MIRA
INFORM REPORT
|
Report Date : |
29.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
GOKALDAS EXPORTS LIMITED (w.e.f. 07.01.2005) |
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Formerly Known As : |
GOKALDAS EXPORTS PRIVATE LIMITED |
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Registered Office : |
70, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
01.03.2004 |
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Com. Reg. No.: |
08-33475 |
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Capital Investment / Paid-up Capital : |
Rs.171.880 millions |
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CIN No.: [Company
Identification No.] |
L18101KA2004PLC033475 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRG03671D |
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PAN No.: [Permanent
Account No.] |
AACCG0890N |
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Legal Form : |
A Public Limited Liability
Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business : |
Manufacturers,
Importers and Exporters of Textiles, Readymade Garments, Knit Wears, etc. |
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No. of Employees : |
37000
(Approximately) |
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 15000000 |
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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. Profitability
of the company is under pressure. However, networth of the company appears to
be satisfactory. 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 – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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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 : |
70, |
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Tel. No.: |
91-80-41272200 /
22223600 / 1 / 2 / 22237654 / 6984 / 41272215 |
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Fax No.: |
91-80-22274869 /
22277497 / 22279497 |
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Email: |
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Website : |
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Factory 1 : |
Atlantic
Apparels-I, No.46/3B, Garvebavipalya, 8th Mile, Hosur Road, Bangalore-560
068, |
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Factory 2 : |
Atlantic
Apparels - II, Plot No.28 D and 28 - E, Belvadi Industrial Area, |
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Factory 3 : |
Atlantic
Apparels – III – |
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Factory 4 : |
Asiatic Exports,
No.55/56, Mathrushree Complex, Mangammanapalya, Bommanahalli, Bangalore-560
068, |
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Factory 5 : |
Carnival
Clothing Co, No.2/A-1, |
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Factory 6 : |
Dressmaster
Suits, No.76/77, 6th Main, 3rd Phase, Peenya Industrial Area, |
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Factory 7 : |
Euro Clothing Co
- I, No.122/1, |
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Factory 8 : |
R and D – I,
No.70, Mission Road, Bangalore-560 027, |
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Factory 9 : |
R and D – III, #
76/1, 11 and III Floor, Mission Road, Kalingarao Road, Bangalore-560 027,
Karnataka, India |
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Factory 10 : |
Sez Division,
Plot No.6/1, Phase - 2, Mepz - Sez, |
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Factory 11 : |
Global
Garments-II, No.46/3B-2, 8th Mile, Garebhavipalya, Hosur Road, Bangalore-560
068, |
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Factory 12 : |
Global
Garments-III, No.44, 3rd Cross, Industrial Suburb, Yeshwanthpur,
Bangalore-560 022, |
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Factory 13 : |
Gokaldas India,
No.21C and 21B, Survey No.34,35,36 and 37, Nallakadaranahalli, Peenya II
Stage, Industrial Area, Peenya, Bangalore-560 058, Karnataka, India |
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Factory 14 : |
Hinduja Fashions,
No.76, Industrial Suburb, Yeshwanthpur, Bangalore-560 022, |
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Factory 15 : |
Hinduja Proc and
Fins Unit, No.2, 5th Cross, Mysore Road, Bangalore-560 023, |
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Factory 16 : |
Hinduja Sports Wear,
No.73/19/5, Industrial Suburb, Yeshwanthpur, Bangalore-560 022, |
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Factory 17 : |
International
Clothing Company #B2, B3 and B4, Indl Estate, Madanapalli Andhra Pradesh -
517 32521, India |
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Factory 18 : |
International
Clothing Company-II, Survey No.113, |
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Factory 19 : |
International Clothing
Company-IV, Survey No.112,A Block, Near Bhandary Factory, 7th Mile, Hosur
Road, Bangalore-560 068, Karnataka, India |
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Factory 20 : |
Intex, No.31,
Magadi Road, Bangalore-560 023, |
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Factory 21 : |
The Intex II, III
and IV, #26, 2nd Cross, 3rd Main Road, Industrial Suburb,
Yeshwanthpur, Bangalore-560 022, |
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Factory 22 : |
The Intex V, #13
and 4, 1st A Cross Kamakshipallya, |
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Factory 23 : |
Indigo Blues,
Plot No-2, Kiadb Indl Area, Doddaballapur - 581 203, |
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Factory 24 : |
J.D.Clothing
Company, No.9, Rajajinagar Industrial Estate, Bangalore-560 010, |
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Factory 25 : |
Luckytex-III, No.17/A-34/A-1,
Industrial Suburb, Yeshwanthpur, Bangalore-560 022, |
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Factory 26 : |
