MIRA
INFORM REPORT
|
Report Date : |
08.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
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Registered
Office : |
Focal Point, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
27-09-1983 |
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Com. Reg. No.: |
16-18321 |
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Capital
Investment/ Paid-up Capital: |
Rs.400.340 millions |
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CIN No.: [Company Identification
No.] |
L15143PB1983PLC018321 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDN00400B / JLDN00758C |
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PAN No.: [Permanent Account No.] |
AAACN7244C |
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Legal Form : |
Public Limited Liability Company. Company's Shares are listed on the Stock Exchange. |
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Line of Business
: |
Subject is engaged in manufacturing and sale of writing and printing paper and vanaspati ghee. |
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No. of
Employees: |
9132 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
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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 |
|
Maximum Credit Limit : |
USD 24000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track
records. General Financial position of the company is Good. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com while quoting report
number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered / Administrative Office : |
Focal Point, |
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Tel. No.: |
91-161-2672590-592 |
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Fax No.: |
91-161-2670596/2674072 |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
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Tel. No.: |
91-161-2600701 to 705 |
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Fax No.: |
91-161-2600709 / 2601956 |
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E-Mail : |
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Corporate Office 2 : |
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Tel. No.: |
91-161-2542501 to 07 |
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Fax No.: |
91-161-2542509 |
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E-Mail : |
|
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|
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Factory 1 : |
Arham Spinning
Mills Located at: Village |
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Factory 2 : |
Spinning Unit Located at : Jalalpur, |
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Factory 3 : |
Arham Spinning
Mills Located
at : Village
Jalalpur, |
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Factory 4 : |
Sambhav Spinning
Mills Located
at : Industrial
Focal Point, Phase-VIII, Mundian Kalan, District |
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Factory 5 : |
Fabrics Unit Located
at : Village
Jalalpur, |
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Factory 6 : |
Garment Unit Located
at : Focal
Point, |
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Factory 7 : |
Nahar Sugar Located
at : Village
Salana Joon Singh Wala, Amloh, District Fatehgarh Sahib (Punjab), |
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Factory 8 : |
Nahar Steel Located
at : Village
Salana Jeon Singh Wala, Amloh, District Fatehgarh Sahib (Punjab), |
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Factory 9 : |
Oswal Fats And
Oils Located
at : Village
Jalaldiwal, Near Raikot, District |
DIRECTORS
(AS ON 31.03.2011)
|
Name : |
Mr. Jawaharlal Oswal |
|
Designation : |
Chairman |
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Name : |
Mr. Kamal Oswal |
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Designation : |
Vice Chairman and Managing Director |
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Qualification : |
B.Com |
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Date of Appointment : |
01.02.1998 |
|
Last Employment: |
Vice Chairman-Gum- Managing Director of Erstwhile Nahar International Limited Since merged with the Company |
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Name : |
Mr. Dinesh Oswal |
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Designation : |
Director |
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Name : |
Mr. Dinesh Gogna |
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Designation : |
Director |
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Name : |
Mr. N. D. Jain |
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Designation : |
Director |
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Name : |
Mr. O. P. Sahni |
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Designation : |
Director |
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Name : |
Mrs. H. K. Bal |
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Designation : |
Director |
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Name : |
Prof. K. S. Maini |
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Designation : |
Director |
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Name : |
Dr. Y. P. Sachdev |
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Designation : |
Director |
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Name : |
Dr. A. S. Sohi |
|
Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Mukesh Sood |
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Designation : |
Company Secretary |
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|
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Name : |
Mr. B. Bhushan Gupta |
|
Designation : |
Corporate Finance Controller |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 30.09.2011)
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
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|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
|
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|
1324 |
-- |
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|
25589919 |
64.24 |
|
|
25591243 |
64.24 |
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|
|
|
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Total shareholding of Promoter and Promoter Group (A) |
25591243 |
64.24 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18552 |
0.05 |
|
|
18819 |
0.05 |
|
|
169463 |
0.43 |
|
|
112 |
-- |
|
Any Others (Specify) |
336149 |
0.84 |
|
NRI / OCB |
336149 |
0.84 |
|
|
543095 |
1.36 |
|
|
|
|
|
|
1566775 |
3.93 |
|
|
|
|
|
|
6969244 |
17.50 |
|
|
5164484 |
12.96 |
|
|
13700503 |
34.39 |
|
Total Public shareholding (B) |
14243598 |
35.76 |
|
Total (A)+(B) |
39834841 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
-- |
-- |
|
|
-- |
-- |
|
|
-- |
-- |
|
Total
(A)+(B)+(C) |
39834841 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged
in manufacturing and sale of writing and printing paper and vanaspati ghee. |
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Products : |
·
Yarns ·
Woven Fabrics ·
Knitwears and Garments ·
Sugar and Other Products
|
PRODUCTION STATUS 31.03.2011
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Yarn |
Spindles |
434800 |
204288 |
|
Yarn |
Rotors |
11808 |
7832 |
|
Grey Fabric |
Air Jet looms |
730 |
453 |
|
Processed Fabric |
Meters Per annum |
107000000 |
58400000 |
|
Sugar |
TCD |
5000 |
2500 |
|
Steel Ingots |
MTs per annum |
60000 |
50000 |
|
Particulars |
Unit |
Actual
Production |
|
Yarn (1) |
MTs |
63423 |
|
Yarn on Job Work Basis (1) |
MTs |
14 |
|
Grey Fabric (2) |
Mtrs |
20003522 |
|
Processed Fabric (3) |
Mtrs |
42294809 |
|
Readymade Garments |
Pcs |
-- |
|
Cotton Fibre (4) |
MTs |
-- |
|
Sugar (5) |
Qtls |
305672 |
|
Molasses |
Qtls |
148788 |
|
Bagasses (6) |
Qtls |
888482 |
|
Steel Ingots |
MTs |
-- |
|
Runner and Risers |
MTs |
-- |
|
Others (7) |
|
-- |
Notes:
1.
