MIRA
INFORM REPORT
|
Report Date : |
20.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
MANDHANA INDUSTRIES LIMITED |
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Registered
Office : |
Plot No. C-3, MIDC, Tarapur Industrial Area, Boisar-401506, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
25.07.1984 |
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Com. Reg. No.: |
11 - 33553 |
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Capital Investment
/ Paid-up Capital : |
Rs.248.239
Millions |
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CIN No.: [Company Identification
No.] |
L17120MH1984PLC033553 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM20579G |
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PAN No.: [Permanent Account No.] |
AABCM6615M |
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Legal Form : |
Public Limited
Liability Company. The company’s shares are listed on the Stock Exchanges |
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Line of Business
: |
Manufacturers and Exporters of Garments. It is also engaged in processing and trading of fabrics. |
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No. of Employees
: |
More than 4000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
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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 |
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Maximum Credit Limit : |
USD 7734000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and 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 good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION PARTED BY
|
Name : |
Mr. Nayer |
|
Designation : |
Finance Manager |
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Contact No.: |
91-22-43539261 |
|
Date : |
20.07.2011 |
LOCATIONS
|
Registered Office : |
Plot No. C-3, MIDC, Tarapur Industrial Area, Boisar-401506, |
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Tel. No.: |
91-2525-272228/29 |
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Fax No.: |
91-2525-260251 |
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E-Mail : |
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Website : |
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Head Office : |
Unit No. 205/214, |
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Tel. No.: |
91-22-30409191/200 |
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Fax No.: |
91-22-30409216 |
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E-Mail : |
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Corporate Office : |
205/214, |
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Tel. No.: |
91-22-2494 9398 / 2495 2124 / 2494 6350 / 2493 7236 / 30409191 |
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Fax No.: |
91-22-2493 7236 / 2496 3494 / 30409216/ 30409218 |
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E-Mail : |
nayan@mandhana.com/mandhana@giasbm01.vsnl.net.in/ info@mandhana.com
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Factory1: |
Mandhana Weaving
House: A Division of Mandhana Industries Private Limited, E – 33, MIDC,
Tarapur Industrial Area, District Thane – 401 506 |
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Tel. No.: |
91-2525-274988/274989 |
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Fax No.: |
91-2525-274990 |
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E-Mail : |
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Factory2 : |
Mandhana Dyeing: (Process House) A Division of Mandhana Industries Private Limited, E – 25, MIDC,
Tarapur Industrial Area, District Thane-401 506 |
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Tel. No.: |
91-2525-272381 / 272426 / 272428 |
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Fax No.: |
91-2525-272427 |
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E-Mail : |
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Factory 3 : |
Mandhana Weaving
House: (Shirting Division) Plot No.C-2, MIDC, Tarapur, Industrial Area, District Thane- 401 506 |
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E-Mail : |
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Factory 4: |
Mandhana
Industries Private Limited: (Garment
Division) 26/A, Peenya II Phase, Peenya Industrial Area, Near NTTF Bus Stop,
Bangalore – 560058 |
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Tel. No.: |
91-80-28395333 |
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E-Mail : |
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Factory 5: |
Garment Division No. I and II, Ward No. 13, |
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Factory 6: |
Garment Division Unit No. 36/2, Maruti Plaza, Madanayakanahalli Village, Dasanapura,
Hobli, Tumkur Road, Bangalore-562123, Karnataka, India |
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Factory 7: |
B Wing, Ganpati Baug, |
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Branches : |
Located At:
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Mandhana Europe: |
15 Rue de la Banque, Escalier B Entresol – 75002 |
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Tel. No.: |
0033142960224 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. Khurshed M. Thanawalla- |
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Designation : |
Chairman |
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Address : |
Khatau Bunglow, GR. Fl. 6, Manav Mandir Road, Mumbai – 400006, Maharashtra, India. |
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Date of Birth/Age : |
24.12.1942 |
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Date of Appointment : |
04.12.2007 |
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Name : |
Mr. Ghyanendra Nath Bajpai- |
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Designation : |
Chairman |
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Address : |
131, Shaan Apartments, K D Marg, Prabhadevi, Mumbai –
400028, |
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Date of Birth/Age : |
06.07.1942 |
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Date of Appointment : |
16.05.2007 |
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Name : |
Mr. Purshottam.C. Mandhana - |
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Designation : |
Chairman cum Directors |
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Address : |
23, Mount Unique, 62-A, |
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Date of Birth/Age : |
06.07.1955 |
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Date of Appointment : |
01.10.1993 |
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Name : |
Mr. Biharilal C. Mandhana- |
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Designation : |
Executive Director |
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Name : |
Mr. Manish B. Mandhana- |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Sanjay K. Asher- |
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Designation : |
Director |
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Name : |
Mr. Ernst Robin Cornelius |
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Designation : |
Director |
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Name : |
Mr. Ajay Joshi |
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Designation : |
Director |
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Name : |
Mr. Robin Cornelius - |
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Designation : |
Director |
KEY EXECUTIVES
|
Shareholders’/Investors’ Grievances, Share
Allotment and Transfer Committee: |
Mr. Khurshed M.
