MIRA
INFORM REPORT
|
Report Date : |
22.07.2011 |
IDENTIFICATION DETAILS
|
Name : |
|
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Registered Office : |
B2, 5th Floor, Marathon Next Gen, Off, G. K. Marg, Worli,
Lower Parel (West), Mumbai – 400013, Maharashtra |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
28.09.1990 |
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Com. Reg. No.: |
11-058361 |
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Paid-up Capital : |
Rs.3128.967 Millions |
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CIN No.: [Company
Identification No.] |
L17120MH1990PLC058361 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMS17736F |
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PAN No.: [Permanent
Account No.] |
AAACS0767K |
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Legal Form : |
A Public Limited Liability
Company. Company's Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturing and Selling of
cotton woven and blended fabrics. |
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No. of Employees : |
4000 (approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 43000000 |
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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. The
company is doing well. Trade relations are reported as fair. Business is
active. Payments are reported to be 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) |
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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 |
LOCATIONS
|
Registered Office/Corporate Office : |
B2, 5th Floor, Marathon Next Gen, Off, G. K. Marg, Worli,
Lower Parel (West), Mumbai – 400013, Maharashtra, India |
|
Tel. No.: |
91-22-24824500/2493018/24965700 |
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Fax No.: |
91-22-24931685 |
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E-Mail : |
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Website : |
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Factory : |
Menswear
and Home Textiles Complex 3B, Industrial Area No. 2, Worsted Fabrics Complex Thandavapura, Nanjangud Taluka,
Mysore District, Karnataka. Spinning
and Weaving Complex Chamunda Standard Mills, Balgarh,
Dewas, Madhya Pradesh. Total
Wardrobe Solutions No. 121/52, Hosahalli Gollarahii,
High
Value Fine Cotton (HVFC) and Home Textiles Jhagadia Industrial Estate, GIDC, Ankleshwar, Hartmarx Corporation 1680, Hickey Freeman Coppley Corporation 56, Marling and Evans Limited Leggiuno SPA Via Dante Alighieri, 1, 21038 Leggiuno (VA) - |
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Administrative Office : |
Sr. No. 90/H. No. 5, Inga Complex, Mahakali
Caves Road, Andheri (East), Mumbai – 400093, Maharashtra, India |
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Tel. No.: |
91-22-28250797 |
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Fax No.: |
91-22-28207578/28207577 |
DIRECTORS
As On 31.03.2010
|
Name : |
Dr. A. C. Shah |
|
Designation : |
Chairman |
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Date of Birth/Age : |
16.10.1932 |
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Qualification : |
M.A.PH.D. Economics |
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Date of Appointment : |
14.11.1994 |
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Directorships
held in other Public Companies (excluding foreign Companies) : |
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Memberships
/ Chairmanships of committees of other public companies (includes only Audit and
Shareholders / Investors Grievance Committee) : |
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Name : |
Mr. Nitin S. Kasliwal |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. Anil Channa |
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Designation : |
Deputy Managing
Director |
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Name : |
Mr. A. K. Choudhary |
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Designation : |
Director
(Nominee of lFCI) |
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Name : |
Mr. M. H. Kulkarni |
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Designation : |
Director
(Nominee of lDBI) |
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Name : |
Mr. Vijay Kalantri |
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Designation : |
Director |
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Name : |
Mrs. Jyoti N.
Kasliwal |
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Designation : |
Director |
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Name : |
Mr. Martin
Henry |
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Designation : |
Director |
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Date of Birth/Age : |
20.06.1933 |
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Qualification : |
MA (Oxon) |
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Date of Appointment : |
24.02.2005 |
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Name : |
Mr. Dara D.