Sri Krishna
Industries, No.25/26, 3rd |
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Factory 27 : |
Triangle
Apparels-I, Site No.804/75, 7th Ward, Near Tilak Park Police Station,
Jayapure Road, Tumkur – 01, Karnataka, India
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Factory 28 : |
Triangle
Apparels-II, No.106/5,6,7,8,9, Rachnahalli, |
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Factory 29 : |
Triangle
Apparels – VI, # 25/26, 3rd |
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Factory 30 : |
The Unique Creations,
No.44, Industrial Suburb, 3rd Main, II Stage, Yeshwanthpur, Bangalore-560
022, |
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Factory 31 : |
Venkateshwara
Clothing Company No.29, Yelahanka Industrial Estate, Yelahanka, |
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Factory 32 : |
Venkateshwara
Clothing Company – II, No.10, KHB, Colony Industrial Area, Yelahanka, |
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Factory 33 : |
Wearwel - I, No.
21 and 21C, 'A' Layout, Industrial Area, Bannimantap Extension |
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Factory 34 : |
Wearcraft
Apparels – I, No.17/1-38/4-1, Industrial Suburb, Yeshwanthpur, Bangalore-560
022, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Richard B Saldanha |
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Designation : |
Chairman |
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Name : |
Mr. Gautam Chakravarti |
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Designation : |
Director and Chief Executive Officer |
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Name : |
Mr. Akhilesh Krishna Gupta |
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Designation : |
Director |
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Name : |
Mr. Mathew Cyriac |
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Designation : |
Director |
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Name : |
Mr. Prince Asirvatham |
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Designation : |
Independent Director |
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Name : |
Mr. Arun K. Thiagarajan |
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Designation : |
Independent Director |
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Name : |
Mr. J. H. Mehta |
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Designation : |
Independent Director |
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Name : |
Mr. Rangachary N. |
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Designation : |
Independent Director |
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Name : |
Mr. Partha Sarkar |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. N Sri Sai Kumar |
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Designation : |
Company Secretary
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MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Category
of Shareholders |
No of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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6,875,202 |
20.00 |
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6,875,202 |
20.00 |
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23,469,242 |
68.27 |
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23,469,242 |
68.27 |
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Total shareholding of Promoter and Promoter Group (A) |
30,344,444 |
88.27 |
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(B) Public Shareholding |
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|
299,484 |
0.87 |
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|
19,741 |
0.06 |
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319,225 |
0.93 |
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1,645,716 |
4.79 |
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1,075,485 |
3.13 |
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65,000 |
0.19 |
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926,130 |
2.69 |
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22,648 |
0.07 |
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15 |
- |
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903,467 |
2.63 |
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3,712,331 |
10.80 |
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Total Public shareholding (B) |
4,031,556 |
11.73 |
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Total (A)+(B) |
34,376,000 |
100.00 |
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(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
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|
- |
- |
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- |
- |
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- |
- |
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Total (A)+(B)+(C) |
34,376,000 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturers, Importers
and Exporters of Textiles, Readymade Garments, Knit Wears, etc. |
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Products : |
· Formal Suit · Knit Wear · Woven Wear
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PRODUCTION
STATUS (As on 31.03.2011)
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Particulars |
Unit |
Actual
Production |
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Readymade Garments |
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- Own production |
Pcs |
6928014 |
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- Through Job workers workers and other |
Pcs |
22023306 |
Note
Licensed Capacity : Not Applicable
Installed capacity cannot be quantified on account of a large variety of
products that can be manufactured with
varying specifications.
