MIRA INFORM REPORT

           

 

Report Date :

03.06.2011

 

IDENTIFICATION DETAILS

 

Name :

GLOSTER LIMITED [W.E.F. 20.10.2010]

 

 

Formerly Known As :

GLOSTER JUTE MILLS LIMITED

 

 

Registered Office :

21, Strand Road, Kolkata-700001, West Bengal, India

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

18.02.1992

 

 

Com. Reg. No.:

21-054454

 

 

Capital Investment / Paid-up Capital :

Rs.26.167 Millions

 

 

CIN No.:

[Company Identification No.]

UL17119WB1992PLC054454

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CALG1535C

 

 

Legal Form :

A Public limited liability company. Company's shares are listed on the Stock Exchange.

 

 

Line of Business :

Manufacturer of Jute and Jute allied products

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (63)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Maximum Credit Limit :

USD 10600000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an old established and reputed company having fine track. Trade relations are fair. Financial position is good. Payments are usually correct and as per commitments.

 

The company can be considered good for any 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 – June 30, 2010

 

Country Name

Previous Rating

(01.04.2010)

Current Rating

(30.06.2010)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

 

 

LOCATIONS

 

Registered Office :

21, Strand Road, Kolkata-700001, West Bengal, India

Tel. No.:

91-33-22309601 (4 lines)

Fax No.:

91-33-22106167 / 22314222

E-Mail :

info@glosterjute.com

export@glosterjute.com

sales@glosterjute.com

purchase@gloster.com

accounts@gloster.com

rawjute@gloster.com

edp@glosterjute.com

shares@glosterjute.com

ananya@glosterjute.com

Website :

www.glosterjute.com

 

 

Mill Office :

P.O. Fort Gloster, Bauria, Howrah-711310, West Bengal, India

Tel. No.:

91-2661-8327 / 8271

Fax No.:

91-2661-8940

 

 

               DIRECTORS


As on 29.09.2010

 

Name :

Mr. Gopal Das Bangur

Designation :

Chairman and Managing Director

Date of Birth/Age :

60 Years

Qualification :

B.Com.

 

 

Name :

Mr. Hemant Bangur

Designation :

Director

Qualification :

Post Graduate

 

 

Name :

Mr. Bhaskar Mitter

Designation :

Director

Date of Birth/Age :

87 Years

Qualification :

Barrister at Law

 

 

Name :

Ms. Nandita Sen

Designation :

Director

Date of Birth/Age :

71 Years

Qualification :

Chartered Accountant

 

 

Name :

Dr. Prabir Ray

Designation :

Director

Date of Birth/Age :

56 Years

Qualification :

B.Sc. (Tech)

 

 

Name :

Mr. R. R. Dash

Designation :

Director

 

 

Name :

Mr. Krutibas Mahapatra

Designation :

Director

Date of Birth/Age :

65 Years

Qualification :

MA (Economics) Gold Medalist

 

 

Name :

Mr. D. C. Baheti

Designation :

Executive Director

Date of Birth/Age :

59 Years

Qualification :

B.Com.

 

 

KEY EXECUTIVES

 

Name :

Mr. Ajay Agarwal

Designation :

Company Secretary

Date of Birth/Age :

40 Years

Qualification :

CWA, ACA, ACS, CFA

 

 

Name :

Mr. O.P. Sharma

Designation :

Commercial Manager

Date of Birth/Age :

54 Years

Qualification :

B.Com.

