MIRA
INFORM REPORT
|
Report Date : |
18.10.2011 |
IDENTIFICATION DETAILS
|
Name : |
MARAL OVERSEAS LIMITED |
|
|
|
|
Registered
Office : |
Maral Sarovar V and P.O. Khalbujurg, Tehsil Kasrawad, Khargone -
541160, Madhya Pradesh |
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|
|
Country : |
India |
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Financials (as
on) : |
31.03.2011 |
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|
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|
Date of
Incorporation : |
27.01.1989 |
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Com. Reg. No.: |
10-008255 |
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Capital
Investment / Paid-up Capital : |
Rs. 723.620 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17124MP1989PLC008255 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BPLM01290C BPLM03544C BPLM01008A |
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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
: |
Manufacturer and Seller of Cotton Yarn, Knitted Fabrics and Knitted
Garments |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (21) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Moderate |
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|
|
|
Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. There appears
huge accumulated losses recorded by the company. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some caution.
|
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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office / Work Office : |
Maral Sarovar V and P.O. Khalbujurg, Tehsil Kasrawad, Khargone -
541160, Madhya Pradesh, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
|
E-Mail : |
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|
Website : |
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Corporate Office : |
Bhilwara Towers, A-12, Sector-1, Noida - 201301, Uttar Pradesh, India |
|
Tel No.: |
91-120-4390000 |
|
Fax No.: |
91-120-4390157 |
|
|
|
|
Noida Unit (Work Office) |
A-11, Hosiery Complex, Phase - II (Extension), Noida – 201305, Uttar
Pradesh, India |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. L. N. Jhunjhunwala |
|
Designation : |
Chairman-Emeritus |
|
|
|
|
Name : |
Mr. Ravi Jhunjhunwala |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Shekhar Agarwal |
|
Designation : |
Managing Director |
|
|
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|
Name : |
Mr. D. N. Davar |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Kamal Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. S. Dasgupta |
|
Designation : |
Director |
KEY EXECUTIVES
|
CORPORATE OFFICE |
|
|
Name : |
Mr. P. S. Puri |
|
Designation : |
Chief Financial Officer |
|
|
|
|
SAROVAR UNIT |
|
|
Name : |
Mr. Tarun Baldua |
|
Designation : |
President |
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|
|
|
NOIDA UNIT |
|
|
Name : |
Mr. Naveen Maheshwari |
|
Designation : |
Vice President |
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|
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COMPANY SECRETARY |
|
|
Name : |
Mr. Vikas Prakash |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
2818273 |
6.79 |
|
Bodies Corporate |
28291556 |
68.16 |
|
Sub Total (A)
(1) |
31109829 |
74.95 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
1100 |
-- |
|
Financial Institutions / Banks |
300 |
-- |
|
Insurance Companies |
19309 |
0.05 |
|
Foreign Institutional Investors |
5.800 |
0.01 |
|
Sub Total (B)
(1) |
26509 |
0.06 |
|
|
|
|
|
2. Non Institutions
|
|
|
|
Bodies Corporate |
1930911 |
4.65 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
6102787 |
14.70 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
2322101 |
5.59 |
|
Any others |
15863 |
0.04 |
|
|
|
|
|
Clearing Members
|
15863 |
0.04 |
|
|
|
|
|
Sub Total (B)
(2) |
10371662 |
24.99 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
|
|
|
|
|
Total (A) + (B) +(C) |
41508000 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Cotton Yarn, Knitted Fabrics and Knitted
Garments |
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Products : |
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PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
|
Spindles |
Nos. |
75600 |
|
Knitted Fabric |
MT/Annum |
5400 |
|
Processed Fabric |
MT/Annum |
5229 |
|
Dyed Yarn |
MT/Annum |
1000 |
|
Readymade Garments |
Lac Pcs./Annum |
48 |
|
Particulars |
Unit |
Production
% / Purchases |
|
Yarn * |
MT |
18590.468 @ |
|