Production excludes 517 MTs. material reprocessed
(Previous year 115 MTs.) and excludes
3,368 MTs. for captive consumption (Previous year 3,288 MTs.). Sales Includes interunit
transfer of 20,761 MTs. amounting to Rs. 4.016 millions (Previous Year 19,820
MTs. amounting to Rs.2.593 millions).
2. Production excludes 633,385 Mtrs. reprocessed
(Previous year 361,806 Mtrs.) It
also excludes 27,161,755 Mtrs. For captive consumption (Previous Year 21,554,951
Mtrs.). Sales include interunit transfer of 16,513,629 Mtrs amounting to Rs.
1.205 millions (Previous Year 16,485,423 Mtrs. amounting to Rs.0.961 millions.)
3.
Production excludes 1,632,437 Mtrs. material reprocessed (Previous year
1,403,659 Mtrs.) and include 159,935 Mtrs. On Job work basis (Previous year
940,559). Sales Includes interunit transfer of 871,110 Mtrs. amounting to Rs.0.076 million (Previous year
2,177,726 Mtrs. amounting to Rs0.813 million).
4. Sale Includes
interunit transfer of 1,625 MTs. amounting to Rs.0.124 million (Previous year
76 MTs. amounting to Rs.0.005 million)
5. Production excludes 4,720 Qtls. of Brown sugar reprocessed (Previous
Year 3,950 Qtls.).
6. Production
includes 815,387 Qtls. for captive consumption (Previous Year 467,755 Qtls.).
7. Other sales includes interunit transfer of Rs.0.923 million (Previous
year Rs.0.804 million).
GENERAL INFORMATION
|
No. of Employees : |
9132 (Approximately) |
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Bankers : |
·
State Bank of ·
Canara Bank ·
Punjab National Bank ·
Allahabad Bank ·
·
Bank of Punjab Limited ·
Indian Overseas Bank ·
State Bank of ·
ICICI Bank Limited ·
IDBI Bank |
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Facilities : |
(Rs.
in millions) Notes: 1.
Working
Capital Borrowings are
secured by hypothecation of
stocks of Raw Materials, Work-in-Process, Finished Goods, Stores & Book Debts and
further secured by 2nd Charge on Fixed Assets of the Company and also
personally guaranteed by some of the Directors of the Company. 2. Term loan from ICICI Bank Limited, IDBI Bank Limited., Canara Bank,
State Bank of Patiala, Indian Overseas Bank, Allahabad Bank, Punjab National
Bank, Axis Bank, State Bank of Mysore, Punjab and Sind Bank, Corporation Bank
and Government of India, Ministry of Consumer Affairs are
secured by hypothecation
as pari-passu first
charge on whole of the immovable
properties of the Company
situated at Village Jalalpur, Chandigarh Ambala Road, Lalru, Distt. Mohali,
Industrial Focal Point, Phase VIII, Village Mundian, Distt. (Rs.
in millions)
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Raj Gupta and
Company Chartered
Accountants |
|
Address : |
549/10, |
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|
|
|
Associates/Subsidiaries : |
·
Nahar Spinnig Mills Limited ·
Nahar Poly Films Limited ·
Nahar Capital and Financial Services Limited ·
Oswal Woolen Mills Limited ·
Atam Vallabh Financers Limited ·
J. L. Growth Fund Limited ·
Vardhman investments Limited ·
Abhilash Growth Fund Private Limited ·
Kovlam Investment Trading Company Limited ·
Ludhiana Holding Limited ·
Nagdevi Trading Investment Company Limited ·
Nahar Growth Fund Private Limited ·
Neha Credit Investment Private Limited ·
Sankheshwar Holding Company Limited ·
Vanaik Investor Limited ·
Vinayak Spinning Mills Limited ·
Nahar Industrial Infrastructure Corporation
Limited ·
Cotton County Retail Limited ·
Crown Star Limited ·
Nahar Financial and Investment Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
65000000 |
Equity Share |
Rs.10/- each |
Rs.650.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40395865 |
Equity Share |
Rs.10/- each |
Rs.403.959 millions |
|
|
Less: Allotment Money in Arrear |
|
Rs.3.619 millions |
|
|
|
|
|
|
|
Total |
|
Rs.400.340 millions |
Note:
Of the above Shares
i)
1,599,360 Equity Shares allotted as fully paid up by
way of bonus shares during the year 1992-93 by capitalization of share premium.
ii)
2,933,280
Equity Shares were allotted as
fully paid up
during the year
1997-98 pursuant to
scheme of amalgamation with
Nahar Fabrics Limited without payment
received in cash.
