MIRA
INFORM REPORT
|
Report Date : |
26.03.2011 |
IDENTIFICATION DETAILS
|
Name : |
DEEPAK SPINNERS LIMITED |
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Registered
Office : |
#121, Industrial Area, Baddi Tehsil Nalagarh, Dist Solan - 173205,
Himachal Pradesh |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
25.03.1982 |
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Com. Reg. No.: |
016465 |
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CIN No.: [Company Identification
No.] |
L17111HP1982PLC16465 |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange |
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Line of Business
: |
Manufacturer of yarn of synthetic staple fibre |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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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 1754808 |
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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 an 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 |
LOCATIONS
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Registered Office : |
#121, Industrial Area, Baddi Tehsil Nalagarh, Dist Solan - 173205, |
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E-Mail : |
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Administrative
Office: |
SCO 16, II Floor, Sector 26, Madhya Marg, |
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Tel. No.: |
91-172-2790973/2790974/2791272 |
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Fax No.: |
91-172-2790975/2790977 |
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Corporate Office : |
16, |
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Factory 1 : |
Village Pagara, Tehsil and District: Guna - 473 001, |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Pradip Kumar Daga |
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Designation : |
Chairman cum Managing Director |
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Name : |
Mr. Vikram Prakash Aggarwal |
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Designation : |
Director |
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Name : |
Mr. Yashwant Daga |
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Designation : |
Director |
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Name : |
Mr. P. K. Drolia |
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Designation : |
Director |
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Name : |
Mr. J. N. Pathak |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mrs. Puneeta Arora |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2010
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of promoter
and Promoter Group |
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|
1) Indian |
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a) Individuals / Hindu Undivided Family |
1141606 |
8.76 |
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b) Bodies corporate |
1782429 |
72.36 |
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2) Foreign |
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(B) Public Shareholdings |
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1) Institutions |
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a) Mutual Funds |
5400 |
0.08 |
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b) Financial Institutions/Banks |
319780 |
4.45 |
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c) Insurance Companies |
3700 |
0.05 |
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2) Non – Institution |
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a) Bodies corporate |
260808 |
3.63 |
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b) Individuals |
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i. Individual Shareholders holding nominal share capital upto Rs.0.100
Million |
2444623 |
34.00 |
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ii. Individual Shareholders holding nominal share capital in excess
Rs.0.100 Million |
1071282 |
14.90 |
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c) Any other |
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i) NRI |
151859 |
02.11 |
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ii) Clearing Member |
7881 |
0.11 |
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Total |
7189368 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
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PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
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Installed
Capacity |
Actual
Production |
|
Spindles |
Qty. |
|
57408 |
17497202 !! |
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!! Excludes 16314 Kg. (13581 Kg.) for reprocessing.
GENERAL INFORMATION
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Bankers : |
State Bank of |
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Facilities : |
a) Term Loans from Banks are secured by either (a) exclusive first charge on fixed assets purchased from such loans under TUFS or (b) pari-passu charge on fixed assets other than (a) above. Same are further secured by second charge either on current assets or entire other fixed assets of the Company. These loans are further secured by personal guarantee of two Directors of the Company. b) Corporate loans from Banks is secured/to be secured by way of first charge on fixed assets of the Company on pari-passu basis except assets charged exclusively for term loan under TUFS. Part of Corporate Loan is also secured/to be secured by second charge on the current assets both present and future of the Company. These loans are further secured by personal guarantee of two Directors. Rupee Corporate Loan is additionally secured by pledge of part of promoters equity shares in the Company. c) Working capital facilities from Banks are secured by first charge on current assets both present and future and additionally secured/to be secured by way of second charge on all fixed assets except assets charged exclusively for term loans under TUFS. The same is further secured by personal guarantee of two Directors of the Company. d) Other loans from bank is secured by specific charge on assets purchased. Repayable within one year Rs.0.048 Million (Previous year Rs.0.074 Million) |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Messrs Singhi and Company Chartered Accountant |
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Address : |
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Associates/Subsidiaries : |
NA |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
8000000 |
Equity Shares |
Rs.10/- each |
Rs.80.000 Millions |
|
6000000 |
Equity Shares |
Rs.10/- each |
Rs.60.000 Millions |
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Issued, Subscribed:
|
No. of Shares |
Type |
Value |
Amount |
|
7212868 |
Equity Shares |
Rs.10/- each |
Rs.72.129
Millions |
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|
|
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Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
7189368 |
Equity Shares |
Rs.10/- each |
Rs.71.894
Millions |
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Add: Share Forfeited |
|
Rs.0.117
Million |
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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 |
|
|
|
|
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1] Share Capital |
72.011 |