Thanawalla, Chairman Mr. Ajay Joshi,
Member Mr. Manish B.
Mandhana, Member |
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I.P.O. Committee: |
Mr. Purushottam C.
Mandhana, Chairman Mr. Biharilal C.
Mandhana, Member Mr. Manish B.
Mandhana, Member |
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|
|
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Remuneration Committee: |
Mr. Ghyanendra
Nath Bajpai, Chairman Mr. Khurshed M.
Thanawalla, Member Mr. Ajay Joshi,
Member Mr. Sanjay K.
Asher, Member |
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|
|
|
Name : |
Mr. Vinay Sampat |
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Designation : |
Company Secretary and Head Legal |
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|
Name : |
Mr. Nayer |
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Designation : |
Finance Manager |
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Management Team: |
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|
Name : |
Mr. A. P. Bhatnagar |
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Designation : |
President – Weaving and
Shirting |
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Name : |
Mr. Uday Kulkarni |
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Designation : |
Vice President - Processing |
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Name : |
Mr. Mitesh Shah |
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Designation : |
G.M - Finance |
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Name : |
Mr. Pushpendra Tyagi |
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Designation : |
G.M.- Marketing (Textiles) |
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Name : |
Mr. Gopal Shah |
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Designation : |
G.M. – Marketing (Exports) |
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Name : |
Mr. Prasad R.V.R |
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Designation : |
G.M. – Production (Mumbai) |
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Name : |
Mr. R. K. Nair |
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Designation : |
G.M. – Production ( |
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Name : |
Mr. Jagdish Pamwani |
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Designation : |
G.M. – Marketing (Garments –Domestic) |
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Name : |
Ms. Varsha Singh |
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Designation : |
G.M. – Merchandising |
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Name : |
Mr. Ashok Dhinoja |
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Designation : |
Head – I.T. |
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Name : |
Mr. Rahul Anand |
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Designation : |
Head – Design |
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Name : |
Mr. Nayan Kambli |
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Designation : |
A.G.M. – Finance and
Accounts |
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Name : |
Mr. Arvind Shikharkhane |
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Designation : |
Project Head (Technical) |
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Name : |
Mr. Piyush Vyas |
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Designation : |
Chief Administrative Officer ( |
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Name : |
Ms. Stephanie Fontaine |
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Designation : |
Head – Mandhana Europe |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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12,357,280 |
37.31 |
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|
46,380 |
0.14 |
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8,204,000 |
24.77 |
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|
8,204,000 |
24.77 |
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|
20,607,660 |
62.21 |
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Total shareholding of Promoter and Promoter Group (A) |
20,607,660 |
62.21 |
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(B) Public Shareholding |
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|
775,000 |
2.34 |
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2,173,913 |
6.56 |
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2,948,913 |
8.90 |
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|
5,270,567 |
15.91 |
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|
648,459 |
1.96 |
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|
3,220,509 |
9.72 |
|
|
427,805 |
1.29 |
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|
4,430 |
0.01 |
|
|
363,375 |
1.10 |
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|
60,000 |
0.18 |
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|
9,567,340 |
28.88 |
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Total Public shareholding (B) |
12,516,253 |
37.79 |
|
Total (A)+(B) |
33,123,913 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Manufacturers and Exporters of Garments. It is also engaged in processing and trading of fabrics. |
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Products : |
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Exports : |
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Products : |
Garments |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit (Days depends on party) |
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Yarn Dyeing |
Kgs. |
3000.00 |
2446.23 |
|
Grey Cloth |
Mtrs. |
18000.00 |
14509.55 |
|
Finished Cloth (Fabric Processing) |
Mtrs. |
51600.00 |
20732.39** |
|
Garment |
Nos. |
3600.00 |
3065.68* |
Note:
- * Actual production includes in-house production and production by job
workers.
