating margins under pressure.

 

PLASTIC PROCESSING DIVISION

 

Flexible Packaging

 

Sector overview

 

Flexible Intermediate Bulk Containers (FIBC) industry in India is very capable and highly developed. The country is a large player in the international FIBC business and ranks behind only China in the global supply scenario. The domestic demand for FIBC’s is still very low; the Indian FIBC industry exports over 95% of its output. The Indian woven sack industry has also been one of the fastest growing segments of the bulk packaging industry and has registered a CAGR of 15% or more over the last decade. India produces the equivalent of almost 1 million MT of polypropylene (PP) and high density polyethylene (HDPE) per annum valued at around Rs.100000.000-120000.000 millions.

 

Performance Overview

 

The Company’s installed capacity for manufacturing of woven sacks, fabrics and staple fibres is 59,478 MTPA. In FY 2009-10, the Company produced 32,496 MT of woven sacks, fabrics and staple fibres as compared to 25,535 MT in FY 2008-09.

MASTERBATCHES

 

Sector overview

 

Masterbatches are used to impart colour and various special properties to the products manufactured from plastics. Though the cost of Masterbatches in the final plastic product is very low, its quality is very important for attaining the desired properties of the end product. In general, Masterbatch industry can be broadly classified into Organised Sector and Small Scale Sector with more than 250 players. Key operators in the organized segment hold about 50% of the market.

 

Performance Overview

 

Subject’s products have been well received in the Masterbatch and Antifibrillation Masterbatch segments. The Company’s installed capacity for manufacturing of Masterhatches is currently 12,000 MTPA an increase of 79% as compared to capacity of FY 2008-09. In FY 2009-10, the Company produced 5,125 MT of Masterbatches an increase of 89% over production in FY 2008-09.

 

SPINNING

 

Sector overview

 

The Indian Textile sector grew by more than 8% in the last two fiscal years and is projected to grow at 1 6% by 2012. Being the second largest employer of Indians after agriculture, it currently employs 88 Million people and is expected to generate another 17 million jobs by 2012. The gross value is expected to rise from its present $9309.8 millions to a whopping $105 billion Industry.

 

Performance Overview

 

The Company’s installed capacity for manufacturing of Spinning Yarn is 16010 MTPA - an increase of 44% as compared to capacity of FY 2008-09. In FY 2009-10, the Company produced 8,600 MT- an increase of 29% over the previous FY. This year, the Company was able to substantially improve upon its profitability in this segment. This division has turned the corner with a robust performance.

 

CONTINGENT LIABILITIES

 

Particulars

As on 31.03.2010

Rs. in millions

i) Claims against the Company not acknowledged as debts (Disputed liability in appeal)

 

Sales Tax

0.000

Excise Duty

11.003

Railway Claims

9.583

Total

20.586

 

 

ii) Bank Guarantees

(Bank Guarantees are provided under contractual/legal obligation. No Cash outlow is probable)

96.237

 

 

 

 

 

FIXED ASSETS

 

Tangible Assets

 

·         Freehold Land

·         Leasehold Land

·         Buildings

·         Plant and Machinery

·         Furniture and Fixtures

·         Office Equipments

·         Vehicles

 

Intangible Assets

·         Drawings and Designes


 

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.46.13

UK Pound

1

Rs.75.52

Euro

1

Rs.66.53

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

7

--PROFITABILIRY

1~10

7

--LIQUIDITY

1~10

8

--LEVERAGE

1~10

8

--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

 

64

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.