MIRA
INFORM REPORT
|
Report Date : |
20.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
HOUSE OF PEARL FASHIONS LIMITED |
|
|
|
|
Registered Office : |
Pearl House, A – 3, Community Center, Nariana industrial Area, Phase –
II, |
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|
Country : |
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|
|
Financials (as on) : |
31.03.2010 |
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|
Date of Incorporation : |
05.07.1989 |
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|
Com. Reg. No.: |
55-36849 |
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Capital
Investment/ Paid-up Capital: |
Rs. 195.003
Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L74899DL1989PLC036849 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
DEL03396B |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACM0175F |
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|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are listed on
Stock Exchange. |
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|
|
|
Line of Business : |
Manufacturer of Readymade Garments for Men and Women. |
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|
|
|
No. of Employees: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 12000000 |
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|
|
|
Status : |
Satisfactory |
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|
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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|
Comments : |
Subject is a well established company having satisfactory track. There
appears some losses being incurred by the company in the year 2009-10.
However, networth appears to be satisfactory. Trade relations are reported as
fair. Business is active. Payments are reported to be usually correct 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 DENIED BY
|
Name : |
Mr. Amit Gupta |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-11-46001000 |
LOCATIONS
|
Registered Office : |
Pearl House, A – 3, Community Center, Nariana industrial Area, Phase –
II, |
|
Tel No.: |
91-11-46001000 |
|
E-Mail : |
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|
Website : |
|
|
|
|
|
Corporate Office/ Plant 1 : |
446, Udyog Vihar, Phase _-V, Gurgaon – 122016, |
|
Tel. No.: |
91-124-4651714/ 4217500 |
|
Fax No.: |
91-124-4651173/ 4651749 |
|
|
|
|
Plant 2: |
751, Pace City II, Sector 37, Khandsa, Gurgaon - 122 004, |
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|
|
|
Plant 3: |
16-17, Udyog Vihar, Phase VI, Khandsa, Gurgaon - 122 004, |
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|
|
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Plant 4: |
D-6/II, Phase II, Zone B, MEPZ-SEZ, Tambaram, Chennai - 600 045,Tamil
Nadu, |
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|
|
|
Plant 5: |
Nor-Pearl Knitwear Limited, Plot # 61-72+85, Comila EPZ, |
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|
|
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Plant 6: |
Norp Knit Industries Limited, North Khilkar, |
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|
|
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Plant 7: |
P.T. Norwest Industry, Tanjung Emas Export, Processing Zone, Blok
A-15-15a, JL Coaster No. 8, |
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|
|
|
Overseas Office : |
Norwest Industries Limited Hong Kong |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Deepak Seth |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pallak Seth |
|
Designation : |
Vice – Chairman |
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|
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|
Name : |
Mr. Pulkit Seth |
|
Designation : |
Managing Director |
|
Date of Birth/ Age: |
30 Years |
|
Qualification : |
Graduate in Management, Studies from |
|
Experience: |
9 Years |
|
Date of Employment : |
01.04.2005 |
|
Previous Employment : |
Norwest Industries Limited, |
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|
|
|
Name : |
Mr. Sanjay Pershad |
|
Designation : |
Non- Executive Independent Director |
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|
|
|
Name : |
Dr. Ashutosh P. Bhupatkar |
|
Designation : |
Non- Executive Independent Director |
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|
|
|
Name : |
Mr. S. B. Mohapatra |
|
Designation : |
Non- Executive Independent Director |
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|
|
|
Name : |
Mr. Chittranjan Dua |
|
Designation : |
Non- Executive Independent Director |
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|
|
|
Name : |
Mr. Rajendra Aneja |
|
Designation : |
Non- Executive Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Sandeep Sabharwal |
