MIRA INFORM REPORT

 

 

Report Date :

14.07.2011

 

IDENTIFICATION DETAILS

 

Name :

INDO COUNT INDUSTRIES LIMITED

 

 

Registered Office :

Village Alte, Taluka Hatkanangale, Kolhapur – 416109, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

07.11.1988

 

 

Com. Reg. No.:

11-68972

 

 

Capital Investment / Paid-up Capital :

Rs.333.150 Millions

 

 

CIN No.:

[Company Identification No.]

L72200PN1988PLC068972

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

KLPI00337B

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer and Exporter of Cotton Yarn and Knitted Fabrics

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 7000000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appear some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

 

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)

India

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 :

Mr. M. Shanbhag

Designation :

Senior Manager -  Accounts Department

 

 

LOCATIONS

 

Registered Office :

Village Alte, Taluka Hatkanangale, Kolhapur-416 109, Maharashtra, India

E-Mail :

smokashi@indocount.com

info@indocount.com

cottonyarn@indocount.com

mshanbhag@indocount.com

Website :

www.indocount.com

 

 

Spinning and Electronic Units :

D-1, MIDC Industrial Area, Gokul Shirgaon, Kolhapur - 416 234, Maharashtra, India

Tel No. :

91-231-2672291 / 92

Fax No.:

91-231-2672161

 

 

Corporate Office :

301, Arcadia, Nariman Point, Mumbai - 400 021, Maharashtra, India

Tel. No.:

91-22-43419500 / 41511800/ 56306024/ 22856534

Fax No.:

91-22-22823098 / 22041028

 

 

Branches :

Located At:

 

·         Delhi

·         Kolkata

·         Thane

 

 

DIRECTORS

 

AS ON 31.03.2010

 

Name :

Mr. C. P. Ravindranath

Designation :

Director (Exim Bank Nominee)

 

 

Name :

Mr. Dilip J. Thakkar

Designation :

Director

 

 

Name :

Mr. Jagdish Prasad Mohta

Designation :

Director (Upto 30-10-2009)

 

 

Name :

Mr. Kamal Mitra

Designation :

Director

 

 

Name :

Mr. P. N. Shah

Designation :

Director

 

 

Name :

Mr. Prem Malik

Designation :

Director (W.E.F. 30-10-2009)

 

 

Name :

Mr. R. Anand

Designation :

Director

 

 

Name :

Mr. R. G. Kelkar

Designation :

Director (Union Bank Of India Nominee W.E.F. 30-09-2009)

 

 

Name :

Mr. Sushil Kumar Jiwarajka

Designation :

Director

 

 

Name :

Mr. Anil Kumar Jain

Designation :

Chairman And Managing Director

 

 

Name :

Mr. R. N. Gupta

Designation :

Joint Managing Director

 

 

KEY EXECUTIVES

 

Name :

Mr. Shirish S. Sule

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

892,983

2.52

Bodies Corporate

5,904,601

16.64

Sub Total

6,797,584

19.16

 

 

 

(2) Foreign

 

 

Bodies Corporate

12,400,491

34.95

Sub Total

12,400,491

34.95

 

 

 

Total shareholding of Promoter and Promoter Group (A)

19,198,075

54.11

 

 

 

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

507,506

1.43

Financial Institutions / Banks

7,470

0.02

Central Government / State Government(s)

15,120

0.04

Foreign Institutional Investors

2,988,002

8.42

Sub Total

3,518,098

9.92

 

 

 

(2) Non-Institutions

 

 

Bodies Corporate

4,454,038

12.55

Individuals

 

 

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

4,625,809

13.04

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

3,146,673

8.87

 

 

 

Any Others (Specify)

538,941

1.52

Non Resident Indians

257,254

0.73

Clearing Members

3,336

0.01

Hindu Undivided Families

278,351

0.78

Sub Total

12,765,461

35.98

 

 

 

Total Public shareholding (B)

16,283,559

45.89

 

 

 

Total (A)+(B)

35,481,634

100.00

 

 

 

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

--

--

 

 

 

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

35,481,634

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Cotton Yarn and Knitted Fabrics.

