MIRA
INFORM REPORT
|
Report Date : |
23.02.2011 |
IDENTIFICATION DETAILS
|
Name : |
BOMBAY RAYON FASHIONS LIMITED |
|
|
|
|
Registered Office : |
D – 1ST Floor, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
21.05.1992 |
|
|
|
|
Com. Reg. No.: |
11-66880 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L17120MH1992PLC066880 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
MUMM08816D |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACM3447J |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business : |
The
Company is mainly engaged in the business of manufacturing of textiles
consisting of fabrics and garments. |
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 77000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed 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 normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Ms. Prachi A. Deshpande |
|
Designation : |
Finance Controller |
|
Contact No.: |
91-22-66955566 |
|
Date : |
22.02.2011 |
LOCATIONS
|
Registered Office : |
D – 1ST Floor, Oberoi Garden Estates, Chandivali, Farms
Road, Chandivali, Andheri (E), Mumbai – 400072, Maharashtra, India |
|
Tel. No.: |
91-22-66955566/ 56950506 |
|
Fax No.: |
91-22-28476992/ 28598522 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
5000 sq. ft. – Owned [Approximately] |
|
|
|
|
Factory : |
Raj Rajeshwari Compound, Activities: Weaving of Fabrics TTC Industrial Area, Navi Mumbai - 701103, Activities: Weaving of Fabrics, Garment Manufacturing Plot No. 15-23/307, The Ichalkaranji Khanjire Industrial Estate, Shahapur, Ichalkaranji Activities: Garment Manufacturing Plot No. 398, 399, W. No. H. No. 307, The Industrial Co- operative Estate Limited, Babasaheb Khanjire Nagar, Shahapur, Ichalkaranji Activities: Garment Manufacturing Plot No. 10-14, 21-25, Phase III, Shri Laxmi Co-operative Industrial Estate Limited, Hatkanangale, Ichalkaranji Activities: Garment Manufacturing C-7, Tarapur Industrial Area, M I D C, Tarapur Activities: Garment Manufacturing Sakanewadi and Sanja and Activities: Garment Manufacturing 57/A, 3rd Phase, Peenya Industrial Area, Activities: Garment Manufacturing 288/289, 4th Phase, Peenya Industrial Area, Activities: Garment Manufacturing 19th KM 53/1 0 Madanayakanna Hialli, Madavara
Post Dasunp, Activities: Garment Manufacturing Plot No. 471 -D2, IV Phase, Peenya Industrial Area, Activities: Garment Manufacturing 151 , Babaasabara Palya, Sy. No 78/3, Yeshwanthpur, 3rd Activities: Garment Manufacturing Plot No./Survey No.21 to 32 (P), SW - 52, Activities: Yarn Dyeing, Weaving, Processing of fabrics and garment
manufacturing Plot No. 27A, S. No. 133 (P) and 135 - part, Bidadi Industrial Area,
Ramnagar District, Bangalore – 560058, Karnataka, India Activities: Garment Manufacturing Plot No. N 2, 4th Cross, 1st Stage, Peenya Indl. Area, Activities: Garment Manufacturing No.58, 3rd Phase, Peenya Industrial Area, Activities: Garment Manufacturing 85/P, 2nd Stage, Industrial Layout, Yeshwanthpur, Activities: Garment Manufacturing No. 505, 12th Mile, Kengeri Hobli, Activities: Garment Manufacturing 42/2 (old No. 1017 Ward #10), Rajaji Nagar, Activities: Garment Manufacturing No. 40, 4th No. 72/2, Activities: Garment Manufacturing 26/1 A2, 26/1 B2, 8th Mile, T.M. Industrial Area, Activities: Garment Manufacturing 320, 320/5, Activities: Garment Manufacturing 85/O, 2nd Stage, Industrial Layout, Yeshwanthpur, Activities: Garment Manufacturing Chennai B -1 1 , Industrial Estate, Ambattur, Chennai - 600 058, Activities: Garment Manufacturing Super A 8 and 9 Gundy Industrial Estate, Chennai - 600 032, Activities: Garment Manufacturing No. 41 , llnd main Road, Industrial Estate, Ambattur, Chennai - 600
058, Activities: Garment Manufacturing Other: Activities: Weaving of fabrics Plot No. A-18, Activities: Garment Manufacturing Survey No. 311/1, Activities: Garment Manufacturing |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Janardan Agarwal |
|
|
Designation : |
Chairman |
|
|
|
|
|
|
Name : |
Mr. Aman Agarwal |
|
|
Designation : |
Vice Chairman |
|
|
Date of Birth/Age : |
36 Years |
|
|
Qualification : |
M.B.A. ( |
|
|