- ** Fabric processing includes in-house processing and process on job
works.
- *** Installed capacity includes capacities for newly commenced plant
at Tarapur (CDR Division). Actual production is for 10 days only.
GENERAL INFORMATION
|
Customers : |
Wholesalers, Retailers and End Users |
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No. of Employees : |
More than 4000 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Vishal H. Shah and Associates Chartered Accountant |
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Address : |
L.B.S. Marg, Opposite Shreyas Cinema, Ghatkopar (West), Mumbai, |
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Solicitors: |
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|
Name : |
Crawford Bayley and Company |
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Associates/Subsidiaries : |
Golden Weaving House |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39990000 |
Equity Shares |
Rs.10/- each |
Rs.399.900 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
24823913 |
Equity Shares |
Rs.10/- each |
Rs.248.239
Millions |
Note:
- Out of above 1,13,25,000 Share are issued as Bonus Share @1:1
- 1,13,25,000 Equity Shares of Rs. 10/- each fully paid)
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 |
248.239 |
113.250 |
113.300 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1685.166 |
1221.054 |
884.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1933.405 |
1334.304 |
998.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3819.861 |
3053.489 |
2146.100 |
|
|
2] Unsecured Loans |
322.392 |
128.164 |
130.100 |
|
|
TOTAL BORROWING |
4142.253 |
3181.653 |
2276.200 |
|
|
DEFERRED TAX LIABILITIES |
496.698 |
361.613 |
233.100 |
|
|
|
|
|
|
|
|
TOTAL |
6572.356 |
4877.570 |
3507.300 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3650.676 |
3196.414 |
2127.900 |
|
|
Capital work-in-progress |
27.713 |
0.000 |
32.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.005 |
0.005 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1837.492
|
1372.606 |
903.600 |
|
|
Sundry Debtors |
945.190
|
407.809 |
314.700 |
|
|
Cash & Bank Balances |
18.977
|
55.930 |
21.500 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
572.076
|
466.026 |
541.500 |
|
Total
Current Assets |
3373.735
|
2302.371 |
1781.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
203.625
|
387.074 |
|
|
|
Other Current Liabilities |
202.614
|
202.409 |
342.900 |
|
|
Provisions |
73.534
|
31.737 |
91.300 |
|
Total
Current Liabilities |
479.773
|
621.220 |
434.200 |
|
|
Net Current Assets |
2893.962
|
1681.151 |
1347.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6572.356 |
4877.570 |
3507.300 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6252.164 |
4632.517 |
4069.400 |
|
|
|
Other Income |
(152.824) |
(32.453) |
53.800 |
|
|
|
TOTAL (A) |
6099.340 |
4600.064 |
4123.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed and Cost of Goods Traded |
4396.378 |
3031.218 |
|
|
|
|
Manufacturing and Others Expenses |
385.143 |
350.717 |
3345.700 |
|
|
|
Employment Cost |
341.252 |
287.272 |
|
|
|
|
Administrative and Other Expenses |
225.364 |
206.047 |
|
|
|
|
Increase in Stocks |
(354.568) |
(122.307) |
|
|
|
|
TOTAL (B) |
4993.569 |
3752.947 |
3345.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1105.771 |
847.117 |
777.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
267.195 |
175.714 |
145.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
838.576 |
671.403 |
632.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
172.576 |
110.954 |
91.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
666.000 |
560.449 |
540.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
231.279 |
194.944 |
187.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
434.721 |
365.505 |
353.000 |
|
|
|
|
|
|
|
|
|
Less |
INCOME TAX FOR
EARLIER YEAR |
0.713 |
(0.137) |
NA |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
983.474 |
691.981 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
40.000 |
45.000 |
|
|
|
|
Dividend Paid |
49.667 |
24.915 |
NA |
|
|
|
Corporate Dividend Tax Paid |
8.441 |
4.234 |
|
|
|
BALANCE CARRIED
TO THE B/S |
1319.374 |
983.474 |
NA |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1111.021 |
1246.987 |
NA |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
337.740 |
595.625 |
NA |
|
|
|
Auxiliary Material |
27.661 |
32.869 |
NA |
|
|
TOTAL IMPORTS |
365.401 |
628.494 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.24 |
16.14 |
30.79 |
|
|
Particulars |
|
|
31.03.2011 |
|
Sales Turnover (Approximately) |
|
|
8380.000 |
The above information has been parted by Mr. Nayer.