 

 

Products :

Item Code No. (ITC Code)

5205

Product Description

Cotton Yarn

Item Code No. (ITC Code)

6002

Product Description

Cotton Knitted Fabrics

Item Code No. (ITC Code)

8528.00

Product Description

Television Receiver

Item Code No. (ITC Code)

2523

Product Description

Cotton Woven and Processed Fabrics

 

 

Exports :

 

Products :

·         Cotton Yarn

·         Hosiery Waxed

Countries :

·         Korea

·         USA

·         Turkey

·         Greece

·         Italy

·         Canada

 

 

Imports :

 

Products :

·         Raw Material

·         Spare Parts

Countries :

·         Germany

·         Finland

·         Switzerland

 

 

Terms :

 

Selling :

L/C, Cash and Credit (30 days)

 

 

Purchasing :

L/C, Cash and Credit (30 days)

 

 

PRODUCTION STATUS (AS ON 31.03.2010)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

 

 

 

 

 

Cotton Yarn

Spindles

64512

59520

6869487

Cotton Knitted Fabrics

Machine Nos.

20

8

2959

Readymade garments

PCS.

2430000

-

-

Cotton woven and processed fabric

Looms million Mtrs

324

128

15.06

Cotton woven and processed fabric

Million Meters

94.10

36.50

16.40

Television receivers (CTV) and assemblies

Nos.

500000

500000

109520

sub-assemblies thereof Speaker units and assemblies and sub-assemblies thereof

Nos.

150000

150000

-

Domestic Air conditioners

Nos.

250000

250000

-

Home Appliances

Nos.

250000

250000

3483

 

 

GENERAL INFORMATION

 

Customers :

·         Wholesalers

·         Retailers

·         End Users

·         OEM’s

 

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

·         Canara Bank, Nariman Point Branch

·         Union Bank of India

·         Bank of India

·         Bank of Baroda

 

 

Facilities :

Secured Loans :

 

31.03.2010

Rs. in Millions

 

 

1) Debentures

10% (previous year 8.50%) 300 - Secured Redeemable

Non convertible debentures of Rs.1.000 million each

 

 

 

299.400

Funded Interest on Debentures

24.971

2) Term Loans

a) Rupee Loans

-From Financial Institutions (a)

 

 

390.026

-From Banks (a)

1237.799

3) Working Capital Term Loans

299.485

4) Demand Term Loan (a)

340.807

5) Funded Interest on Term Loans (a)

43.750

6) Interest accrued and due

7.709

7) Packing Credit Loans

-From Banks (b)

 

848.608

8) Hire Purchase Finance

-From Banks / Others (c)

 

1.747

 

 

Total

3494.302

 

NOTE:

 

(a) Secured inter se on pari- passu basis by way of mortgage of all immovable properties and hypothecation of all moveable properties (save and except stocks and book debts and moveable of electronic division) both present and future subject to prior charges created / to be created in favour of the Company's bankers for working capital requirements. Loans of Rs.2636.238 millions (previous year Rs.2744.276 millions) are additionally secured by personal guarantee of the Managing Director.

 

(b) Secured by hypothecation of Raw materials, Semi finished goods, Finished goods, Stores and Spares, Goods in transit and Book Debts of Spinning and Home textile divisions, and further secured by second charge on Fixed Assets both present and future and personally guaranteed by the Managing Director.

 

(c) Secured against hypothecation of Vehicles acquired under Auto Loan Schemes.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B. K. Shroff and Company

Chartered Accountants

Address :

3/7-B, Asal Ali Road, 1st Floor, Flat No.4, New Delhi-110 002, Delhi, India

Tel. No.:

91-11-23271407/23284825/23284826

Fax No.:

91-11-23270362

E-Mail :

bkshroffdalhi@yahoo.com

bkshroffdalhi@rediff.com

 

 

Holding Company:

Indo Count Industries Limited

 

 

Associates/Subsidiaries :