Avari |
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Designation : |
Director |
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Date of Birth/Age : |
21.10.1934 |
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Qualification : |
B.Sc. , LLB |
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Date of Appointment : |
27.03.1997 |
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Directorships held in other Public Companies (excluding foreign
Companies) : |
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Memberships / Chairmanships of committees of other public companies
(includes only Audit and Shareholders / Investors Grievance Committee) : |
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Name : |
Mr. Col. S. K. Raje |
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Designation : |
Director |
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Name : |
Mr. Govind Mirchandani |
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Designation : |
Executive Director |
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Name : |
Mr. Anish Modi |
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Designation : |
Director (Nominee of |
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Date of Birth/Age : |
21.03.1966 |
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Qualification : |
Masters in Finance and Economics |
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Date of Appointment : |
27.06.2007 |
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Directorships held in other Public Companies (excluding foreign
Companies) : |
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Memberships / Chairmanships of committees of other public companies
(includes only Audit and Shareholders / Investors Grievance Committee) : |
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Name : |
Mr. Denys Firth |
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Designation : |
Director (Nominee of India Debt Management
Private Limited) |
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Date of Birth/Age : |
26.05.1951 |
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Qualification : |
BA in Physics (Oxon) |
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Date of Appointment : |
09.10.2007 |
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Directorships held in other Public Companies (excluding foreign
Companies) : |
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KEY EXECUTIVES
|
Name : |
Mr. L. N. Somani |
|
Designation : |
Adviser |
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|
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|
Name : |
Mr. Nimiesh S
Shah |
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Designation : |
Company
Secretary and Compliance Officer |
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Name : |
Little and
Company |
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Designation : |
Solicitors |
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 |
|
|
|
|
|
|
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|
3,033,113 |
1.06 |
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|
127,255,168 |
44.65 |
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|
130,288,281 |
45.72 |
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|
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Total shareholding of Promoter and Promoter Group (A) |
130,288,281 |
45.72 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,884,098 |
0.66 |
|
|
31,790 |
0.01 |
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|
94,838,743 |
33.28 |
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|
260,842 |
0.09 |
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|
260,842 |
0.09 |
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|
97,015,473 |
34.04 |
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|
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|
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|
28,563,821 |
10.02 |
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|
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|
10,837,365 |
3.80 |
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|
14,781,036 |
5.19 |
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3,492,401 |
1.23 |
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|
563,789 |
0.20 |
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|
2,928,612 |
1.03 |
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|
57,674,623 |
20.24 |
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Total Public shareholding (B) |
154,690,096 |
54.28 |
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Total (A)+(B) |
284,978,377 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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|
- |
- |
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|
- |
- |
|
Total (A)+(B)+(C) |
284,978,377 |
- |
(1) Indian
Individuals / Hindu Undivided Family
NRI CompanyBUSINESS DETAILS
|
Line of Business : |
Manufacturing and Selling of
cotton woven and blended fabrics |
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Products : |
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GENERAL INFORMATION
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No. of Employees : |
4000 (approximately) |
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Bankers : |
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Facilities : |
Note 1)
Due within one year Rs.3396.111 millions
The balances include interest accrued and due Rs.239.408 millions 2)
Non Convertible Debentures issued to India Debt
Management Private Limited are secured by way of an equitable mortgage on
immovable properties both present and future and by a first charge by way of
hypothecation of all the Company’s movable Fixed Assets both presentand
future, ranking pari passu along with the lenders. 3)
CDR Debts are secured by way of charge on fixed
assets, present and future, pledge of promoters shares and personal gurantees
of directors. 4)
The Term Loans under Technology Upgradation Fund
scheme are secured by first pari passu charge on specific project assets,
second charge on all existing fixed assets and current assets of the company 5)
Term Loans for Overseas Investment are secured by
way of first pari passu charges on fixed assets (excluding Jhagadia
property), pledge of promoters shares held in SKNL and pledge of equity
shares of acquired company/subsidiary company, second charge of fixed assets
of Jhagadia and current assets of the Company 6)
Rupee Term Loans secured by first pari passu
charge on fixed assets of the Company and guarantors, second pari passu
charge on current assets of the company and gurantors, second charge on Jhagadia
property and pledge of promoters shares. 7)
Equipment Finance Loans are secured by
hypothecation of specific equipment / assets. 8)
Loan from Reid and Taylor ( 9)
Working capital advances from Banks are secured
by hypothecation of Company’s stocks and book-debts, present and future and
second charge on all the immovable properties of the company including plant
and machinery, machinery spares, tools and accessories and other movable both
present and future.