|
Designation : |
Company Secretary |
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|
|
|
|
AUDIT COMMITTEE |
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|
|
|
Name : |
Dr. Ashutosh P. Bhupatkar |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Sanjay Pershad |
|
Designation : |
Member Director |
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|
|
|
Name : |
Mr. S. B. Mohanpatra |
|
Designation : |
Member Director |
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|
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|
|
REMUNERATION
COMMITTEE |
|
|
|
|
Name : |
Mr. S. B. Mohapatra |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Rajendra Aneja |
|
Designation : |
Member Director |
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|
|
|
Name : |
Dr. Ashutosh P. Bhupatkar |
|
Designation : |
Member Director |
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|
|
|
|
SHAREHOLDERS
GRIEVANCE AND TRANSFER COMMITTEE |
|
|
|
|
Name : |
Dr. Ashutosh P. Bhupatkar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pulkit Seth |
|
Designation : |
Member Director |
|
|
|
|
Name : |
Mr. S. B. Mohapatra |
|
Designation : |
Member Director |
|
|
|
|
|
FINANCE COMMITTE |
|
|
|
|
Name : |
Mr. S. B. Mohapatra |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Pulkit Seth |
|
Designation : |
Member Director |
|
|
|
|
Name : |
Dr. Ashutosh P. Bhupatkar |
|
Designation : |
Member Director |
|
|
|
|
Name : |
Mr. Atul Gupta |
|
Designation : |
Chief Financial Officer |
|
Date of Birth/Age : |
45 Years |
|
Qualification : |
CA, ICWA and B.Com |
|
Experience : |
21 Years |
|
Date of Employment: |
29.06.2009 |
|
Previous Employment: |
Arcelor Mittal, Kazakhastan, General Manager |
|
|
|
|
Name : |
Mr. M Srivenkatesa |
|
Designation : |
Chief Information Officer |
|
Date of Birth/Age : |
39 Years |
|
Qualification : |
MA, PG, Diploma NIFT |
|
Experience : |
12 Uears |
|
Date of Employment : |
08.05.2009 |
|
Previous Employment: |
TCNS Clothin, COO, |
|
|
|
|
Name : |
|
|
Designation : |
Mr. Rishi Raj Vig |
|
Address : |
Chief Finance Officer |
|
Date of Birth/Age : |
40 Years |
|
Qualification : |
B.Com, ICWA, CPCA (US) |
|
Experience : |
20 Years |
|
Date of Employment: |
27.02.2006 |
|
|
|
|
Name : |
Col. Ramesh Wahi |
|
Designation : |
Group Chief Information Officer (IT) |
|
Date of Birth/Age : |
60 Years |
|
Qualification : |
M.Tech |
|
Experience : |
39 Years |
|
Date of Employment: |
17.08.2006 |
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 |
|
|
|
|
|
|
|
|
30 |
- |
|
|
30 |
- |
|
|
10,377,438 |
53.22 |
|
|
10,377,438 |
53.22 |
|
|
10,377,498 |
53.22 |
|
|
|
|
|
|
2,537,590 |
13.01 |
|
|
2,537,590 |
13.01 |
|
|
2,537,590 |
13.01 |
|
Total shareholding of Promoter and Promoter Group (A) |
12,915,088 |
66.23 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
847,231 |
4.34 |
|
|
119,585 |
0.61 |
|
|
513,332 |
2.63 |
|
|
1,480,148 |
7.59 |
|
|
|
|
|
|
829,693 |
4.25 |
|
|
|
|
|
|
3,344,017 |
17.15 |
|
|
335,049 |
1.72 |
|
|
596,348 |
3.06 |
|
|
160 |
- |
|
|
21,634 |
0.11 |
|
|
325,606 |
1.67 |
|
|
7,970 |
0.04 |
|
|
240,978 |
1.24 |
|
|
5,105,107 |
26.18 |
|
Total Public shareholding (B) |
6,585,255 |
33.77 |
|
Total (A)+(B) |
19,500,343 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
19,500,343 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Readymade Garments for Men and Women. |
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Products : |
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GENERAL INFORMATION
|
Customers : |
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Bankers : |
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Facilities : |
Note: *Term Loan Repayable within one year Rs. 5.337 Millions (Previous year Rs. 5.325
Millions) **Vehicle Loan Repayable within one year Rs. 4.853 Millions (Previous year Rs. 4.617
Millions) Secured against hypothecation of vehicles |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
S. R. Dinodia and Company Chartered Accountant |
|
Address : |
K – 39, |
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|
|
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Subsidiaries : |
Domestic
Overseas
|
|
|
|
|
Associates : |
Domestic
Overseas
|
CAPITAL STRUCTURE
As on 31.03.2009
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
24990000 |
Equity Shares |
Rs. 10 /- each |
Rs. 249.900 Millions |
|
10000 |
4% Cumulative Redeemable Preferences Shares |
Rs. 10/- each |
Rs. 0.100 Million |
|
|
|
|
|
|
|
Total |
|
Rs. 250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
19500343 |
Equity Shares |
Rs. 10 /- each |
Rs. 195.003
Millions |
Note:
Out of which 9329338 Equity Shares were
allotted as fully Bonus Shares by capitalization of accumulated profits and
General Reserves.