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 |
1438.230 |
1848.870 |
2150.890 |
2944.940 |
|
Total Expenditure |
1103.970 |
1522.540 |
1774.880 |
2507.700 |
|
PBIDT (Excl OI) |
334.260 |
326.330 |
376.010 |
437.240 |
|
Other Income |
(15.570) |
43.770 |
47.910 |
(59.260) |
|
Operating Profit |
318.690 |
370.100 |
423.920 |
377.980 |
|
Interest |
75.770 |
74.580 |
75.880 |
77.700 |
|
PBDT |
242.920 |
295.520 |
348.040 |
300.280 |
|
Depreciation |
49.000 |
47.960 |
49.410 |
46.410 |
|
Profit Before Tax |
193.930 |
247.560 |
298.640 |
253.870 |
|
Tax |
66.370 |
81.220 |
99.660 |
79.190 |
|
Profit After Tax |
127.550 |
166.340 |
198.970 |
174.680 |
|
Net Profit |
127.550 |
166.340 |
198.970 |
174.680 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
7.13
|
7.94 |
8.56 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.65
|
12.10 |
13.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.48
|
10.19 |
13.83 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.34
|
0.42 |
0.54 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.39
|
2.85 |
2.71 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
7.03
|
3.71 |
4.10 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS REVIEW
The Company achieved a total turnover of Rs.6099.340
Millions for the year ended 31st March, 2010 as against Rs.4600.064 Millions in
the previous year. The Company has earned a net profit of Rs.434.721 Millions
versus Rs.365.505 Millions in the previous year. This represents a growth of
32.59% in turnover and 18.93% in terms of net profit.
MANAGEMENT DISCUSSION
AND ANALYSIS
1.
ECONOMIC OVERVIEW
Multi-speed revival was the buzzword for 2009-10 - slow
growth in OECD countries and high growth in
Strong growth drivers still exist that will further propel
the economy in the coming years. These include rising per capita income, rapid
urbanisation, strong domestic demand as well as a conducive political climate.
The country’s demographics too are extremely favourable with 70% of the
population being below 35 years of age. All this bodes well for the Indian
economy in general and the textile and garments industry in particular.
2.
INDUSTRY OVERVIEW
The textiles and apparel industry can be broadly segmented
as-
- Yarn and
fibre (including natural and manmade fibre and yarn).
- Processed
fabrics (including woollen textiles, silk textiles, jute textiles, cotton
textiles and technical textiles), readymade garments and apparel.
The Indian textile industry contributes about 14% to
industrial production, 4% to the country’s gross domestic product (USD 51.36
billion) and 17% to the country’s export earnings, according to the Annual
Report 2009-10 of the Ministry of Textiles.
It provides direct employment to over 35 million people and
is the second largest provider of employment after agriculture.
According to the Ministry of Textiles, the cumulative
production of cloth during 2009- 10 has increased by 8.3% as compared to the
corresponding period of the previous year. There has been a surge in textile
sourcing from
Thus, the total textile exports
have increased to USD 18.6 billion during 2009-10, from USD 17.7 billion during
the corresponding period of the previous year, registering an increase of 4.95%
in rupee terms. Further, the share of textile exports in total exports has
increased to 12.36% during April 2009-January 2010, according to the Ministry
of Textiles.
As per the Index of Industrial
Production (IIP) data released by the Central Statistical Organisation (CSO),
cotton textiles has registered a growth of 5.5% during 2009- 10; wool, silk and
man-made fibre textiles have registered a growth of 8.2%, while textile
products including wearing apparel have registered a growth of 8.5%.
According to the Ministry of
Textiles, investment under the Technology Upgradation Fund Schemes (TUFS) has
been increasing steadily. During the year 2009-10, 1,896 applications have been
sanctioned at a project cost of USD 5.23 billion. The cumulative progress as on
December 31, 2009, includes 27,477 applications sanctioned, which has triggered
investment of USD 45.5 billion and amount sanctioned under TUFS is USD 18.9
billion of which USD 16.4 billion has been disbursed so far till the end of
April, 2010.
Moreover, in May 2010, the
Ministry of Textiles informed a parliamentary panel that it proposes to
allocate USD 785.2 million for the modernisation of the textile industry.