Experience : |
14 Years |
|
|
Date of Appointment : |
31.01.2003 |
|
|
|
|
|
|
Name : |
Mr. Naseer Ahmed |
|
|
Designation : |
Joint Vice Chairman |
|
|
|
|
|
|
Name : |
Mr. Prashant Agarwal |
|
|
Designation : |
Managing Director |
|
|
Date of Birth/Age : |
34 Years |
|
|
Qualification : |
B. Tech., M.S. ( |
|
|
Experience : |
12 Years |
|
|
Date of Appointment : |
01.09.1997 |
|
|
|
|
|
|
Name : |
Mr. Uday Mogre |
|
|
Designation : |
Executive Director (Corporate) |
|
|
|
|
|
|
Name : |
Mr. A R Mundra |
|
|
Designation : |
Executive Director (Finance) |
|
|
|
|
|
|
Name : |
Dr. Pravin P Shah |
|
|
Designation : |
Director |
|
|
|
|
|
|
Name : |
Dr. B S Bhesania |
|
|
Designation : |
Director |
|
|
|
|
|
|
Name : |
Mr. S B Agarwal |
|
|
Designation : |
Director |
|
|
|
|
|
|
Name : |
Mr. Suresh Vishwasrao |
|
|
Designation : |
Director |
|
|
|
|
|
|
Name : |
Mr. A Arumugham |
|
|
Designation : |
Director |
|
KEY EXECUTIVES
|
Name : |
Ms. Prachi A. Deshpande |
|
Designation : |
Company Secretary |
|
Address : |
D 1st Floor, |
|
Tel. No.: |
91-22-66955566 |
|
E-mail.: |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
22,456,500 |
24.17 |
|
|
16,802,760 |
18.09 |
|
|
39,259,260 |
42.26 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
39,259,260 |
42.26 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10,172,306 |
10.95 |
|
|
200,468 |
0.22 |
|
|
12,428,438 |
13.38 |
|
|
22,801,212 |
24.54 |
|
|
|
|
|
|
8,657,692 |
9.32 |
|
|
|
|
|
|
1,525,894 |
1.64 |
|
|
1,775,274 |
1.91 |
|
|
18,880,668 |
20.32 |
|
|
509,138 |
0.55 |
|
|
288,565 |
0.31 |
|
|
18,000,400 |
19.38 |
|
|
82,565 |
0.09 |
|
|
30,839,528 |
33.20 |
|
Total Public shareholding (B) |
53,640,740 |
57.74 |
|
Total (A)+(B) |
92,900,000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
19,000,000 |
- |
|
Total (A)+(B)+(C) |
111,900,000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
The Company is mainly engaged in the business of
manufacturing of textiles consisting of fabrics and garments. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
||||||||||
|
|
|
||||||||||
|
Brand Name : |
‘Guru’ |
||||||||||
|
|
|
||||||||||
|
Exports : |
|
||||||||||
|
Products : |
Fabrics and apparels |
||||||||||
|
Countries : |
|
||||||||||
|
|
|
||||||||||
|
Terms : |
|
||||||||||
|
Selling : |
L/C, Cash and Credit (30-60-90 Days) |
||||||||||
|
|
|
||||||||||
|
Purchasing : |
Cash and Credit (30-60-90 Days) |
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Fabrics |
Million Metres |
220.000 |
78.15 |
|
Garments |
Million Pieces |
88.80 |
37.55 |
GENERAL INFORMATION
|
Customers : |
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
No. of Employees : |
25000 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
|
||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Secured Loans
(Rs. in millions)
Unsecured Loans (Rs. in millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
V. K. Beswal and Associates Chartered Accounts |
|
Address : |
Mumbai, |
|
|
|
|
Subsidiaries : |
v BRFL v DPJ Clothing
Limited v Bombay Rayon
Holdings Limited v BRFL Italia
S.r.l. |
|
|
|
|
Other related
parties : |
v Reynold Shirting
Limited v Bombay Rayon
Clothing Limited v Bestseller
Retail India Private Limited v Best United
Lifestyles Private Limited v Best United
India Comforts Private Limited v Bestseller
Wholesale India Private Limited v B. R. Machine
Tools Private Limited |
|
|
|
|
SPV formed for
Special Integrated Textiles Parks : |
v Islampur
Integrated Textile Park Private Limited v Latur Integrated
Textile Park Private Limited |
CAPITAL STRUCTURE
AS ON 21.09.2010
Authorised Capital : Rs. 1500.000 Millions
Issued, Subscribed & Paid-up Capital : Rs. 1119.000
Millions
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
120000000 |
Equity Shares |
Rs. 10/- each |
Rs. 1200.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
111900000 |
Equity Shares |
Rs. 10/- each |
Rs. 1119.000
millions |
|
|
|
|
|
Out of above
- 11587600 Equity shares were issued as fully paid-up pursuant to
scheme of amalgamation
- 3998000 Equity shares were issued as fully paid-up bonus shares by
capitalization of profit and loss account.