 

 

Name :

Mr. Ram Krishna Maheshwari

Designation :

General Manager (Mills)

Date of Birth/Age :

76 Years

Qualification :

B.Sc. / Post Graduate Diploma in Jute Technology

 

 

Name :

Mr. B. L. Atal

Designation :

Manager (Sales)

Date of Birth/Age :

63 Years

Qualification :

B.Com

 

 

Name :

Mr. Rajeev Kumar Maheshwari

Designation :

Manager (Purchase)

Date of Birth/Age :

51 Years

Qualification :

B. Sc

 

 

Name :

Mr. D. P. Bohra

Designation :

Manager (Raw Jute)

Date of Birth/Age :

60 Years

Qualification :

B.Com

 

 

Name :

Mr. Manidipa Guja

Designation :

Manager Diversified Products

Date of Birth/Age :

35 Years

Qualification :

B.Sc. [Diploma in Personal Management and Industrial Rlations]

 

 

Name :

Mr. Shubhasis Ghosh

Designation :

Manager IT

Date of Birth/Age :

41 Years

Qualification :

B.Sc. / Post Graduate Diploma in Computer and Information Technology

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As On 31.03.2011

 

Names of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of promoters and Promoter Group

 

 

1. Indian

 

 

Individuals / Hindu Undivided Family

133134

5.09

Bodies Corporate

1406221

53.74

Sub Total (A) (1)

1539355

58.83

 

 

 

(B) Public Shareholding

 

 

1. Institutions

 

 

Financial Institutions  / Banks

4288

0.16

Insurance Companies

619036

23.66

Sub Total (B) (1)

623324

23.82

 

 

 

2. Non Institutions

 

 

Bodies Corporate

107681

4.12

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

239120

9.14

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

103756

3.97

 

 

 

Non Residents

 

 

NRI

3263

0.12

Clearing Members

221

0.01

 

 

 

Sub Total (B) (2)

1077365

41.17

Total [A] + [B]

2616720

100.00

 

 

 

Shares held by custodians and against which depository receipts have been issued  (C)

--

--

 

 

 

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

2616720

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Jute and Jute allied products

 

 

PRODUCTION STATUS As on 31.03.2010

 

Particulars

 

 

Unit

Installed Capacity

Looms

 

 

Nos.

1099

Spindles

 

 

Nos.

13618

Production of Finished Goods                                                                                                                    41.225 MT

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Available

 

 

Bankers :

State Bank of India

 

 

Facilities :

Secured Loans :

 

31.03.2010

Rs. in Millions

31.03.2009

Rs. in Millions

From Banks -

 

 

Cash Credit etc.

Secured by hypothecation of Stock of Raw Material, Stock in Process, Finished Goods, Stores and Consumables, Book Debts and other Current Assets of the Company and collaterally secured by equitable mortgage over the Land and Building and hypothecation of movable Plant and Machinery and also guaranteed by Kettlewell Bullen and Company Limited. (Includes interest accrued and due ` 1.006 million 2008-09 Nil)

199.789

189.134

 

 

 

Term Loan

Secured by equitable mortgage of Factory land and hypothecation of certain Plant and Machinery and other fixed assets acquired. Collaterally secured by hypothecation of Stock of Raw Material, Stock in Process, Finished Goods, Book Debts and other Current Assets of the Company and extension of mortgage charge over the immovable assets of the Company and also guaranteed by Kettlewell Bullen and Company Limited.

(Includes interest accrued and due Rs. 0.702 Millions, 2007-08 Rs 1.006 Millions)

59.422

100.930

 

 

 

From Life Insurance Corporation of India

Secured against Insurance policies

0.000

13.197

Car Loan [secured by hypothecate of the assets acquired under the loan]

3.437

0.000

Total

262648

303.261

 

Banking Relations :

---

 

 

Auditors :

 

Name :

Lovelock and Lewes

Chartered Accountants

Address :

Kolkata, India

 

 

Associates/Subsidiaries :

Gloster Ultimo Limited

 

 

Group Companies :
  • Joonktollee Tea and Industries Limited.
  • Kettlewell Bullen and Company Limited.
  • The Phospate Company Limited
  • Port Shipping Company Limited
  • The Oriental Company Limited
  • The Cochin Malabar Estates and Industries Limited
  • Madhav Trading Corporation Limited
  • The Cambay Investment Corporation Limited
  • Kherapati Vanijya Limited

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25,000,000

Equity Shares

Rs. 10/- each

Rs. 250.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

2,616,720

Equity Shares

Rs. 10/- each

Rs. 26.167 Millions

 

 

 

 

 

Note :

v       Of the above 217360 Equity Shares of Rs. 10/- each fully Paid-up issued for consideration other than cash.