Dyed Yarn |
MT |
1536.580$ |
|
Knitted Fabric |
MT |
4487.439# |
|
Processed Fabric |
MT |
4245.753^ |
|
Garments/ Made-ups |
Lac Pcs |
36.629 |
|
Cotton/Other Waste |
MT |
7432.006 |
* Includes surplus captive and standby power
|
Notes |
Units |
31.03.2011 |
|
@ Includes outside production/purchases |
MT |
2028.675 |
|
$ Includes outside production/purchases |
MT |
420.005 |
|
# Includes outside production/purchases |
MT |
1437.877 |
|
^ Includes outside processing/purchases |
MT |
253.759 |
|
% Production excludes quantities produced for third parties under
contract with the Company |
|
|
GENERAL INFORMATION
|
Bankers : |
·
State Bank of India ·
Bank of Baroda ·
Export-Import Bank of India ·
Central Bank of India ·
Industrial Development Bank of India Limited ·
Axis Bank Limited ·
Canara Bank ·
The Jammuand Kashmir Bank Limited ·
State Bank of Patiala ·
State Bank of Hyderabad ·
State Bank of Bikaner and Jaipur ·
IndusInd Bank Limited ·
Yes Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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|
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|
Auditors : |
|
|
Name 1 : |
Doogar and Associates Chartered Accountant |
|
Address : |
New Delhi, India |
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|
|
|
Name 2 : |
Ashim and Associates Chartered Accountant |
|
Address : |
New Delhi, India |
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|
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Related Parties : |
-
HEG Limited -
RSWM Limited -
BMD Private Limited -
Agarwal Trademart Private Limited -
Mayur Knits Private Limited -
Ultramarine Impex Private Limited -
Apeksha Vyapar Private Limited -
Indo Canadian Consultancy Services Limited -
BSL Limited -
Bhilwara Spinners Limited -
Cheslind Textiles Limited -
Pawanputra Trading Private Limited -
Sita Nirman Private Limited |
CAPITAL STRUCTURE
As on : 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
44000000 |
Equity Shares |
Rs.10/- each |
Rs. 440.000
Millions |
|
3100000 |
Cumulative Redeemable Preference Shares |
Rs. 100/-
each |
Rs. 310.000
Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 750.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
41508000 |
Equity Shares |
Rs.10/- each |
Rs. 415.080
Millions |
|
1885400 |
8% Cumulative Redeemable Preference
Shares |
Rs.100/-
each |
Rs.
188.540 Millions |
|
1200000 |
3% Cumulative Redeemable Preference Shares |
Rs. 100/-
each |
Rs. 120.000
Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 723.620 millions |
Notes :
1.
Equity Share Capital includes 16,68,837 equity
shares issued for consideration other than cash, pursuant to the Scheme of
merger of erstwhile Asian Knitwears Limited.
2.
8 per cent (CRPS) allotted to the various banks and
financial institutions, pursuant to the Corporate Debt Restructuring (‘CDR’)
Package, are redeemable in four equal annual installments from 2016 to 2019.
3.
3 Per cent (CRPS) allotted to promoters, against
infusion of funds by them, pursuant to the Corporate Debt Restructuring (‘CDR’)
Package, are redeemable on 31st March, 2019.
4.
The CDR package grants a right to the various banks
and financial institutions to convert 20% of their debt outstanding beyond seven
years from the date of CDR Letter i.e March 26, 2009 into equity shares, as per
SEBI guidelines / loan covenants, whichever is applicable.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
30.09.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
723.620 |
683.620 |
406.120 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
471.354 |
471.354 |
471.354 |
|
|
4] (Accumulated Losses) |
(800.979) |
(908.723) |
(934.557) |
|
|
5] Share Capital – Pending Allotment |
0.000 |
0.000 |
197.500 |
|
|
NETWORTH |
393.995 |
246.251 |
140.417 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2893.245 |
2765.563 |
2847.960 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
40.000 |
|
|
TOTAL BORROWING |
2893.245 |
2765.563 |
2887.960 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3287.240 |
3011.814 |
3028.377 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
|
|
|
Capital work-in-progress |
2134.349 |
2301.252 |
2389.091 |
|
|
|
10.236 |
0.390 |
1.150 |
|
|
INVESTMENT |
|
|
|
|
|
DEFERREX TAX ASSETS |
0.302 |
0.302 |
1.367 |
|
|
|
0.000 |
0.000 |
0.000 |
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1080.420
|
575.243 |
374.166 |
|
|
Sundry Debtors |
566.820
|
313.049 |
329.994 |
|
|
Cash & Bank Balances |
32.700
|
42.250 |