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 |
1119.000 |
691.000 |
630.000 |
|
|
2] Share Application Money |
0.000 |
3330.000 |
126.270 |
|
|
3] Reserves & Surplus |
17974.171 |
7873.183 |
5289.647 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Advance Money Received for convertible warrants |
202.650 |
0.000 |
0.000 |
|
|
NETWORTH |
19295.821 |
11894.183 |
6045.917 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
21467.237 |
16604.465 |
6667.264 |
|
|
2] Unsecured Loans |
3334.247 |
550.381 |
476.333 |
|
|
TOTAL BORROWING |
24801.484 |
17154.846 |
7143.597 |
|
|
DEFERRED TAX LIABILITIES |
911.771 |
661.425 |
224.099 |
|
|
|
|
|
|
|
|
TOTAL |
45009.076 |
29710.454 |
13413.613 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
19259.210 |
8577.423 |
4114.635 |
|
|
Capital work-in-progress |
5542.555 |
7152.754 |
2678.065 |
|
|
|
|
|
|
|
|
INVESTMENT |
4394.813 |
3322.790 |
580.752 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6955.757
|
4751.411
|
3217.045
|
|
|
Sundry Debtors |
3772.531
|
3107.222
|
2018.365
|
|
|
Cash & Bank Balances |
260.776
|
314.432
|
551.877
|
|
|
Other Current Assets |
4403.113
|
0.000
|
0.000
|
|
|
Loans & Advances |
2405.670
|
3859.081
|
1308.420
|
|
Total
Current Assets |
17797.847
|
12032.146 |
7095.707 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1520.969
|
922.973 |
684.505 |
|
|
Other Current Liabilities |
239.169
|
238.637
|
24.101
|
|
|
Provisions |
225.211
|
213.049
|
346.940
|
|
Total
Current Liabilities |
1985.349
|
1374.659
|
1055.546
|
|
|
Net Current Assets |
15812.498
|
10657.487
|
6040.161
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
45009.076 |
29710.454 |
13413.613 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16147.659 |
13424.003 |
9261.105 |
|
|
|
Other Income |
156.605 |
47.875 |
177.608 |
|
|
|
TOTAL (A) |
16304.264 |
13471.878 |
9438.713 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials |
9828.343 |
8126.326 |
6563.337 |
|
|
|
Manufacturing and Other Expenses |
3944.602 |
2855.793 |
1572.652 |
|
|
|
Increase/(Decrease) in Finished Goods |
(1500.467) |
(770.982) |
(989.999) |
|
|
|
TOTAL (B) |
12272.478 |
10211.137 |
7145.990 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4031.786 |
3260.741 |
2292.723 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
935.437 |
659.629 |
258.297 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3096.349 |
2601.112 |
2034.426 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
680.653 |
447.747 |
318.523 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2415.696 |
2153.365 |
1715.903 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
656.505 |
668.381 |
504.605 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1759.191 |
1484.984 |
1211.298 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2976.552 |
1674.716 |
638.979 |
|
|
|
|
|
|
|
|
|
Add |
TRANSFERRED
ON AMALGAMATION |
0.000 |
60.411 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
ADDITIONAL
DIVIDEND AND CORPORATE DIVIDEND TAX |
0.000 |
10.705 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
90.000 |
80.000 |
65.000 |
|
|
|
Proposed Dividend |
167.850 |
130.650 |
94.500 |
|
|
|
Corporate Dividend Tax |
28.526 |
22.204 |
16.061 |
|
|
BALANCE CARRIED
TO THE B/S |
4449.367 |
2976.552 |
1674.716 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
9311.959 |
8460.287 |
3880.057 |
|
|
TOTAL EARNINGS |
9311.959 |
8460.287 |
3880.057 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
560.096 |
485.366 |
305.350 |
|
|
|
Stores & Spares |
332.188 |
21.705 |
20.475 |
|
|
|
Capital Goods |
2164.861 |
1552.886 |
1078.032 |
|
|
TOTAL IMPORTS |
3057.145 |
2059.957 |
1403.857 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
18.90 |
21.89 |
19.23 |
|
|
|
- Diluted |
18.59 |
17.30 |
17.53 |
|
Expected Sales (2010-2011) : Rs. 20000.000 Millions
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 (1st
Quarter) |
30.09.2010 (2nd
Quarter) |
|
Net Sales |
|
5026.990 |
5231.820 |
|
Total Expenditure |
|
3747.470 |
3751.520 |
|
PBIDT (Excl OI) |