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 |
195.003 |
195.003 |
195.003 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2884.217 |
2924.168 |
2835.287 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3079.220 |
3119.171 |
3030.290 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
49.751 |
57.293 |
7.000 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
49.751 |
57.293 |
7.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3128.971 |
3176.464 |
3037.290 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
130.764 |
21.835 |
13.176 |
|
|
Capital work-in-progress |
44.567 |
131.551 |
85.387 |
|
|
|
|
|
|
|
|
INVESTMENT |
1691.144 |
1685.013 |
1957.800 |
|
|
DEFERREX TAX ASSETS |
7.683 |
7.048 |
10.124 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.162 |
|
|
Sundry Debtors |
104.907
|
57.719
|
70.594 |
|
|
Cash & Bank Balances |
46.134
|
350.979
|
455.406 |
|
|
Other Current Assets |
0.000
|
0.000
|
0.000 |
|
|
Loans & Advances |
1180.411
|
966.814
|
507.268 |
|
Total
Current Assets |
1331.452
|
1375.512 |
1033.430 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
37.435
|
39.224
|
|
|
|
Other Current Liabilities |
37.327
|
4.866
|
|
|
|
Provisions |
1.877
|
0.405
|
36.051 |
|
Total
Current Liabilities |
76.639
|
44.495
|
62.627 |
|
|
Net Current Assets |
1254.813
|
1331.017
|
970.803 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3128.971 |
3176.464 |
3037.290 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
448.425 |
228.325 |
151.288 |
|
|
|
Other Income |
111.745 |
202.546 |
149.895 |
|
|
|
TOTAL (A) |
560.170 |
430.871 |
301.183 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Goods Traded |
421.387 |
204.714 |
143.776 |
|
|
|
Manufacturing and Other Expenses |
149.648 |
103.783 |
39.705 |
|
|
|
|
|
|
|
|
|
|
TOTAL (B) |
571.035 |
308.497 |
183.481 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
[10.865] |
122.374 |
117.702 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
8.164 |
1.403 |
0.143 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
[19.029] |
120.971 |
117.559 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
21.216 |
1.957 |
0.431 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
[40.245] |
119.014 |
117.128 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.222 |
27.348 |
10.529 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
[40.467] |
91.666 |
106.599 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
198.524 |
106.859 |
NA |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
158.057 |
198.525 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
433.078 |
215.828 |
3.880 |
|
|
TOTAL EARNINGS |
433.078 |
215.828 |
3.880 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Fabric |
0.000 |
0.429 |
0.000 |
|
|
|
Garments |
421.387 |
182.008 |
0.000 |
|
|
TOTAL IMPORTS |
421.387 |
182.437 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Basic/ Diluted
Earnings Per Share (Rs.) |
[2.08] |
4.70 |
5.47 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Net Sales |
126.010 |
53.300 |
46.600 |
0.000 |
|
Total Expenditure |
127.390 |
88.350 |
64.150 |
13.000 |
|
PBIDT (Excl OI) |
[1.380] |
[35.050] |
[17.550] |
[13.000] |
|
Other Income |
24.890 |
27.860 |
26.460 |
24.780 |
|
Operating Profit |
23.510 |
[7.190] |
8.910 |
11.780 |
|
Interest |
1.410 |
1.400 |
1.350 |
1.330 |
|
Exceptional Items |
0.000 |
0.00 |
0.000 |
0.000 |
|
PBDT |
22.100 |
[8.590] |
7.560 |
10.450 |
|
Depreciation |
6.860 |
9.380 |
9.380 |
9.190 |
|
Profit Before Tax |
15.240 |
[17.970] |
[1.820] |
1.270 |
|
Tax |
2.530 |
[2.110] |
[0.750] |
[57.260] |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
12.710 |
[15.860] |
[1.070] |
58.530 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
[292.380] |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
12.710 |
[15.860] |
[1.070] |
[233.850] |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
[7.22]
|
21.27 |
35.39 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
[8.97]
|
52.12 |
77.42 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
[0.28]
|
8.52 |
11.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
[0.01]
|
0.04 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.04
|
0.03 |
0.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
17.37
|
30.91 |
16.50 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS AND
OPERATIONS
Over the last three years, the company through its subsidiaries and
joint ventures has been able to add more capacities, acquires strategic
companies, set up new divisions, expand into new geographies, strengthen its
design infrastructure, implement ERP and has now reached an enviable position
of “One Stop Shop” destination for its customers. Today, the company through
its subsidiaries and joint ventures offers almost all categories of garments,
manufactured either in its own or outsourced from the most cost effective
locations on either FOB or LDP terms to its customers.