75.030 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
314.727
|
336.305 |
331.631 |
|
Total
Current Assets |
1994.667
|
1266.847 |
1110.821 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
854.436
|
337.743 |
337.742 |
|
|
Other Current Liabilities |
44.064
|
195.628 |
122.236 |
|
|
Provisions |
42.964
|
24.969 |
15.959 |
|
Total
Current Liabilities |
853.336
|
558.340 |
475.937 |
|
|
Net Current Assets |
1141.331
|
708.507 |
634.884 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
1.022 |
1.363 |
1.885 |
|
|
|
|
|
|
|
|
TOTAL |
3287.240 |
3011.814 |
3028.377 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
30.09.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5091.093 |
1996.205 |
5186.261 |
|
|
|
Other Income |
87.275 |
38.697 |
84.948 |
|
|
|
Net Profit / (loss) on sale of Fixed assets (Discounting Operations) |
0.517 |
(0.004) |
4.641 |
|
|
|
TOTAL (A) |
5178.885 |
2034.898 |
5275.850 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials |
3662.799 |
1347.938 |
3524.093 |
|
|
|
Operating and Other Expenses |
974.191 |
441.803 |
1390.371 |
|
|
|
Increase / Decrease in Stock |
(65.136) |
(13.805) |
67.051 |
|
|
|
Impairment Loss |
40.244 |
0.000 |
0.000 |
|
|
|
TOTAL (B) |
4612.098 |
1775.936 |
4981.515 |
|
|
|
|
|
|
|
|
Less |
PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION
AND AMORTISATION (A-B) (C) |
566.787 |
258.962 |
294.335 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
245.017 |
125.197 |
396.464 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
321.770 |
133.763 |
(102.129) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
193.103 |
97.873 |
312.542 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
128.667 |
35.892 |
(414.671) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.914 |
4.022 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
128.667 |
34.978 |
(418.693) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(1237.339) |
(1263.173) |
(844.480) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
0.000 |
|
|
|
Dividend |
18.003 |
7.842 |
0.000 |
|
|
|
Tax on Dividend |
2.920 |
1.302 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
(1129.595) |
(1237.339) |
(1263.173) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3386.869 |
1285.895 |
3510.791 |
|
|
|
Other Earnings |
42.368 |
21.817 |
71.693 |
|
|
TOTAL EARNINGS |
3429.237 |
1307.712 |
3582.484 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
42.957 |
26.236 |
261.289 |
|
|
|
Stores & Spares |
46.859 |
27.445 |
79.045 |
|
|
|
Capital Goods |
48.566 |
1.782 |
4.035 |
|
|
TOTAL IMPORTS |
138.382 |
55.463 |
344.369 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
2.60 |
0.69 |
(19.24) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
1353.600 |
|
Total Expenditure |
|
|
1178.800 |
|
PBIDT (Excl
OI) |
|
|
174.800 |
|
Other Income |
|
|
0.100 |
|
Operating
Profit |
|
|
174.900 |
|
Interest |
|
|
76.700 |
|
Exceptional
Items |
|
|
(59.800) |
|
PBDT |
|
|
38.400 |
|
Depreciation |
|
|
47.800 |
|
Profit
Before Tax |
|
|
(9.400) |
|
Tax |
|
|
0.000 |
|
Reported PAT |
|
|
(9.400) |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
(9.400) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
30.09.2009 |
|
PAT / Total Income |
(%) |
2.48
|
1.71 |
(7.93) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.52
|
1.79 |
(7.99) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.30
|
1.00 |
(11.84) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.32
|
0.14 |
(2.95) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
9.50
|
13.49 |
23.95 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.33
|
2.26 |
2.33 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL YEAR
The last financial
year ended 31st March, 2010 of the Company comprised of only 6 months period as
the financial year prior to that was extended by six months and ended on 30th September,
2009 for an 18 months’ period. However, the accounts of the Company for the
year ended the 31st March, 2011 have been prepared for the twelve months period
i.e. from 1st April, 2010 to 31st March, 2011.
OPERATIONS
The Directors feel
pleasure in informing the members that due to a number of steps taken by the
management in the last couple of years, including the successful implementation
of CDR package, the operations of the Company improved during the year, despite
a few impediments such as quantitative restriction on export of cotton yarn in
last quarter of the financial year and a very steep rise in the prices of raw
cotton.