·         Margo Finance Limited (Formerly Indocount Finance Limited

·         Indocount Securities limited

·         Rini Investment and Finance Private Limited

·         Pranavaditya Spinning Mills limited

·         Skyrise Properties Private limited

·         Unic Consultants

·         Yarntex Exports Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.07.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55000000

Equity shares

Rs.10/- Each

Rs.550.000 millions

5000000

Preference shares

Rs.10/- Each

Rs.50.000 millions

 

 

 

 

 

Total

 

Rs.600.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

35481634

Equity shares

Rs.10/- Each

Rs.354.816 Millions

 

 

 

 

 

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55000000

Equity shares

Rs.10/- Each

Rs.550.000 millions

5000000

Preference shares

Rs.10/- Each

Rs.50.000 millions

 

 

 

 

 

Total

 

Rs.600.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

33314967

Equity shares

Rs.10/- Each

Rs.333.150 Millions

 

 

 

 

 

 

 

 

 

 

 

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

333.150

330.650

300.700

2] Share Application Money

32.500

0.000

0.000

3] Reserves & Surplus

1700.824

1687.186

504.500

4] (Accumulated Losses)

(342.758)

(156.649)

0.000

NETWORTH

1723.716

1861.187

805.200

LOAN FUNDS

 

 

 

1] Secured Loans

3494.302

3379.796

2982.100

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

3494.302

3379.796

2982.100

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

5218.018

5240.983

3787.300

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3889.724

4022.105

2718.200

Capital work-in-progress

6.291

10.791

13.400

 

 

 

 

INVESTMENT

180.855

187.292

76.700

DEFERREX TAX ASSETS

262.074

168.029

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
807.628

436.489

574.400

 

Sundry Debtors
346.208

212.874

373.500

 

Cash & Bank Balances
53.068

181.892

59.100

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances
524.815

377.823

737.800

Total Current Assets
1731.719

1209.078

1744.800

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
659.705

199.111

 

Other Current Liabilities
149.321

112.270

725.300

 

Provisions
43.619

44.931

40.500

Total Current Liabilities
852.645

356.312

765.800

Net Current Assets
879.074

852.766

979.000

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

5218.018

5240.983

3787.300

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

3612.611

2624.378

2680.200

 

 

Other Income

357.359

277.820

239.500

 

 

TOTAL                                     (A)

3969.970

2902.198

2919.700

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material Cost

2551.507

1352.125

 

 

Manufacturing and Other Expenses

1431.790

1138.752

2738.000

 

 

Exceptional items

115.159

677.176

 

 

 

Increase / (Decrease) in Stocks

(302.488)

39.869

 

 

 

TOTAL                                     (B)

3795.968

3207.922

2738.000

 

 

 

 

 

Less

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

174.002

(305.724)

181.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

273.168

214.265

195.000

 

 

 

 

 

 

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

(99.166)

(519.989)

(13.300)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

180.927

185.305

171.300

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(280.093)

(705.294)

(184.600)

 

 

 

 

 

Less

TAX                                                                  (H)

(93.984)

(180.239)

2.900

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

(186.109)

(525.055)

(187.500)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(156.649)

(119.910)

67.600

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

488.316

0.000

 

BALANCE CARRIED TO THE B/S

(342.758)

(156.649)

(119.910)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

2908.917

2250.574

NA

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

0.000

2.927

NA

 

 

Stores & Spares

85.751

5.396

NA

 

 

Raw Materials

156.500

22.890

NA

 

TOTAL IMPORTS

242.251

31.213

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

(5.59)

(17.46)

--

 

Expected Sales (2010-11) : Rs.4000.000 Millions

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2010

30.09.2010

31.12.2010

31.03.2011

 

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

 Sales Turnover

1475.800

1702.100

1896.700

1582.300

 Total Expenditure

1345.700

1576.100

1769.400

1540.900

 PBIDT (Excl OI)

130.100

126.000

127.300

41.400

 Other Income

42.200

71.200

65.800

61.300

 Operating Profit

172.300

197.200

193.100

102.700

 Interest

76.100

79.000

75.100

75.300

 Exceptional Items

0.000

(11.600)

