%20LIMITED%20-135746%2017-Mar-2011_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
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Report Date : |
17.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
INDO RAMA
SYNTHETICS ( |
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Registered Office : |
31-A, MIDC Industrial Area, Butibori – 441 122, |
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Country : |
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Financials (as on) : |
31.03.2010 |
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Date of Incorporation : |
28.04.1986 |
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Com. Reg. No.: |
11-166615 |
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CIN No.: [Company
Identification No.] |
L17124MH1986PLC166615 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BPLI00021A |
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PAN No.: [Permanent
Account No.] |
AAALI1530L |
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Legal Form : |
A public limited
liability company. The company’s shares
are listed on the Stock Exchanges |
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Line of Business : |
Manufacturing of
Cotton, Synthetic and Blended Yarn. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
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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 20000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having satisfactory track. Trade relations are reported
as fair. Business is active. Payments are reported to be usually correct and
as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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 DECLINED BY
|
Name : |
Mr. Mahendra |
|
Designation : |
Operator |
LOCATIONS
|
Registered Office / Manufacturing
Plant : |
31-A, MIDC Industrial Area, Butibori – 441 122, |
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Tel. No.: |
91-7104-663000 / 01 |
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Fax No.: |
91-7104-663200 |
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E-Mail : |
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Website : |
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Corporate
Office : |
20th
Floor, |
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Tel. No.: |
91-124-4997000 |
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Fax No.: |
91-124-4997070 |
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E-Mail : |
ranvirk.vij@indorama-ind.com |
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Regional Offices: |
Tel No. 91-712-2528380 Fax No.91-712-2528379
Tel No. 91-731-2512516 / 2512837 Fax No.91-731-2523470 |
|
Worldwide Offices: |
Kembang Kuning, Ubrug, Post Tel No.: 62-264-200235 / 845 Fax No.: 62-264-200068 Tel No.: 62-21-5261555 Fax No.: 62-21-5261501 to 05
J1. Hang Kastrui # 8, Tel No.:61-61-321530
Far Eastern Bank Building, 156 Cecil Street # 06-09, Singapore 0106 Tel No.: 65-2221347 / 2256046 Fax No.:65-2234613
75/101, 102 Tel. No.: 66-2-6616657 to 63 Fax No.: 66-2-6616664
901, Merry Lane, Tel No.: 1-708-5730797 Fax No.: 1-708-5730805
6/40 New Road, Post Tel No.: 977-1-223855 / 2256046 Fax No.: 977-1-222239
157-A, Tel No.: 94-1-696897 / 8 Fax No.: 94-1-698075 |
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Marketing Offices: |
Bhilwara
Silvassa
Tirupur
|
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. M. L. Lohia |
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Designation : |
Chairman Emeritus |
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Name : |
Mr. O. P. Lohia |
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Designation : |
Chairman and
Managing Director |
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Name : |
Mr. O. P. Vaish |
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Designation : |
Director |
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Name : |
Mr. A. K. Ladha |
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Designation : |
Director |
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Name |
Mr. Vishal Lohia |
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Designation |
Whole Time Director |
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Qualification |
Bachelors Degree in Financial & |
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Date of
Appointment : |
28.06.2002 |
|
|
|
|
Name |
Dr. Arvind Pandalai |
|
Designation |
Director (w.e.f. 20.07.2009) |
KEY EXECUTIVES
|
Name : |
|
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Designation : |
Company
Secretary |
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Name : |
Mr.
Jayant Sood |
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Designation : |
Company
Secretary |
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CORPORATE
EXECUTIVES |
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Name : |
Mr.
A. Chatterjee |
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Designation : |
President,
Finance & Accounts |
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Qualification : |
B.
Com. [Hons.]. FCA |
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Date of Appointment
: |
18.08.2004 |
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|
|
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Name : |
Mr. Anant. Kishore |
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Designation : |
Chief Operating Officer (Polyester) |
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Qualification : |
B.Sc. Chem, Engineering, PGDB and IM |
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Date of Appointment
: |
07.07.1999 |
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SBU POLYESTER |
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Name : |
Mr. Hemant Verma |
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Designation : |
Business Head |
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Name : |
Mr. Sharad Verma |
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Designation : |
Plant Head |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
52,146,198 |
36.91 |
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52,146,198 |
36.91 |
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|
|
|
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|
961,724 |
0.68 |
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|
43,288,057 |
30.64 |
|
|
44,249,781 |
31.32 |
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Total shareholding of Promoter and Promoter Group (A) |
96,395,979 |
68.23 |
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(B) Public Shareholding |
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|
|
|
|
|
|
|
6,998,228 |
4.95 |
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|
2,426,843 |
1.72 |
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|
4,006,850 |
2.84 |
|
|
13,100,561 |
9.27 |
|
|
26,532,482 |
18.78 |
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|
|
|
|
|
9,088,360 |
6.43 |
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|
|
|
|
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3,251,208 |
2.30 |
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|
6,022,853 |
4.26 |
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|
18,362,421 |
13.00 |
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Total Public shareholding (B) |
44,894,903 |
31.77 |
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Total (A)+(B) |
141,290,882 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
10,531,360 |
- |
|
|
10,531,360 |
- |
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Total (A)+(B)+(C) |
151,822,242 |
- |
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Individuals / Hindu Undivided Family%20LIMITED%20-135746%2017-Mar-2011_files/image006.gif){kind=small}
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
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Line of Business : |
Manufacturing of
Cotton, Synthetic and Blended Yarn. |
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Products : |
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Exports : |
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Countries : |
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PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Installed
Capacity* |
Actual
Production |
|
Polyester Staple
Fibre |
TPA |
263550 |
185929 |
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Polyester
Filament Yarn |
TPA |
259000 |
176723 |
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Polyester
Texturised Yarn |
TPA |
43800 |
42304 |
|
Polyester Clips |
TPA |
87500 |
11864 |
|
Electrical Power |
MWPH |
82.5 |
48.3 |
Notes:
- The Company manufactures varying denier/ qualities of fibers/ yarn, the above capacity is calculated based on a mix of product range as certified by the management and relied on by the auditors being a technical matter.
- Delicensed vide notification no. 477 (E) dated 27 July 1991 and press note No. 1 (1998 series) dated 8 June 1998.