iii)
12,176,625 Equity
Shares were allotted as
fully paid up during
the year 2005-06 pursuant
to the scheme
of amalgamation of Nahar International
Limited and Nahar Sugar and Allied Industries
Limited with the Company without payment received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
400.340 |
400.340 |
400.340 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5831.490 |
5536.937 |
5389.023 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
6231.830 |
5937.277 |
5789.363 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11440.780 |
7978.539 |
7542.600 |
|
|
2] Unsecured Loans |
32.487 |
471.874 |
496.737 |
|
|
TOTAL BORROWING |
11473.267 |
8450.413 |
8039.337 |
|
|
DEFERRED TAX LIABILITIES |
310.776 |
246.076 |
195.560 |
|
|
|
|
|
|
|
|
TOTAL |
18015.873 |
14633.766 |
14024.260 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6438.121 |
5856.121 |
6330.932 |
|
|
Capital work-in-progress |
399.439 |
716.137 |
179.099 |
|
|
|
|
|
|
|
|
INVESTMENT |
1408.600 |
1411.678 |
1432.247 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
7307.568
|
4618.111 |
2456.396 |
|
|
Sundry Debtors |
1745.434
|
1393.786 |
1314.231 |
|
|
Cash & Bank Balances |
23.588
|
20.678 |
1331.970 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1956.693
|
1396.555 |
1814.990 |
|
|
Fixed Assets held for disposal |
5.615
|
9.223 |
11.700 |
|
Total
Current Assets |
11038.898
|
7438.353 |
6929.287 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
832.294
|
364.284 |
338.128 |
|
|
Other Current Liabilities |
390.211
|
377.409 |
462.352 |
|
|
Provisions |
46.683
|
46.838 |
46.838 |
|
Total
Current Liabilities |
1269.188
|
788.531 |
847.318 |
|
|
Net Current Assets |
9769.710
|
6649.822 |
6081.969 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.003 |
0.008 |
0.013 |
|
|
|
|
|
|
|
|
TOTAL |
18.015.873 |
14633.766 |
14024.260 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Income |
12444.208 |
10174.617 |
9998.410 |
|
|
|
Other Income |
52.548 |
151.716 |
308.561 |
|
|
|
TOTAL (A) |
12496.756 |
10326.333 |
10306.971 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material |
6343.102 |
5468.728 |
5586.298 |
|
|
|
Manufacturing Expenses |
2629.034 |
2375.610 |
2345.628 |
|
|
|
Employment Cost |
823.608 |
652.038 |
657.215 |
|
|
|
Administrative and other Expenses |
178.312 |
97.840 |
171.363 |
|
|
|
Selling Expenses |
309.085 |
181.760 |
202.086 |
|
|
|
Excise duty on stocks |
9.233 |
(14.552) |
(36.817) |
|
|
|
Miscellaneous Expenditure written off |
0.005 |
0.005 |
0.005 |
|
|
|
TOTAL (B) |
10292.379 |
8761.429 |
8925.778 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2204.377 |
1564.904 |
1381.193 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
985.515 |
546.555 |
565.264 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1218.862 |
1018.349 |
815.929 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
745.558 |
723.124 |
773.054 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
473.304 |
295.225 |
42.875 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
158.017 |
100.480 |
31.808 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
315.287 |
194.745 |
11.067 |
|
|
|
|
|
|
|
|
|
Add |
Income tax
Liability/refund of earlier years |
25.795 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
Transfer from
Contingent Liability Reserve |
293.516 |
41.795 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
Transfer from
FCCBs Periodic Cost Revenue |
127.291 |
0.000 |
146.598 |
|
|
|
|
|
|
|
|
|
Add |
Transfer from
General Reserve |
0.000 |
0.000 |
496.215 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
715.360 |
167.795 |
110.659 |
|
|
|
Proposed Dividend |
40.034 |
40.034 |
40.034 |
|
|
|
Corporate Tax on Dividend |
6.495 |
6.804 |
6.804 |
|
|
|
Income Tax liability/refund of earlier
years (net) |
0.000 |
0.004 |
0.168 |
|
|
|
Transfer to FCCBs Periodic Cost Revenue |
0.000 |
21.903 |
0.000 |
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value |
882.223 |
594.480 |
426.297 |
|
|
|
Other Earnings |
25.556 |
29.044 |
36.960 |
|
|
TOTAL EARNINGS |
907.779 |
623.524 |
463.257 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
24.102 |
20.172 |
2.215 |
|
|
|
Capital Goods and Stores |
426.589 |
199.073 |
290.993 |
|
|
|
Trading goods |
0.000 |
0.000 |
63.603 |
|
|
TOTAL IMPORTS |
450.691 |
219.245 |
356.811 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.80 |
4.82 |
0.27 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
3875.510 |
|
Total Expenditure |
|
|
4207.310 |
|
PBIDT (Excl
OI) |
|
|
(331.800) |
|
Other Income |
|
|
24.090 |
|
Operating
Profit |
|
|
(307.710) |
|
Interest |
|
|
271.620 |
|
Exceptional
Items |
|
|
0.000 |
|
PBDT |
|
|
(579.330) |
|
Depreciation |
|
|
189.950 |
|
Profit
Before Tax |
|
|
769.280) |
|
Tax |
|
|
(250.000) |
|
Provisions
and contingencies |
|
|
0.000 |
|
Reported PAT |
|
|
(519.280) |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
(519.280) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
2.52
|
1.88 |
0.11 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.80
|
2.90 |
0.43 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.71
|
2.22 |
0.32 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.07
|
0.05 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.04
|
1.56 |
1.53 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
8.69
|
9.43 |
8.18 |
LOCAL AGENCY FURTHER INFORMATION
PERFORMANE REVIEW:
The company
operates in three main business segments viz. Yarn, Fabric and Sugar. The textile's
division (comprises of yarn and fabrics) accounts for 96.69 % of the total
turnover (including inter-segment) of the company for the year ended 31st
March, 2011. Sugar and others also accounts for 3.31 % of the total turnover of
the company for the year ended 31st March, 2011.
The business wise
performance of each segment is as under: -
·
Yarn: The Company has produced 63,423 MTs. of
yarn as against 65,066 MTs. in the previous year. The total
turnover of this
segment (including inter-segment) has
increased to Rs. 1154.5.700
millions as against Rs. 8277.300 millions in
the previous year showing an
increase of 39.49 %.
