MIRA
INFORM REPORT
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Report Date : |
18.03.2011 |
IDENTIFICATION DETAILS
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Name : |
DONEAR INDUSTRIES LIMITED |
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Registered
Office : |
210, Key-Tuo Industrial Estate, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
01.01.1987 |
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Com. Reg. No.: |
042076 |
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CIN No.: [Company Identification
No.] |
U99999MH1987PLC042076 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM07028A |
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PAN No.: [Permanent Account No.] |
AAACD1688C |
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Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturer of plain and pattern woven, yarn and piece dyed suiting, trouser and shirting fabrics, from cotton, wool, viscose, polyester and blends. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (46) |
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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 2500000 |
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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. There
appears some losses being incurred by the company continuously in two years.
However, networth appears to be satisfactory. Trade relations are reported as
fair. Business is active. Payments are reported to be usually correct. 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
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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 |
LOCATIONS
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Registered Office : |
210, Key-Tuo Industrial Estate, |
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Tel No.: |
91-22-30813591 |
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Fax No.: |
91-22-28370041 |
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E-Mail : |
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Factory 1 : |
Balaji Industries, Dokmandi, Village Amli, Silvassa, Dadra and Nagar
Haveli |
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Factory 2 : |
Laxmi Lab, Government Industrial Estate, Masat, Silvassa, Dadra and
Nagar Haveli |
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Factory 3 : |
Balaji Textiles, Dokmandi, Village Amli, Silvassa, Dadra and Nagar
Haveli |
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Factory 4 : |
Umbergaon Unit, GIDC, Umbergaon, District Valsad, |
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Factory 5 : |
Balaji Fabrics, Revenue Block No. 194 and 195, Kadodara Bardoli Road,
Village Jolwa, Taluka Palsana, District Surat, Gujarat, India |
DIRECTORS
As on 31.03.2010
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Name : |
Mr. Vishwanath L. Agarwal |
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Designation : |
Chairman |
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Name : |
Mr. Rajendra V. Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. Ajay V. Agarwal |
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Designation : |
Wholetime Director |
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Name : |
Mr. Ramesh D. Tainwala |
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Designation : |
Director |
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Name : |
Mr. Durga Prasad C. Agarwal |
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Designation : |
Director |
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Name : |
Mr. Santhkumar B. Agarwal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Sreedhar H. |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
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Names of Shareholders |
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No. of Shares |
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(A) Shareholding of Promoter and Promoter Group |
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30,686,500 |
59.01 |
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8,254,000 |
15.87 |
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38,940,500 |
74.89 |
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Total shareholding of Promoter and Promoter Group (A) |
38,940,500 |
74.89 |
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(B) Public Shareholding |
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234,409 |
0.45 |
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8,274,551 |
15.91 |
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8,508,960 |
16.36 |
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655,667 |
1.26 |
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2,473,117 |
4.76 |
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1,235,459 |
2.38 |
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186,297 |
0.36 |
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161,613 |
0.31 |
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24,684 |
0.05 |
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4,550,540 |
8.75 |
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Total Public shareholding (B) |
13,059,500 |
25.11 |
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Total (A)+(B) |
52,000,000 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
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Line of Business : |
Manufacturer of plain and pattern woven, yarn and piece dyed suiting, trouser and shirting fabrics, from cotton, wool, viscose, polyester and blends. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M.L. Bhuwania and Company Chartered Accountant |
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Address : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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100000000 |
Equity Shares |
Rs.2/- each |
Rs.200.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
52000000 |
Equity Shares |
Rs.2/- each |
Rs.104.000
Millions |
Note:
Of the above shares 45,500,000 of Rs.2/- each have been
allotted as fully paid up bonus shares by capitalisation of General Reserves in
previous years.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
104.000 |
104.000 |
104.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
523.501 |
735.760 |
991.200 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
627.501 |
839.760 |
1095.200 |
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LOAN FUNDS |
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1] Secured Loans |
1899.020 |
1836.453 |
1665.300 |
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2] Unsecured Loans |
247.597 |
36.983 |
31.900 |