- TPA-Tones per annum
- MWPH-Mega watt per hour
GENERAL INFORMATION
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No. of Employees : |
800
(Approximately) |
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Bankers : |
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Institutions : |
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Facilities : |
Notes : 1. Debentures: Debentures of Rs. Nil (Previous year Rs.48.124 Millions) were secured by equitable mortgage on all immovable properties (excluding land in the state of Gujarat) of the Company by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari passu with the charges created in favour of Banks and Financial Institutions for securing rupee and foreign currency term loans, subject to prior charges created and/ or to be created in favour of the Company’s bankers on specified movables for securing borrowings for working capital requirements. The debentures have been fully repaid during the year and the charges have also since been vacated. [repayable within one year Rs. Nil (Previous year Rs.48.124 Millions)]. 2. Loans and
advances from banks: Cash/ other credit facilities from banks amounting to Rs.1759.730 Millions (Previous year Rs.618.651 Millions) are secured by way of hypothecation of stocks of raw materials, work in progress, finished goods, stores and spares, packing material, goods at port/in transit/under shipment, outstanding money, book debts, receivables and other current assets of the Company, both present and future. These loans are further secured by a second charge on all the immovable properties of the Company, both present and future. 3. Rupee term loans
from banks comprising: Amounts aggregating Rs.2137.101 Millions (Previous year Rs.1938.520 Millions) are secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of Banks and Financial Institution for securing rupee and foreign currency term loans. Amounts aggregating Rs614.797 Millions (Previous year Rs.56.815 Millions) availed from banks are secured by first specific charge over the specific assets purchased under the loan agreement for thermal power project of the Company. Amounts aggregating Rs.37.500 Millions (Previous year Rs.117.500 Millions) are secured by way of subservient charge on the current and fixed assets of the Company. Amounts aggregating Rs.26.250 Millions (Previous year Rs. Nil) are secured by way of subservient charge on the moveable fixed assets of the Company. Working capital term loans aggregating Rs.573.767 Millions (Previous year Rs.623.200 Millions) are secured by way of first charge on the Company’s entire fixed assets ranking pari passu with other banks. 4. Foreign currency
term loans from banks comprising: Amounts aggregating Rs.61.457 Millions (Previous year
Rs.547.463 Millions) are secured by equitable mortgage on all the immovable
properties (excluding land in the state of Gujarat) by way of deposit of
title deeds and hypothecation of movable assets of the Company (save and
except book debts and assets exclusively hypothecated to Banks and Bodies
Corporate) including movable machinery, machinery spares, tools and
accessories, both present and future, ranking pari passu with the charges
created / to be created in favour of banks and financial institution for
securing rupee and foreign currency term loans. Amounts aggregating
Rs.2399.184 Millions (Previous year Rs.2806.357 Millions) availed from a bank
are secured by first pari passu specific charge on the equipment purchased
under this agreement for the Company’s polyester expansion project and a
first charge on the land situated at Mehsana, 5. Other loans and
advances: Rupee term loan from others of Rs.250.138 Millions (Previous year Rs.380.555 Millions) is secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari passu with the charges created/ to be created in favour of Banks and Financial Institution for securing rupee and foreign currency term loans. Foreign currency term loan from others of Rs.778.033 Millions (Previous year Rs.1001.667 Millions) are secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to Banks and Bodies Corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari passu with the charges created/ to be created in favour of Banks and Financial Institution for securing rupee and foreign currency term loans. Amounts aggregating Rs. Nil (Previous year Rs.35.846 Millions) is secured by first ranking floating charge on the equipment purchased under the loan agreement. [Loans and advances from banks and others aggregating Rs.2781.597 Millions (Previous year Rs.2288.619 Millions) are payable within one year]
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Banking
Relations : |
Satisfactory |
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Financial Institution : |
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Auditors : |
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Name : |
S.R.
Batliboi and Company Chartered Accountant |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
185000000 |
Equity Shares |
Rs.10/- each |
Rs.1850.000 millions |
Issued and
Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
151822242 |
Equity Shares |
Rs.10/- each |
Rs.1518.222 Millions |
|
|
Total |
|
Rs.1518.222 Millions |
Notes:
Of the above:
- 325,200 were issued as fully paid up otherwise than for cash, issued pursuant to a contract (Previous year 325,200 shares).
- 22,927,269 were allotted as fully paid up bonus shares by capitalisation of share premium account (Previous year 22,927,269 shares).
- 10,531,360 are outstanding against 1,316,420 Global Depository Receipts (GDR), each GDR comprising 8 underlying fully paid up equity shares of Rs.10 each (Previous year 10,531,360).
- 20,000,000 were issued during the year 2007-08 as fully paid up
shares to shareholders of erstwhile Indo Rama Petrochemicals Limited,
pursuant to a scheme of amalgamation, for consideration other than cash.
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 |
1518.222 |
1518.222 |
1518.265 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.00 |
|
|
3] Reserves & Surplus |
3568.771 |
3636.185 |
4817.045 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
5086.993 |
5154.407 |
6335.310 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
8660.227 |
8758.787 |
9586.204 |
|
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2] Unsecured Loans |
50.383 |
1375.173 |
1375.210 |
|
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TOTAL BORROWING |
8710.610 |
10133.960 |
10961.414 |
|
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DEFERRED TAX LIABILITIES |
1394.699 |
1400.002 |
1928.626 |
|
|
|
|
|
|
|
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TOTAL |
15192.302 |
16688.369 |
19225.350 |
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APPLICATION OF FUNDS |
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|
|
|
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|
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FIXED ASSETS [Net Block] |
14628.830 |
16625.700 |
17652.562 |
|
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Capital work-in-progress |
67.453 |
33.755 |
37.262 |
|
|
Foreign currency monetary item translations |
7.356 |
21.474 |
0.000 |
|
|
|
|
|
|
|
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INVESTMENT |
172.355 |
171.686 |
175.923 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2892.069
|
1691.590
|
3754.544
|
|
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Sundry Debtors |
851.608
|
688.529
|
1116.597
|
|
|
Cash & Bank Balances |
194.345
|
264.641
|
163.583
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2421.165
|
2845.455
|
3282.386
