MIRA
INFORM REPORT
|
Report Date : |
03.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
DAMODAR THREADS LIMITED |
|
|
|
|
Registered
Office : |
A1/202, Centre Point, 243-A, N M Joshi Marg, Lower Parel East, Mumbai
– 400013, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
11.12.1987 |
|
|
|
|
Com. Reg. No.: |
11-045575 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.77.956 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17110MH1987PLC045575 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMD10204F |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACD3850G |
|
|
|
|
Legal Form : |
Public Limited
Liability Company. The company’s
shares are listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The Company is engaged in manufacturing and sale of Textile Products
which is the only reportable segment. |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 1330000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow, but correct. The company can be considered for small to mediocre business dealings
at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
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 : |
A1/202, Centre Point, 243-A, N. M.Joshi Marg, Lower Parel (E), Mumbai
- 400 013, Maharashtra, India |
|
Tel. No.: |
91-22-66610301-2 |
|
Fax No.: |
91-22-66610308 |
|
E-Mail : |
|
|
|
|
|
Factory : |
Survey No. 265/10/1,2 and 3, Demni Road, Dadra Village, D. and N.H.
(U.T.) – 396230, India |
|
Tel. No.: |
91-260-3264788 |
|
Fax No.: |
91-260-2668929 |
|
E-Mail : |
|
|
|
|
|
Branches : |
Located at : ·
Mumbai ·
Surat ·
Bangalore |
DIRECTORS
AS ON 31.03.2010
|
Name : |
Mr. Arunkumar Biyani |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. Ajay D. Biyani |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Anil D. Biyani |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Girdharlal S. Daga |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Rajendra Prasad Khator |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Ashok Kumar Damani |
|
Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Pramod Kumar Jain |
|
Designation : |
Company Secretary and Compliance Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Individuals / Hindu Undivided Family |
5457309 |
61.31 |
|
Bodies Corporate |
536200 |
6.02 |
|
Sub Total (A)
(1) |
5993509 |
67.34 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
1. Institutions |
|
|
|
Financial Institutions / Banks |
700 |
0.01 |
|
Sub Total (B)
(1) |
700 |
0.01 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
1128106 |
12.67 |
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
932782 |
10.48 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 million |
799902 |
8.99 |
|
Any Other (Specify) |
45651 |
0.51 |
|
Non Residents |
|
|
|
Clearing Members |
31160 |
0.36 |
|
Non |
14491 |
0.16 |
|
Sub Total (B)
(2) |
2906441 |
32.65 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
|
|
|
|
|
Total (A) + (B) +(C) |
8900650 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in manufacturing and sale of Textile Products
which is the only reportable segment. |
||||
|
|
|
||||
|
Product : |
|
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Yarn |
Kgs. |
NA |
NA |
9450670 |
|
Job Work (Yarn) |
Kgs. |
NA |
NA |
3561 |
|
Fabrics |
Mtr. |
NA |
NA |
-- |
|
Job Work (Fabrics) |
Mtr. |
NA |
NA |
-- |
|
|
|
|
|
|
GENERAL INFORMATION
|
Bankers : |
·
State Bank of India ·
Bank of Baroda ·
Union Bank of India |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
----- |
|
|
|
|
Auditors : |
|
|
Name : |
A.J. Baliya and Associates Chartered Accountant |
|
Address : |
Mumbai, India |
|
|
|
|
Associates : |
·
Damodar Overseas ·
Aman Industries ·
Samm Silk Mills ·
Panna Yarns Private Limited ·
Shri Damodar Yarn Manufacturing Private Limited ·
Ajay Biyani HUF ·
Arun Kumar Biayni HUF ·
Suam Overseas Private Limited ·
CSS Mercantiles Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7795650 |
Equity Shares |
Rs.10/- each |
Rs.77.956 Millions |
|
|
|
|
|
Note :
Of the above 4,00,000 Equity Shares were
allotted as fully paid-up Bonus shares by capitalization of balance in Profit
and Loss Account
As on : 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs.10/- each |
Rs.150.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8900650 |
Equity Shares |
Rs.10/- each |
Rs.89.006
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
77.956 |
77.956 |
103.791 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
255.792 |
235.172 |
98.672 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
333.748 |
313.128 |
202.463 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
924.782 |
849.670 |
835.107 |
|
|
2] Unsecured Loans |
168.117 |
153.640 |
132.759 |
|
|
TOTAL BORROWING |
1092.899 |
1003.310 |
967.866 |
|
|
DEFERRED TAX LIABILITIES |
63.905 |
43.194 |
27.121 |
|
|
|
|
|
|
|
|
TOTAL |
1490.552 |
1359.632 |
1197.450 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
867.583 |
843.242 |
805.739 |
|
|
Capital work-in-progress |
0.000 |
33.042 |