Note 1)
*Due within one year Rs. 457.265 millions 2)
The balances include interest accrued and due
Rs.3.926 millions |
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Banking
Relations : |
--- |
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Auditors : |
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Name : |
Haribhakti and Company Chartered Accountants |
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Wholly Owned Subsidiary : |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
37,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 3700.000 Millions |
|
90,00,000 |
Preference Shares |
Rs. 100/- each |
Rs. 900.000 Millions |
|
|
|
|
|
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Total |
|
Rs. 4600.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
Amount |
|
|
|
|
|
|
|
23,65,13,838 |
Equity Shares |
Rs.10/- each |
Rs. 2233.914 Millions |
|
|
|
Add:- Allotted during the year |
|
Rs. 131.224 Millions |
Rs. 2365.138
Millions |
|
|
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|
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|
19,82,500 |
6% Cumulative Redeemable Preference Shares |
Rs. 100/-each |
Rs. 214.250 Millions |
|
|
|
Less : Redeemed During the year |
|
Rs. 16.000 Millions |
Rs. 198.250
Millions |
|
|
|
|
|
|
|
56,55,785 |
0.01% Redeemable Preference Shares |
Rs. 100/-each |
Rs. 655.187 Millions |
|
|
|
Less : Redeemed During the Year |
|
Rs. 89.608 Millions |
Rs. 565.579
Millions |
|
|
|
|
|
|
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Total |
|
|
Rs.3128.967
Millions |
After 28.09.2010
Authorised Capital : Rs. 4600.000
Millions
Issued, Subscribed & Paid-up Capital : Rs. 3378.628 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 |
3128.967 |
3103.351 |
4654.255 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
7448.550 |
6022.744 |
5026.106 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
(200.512) |
|
|
5] Equity Share Warrant Partly Paid |
134.035 |
0.000 |
0.000 |
|
|
6] Employee Stock Option Outstanding |
63.184 |
0.000 |
0.000 |
|
|
NETWORTH |
10774.736 |
9126.095 |
9479.849 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
22631.346 |
17151.479 |
8487.611 |
|
|
2] Unsecured Loans |
1026.716 |
2224.919 |
2529.256 |
|
|
TOTAL BORROWING |
23658.062 |
19376.398 |
11016.867 |
|
|
DEFERRED TAX LIABILITIES |
170.652 |
78.610 |
47.404 |
|
|
|
|
|
|
|
|
TOTAL |
34603.450 |
28581.103 |
20544.120 |
|
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|
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6513.916 |
4887.076 |
3098.860 |
|
|
Capital work-in-progress |
5640.651 |
6071.293 |
5273.893 |
|
|
|
|
|
|
|
|
INVESTMENT |
4256.881 |
2063.209 |
414.180 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7259.387
|
5777.268 |
4825.160 |
|
|
Sundry Debtors |
10296.335
|
8366.694 |
6102.878 |
|
|
Cash & Bank Balances |
462.582
|
429.787 |
84.473 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
4267.538
|
3809.369 |
2498.615 |
|
Total
Current Assets |
22285.842
|
18383.118 |
13511.126 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Other Current Liabilities |
2441.800
|
1431.268 |
1165.691 |
|
|
Provisions |
1652.040
|
1392.325 |
588.248 |
|
Total
Current Liabilities |
4093.840
|
2823.593 |
1753.939 |
|
|
Net Current Assets |
18192.002
|
15559.525 |
11757.187 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
34603.450 |
28581.103 |
20544.120 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
21548.212 |
15502.284 |
16057.230 |
|
|
|
Other Income |
47.468 |
33.840 |
97.318 |
|
|
|
TOTAL (A) |
21595.680 |
15536.124 |
16154.548 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed/fabric Purchases |
16410.256 |
12347.186 |
10072.950 |
|
|
|
Manufacturing Expenses |
298.955 |
232.418 |
416.004 |
|
|
|
Personnel Expenses |
410.444 |
290.378 |
372.094 |
|
|
|
Administrative Expenses |
502.796 |
396.581 |
410.550 |
|
|
|
Selling and Distribution Expenses |
558.464 |
379.867 |
766.421 |
|
|
|
Restructured Financial Cost Amortised |
159.627 |
126.149 |
100.126 |
|
|
|
Increase/(Decrease) in Stock |
(936.848) |
(695.425) |
641.995 |
|
|
|
Prior Period (expenses)/Income |
(3.402) |
5.452 |
4.562 |
|
|
|
Exceptional (Expenses)/ income on settlement of CDR debts |
0.000 |
(577.975) |
0.000 |
|
|
|
TOTAL (B) |
17400.292 |
12504.631 |