(17.000)

(7.700)

 PBDT

96.200

106.600

101.000

19.700

 Depreciation

43.900

44.100

44.500

44.000

 Profit Before Tax

52.300

62.500

56.500

(24.300)

 Tax

17.600

23.200

19.100

(3.100)

 Reported PAT

34.700

39.300

37.400

(21.300)

Extraordinary Items       

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

34.700

39.300

37.400

(21.300)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(4.69)

(18.09)

(6.32)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(7.75)

(26.87)

(6.89)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(4.98)

(13.48)

(4.14)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(0.16)

(0.37)

(0.23)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.52

2.01

4.65

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.03

3.39

2.28

 

 

LOCAL AGENCY FURTHER INFORMATION

 

COMPANY HISTORY:

 

Incorporated in Nov.'88 as Vishnu Aluminium, a public limited company, Indo Count Industries (ICIL) acquired its present name in Apr.'90. The company was promoted by A K Jain, S Jain and associates. ICIL went public in Nov.'90 to part-finance a 100% EOU (inst. cap. : 26,208 spindles) to manufacture combed yarn at Gokal Shirgaon in Kolhapur, Maharashtra. The company mainly produces 60's and 2/60's combed cotton yarn. In 1994-95, the installed capacity was increased to 32,256 spindles with the commissioning of 6048 spindles. ICIL has been accredited with the ISO 9002 certification. ICIL further added 18,144 spindles and diversified into grey knitted fabric by installing 8 knitting machines. The scheme, being executed as unit number two, is run by a captive diesel power plant. The project was appraised by IFCI at a cost of Rs.536.000 millions Part of this cost was met out of the foreign currency loan of US$ 11 mln sanctioned by IFCI. During 1999-2000, the company has been granted financial assistance under Technical Upgradation Fund Scheme for modernizing the spinning mill and for expansion in knitting capacity. To improve its quality, production and productivity the company has initiated modernisation programme for its plant and machinery under TUF scheme. The installed capacity of Spindleage-Cotton Yarn was increased upto 56448 Nos during 2001-02.

 

 

PERFORMANCE REVIEW

 

Company as a Whole

 

During the year, the Company has earned a total income of Rs.3969.900 millions registering a growth of about 37%

 

TEXTILE DIVISION

 

During the year, this Division has recorded a sales turnover of Rs.3492.400 millions as against Rs.2785.800 millions in the previous year, registering about 25% growth. The operating profit of the Division remained moderate, despite sharp appreciation in the cost of basic inputs like Cotton, Yarn, Power, Labour etc. At this back drop, they are privileged to inform you that during the year, the Company was conferred with the following prestigious awards by an apex Textile Institution in India viz.

 

TEXPROCIL :-

 

1. Silver Trophy for Second highest Exports of other Cotton Made- Dps and

2. Bronze Trophy for Third highest Exports of Bed Linen/ Bed Sheets/Quilts.

 

 

ELECTRONIC/CONSUMER DURABLE GOODS DIVISION

 

During the year Electronic Division has scaled up its operations since August 2009 and has registered a sales turnover of Rs.477.500 millions as against Rs.116.500 millions during the previous year, registering an excellent growth of 312%.

 

 

BUSINESS OUTLOOK

 

TEXTILE DIVISION

 

Stiff competition from China, prevailing in the Export market had made Indian Exports to strive more to keep their presence in the International market. However, Indian Textile Exporter will have a sharp edge over Chinese Market, as China's problems are surging raw material prices, high labour costs. The Global economy is improving, in general, which influenced the markets of USA and Eurpoe, and these markets are on the recovery path. Management hopes that the recessionary trend will not last long and there is promising future for the Indian

 

TEXTILE INDUSTRY

 

Costs of the major inputs have continued to escalate, exerting pressure on the margins, coupled with steep appreciation of Indian Rupee. Of late price realization of Yarn and Made Ups have started improving. Steep rise in the Exports of cotton has caused price spiral in raw cotton and Yarn this year. Considering phenomenal increase in the costs of Raw Material and in order to boost the local sale of Yarn, the Government of India has withdrawn facility of DEPB and Duty Drawback on exports of Cotton Yarn (both for grey and dyed) with effect from 21-04-2010 and 29-04-2010, respectively, which might impact the margins of the Company in the days to come.