|
1279.520 |
1480.300 |
|
Other Income |
|
22.040 |
36.160 |
|
Operating Profit |
|
1301.560 |
1516.460 |
|
Interest |
|
309.690 |
333.300 |
|
PBDT |
|
991.870 |
1183.160 |
|
Depreciation |
|
290.090 |
324.030 |
|
Profit Before Tax |
|
701.780 |
859.130 |
|
Tax |
|
180.090 |
237.210 |
|
Profit After Tax |
|
521.690 |
621.920 |
|
Net Profit |
|
521.690 |
621.920 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
10.79
|
11.02
|
12.83 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.96
|
16.04
|
18.53 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.52
|
6.93
|
11.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.18
|
0.28 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.39
|
0.11
|
0.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
8.96
|
8.75
|
6.72 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs
in Millions
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors |
1520.969
|
922.973 |
684.505 |
|
|
|
|
|
HISTORY
Subject is one of the leading, vertically integrated textile
companies in
Subject was incorporated on May 21, 1992 as Mudra Fabrics Private Limited On
October 13, 1992 the company was converted into a public limited company. In
September 30, 2004, the company got their present name, Subject During the year
2003-04, the company expanded the capacity by adding plant and machinery and
other assets to the value of Rs. 40.261 millions.
In the year 2005, the company consolidated the Bombay Rayon Group business into
Subject In March 2005, Bombay Rayon Private Limited was amalgamated with the
company with effect from April 1, 2004. Also, the two partnership firms namely
Garden City Clothing and BR Exports were consolidated with the company with
effect from March 1, 2005. This results the consolidation of businesses from
fabrics, design development and garments under one corporate roof.
In September 5, 2005, the company incorporated a wholly owned subsidiary
company,
During the year 2006-07, the company acquired DPJ Clothing Limited, a
Bombay Rayon Apparels Private Limited was incorporated on June 26, 2007. In
August 2007, the said subsidiary company has taken over the garment business
from Leela Scottish Lace Private Limited at a consideration of Rs. 1550.000
millions. Subsequent to the takeover, the name of the company was changed to Leela
Scottish Lace Private Limited
During the year 2007-08, the company entered into an MOU with Government of
Maharashtra for setting up of new capacities for manufacturing of fabrics and
garments at various locations. In October 2007, the company acquired LNJ
Apparel, a unit of RSWM Limited which is engaged in the business of
manufacturing and exports of garments for a consideration of Rs.255.000
millions.
In May 2008, the company acquired garment business of Maryan Apparels Private
Limited for a consideration of Rs. 147.400 millions. The unit is engaged in the
manufacturing and exports of garments and is situated at Thiruvananthpuram,
having manufacturing capacities of 2.40 mn pcs per annum. In May 5, 2008, the
company has set up a subsidiary under name BRFL Italia SRL at
The company is in the process of setting up the manufacturing units in the
Integrated Textile Parks at Islampur and Latur. Also, the company approved the
Scheme of Amalgamation of Leela Scottish Lace Private Limited, a wholly owned
subsidiary with the company.
RESULT OF OPERATIONS
During the year, the
Company has recorded the turnover of Rs. 16147.659 millions against Rs.
13424.003 millions in the previous year, an increase of 1.20 times. The export
turnover had a quantum jump to Rs. 10041.021 millions from Rs. 87369.430
millions. The Profit After Tax (PAT) for the year increased from Rs. 1484.984
millions to Rs. 1759.191 millions, a growth of 1.18 times over the previous
financial year.
SUBSIDIARY
COMPANIES:
(i) Bombay Rayon
Holdings Limited (BRHL)
BRHL holds 100%
equity of BRFL Europe B.V.,
(ii) DPJ Clothing
Limited,
DPJ Clothing Limited
is engaged in business of wholesale marketing and distribution of clothing Products.