12784.702 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
4195.388 |
3031.493 |
3369.846 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2359.646 |
1346.126 |
831.096 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1835.742 |
1685.367 |
2538.750 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
417.121 |
265.449 |
356.654 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1418.621 |
1419.918 |
2182.096 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
357.596 |
819.054 |
400.829 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
1061.025 |
600.864 |
1781.267 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
0.000 |
(200.512) |
(1981.779) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Capital Redemption Reserve |
533.713 |
400.352 |
0.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
22.515 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
504.797 |
0.000 |
(200.512) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
109.039 |
8.837 |
NA |
|
|
TOTAL EARNINGS |
109.039 |
8.837 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
Nil |
2.264 |
NA |
|
|
|
Stores & Spares |
Nil |
3.252 |
NA |
|
|
|
Capital Goods |
71.483 |
1016.772 |
NA |
|
|
|
Others |
7.850 |
20.213 |
NA |
|
|
TOTAL IMPORTS |
79.333 |
1042.501 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) Basic Diluted |
4.49 4.32 |
2.74 2.46 |
8.83 7.39 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 1st
Quarter |
30.09.2010 2nd
Quarter |
31.12.2010 3rd
Quarter |
31.03.2011 4th
Quarter |
|
Net Sales |
5905.900 |
6273.300 |
6934.300 |
8498.300 |
|
Total Expenditure |
4769.600 |
4993.800 |
5530.100 |
6606.700 |
|
PBIDT (Excl OI) |
1136.300 |
1279.500 |
1404.200 |
1891.600 |
|
Operating Profit |
1136.300 |
1279.500 |
1404.200 |
1891.600 |
|
Interest |
654.900 |
752.300 |
753.200 |
791.000 |
|
PBDT |
481.400 |
527.200 |
651.000 |
1100.600 |
|
Depreciation |
162.000 |
167.100 |
189.800 |
221.100 |
|
Profit Before Tax |
319.400 |
360.100 |
461.200 |
879.500 |
|
Tax |
106.100 |
101.800 |
123.200 |
(37.900) |
|
Profit After Tax |
213.300 |
258.300 |
338.000 |
917.400 |
|
Net Profit |
213.300 |
258.300 |
338.000 |
917.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
4.91
|
3.86 |
11.02 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.58
|
9.15 |
13.58 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.92
|
6.10 |
13.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.15 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.57
|
2.43 |
1.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.44
|
6.51 |
7.70 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The transformation of Subject took place when Nitin Kasliwal took over the reins of his family run textiles business, of which Subject was the flagship company. Since assuming control he has created a strong textiles focused company that is completely professional in structure and management. With a vision to clothe the world, Subject is arguably the only Indian textiles player today that is operating across all fiber categories and market segments.
Subject became a purely textiles and apparel company with no
other businesses. With a strong focus on manufacturing especially it set up in
addition to its existing manufacturing facilities in Dewas MP, a state of the
art luxury suiting plant at
Challenging circumstances not withstanding Subject grew at a scorching pace. It developed a wide distribution network of more than 30,000 agents and dealers. Its deep penetration in all retail formats helped it ride the boom in consumer spending and growth of organised retail.
To keep pace with brisk growth in business, teams were strengthened and infrastructure modernized. Offices, plants, machinery were updated in line with the growth outlined for the company.
CURRENT BUSINESS
OUTLOOK AND PLANS
Their domestic operating performance has significantly improved from the last year. Their international line of business is building a robust platform to expand their reach in the global market. They expect future business growth to be driven largely by volumes, across the various strategic business units of the company. SKNL has become a true multinational by making substantial investment overseas.The present phase is of consolidation so as to realize the fruits of their expertise and investment abroad.