2.895 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.105 |
0.105 |
0.105 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
378.162
|
265.138 |
178.836 |
|
|
Sundry Debtors |
226.576
|
143.888 |
208.524 |
|
|
Cash & Bank Balances |
20.082
|
19.304 |
14.273 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
88.482
|
147.669 |
100.231 |
|
Total
Current Assets |
713.302
|
575.999 |
501.864 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
64.767
|
55.817 |
75.827 |
|
|
Other Current Liabilities |
14.764
|
34.359 |
33.998 |
|
|
Provisions |
12.421
|
5.472 |
5.432 |
|
Total
Current Liabilities |
91.952
|
95.648 |
115.257 |
|
|
Net Current Assets |
621.350
|
480.351 |
386.607 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
RIGHT ISSUE |
1.514 |
2.892 |
2.104 |
|
|
|
|
|
|
|
|
TOTAL |
1490.552 |
1359.632 |
1197.450 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2425.819 |
2027.834 |
1752.796 |
|
|
|
Other Income |
1.562 |
1.808 |
15.655 |
|
|
|
TOTAL (A) |
2427.381 |
2029.642 |
1768.451 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Cost |
1833.434 |
1510.332 |
1400.348 |
|
|
|
Manufacturing Expenses |
159.229 |
117.829 |
82.039 |
|
|
|
Employees Remuneration |
75.078 |
55.236 |
32.049 |
|
|
|
Administrative Expenses |
35.066 |
37.014 |
27.319 |
|
|
|
Selling and Distribution Expenses |
88.527 |
96.425 |
82.908 |
|
|
|
TOTAL (B) |
2191.334 |
1816.836 |
1624.663 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
236.047 |
212.806 |
143.788 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
95.910 |
92.464 |
54.542 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
140.137 |
120.342 |
89.246 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
79.210 |
72.864 |
39.693 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
60.927 |
47.478 |
49.553 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
31.111 |
21.951 |
22.803 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
29.816 |
25.527 |
26.750 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
75.803 |
61.802 |
45.484 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
5.000 |
5.000 |
5.000 |
|
|
|
Dividend |
7.795 |
4.677 |
4.643 |
|
|
|
Tax on Dividend |
1.324 |
0.794 |
0.789 |
|
|
BALANCE CARRIED
TO THE B/S |
91.423 |
75.803 |
61.802 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Yarn |
1367.788 |
934.595 |
934.595 |
|
|
TOTAL EARNINGS |
1367.788 |
934.595 |
934.595 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Yarn |
28.075 |
69.599 |
39.971 |
|
|
|
Stores & Spares |
12.492 |
99.268 |
3.046 |
|
|
|
Capital Goods |
1.929 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
42.496 |
168.867 |
43.017 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
3.82 |
3.14 |
8.64 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
31.03.2011 |
31.12.2010 |
30.09.2010 |
30.06.2010 |
|
Type |
5th
Quarter |
4th
Quarter |
3rd
Quarter |
2nd
Quarter |
1st
Quarter |
|
Sales Turnover |
789.850 |
967.280 |
1040.480 |
928.090 |
911.570 |
|
Total Expenditure |
731.950 |
891.170 |
963.510 |
852.350 |
840.620 |
|
PBIDT (Excl
OI) |
57.900 |
76.110 |
76.970 |
75.740 |
70.950 |
|
Other Income |
1.450 |
2.720 |
0.630 |
0.870 |
0.480 |
|
Operating
Profit |
59.350 |
78.830 |
77.600 |
76.610 |
71.420 |
|
Interest |
34.080 |
31.420 |
34.320 |
32.780 |
31.320 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
25.270 |
47.410 |
43.280 |
43.830 |
40.100 |
|
Depreciation |
22.150 |
23.230 |
21.180 |
20.970 |
20.740 |
|
Profit
Before Tax |
3.120 |
24.180 |
22.100 |
22.860 |
19.360 |
|
Tax |
0.650 |
4.780 |
4.860 |
4.300 |
3.700 |
|
Reported PAT |
2.470 |
19.410 |
17.230 |
18.550 |
15.660 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
2.470 |
19.410 |
17.230 |
18.550 |
15.660 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
1.22
|
1.25 |
1.51 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.51
|
2.34 |
2.82 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.85
|
3.34 |
3.78 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.01 |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.55
|
3.50 |
5.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
7.75
|
6.02 |
4.35 |
LOCAL AGENCY FURTHER INFORMATION
EXPORTS
The Company's performance on export front has improved tremendously from
the year 2007-08. The company has shown consistent growth every year and in the
year 2009-10 the total export turnover has grown by 24.66 % from Rs. 1211.600
millions in 2008-09 to Rs. 1510.300 millions in 2009-10. The Company has
attracted new customers of international repute during the year. The Company's
marketing, design and development teams participated in various international
trade fairs to acquaint with the latest market trends and better understanding
of the customers' requirement. The Company has developed a large design studio
for fabric to boost the export sales of value added yarns by introducing new
concepts. It is also making efforts to penetrate the new Customers and new
International markets, including Brazil, Turkey, Egypt, and China etc.