The said subsidiary is assisting in getting many mid size retailers of
(iii) BRFL Europe
B.V.,
BRFL Europe B.V. at
(iv) BRFL
The Company owns the
popular 'GURU1 brand and is into the business of retailing of readymade
garments as well as other accessories in
The Government of
India, Ministry of Corporate Affairs, vide its letter dated March 19, 2010
granted its approval under Section 212(8) of the Companies Act, 1956, exempting
the Company from attaching the full text of the financial statements of the
subsidiaries of the Company. In accordance with the requirements of the said
approval, necessary disclosures are made in respect of the subsidiaries in this
Annual Report alongwith the statement pursuant to Section 212 of the Companies
Act, 1956. Any shareholder who wishes to have a copy of the annual accounts and
detailed information about the subsidiary company may write to the subsidiary
company and/or the Company for the same. The annual accounts of the subsidiary
companies will also be kept for inspection by any member at the Registered
Offices of the Company and its subsidiaries.
MANAGEMENT DISCUSSION AND ANALYSIS
Economy Overview
The global economy
is still under recovery but the situation has improved significantly as
compared to the previous year. Companies around the world have shown better
than expected results. There is a lot of optimism in the air about the strong
recovery of financial markets all over the world as well. Backed by strong
domestic demand and consumer confidence, the Indian economy has shown great
resilience and is back on the path of growth. The financial markets of
Although inflation
continues to remain high and still remains a cause of worry, the Indian economy
is expected to grow at 9.5% in 2011. Higher agricultural productivity,
industrial outputs, disposable incomes and strong fundamentals would all
together contribute to the growth of the Indian economy in the coming years.
Industry Overview
The Global textile
and apparel trade is estimated to be at US$ 580 billion and is expected to
reach US$ 805 billion
by 2015. In the
Agreement on Textiles and Clothing (ATC) which was fully implemented on 01.02.2005,
all trade barriers (both tax and non-tax) imposed by the developed countries on
imports from developing countries were eliminated, giving way for a free trade
regime in the global textile trade.
Major growth of
textile and apparel consumption is expected to come from US, EU and emerging
markets like
a) A cut in the TUFS
scheme allocation announced in the Budget 2010-11.
b) Extension of 2%
interest subvention on exports for another year till March 2011 to the
handlooms, carpets and handicraft industry.
c) Increase in the MAT
to 18% Efforts are constantly being made by exporters to explore new markets
and increase as well as improve market share. Smaller exporters with limited
presence in the textile value chain continue to be more vulnerable while large
integrated players are expected to benefit given that global retailers have
been increasingly consolidating their supplier base to a few integrated players
to improve supply chain efficiency and reduce cost.
Business Overview
Subject, a Mumbai
based company formed in 1986 is an integrated textile group, engaged in the
manufacture, export and retailing of highend designer range of fabrics and
garments. The Company sells its products to other textile manufacturers,
exporters as well as retailers. BRFL is one of
and integrated
players to improve supply chain efficiency and reduce the costs.
The Company's net
sales and net profit for 2009-10 stood at 16,147.660 million and Rs. 1,759.190
million respectively, an increase of 20.29% and 18.47% over the previous year.
Operations
The Company uses
advanced production facilities to manufacture its products cost-effectively.
The Company also believes that its integrated facilities and design capability
provides significant competitive advantages. The Company has 32 manufacturing
facilities across
The Company
continues to lay utmost importance to fashion and customer and its team of
designers based in
Sector - wise
distribution of sales
In 2009, the Company
acquired the Italian brand 'GURU' and retail business of Jam Session Holdings
S.r.l, an Italian Company. The first GURU store was launched in Mumbai to be
followed by a second one in
Recent
Developments
In the last two
years, the Company has made several acquisitions to strengthen its presence as
an integrated textile player and a complete apparel company. Besides that, the
Company has also undertaken several expansion plans in order to gain from the
economies of scale. During the year, the Company has commenced commercial
production of its manufacturing facilities of yarn dyeing, weaving, processing
at Tarapur and garmenting at Ichalkaranji, Islampur, Latur and Osmanabad With
this the Company completed expansion plans till Phase IV. All the facilities
are equipped with the latest technology and high level of automation. The
Company is now in the process to embark upon Phase V and VA of its expansion
plan for setting up new weaving and yarn dyeing capacities in
In order to be more
cost competitive, the Company is further looking at outsourcing some of its
manufacturing to
Outlook
The Company believes
the global economic crisis is behind them. As a company, BRFL is optimistic
about the future as well as its growth path. With signs of continual recovery
in the
For the industry at
home, large debt funded expansion plans undertaken in the past are likely to
translate into high
leverage for some
time. While the existing plans are likely to be completed, further expansion
plans might be undertaken only once the global economies, stabilises. The
Company is confident in the ability to grow its business organically and, with
four completed acquisitions in less than three years. The Company considers the
process of strategic integration of new businesses to be among its management
team's core skill set.