 

v       654180 Equity Shares were allotted as fully paid up bonus share by way of capitalization of General reserve in 2002-03

 

v       1308360 Equity Shares were allotted as fully paid up bonus share by way of capitalization of General reserves in 2008-09

 

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

26.167

26.167

13.083

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

2625.091

487.467

425.066

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

2651.258

513.634

438.149

LOAN FUNDS

 

 

 

1] Secured Loans

262.648

303.261

252.577

2] Unsecured Loans

0.000

0.000

57.700

TOTAL BORROWING

262.648

303.261

310.277

DEFERRED TAX LIABILITIES

63.286

64.652

57.828

 

 

 

 

TOTAL

2977.193

881.547

806.254

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

2610.322

564.894

549.909

Capital work-in-progress

37.656

10.030

25.457

 

 

 

 

INVESTMENT

1.530

3.530

3.530

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
467.813
349.336

260.819

 

Sundry Debtors
91.164
72.012

62.828

 

Cash & Bank Balances
32.179
6.327

8.150

 

Other Current Assets
2.651
2.511

30.316

 

Loans & Advances
97.398
74.859

59.727

Total Current Assets
691.205
505.045

421.840

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
52.390
17.058

12.044

 

Sundry Creditors
231.644
132.880

140.305

 

Provisions
79.486
52.014

42.133

Total Current Liabilities
363.520
201.952

194.482

Net Current Assets
327.685
303.093

227.358

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

2977.193

881.547

806.254

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

1952.860

1679.386

1581.556

 

 

Other Income

9.572

24.739

11.348

 

 

TOTAL                                     (A)

1962.432

1704.125

1592.904

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material, Finished goods, stores and spare parts, Manufacturing selling distribution Expenses

1177.622

916.339

772.102

 

 

Administrative and other Expenses

546.175

548.898

547.163

 

 

Directors remunerations

12.667

12.459

12.996

 

 

TOTAL                                     (B)

1736.464

1477.696

1332.261

 

 

 

 

 

Less

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

225.968

226.429

260.643

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

20.669

26.718

32.029

 

 

 

 

 

 

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

205.299

199.711

228.614

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

53.976

51.095

51.245

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

151.323

148.616

177.369

 

 

 

 

 

Less

TAX                                                                  (I)

53.835

57.824

67.016

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

97.488

90.792

110.353

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

21.734

21.249

18.549

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

75.000

75.000

100.000

 

 

Dividend

15.700

13.084

6.542

 

 

Tax on Dividend

2.608

2.223

1.111

 

BALANCE CARRIED TO THE B/S

25.914

21.734

21.249

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export

393.539

382.531

329.526

 

TOTAL EARNINGS

393.539

382.531

329.526

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

77.749

32.831

33.242

 

 

Stores & Spares

9.654

10.877

5.985

 

 

Capital Goods

22.538

10.386

23.121

 

TOTAL IMPORTS

109.941

54.094

62.348

 

 

 

 

 

 

Earnings Per Share (Rs.)

37

35

42

 

 

QUARTERLY RESULTS

 

PARTICULARS

Rs. in millions

30.06.2010

30.09.2010

31.12.2010

31.03.2011

 Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

 Sales Turnover

735.000

771.800

720.500

841.300

 Total Expenditure

618.900

659.500

675.600

756.100

 PBIDT (Excl OI)

116.100

112.300

44.900

85.200

 Other Income

5.000

4.700

1.600

3.500

 Operating Profit

121.100

117.000

46.500

88.700

 Interest

6.900

5.600

9.100

14.200

 Exceptional Items

0.000

0.000

0.000

(59.400)

 PBDT

114.200

111.400

37.400

15.100

 Depreciation

14.300

14.600

15.200

16.100

 Profit Before Tax

99.900

96.800

22.200

(1.000)