The Scheme for Integrated Textile
Park (SITP) was approved in July 2005 to facilitate setting up of textiles
parks with world class infrastructure facilities. The scheme was introduced to
neutralise the weakness of fragmentation in the various sub-segments of the
textile value chain and the unavailability of quality infrastructure. 40
textiles park projects have been sanctioned under the SITP. According to the
Minister of State for Textiles, under the SITP, a cumulative expenditure of USD
204.3 million has been incurred against allocation of USD 220.7 million in the
last three years. The Ministry of Textiles has undertaken the initiative to
establish institutes in the Private Partnership Projects (PPP) mode to encourage
participation from the private sector for the development of the industry.
A Foreign Direct Investment (FDI)
cell has been set up in the economic division of the Ministry of Textiles to
attract FDI in the textile sector. The Government allows 100% FDI through the
automatic route. The textiles industry has also attracted FDI worth USD 817.26
million between April 2000 and March 2010, according to data
released by the Department of
Industrial Policy and Promotion. According to the Minister
for Textiles, around USD 5.35 billion of foreign investment is expected to be
made in
In the Union Budget 2010-11 presented in February 2010, the
Finance Minister made the following announcements to benefit the textile
industry:
- The Central
plan outlay for the industry has been enhanced to USD 1.03 billion. Of
this USD 521.4 million is for TUFS, USD 76 million for SITP, USD 80.2
million for handlooms, USD 69.3 million for handicrafts and USD 98.4
million for sericulture.
- Allocation
for textiles and jute industry is USD 713.4 million.
- The total
allocation for village and small enterprises sector which include
handicrafts and handlooms is USD 210.3 million.
- USD 31.5
million has been provided for development of mega clusters in handlooms,
handicrafts and power loom sectors.
- Customs duty
at 4% for import of readymade garments for retail sales has been
withdrawn.
- The micro
small medium enterprises in textiles sector have been given full CENVAT
credit on capital goods in one instalment in the year of receipt of such
goods and the facility of payment of excise duty in quarterly basis.
3.
BUSINESS OVERVIEW
Incorporated in 1984, Mandhana Industries Limited (Mandhana)
is a vertically integrated, muti-divisional textile and garments company spread
over several geographical locations. The operations and facilities enable the
Company to manufacture a wide variety of value added fabrics and garments
through integrated operations comprising of dyeing of yarns and fabrics,
weaving operations for fabrics, processing solutions for fabrics and garments,
garment manufacturing, sampling and designing for fabrics and garments.
The Company has two main divisions-
(i)
Textile Division- There are four textile manufacturing facilities at MIDC
Tarapur which comprise of yarn dyeing, weaving and fabric processing,
contributing 79.05% of the total revenues in 2009-10. The state-of-the-art
infrastructure offers complete integration from yarn dyeing to fabric
processing, that too at a single location of Tarapur,
As on March 31, 2010, the Company operates 183 weaving looms
with a capacity of 180 Lacs meters p.a of
griege fabric. The processing capacity of finished fabric is 516 Lacs meters
p.a and the yarn dyeing capacity is 30 Lacs kg p.a.
The major clients for the textile
division are Aditya Birla Nuvo, (manufacturers of brands like Louis Philippe,
Van Heusen, Peter England, Allen Solly), Pantaloon Retail, ITC (manufacturer of
brand Wills LifeStyle), Woodland, Liliput, Blackberry, Indian Terrain Clothing,
Colorplus Fashion, PJL Clothing India Limited (manufacturers of the brand Pepe
in
(ii) Garment Division –
This division derives revenue from sale of readymade garments, charges on
sample pieces sent to customers on account of exports of garments and export
incentives such as duty drawback. While the garment sales contribute 20.71% of
the total revenues for 2009-10, 94.23 % of the total revenues of this division
were derived from export sales. The Company has four garments unit at
As on March 31, 2010, this
division had 1,150 sewing machines and an overall production capacity of 36
Lacs pieces p.a. The client base constitutes
of almost 100 customers, such as Tommy Hilfiger, Charles Vogele, FCUK, RIP
CURL, All Saints, Pepe Jeans, Cloin’s and Newyorker. Currently in the domestic
markets, the Company supplies garment products to Pantaloon, Lee Cooper, Aditya
Birla Nuvo, Shoppers Stop, PJL Clothing India Limited (Pepe), and Wills
Lifestyle and others.