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TOTAL BORROWING |
2146.617 |
1873.436 |
1697.200 |
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DEFERRED TAX LIABILITIES |
0.000 |
30.002 |
0.000 |
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TOTAL |
2774.118 |
2743.198 |
2792.400 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1436.122 |
1494.952 |
662.900 |
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Capital work-in-progress |
115.092 |
275.266 |
1092.600 |
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INVESTMENT |
8.990 |
4.010 |
1.500 |
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DEFERREX TAX ASSETS |
27.077 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
769.496
|
584.206 |
480.300 |
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Sundry Debtors |
664.836
|
530.784 |
481.000 |
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Cash & Bank Balances |
33.724
|
30.779 |
72.700 |
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Other Current Assets |
111.305
|
135.284 |
4.500 |
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Loans & Advances |
196.608
|
230.018 |
304.100 |
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Total
Current Assets |
1775.969
|
1511.071 |
1342.600 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Sundry Creditors |
165.740
|
224.871 |
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Other Current Liabilities |
347.397
|
212.613 |
205.000 |
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Provisions |
75.995
|
104.617 |
102.200 |
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Total
Current Liabilities |
589.132
|
542.101 |
307.200 |
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Net Current Assets |
1186.837
|
968.970 |
1035.400 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2774.118 |
2743.198 |
2792.400 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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Income |
2428.367 |
1863.043 |
1752.200 |
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Other Income |
25.967 |
6.711 |
24.800 |
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TOTAL (A) |
2454.334 |
1869.754 |
1777.000 |
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Less |
EXPENSES |
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Cost of material |
1181.513 |
1027.279 |
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Operating and other expenses |
1029.079 |
756.911 |
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TOTAL (B) |
2210.592 |
1784.190 |
1512.300 |
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
243.742 |
85.564 |
264.700 |
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Less |
FINANCIAL
EXPENSES (D) |
123.144 |
83.053 |
36.000 |
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PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
120.598 |
2.511 |
228.700 |
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Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
359.485 |
200.134 |
66.100 |
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PROFIT BEFORE
TAX (E-F) (G) |
(238.887) |
(197.623) |
162.600 |
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Less |
TAX (H) |
(56.946) |
27.382 |
8.600 |
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PROFIT AFTER TAX
(G-H) (I) |
(181.941) |
(225.005) |
154.000 |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
386.150 |
641.574 |
NA |
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Less |
APPROPRIATIONS |
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Proposed Final Dividend |
26.000 |
26.000 |
NA |
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Tax on Dividend |
4.318 |
4.419 |
NA |
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BALANCE CARRIED
TO THE B/S |
173.891 |
386.150 |
NA |
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EARNINGS IN
FOREIGN CURRENCY |
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Export Earnings |
174.128 |
156.172 |
NA |
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IMPORTS |
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Raw Materials |
14.749 |
43.153 |
NA |
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Stores & Spares |
18.738 |
16.332 |
NA |
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Capital Goods |
45.479 |
28.068 |
NA |
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TOTAL IMPORTS |
78.966 |
87.553 |
NA |
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Earnings Per Share
(Rs.) |
(3.50) |
(4.33) |
NA |
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KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(7.41)
|
(12.03) |
8.67 |
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Net Profit Margin (PBT/Sales) |
(%) |
(9.84)
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(10.61) |
9.28 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(7.44)
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(6.57) |
8.11 |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.38)
|
(0.23) |
0.15 |
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Debt Equity Ratio (Total Liability/Networth) |
|
4.35
|
2.88 |
1.83 |
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Current Ratio (Current Asset/Current Liability) |
|
3.01
|
2.79 |
4.37 |
LOCAL AGENCY FURTHER INFORMATION
MANAGEMENT
DISCUSSION AND ANALYSIS:
Industrial
Structure and Developments:
The Indian textile industry contributes about 14 percent to industrial
production, 4 percent to the country's Gross Domestic Product (GDP) and 17
percent to the country's export earnings, according to the Annual Report
2009-10 of the Ministry of Textiles. It provides direct employment to over 35
million people and is the second largest provider of employment after
agriculture. According to the Ministry of Textiles, the cumulative production
of cloth during April 2009 to March 2010 has increased by 8.3 percent as
compared to the corresponding period of the previous year. Moreover, total
textile exports have increased to US$ 18.6 billion during April 2009 to January
2010, from US$ 17.7 billion during the corresponding period of the previous
year, registering an increase of 4.95 percent in rupee terms. Further, the
share of textile exports in total exports has increased to 12.36 percent during
April 2009-January 2010, according to the Ministry of Textiles.
As per the Index of Industrial Production (IIP) data released by the
Central Statistical Organisation (CSO), cotton textiles has registered a growth
of 5.5 per cent during April-March 2009-10, while wool, silk and man-made fibre
textiles have registered a growth of 8.2 per cent while textile products
including wearing apparel have registered a growth of 8.5 per cent.