 

The Company's Products are well accepted in the Export Market. The Company has become a fully integrated

unit having facilities from Spinning to Finished ready to use consumer goods, which is expected to create substantial value addition. The Company believes that its scale of operations and integration across the Textile

chain will, in future, offer significant advantages in both cost and revenue.

 

The demand for the Company's products, both from domestic and international markets is growing. The management hopes that Marketing initiatives across the world have both de-risked the Company as well as contributed healthy order book, which will enable the Company to carve out a niche market for its products in the coming years. To take advantage of this growing domestic/international markets, the Company is also planning to establish Office/Showroom/warehouses in and outside India, which would help to dent new markets for the Company's Product.

 

To conclude, Indo Count with stand good preparatory dispositions and determination to stay on the forefront of global competition game in reaping benefits of the opportunities.

 

 

ELECTRONIC DIVISION

 

The Consumer durable goods/Electronic Goods industry has witnessed a phenomenal growth over the past few years which can be attributed to the increasing effect of state of the art electronic devices in the market. The introduction of new technology has resulted in lower prices affordable to the masses.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

 

TEXTILE DIVISION

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

The number of Integrated textile units in the country has remained around 200 for a long time. These are in the

Organized sector and engaged in the complete value chain right from spinning to finishing of fabrics. Of this, about 10% is in the made up segment, rest being in the clothing segment.

 

Integrated mills score over others in terms of attracting large buyers as also investors who want to take exposure into and grow with the sector.

 

Integrated mills have their presence in domestic and export markets. Some have strong local brands.

 

State of the art integrated manufacturing facilities are one of the key strengths of the Company. The Company has integrated facilities and controls the complete value chain, having spinning, weaving, and fabric processing, cut/sew and designing facilities. Presently, majority of its production is exported. The Company has plans to enter into domestic market either through its own brand or in partnership with existing channels. The management hopes to initiate this process at appropriate time, by establishing Office/Showroom/Warehouses domestically as well as internationally.

 

 

OPPORTUNITIES AND THREATS

 

Being predominantly export based, the Company's products are exposed to global economic conditions. The joint efforts put in by the government of developed and developing (G20) countries to pull the global economy out of recession have resulted in restoration of consumer and business confidence. Hitherto, US and European countries accounted for about 65% of the global demand for home textile products. The Directors hope that the global economic recession is on ending phase, economic recovery would be faster and Indian textile exports will soon spring back to normal level and further growth.

 

The initiatives taken by the Government of India to help exporters are laudable and need to be continued to remain competitive in the global market.

 

OUTLOOK

 

From the reports available in public domain, it is believed that the global economic recovery is on its way. It is only hoped that the growth momentum gathers steam soon and fast. Indian textile industry is generally competitive and considering the positive business conditions developing, outlook for cotton textiles appears to be good.

 

 

ELECTRONIC DIVISION

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

The consumer electronics industry is occupied by few branded Indian and multi national companies. Though the products are under common VAT system, non uniform tariff structure in different states and fiscal concessions granted by some state governments to local investment, have impact on the product pricing. Competition in this

industry is therefore skewed. In the retail segment, some private brands have been investing to get visibility and have established market share for their products.

 

OUTLOOK

 

The Company has established itself as a reliable electronic manufacturing services unit. Retail revolution has created new markets and the Directors believe there will be adequate opportunities for the Company to exist and expand the business.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

 

(RS IN MILLIONS)

 

Particulars

 

31.03.2010

Amount outstanding in respect of export bills discounted under Export Letters of Credit (Since realized Rs.140.171millions)

264.138

Bank Guarantees

38.979

Claims not acknowledged as debts

1.076

Income tax/Custom Duty demands disputed in appeals

3.069

Corporate guarantee given to a bank for securing financial assistance to subsidiary company.