|
|
Total Current Assets |
6359.187
|
5490.235
|
8317.110
|
|
|
Less
: CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry
Creditors |
3514.101
|
2532.455
|
3467.267
|
|
|
Current Liabilities |
2376.395
|
2987.592
|
3132.482
|
|
|
Provisions |
152.383
|
134.434
|
357.758
|
|
Total Current Liabilities |
6042.879
|
5654.481
|
6957.507
|
|
|
Net Current Assets |
316.308
|
(164.246)
|
1359.603
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
15192.302 |
16688.369 |
19225.350 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
25260.484 |
24444.843 |
25577.266 |
|
|
|
Other Income |
305.265 |
222.138 |
1251.332 |
|
|
|
TOTAL (A) |
25565.749 |
24666.981 |
26828.598 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw materials consumed |
19293.545 |
16069.685 |
20713.353 |
|
|
|
Goods for trading |
224.231 |
188.310 |
0.000 |
|
|
|
Personal Expenses |
0.000 |
0.000 |
521.143 |
|
|
|
Operating and other expenditure |
4135.865 |
5108.225 |
3538.613 |
|
|
|
(Increase)/decrease in finished goods and work in progress |
(482.600) |
2131.228 |
(544.968) |
|
|
|
Increase/(decrease) in excise duty on stocks of finished
goods and waste |
56.646 |
(178.186) |
27.296 |
|
|
|
Other Expenses |
0.000 |
162.012 |
0.000 |
|
|
|
TOTAL (B) |
23227.687 |
23481.274 |
24255.437 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2338.062 |
1185.707 |
2573.161 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
770.395 |
1137.898 |
1028.816 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1567.667 |
47.809 |
1544.345 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1491.469 |
1514.748 |
1473.267 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
76.198 |
(1466.939) |
71.078 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
4.873 |
326.583 |
40.875 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
71.325 |
(978.344) |
30.203 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
780.214 |
1746.527 |
1869.891 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer from debenture redemption reserve
|
12.029 |
12.031 |
24.063 |
|
|
BALANCE CARRIED
TO THE B/S |
863.568 |
780.214 |
1924.157 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
4936.024 |
3475.391 |
4052.530 |
|
|
|
Other Earnings |
30.127 |
30.862 |
19.105 |
|
|
TOTAL EARNINGS |
4966.151 |
3506.253 |
4071.635 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
9606.467 |
6431.097 |
5970.954 |
|
|
|
Packing Material |
19.842 |
0.000 |
0.000 |
|
|
|
Stores & Spares |
108.445 |
86.454 |
85.762 |
|
|
|
Capital Goods |
12.864 |
2.151 |
13.243 |
|
|
TOTAL IMPORTS |
9747.618 |
6519.702 |
6069.959 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.47 |
(6.44) |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
5926.900 |
7283.100 |
6583.000 |
|
Total Expenditure |
5466.600 |
6706.900 |
5372.700 |
|
PBIDT (Excl OI) |
460.300 |
576.200 |
1210.300 |
|
Other Income |
60.900 |
19.600 |
4.600 |
|
Operating Profit |
521.200 |
595.800 |
1214.900 |
|
Interest |
146.200 |
155.100 |
134.300 |
|
Exceptional Items |
(192.600) |
0.000 |
0.000 |
|
PBDT |
182.400 |
440.700 |
1080.600 |
|
Depreciation |
370.000 |
378.100 |
375.700 |
|
Profit Before Tax |
(187.600) |
62.600 |
704.900 |
|
Tax |
(62.300) |
20.800 |
234.100 |
|
Profit After Tax |
(125.300) |
41.800 |
470.800 |
|
Net Profit |
(125.300) |
41.800 |
470.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
0.29
|
[3.97]
|
0.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.30
|
[6.00]
|
0.28 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.36
|
[6.63]
|
0.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.01
|
[0.28]
|
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.90
|
3.06
|
2.83 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.05
|
0.97
|
1.20 |
|
|
|
|
|
|
LOCAL AGENCY FURTHER INFORMATION
HISTORY
Incorporated in Apr.'86, Indo Rama Synthetics (
In Sep.'93, IRSIL issued FCDs to part-finance its Rs 55.500 Millions
expansion-cum-backward integration project to manufacture partially oriented
yarn (POY) and polyester staple fibre (PSF) at Butibori, near
IRSIL has technical collaborations with Chemtex International, US, and M/s
Dupont, US, and barmag, Germany, for the POY and polyester chip projects; and
Toyobo, Japan, for the PSF project. IRSIL exports its products to the
The new plant for manufacture of PSF at
The company successfully commissioned the mini expansion for PFY/FDY capacity
by 70 tonnes per day (25000 p.a and DTY capacity by 27 tonnes per day (9800
tonnes p.a). The total cost of the project was Rs.480 Millions. This project
was funded by DEF Euro loan of Rs.260 Millions, SBI Yen loan of Rs.170 Millions
and the rest through internal accruals.
As a restructuring measure the company has de-merged its spun yarn business
into a separate company, Indo Rama Textiles Limited while retaining its
polyster business with itself. This de-merger was done after securing necessary
approvals from the Shareholders of the company. Pursuant to this de-merger
shareholders were allotted 20 shares in IRTL for every 100 shares held in the
company while continuing to hold 80 shares in the company.
As a step towards leveraging information for value creation, the Company has
re-built its information backbone around an ERP application by implementing SAP
R/3 package that links all business activities of the organisation. The Company
also plans to focus on strategic IT initiatives like E-enabling, supply chain
management and CRM. It is exploring new markets in Latin America,
During 2005-2006, the company has taken up expansion of Polyester production
capacity from 800 tonnes per day to 1600 tonnes per day for both Polyester
Staple Fibre and Partially Oriented Yarn. The expansion is expected to complete
in a phased manner from June, 2006 onwards. After this expansion the Polyester
capacity of the Company will increase to around 6, 00,000 tpa. at a single
location in Butibori,
The company’s production capacity of Draw Texturised Yarn, Draw Twisted Yarn,
Polyester Staple Fibre, Polyester Chips and Polyester Filament Yarn stood at
32025 tpa, 132300 tpa, 52500 tpa and 126000 tpa respectively.
COMPANY OVERVIEW
Leveraging its inherent strengths and embarking on a series of strategic
initiatives, the Company did quite well even in this difficult year,
successfully facing and tiding over the challenges triggered by the global
recessionary trends and adverse forex movements. Despite the pressures on both
demand and supply, the Company has reported positive operating profits while
retaining its leading market position in Polyester, on the back of its
pro-active strategy and domestic orientation.
The year saw the Company effectively tackle the diverse challenges that
threatened to derail its growth trajectory, especially in the second and third
quarters of FY09. The year gone by across the world has been marred by the
economic, industry and market turbulence coupled with forex volatility. This,
did impact the Company's plans and projections but did not cause any dent to
customer confidence in the Company's operational strengths.
Severe volatility in crude oil prices, which affected the Company's two
key raw materials - PTA and MEG, which are both crude oil-derivatives - was one
of the biggest challenges that the Company faced during the year. However, the
Company successfully hedged some of its losses by optimising its dependence on
exports, which accounted for only 14% of the company's revenues during the
year.
Another key initiative undertaken by the Company to counter the adverse
market condition was a change in strategy from production driven to
customer-driven: making products oriented to customer needs and requirements.