The Company believes
opportunities are expected to continue to arise as it anticipates and responds
to the everchanging global marketplace. The Company will continue to focus on exports
and making in-roads into the domestic retail market. The Company's desire to
continue to look at better and more efficient ways to become a complete apparel
company will continue to drive its business strategy into the future and
confirm BRFL's strength as a global player with local execution skills.
Financial
Performance:
The Company recorded
a total income of Rs. 16304.260 million from Rs. 13,471.880 million in 2008-09,
an increase of 21.02%. The Company's EBIDTA stood atRs. 4,031.790 million as against
Rs. 3,260.740 million in 2008-09, an increase of 23.65%. Prof it after Tax of
the Company stood at Rs. 1,759.190 million against Rs. 1,484.980 million in
2009-10, an increase of 18.47%.
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
(Rs.
in millions)
|
Particulars |
|
31.03.2010 |
|
Corporate guarantee given by the company for its subsidiary for the facilities given by banks/ suppliers |
|
-- |
|
Export bills discounted with banks under letter of credits or otherwise |
|
1220.299 |
FIXED ASSETS
v Land
v Buildings
v Furniture and Fixtures and Office Equipments
v Motor Car and Vehicles
v Plant and Machinery
v Computer
v Capital Work in Progress
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2010
(STANDALONE)
(Rs. in millions)
|
Particulars |
Quarter Ended |
Nine Month ended
|
|
31.12.2010 |
31.12.2010 |
|
|
Unaudited |
Unaudited |
|
|
|
|
|
|
Sales / Income from operations |
5441.784 |
15700.593 |
|
|
|
|
|
Expenditure |
|
|
|
a) (Increase)/Decrease in Stock |
(406.454) |
(1251.684) |
|
b) Consumption of Materials |
3203.054 |
9255.751 |
|
c) Employees Cost |
499.326 |
1469.706 |
|
d) Depreciation |
392.585 |
1006.698 |
|
e) Job work charges |
148.236 |
463.555 |
|
f) Other Expenditure |
596.695 |
1532.515 |
|
g) Total |
4433.442 |
12476.541 |
|
|
|
|
|
Profit from operations before other income, interest and exceptional items |
1008.342 |
3224.052 |
|
Other Income |
51.189 |
108.387 |
|
Profit from operations before interest & exceptional items |
1058.531 |
3332.439 |
|
Interest |
407.428 |
1050.420 |
|
Profit from operations before exceptional items |
651.103 |
2282.019 |
|
Exceptional Items |
-- |
-- |
|
Profit from Ordinary Activities before tax |
651.103 |
2282.019 |
|
|
|
|
|
Provision for Taxation |
|
|
|
(1) (a) Current Tax |
106.349 |
480.401 |
|
(b) Deferred Tax |
12.876 |
56.124 |
|
(2) Earlier years Tax |
-- |
-- |
|
Net Profit from Ordinary Activities after tax |
531.878 |
1745.494 |
|
Extraordinary items (net of tax expense) |
-- |
-- |
|
Net Profit for the period |
531.878 |
1745.494 |
|
Paid up equity share capital (Equity shares of Rs. 10/
each) |
12790.00 |
1279.000 |
|
Reserve (Excluding Revaluation Reserve) (As per Last
Audited Balance Sheet) |
-- |
-- |
|
Earning Per Share (Weighted Average) |
-- |
-- |
|
- Basic (Rs.) (not annualised) |
4.29 |
15.05 |
|
- Diluted (Rs.) (not annualised) |
3.86 |
14.15 |
|
Public shareholding - |
|
|
|
a) No. of Shares |
88640740 |
88640740 |
|
b) Percentage of shareholding |
69.30 |
69.30 |
|
Promoters and promoter group shareholding |
|
|
|
a) Pledge /Encumbered |
|
|
|
- Number of shares |
22035000 |
22035000 |
|
- Percentage of shares (as a % of the total shareholding of of promoter and promoter group ) |
56.13 |
56.13 |
|
- Percentage of shares (as a % of the total share capital of the Company) |
17.23 |
17.23 |
|
b) Non-encumbered |
|
|
|
- Number of shares |
17224260 |
17224260 |
|
- Percentage of shares (as a % of the total shareholding of of promoter and promoter group ) |
43.87 |
43.87 |
|
- Percentage of shares (as a % of the total share capital of the Company) |
13.47 |
13.47 |
Notes:
Notes :-
1 The above results were reviewed by the
Audit Committee and approved by the Board of Directors at their meetings held
on February 09, 2011 and are subjected to Limited Review by the Statutory
Auditors.