The Company
achieved a Turnover of Rs. 5091.100 millions for the year ended the 31st March,
2011 against `Rs. 1996.300 millions in the previous year ended the 31st March,
2010 (six months period). The Company achieved an operating profit of
Rs.607.000 millions against Rs.258.900 millions in the previous six months
period.
During the period,
the Company has been able to achieve a production of 16562 MT of cotton yarn
(8452 MT), 1117 MT of dyed yarn (548 MT), 3050 MT of grey knitted fabric (1348
MT), 3992 MT of processed fabric (2043 MT) and 3.663 millions pieces of textile
made-ups (1.799 millions pieces).
DIVIDEND
The Directors
recommend to the Annual General Meeting, a preference dividend @ 8% p.a. i.e
Rs. 8/- per share on 18,85,400 Cumulative Redeemable Preference Shares (CRPS)
of Rs.100/- each issued to various Banks/ Institutions; @ 3% p.a. i.e. Rs.3/-
per share on 8,00,000 Cumulative Redeemable Preference Shares (CRPS) of Rs.
100/- each and Rs. 1.30 on 4,00,000 Cumulative Redeemable Preference Shares
(CRPS) of Rs.100/- each issued to persons forming part of promoter and promoter
group, in accordance with CDR package.
The dividend on
CRPS will absorb Rs.20.923 millions (inclusive of distribution tax). A proposal
for confirmation of the dividend on CRPS will be placed before the shareholders
at the ensuing Annual General Meeting. No dividend is recommended on the Equity
Shares.
INDUSTRY SCENARIO
The textile
industry in the Country of late has responded positively vis-ŕ-vis the recovery
in the global economies, particularly in the U.S and Europe. The margins
improved due to revival in demand and improvement in sentiments across the
globe. The textile industry, during the period under review, underwent a lot of
global events impacting the overall industry scenario. The cotton crop in many
producing countries such as China and Pakistan failed due to natural calamities
faced by these countries. Fortunately our country had a slightly better crop of
cotton in the current cotton year. In order to ensure cotton supply for
domestic consumers, the Government capped cotton exports from India at 935
million kgs.
The rise in cotton
imports by countries like China, Bangladesh, Pakistan and others coupled with a
stagnant world supply of cotton resulted in an all time high in prices of
cotton globally. The down stream industry except the retail, was able to absorb
a major part of this raw material cost increase.
The Directors are
optimistic that the current uptrend in demand will continue to enable the
Company to report further improvement in its performance in years to come.
MANAGEMENT DISCUSSION AND ANALYSIS
The global textile
industry is undergoing growth, restructuring and relocation in the wake of
dismantling of restrictions on the movement of textile products across the
world. India’s textiles and clothing industry holds significant status and is
one of the largest contributing sectors of India’s exports worldwide. The Role
of Textile Industry in India’s GDP at 4% also includes a hike in the investment
flow both in the domestic market and the export production of textiles. It has
been assumed that by the year 2012, the investment in textile industry is most
likely to touch USD 38.14 billion. Textiles and Clothing employ 35 mn people
directly and contributes to 9% of India’s exports at $ 22 billion.
As per the Index
of Industrial Production (lIP) data released by the Central Statistical
Organization (CSO), cotton textiles has registered a growth of 8.2 per cent
during April to September 2010-11, while wool, silk and man-made fibre textiles
have registered a growth of 2.2 per cent and textile products including wearing
apparel have registered a growth of 3 per cent. Textiles, overall, constitutes
14 per cent of industrial production in India. Further, as per the press
release issued by Ministry of Textiles dated November 2, 2010, India has the
potential to increase its textile and apparel share in the world trade from the
current level of 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020.
Thus, the growth
and all round development of this industry has a direct bearing on the
improvement of the economy of the nation. Besides, there are a large number of
allied and ancillary industries dependent on this sector, such as those
manufacturing machinery, accessories, stores, ancillaries, dyes and chemicals
etc.
The Government has
taken a number of steps for expansion of Textile Industry including technology
upgradation and modernization of textile mills under the Technology Upgradation
Fund Scheme and Technology Mission on cotton through various Mini Missions,
support for industry infrastructure through Scheme for Integrated Textile Parks
(SITP); Integrated Scheme for Development of Powerloom Sector along with Group
Workshed Scheme for the sector, scheme for skill upgradation of textiles
workers under the Integrated Skill Development Scheme and other capacity
building programmes for the industry like Knitwear Technology Mission. In
addition, various fiscal incentives are provided for exports of Textile and
Clothing items under various provisions of the Foreign Trade Policy - 2009-14.