Plans are afoot to launch new brands, either owned or through licensing arrangements, targeting different consumer segments. Towards this, the company has been actively pursuing a brand building strategy for developing a strong brand equity and recall. In the ready-to-wear segment, two new brands, one in casual premium and another in economy (World Player) are planned to be launched. Casual premium will be an out-of-office designer wear targeting the youth of the country, while World Player is aimed for the masses.
The company is pleased to inform that commercial production
at the High Value Fine Cotton plant at Jhagadia (
The company is now the proud new owner of HMX entity, one of
SKNL has consecutively delivered healthy performance at all times, and has stood through growth in business earnings even in the challenging environment. Given that consumer sentiment is improving, their performance going forward looks encouraging. SKNL is well poised for growth on the back of strong brand presence across various socio-economic categories in the domestic branded textile and garments industry. The company’s acquisitions in the overseas markets have provided us with a growing presence in global regions. With a dominant position in the domestic branded garment and textile industry, a strengthening position in the international geographies and an improving global market, the company is confident that it will continue to deliver improved and sustainable performances.
The company is now a billion dollar multi-national textile conglomerate. Contribution of domestic business to total revenue in FY 10 was 82%.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The global as well as the Indian economy is fast catching up post the
world economic slowdown. A lot of people know
other country can match the size, spread, depth, and competitiveness of
the Indian textile and apparel industry. Moreover, the global elimination of
quotas at the end of 2004 has greatly enhanced the opportunities for
With huge growth potential and opportunities, textile industry brings
lots of challenges and issues by the sheer nature of this industry. One of the
biggest issues the textile industry faces today, and will face in near future,
is investments. The current manufacturing capacities cannot meet the
unprecedented growth in the demand. In the short term, up to 2011-12, the total
investment requirements are estimated at US$ 40 bn, and since 2006-07, only
US$15 bn worth of investments have been made. Other issues being faced by the
industry are comparatively low level of technology, lower scale of operations
and lower productivity levels, which are inherent to Indian industry because of
its fragmented nature and an unorganized sector being prevalent in
They believe that the Textiles and Apparel Industry will evolve further.
The government has laid emphasis on capacity building of raw material,
machinery, infrastructure and manufacturing units of technical textiles,
standardization, product development and common testing facilities with
international accreditation, domestic and export market development and human
resource development.
Opportunities /
Threats / Challenges
SKNL caters to the entire socio-economic spectrum of the
branded textiles segment from economy to the premium and luxury segment.
However, the key growth driver for the company will be the contribution from
the recently commissioned HVFC facility along with the planned expansion of
worsted fabrics capacity from 9.0 m meters to 10.2 m meters. The Leggiuno
acquisition will provide an opportunity for front end and back end synergy for
HVFC. It will also help SKNL to expand its EU presence by servicing other
brands. SKNL can also substitute the worsted fabric sourced by HMX from
Brand Strength:
SKNL’s brands (owned as well as licensed), namely, S.Kumars, Belmonte, Reid
and
Strong Distribution Network: A distribution network of over 30000 retailers and over 300 wholesalers has enabled SKNL to enjoy a 30% market share of the organized uniform and work-wear fabric market. Expansion of EBOs by the group’s retail company Brandhouse Retails Limited further enhances its retail reach for selling mid-priced to luxury products.
Global Presence: SKNL, post acquisition of Leggiuno and HMX, has achieved a global footprint in the key markets for premium textiles like US and the EU. This will benefit the company when there is a revival in consumer spending on premium products.
Professional Management: The company has a professional team with proven execution track record coupled with impeccable industry experience and domain knowledge. Also, with a separate management team for looking after the affairs of the SBUs this strengthens the focus and also results in better accountability.
Inability to pass on higher raw material costs: Although the company’s target segment in the luxury space affords enough room to pass on the rise in raw material costs, any inability to do the same could lower the margins thereby impacting profitability to a certain extent.
Competition from other countries: Indian
manufacturers compete with players in countries like
Aggressive expansion: SKNL is aggressively ramping up its capacities across its SBUs. Any continued slowdown in global as well as domestic economy can adversely impact profitability.