In the industry scenario, where most of the top retailers of the world
are consolidating their vendor base, stand alone vendors are going out of
business and their share are being taken
over by companies which can provide one Stop Shop Solutions. Vendors
that are able to offer value addition in terms of design input, provide
different sourcing options and have the operational and financial resources to
meet retailers increasing requirements are being categorized as their
“Preferred Vendors”. This gives the vendor an edge over the competition. Due to
all its investments over the last couple of years, the company through
subsidiaries has already been categorized as Preferred Vendor by various big
Retailers in US and
Consolidated turnover of the company is Rs.18320.500 Millions, up by
more than 26% in financial year 2009-10. The consolidated profit of the company
is Rs.141.400 Millions compared to profit of Rs.13.200 Millions for last year.
With no expected increase in fixed overheads, the company expects that the new
business initiatives will be start yielding increase in sales and improved
consolidated profit.
Considering the growing demand, the company plans to enhance
manufacturing capacities at Gurgaon, Chennai and
MANAGEMENT DISCUSSION AND ANALYSIS
Subject is multinational, ready to wear apparel Company operating in
three business streams: manufacturing, marketing and distribution and sourcing
of garments through its subsidiaries. House of Pearl also provides total supply
chain solutions to the customers, which include value retailers as well as
higher-end fashion brand retails in the
The Company operates through its subsidiaries, has an integrated
business model with two distinct business streams:-
1. Manufacturing and Merchant Trade
The group has manufacturing facilities in
2. Sourcing Marketing and Distribution (SDM)
SDM business has marketing offices in
They have fabric development centers in
INDUSTRY STRUCTURE and DEVELOPMENT
Indian Textile Industry is one of the leading textile industries in the
world. Though was predominantly unorganized industry even a few years back, but
the scenario started changing after the economic liberalization of Indian
economy in 1991. The opening up of economy gave the much-needed thrust to the
Indian textile industry, which has now successfully become one of the largest
in the world.
Indian textile industry largely depends upon the textile manufacturing
and export. It also plays a major role in the economy of the country.
According to a study conducted by the Confederation of Indian Industry
(CII) and McKinsey and Company,
Factors such as ‘buyers are in town’ and ‘a heavy booking season’ affect
garment exporting businesses in
Indian garment manufacturers and exporters are adept at guessing ‘what’s
in’ and ‘what’s out’, when it comes to garments. New sources of raw materials,
designs and ideas go into the manufacture of readymade garments that help in
increasing sales and maintaining a sense of uniqueness.
Today, around 45% of the total textile exports in
COMPANY PERFORMANCE AND FUTURE OUTLOOK
The future of the garment industry in
OPPORTUNITIES and THREATS
At present,
In today’s market scenario, where most of the top retailers of the world
are consolidating their vendor bases, stand alone vendors are going out of
business and there share is being taken over by companies like HOPFL. Vendors
that are able to offer value addition in terms of design input, provide
different sourcing options and have the operational and financial resources to
meet retailers increasing requirements are being categorized as their
“Preferred Vendors”. This gives the vendor an edge over the competition. Due to
all its investments over the last couple of years, the company through its
subsidiaries has already been categorized as Preferred Vendor by various big
Retailers in US and
The garment industry in
FIXED ASSETS:
- Land –
Leasehold
- Buildings
- Office
Equipments
- Plant and
Machinery
- Vehicle
- Furniture and
Fitting
- Software
WEBSITE DETAILS:
OVERVIEW:
A multinational ready to wear apparel business: They currently operate
in 11 strategic locations and six continents, leveraging the strengths of each
country in creating a strong value for the clients.