Product and customer additions, along with market expansion within and outside
the country, boosted the Company's growth during FY09. This has also led to
substantial reduction in the finished goods inventory in the company.
Concurrently, the Company strengthened its risk management systems,
handling every function of its business at the most optimal levels, thus enhancing
productivity to the maximum extent possible. As a result of these far-sighted
and strategic initiatives, coupled with some prudent cost-cutting measures, the
Company succeeded in reversing the negative trends of the first three quarters
during the fourth quarter of the fiscal, reporting increased capacity
utilization, higher volumes and an improvement in margins.
The good performance of the Power business, which contributed 50% to the
Company's profitability, further boosted the Company's growth during FY09.
Global Textile and
Clothing Trade Overview
The toughest time seems to be behind us and global demand is seeing some recovery. The signs of recovery supported by rebound global activity due to accelerating world trade, industrial production and growing retail purchases have weathered the unseen difficult business climate across globe.
The global demand contracted by 0.5% in 2009 due to
recessionary trend in Q1-Q3 2009 and a positive Q4 2009. The Advanced Economies
declined by more than 3%, whereas, the Emerging Economies posted a modest
growth of 2.5% in 2009, led by
In the year 2009 for Advanced Economies the Imports and Exports dropped by -12% and -11.7%, whereas, in Emerging and Developing Economies Imports and Exports fell by -8.4% and -8.2%, respectively, as per the IMF Estimates. The economy showed some signs of recovery as exports moved up and global trade revived in Q3 and Q4 of 2009.
The sharp erosion in wealth of individual and firms forced
them to reduce the spending on all types of goods. The primary reason slump in
global demand resulted in world trade of commodities contraction by11-12% as
per WTO initial estimates. The major Textile and clothing markets-USA and
The world textile and clothing trade is no exception and is estimated to have declined in the year 2009 by 5% at US$ 581bn. The global textile and garment industry considerably slowed down due to global financial crisis. The demand dropped drastically in major textile markets as retail purchasing slowed down. The quarterly growth of global textile and clothing in terms of percentage change shows the drop in trade volume.
Global Textile and Clothing Growth
Source: WTO 2009 Press Release Mar10, Q4 2009 Estimates
China continues to dominate the global exports in Textiles and Clothing. Today
The major markets of
The focus on developing new markets like
Global Fibre Demand
The global fibre demand is estimated at 70.5Mn tons up by 4.4% from 67.5Mn tons in 2008-09.Man made fibres up by 4.6% to 44.1Mn tons and Natural fibres up by 4.6% to 26.4Mn tons. The share of man made fibres in all fibres is steadily increasing from 61% in 2007 to 63% in 2009. In natural fibre, cotton consumption is projected at 25.2Mn tons up by 5.4% from 2008-09. The other natural fibres like Wool and Silk consumption however declined. The average per capita consumption of all fibres is 10.4 kg corresponding to 6.8bn population. The world fibre is projected to grow @ 5% on Y-O-Y in the period 2010-15 owing to normalcy in world economic growth.
Global Yarn and
Fabric
The global yarn and fabric continue to show impressive
recovery baring Q1 2009/10 in the backdrop of increased industrial output in
world and faster pace of economic recovery in
The affect of financial crisis that started in June 2008 continued to be felt in Q1 2009 and resulted in significant lower world output of yarns and fabrics. In Q2, Q3 and Q4 FY10, strong rebound was seen as production continued to rise from the levels of Q1 2009/10.
With three quarters of 2009/10 showing positive growth, the
year 2010/11 is likely to see an impressive growth in yarn and fabric
production. In Asia, especially
The growth in fibre production is again led by Polyester at 5.3%, followed by Acrylic at 4.4% and Viscose at 3.7%.The growth could have been more but for negative growth in Cotton at -4.8% and Polypropylene at lowest with -6.5%. Growth of all fibres is shown in Table 4.
Cotton
The Global cotton fibre production as per Saurer estimates declined to 22.3 Mn tons by 4.8% in 2009/10 compared to previous year 23.5 Mn tons. This is the second consecutive year loss of -4.8%. In the year 2008/09 also the production loss was -9.6% when compared to 2007/08. On the demand side, cotton fibre consumption is estimated to be 5.4% up at 25.2 Mn tons from 23.9 Mn tons in 2008/09. The demand is likely to outpace production for the year 2010/11 and would result in low stock to use ratio. The world cotton production in 2010/11 is predicted at 24.2 Mn Tons (ICAC).
The surge in consumption is likely to push the cotton fibre prices to an all time high. An increase of 10% is estimated at 82 cents / lb in 2010/11 from current 75 cents / lb.
Polyester
The Polyester fibre dominance continued unabated in 2009/10
also. The production of Polyester fibre grew by 5.3% largely driven by Asian
countries. This signifies the robust demand Polyester fibre enjoys in
applications. Polyester accounts for 45.2% of the total fibre production and
79% of the Synthetic Fibre production.
Polyester Filament Yarn recorded strong growth of 5.7% to
19.3 Mn Tons.
All Asian countries including
Indian Textile
Industry
Fibre
At an estimated Indian population of 1.15bn per capita
consumption of all fibre works out at 7.1kg, up from6.8/kg in 2008/09. The
polyester per capita consumption is up at 2.34 kg in 2009/10 whereas in 2008/09
it was 2.2 kg. The Polyester fibre increased its share in
It can be seen that cotton fibre per capita consumption at
4.3% in 2009/10 in
Yarns and Fabrics
The revival of export orders in yarns and fabrics including RMG propelled the growth in 2009/10. In addition, growing domestic demand provided the much needed stability.
The year 2009/10 saw marginally less growth in 100% cotton yarn as compared to Blended and 100% Non cotton yarn. The cotton share in yarn declined from 49% to 48% in yarn production and in fabric category, 100% cotton share declined from 74% to 73.3%.
The latest survey of ITMF of cost in textiles manufacturing reveals that India has the lowest cost in manufacturing of Ring Spun yarns, Knitted Ring yarns fabrics, Weaving of Ring yarn Fabrics, while coming second lowest in Rotor spinning and Texturizing. The lower cost compared to Brazil, Turkey and other countries is a big plus for Indian Textile Industry and should be capitalized to bring double digit growth achieved never so far. The textile industry’s current estimated size is US$ 55 bn. The domestic size is US$ 35 bn and Exports US$ 21 bn. The lower cost, economies of scale, efficient supply chain management. Various promotional measures of the Government of India and a mass growing domestic consumption base are key growth factors for Indian Textile Industry. An average growth of 15% onY-O-Y basis from 2010 to 2015 would see Indian Textile Industry cross US$110 bn mark from present estimated US$ 55 bn. The domestic and Exports industry is likely to double to US$ 70 bn and US$ 40 bn respectively. (Industry Intelligence)
Sector Outlook:
Polyester
Polyester Demand in 2009/10 is up by 5.7% due to polyester price competitiveness over competition fibres and growing domestic demand. The recovery in economy improved the overall textile sentiments. Polyester fibre made further inroads into cotton belts due to higher cotton prices.