Scope for expanding presence in developed economies: With many manufacturing facilities abroad on the verge of shutdown, there is enough scope for companies like SKNL to establish a presence in these economies.
Increase domestic market share: With the impact of economic slowdown resulting in closure of many small inefficient mills, companies like SKNL can capitalize and increase their domestic market share.
STANDALONE AUDITED
FINANCIAL RESULTS FOR THE ENDED 31.03.2011
Rs. In Millions
|
Particulars |
|
31.03.2011 (Audited) |
|
a) Net Sales / Income from Operations |
|
27573.600 |
|
b) Other Operating Income |
|
38.200 |
|
Income from Operations |
|
27611.800 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
|
(1180.900 |
|
(b) Consumption of Raw Materials |
|
20477.500 |
|
(c) Employees Cost |
|
536.700 |
|
(d) Depreciation |
|
740.000 |
|
(e) Misc Expenditure written off |
|
159.600 |
|
(f) Other Expenditure |
|
1907.300 |
|
Total Expenditure |
|
22640.200 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
|
4971.600 |
|
Other Income |
|
- |
|
Profit/(Loss) before Interest and Exceptional items |
|
4971.600 |
|
Interest |
|
2951.400 |
|
Profit / (Loss) after interest before Exceptional items |
|
2020.200 |
|
Exceptional Items |
|
- |
|
Profit / (Loss) From
Ordinary activities before Tax |
|
2020.200 |
|
Tax Expenses |
|
293.200 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
|
1727.000 |
|
Extraordinary Items |
|
- |
|
Net Profit/(Loss) for the period |
|
1727.000 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
|
2849.800 |
|
Reserves (Excluding Revaluation Reserves) |
|
11258.800 |
|
Earning Per Share
(EPS) |
|
|
|
Before
Extraordinary Items |
|
|
|
-Basic |
|
6.82 |
|
-Diluted |
|
6.66 |
|
After Extraordinary Items |
|
|
|
-Basic |
|
6.82 |
|
-Diluted |
|
6.66 |
|
Aggregate of Public Share Holding |
|
|
|
- Number of Shares |
|
154690096 |
|
- Percentage of shareholding |
|
54.28% |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
|
108226858 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
|
83.07% |
|
- Percentage of shares(as a % of the total share capital of the company) |
|
37.98% |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
|
22061423 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
|
16.93% |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
7.74% |
SUMMARY OF ASSETS AND
LIABILITIES AS ON 31.03.2011
Rs. In Millions
|
Sr. No. |
Particulars |
As On 31.03.2010
Audited Standalone |
|
1 |
Shareholders Funds
|
|
|
|
a) Capital |
3373.100 |
|
|
b) Amount received
against equity warrants |
325.500 |
|
|
c) Reserve and
Surplus |
11425.800 |
|
2 |
Loan Funds |
37001.800 |
|
3 |
Deferred Tax Liability (Assets) |
269.200 |
|
|
Total |
42395.400 |
|
4 |
Fixed Assets |
12817.800 |
|
5 |
Investments |
5041.800 |
|
6 |
Current Assets,
Loans and Advances |
|
|
|
a) Inventories |
9407.000 |
|
|
b) Sundry Debtors |
11887.300 |
|
|
c) Cash and Bank
Balances |
477.500 |
|
|
d) Loans and
Advances and Other Current Assets |
7069.100 |
|
|
|
28840.900 |
|
7 |
Less: Current
Liabilities and Provisions |
4305.100 |
|
|
Net Current Assets |
24535.800 |
|
|
Total |
42395.400 |
Notes:
1. For a proper
appreciation of the financial results please read ‘Consolidated’ results
2. The Board of Directors
have recommended a dividend of Re.1/- per equity share of Rs. 10/ each i.e.
10%. subject to the approval of share holders at the ensuing Annual General
Meeting.
3. The products of
the Company include Uniforms, Work-wear fabrics and Blended suitings (PA’)
marketed under
Tailored and fashion
clothing marketed under 34 well established brands including iconic brands,
viz. Hickey Freeman, Hart Schaffner Marx and Bobby Jones are the products of
HMX I.LC., U.S.A. and Coppley Inc., Canada
4. During the year
the company has received following complaints from its investors:
Previous
complaints Received
during the year
Replied Complaints pending
Nil
13
13
Nil
5 The Company
operates in one segment only- Textiles.