 Tax

34.900

31.500

6.200

4.500

 Reported PAT

65.000

65.300

16.000

(5.500)

Extraordinary Items       

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

Net Profit

65.000

65.300

16.000

(5.500)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)

4.97

5.33

6.93

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

7.75

8.85

11.21

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.58

13.89

18.25

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.06

0.29

0.40

 

 

 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 

0.24

0.98

1.15

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.90

2.50

2.17

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CONTINGENT LIABILITIES :

Rs. in million

Particulars

31.03.2010

31.03.2009

a) Sales Tax related to non submission of Declaration forms

9.699

45.439

b) Export Bills Discounted with Bank

7.040

5.906

c) For ESI Matter

4.557

4.557

 

History :

 

The Kolkata based subject is engaged in the business of manufacturing Jute Goods. In 2000-01, the company completed the balancing and modernisation of plant and machinery at a cost of Rs. 7.942 Millions. The company is also reviving the possibility of setting up a captive power plant to minimise the power cost. During 2001-02 the company issued Bonus Shares in the ratio of 1:1.

 

 

OPERATIONS :

 

There was an industry wide strike of 62 days in the second half of the year which has adversely affected the operations of the Company. However, due to firm demand of jute goods at remunerative prices, the Net Profit for the year has gone up marginally to ` 97.487 millions in comparison to ` 90.792 millions during the year 2008-09. Further the production and sales during the year has been 41,225 MT and 42,511 MT in comparison to 44,792 MT and 44,862 MT respectively during the year 2008-09. In the above context the performance of the Company has been satisfactory during the year.

 

 

The year witnessed raw jute prices prevailing at higher levels even during the jute season and saw exorbitant rise later during the year because of lower supply of raw jute due to crop shortage. However, proactive purchase policies helped the Company to maintain sufficient stock levels and reduce the average cost of procurement.

 

The jute crop forecast for the current year is higher than last year. However, the prices of the raw jute in the current year are likely to be firm with an upward bias due to very low carried over stock of raw jute.

 

Subsequent to the de-bonding of the EOU during the year under review, the performance of the Ananya Unit has improved significantly in comparison to the year 2008-09.

 

EXPORTS

 

During the year the export has been ` 4,02.952 millions as against ` 4,08.131 millions in the previous year. Export would have been even higher but for the industry wide strike and continued global economic recession, export maximization and increased share in global market continue to remain the thrust area of the Company. The directors are hopeful of a further improvement in export performance in future, barring unforeseen circumstances.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

Industry structure and developments:

 

By a notification during the year the Government of India has maintained the compulsory packing of food grains and sugar at 100% under Jute Packaging Materials (Compulsory use for Packing Commodities) Act, 1987 (JPMA), which is valid up to 30.06.2010.

 

An industry-wide strike was called by the Trade Unions during the year from 14th December, 2009. The Strike was called off from 14th February, 2010, after a Tripartite Settlement executed on 12th February, 2010 .

 

Segment-wise or product-wise performance:

 

The Company is engaged in the business of manufacturing Jute goods and  is managed  organizationally as a single unit. Accordingly  the  Company  has only one business. However, the Company has customers in India as well  as outside  India and thus segment reporting on the Geographical location  of its customers is as below :-

                                                              (Rs. in Millions)

Particulars

Inside India

Outside India

Total

 

2009-2010

2008-09

2009-2010

2008-09

2009-2010

2008-09

 

 

 

 

 

 

 

Sales         

1518.690

1243.052

408.131

402.952

1926.821

1646.004

 

 

 

 

 

 

 

Carrying amount of segment assets (Sundry Debtors)

36.536

50.215

54.628

21.797

91.164

72.012

 

 

 

 

 

 

 

Purchase of Tangible and Intangible Assets

--

--

--

--

76.357

55.305

 
 

Outlook:

 

The jute crop forecast for the current year is better than last year. However, the prices of the raw jute in the current year, on an average, are likely to remain firm with a upward bias, due to very low carried over stock of raw jute from last jute season. The Company is taking steps to build and maintain adequate raw jute stock in order to meet production of its order book at reasonable price by proactive purchase.