Also during the
financial year ended March 31, 2011, the Ministry of Textiles informed a
parliamentary panel that it proposes to allocate US$ 785.2 million for the
modernisation of the textile industry. In the last few years, India’s textile
sector is rapidly integrating with the global textile industry with alliances
and acquisitions in the wake of dismantling of restrictions on the movement of
textile products across the world. As a result, the Competition for India’s
textile companies became bigger and non-traditional. The Indian textile
producers in order to sustain their existence, built up better competence with
respect to cost, services, innovation, technology upgradation, value added
products etc. to face these global challenges viz. tough competition with low
cost producing neighboring countries, uncompetitive pricing, costly raw
material etc. Further, due to elimination of quantitative restrictions, the
Indian textile industry was also subjected to tough foreign competition due to
low-cost imports from neighboring countries.
Maral Overseas
Limited (MOL), realizing these challenges, is fully geared to meet them. The
Company, in the past, undertook substantial investments in upgrading
technology, building scales and creating cost efficient manufacturing
operations and to focus on cost efficient operations, value added products,
quality, competitive pricing, design, meeting delivery schedules etc. which
have started to yield results.
BUSINESS
MOL is one of the
leading manufacturer and exporter of cotton yarn, knitted fabric (both grey and
processed) and knitted garments. During the year, cotton prices touched an all
time high in over 140 years due to major demand from China and other countries
and lower production in Pakistan due to floods. During the financial year ended
March 31, 2011, the Company achieved a Turnover of Rs.5091.100 millions against
Rs.1996.200 millions in the previous year ended the 31st March, 2010 (six
months period) and the operating profit of the Company is Rs. 607.000 millions
against Rs.258.900 millions in the previous period.
During the period,
the Company’s exports (FOB value) were to the tune of Rs. 3386.900 millions and
accounts for 66.55 % of MOL’s Turnover. The yarn business accounts for 65.81%
(Previous year 61.98%) while knitted fabric and textile made-ups business accounts
for 23.32% and 10.87% respectively.
The Company is
focused on value-addition and cost control, in order to be competitive and
survive in global market. The Company expects that demand for fabrics and yarn
is likely to increase in the months to come, as exports of textiles and apparel
from the country should rise. The Company offers to its customers the finest
quality of yarn which commands a premium in the global market. It is expected
that increased demand for Indian yarn and fabric in the months to come would
benefit the Company.
INTERNAL CONTROL
SYSTEMS AND THEIR ADEQUACY
The Company
maintains a system of internal controls designed to provide a high degree of
assurance regarding the effectiveness and efficiency of operations, the adequacy
of safeguards for assets, the reliability of financial controls and compliance
with applicable laws and regulations. The Company takes abundant care to
design, review and monitor the working of internal control system. The Company
has also implemented suitable controls to ensure that all resources are
utilized optimally, financial transactions are reported with accuracy and there
is strict adherence to applicable laws and regulations. The Company has also in
place, well documented policies on most aspects of its business which are
regularly discussed and monitored by the Audit Committee of the Board. The
Management of the
Company and the Audit Committee regularly interact with internal and management
auditors and seek their independent opinion on the policies and procedures
being followed at its various units.