4. FUTURE OUTLOOK
A
report titled ‘India 2020: Seeing, Beyond’, published by a reputed domestic
broking major in March 2010, stated that India’s GDP is set to quadruple over
the next ten years and the country is likely to become an over USD 4 trillion
economy by 2020. Thus exponential growth is expected across all sectors
including textiles and apparels.
With
consumerism and disposable income on the incline, the retail sector has
witnessed rapid growth in the past decade. Several international retailers are
also focussing on
For
this the Company has outlined several sound strategies for the future. The
Company will continue to improve upon its operational efficiencies by
identifying separate cost centres so as to monitor each of the major costs. Raw
material prices will be controlled through bulk purchases and negotiations with
suppliers. Emphasis will be laid to control consumption and wastage through
effective supervision of the shop floor.
Another
important aspect in the future is the expansion of the geographical reach. The
Company will continue to expand the geographical reach by exploring
opportunities in other nations where value added textile products can be
supplied. At the same time, tap domestic opportunities by getting
sub-geographic penetration and product/market diversification.
One of
the Company’s main strength is its apparel design and product development. The
Company will therefore continue to invest in the development of new designs and
samples for fabrics and garments supported by in-house design studio cum
sampling unit. In order to do this, the Company will continue to upgrade the
design studios both in terms of human resources and technology. The Company is
also looking at tapping the hi-end readymade garments segment which will help
to maintain higher sales realisation for the final products.
The
Company intends to take the garment business in the overseas market. To achieve
this goal, the Company will enhance the garment manufacturing capacity from the
current 36 Lacs pieces p.a to 83 Lacs pieces p.a. Mandhana has already
diversified into women’s wear in a planned manner and will continue to focus on
this strategy.
As the
economy begins to play out the
AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED 31ST MARCH, 2011
(Rs. in Millions)
|
Particulars |
31.03.2011 Quarter Ended (Unaudited) |
31.03.2011 Year Ended (Audited) |
|
Income |
|
|
|
a) Net Sales / Income from Operations |
2944.939 |
8382.928 |
|
b) Other Operating Income |
0.000 |
0.000 |
|
Total Operating Income |
2944.939 |
8382.928 |
|
Expenditure |
|
|
|
(a) Consumption of Raw Materials |
3068.431 |
6600.049 |
|
(b) (Increase)/decrease in Stock in Trade |
(915.089) |
(853.788) |
|
(c) Manufacture Expenses |
172.994 |
492.000 |
|
(d) Employees Cost |
116.635 |
405.121 |
|
(e) Depreciation |
46.406 |
192.772 |
|
(f) Other Expenditure |
64.739 |
265.716 |
|
Total Expenditure |
2554.116 |
7101.870 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
390.823 |
1281.058 |
|
Other Income |
(59.255) |
16.853 |
|
Profit/(Loss) before Interest and Exceptional items |
331.568 |
1297.911 |
|
Interest |
77.700 |
303.923 |
|
Profit / (Loss) after interest before Exceptional items |
253.868 |
993.988 |
|
Exceptional Items |
0.000 |
0.000 |
|
Profit / (Loss) From
Ordinary activities before Tax |
253.868 |
993.988 |
|
Tax Expenses |
79.191 |
326.447 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
174.677 |
667.541 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit/(Loss) for the period |
174.677 |
667.541 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
331.239 |
331.239 |
|
Reserves (Excluding Revaluation Reserves) |
3189.379 |
3189.379 |
|
Earning Per Share
(EPS) |
|
|
|
Basic EPS Before and after Extraordinary Items |
5.27 |
20.74 |
|
Diluted EPS Before and after Extraordinary Items |
5.27 |
20.74 |
|
Public Share Holding |
|
|
|
- Number of Shares |
12516253 |
12516253 |
|
- Percentage of shareholding |
37.79% |
37.79% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
-- |
-- |
|
- Percentage of share (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 |
20607660 |
20607660 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100.00% |
100.00% |
|
- Percentage of Share (as a % of the total share capital of the company) |
62.21% |
62.21% |
SEGMENT
– WISE REVENUE, RESULT AND CAPITAL EMPLOYED
(Rs.