 

After completing the 2nd phase of modernization your Company has taken up the 3rd phase of modernization which includes (i) partial replacement of spinning frames and looms, (ii) construction of new factory building, (iii) modernization of sack sewing section and (iv) construction of sanitary facility for workmen. The financial closure for the project has been done.

 

Improvement in US and other world economies may bring in fresh business opportunities.

 

The management will make all efforts and is hopeful to be able to improve the economic performance of the Company in the years to come.

 

Discussion on financial  performance  with  respect  to  operational performance:

 

The following are the significant areas of financial performance:

 

Rs.in million

Particulars

2009-10

2008-09

(Increase)/ Decrease

 

Sales

1952.860

1679.386

273.474

Raw material cost

1008.295

822.863

185.432

Interest Expenses

20.669

26.718

(6.049)

Profit after tax

97.488

90.792

6.696

Inventory

467.813

349.336

118.477

Capital Investment

76.357

55.505

21.052

 

Unaudited Financial Results for the quarter ended 31st December, 2010

 

Particulars

3 months Ended 31.12.2010

9 months Ended 31.12.2010

Income

 

 

a) Net Sales / Income from Operations

720.500

2227.300

b) Other Operating Income

0.000

0.000

Total Operating Income

720.500

2227.300

Expenditure

 

 

(a) (Increase)/decrease in Stock in Trade

(73.600)

(130.500)

(b) Consumption of Raw Materials

509.900

1342.700

(c) Purchase of traded goods

1.300

64.700

(d) Employees Cost

118.300

329.700

(e) Depreciation

15.200

44.100

(f) Other Expenditure

119.700

347.400

Total Expenditure

690.800

1998.100

Profit / (Loss) From Operations before other Income Interest & Exceptional Items

29.700

229.200

Other Income

1.600

11.300

Profit/(Loss) before Interest and Exceptional items

31.300

240.500

Interest

9.100

21.600

Profit / (Loss) after interest before Exceptional items

22.200

218.900

Exceptional Items

0.000

0.000

Profit / (Loss) From Ordinary activities before Tax

22.200

218.900

Tax Expenses

6.200

72.600

Net Profit/(Loss) From Ordinary activities after Tax

16.000

146.300

Extraordinary Items

0.000

0.000

Net Profit/(Loss) for the period

16.000

146.300

Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each )

26.200

26.200

Reserves (Excluding Revaluation Reserves)

0.000

0.000

Public Share Holding

 

Before Extraordinary Items

 

 

-Basic & Diluted

6.10

55.83

After Extraordinary Items

 

 

-Basic & Diluted

6.10

55.83

Average of Public Share Holding

 

 

- Number of Shares

1126903

1126903

- Percentage of shareholding

43.07

43.07

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

1489817

1489817

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

100

100

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

56.93

56.93

 

Notes :

 

  1. The above unaudited financial results after review of the Audit Committee were approved by the Board of Directors at its meeting held on 2nd, February, 2011.

 

  1. The Statutory Auditors of the Company have carried out a 'Limited Review' of the financial results for the quarter in terms of Clause 41 of the Listing Agreement.

 

  1. The name of the Company has changed from "Gloster Jute Mills Limited" to "Gloster Limited" as per fresh certificate of incorporation dated 20th October, 2010 issued by the Registrar of Companies, West Bengal. The change in the name of the Company does not signify a change in the nature of the business of the Company.

 

  1. During the corresponding quarter/period of the previous year, manufacturing operations were affected due to industry wise strike from 14th December,2009 to 13th February, 2010.

 

  1. There were four investor complaints received during the quarter. There was no complaint pending at the beginning or lying unresolved at the end of the quarter

 

  1. Information in accordance with Accounting Standard 17 on Segment Reporting :

 

The Company is engaged in business of manufacturing jute goods and is managed organizationally as a single unit. Accordingly the Company has only one business segment. However, it has customers in India as well as outside India and thus segment reporting based on the Geographical location of its customers is as below :-.