The estimated demand of Polyester fibre is seen at 2.33 Mn tons in 2009/10 against 2.21Mn tons in 2008/09.The production is estimated at 2.69 Mn tons in 2009/10 against 2.49 Mn tons in 2008/09, a growth of 8.0% largely due to capacity addition in PFY sector and higher utilization rates. The capacity also increased by 7.1% from 3.5 Mn tons to 3.75 Mn Tons. All the capacity addition was in PFY only. At an estimated capacity of 3.75Mn tons, operational efficiency works out to be 72%.
The Polyester fibre outlook remains positive due to consistent demand seen in various Wearable and Industrial applications, rising young population and richer middle class. With the outlook of domestic Textile industry stable, Polyester growth will be supported by growing domestic demand, pick up in Export demand and expansion of technical textiles market.
The operational rates are estimated to improve to 80% in
2010/11 from current 72%. The capacity of Polyester fibre is set to cross 4.0Mn
Tons in 2010/11 with further addition in PFY Capacity.
Polyester Filament
Yarn
The country’s PFY production estimated at 1.81 Mn tons in 2009/10 is up by 5.2% against 1.72 Mn tons in 2008/09. The PFY production of 1.81 translates into 67.3% production of total domestic Polyester fibre production. The operational capacity of PFY in 2009/10 is 70%, down from previous year of 73% in 2008/09. The shortage of raw material took the toll on operational rates of PFY.
The demand of PFY stood at 1.66 Mn tons up by 4.8% from the previous 2008/09. This demand translates into a share of 71% of the total Polyester fibre in country. The country’s PFY Exports are estimated at 0.112 Mn tons, nil growth as compared to 2008/09.
The estimated capacity addition of 0.39MnTons in PFY is based on the likely growth at CAGR of 10-12% for the period 2010-2012 due to envisaged growth of 8-9% in dress material and apparel and 15% in home textiles and Industrial applications.
Polyester Staple
Fibre
Polyester staple fibre production is estimated at 0.882 Mn Tons, a robust growth of 14.5%. The higher cotton prices, improved domestic demand and growth in fibre exports led to better operational rates at 76% in 2009/10, higher by 9% as compared to 2008/09. The share of PSF stands at 32.7% in total polyester fibre production in the country.
PSF demand grew by 7.2% to 0.67 Mn tons from 0.625 Mn tons in 2008/09. The higher spindle utilizations in Man made fibre/Cotton spinning industry, renewed demand of Polyester based spun yarns in domestic and exports, higher Blended and 100% Non cotton fabric production and improved contributions per spindle led the growth of
PSF. The demand of 0.67Mn Tons represents 76% of the country’s PSF Production. The export of PSF is estimated at 0.15MnTons, an increase of 25% from 2008/09.
The outlook of PSF is positive and is estimated to grow at CAGR of 8-10% for the period 2010/12. The improved stability and higher operational rates of spinning mills, substitution effect due to shortage of quality cotton, thrust in Wearable applications and growth in Non wovens are key drivers for PSF growth.
Production and Sales
Indo Rama‘s total production for all products PSF, POY, FDY, Chips and DTY for the year 2009/10 stands at 416,820 MT. This represents an increase of 13.4% over the previous year 2008/09. The Polyester fibre (PSF/PFY) total production stands at 362,652MT and contributes 87% of the total company’s production. The company produced 13.5% of the country’s total Polyester fibre production.
Indo Rama’s total sales for all products stands at 370,191MT, corresponding to Rs. 24728.1Mn for the year 2009/10. The over all sales increased in terms of value by 3.3% and in quantity terms by 1.3% over the previous year 2008/09. The domestic sales contributed 78.5% and exports contributed 21.5% of the total sale of FY10. The Polyester fibre total sale stands at 317,017 MT and contributes 85.6% of the total company’s sale of Polyester products. The polyester (PSF & PFY) sales recorded 5.8% growth in terms of quantity and 8.3% in terms of value.
The domestic sale of 298,523MT of PSF/PFY translates into 13% market share. The company aims to improve its market share to 15% in FY11.
The company’s exports improved by 41% from the previous year in terms of quantity. Total exports quantity for 2009/10 is 79,800 MT against 2008/09’s figure of 56501 MT. In value terms, exports cloaked Rs. 5088Mn in 2009/10 against Rs. 3663.1Mn in 2008/09, an impressive increase of 39%.
Polyester Filament
Yarn
The company’s PFY Sale for the year 2009/10 stands at 135,179MT with a sale value of Rs. 9198Mn. The PFY Segment contributed 37.2% of the total revenue for the year 2009/10. The domestic market share of PFY in a highly competitive and price sensitive market stands at 9%.
Polyester Staple
Fibre
The company’s PSF Sale for the year 2009/10 stands at 181,838MT with a sale value of Rs. 1167Mn. The PSF Segment contributed 47.2% of the total revenue for the year 2009/10. On domestic front PSF recorded a growth of 13% increase in sales on Y-O-Y basis. The domestic market share of PSF stands at 22% in FY10.
New Products
PSF
- Two new products were launched successfully in the domestic market. In micro denier series 0.9d with special properties was introduced for Cotton like feel fabric.
- Product for Fibre dyeing and Melange Yarn was successfully launched in 1.4.
- Non woven product 1.2 and 1.5 further consolidated in Domestic and Export Markets.
PFY
- 160/144 was introduced with end use as Dress material and Ladies Inner wear comfort product.
- 500/216 was successfully launched for usage in Home Textiles and Suiting Applications.
Marketing Strategy
FY10 saw the company focussing on strategic planning and
value driven sales across all products with direct customer contacts. The SOP
driven procedures in all disciplines, customer centric approach and focus on
efficient supply chain management along with customer retention sales policies
saw Indo Rama seeing growth in company’s sales with enhanced value. The company
changed gears and further streamlined exports across continents developing new
customers. The company’s product presence reached Latin America,
PTA
PTA became very volatile from the beginning of this year itself and the prices started rising and fluctuating downwards after 2 months and trend was the same for next 2 months also before going down again in September 2009 but subsequently its price went up around $ 960 in March 2010.