6. Figures have been
regrouped f reclassified wherever necessary.
7 N’essence Holdings
Limited, a promoter group company, has opted for conversion of 1,24,25,000 nos.
of equity warrants of Rs. 43.15 each into 1.34,25,000 Equity shares of Rs.10/-
each at a price of Rs.43.15 per share (including premium of Rs.33.15 per equity
share) on 03.03.2011 and has accordingly paid the balance amount due on the
warrants.
8. The Company has
converted the balance FCCBs of US$ 9 million Into 70,95,789 equity shares of
Rs.10/- each at a price of Rs. 57/- per share (including premium of Rs.47/- per
equity share) on 11.03.2011.
9. *‘The Equity
shares held by the promoters, as mentioned above, have been pledged to the
Lenders of the Company for borrowings made by the Company. The security thus created
is an additional collateral security in addition so the primary charge created
on fixed assets and current assets of the Company which are sufficient to cover
the borrowings of the Company.
10. The financial
results of the Company for the year ended 31.03.2011 which have been extracted
from the financial statements audited by the statutory auditors have been
reviewed by the Audit Committee and taken on record by the Board of Directors
at its meeting held on 30.05.2011.
FIXED ASSETS
- Building
- Plant and Machinery
- Office Equipments
- Computers
- Furniture and Fixtures
- Vehicles
- Intangible assets
Press Release
SKNL Q1 FY 2010-11 Net Sales up 67.5% to Rs. 11,911.5 Mn
EBIDTA at Rs. 2,255.1 million, a 39.3% increase
(All figures in brackets refer to Q1 FY 2009-10, unless otherwise stated. All figures denote consolidated figures unless otherwise stated)
BSE: SKUMARN NSE: INE772A01016
Mumbai, 30.07.2010: Textile and apparel major S Kumars Nationwide Limited (SKNL), has recorded net sales of Rs. 11,911.5 Mn (Rs 7,109.6 Mn), an increase of 67.5%.
Earnings before Interest, Depreciation, Taxes and Amortization (EBIDTA) increased by 39.3% to Rs. 2,255.1 Mn (Rs. 1,619.2 Mn). Net profit (before minority interest) was up 25% to Rs. 771.9 Mn (Rs. 617.5 Mn). Net Profit after minority interest was at Rs. 627.1 Mn.
One of the highlights of the performance in the quarter is the contribution of international businesses to the total revenue. At Rs. 3,290.4 Mn, international business contributed about 28% of the total sales for the quarter. The International business has turned EBITDA positive and has contributed 8% to the overall EBITDA of the Company
Other operational
highlights:
- In the domestic market, Belmonte and Reid and Taylor were key drivers for overall revenue and earnings growth
- Initiatives taken at strengthening the distribution network in both Tier 1 and 2 cities - opening up of more Exclusive Brand Outlets and Multi Brand Outlets drive the performance for Reid and Taylor in its segment
- “World
Player” - brand catering to the economy segment, introduced in
- There has been volume improvement in key SBUs like Consumer Textiles, Luxury Textiles, and Total Wardrobe Solutions (TWS)
- The joint venture with DKNY for the global menswear licence of the DKNY brand is expected to contribute to revenues in the coming quarters.
- The Baruche Superfine Cottons - 12.75 million meters per annum state-of-the-art HVFC facility has started delivering results as the operations stabilized during the quarter.
Commenting on the
performance for Q1 FY 2011 Mr. Nitin S. Kasliwal, Managing Director and Vice
Chairman of SKNL said,
“I am happy to
announce that all our SBUs including international businesses have made a healthy
start to the financial year. A clear focus on catering to all economic strata
of society, delivering in accordance with the current market trends and making
strategic acquisitions globally has reinforced our market position as a global
player in the Branded Apparel Segment and in-turn contributed substantially to
our top-line and bottom-line.