 

Particulars

3 months Ended 31.12.2010

9 months Ended 31.12.2010

Sales - Inside India

563.100

1625.700

Sales - Outside India

153.400

582.500

Carrying amount of segment assets (Sundry Debtors) - Inside India

76.300

76.300

Carrying amount of segment assets (Sundry Debtors) - Outside India

25.600

25.600

Purchase of Tangible & Intangible Assets

28.800

81.300

 

7   Previous Period's / years figures have been regrouped / re arranged, where ever necessary, to confirm to the current period's / year's presentation

 

FIXED ASSETS :

 

v       Freehold Land

v       Buildings

v       Tubewells

v       Plant and Machinery

v       Electric Installation

v       Railway Siding

v       Furniture, Fittings and Other Office Equipments etc.

v       Launches

v       Motor Cars, Lorries and Cycles

v       Computer Software

 

AS PER WEB-DETAILS :

 

Overview :

 

Subject is a Public Company having its registered office at 21 Strand Road Kolkata 700 001 incorporated on 18th February 1992.It is a professionally managed company engaged in the manufacture of Jute and Jute allied products. The factory is situated at Bauria, P.O. Fort Gloster, District Howrah. The present management has an experience of over 50 years in running large jute manufacturing units. The unit has extensively been modernized to produce value added diversified jute products like floor covering, geo-textiles, processed decorative and industrial fabrics, Food grade quality jute cloth and bags apart from traditional jute products including yarn/twin.

 

Gloster Jute Mills is one of the few ISO Certified Companies in the jute industry. It is one of the fast growing Jute manufacturing and exporting company and is a Recognized Export House.

 

The company presently has two business units along with one Captive Power Plant (CPP) which is used as standby situated in the district of Howrah. The Domestic Tariff Area unit is in operation since 1890 and was taken over by the Bangur Group in the year 1954. A 100% Export Oriented Unit (EOU) started its commercial production in the year 2003.

 

 

DIRECTORS :

 

G.D. Bangur :        

Gopal Das Bangur (60), Bachelor of Commerce from St.Xaviers College and is the Chairman and Managing Director of the Company having a keen involvement in the day-to-day affairs of the Company.

 

He has been associated with the operations of the Company for over three decades and under his able leadership the Company has been able to withstand and ride upon all the difficult conditions posed by the industry and during his tenure, apart from shut down of operations in the company owing to industrial strikes, there has been no incidence of labour unrest in the Company.

 

Hemant Bangur :   

Hemant Bangur is a promoter non executive director of the company. He is a post graduate in international trade and is currently the Managing Director of Joonktollee Tea and Industries Limited. He has a wide experience in tea coffee and Rubber plantation industry which is extensively utilized in the operations of the company.

 

Bhasker Mitter :

Bhaskar Mitter (87) Barrister at Law London is an eminent professional and business leader having more than six decades of wide and varied experience over the whole range of business operations in the industry. He is the former chairman of Andrew Yule Group, CESC Limited and BOC Limited.

 

Krutibas Mahapatra              

Krutibas Mahapatra (65) M.A. (Economics) Gold Medallist, has a rich experience in the areas of corporate risk management. He is the former Executive Director of Life Insurance Corporation of India. He is a former General Manager and Chief Vigilance Officer of the Zonal Advisory Committee, National Insurance Company Limited. He has also been nominated as Insurance Expert by the Insurance Regulatory and Development Authority, Hyderabad. He is a visiting faculty with Academy for Insurance and Finances Limited under IL and FS, Mumbai.

 

Nandita Sen :

Nandita Sen (71) is a Chartered Accountant and has done Advanced Management Programme from Harvard Business School, Boston. She is an expert in Corporate taxation, Finance and Management.