GENERAL INFORMATION
|
No. of Employees : |
37000
(Approximately) |
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Bankers : |
·
Canara
Bank, Avenue Road Branch, ·
Corporation
Bank ·
Citi
Bank, M ·
HDFC
Bank, ·
Standard
Chartered Bank, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors 1: |
S. R. Batliboi
and Company Chartered
Accountants |
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Address: |
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Tel. No.: |
91-80-22265202 |
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Auditors 2: |
Girish Murthy and
Kumar Chartered
Accountants |
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Address: |
4502, |
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Memberships : |
Apparel and
Leather Promotion Council |
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Immediate
Holding Company : |
Blackstone FP Capital Partners ( |
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Ultimate Holding
Company : |
Blackstone FP Capital Partners ( |
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Wholly Owned
Subsidiaries : |
·
All Colour Garments Private Limited ·
Deejay Trading Private Limited ·
Glamourwear Apparels Private Limited ·
Madhin Trading Private Limited ·
Magenta Trading Private Limited ·
Rafter Trading Private Limited ·
Rajdin Apparels Private Limited ·
Reflexion Trading Private Limited ·
Rishikesh Apparels Private Limited ·
Robot Systems Private Limited ·
Seven Hills Clothing Private Limited ·
SNS Clothing Private Limited ·
Vignesh Apparels Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised
Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.5/- each |
Rs.200.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
34376000 |
Equity Shares |
Rs.5/- each |
Rs.171.880 millions |
Of the above:
·
23469242 equity shares of Rs.5 each are held by
Blackstone FP Capital Partners (
·
7126000 equity shares of Rs.5 each have been
allotted as fully paid-up pursuant to a scheme of amalgamation without payment
being 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 |
171.880 |
171.880 |
171.880 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3521.496 |
4429.304 |
4257.772 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
3693.376 |
4601.184 |
4429.652 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
3165.743 |
3448.991 |
3629.478 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
3165.743 |
3448.991 |
3629.478 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
45.679 |
71.678 |
|
|
|
|
|
|
|
|
TOTAL |
6859.119 |
8095.854 |
8130.808 |
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
2268.471 |
2328.596 |
2353.793 |
|
|
Capital work-in-progress |
54.616 |
27.394 |
178.497 |
|
|
|
|
|
|
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|
INVESTMENT |
488.468 |
560.943 |
560.523 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2893.676
|
3707.945 |
4308.807 |
|
|
Sundry Debtors |
850.100
|
968.128 |
688.347 |
|
|
Cash & Bank Balances |
278.403
|
219.602 |
44.539 |
|
|
Other Current Assets |
379.062
|
518.480 |
261.589 |
|
|
Loans & Advances |
483.680
|
585.652 |
645.380 |
|
Total
Current Assets |
4884.921
|
5999.807 |
5948.662 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
580.588
|
590.863 |
678.387 |
|
|
Other Current Liabilities |
214.059
|
208.068 |
205.994 |
|
|
Provisions |
42.710
|
21.955 |
26.286 |
|
Total
Current Liabilities |
837.357
|
820.886 |
910.667 |
|
|
Net Current Assets |
4047.564
|
5178.921 |
5037.995 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6859.119 |
8095.854 |
8130.808 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
10795.345 |
10687.426 |
10921.331 |
|
|
|
Other Income |
787.219 |
919.347 |
828.089 |
|
|
|
TOTAL (A) |
11582.564 |
11606.773 |
11749.420 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
6579.004 |
6547.858 |
5814.354 |
|
|
|
Other Manufacturing and Operating Expenses |
3375.029 |
2908.425 |
3201.149 |
|
|
|
Personnel Costs |
1041.125 |
907.188 |
793.565 |
|
|
|
Selling and Administrative Expenses |
743.380 |
589.850 |
506.077 |
|
|
|
Exchange loss/(gain) (net) |
0.000 |
0.000 |
706.030 |
|
|
|
TOTAL (B) |
11738.538 |
10953.321 |
11021.175 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(155.974) |
653.452 |
728.245 |
|
|
|
|
|
|
|
|
|
Less |
FINANCE CHARGES (D) |
363.394 |
346.312 |
351.033 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(519.368) |
307.140 |
377.212 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
351.386 |
352.463 |