The availability of PTA worldwide as well as from domestic
suppliers was short due to delay in start up of new plants. Also new capacities
in
The availability of PTA during the next year is likely to
ease as the new plants of PTA world wide particularly in
MEG
MEG prices started moving up from the lowest levels of March
09 price of $440 from April only and zoomed to a level of $1000 by January 2010
and only after that prices started easing up as new capacities in MEG and due
to lower capacities utilisation of Polyester Plants. The company added another
supplier from the
The Middle East capacities and plants in
Power Business
During Financial Year 2009-10, Indo Rama’s power division focused on expansion projects primarily to gain from existing inherent capacities of the system by way of overall cost cutting on fuel. 11 MW TG projects was initiated to produce additional power from the existing inherent capacity of the boiler and to replace costly DG power. Coal linkage for a new 30 MW power project was obtained. However, this was later revised to 45 MW rating based on techno-economical reasons and revised coal linkage application for the same is in process.
50 MW solar power generation project in Rajasthan was registered under National Solar Mission Program of Government of India. Installed capacity for power generation as of March 31, 2010 is 82.5 MW. This comprises of 52.5MWDiesel Generating Sets (DG) based on furnace oil and 40 MW of Co-gen captive facilities based on coal.
Key operating figures obtained by Indo Rama are superior to national average for captive utilities such as :-
1. PLF obtained by CPP :- 95.61%
2. PLF obtained by DG set :- 52.52%
3. % Power sold to Grid :- 47% of generation
Coal linkage for the operating plant is secured from Western Coalfields Limited (WCL) and thus coal comes from nearby coal fields at Ukni, Colar Pimpri, New Majri and Mangoli etc., and also from E-auction supplier of WCL.
DG sets and coal based units together have been generating on an average around 75MWplus, varying quantity of steam and DM Water for process plant as per the need.
Indo Rama has surplus generating capacity varying from time to time depending upon internal consumption and such excess capacity of power is sold to third parties through Power Trading Companies and MSETCL / MSEDCL to generate additional revenue.
Opportunities in
Power
As also informed last year, Indo Rama continues to Endeavour in the enhancing of power generation capacity, so as to reduce the overall power cost of Polyester production and increase the profit of Polyester SBU. Besides, the additional/surplus power from the system would generate additional revenue by selling through various Power Trading Companies and MSETCL / MSEDCL or National Transmission Grid.
Indo Rama is working on some power business entry strategies of various capacities in thermal and renewable energy area; in line with on-going government policies so as to obtain best economic advantage and better image to the organization as also to help the Nation in it’s long term power generation capacity building program.
Operational and
Financial Review
During the year, the Company recorded gross sales of Rs.26594.000 millions and net sales of Rs.25260.000 millions representing a marginal increase of 3.3% as compared to the previous year which is considered satisfactory considering the effect of the economic downturn. EBIDTA is up at Rs.23380.000 millions as against Rs.1348.000 millions last year representing an increase of 73.4%. Profit before Tax stood at Rs.76.200 Millions against a loss of Rs.1466.940 millions for the previous year. There is net profit of Rs.71.320 million as against a loss of Rs.978.34 million last year. The turnaround in profits was possible due to cost competitiveness, optimal utilization of resources and reduction in interest cost.
The year gone by was not only challenging but was also
successful in certain terms after the global economic meltdown. After the steep
fall in demand due to economic downturn came the phase of demand stability.
There are signs of demand growth in the domestic market and there are also
indication of recovery happening in the
Exports have started picking up and the manufacturing sector is witnessing better realization and improved margins. The stimulus package announced by the government in 2008 to counter the global recessionary onslaught had substantially achieved the desired objective. Symptoms of economic recovery had started appearing more clearly, hence government decided to partially roll back stimulus package in February 2010. For textile industry, the stimulus package was withdrawn from July 2009 which impacted the textile industry and the Company for quite sometime. With the cotton prices ruling at significantly high level, the relative position of polyester amongst competing fibres will lead to better off take of polyester products.
The Power business continues contributing to both revenue and profitability. The demand supply gap of power in our country for the coming several years shall keep us in good stead in the arena.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31.12.2010
Rs. In Millions
|
Particulars |
Third quarter ended 31.12.2010 (Unaudited) |
Nine Months 31.12.2010 (Unaudited) |
|
Gross Turnover |
7012.100 |
20792.700 |
|
Less: Excise Duty on sales |
493.300 |
1378.200 |
|
Net Turnover |
6518.800 |
19414.500 |
|
Other Operating Income |
64.200 |
194.600 |
|
Total Income |
6583.000 |
19609.100 |
|
Expenditure |
|
|
|
(a) (Increase)/decrease in Stock in Trade and work in progress |
(164.900) |
195.900 |
|
(b) Consumption of Raw Materials |
4508.500 |
13998.200 |
|
(c) Purchase of traded goods |
-- |
43.100 |
|
(d) Employees Cost |
161.800 |
469.000 |
|
(e) Depreciation |
375.700 |
1123.800 |
|
(f) Other Expenditure |
867.300 |
2848.500 |
|
Total |
5748.400 |
18678.500 |
|
Earning before other Income Interest |
834.600 |
930.600 |
|
Other Income |
4.600 |
84.900 |
|
Profit before Interest and Tax |
839.200 |
1015.500 |
|
Interest |
134.300 |
435.600 |
|
Profit before Tax |
704.900 |
579.900 |
|
Provision for Taxation |
|
|
|
- Income Tax (MAT) |
116.500 |
116.500 |
|
- Less: MAT Credit Entitlement |
(116.500) |
(116.500) |
|
- Deferred Taxation |
234.100 |
192.600 |
|
- Total Tax Expense |
234.100 |
192.600 |
|
Profit after Tax |
470.800 |
387.300 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
1518.200 |
1518.200 |
|
Reserves (Excluding Revaluation Reserves) |
-- |
-- |
|
EPS for the period
(not annualised) (Rs.) |
|
|
|
-Basic |
3.10 |
2.55 |
|
-Diluted |
2.88 |
2.49 |
|
Total Public Share Holding (including Global Depository Receipts) |
|
|
|
- Number of Shares |
55426263 |
55426263 |
|
- Percentage of shareholding |
36.51 |
36.51 |
|
Promoters and Promoter group share holding |
|
|
|
a) Pledged / Encumbered |
|
|
|
- Number of Shares |
6202000 |
6202000 |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
6.43 |
6.43 |
|
- Percentage of shares(as a % of the total share capital of the company) |
4.09 |
4.09 |
|
b) Non-encumbered |
|
|
|
- Number of Shares |
90193979 |
90193979 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
93.57 |
93.57 |
|
- Percentage of Share (as a % of the total share capital of the company) |
59.40 |
59.40 |
Reporting
of segment wise revenue, results and capital employed under clause 41 of the
listing agreement for the quarter and nine months ended 31.12.2010
Rs.