2 The details of Investors' complaints received and resolved from 01-10-2010 to 31-12-2010: -
Opening Balance Received Resolved Pending
Nil 4 4 Nil
3 During the quarter the Company has
acquired 70.56% stake in
4 During the quarter the Company has
a) issued 1,60,00,000 Global
Depository Receipts representing equivalent number of equity shares to the
persons resident outside
b) allotted 1,00,00,000 warrants convertible into equity shares to the promoter group company B. R. Machine Tools Private Limited, on receipt of upfront advance of Rs. 657.500 Millions.
Each warrant is convertible at the
option of the warrant holder into equity share of face value of Rs. 10/- each,
at a price of Rs. 263/- each as approved by the shareholders in their meeting
held on September 21, 2010.
5 The Company
operates in a single segment of manufacture and sale of Textiles.
6 Previous
quarter's /year's figures have been regrouped/ rearranged wherever necessary.
Fixed Assets:
- Land
- Building
- Furniture and fixtures
- Office equipments
- Motor car and vehicles
- Plant and machinery
- Computer
AS PER WEBSITE DETAILS:
PROFILE:
Bombay Rayon manufactures one of the most versatile and
technically advanced fabrics and apparels in
They are the largest shirt manufacturer in
BRFL currently employs over 32,000 people.
MILESTONES:
1986 Bombay Rayon Group was established by Mr. Janardhan
Agarwal.
1990 First fabric manufacturing facility came into existence in
1998 Bombay Rayon group commenced export of fabrics.
2001 Garment division was launched.
2005 Bombay Rayon Groups business was consolidated into
BRFL. The company made a successful IPO and is listed on all the stock
exchanges in
2005 BRFL set up 7 garment manufacturing facilities in
2007 BRFL acquired “Leela Scottish Lace” one of the largest
garment manufacturing units set up in
2007 BRFL also acquired “LNJ Apparel” a 1000 machine
specialized bottoms plant.
2007 BRFL marked the commencement of the mega USD 250
million textiles and garment project under a special MOU signed with the
government of
2008 BRFL acquired the iconic brand “Guru”.
BOARD OF DIRECTORS
Mr. Janardhan Agarwal
Chairman
Janardan Agrawal, is the Chairman of the Company. He is the main person
behind the establishment and growth of the Bombay Rayon Group. As chairman he
provides strategic direction to the Company. He is accredited with the
establishment of the Bombay Rayon brand of fabrics in the local retail market.
He has also set up a unique bi-annual presentation of the company’s collections
to the trade, a very novel way of marketing products and has exhibited
foresight and vision in the continuously expanding business and has brought the
same to its present status. He has been the driving force behind the Group’s
growth. Since 1997 Mr. Agrawal is assisted by his sons Aman Agrawal and
Prashant Agarwal. In spite of adverse business cycles during the 1990’s the
group has consistently made profits in all its companies under his dynamic and
compassionate leadership.
Mr. Aman Agrawal
Executive Vice
Chairman
Aman Agrawal, is the Executive Vice-Chairman of Company. He
is the elder son of Mr. Janardan Agrawal and has over 11 years of experience in
the textile industry. Over the years he has developed expertise in weaving
technology. The Group’s reputation of being capable of delivering any sort of
complicated yarn, dyed fabric is mainly due to his efforts of building in-house
expertise of transforming complex designs from drawing board to shop floor. He
is currently in charge of fabrics manufacturing and controls all the fabrics
manufacturing activities including procurement of yarn, other raw materials,
production planning and control and Packing and logistics. He provides
strategic direction in selection of technology and machineries in setting up
new manufacturing facilities, improvement of production processes and new
ventures. He has pursued management studies from
Mr. Prashant Agarwal
Managing Director
Prashant Agarwal, is the Managing Director of the Company.