·
Fabric: The Company has produced 62,298,331 meters
of fabric (both grey and processed) as against 61,161,735 meters in the
previous year. The total turnover of this segment (including inter-segment) has
increased to Rs. 658.44 crores as
against Rs. 5364.100 millions
in the previous year showing an
increase of 22.75 %
.
·
Sugar: The
Company has produced 305,672 Qtls. Mof sugar as against 155,530 Qtls. in the
previous year. The total turnover of this segment is Rs. 613.500 millions as
against Rs. 1005.400 millions in the previous year.
There was no activity in the steel division
during the year.
During the year
the company has achieved operational income of Rs. 12475.600 millions as
against Rs. 10208.200 millions showing an increase of 22.21% over the previous
year. The company has earned profit before financial expenses, depreciation,
non-cash expenditure and tax of Rs. 2204.400 millions as against Rs. 1564.900
millions in the previous year. After providing for depreciation and non-cash
expenditure of Rs. 745.600 millions (previous year Rs. 723.100 millions),
Financial expenses of Rs. 985.500 millions (previous year Rs. 546.600 millions)
and provision for current tax of Rs.158.000 millions (previous year Rs. 100.500
millions), the profit after tax comes to Rs. 315.300 millions as against Rs.
194.700 millions in the previous year showing an increase of 61.94% over the previous
year.
To keep you
update, we would also like to share with you the prevailing textile scenario.
Though the performance of the textile
industry was excellent during the last
year but things are not moving in the right direction in the current year. The
consequential effects of negative threats
of yester year are
still continuing and its effects has already been witnessed in the
financial results of
the first quarter
of the current year. The company
suffered a heavy loss of Rs.519.300 millions because of the sudden crash in the
prices of raw cotton from Rs.63,000/- per candy in September, 2010 to
Rs.34,000/- per candy in June, 2011 because of pure speculative activity in
cotton at the commodity markets. The cotton being a seasonable crop is
purchased by the spinning mills for
its requirement in the cotton
season. The company purchased the
cotton at the high prices during the season and is currently stuck with the
high cost cotton. Besides sharp decline in the yarn prices coupled with lack of
demand in US and European countries has put additional pressure on the
inventory intensive industry. In case
things do not move for betterment the performance of
the textile industry will be
adversely affected in
the coming periods.
The Management is
putting whole heartedly all its efforts in cost reduction, quality management,
better product mix etc. so as to improve
the efficiencies which in turn
will help the company in meeting the challenges ahead. Besides The Management also expect that the Government through its
policies will take some initiatives in the form of some relief packages so that
the industry could survive in this challenging period.
MANAGEMENT DISCUSSION
AND ANALYSIS:
Industry Structure/Development
Although in recent
years the economic slowdown in the US and EU did have adverse impact on the
overall trade of many economies, yet
India and other South Asian economies continued
to see their
textile and garment sector steady
growth. The textile sector has
played an important role
in the overall
growth of South Asian economies. The Indian textile and
clothing industry is one of the oldest and largest sectors in
The textile
and apparel industry
has witnessed very tough 2010-11
year struggling with
the surging and fluctuating prices of raw cotton. In
2010-11 the prices of cotton was
increased due to
damaged cotton crop
in china and Pakistan
and fall in
global production. The speculative trading in commodities also
contributed for the unprecedented increase in prices of cotton. The Government of India in September 2010
announced a cap of 5.5 million bales of cotton for exports. With this lesser
cotton for trade was available. With high import demand from
With ban on
exports of cotton yarn and a declining trend in
domestic demand had
resulted in a
huge unsold stock of
cotton yarn with the spinning
mills all over the country. When exports
were allowed from April 2011, the accumulated stock caused a crash of cotton
yarn prices in the global and domestic markets. Consumers started shying away
from the markets, because
of their perception that
prices would decline further since mills are flush with stocks and have to
sell them at any cost. Post withdrawal
of restrictions on export of
cotton yarn from 01 April 2011, exports have been very tardy since restriction
on exports of Indian cotton yarn for
over two months have diverted
several regular importers
of the Indian cotton yarn to
other sources.
Management
perception of Risk/concern/threat
Short-sighted
government policies with reference to both cotton and cotton yarn in the recent
past had converted a profitable textile industry to crises ridden sector faced
with cash losses. Foreign markets are depressed and domestic demand is
deflated. In anticipation of bumper
cotton crop this year, the buyers are still playing wait and watch policy. It is hoped that customer will come back as
soon as prices are stabilized.
Continued weak demand
form developed countries, prospect of
higher domestic inflation,
fiscal tightening and increased
borrowing cost are
some of the challenges, the
textile industry is facing at
large. Main concern to the
textile industry is raw
material prices mainly cotton prices
which has seen steep hike in 2010- 11
and the same
is still volatile
causing uncertainties for textile manufacturer. The continuous increase in power cost adding
further pressure on the financial health of textile companies. Non -availability of skilled manpower is also
one of the issue faced by the textile industry. Foreign brands have begun
sourcing from
The
management is making all
efforts to meet the prevailing challenges
by focusing its
efforts on further reduction of
cost and by
improving operational
efficiencies to reduce
the cost pressure.
Outlook
In the
last 10 years India has
added $930 billion to its
economy and it
is estimated that
it will add
almost double that (about
$1700 billion) in the next
10 years. India's domestic
demand shall be
the driver of
growth for Indian textile
and clothing Industry
in the coming decade. However, as new consumer needs
and aspiration emerge, the industry will have to reinvent itself to take
advantages of opportunities.