342.712 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(870.754) |
(45.323) |
34.500 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
10.056 |
(26.000) |
0.853 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(880.810) |
(19.323) |
33.647 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1789.432 |
1808.755 |
1775.108 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
908.622 |
1789.432 |
1808.755 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB value of exports |
8795.901 |
9299.328 |
9912.148 |
|
|
|
Freight and insurance recoveries |
192.103 |
242.321 |
135.934 |
|
|
TOTAL EARNINGS |
8988.004 |
9541.649 |
10048.082 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital goods |
101.481 |
31.153 |
47.739 |
|
|
|
Raw materials and accessories |
1655.643 |
1531.058 |
1847.422 |
|
|
|
Stores and spares |
1.197 |
7.234 |
3.653 |
|
|
TOTAL IMPORTS |
1758.321 |
1569.445 |
1898.814 |
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss)
Per Share (Rs.) - Before extraodinary item - After extraodinary item |
(24.08) (25.62) |
(0.56) (0.56) |
0.98 0.98 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
2443.630 |
2717.490 |
|
Total Expenditure |
|
2490.510 |
2892.620 |
|
PBIDT (Excl OI) |
|
(46.880) |
(175.130) |
|
Other Income |
|
60.770 |
16.110 |
|
Operating Profit |
|
13.890 |
(159.020) |
|
Interest |
|
75.510 |
59.720 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(61.620) |
(218.740) |
|
Depreciation |
|
78.940 |
82.420 |
|
Profit Before Tax |
|
(140.560) |
(301.160) |
|
Tax |
|
(5.870) |
0.000 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(134.690) |
(301.160) |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(134.690) |
(301.160) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(7.60)
|
(0.17) |
0.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.07)
|
(0.42) |
0.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(12.17)
|
(0.54) |
0.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.24)
|
(0.01) |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.08
|
0.93 |
1.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.83
|
7.31 |
6.53 |
LOCAL AGENCY FURTHER INFORMATION
BACKGROUND
Subject was incorporated
on March 1, 2004 by converting the erstwhile partnership firm Gokaldas
The Company is
engaged in the business of design, manufacture and sale of a wide range of
garments for men, women and children and caters to the needs of several leading
international fashion brands and retailers. The principal source of revenue for
the Company is from export of garments and related products.
REVIEW OF OPERATIONS
Subject, on a
consolidated basis, has reported a total sales of Rs.10818.800 millions in
2010-11 as against Rs.10723.900 millions in 2009-10 representing a growth of 1%
over 2009-10.
The demand
situation in the global apparel industry has not improved significantly during
the year. Economic conditions across their major markets in Europe and
There has been a
decline in garments export from
Their Company has
been able to show nominal growth in sales turnover in these difficult trading
conditions. This has been achieved through initiatives of new customer
acquisition and shift to higher value products. Besides, they adopted renewed
focus on enhancing their business with Indian retailers.
In addition to the
market situation, some of the other environmental factors which have affected
their financial performance have been volatile cotton prices, surge in wage
rates and other operating costs driven by domestic inflation, reduction in
export benefits and currency appreciation. The impact of these factors is
discussed in the following sections.
The increase in
raw material cost, labour costs and other operating expenses have not resulted
in increased product prices due to
overall depressed demand situation, adversely affecting their margins.
This unprecedented
escalation in cotton prices have resulted in a commensurate increase in fabric
prices.
Appreciating Rupee
has been another key factor affecting profitability of all exporters. The Rupee-US
Dollar parity has moved in favor of the Rupee by 4.6% between June 2010 and
March 2011. Trend of Re-USD and Re-Euro for past two years is given alongside.
There have also
been certain changes in the exports incentives given by the Government of India
during the year. Pursuant to this, there has been reduction in export benefits
for the Apparel Industry. This change has hurt the competitiveness of the
exporters in the industry vis-ŕ-vis other countries.