According to the Ministry of Textiles, investment under the Technology
Upgradation Fund Schemes (TUFS) has been increasing steadily. During the year
2009-10, 1896 applications have been sanctioned at a project cost of US$ 5.23
billion. The cumulative progress as on December 31, 2009, includes 27,477
applications sanctioned, which has triggered investment of US$ 45.5 billion and
amount sanctioned under TUFS is US$ 18.9 billion of which US$ 16.4 billion has
been disbursed so far till the end of April, 2010.
Moreover, in May 2010, the Ministry of Textiles informed a parliamentary
panel that it proposes to allocate US$ 785.2 million for the modernisation of
the textile industry.
The rating agency Fitch says that the Indian textile industry, which was
hit hard by the global economic recession, is all set to witness a recovery in
2010, barring cotton textile exporters who may face another challenging year.
"There are clear signs pointing towards a recovery in
While capacity to repay loans of domestically-focused and synthetic
textile companies are expected to improve, cotton textile exporters could face
another challenging year, as their capacity to repay loans has been more
severely impacted by recession and may take longer to recover, the report said.
Fitch said demand fundamentals remain strong in the domestic textiles
sector, but spending by consumers will remain value-driven, leading to
pressures on the margins.
Against this backdrop the company
has performed well during 2009-10 with a 30% increase in the top line. In
profit front also, after accounting for a higher depreciation of Rs.360.000
Millions, the company has a healthy cash
accruals of Rs.180.000 Millions. This is a vastly improved performance compared
to 2008-09, which ended with a marginal cash loss.
They expect to improve upon this performance in the coming years and
the company will be showing more healthy
results from now on.
Opportunities
With the robust growth of the Indian Economy, the domestic demand is
surging ahead. The employment growth in
However, inflation rate, volatile forex market, and the increasing cost
of inputs are causing concern. Still with the proper cost of borrowing based on
a mix of sourcing the funds in rupee and forex, procuring materials at the
right time and proper cost, the company
should be able to surmount these problems and come up with results that will
make all the stakeholders proud.
Segment wise or
Product wise performance
The Company has one reportable segment i.e. Textiles (Manufacture of Man
made Fabrics).
Outlook
The performance of textile industry is expected to remain encouraging
and the company looks for better future with all-round expansion and
developments taking place in textile industry. The expansion project undertaken
by the company will enable the company to meet and capitalize on the
opportunity in the textile industry.
Discussion on
Financial performance with respect to operational performance.
The Sales of the Company during the year 2009-2010 is Rs.2428.367
Millions as against Rs. 1863.043 Millions in the previous year. The Net Profit
during the year is Rs. (181.942) Millions as against Rs. (225.005) Millions
during the previous year.
Expansion Plans of
Donear
Subject is to start its Phase I Yarn Dyeing, Weaving, and Processing and
Garmenting plant at
FIXED ASSETS:
- Office Premises
- Residential Building
- Plant and Machinery
- Electrical Installation
- Furniture and Fixtures
- Computer
- Vehicle
- Air Conditioner
- Office Equipments
AS PER WEBSITE
DETAILS:
COMPANY HISTORY:
The textile scenario in
Woven intricately with Mr. Agarwal's vision, foresight and
determination, the brand - Subject
was created in the significant
year of 1977, and within a short
span of time it became a household name
along with other Indian brands.
Known for its Pioneering Fabrics, Continuous Product Development and
very Strong Marketing Network, Donear persisted on building its reputation by
catering to the ever growing needs of the textile markets in India and abroad,
and thus defined new standards in the field
of fabric manufacturing along with... Excellent customer services
The Board of
Directors includes:
Mr. Vishwanath Agarwal
The Chief Promoter and Chairman of DIL started his career in textiles way back
in 1959. He has over four decades of experience and expertise in the textile
industry.
Mr. Rajendra Agarwal
The Promoter and Managing Director of DIL is a gold medallist in Textile
Technology, and has over two decades of techno-commercial experience in the
textile industry.
Mr. Ajay Agarwal
The Promoter and Executive Director of DIL is a Commerce Graduate and is well
experienced in the textile industry since two decades. He has excellent
marketing skills to his credit.
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.45.24 |
|
|
1 |
Rs.72.57 |
|
Euro |
1 |
Rs.63.00 |
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 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.