Besides, the political
/ economic situation in
their neighboring countries
is proving to be a blessing
in disguise, as
many international buyers have moved to Indian markets. The changed
equation in global trade is working in favour of the Indian
textile industry and rigorous
efforts must be made to
raise India's share
in the global
textile trade. Nevertheless,
they are
confident about the
bright future of textile
industry in long
term provided Government policies need to balance the
interests of all stake holders across
the value chain.
The Government envisions
building state of the art
production capacities and achieving
a preeminent global
standing in the
textile sector by 2020, which includes manufacture and export of all
types of textiles. On the global front,
To sum up, the
industry needs to take measures, steps and
strategize for further
sustainability and growth considering the
opportunities and challenges.
It is apparent that
the opportunities are
heavier than the challenges and the industry must make most of it.
Sugar industry
Overview
The Indian sugar
industry is one of the largest agro based industry after textile. The Indian
Sugar industry is characterized by the co-existence of private, co-operative
and public sector. The growth of sugar industry has powerful impact on the
rural economy. India is the
largest consumer and
second largest producer of
sugar in the world. Sugar is an essential item of mass
consumption.
Sugar business
continues to remain highly regulated. The Government of India fixes levy
percentage to meet PDS requirement for the benefit of BPL families. The
,ratio of levy
for the season 2009-10 was
increased to 20% from 10% because
of lower availability
of levy quantity due to
lower production. This has
since been restored to 10% from
2010-11.The sugar industry
is most controlled industry
in the country
and sugar as commodity
continues to be politically sensitive
and strictly controlled by Government. The fundamental problem of the Indian sugar
Industry is that there is no relation between the price of raw material i.e
sugar cane and its finished goods i.e sugar.
Sugar industry
is seasonal in
nature and directly dependent on monsoon
for availability of
adequate sugar cane which makes the business more vulnerable to a
bad season. Lower cane realization can prompt farmers to
shift to alternative crops. Shortage of labour is another
concern as NREGA has
given chances to rural
labour of employment
and labour is
speedily migrating from
agriculture. The Company is also
making all efforts for sugarcane
development in the cane area allotted to it by providing various facilities
such as supply
of fertilizers and pesticides at subsidized
rates. Supply of disease free
seeds and free testing of soil etc. to farmers of the area. The Company has
undertaken necessary maintenance programme
so that the plants fully equipped to crush higher quantity of sugarcane
in the ensuing crushing season and to prevent the breakdown during the season.
Segment
wise/Financial/Operational performance
The Company operates
in three main business segments i.e. Yarn, Fabrics, and Sugar.
CONTINGENT
LIABILITIES NOT PROVIDED FOR:
a)
Estimated amount of contracts remaining
to be executed on capital account (net of advances) Rs.1403.628 Millions
(Previous year Rs.157.014 Millions).
b)
Letter of Credits in favour of
suppliers and others Rs.803.267 Millions (Previous year Rs.207.450 Millions).
c)
Bank Guarantees in favour of suppliers
and others Rs.11.334 Millions (Previous Year Rs.26.769 Millions).
d)
Corporate guarantee given on behalf of
others Rs.850.000 millions (Previous year Rs.850.000 millions).
e) Sales tax demands against which the company
has preferred appeals Rs.12.046 Millions (Previous year Rs.12.046 Millions).
f ) The Central Excise Authorities have
issued show cause
notices to the Company
for Rs.61.881 Millions on various matters under the Central Excise Rules
(Previous Year Rs.212.906
millions). The Company has filed suitable replies with the concerned
authorities.
g) Punjab State Electricity
Board has raised a net demand of Rs.15.866 Millions (Previous Year
Rs.15.866 Millions) on account
of paralleling operation
charges for the
captive power generation
by the Company. The Company has protested the demand in the
Hon'ble Courts.
h) The Company has executed
bonds / legal undertakings for an aggregate amount of Rs. 629.303 Millions
(Previous year Rs. 316.652 Millions)
in favour of the
President of India
for fulfillment of its obligations under the
rules made under Central Excise
Act, 1944 and Customs Act, 1962.
i)
Claims of Rs.34.967 millions (Previous
Year Rs.37.256 millions) lodged against the company on various matters are not
acknowledged as debts. The company has filed suitable replies with the
concerned authorities.
j) Foreign
Exchange contracts which
were under dispute in the
Courts, for which
contingent liabilities were provided, have been partly settled
during the year. The net contingent liability at the end of year 2010-11 comes
to Rs.160.904 millions. Since the liability arising out of the derivative
contracts are sub judice before the Civil Courts and has been considered by the
company as Contingent liability, thus the interest of Rs.13.503 millions
computed by the banks on the disputed amount is not acknowledged and
accordingly not provided for as status quo order is already in force.
FIXED ASSETS:
·
·
·
Building
·
Plant and Machinery
·
Furniture and Fixture
·
Office Equipment
·
Vehicles
·
Computer Software
BUSINESS DESCRIPTION:
Subject is an India-based company. NIEL is a vertically-integrated textile manufacturer, with operations ranging from spinning, weaving and processing to finished readymade garments. The Company operates in five segments: yarn, fabrics, steel, sugar and others. The textile division consists of yarn and fabrics. During the fiscal year ended March 31, 2010 (fiscal 2010), the Company produced 65,066 metric tons of yarn; 6,11,61,735 meters of fabrics, and 155,530 quintals of sugar. Its products range includes cotton yarn and its blends, woven fabrics of cotton and white crystal sugar. Cotton Country is the brand of the Company. For the nine months ended 31 December 2010, Subject’s revenues increased 19% to RS8.88B. Net income totaled Rs.501.300 millions, up from Rs.158.800 millions. Revenues reflect an increase in income from fabrics and higher income from Yarn Segments. Net income also reflects lower purchase of traded goods, a decrease in employees cost, a fall in depreciation expense and lower interest expense.