Their efforts on
working capital management have been fruitful during the year. They have
achieved a reduction of Rs.283.200 millions in Secured Loans, which has come
down from Rs.3448.900 millions as of March 31, 2010 to Rs.3165.700 millions as
of March31, 2011. Inventory holding period has also been reduced by 22% from
207 days in 2009-10 to 161 days in 2010-11 Similarly, Sundry Debtors have also
come down by 13%.
In April 2010,
there was a fire incident in one of their warehouses against which they had
lodged an insurance claim for Rs.376.400 millions. The Insurance Company
settled this claim for Rs.323.300 millions, resulting in a one – time loss of
Rs.53.100 millions in 2010-11.
For the year
2011-12, they have undertaken certain key measures to improve their
performance. Some of these are – focus on increasing share with existing customers and realizing better
value, new customer acquisition, improving manufacturing efficiencies and
sustaining the focus on tighter financial management. These initiatives along
with improved productivity measures will help us post better results in the
coming year.
MANAGEMENT DISCUSSION AND ANALYSIS
INTRODUCTION
Subject is one of
the apparel exporters of
Subject has a
diversified product portfolio across various categories of garments for men,
women and children.
INDUSTRY SCENARIO
Their key markets
continue to be
The recovery in
the global economy continues to be weak. Economic scenario in
The customers are
looking for “value for money” products. This has prompted companies globally to
work on strategies for controlling costs and reducing inventories resulting in
lower demand situation and stagnant prices. Further, this year saw brands and
manufacturers reeling under the pressure of unprecedented increase in raw
material prices as well as spiraling operating costs on account of inflationary
situations in all Asian economies.
The Indian
Economy, however, has been strong this year too. Though there are concerns of
high inflation resulting in restrictive monetary policies – RBI has increased
repo rates by a cumulative of 325 basis points since April 2010, the consumer
sentiment has been positive. However, going forward there are questions on
sustainability of this growth trend.
In this backdrop,
countries like
CONTINGENT LIABILITIES
|
Particulars |
As on 31.03.2011 Rs. in millions |
|
Claims against the Company not acknowledged as debts |
23.902 |
|
Guarantees given by banks |
30.560 |
|
Outstanding letters of credit |
104.944 |
|
Export Bills discounted with banks |
1415.384 |
|
Estimated amount of contracts remaining to be executed on capital
accounts and not provided for (net of advances) |
32.071 |
FIXED
ASSETS
· Land
· Buildings
· Leasehold Improvements
· Plant and Machinery
· Electrical Equipments
· Office Equipments
· Furniture and Fixtures
· Computers
· Vehicles
WEB DETAILS
BUSINESS DESCRIPTION
Subject is an India-based company. The Company is engaged in
the business of design, manufacture and sale of a range of garments for men, women
and children and caters to the needs of several international fashion brands
and retailers. The principal source of revenue for the Company is from export
of garments and related products. As of March 31, 2010, subject had more than
40 factories spread across in
BOARD OF DIRECTORS
Mr. Richard B.
Saldanha - Non-Executive Chairman
Shri. Richard B Saldanha has been appointed
as Non-Executive Chairman of the Board of subject effective May 25, 2011. He
was appointed as an Additional Director of the Company on April 01, 2011. He
served as Non-Executive Director of the Company till March 2009. Shri. Richard
B Saldanha holds Bachelor Degree in Mechanical Engineering from
Education
B Mechanical Engineering,
Mr. Prince
Asirvatham - Non-Executive Independent Director
Shri. Prince Asirvatham is Non-Executive
Independent Director of subject. Shri. Prince Asirvatham is a Fellow of the
Institute of Chartered Accountants of India. He is a former Group Treasurer and
Head of Mergers and Acquisitions of Hindustan Lever Limited. In his 28 year
employment with Hindustan Lever Limited and Unilever Plc, he set up a world
class treasury operations managing over Rs.30000.000 millions in cash
operations and Rs.20000.000 millions in foreign currencies. Shri. Prince
Asirvatham has worked in
Mr. Gautam
Chakravarti - Chief Executive Officer, Whole-Time Director
Mr. Gautam Chakravarti is Chief Executive Officer,
Whole-Time Director of subject, since April 1, 2011. He was appointed as
Additional Director effective February 3, 2011.