 

Prabir Roy :

Prabir Ray (56) is a B.Sc (Tech) in Textile Technology from University of Calcutta. He is also a M. Tech in textile Engineering from IIT, Delhi and Ph.D in Non woven Technology from Technical University of Liberec, Czech Republic. He is instrumental in setting up non woven pilot plant at VJTI, Mumbai. Moreover lot of research work on jute related technical textiles have been carried out under his guidance.

 

D.C. Baheti :

D.C Baheti (59) is the Whole Time Director of the company. He is a B.Com Graduate and has a wide expertise in the jute and jute related products. He is a key personnel in the jute industry with thorough knowledge both in the domestic and the international market. He is an active member of Committees like Technical Committee of the Jute Mills Association and Chairman of Indian Jute Industries Research Association.

 

 

INTRODUCTION :

 

The Board of Directors of subject have adopted the “Code of Conduct and Ethics” (Herein after referred to as “The Code”) to help in maintaining the standards of business conduct for the Company and ensures compliance with legal requirements.

 

The object of “The Code” is to deter wrongdoing and promote ethical conduct. The matters covered in “The code” are of utmost importance to the Company, its shareholders and its business associates.

 

“The code” is designed to assist in defining appropriate personal and professional conduct, to provide guidance in the identification and resolution of ethical issues, and to help the members of the Board, members of the Senior Management and officers of the Company to maintain the culture of honesty, integrity, transparency and accountability. Since no code or policy can anticipate every situation that may arise, “The Code” is intended to provide guidance for handling unforeseen situation which may arise. The Company is committed to continuously reviewing and updating “The Code” from time to time.

 

Each Director, members of the Senior Management and officers of the Company must comply with the letter and spirit of “The Code”.

 

For the purpose of “The Code”, ‘Senior Management' would comprise members of the management one level below the executive director, including all functional heads.

 

 

NEWS AND EVENTS :

 

March 31, 2011

CRISIL has assigned ratings as on March, 2011 of 'A-/Stable/P2+' to the various bank facilities amounting to Rs. 150 crores of the Company as per CRISIL Rating Release dated March 2011.

 

March 30, 2011

A fire has broken out at one of the Jute Godown at our Mill Bauria on 29.03.2011 causing damage to raw material stock & the godown. However, the fire came under control in the early morning on 30.03.2011. The operations of the mill are not disturbed & work is going on normally. The extent of damage / loss is yet to be ascertained. However, there is adequate coverage of insurance for the properties / stock.

 

October 20, 2010

The name of the Company has changed from "Gloster Jute Mills Limited" to "Gloster Limited" as per fresh certificate of incorporation dated 20th October, 2010 issued by the Registrar of Companies, West Bengal.

 

March 20, 2010

CRISIL has assigned ratings as on March, 2010 of 'A-/Stable/P2+' to the various bank facilities amounting to Rs. 71.60 crores of the Company as per CRISIL Rating Release dated March 2010.

 

March 24, 2009

CRISIL has assigned ratings of 'A-/Stable/P2+' to the various bank facilities amounting to Rs. 57.30 crores of the Company as per CRISIL Rating Release dated March 20, 2009.

 

January 30, 2009

In order to optimise the operations the company has debonded the 100% Export Oriented Unit into Domestic Tariff Area Unit with effect from 29/01/2009 and has rechristened the name as "ANANYA". The email ID of the Ananya Unit is ananya@glosterjute.com .

 

August 28, 2008

For Investors Grievance Complaints email at shares@glosterjute.com.

 

June 28, 2008

The Board of Directors has recommended for the approval of shareholders, the issue of bonus equity shares in the ratio of 1:1 (One bonus equity share of Rs. 10/- each for every equity share of Rs. 10/- each held) at the Board Meeting held on 28th June, 2008.

 

May 02, 2008

Trading at BSE

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]             INFORMATION ON DESIGNATED PARTY

No 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.44.94

UK Pound

1

Rs.73.46

Euro

1

Rs.64.58

 

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

NO

--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

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.