UN-AUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 30TH JUNE,
2011
(Rs. In millions)
|
Particulars |
Quarter Ended 30.06.2011 (Unaudited) |
|
(a) Net Sales/ Income from
operation |
1331.800 |
|
(b) Other Operating Income |
21.800 |
|
Total Income |
1353.600 |
|
2. Expenditure |
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
(215.200) |
|
b. Consumption of Raw-Materials |
1141.500 |
|
c. Purchase of Traded Goods |
0.000 |
|
d. Employees Cost |
95.700 |
|
e. Depreciation |
47.800 |
|
f. Other Expenditure |
156.800 |
|
g. Total |
1226.600 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
127.000 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
0.100 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
127.100 |
|
6. Interest |
76.700 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
50.400 |
|
8. Exceptional Items |
59.800 |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
(9.400) |
|
10. Tax Expenses |
0.000 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
0.000 |
|
12. Extraordinary Items |
0.000 |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
(9.400) |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
415.100 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
|
|
16. Earning per Share (EPS) |
|
|
a) Basic and diluted EPS before extraordinary items for the period, for
the year to date and for the previous year (not annualised) |
(0.36) |
|
b) Diluted and diluted EPS after extraordinary items for the
period,for the year to date and for the previous year (not annualised) |
(0.36) |
|
17. Public Shareholding |
|
|
Number of Shares |
|
|
% of Share holding |
10394761 |
|
18. Promoters and promoter group Shareholding |
25.04 |
|
a) Pledged/Encumbered |
|
|
- Number of shares |
14942880 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
48.03% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
36.00% |
|
b) Non-encumbered |
|
|
- Number of shares |
16170359 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter group) |
51.97% |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
38.96% |
SEGMENT WISE
REVENUE RESULTS AND CAPITAL EMPLOYED
|
Particulars |
Quarter Ended 30.06.2011 Unaudited |
|
Segment Revenue |
|
|
Yarn |
1181.800 |
|
Fabrics |
500.700 |
|
Garments |
200.600 |
|
Total |
1883.100 |
|
Less : Inter Segment revenue |
551.300 |
|
Net Sales /
Income From Operations |
1331.800 |
|
|
|
|
Segment Result |
|
|
(Earnings (+)/(-) Before tax and Interest from Each Segment |
|
|
Yarn |
28.600 |
|
Fabrics |
31.200 |
|
Garments |
2.500 |
|
Total |
62.300 |
|
Less : |
|
|
Interest |
69.400 |
|
Other Un-allocable expenditure net off unallocable income |
2.300 |
|
Total Profit
Before Tax |
(9.400) |
|
|
|
|
Capital Employed
|
|
|
(segment assets- Segment Liabilities) |
|
|
Yarn |
2554.100 |
|
Fabrics |
368.500 |
|
Garments |
150.400 |
|
Total |
3073.000 |
|
Other Assets |
113.700 |
|
Total Capital
Employed |
3186.700 |
|
|
|
Notes :
1. The Auditor Have Conducted Limited Review of the Financials Results for
the Quarter ended 30th June 2011. The above financial Results were
reviewed by the Audit Committee and thereafter were approved and taken on
record by the board of Directors at its meeting held on 26th July,
2011
2. There was no investor’s complaints pending at the beginning of the
quarter ended 30th June, 2011. The company received 2 complaints and
resolved both of them during the quarter.
3. The figures of the previous period / year have been regrouped / recast
wherever considered necessary.
AS PER WEBSITE DETAILS :
Subject is a manufacturer and exporter of cotton yarn, knitted fabric
(both grey and processed) and knitted garments. The Company is organized into
three segments: Yarn, Fabric and Textile Made-ups. Yarn includes bought out
yarn, as well as production of cotton yarn over a range of counts. It also
includes surplus captive and standby power. Fabric includes both bought out
fabric, as well as the activities relating to knitting, dyeing and processing.
Textile Made-ups, comprises made-ups made for international brands. During the
fiscal year ended March 31, 2010 (fiscal 2010), the yarn business accounted for
61.98% of its revenue, and knitted fabric and textile made-ups business
accounted for 24.7% and 13.32% of its revenue, respectively. During fiscal
2010, the Company produced 8,452 metric tons of cotton yarn, 548 metric tons of
dyed yarn, 1,348 metric tons of grey knitted fabric, 2,043 metric tons of
processed fabric and 1.799 million pieces of textile made-ups. For the nine
months ended 31 December 2010, Maral Overseas Limited's revenues increased 32%
to RS3.84B. Net income totaled RS118M up from RS56.6M. Revenue reflects an
increase in income from yarn division, higher income from fabric division and a
rise in other operating income. Net income also reflects a rise in operating
and gross profit margins. The company is one of the leading manufacturer and
exporter of cotton yarn, knitted fabric and knitted garments.
MANAGEMENT
|
|
|
|
L. N. Jhunjhunwala - Chairman – Emeritus
– Chairman - Reuters Biography (Maral Overseas Limited)
Shri. L. N. Jhunjhunwala is the Chairman - Emeritus of Maral Overseas
Ltd. He is a Non-Executive Promoter Director of the Company. Mr. Jhunjhunwala
is a gold medallist in B.A. Maths (Hons) from Calcutta University. Mr. Jhunj
hunwala is a industrialist and philanthropist with business experience and
diversified interests.