Mr.
Mathew Cyriac - Non-Executive Director
Shri. Mathew Cyriac serves as Non-Executive Director
of subject. Shri. Mathew Cyriac holds a Bachelor Degree in Engineering and an
MBA from the Indian Institute of Management,
Education
MBA, Indian Institute of Management,
B Engineering, Indian Institute of
Management,
Mr.
Akhilesh Krishna Gupta - Non-Executive Director
Shri. Akhilesh Krishna Gupta is Non-Executive
Director of subject. Shri. Akhilesh Krishna Gupta holds a Bachelor Degree in
Chemical Engineering with distinction from the Indian Institute of Technology,
Education
MBA,
B Chemical Engineering, Indian Institute of
Technology,
Mr.
J. H. Mehta - Non-Executive Independent Director
Shri. J. H. Mehta is Non-Executive
Independent Director of subject. He holds a Bachelor Degree in Commerce and an
MBA from the Indian Institute of Management, Ahmedabad. He has also done the
advance Management Programme from
Education
MBA, Indian Institute of Management,
Ahmedabad
B Commerce, Indian Institute of Management,
Ahmedabad
Mr.
Partha Sarkar - Non-Executive Independent Director
Shri. Partha Sarkar is Non-Executive
Independent Director of subject. He holds a Bachelor Degree in Technology and
an MBA from the Indian Institute of Management, Ahmedabad. He is having 34
years of experience in business with 21 years with the well-known Tata Group of
companies in diverse industries. CEO in Tata Finance Limited, Escorts Finance
Limited, and other finance companies in
Education
MBA, Indian Institute of Management,
Ahmedabad
B Technology, Indian Institute of
Management, Ahmedabad
Mr.
Arun K. Thiagarajan - Non-Executive Independent Director
Shri. Arun K. Thiagarajan is Non-Executive
Independent Director of subject. He holds a Master Degree in Engineering and
has done Advanced Management Program from the
Education
M Electrical Engineering, Royal Institute of
Technology
Business Administration,
PRESS RELEASES
OPENING
Mumbai,
October 28 -- Euro zone leaders have finally unveiled the much awaited crisis
plan. As part of the new plan, the member countries will boost the rescue fund
by a trillion euros. Private-banks will have to take a bigger haircut on Greek
debt. And in a move to ringfence the banking system, the leaders also decided
to increase banks' capital.
Overall,
the plan is being seen as a step in the right direction. Even though it does
not spell the end of the crisis, markets are rejoicing at the development.
Helping
the sentiment is positive economic data from the
The
European deal and robust GDP numbers led to a rally in US stocks. The S and P
500 surged 3.43% to 1,284 on buying in financial services stocks.
Asian
markets also opened on a firm note. The strong GDP growth numbers reduced
concerns about the
Back
home, food prices surged again. For the week ended 15 October, the food
inflation rate stood at 11.43%.
In
specific stocks, expect positive momentum to continue in Gokaldas Exports
stock. According to reports, the company is set to receive new business
contracts from Wal-Mart and some niche fashion houses.
Zee
Learn is increasing its focus on school outsourcing - managing schools owned by
corporate houses or the government. The company is in talks to manage a school
run by steel manufacturer JSL Stainless Limited and some other companies.
Infosys
is on a hunt to buy companies in the healthcare and life science sectors.
According to reports, the company is willing to spend as much as $700 million
on acquisitions to build capabilities in niche segments.
Unable
to mine enough coal, Coal
Wipro
is restructuring its computer infrastructure management services business.
According to reports, the company is merging the global and domestic functions
to reduce overlap among different units.
Uttarakhand
Jal Vidyut Nigam (UJVN) is looking to form a joint venture with GAIL to set up
two power plants in Uttarakhand. The firm is expected to seek the state cabinet's
approval in this regard.