72.011 |
72.011 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
366.691 |
475.823 |
503.207 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
438.702 |
547.834 |
575.218 |
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LOAN FUNDS |
|
|
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1] Secured Loans |
781.409 |
797.483 |
1071.284 |
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2] Unsecured Loans |
0.000 |
0.000 |
0.849 |
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TOTAL BORROWING |
781.409 |
797.483 |
1072.133 |
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DEFERRED TAX LIABILITIES |
136.970 |
151.741 |
173.281 |
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TOTAL |
1357.081 |
1497.058 |
1820.632 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
750.256 |
914.359 |
1002.397 |
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Capital work-in-progress |
35.038 |
6.932 |
3.555 |
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INVESTMENT |
0.499 |
0.499 |
0.499 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
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Inventories |
276.920
|
289.025 |
366.285 |
|
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Sundry Debtors |
181.158
|
169.037 |
317.891 |
|
|
Cash & Bank Balances |
13.149
|
12.961 |
26.548 |
|
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Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
216.609
|
203.863 |
231.090 |
|
Total
Current Assets |
687.836
|
674.886 |
941.814 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
92.645
|
77.838 |
104.805 |
|
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Other Current Liabilities |
11.926
|
9.677 |
14.748 |
|
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Provisions |
11.977
|
12.103 |
8.080 |
|
Total
Current Liabilities |
116.548
|
99.618 |
127.633 |
|
|
Net Current Assets |
571.288
|
575.268 |
814.181 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
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TOTAL |
1357.081 |
1497.058 |
1820.632 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
|
|
|
|
|
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Income |
2091.168 |
1398.760 |
1967.131 |
|
|
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Other Income |
14.417 |
18.967 |
18.302 |
|
|
|
TOTAL (A) |
2105.585 |
1417.727 |
1985.433 |
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Materials Consumed |
1461.113 |
930.148 |
1453.393 |
|
|
|
Manufacturing and Other Expenses |
469.932 |
328.261 |
468.228 |
|
|
|
Impairment |
85.000 |
0.000 |
0.000 |
|
|
|
Increased / (Decreased) in Stock |
67.273 |
74.307 |
(67.290) |
|
|
|
TOTAL (B) |
2083.318 |
1332.716 |
1854.331 |
|
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
22.267 |
85.011 |
131.102 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
65.006 |
59.380 |
80.747 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(42.739) |
25.631 |
50.355 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
76.555 |
59.296 |
82.844 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL ITEMS |
(4.113) |
(14.894) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(123.407) |
(48.559) |
(32.489) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
14.275 |
21.175 |
5.720 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
(109.132) |
(27.384) |
(26.769) |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
169.488 |
196.872 |
223.641 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
60.356 |
169.488 |
196.872 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
311.431 |
196.582 |
391.714 |
|
|
TOTAL EARNINGS |
311.431 |
196.582 |
391.714 |
|
|
|
|
|
|
|
|
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IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2.536 |
5.292 |
0.000 |
|
|
|
Stores & Spares |
1.990 |
1.202 |
33.736 |
|
|
|
Capital Goods |
19.822 |
0.000 |
1.513 |
|
|
TOTAL IMPORTS |
24.348 |
6.494 |
35.249 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(15.18) |
-- |
-- |
|
QUARTERLY
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Sales Turnover |
499.900 |
623.600 |
689.500 |
|
Total Expenditure |
471.900 |
581.700 |
608.600 |
|
PBIDT (Excl
OI) |
28.000 |
41.900 |
60.900 |
|
Other Income |
2.300 |
3.200 |
2.600 |
|
Operating
Profit |
30.300 |
45.100 |
63.500 |
|
Interest |
18.000 |
20.000 |
19.000 |
|
Exceptional
Items |
(7.100) |
0.000 |
0.000 |
|
PBDT |
5.200 |
25.100 |
64.500 |
|
Depreciation |
19.200 |
19.300 |
19.000 |
|
Profit
Before Tax |
(14.000) |
5.800 |
45.500 |
|
Tax |
(3.900) |
0.900 |
24.000 |
|
Reported PAT |
(10.100) |
4.900 |
21.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.00 |
0.000 |
0.000 |
|
Net Profit |
(10.100) |
4.900 |
21.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(5.18)
|
(1.93) |
1.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(5.90)
|
(3.47) |
(1.65) |
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|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.58)
|
(3.05) |
(1.67) |
|
|
|
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|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.28)
|
(0.09) |
(0.06) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.05
|
1.64 |
2.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.90
|
6.77 |
7.38 |
LOCAL AGENCY FURTHER INFORMATION
GENERAL REVIEW
In view of the economy showing signs of recovery, increased overseas and domestic demand, there is improvement in the performance of the Company. We hope to achieve better results in spite of devalued US dollar and Euro and rising cost of labour.
SUBSIDIARY COMPANY
M/s. DSL Hydrowatt Limited is the only subsidiary of the Company. Consolidated accounts and the Statement under Section 212 of the Companies Act, 1956
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY SCENARIO
The textile industry plays vital role in Indian ecomomy. Apart from providing one of the basic necessities of life, it contributes about 14% to industrial production, 4% to GDP (Gross Domestic Product) and 13.50% to the exchange earnings, in addition to providing direct employment to 35 million people.
The recession finally receded resulting in continuous inflow of demand for the textile products. However, this positive change has to deal with certain challenges. The high cost of raw materials is pushing up the cost of textile products. Trained manpower has become hard to come by and is getting harder to retain, making it difficult to even fully utilize their installed capacity.
OUTLOOK
The demand for textile products is improving both in the domestic as well as foreign markets. However, to improve its profitability, the textile industry must explore new areas of consumption such as non-woven disposable products like wipes, diapers etc. The problem of lack of skilled labour has also to be dealt with properly.
FIXED ASSETS:
- Land
- Land (lease hold)
- Buildings
- Plant and Machinery
- Electrical Installation
- Office and Other
- Equipments
- Furniture and Fixtures
- Vehicles
- Tubewell
- Road and Culverts
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject are
derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.65 |
|
|
1 |
Rs.71.91 |
|
Euro |
1 |
Rs.63.28 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
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 |
-- |
|
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 |
|
45 |
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.