10.000

 

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 30.06.2010

 

(RS. IN MILLIONS)

 

Particulars

Quarter Ended

Unaudited

30.06.2010

 

 

(a) Net Sales

1475.800

(b) Other Operating Income

42.200

Total Income

1518.000

 

 

Expenditure

 

a) (Increase) / Decrease in stock in trade and work in progress

7.400

b) Purchase of traded goods

-

c) Consumption of raw materials

939.900

d) Employees cost

71.100

e) Depreciation

43.900

f) Other expenditure

230.900

g) Power and Fuel

86.700

Total

182.100

 

 

Earning before interest, Depreciation, Taxation and Amortization

182.100

Interest

76.100

Profit (+)/Loss(-) before depreciation and interest

44.500

Exceptional Items

9.800

Foreign exchange gain/ loss

34.700

Extra ordinary Items

96.200

Net Profit (+) / Loss (-) for the year period

333.100

Cash Profit

-

Paid up equity share capital (Face value of Rs.10/- per share)

 

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

-

Earning per share (EPS)

 

 (a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)

1.34

(a) Basic and diluted EPS before Extraordinary items for the period, for the year to date and for the previous year (not to be annualised)

1.04

 

 

Public shareholding

 

          Number of shares

16268734

          Percentage of shareholding

48.83

 

 

Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

Number of shares

4128828

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

24.22

Percentage of shares (as a % of total share capital of the company)

12.39

 

 

b) Non  Encumbered

 

Number of shares

12917405

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

75.78

Percentage of shares (as a % of total share capital of the company)

38.77

 

 

Segment Reporting

 

Segment Revenue

 

a) Textiles

1261.000

b) consumer Durables Goods/ Electronics

214.800

Net Sales including Export Incentives

1475.800

 

 

Segment Results (Profit before interest and Tax)

127.200

a) Textiles

11.100

b) consumer Durables Goods/ Electronics

138.200

 

 

Capital Employed (Assets- Liabilities)

3058.600

a) Textiles

119.700

b) consumer Durables Goods/ Electronics

3178.200

 

 

NOTES

 

I) The above financial results for the quarter ended 30” June 2010, which have been reviewed by the Statutory Auditors of the Company as per Listing Agreement with the Stock Exchanges and have been approved by the Board of Directors an 14.08.2010

 

2) The Company has outstanding foreign Currency Derivative Contracts in the form of Options for hedging its business related exposure which ore not speculative in nature. The Contracts hove long dated tenor with multiple contingent / uncertain events. As such ascertainment of fair value of these Contracts is not feasible. Banks estimate MTM loss on these Contracts at Rs.202.300 millions as at 30th June. 2010. As 30 is not mandatory. The Company has not provided for the Loss in its Books of Accounts.

 

3) The Company has only two reportable segments i.e. Textiles and Consumer Durable Goods / Electronics.

 

4) On 19-07-2010, the Company has allotted 21,66,667 Equity Shares of Rs.10/- each for cash at o premium of Rs./- per shores aggregating Rs.32.500 millions to promoters’ group Companies, on preferential basis.

 

5) In terms of clause 41 (I) (e) of the Listing Agreement, the Company has exercised on option to publish standalone quarterly financial results.

 

6) Previous period’s figures hove been regrouped wherever necessary.

 

7) Details of Investor Complaints for the Quarter ended 30-06-2010: Beginning. - Nil, Received - 2, Resolved - 2, Pending Nil.

 

 

TRADE REFERENCE

 

·         Lesha Impex Private Limited

·         Mahalaxmi Ispat Private Limited

·         Pro Cottons

 

 

FIXED ASSETS:

 

·         Land - Leasehold

·         Buildings

·         Plant and Machinery

·         Furniture and Fixtures

·         Factory and Office

·         Equipments

·         Vehicles

 

 

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.44.59

UK Pound

1

Rs.71.07

Euro

1

Rs.62.40

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--CREDIT LINES

1~10

3

--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

 

26

 

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.