They provide global supply chain solutions for the fashion industry: They have
a complete control on the entire value chain from design and development, manufacturing
or sourcing till offering a range of pre retailing services, warehousing and
delivering at the door step on a call off basis.
Teams of designers working across the globe: They have teams of international
designers working in
BOARD OF
DIRECTORS:
Deepak Seth
Chairman
Mr. Deepak Seth, born 1951, a non-resident Indian, is the non-executive
Chairman of the Company. He has a Bachelor of Economics from St. Stephen’s
College,
Pallak Seth
Vice-Chairman
Mr. Pallak Seth, born 1977, a non-resident Indian, is the non-executive
Vice-Chairman of the Company. He has a Bachelor of Economics and International
Business degree from
Pulkit Seth
Managing Director
Mr. Pulkit Seth, born 1980, a resident Indian, is the Managing Director
of the Company. He has a Bachelor of Business Management degree from Leonard N.
Stern School of Business,
Sanjay Pershad
Director
Mr. Sanjay Pershad, born 1965, a resident Indian, is a non-executive
Director of the Company. He has a Bachelor of Commerce degree from
S. B. Mohapatra
Director
Mr. Samar Ballav Mohapatra, born 1944, a resident Indian, is an
independent Director of the Company. He has a Bachelor in Arts degree from
A. P. Bhupatkar
Director
Dr. Ashutosh Prabhudas Bhupatkar, born 1951, a resident Indian, is an
independent Director of the Company. He has a Bachelor in Commerce degree from
R. K. Aneja
Director
Mr. Rajendra Kumar Aneja, born 1950, a resident Indian, is an
independent Director of the Company. He has a Bachelor in Commerce degree from
Chittranjan Dua
Director
Mr. Chittranjan Dua, born 1951, a resident Indian, is an independent
Director of the Company. He has a Bachelor in Arts degree from
MANAGEMENT TEAM:
Anuj Banaik
General Manager,
Ashwini Palaha
Chief Operating Officer,Gurgaon
Mr. Ashwini Palaha, born 1968, is Chief Operating Officer – Knits
Division of Pearl Global. He is responsible for business development, marketing
and overall management of knits business. He has over 15 years of experience in
the garment industry. He has a Bachelor of Commerce degree from
Dr. Mahesh Seth
Group Management Advisor,
Dr. Mahesh Seth, born 1947, a
Carlos M. Coene
Chief Executive,
Pankaj Bhasin
Vice President (Merchandising),Gurgaon
Mr. Pankaj Bhasin, born 20th August 1973, is the Vice-President
(Merchandising) of the Company. He is a Graduate with professional
qualification from Pearl Academy of Fashion,
Paritosh Nath
Chief Operating,
Mr. Paritosh Nath, born 1966, is the Chief Operating Officer of HoP
(U.S.). He is responsible for developing strategic alliances for the group with
multinational retailers in the
Rajesh Vishnu Ajwani
Mr. Rajesh Vishnu Ajwani, born 1962, is the Chief Executive Officer of
PT Norwest and Pearl Global,
Atul Gupta
Chief Finance Officer (Manufacturing), Gurgaon
Mr. Atul Gupta, born in 1965, is Chief Financial Officer (Manufacturing)
of the Company. He is responsible for Finance and Accounts of India (Gurgaon
and Chennai),
Sandeep Malhotra
Chief Executive Officer,
Mr. Sandeep Malhotra, born 1969, is the Chief Executive Officer of
Norwest Industries (HK). He is responsible for overall operations of Norwest
Industries (HK). He has over 12 years of experience in sales and marketing. He
completed “O” level and “A” level courses in 1986 and 1988, respectively. Prior
to joining the Group, he worked as Sales Director of SKD Pacific.