MANAGEMENT
Biography of Directors
1.
Jawahar Lal Oswal
Title: Non Executive Chairman of the Board
Function: Chairman
Shri. Jawahar Lal Oswal is the Non-Executive Chairman of
the Board of Nahar Industrial Enterprises Limited. He is an industrialist with
46 years business experience in the textile industry. He is Chairman cum
Managing Director of Oswal Woollen Mills Limited and Chairman of Nahar
Industrial Enterprises Limited, Nahar Spinning Mills Limited, Nahar Poly Films
Limited and Nahar Capital and Financial Services Limited. He is also Director
of J.L. Growth Fund Limited, Atam Vallabh Financier Limited, Girnar Investment
Limited, Ludhiana Holdings Limited, Vanaik Investors Limited, Vardhman
Investments Limited, Palm Motels Limited. Sankheshwar Holding Company Limited,
Monte Carlo Fashions Limited, Nagdevi Trading and Investment Company Limited,
Crown Star Limited (
2. Kamal Oswal
Title : Executive Vice Chairman of the
Board, Managing Director
Function : Vice-Chairman
Shri. Kamal Oswal is the Executive Vice Chairman of the
Board, Managing Director of Nahar Industrial Enterprises Limited. He is a B.Com
graduate and has 25 years of experience. He was Vice Chairman cum Managing
Director of erstwhile Nahar Internadonal Limited since merged with company.
3.
Mrs. Harbhajan Kaul Bal
Title: Non-Executive Independent Director
Function: Director/Board Member
Dr. (Mrs) Harbhajan Kaur Bal, Ph.D.,
is Non-Executive Independent Director of Nahar Industrial Enterprises Limited.
She is a retired educationist having more than 30 years of experience as an
academician and in general management. She is director of Nahar Industrial
Enterprises Limited., Oswal Woollen Mills Limited, Nahar Spinning Mills
Limited, Nahar Poly Films Limited, Nahar Capital and Financial Services
Limited, Shreyans Industries Limited, IOL Chemicals and Pharmaceuticals Limited
and Sportking India Limited. She is member of Audit Committee of Nahar
Industrial Enterprises Limited, Shreyans Industries Limited, Sportking India
Limited and IOL Chemicals and Pharmaceuticals Limited, member of Remuneration
Committee of Nahar Industrial Enterprises Limited, Nahar Spinning Mills Limited,
Nahar Poly Films Limited, Shreyans Industries Limited, Oswal Woollen Mills
Limited, Nahar Capital and Financial Services Limited, IOL Chemicals and
Pharmaceuticals Limited and Sportking India Limited and chairperson of
Shareholder's Grievance Committee of Nahar Spinning Mills Limited, Nahar Poly
Films Limited and IOL Chemicals and Pharmaceuticals Limited.
4.
Mr. Dinesh Gogna
Title: Non-Executive Director
Function: Director/Board Member
Shri. Dinesh Gogna
is the Non-Executive Director of Nahar Industrial Enterprises Limited having
more than 29 years of experience in Corporale Finance and Taxation.
5.
Mr.
Kanwar Sain Maini
Title: Non-Executive Independent
Director
Function: Director/Board Member
Prof. Kanwar Sain Maini is
Non-Executive Independent Director of Nahar Industrial Enterprises Limited. He
is M,Com graduate. He is Director of Oswal Woollen Mills Limited, Nahar
Industrial Enterprises Limited, Nahar Investment and Holdings Limited, Nahar
Spinning Mills Umited and Nahar Capital and Financial Services Limited. He is
chairman of Remuneration Committee of Nahar industrial Enterprises Limited,
Audit Committec and Remuneration Committee of Nahar Capital and Financial
Services Lirñited. He is member of Audit Committee of Oswal Woollen Mills
Limited, Shareholder’s Grievance Committee of Nahar industrial Enterprises
Limited andAudit Committee of Nahar Investment and Holdings Limited.
6.
Mr.
Dinesh Oswal
Title: Non-Executive Director
Function: Director/Board Member
Shri. Dinesh Oswal is a
Non-Executive Director of Nahar Industrial Enterprises Limited. He is an
industrialist with 26 years of business experience. He is Managing Director of
Nahar Spinning Mills Limited. and Nahar Capital and Financial Services Limited
and Director of Oswal Woollen Mills Limited., Nahar Industrial Enterprises
Limited., Nahar Poly Films Limited., Nahar Industrial Infrastructure Corp.
Limited., Palm Motels Limited., Vardhman Investments Limited., Vanaik Investors
Limited., J L Growth Fund Limited., Atam Vallabh Financiers Limited., Sankheshwar
Holding Co. Limited., Monte Carlo Fashion Limited., Cotton County Retail
Limited., Crown Star Limited. (
7.
Mr.
Yash Paul Sachdeva
Title: Independent Director
Function: Director/Board Member
Dr. Yash Paul Sachdeva is an
Independent Director of Nahar Industrial Enterprises Limited. He has done
Master of Business Administration (M.B.A) and Ph.D. in Business Administration,
with specialization in Financial Management. He is Professor-cum-Head,
Department of Business Management,
8.
Mr.
Title: Non-Executive Independent Director
Function: Director/Board Member
Education: MBA, Indian Institute of Managemnt
Dr. Om Parkash Sahni, Ph.D., is
Non-Executive Independent Director of Nahar Industrial Enterprises Limited. He
is a retired educationist having more than 30 years experience in teaching
management and administration. He is Director of Oswal Woollen Mills Limited,
Nahar Industrial Enterprises Limited, Nahar Investment and Holding Limited,
NaharSpinning Mills Limited, NaharCapital and Finan’cialServices Limited and
Midland International Limited. He is chairman ofAuditCommittee of Nahar
industrial Enterprises Limited and member of Shareholder Grievance Committee
and Remuneration Committee of Nahar Industrial Enterprises Limited and also
member of Audit Committee of Nahar Spinning Mills Limited.