NHPC
and Indian Hotels will declare their September quarter earnings today.
Finally,
thanks to a microchip, a dog missing for four months was reunited with its
master. The dog, Petey, was found in
INDIAN EQUITIES
REGAIN STRENGTH; NIFTY ABOVE 5,350 MARK
India, October 28 -- Indian equities regained strength and continued its
firm trade as buying emerged among the frontline counters, which pulled the
market up with investors hunting for fundamentally beaten down stocks paying no
heeds towards the weekly inflation numbers which hit 6-month high of 11.43% for
week ended October 15. Traders were seen piling up the position in Metal,
Realty and Bankex sector while selling was witnessed in Consumer Durables
sector. Metal sectors were seen rallying in the market on back of good support
from Sterlite Industries, Hindalco and Jindal Steel which were seen trading
with 8 to 11% gain. Apart from this, other metal shares rose on the local
bourses as LMEX, a gauge of six metals traded on the London Metal Exchange,
jumped on Thursday, October 27, 2011. Capital Goods sector were up due to heavy
buying in front line counters like L and T which surged by 4% along with
support from stocks like ABB, Siemens, BHEL, Praj Industries, BEML and Punj
Lloyd. Shares of three state-run oil marketing firms HPCL, BPCL and IOC are
trading in red after crude oil prices crossed $90 mark amid economic data
indicating the strongest
GOKALDAS EYES MEGA
WAL-MART CONTRACT
MUMBAI:
Private equity giant Blackstone-controlled apparel exporter Gokaldas Exports is
set for new business contracts with the world's largest retailer Wal-Mart and
niche European fashion houses who are shifting a part of their sourcing
requirements from
Wal-Mart
Stores Inc is expected to land a six million pieces annual order while making
it one of the largest clients for the Bangalore-based Gokaldas, said a company
executive on condition of anonymity.
German
outdoor and leisure clothier Jack Wolfskin, US-based Sports Authority Inc and
Tailor Vintage are some of the fashion enterprises that are talking to the
Indian exporter as they seek wider sourcing footprint.
Rising
labour costs, high inflation and appreciating yuan have prompted several global
retailers to move some part of their sourcing from
"Wal-Mart
is stepping up apparel sourcing from
Gokaldas
Exports CEO Gautam Chakravarti could not be reached for comments.
These
moves come at a time when
Wal-Mart's
order for its mainstay US operations could be in range of $35-40 million
(around Rs.1750.000 millions) annually and would absorb utilization of three
factories, said the company source mentioned earlier. Nike and Abercrombie are
among the biggest clients of Gokaldas. The company's top eight clients account
for roughly 80% of its annual revenue. Gap Inc and Nike alone accounted for
almost 50% of Gokaldas revenue when Blackstone acquired it four years ago.
Some
industry experts speaking on condition of anonymity argued that Gokaldas may be
looking at capacity utilization rather than value in its deal with Wal-Mart,
which is known for driving down costs. Gokaldas has also been at work to
increase or renew business with high value fashion retailers like Abercrombie
and Diesel in a bid to shore up overall margins that are still in high single
digits.
Chennai-based
Ambattur Clothing also took the same route to
The
labour crunch is pushing exporters to
Interestingly,
"The
dearth of labour made us look outside Chennai. Production costs are 25-30 %
lower in
"The
competition for labour is very high here. Labour costs have become prohibitive
for a large factory," Jaichand says.
Jay
Jay employs about 1,500 persons at its
While
workers get about $120 (around Rs 5,900) a month as wages here, it is only
$60-70 a month in
Jay
has already put in about half of its planned $10 million investments in
The
Bangladeshi odyssey, however, is not entirely a hassle-free one for firms.
Apart from the export processing zones, power supply is erratic and
transportation is slow due to bad roads. A consignment from Dhaka to
"There
would be no significant advantage as buyers would quote only a
Global
buyers quote up to 25% lower prices for low-end garments made in
But
the recent free trade agreement (FTA) between
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.51.98 |
|
|
1 |
Rs.80.59 |
|
Euro |
1 |
Rs.69.12 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--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.