In Millions
|
|
Particulars |
Third quarter ended 31.12.2010 (Unaudited) |
Nine Months 31.12.2010 (Unaudited) |
|
1 |
Segment revenue
(net sales/income) |
|
|
|
|
a) Segment – polyester |
6565.300 |
19292.700 |
|
|
b) Segment – power |
314.800 |
1251.400 |
|
|
c) Unallocated |
0.400 |
0.600 |
|
|
Total |
6880.500 |
20544.700 |
|
|
Less: Inter segment revenue |
297.500 |
935.600 |
|
|
Net sales/income from operations |
6583.000 |
19609.100 |
|
2 |
Segment results
profit before interest and tax from each segment |
|
|
|
|
a) Segment – polyester |
867.800 |
942.800 |
|
|
b) Segment – power |
32.000 |
178.800 |
|
|
Total |
899.800 |
1121.600 |
|
|
Less: |
|
|
|
|
i. Interest |
134.300 |
435.600 |
|
|
ii. Other unallocable expenditure net of unallocable income |
60.600 |
106.100 |
|
|
Total profit
before tax |
704.900 |
579.900 |
|
3 |
Capital employed
(segment assets – segment liabilities) |
|
|
|
|
a) Segment – polyester |
10918.700 |
10918.700 |
|
|
b) Segment – power |
1913.000 |
1913.000 |
|
|
c) Unallocated |
(7904.500) |
(7904.500) |
|
|
Total |
4927.200 |
4927.200 |
Notes:
1. The results for
the quarter and nine months ended 31.12.2010 have been reviewed by the Auditors
and were taken on record at the Board of Directors Meeting held on 14 February
201 1.
2. The Company has
allotted 20,000,000 (Two Crore) Fully Convertible Preferential warrants (FCPs)
to promoters on 09.11.2010 at Rs.40.60 per warrant as per Securities Exchange
Board of India (Issue of Capital and Disclosure Requirements) Regulations 2009.
An amount of Rs. 10.15 per
warrant has been received on allotment and balance amount of Rs. 30.45 per
warrant is payable on conversion of warrants into equity shares within a period
of 18 months from the date of allotment. Upon conversion, one warrant will be
converted into one fully paid equity share of Rs.10 and amount of Rs. 30.60
will be adjusted towards share premium account.
The Company has also
approved in its Annual General Meeting, issuance of shares to qualified
institutional buyers upto an amount of rupees two hundred crores.
3. There was no
investor complaint pending at the beginning of the quarter. During the quarter
ended 31.12.2010, 11 investor
complaints were received and all the 11 complaints were suitably disposed-off
and no complaint was pending as on 31.12.2010.
4. The Company has
declared an interim dividend of 10% amounting to Re 1 per share (nominal value
Rs. 10 per share) which is payable to all the shareholders of the Company whose
names appear in the register of members as on 24.02.2011. The payment of
dividend through ECS and posting of warrants will be made on 07.03.2011.
5. Previous period
figures have been regrouped / recast, wherever necessary, to make them
comparable.
FIXED ASSETS:
- Land
(Freehold and Leasehold)
- Roads and
Buildings
- Plant and
Machinery
- Furniture
and Office Equipments
- Vehicles
- Software
AS PER WEBSITE DETAILS
PROFILE:
The history of Subject dates back to 1989, when it first forayed into
the business of polyesters. Believing that polyester was going to be the fibre
of the future, the commitment and perseverance over the years by the company
has today resulted in an undisputed leadership position for it in the Indian
polyester arena. A leading manufacturer and supplier in the country's fast
growing polyester sector since the last two decades, Subject has emerged as
The Company offers a wide range of polyester products which include Polyester
Staple Fibre (PSF), Partially Oriented Yarn (POY), Draw Texturised Yarn (DTY),
Fully Drawn Yarn (FDY) and Polyester Chips.
Equipped with a state-of-art integrated manufacturing complex at Butibori near
Driven by the passion to seek new challenges, Indo Rama has recently forayed
into the power sector. Indo Rama's 82.5 MW installed capacity comprises 52.5 MW
(3x13.5 MW + 3x4 MW) of diesel generating (DG) sets and 40 MW of co-gen captive
facility based on coal, giving 30 MW electricity. The Company's combined power
generation capabilities are integrated into a common power supply pool, from
which required amount of power is fed for internal use and the surplus is sold
to external agencies.
The Indo Rama Group has a strong presence in
Awards
|
Year |
Achievement |
Category |
Governing Body |
|
2008-09 |
National energy conservation award -2008 Over all export performance award |
First prize Second prize |
Ministry of Power, Government of SRTEPC |
|
2007-08 |
Excellence in water management 2007 National energy conservation award in the petrochemicals sector |
National Award Second prize |
CII Ministry of Power, Govt. of |
|
2006-07 |
“Best export performance” for exports to focus African countries Excellence in water management 2006 Leadership & excellence award in safety, health & environment |
Gold National Award - |
SRTEPC CII CII |
|
2005-06 |
Special category “Best export performance” for exports to ‘Focus Lac’ countries Man-made fibre yarn blended with natural fibre State level energy conservation Leadership & excellence award in safety, health & environment |
Bronze Gold Gold - - |
SRTEPC SRTEPC SRTEPC MEDA, Pune CII |
|
2004-05 |
State level energy conservation Excellence in water management 2004-05 Sourcing excellence Outstanding contribution to the State of |
- National Award Corporate excellence award Udyog Ratna Award - Mr. O.P. Lohia, CMD |
MEDA, Pune CII IIMM-Ariba Inc. Govt. of Madhya Pradesh |
|
2003-04 |
Special award Excellence in water management 2003-05 Man-made fibre yarn blended with natural fibre Viscose spun yarn |
Silver National Award Gold Gold |
SRTEPC CII SRTEPC SRTEPC |
|
2002-03 |
Special award Excellence in water management 2003-05 Man-made fibre yarn blended with natural fibre Focus African countries |
Silver National Award Gold Gold |
SRTEPC CII SRTEPC SRTEPC |
|
2001-02 |
Special award Man-made fibre yarn blended with natural fibre Non-traditional markets |
Silver Gold Gold |
SRTEPC SRTEPC SRTEPC |
|
1999-2000 |
Special award Polyester spun yarn Man-made fibre yarn blended with natural yarn Man-made fibre yarn blended with natural fibre Non-traditional markets |
Gold Gold Gold Gold Gold |
SRTEPC SRTEPC SRTEPC SRTEPC SRTEPC |
|
1998-99 |
Man-made fibre yarn blended with natural yarn Non-traditional markets |
Gold Gold |
SRTEPC SRTEPC |
|
1997-98 |
Special award Man-made staple fibre Polyester filament yarn Man-made blended fibre yarn |
Gold Gold Gold Gold |
SRTEPC SRTEPC SRTEPC SRTEPC |
|
1996-97 |
Special award Man-made staple fibre |
Gold Gold |
SRTEPC SRTEPC |
|
1995-96 |
Polyester-cotton blended yarn |
Gold |
SRTEPC |
|
1994-95 |
Special award Viscose spun yarn Polyester-cotton blended yarn |
Gold Gold Gold |
SRTEPC SRTEPC SRTEPC |
|
1993-94 |
Polyester-cotton blended yarn |
Gold |
SRTEPC |
|
1990-91 |
Viscose spun yarn |
Gold |
SRTEPC |
|
1989-90 |
Viscose spun yarn |
Gold |
SRTEPC |
PRESS RELEASE:
FY 2010 Net Sales
up 3% to Rs.25260.500 millions
EBITDA up 97% to Rs.2235.400
millions
Gurgaon,
27.05.2010: Indo Rama Synthetics (
During FY 2010 Net
sales stood at Rs.25260.5 million as against Rs.24444.8 million in FY 2009.