9. Mr. Amrik Singh Sohi
Title: Independent Director
Function: Director/Board Member
Dr. Amrik Singh Sohi is an
Independent Director of Nahar Industrial Enterprises Limited., with effective
from August 12, 2011. He is having more than 36 years of experience in the
field of teaching and entomology research, is a retired Sr. Entomologist
(Professor) from
UNAUDITED FINANCIAL RESULTS
FOR THE NINE MONTHS ENDED 30th JUNE, 2011
(Rs. in millions)
|
Particulars |
|
Quarter ended |
|
|
30.06.2011 |
|
|
|
|
|
|
Income |
|
|
|
a) Net Income from Operations |
|
3828.408 |
|
b) Other Operating Income |
|
47.101 |
|
Total Income From Operations |
|
3875.509 |
|
|
|
|
|
Expenditure |
|
|
|
a)
(Increase) / Decrease
in Inventory |
|
247.135 |
|
b)
Consumption of Raw
Material |
|
3015.390 |
|
c)
Purchase of Traded Goods |
|
34.668 |
|
d)
Employee Cost |
|
223.926 |
|
e)
Depreciation and Non
Cash Expenditure |
|
189.953 |
|
f)
Other Expenditure |
|
686.188 |
|
Total |
|
4397.260 |
|
|
|
|
|
Profit / Loss from Operations before Other Income ,Interest and
Exceptional Items |
|
(521.751) |
|
|
|
|
|
Other Income |
|
24.093 |
|
|
|
|
|
Profit / Loss before Interest and Exceptional Items |
|
(497.658) |
|
|
|
|
|
Interest |
|
271.621 |
|
|
|
|
|
Profit / Loss after Interest but before Exceptional Items |
|
(769.279) |
|
|
|
|
|
Exceptional Item |
|
-- |
|
|
|
|
|
Profit / Loss From Ordinary Activities after tax |
|
(769.279) |
|
|
|
|
|
Provision for Taxation |
|
(250.000) |
|
|
|
|
|
Profit / Loss From Ordinary
Activities after tax |
|
(519.279) |
|
|
|
|
|
Extraordinary Item |
|
-- |
|
|
|
|
|
Net Profit / Loss for the period |
|
(519.279) |
|
|
|
|
|
Paid – up Equity Share Capital (Face Value Rs,10/- per share) |
|
400.340 |
|
|
|
|
|
Reserves excluding Revaluation Reserves |
|
-- |
|
|
|
|
|
Earnings per share |
|
|
|
-
Basic (Non annualised) |
|
(12.85) |
|
-
Diluted (Non annualised) |
|
(12.85) |
|
|
|
|
|
Public Shareholding |
|
|
|
-
Number of Equity Shares
|
|
14804622 |
|
-
Percentage of
Shareholding |
|
36.65 |
|
|
|
|
|
Promoter and Promoter Group’s shareholding pledged |
|
|
|
Pledged / Encumbered |
|
|
|
-
Number of Shares |
|
-- |
|
-
Percentage of shares
(as a % of the total on shareholding of Promoter an Promoter Group ) |
|
-- |
|
-
Percentage of
Share (as a % of the total on capital
of the company ) |
|
-- |
|
|
|
|
|
Non-Encumbered |
|
|
|
-
Number of Shares |
|
25591243 |
|
-
Percentage of shares
(as a % of the total on shareholding of Promoter an Promoter Group ) |
|
100.00 |
|
-
Percentage of
Share (as a % of the total on capital
of the company ) |
|
63.35 |
SEGMENT WISE REVENUE RESULTS AND CAPITAL EMPLOYED
(Rs. in millions)
|
Particulars |
|
Quarter ended |
|
|
30.06.2011 |
|
|
Segment Reserve |
|
|
|
Yarn |
|
3337.339 |
|
Fabrics |
|
2032.772 |
|
Sugar |
|
280.326 |
|
Others |
|
1.876 |
|
Total |
|
5652.313 |
|
Less: Inter Segment Revenue |
|
1823.905 |
|
Net Sales / Income from Operations |
|
3828.408 |
|
|
|
|
|
Segment Results |
|
|
|
Profit / Loss Before Tax interest from each Segment |
|
|
|
Yarn |
|
617.929 |
|
Fabrics |
|
122.149 |
|
Sugar |
|
4.851 |
|
Others |
|
6.729 |
|
Total |
|
497.658 |
|
Less: Interest |
|
271.621 |
|
Profit / Loss after interest but before Exceptional Items |
|
769.279 |
|
|
|
|
|
Capital Employed |
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
Yarn |
|
5380.251 |
|
Fabrics |
|
3782.293 |
|
Sugar |
|
331.064 |
|
Others (unallocable) |
|
1684.874 |
|
|
|
|
|
Total Capital Employed |
|
11178.482 |
Notes:
1. The company had received 37 (Thirty Seven) complaints from investors
during the quarter ended 30th June, 2011 and the same have been efficiently
resolved. No complaint was pending with the company as at the end of the
quarter.
2. Previous period’s figures have been regrouped / rearranged wherever
considered necessary.
3. Provision for taxation includes current tax and deferred tax.
4. The above results were reviewed by the Audit Committee of the Directors
on 12th August, 2011 and taken on record by the Board of Directors
at its meeting held on 12th August, 2011.