in Millions)
|
Particulars |
31.03.2011 Quarter Ended (Unaudited) |
31.03.2011 Year Ended (Audited) |
|
1. Segment
Revenue |
|
|
|
(a) Textiles |
2610.582 |
7234.100 |
|
(b) Garment |
520.081 |
1456.990 |
|
(c) Other |
0.000 |
0.000 |
|
Total |
3130.663 |
8691.090 |
|
Less : Inter-segment Revenue |
185.725 |
308.162 |
|
Total Revenue |
2944.938 |
8382.928 |
|
|
|
|
|
2. Segment
Profit / (Loss) Before Tax and Interest |
|
|
|
(a) Textiles |
273.045 |
930.580 |
|
(b) Garment |
117.778 |
350.478 |
|
(c) Other |
0.000 |
0.000 |
|
Total |
390.823 |
1281.058 |
|
Less : Interest |
77.700 |
303.923 |
|
Add : Unallocable Income |
(59.255) |
16.853 |
|
Profit Before
Tax |
253.868 |
993.988 |
|
|
|
|
|
3. Capital
Employed |
|
|
|
(a) Textiles |
6303.690 |
6303.690 |
|
(b) Garment |
941.690 |
941.690 |
|
Total |
7245.380 |
7245.380 |
STATEMENT
OF ASSETS AND LIABILITIES AS ON 31ST MARCH, 2011
(Rs.
in Millions)
|
Particulars |
31.03.2011 Year Ended (Audited) |
|
1. Shareholder’s Funds |
|
|
a) Capital |
331.239 |
|
b) Reserves and Surplus |
3189.379 |
|
2. Loan Funds |
5586.042 |
|
3. Deferred Tax Liability (Net) |
577.429 |
|
Total |
9684.089 |
|
4. Fixed Assets and CWIP |
4975.254 |
|
5. Investments # |
240.192 |
|
6. Current Assets, Loans and Advances |
|
|
a) Inventories |
2690.691 |
|
b) Sundry Debtors |
1565.189 |
|
c) Cash and Bank Balances |
183.632 |
|
d) Loans and Advances |
698.820 |
|
7. Less : Current Liabilities and Provisions |
|
|
a) Current Liabilities |
567.968 |
|
b) Provisions |
101.721 |
|
Net Current Assets |
4468.643 |
|
Total |
9684.089 |
Notes :
- The
above financial results have been reviewed by the Audit Committee and
approved by the Board of Directors at its meeting held on 24th May, 2011.
- The
Board of Directors has recommended dividend @ Rs. 2 per Equity share on
par value of Rs. 10 per Equity share for the financial year ended on 31st
March, 2011, subject to Shareholders' approval in the ensuing Annual
General Meeting.
- Details
of utilisation of funds out of proceeds of an issue as on 31st March, 2011
are stated below:
(Rs. in Millions)
|
Sr. No. |
Objects of Issue |
Estimated Cost as per prospectus* |
Utilisation of Issue proceeds |
|
1 |
Setting up of garment manufacturing facility at MIDC,
Tarapur Maharashtra |
690.940 |
272.104 |
|
2 |
Expansion of Yarn Dyeing and Weaving Facility at C-2,
MIDC, Tarapur, Boisar, Taluka Palghar, Thane in Maharashtra state. |
1027.946 |
523.379 |
|
3 |
Margin Money for Working Capital |
355.000 |
20.136 |
|
4 |
Issue Related Expenses |
107.256 |
107.256 |
|
TOTAL |
2181.142 |
922.875 |
|
|
Add : Unutilised Issue Proceeds parked in - |
|
||
|
- Investment in Short Term Financial Instrument |
57.580 |
||
|
- Cash credit accounts held with Banks |
98.545 |
||
|
TOTAL ISSUE PROCEEDS |
1079.000 |
||
* The Total Cost of objects are proposed to met through
following means of finance.
|
Issue Proceeds |
1079.000 |
|
Term Loans under TUFS from Banks |
1038.000 |
|
Internal Accruals |
64.142 |
|
TOTAL |
2181.142 |
- Shirting
Division (Phase 2) operations has started commercial production from 22nd
March, 2011.
- No
Investor grievances were received during the quarter. No Investor
grievances were outstanding at the beginning and end of the quarter.
- Previous
period figures have been regrouped / rearranged, wherever necessary to
make comparable.
TRADE REFERENCES:
- Siyaram India
Limited
FIXED ASSETS :
- Residential
Building
- Plant and
Machinery
- Factory
Equipment
- Air
Conditioner
- Furniture and
Fixtures
- Motor Car and
Bikes
- Office
Equipments
- Electrical
Installation
- Computer
Accessories
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.59 |
|
|
1 |
Rs.71.62 |
|
Euro |
1 |
Rs.62.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.