BA Mathematics, University of Calcutta
Ravi Jhunjhunwala
- Non-Executive Chairman of the Board – Chairman
Reuters Biography (Maral Overseas Limited)
Shri. Ravi Jhunjhunwala is Non-Executive Chairman of the Board of Maral
Overseas Ltd. Shri. Jhunjhunwala, holds a Bachelor degree in Commerce from
Delhi University and Master in Business Administration from the Centre D’etudes
Industrielles (CEI) Geneva. Shri Ravi Jhunjhunwala joined HEG Limited as a
Management Trainee and having gone through a well planned grooming in all
aspects of Business Management and was later assigned the reins of HEG as
Managing Director. His leadership has enabled the group to establish a presence
in more than 75 countries across five continents today. He is also active on
number of National Management forums and is associated with various chambers of
commerce including CII.
M Business Administration, Centre d'Etudes Industrielles, Geneva
B Commerce, University of Delhi
Shekhar Agarwal -
Chief Executive Officer, Managing Director, Executive Director - Director/Board
Member
Mr. P. S. Dasgupta is Independent Non-Executive Director of Maral
Overseas Ltd. Mr. Dasgupta holds Post Graduate Diploma in Corporate Laws and
Labour Laws, LLB and B.A. Eco. (H). Mr. Dasgupta is an international corporate
lawyer and represents a law firm in Delhi. He serves as a director on the Board
of various national and multinational corporates doing business in India.
Dharmendar Nath
Davar -
|
|
|
|
Independent Non-Executive Director - Director/Board Member
MA Economics, University of Delhi
B , Punjab Agricultural University, Ludhiana
Kamal K. Gupta - Independent
Non-Executive Director - Director/Board Member
Reuters Biography (Maral Overseas Limited)
Dr. Kamal K. Gupta, FCA, FICWA, Ph.D, is Independent Non-Executive
Director of Maral Overseas Limited. He holds FCA, FICWA, PH.D. Dr. Kamal Gupta
is Consultant in the areas of Finance, Accounting and Corporate Laws. Formerly,
Dr. Kamal Gupta was Technical Director of the Institute of Chartered
Accountants of India.
PRESS RELEASE
AII DATA PROCESSING LIMITED
05 SEPTEMBER 2011
Sep 5, 2011 -
Rating agency CARE on Friday reaffirmed the ratings on the long and short-term
bank facilities of Indian cotton yarn manufacturer Maral Overseas Limited
(BOM:521018) at BB- and A4, respectively.
The ratings mirror
the experienced owners of the company and its established marketing tie-ups
with some of the leading apparel brands.
The ratings, however, also reflect the susceptibility of the firm's
profitability margins to volatility in raw material prices, its high financial
risk profile and competition in the sector.
ACCORD FINTECH (INDIA)
23 AUGUST 2011
India, Aug. 23 -- Maral Overseas Limited has informed BSE that 22nd
Annual General Meeting (AGM) of the Company will be held on September 22, 2011.
Published by HT Syndication with permission from ACCORD FINTECH BSE
EQUITY BITES
05 SEPTEMBER 2011
5 September 2011 -
Rating agency CARE on Friday reaffirmed the ratings on the long and short-term
bank facilities of Indian cotton yarn manufacturer Maral Overseas Limited
(BOM:521018) at BB- and A4, respectively.
The ratings mirror
the experienced owners of the company and its established marketing tie-ups
with some of the leading apparel brands.
The ratings, however, also reflect the susceptibility of the firm's
profitability margins to volatility in raw material prices, its high financial
risk profile and competition in the sector.
ACCORD FINTECH (INDIA)
15 APRIL 2011
[India, April 15 -- Maral Overseas Limited has informed BSE that a
meeting of the Board of Directors of the Company will be held on April
26, 2011, inter alia, to consider the Audited Financial Results of the Company
for the quarter and year ended March 31, 2011 and recommendation of dividend on
Cumulative Redeemable Preference Shares. Published by HT Syndication with
permission from ACCORD FINTECH BSE. For any query with respect to this article
or any other content requirement, please contact Editor
FIXED ASSETS :
·
Land
·
Building
·
Plant and Machinery
·
Vehicle
·
Furniture and Office
Equipments
·
Livestock
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. 48.89 |
|
|
1 |
Rs. 77.31 |
|
Euro |
1 |
Rs. 67.78 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
1 |
|
--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 |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
21 |
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.