EBITDA increased to Rs.2235.4 million from Rs.1133.9 million, a growth of 97%.
Profit after Tax for FY 2010 is Rs.71.33 million, as compared to a loss of
Rs.978.3 million in the previous year.
During the period
the total exports of the Company also improved significantly to Rs.5087.9
million as against Rs.3663.1 million in the last year.
The company is
witnessing an improved business environment marked by a combination of relative
stability in raw material prices and improvement in demand for finished goods.
Increased
capacities of PTA and MEG have enabled better availability and stability in raw
material prices. With regard to finished goods, widening interest from
relatively new segments like home and technical textiles is contributing to the
demand. Concurrently, continuing firm cotton prices despite a ban on exports is
shoring up demand for polyester.
All these
developments are expected to have a compounding positive effect on the
polyester manufacturing sector in the coming quarters.
The Power
division’s contribution to sales during the year continues to be stable with a
total sales amounting to Rs.2658.0 million as against Rs.2531.4 million in FY
2009.
Financial Results Communication
Indo Rama Synthetics
(
Highlights:
Q3 ended December 31, 2009
• Net sales up 15%
to Rs.6133.300 millions
• Operating EBITDA
increases to Rs. 494.5 millions, a growth of 474%
Nine months ended December 31, 2009
• Net sales up at
Rs.18979.4 millions
• Operating EBITDA
increases to Rs.1607.600 millions, up from Rs.31.700 millions
• PAT up at
Rs.21.000 millions, as against loss of Rs.1186.500 millions
Gurgaon, 23
January, 2010: Indo Rama Synthetics (
In the quarter
ended December 31, 2009, Net Sales was recorded at Rs.6133.300 millions, an
increase of 15% over Rs.5361.400 millions in the corresponding period last
year. EBIDTA was up 474% at Rs.494.500 millions as compared to Rs.86.100
millions in the corresponding quarter. Profit Before Tax for the quarter stood
at Rs.1.400 millions as against Loss of Rs.544.300 millions last year.
Interest cost was
brought down by 48% on account of low cost borrowings availed by the company
during the quarter.
Commenting on the
results, Mr. O. P. Lohia, Chairman and Managing Director, IRSL said, “During the
quarter we witnessed continuing higher prices of our key inputs namely PTA and
MEG on the back of a rise in crude oil prices. Considering the signs of
improvement being seen in market conditions, the resultant increase in cost
will be passed on further down the value chain.”
Press Release
Indo Rama Synthetics (
Three months Profit After Tax
at Rs. 470.800 millions from Rs. 0.900 million
Nine months Profit After Tax up
at Rs.387.300 millions from Rs. 21.000 millions
Gurgaon, 14.02.2011:
Indo Rama Synthetics (
Net sales for the
quarter stood at Rs. 6518.800 millions, an increase of 6.2% as compared to Rs.
6133.300 millions in the corresponding quarter. EBIDTA for the quarter has been
Rs.1210.300 millions as compared to Rs. 506.600 millions in the same period
last year, a marked increase of 139%. During the quarter, the Profit after Tax
was Rs.470.800 millions as against Rs. 0.900 million in the corresponding
period.
In the 9 months
ended 31.12.2010 while the net sales has been Rs.19414.500 millions as against
Rs.18979.400 millions in the previous year, the Profit after Tax for the period
has jumped to Rs.387.300 millions from Rs.21.000 millions in the corresponding
period.
The performance of
polyester business continues to be robust during the quarter with increased
demand both in the domestic and overseas markets. On the back of strong demand
growth, steep cotton prices and no further expansions in the polyester
capacities, the company could garner higher margins in its product lines and
the company is hopeful that this trend is going to continue in coming quarters
also. The concerted efforts towards cost management have further contributed to
better margins during the quarter.
The Company is
already in process of expanding its production capacity for its value added
product Draw Texturized Yarn (DTY). In this connection the company has
installed 8 new DTY machines to take its DTY capacity from the existing 43800
Tonnes Per Annum, to 64,800 Tonnes Per Annum. Further, 8 more DTY machines will
be added which will be operational in phases from July 2011 onwards and
complete by end of the year, and will take the total DTY capacity to 84000
Tonnes Per Annum.
To achieve better
cost efficiency, the company is replacing the existing heat treatment media
based on Furnace oil to coal based with project cost of Rs. 730.000 millions.
The payback period of this capex is only 2.2 years. The company is also adding
11 MW of Power to utilize the spare boiler capacity.
Keeping in view the good
performance of the company, The Board has recommended an Interim dividend of
10% to its shareholders.
Commenting on the
Results, O P Lohia, Chairman and Managing Director, said:
“The quarter has been quite encouraging, with the market continuing to
be buoyant and textile sector set for further growth. The Cotton prices will
continue to remain firm in foreseeable future which will lead to higher PSF
demand with equally remunerative prices. Our thrust on value added products and
optimization of inventory levels have contributed to our good performance.
Because of good results of the Company and bright future prospects, we have
declared an Interim dividend of 10% to all our shareholders.”
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.45.18 |
|
|
1 |
Rs.72.58 |
|
Euro |
1 |
Rs.63.13 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.