Our Consumer
Textiles, Luxury Textiles and Total Wardrobe Solutions segments continue to
contribute substantially to revenues. We have launched a new brand “World
Player” in the economy segment of the Ready-to-Wear market, in
Having made
strategic international acquisitions, we are now focusing on capitalizing and
deriving value from the back-end and front-end synergies. Our International business has turned EBITDA positive
and we expect greater contributions in the coming quarters.
We are confident
that growth strategies in each of our business units along with a unique
business model will continue to service our long-term goals of growth and
performance.”
Financial overview:
(All Rupee figures in millions unless stated otherwise)
(All figures are consolidated unless stated otherwise)
Key Financials:
|
Particulars |
Q1 FY2011 |
Q1 FY2010 |
Change (%) |
|
Net sales |
11911.500 |
7109.600 |
67.500 |
|
EBIDTA |
2255.100 |
1619.200 |
39.300 |
|
Margins |
18.9% |
22.8% |
0.000 |
|
PBT |
1169.600 |
929.000 |
25.900 |
|
Margins |
9.8% |
13.1% |
0.000 |
|
PAT (Before Minority Interest) |
771.900 |
617.500 |
25.000 |
|
Margins |
6.5% |
8.7% |
- |
Financial Performance
Review
(SKNL results that are being reviewed are consolidated with
Reid and Taylor India Limited (RTIL), Leggiuno along with holding Companies,
HMX LLC and SKNL
Revenues
In the quarter under review, SKNL’s net sales grew 67.5% mainly driven by enhanced performance reported by RTIL and Belmonte and significant contribution from International business. There has been volume improvement in key SBUs namely Consumer Textiles, Luxury Textiles, and Total Wardrobe Solutions (TWS). The joint venture with DKNY for the global menswear licence of the DKNY brand is expected to contribute to revenues in the coming quarters. The Baruche Superfine Cotton - 12.75 million meters per annum state-of-the-art HVFC facility has started delivering results as the operations stabilized during the quarter. Overseas subsidiaries contribution to the total sales of the Company has been Rs. 3,290.4 million in Q1 FY2011.
EBIDTA
EBIDTA margins during the quarter were at 18.9%. Initiatives to improve sales from high margin brands like Belmonte and Reid and Taylor will help improve margins going forward. EBIDTA margins from the overseas businesses have grown to 5.2% from 4.2%.
Depreciation
Depreciation increased by about 96.2% owing to depreciation
charges incurred on the BSFC plant in
Interest
Interest cost has gone up in tune with the increase in the turnover. Interest charges stood at Rs. 732.7 million. As the Company is growing, working capital requirements have expanded resulting in higher interest expenses. The Company has also availed Term Loans on its various growth plans including overseas acquisitions.
Net Profit
Profit after tax but before minority interest has grown at the rate of 25% on a Y-o-Y basis implying a robust earnings performance. The minority interest pertains to GIC’s investment in RTIL. Earnings have improved on the back of improved volumes as well as margins from the domestic as well as international businesses.
Mr. Jitender Balakrishnan, Former Deputy Managing Director, IDBI Bank has joined the SKNL Board as a Non-Executive Independent Director. SKNL has also strengthened the Reid and Taylor Board. Mr. Nasser Munjee has joined the board as Non Executive Chairman, while Mr. Pradip Shah as been appointed as an additional Independent Director. SKNL holds 74 percent in Reid and Taylor and 26 percent with Singapore Government Investment Corp.
About SKNL
SKNL is a leading global conglomerate involved in design, manufacturing, marketing and distribution of high quality fabrics and ready-to-wear garments. The Company has recently extended its presence overseas to the European and North American markets expanding its brand portfolio of 45 leading brands catering to various price points, socio economic segments and age groups. Domestically, SKNL offers an excellent set of high value products ranging from high quality textiles to world class premium ready-to-wear garments and is present in all segments of the Indian textiles market.
Apart from top design, market and distribution capabilities, SKNL also has state-of-the-art manufacturing facilities that have been instrumental in the Company’s success story. Its adequate manufacturing capabilities will play a key role in the Company’s synergistic relationship with its overseas acquisitions.
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.44.43 |
|
|
1 |
Rs.71.90 |
|
Euro |
1 |
Rs.63.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
54 |
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.