Nahar
Industrial Enterprises Limited Recommends Dividend
May
31, 2011
Nahar Industrial Enterprises Limited announced that the Board of
Directors of the Company at its meeting held on May 30, 2011, inter alia, has
recommended Dividend of INR1 per equity share of INR10 each for the financial
year 2010-2011
Loan recast for
textile firms likely
Mint
04 August 2011
[What follows is the full text of the news story.]
New
Delhi, Aug. 4 -- Textile companies, hit by a sharp fall in cotton yarn prices,
poor domestic demand and curbs on cotton yarn exports imposed in December, may
get some relief on loan repayments that amount to about Rs.7,0000.000
millions annually for the industry.
Indian
banks are planning to restructure some of these loans, having agreed in
principle to do so on a case-by-case basis after assessing the cash flows of
these companies, according to an official at the Indian Banks' Association
(IBA) and senior bankers. The official at banking lobby group didn't want to be
named.
This
won't be a bailout as there is no infusion of cash and neither will banks take
a haircut, or a reduced payment.
"Banks
have taken into account the current difficult situation of the sector and have
agreed to restructure those loans where the borrowers are facing difficulties because
of external circumstances," the IBA official said. "There won't be
any industry-wide recast (of loans)."
Indian
banks have been actively assisting crisis-ridden sectors in the aftermath of
the 2008 global financial crisis. Currently, they are recasting loans given to
borrowers in the airline, real estate and microfinance sectors, although the
reasons behind the various borrowers' distress vary.
In
the wake of the global financial meLimitedown, Indian banks restructured at
least 5% of their loans across sectors following a directive of the banking
regulator. About 10-15% of these restructured loans have turned bad for most
lenders, according to data from rating agency Credit Analysis and Research
Limited.
Chiefs
of around 20 banks, at an IBA meeting in late July, agreed to recast loans when
merited, the IBA official said.
Such
assistance won't be restricted to textiles, said a top banker.
"We
are willing to restructure the loans given to these firms on a case-to-case
basis, not only in textiles, but across sectors, wherever the stress is
there," said K.R. Kamath, chairman and managing director of Punjab
National Bank.
Indian
banks have lent '1.45 trillion to textile firms as of 20 May, according to the
latest Reserve Bank of
According
to the Confederation of Indian Textile Industry (CITI), an umbrella
organization, textile companies have to repay around Rs.7000.000 millions
to banks every year, including interest payments of Rs. 2000.000
millions, under a government scheme that made available subsidized loans to the
industry for capacity-building and modernization.
CITI
estimates the textile industry's accumulated loss at about Rs.11000.00 millions.
"The
second quarter results of most of the textile mills are likely to be very bad
because of huge losses they have suffered on account of high cost of raw
material and unsold goods in stock," said D.K. Nair, CITI secretary
general.
Senior
bankers said they will examine the possibility of loan recast, but don't see an
alarming situation as of now.
The
sector is facing a problem, but bankers have not come across any serious
issues, said Ramnath Pradeep, chairman and managing director of Corporation Bank.
"Depending
upon the need of the sector, we will take adequate steps," he said.
M.
Narendra, chairman and managing director of Indian Overseas Bank, said one
large textile company has already defaulted, but expects the situation to improve
in the next few months.
If
banks do not recast loans, in the case of defaults they will have to set aside
money or provide for the bad loans, which will adversely impact profitability.
The
$62 billion ('2.75 trillion) Indian textile industry is facing a crisis due to
the steep fall in the prices of cotton and cotton yarn since March 2010, and
low demand for products. Between April and July, the price of Shankar-6, the
standard variety of Indian cotton, fell to '30,000 per candy from '60,000 per
candy in April. One candy is equal to 356kg.
According
to senior industry officials, this resulted in stockpiling to the tune of 6.5
million bales as on 1 June. Following this, CITI approached Indian banks with a
request for loan restructuring.
The
industry had sought a two-year moratorium for troubled firms and a reduction in
loan rates to facilitate easy repayment.
Many
firms may stop payments in the next few months unless there is bank assistance,
said Kamal Oswal, managing director of Ludhiana-based Nahar Industrial
Enterprises Limited.
"The
situation is not good because of the stoppage of cotton yarn exports last
year," Oswal said. "As of now, companies are stuck with very heavy
inventory of cotton and yarn."
The
government capped cotton yarn exports in 2010-11 at 720 million kg against the
industry demand for 1,100 million kg leading to the inventory pile-up, CITI's
Nair said.
"Besides
the impact of an economic slowdown, the imposition of a 10% excise duty has
also impacted the demand," he said.
Nearly
70% of the total textile industry's products are cotton-based.
Experts
said companies largely dependent on exports may face a tough time compared with
firms that depend on domestic demand.
"The
current situation in the sector is largely due to the slump in demand and
higher input costs. There was some amount of speculation also as some companies
were expecting commodity prices to stay on the higher side," said J. Moses
Harding, executive vice-president and head (global markets group) at IndusInd
Bank Limited.
The Indian Express
(
11 October 2011
By Express news service
[What follows is the full text of the article.]
Days
after the retired Punjab Director General of Police (DGP) was appointed as
advisor, home, the
Oswal,
who belongs to the Ludhiana-based industrial group, is presently the
vice-chairman-cum-managing director of Nahar Industrial Enterprises Limited and
MD Cotton County Retail Limited besides a director on the board of various
companies such as Oswal wollen Mills, Nahar Spinning Mills, Nahar Poly films,
Nahar Capital and Financial Services and Monte Carlo Fashions Limited. He was
also nominated as member of Consumer Grievance Committee of State Electricity
Board.
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.49.38 |
|
|
1 |
Rs.79.19 |
|
Euro |
1 |
Rs.67.84 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
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 |
|
53 |
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.