Sandip Bagchi
Business Head
Mr. Sandip Bagchi, born 1956, is the Business Head of Norp Knit,
Bangladesh. He is responsible for business developments, marketing and overall
management of the knits business in
Vineet Mathur
Group Financial Controller,
Sandeep Sabharwal
General Manager and Company Secretary, Gurgaon
Mr. Sandeep Sabharwal, born 1967, is the General Manager and Company
Secretary of the Company. He is a member of Institute of Company Secretaries of
India and a Commerce Graduate from
Sanjay Janghala
Vice President (Operations), Gurgaon
Mr. Sanjay Janghala, born 1973, is Vice President (Operations) of Pearl
Global. He joined the Group in 1997 and is responsible for operation of north
Indian woven business. He has completed his Graduation in Bio Group from
P. S. Suresh
Chief Executive Officer, Chennai
Mr. P.S. Suresh, born 20th May 1968, is the CEO of the Company at
Chennai. He is a Graduate Engineer (Ind. Engg) from IIT, Rorkee and has done
his MBA (Opr. and Fin. Mgt.) from IIM Calcutta. He has over 17 years experience
in the apparel industry. He was CEO of the business division of Arvind Mills,
Ahmedabad and was also CEO of Regency International Clothing, Chennai.
M. Srivenkatesa
Chief Information Technology Officer, Gurgaon
Mr. M. Srivenkatesa, born 8th July 1971, is the Chief Information Technology
Officer of the Company. He is a Post Graduate in E.P.A from D.S.E. and Post
Graduate in Apparel Marketing and Merchandising from NIFT,
PRESS RELEASE
Think fashion!! Think LERROS!!
Lerros bestows fashion with a new statement; opens first store in
Today, LERROS, a premium apparel brand from
Mr. Hartmut Schwenk, Managing Director LERROS, on this occasion said,
"LERROS is a premium and popular brand in
LERROS fashions combine an attractive exterior with a high quality
interior to create the perfectly smart casuals. The flexible mix-n-match
options and the tailored fit are emphasized by fashionable highlights and
unusual details. Its styling is modern, uncomplicated, stylish and avant-garde.
The designs are sporty and light with fashionable notes. The flexible
combination options and the fit are topped off with specific fashion highlights.
Commenting on the joint venture between House of Pearl Fashions Limited
and LERROS, Mr. Deepak Seth, Group Chairman of the House of Pearl Fashion
Limited said "It is really exciting to be associated with a prestigious
brand like LERROS. I am sure with their entry into the Indian market the brand
would attract customers who appreciate the value of a high quality product and
loyal clientele. Their clothes are a perfect fit with the preferred European
styles popular in
LERROS designs for both men and women. The signature of LERROS is
modern, straightforward and confident in its style. Their range in masculine casual
wear and sportswear is distinguished by its reliable degree of fashion as much
as by its authenticity. It is noted for being one of the most successful men's
collections in recent years. The LERROS woman typically goes for fashion that
has a reliable fit and compliments her lifestyle. It has a reliable fit and has
a perfect price-performance ratio. The sporty feminine style combines an
attractive appearance with a fair price, making it the best choice for
consumers.
Disclaimer:
Joint Venture is subject to Regulatory approvals.
About LERROS:
LERROS
Moden GmbH is a German Multinational heqdquartered in
The total turnover of the company is 350 million USD. The current CEO's
of the company are Arun Gujral and Hartmut Schwenk.
Established in 1983, LERROS is considered amongst the premium casual
wear apparel players in
LERROS is currently one of the most successful system providers in
About House Of
House
of Pearl Fashions Limited (HOPFL) is a multinational ready to wear apparel
manufacturing conglomerate. The company also provides supply chain solutions for
the fashion industry globally along with warehousing and distribution networks
in the
HOPFL provide global supply chain solutions for the fashion industry:
They have a complete control on the entire value chain from design and
development, manufacturing or sourcing till offering a range of pre retailing
services, warehousing and delivering at the door step on a call off basis.
HOPFL have teams of international designers working in
HOPFL operates nine modern ready-to-wear apparel manufacturing
facilities, of which five are located in north India, one in south India, two
in Bangladesh and one in Indonesia.