He is the younger son of Mr. Janardan Agrawal and has over 9 years of
experience in the textile industry. Presently he is in charge of fabrics
design, oversees marketing of fabrics and holds responsibility from initiation
to delivery for the garment business. Mr. Prashant is accredited with
development and growth of the Group’s export business. Under his leadership
exports of fabrics grew multifold. The establishment of Bombay Rayon as a
fashion brand in the international market and a reliable supplier of quality
garments to top labels has been his achievement. The shift of strategic focus
from a fabrics company to a fully integrated complete apparel company is due to
his vision. He holds a bachelor degree in Chemical Engineering from University
Institute of Chemical Technology,
Mr. Naseer Ahmed
Joint Vice Chairman
Naseer Ahmed, is the Joint Vice-Chairman. He is a sitting
member of the legislative council of the state of Karnataka. He was a minister
of state for small-scale industries in the state of Karnataka from October 1990
to November 1992. He holds a bachelor degree in commerce from Kolar Gold Fields
1st
Mr. Uday Mogre
Executive Director –
Corporate
Uday C. Mogre, holds a bachelor degree in technology
(Chemical Engineering) from Laxminarayan Institute of Technology,
Mr. A R Mundra
Executive Director –
Finance
A.R. Mundra, has over twenty-four years of experience in
finance, commercial and managerial related matters. He holds a bachelor’s
degree in commerce and law (gold medallist). He is an associate member of the
Institute of Chartered Accountants of India and also of the Institute of
Company Secretaries of India. Besides this, he is a member of the International
Institute of Business Management,
Dr. Pravin P. Shah
Independent Director
Dr. Pravin P. Shah, years is an independent Director on the
Board. He has over thirty-four years of professional experience in the areas of
financial consultancy, corporate structuring/restructuring, management
consultancy, taxation, valuation, property matters, accounting, auditing,
company law and FEMA matters etc. He is on the board of many companies
including J. M. Morgan Stanley Private Limited, Adani Exports Limited, Bhansali
Engineering Polymers Limited etc. Since 1980 he is a partner of Pravin P. Shah,
a firm of chartered accountants undertaking specialized services mainly in the
areas of public issues, private funding, foreign collaborations, business
reorganizations, valuation, tax planning etc. From 1975 to 1980 he was director
of Internal Consulting, WUI Inc., New York, a subsidiary of Xerox Corporation
and was involved in providing in-house consulting services in the areas of
business planning, costing, finance, new project evaluation, capital
expenditure planning etc. Dr. Shah is a fellow member of Institute of Chartered
Accountants of India (All India 4th Ranker in the final examination held in May
1969) and
Mr. B.S. Bhesania
Independent Director
B. S. Bhesania, has over forty eight years of professional
experience. He is an Attorney-at-law, High Court,
Mr. S.B. Agarwal
Independent Director
S. B. Agarwal, is an independent Director on the Board. He
has over thirty-nine years of professional experience. For eighteen years from
1982 to 2000 he was Business Head for global textile companies in Aditya Birla
Group having textile units at various locations in
Ms. Prachi Deshpande
Company Secretary
Prachi Deshpande, Assistant Company Secretary is with the
Company since November 1, 2004. In the Company she heads the secretarial and
legal department and is responsible for redressal of investors grievances etc.
Before joining the Company she was working with Rishiroop Group of Companies
and was the designated company secretary of a public limited company of that
group. At the beginning of her career she was associated with an advocate and
was involved in drafting of various legal documents etc. She has graduated in
Commerce and Law from
Mr. A. Arumugham
Director
Mr. A. Arumugham is a Chartered Accountant with over 35 years
of experience in practice. Mr. Arumugham has been associated with various large
corporate houses and has sound knowledge in various activities such as fund
mobilization, mergers and takeovers, legal compliances etc
Mr. Suresh Vishwasrao
Director
Mr. Suresh Vishwasrao, an ex-banker
has over 40 years of professional experience. Mr. Vishwasrao has wide
experience with banking regulations, Foreign Exchange Management Act, loan
syndication(s), capital market activities etc.
SUBSIDIARIES AND
JOINT VENTURE
BRFL Italia
In April, 2008,
the Company has acquired the Brand ‘Guru’ and other retail business of Jam
Session Holding S.r.l (Jam) through BRFL Italia S.r.l. (BRFL Italia), a company
promoted by BRFL Europe B.V, a wholly – owned subsidiary Bombay Rayon Retail
Limited. The holding Company of these Companies is Subject.
• ‘GURU’ is an
established up market Retail Brand with substantial goodwill.
• ‘Guru’ has 15 retail stores/outlets and 9 franchises spread all
over Europe mainly in
Located in
Along with importing
goods for
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 :
The market
survey revealed that the amount of compensation sought by the subject is fair
an
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.
The 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. 45.20 |
|
|
1 |
Rs. 73.07 |
|
Euro |
1 |
Rs. 61.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--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 |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.