HOPFL's customers include retailers, such as J C Penny, Tesco and
fashion brand retailers, such as GAP, Banana Republic, Next and Esprit
AUDITED
FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31 MARCH 2011
(Rs.
in Millions)
|
|
|
Ended |
Year
Ended |
|
Sl. |
Particulars |
31.03.2011 |
31.03.2011 |
|
No. |
|
(Audited) |
(Audited) |
|
|
|
|
|
|
1 |
a) Net Sales/ Income from Operations |
(0.000) |
225.897 |
|
|
|
|
|
|
|
b) Other Operating Income |
- |
- |
|
|
Total |
(0.000) |
225.897 |
|
2 |
Expenditure |
|
|
|
|
a) (Increase)/Decrease in stock in trade and work in Progress |
|
|
|
|
b) Consumption of raw materials |
- |
- |
|
|
c) Purchase of Traded Goods |
0.000 |
202.331 |
|
|
d) Employees Cost |
9.3374 |
45.971 |
|
|
e) Depreciation |
9.186 |
34.809 |
|
|
f ) Manufacturing Expenses |
0.599 |
5.426 |
|
|
g) Other Expenditure |
3.062 |
39.155 |
|
|
h) Total |
22.184 |
327.692 |
|
3 |
Profit from operations before other income,interest and exceptional
items (1-2) |
(22.184) |
(101.795) |
|
4 |
Other Income |
24.781 |
103.988 |
|
5 |
Profit before interest and exceptional items (3+4) |
2.597 |
2.193 |
|
6 |
Interest |
1.329 |
5.482 |
|
7 |
Profit after interest but before exceptional items (56) |
1.268 |
(3.289) |
|
8 |
Exceptional Items |
- |
- |
|
9 |
Profit(+) /Loss (-) from
Ordinary Activities |
|
|
|
|
before tax (7+) |
1.268 |
(3.289) |
|
|
|
|
|
|
10 |
Tax Expenses |
|
|
|
|
Deferred Tax |
(57.270) |
(57.683) |
|
|
Income Tax |
0.005 |
0.084 |
|
|
MAT Credit |
|
|
|
11 |
Net Profit (+)ILoss (-) from Ordinary
Activities |
|
|
|
|
After tax (9-10) |
58.533 |
54.310 |
|
12 |
Extraordinary Item (net of tax expense Rs. Nil) |
292.383 |
292.383 |
|
13 |
Net Profit(+)I loss(-) for the Period
(11-12) |
(233.850) |
(238.073) |
|
|
|
|
|
|
13 a |
Minority Interest |
- |
|
|
|
|
|
|
|
|
Net Profit(+)I loss(-) after Minority \
interest for the Period (13+13a) |
(233.850) |
(238.073) |
|
|
|
|
|
|
14 |
Paid-up equity share capital |
195.003 |
195.003 |
|
|
(Face value of Rs.10/-each) |
|
|
|
15 |
Reserves excluding Revaluation Reserves as |
|
2646.144 |
|
|
|
|
|
|
|
|
|
|
|
16 |
Earning Per Share (EPS) |
|
|
|
|
a) Basic and diluted EPS before Extraordinary |
|
|
|
|
items. |
|
|
|
|
- Basic |
3.00 |
2.79 |
|
|
- Diluted |
3.00 |
2.79 |
|
|
b) Basic and diluted EPS after Extraordinary |
|
|
|
|
items. |
|
|
|
|
- Basic |
(11.99) |
(12.21) |
|
|
- Diluted |
(11.99) |
(12.21) |
|
17 |
Public shareholding |
|
|
|
|
No.of Shares |
6,585,255 |
6,585,255 |
|
|
Percentage of Shareholding |
33.77 |
33.77 |
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
- Number of shares |
- |
- |
|
|
- Percentage of shares (as a% of the total |
- |
- |
|
|
shareholding of promoter and Promoter Group) |
|
|
|
|
- Percentage of shares (as a% of the total |
- |
- |
|
|
share capital of the Company) |
|
|
|
|
b) Non-encumbered |
|
|
|
|
- Number of Shares |
12915088 |
12915088 |
|
|
- Percentage of shares (as a% of the total shareholding of Promoter
and Promoter Group) |
100.00 |
100.00 |
|
|
- Percentage of shares (as a % of the total share capital of the
Company) |
66.23 |
66.23 |
Notes to Financial
Results
1) Audited Financial Results of the company for the quarter and year ended 31st March 2011 have been reviewed by the Audit Committee and taken on record by the Board of directors at their meeting held on 30th May 2011.
2) During the quarter ended 31st March 2011 No Investor complaints was received. There were not complaints pending at the beginning and end of the Quarter. As such no complaints to be resolved during the quarter.
3) Statement of utilization of issue proceeds as on 31st March 2011.
(Rs. in Millions)
|
|
|
Projected
Utilization |
Actual
Utilization Upto
31st March 2011 |
|
|
Investment in Subsidiary Companies to increase the Group’s production
capacity |
299.000 |
146.584 |
|
|
Investment in Subsidiary Companies for establishment of a Design
Centre and Corporate office in gurgaon |
38.000 |
38.000 |
|
|
Setting up an Integrated information Technology System |
143.000 |
143.000 |
|
|
Pre-Payment of Certain Term Loans Availed by the company and the
subsidiaries |
492.350 |
492.375 |
|
|
Investment in its subsidiary company Multinational Textile Group
Limited for payment of purchase in consideration
to SACB Holding Limited and Pallas Holding Limited as part of the group
restructuring. |
491.700 |
491.729 |
|
|
Setting up a Domestic Branded apparel retail business |
491.700 |
491.729 |
|
|
Acquisition or existing companies of setting up joint venture
companies fro marketing and distributor or wholesale/ brands and supply
business in the appeal, accessories or related segment within or outside
India |
252.000 |
229.846 |
|
|
General Corporate Purpose ## |
857.970 |
490.556 |
|
|
Extended Working Capital and Temporary loans to its subsidiaries as an interim use of funds |
87.7010 |
36.082 |
|
|
Extended Working Capital and Temporary loans to its subsidiaries as an
interim use of funds |
-- |
531.878 |
|
|
Share Issue Expenses |
192.000 |
191.950 |
|
|
Total |
2853.720 |
2792.000 |
|
Unutilised funds have been invested in Bank Fixed Deposits, Debt Mutual
Funds and Inter Corporate Deposits and Rs. 200.000 Millions has been given to
Pearl Global Limited a subsidiary for Repayment of its high interest bearing
working capital loan as interim use of proceeds, the company has also
extended working capital support and Rs. 101.208 Millions to other
subsidiaries as in interim use of funds. ## Being expenses on integrated technology system in excess of
projected utilization. |
|||
4)
During the quarter, the company has disposed off its
entire investment in its subsidiary, Nor Pearl Knitwear Limited, for a total
consideration of USD 2.25 Million, as per Reserve Bank of
5)
Except for
6)
The standalone results for the quarter ended 31st
March 2011 are available at the website of the company, www.houseofpearl.com beside the
websites of Bombay Stock Exchange Limited and National Stock Exchange of India
Limited.
STATEMENT OF
ASSETS AND LIABILITIES
(Rs.
In Millions)
|
Particulars |
(Audited) |
|
As
on 31.03.2011 |
|
|
SOURCES OF FUNDS |
|
|
Shareholder's Funds |
|
|
(a) Share Capital |
195.003 |
|
(b) Reserves and Surplus |
2646.144 |
|
Minority
Interest |
- |
|
Loan Funds |
39.243 |
|
Total |
2880.390 |
|
APPLICATION OF
FUNDS |
|
|
Fixed Assets
(Incl. C IP) |
145.577 |
|
Investments |
1670.963 |
|
Deferred Tax
Asset (Net) |
65.366 |
|
Current Assets,
Loans and Advances |
|
|
(a) Inventories |
0.000 |
|
(b) Sundry Debtors |
32.538 |
|
(c) Cash and Bank Balances |
59.968 |
|
(d) Loans and Advances |
936.764 |
|
Less Current Liabilities and Provisions |
|
|
Current Liabilities |
(28.813) |
|
Provisions |
(1.972) |
|
Net Current Assets |
998.485 |
|
Total |
2880.390 |
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.59 |
|
|
1 |
Rs.71.62 |
|
Euro |
1 |
Rs.62.78 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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.