EXPANSION
During the year, the company invested in construction of warehouse at
Village Tambadi near to Dadra plant for storing of Cotton and other raw
materials which is completed and operational. The company has also constructed
staff colony near the warehouse for its staff and workers. The company has
installed 4 Air Texturising Machines to increase production of value added
yarns. Installation of these machines is complete and are operating at full
capacity. The company has also installed 7 fancy twisting machines. These
machines are operational at full capacity. During the financial year 2010-11
the company has planned capital Expenditure of about Rs. 20 crores, on
completion of the Projet turnover & profitability of the Company will
further increase.
MANAGEMENT DISCUSSIONS AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENT (OVERVIEW)
The Indian Textiles Industry has an
overwhelming presence in the economic life of the country. Apart from providing
one of the basic necessities of life, textiles industry also plays a pivotal
role through its contribution to industrial output, employment generation, and
the export earnings of the country. Currently, its contributes about 14% of
industrial production, 4% to the GDP and 17 % to the country's export earnings.
It provides direct employment to over 35 million people. The rapid expansion over
the years has attracted the attention of the foreign firms and the industry is
expected to benefit from foreign direct investment (FDI) of more than USD 7
billion by the year 2015. Thus, the growth and all round development of this
industry has a direct bearing on the improvement of the economy of the nation.
DISCUSSION OF FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL
PERFORMANCE
FINANCIAL HIGHLIGHTS:
> Revenue from operations increased by
19.60 % from Rs. 2029.600 millions. in 2008-09 to Rs. 2427.400 millions. in
year 2009-10.
> Profit before Tax increased by 28.21 %
from Rs. 47.500 millions to Rs.60.900 millions.
> Profit after Tax increased by 21.22% from
Rs. 24.500 millions to Rs.29.700 millions.
> Basic Earning Per share (EPS) increased
from Rs. 3.14 to Rs.3.81.
OUTLOOK
BRANDING INITIATIVE:
Damodar Threads is positioning itself as a
world class supplier for fancy yarns. This tag line of Damodar 'Tomorrow's
Creativity brought today' signifies continuous development the company is
taking to provide its customers unique products which will help them to create
a new trend in the field of textiles. The company is taking part in various
international trade fairs to create brand awareness. The company is also taking
a number of steps for strong internal and domestic branding.
FUTURE PLANS:
The company is planning to upgrade its
infrastructure for better efficiency and higher production to meet the increase
in demand and for lowering of costs to increase profitability. The company is
planning to increase its production in value added yarns by installing
specialized machines. The company is also planning for forward integration by
entering into knitting . Value addition will increase profitability of the
company.
INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY:
Damodar's internal control systems as well as
procedures adequately commensurate with magnitude of its current business. The
operating and business control procedures have been framed in order that they
ensure efficient use of resources and comply with the procedures and regulatory
requirements. The internal control system has been strengthened by
implementation of ERP solution laying out well-documented guidelines, approval
and authorization procedures.
CORPORATE SOCIAL RESPONSIBILITY:
Damodar Threads is deeply committed to improve
the quality of life of the communities that it operates in. Its strong sense of
social responsibility is embedded in the company's values and actions.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30th
SEPTEMBER, 2010
|
Particulars |
Quarter Ended 30.09.2010 (Unaudited) |
Half Year Ended 30.09.2010 (Unaudited) |
|
(a) Net Sales/ Income from
operation |
928.088 |
1839.656 |
|
(b) Other Operating Income |
0.000 |
0.000 |
|
Total Income |
928.088 |
1839.656 |
|
2. Expenditure |
|
|
|
a. Increase(-) /Decrease(+) in Stock in trade and W.I.P. |
57.623 |
29.856 |
|
b. Consumption of Raw-Materials |
674.542 |
1436.561 |
|
d. Employees Cost |
1.116 |
3.613 |
|
e. Depreciation |
24.246 |
41.707 |
|
f. Other Expenditure |
94.813 |
177.847 |
|
g. Total |
873.312 |
1734.678 |
|
3. Profit(+)/ Loss(-) from Operations before other Income Interest and
Exceptional Item(1-2) |
54.776 |
104.978 |
|
4. Other Income-Foreign Exchange Fluctuation-Gain/(Loss) |
0.867 |
1.342 |
|
5. Profit(+)/ Loss(-) before Interest and Exceptional Item |
55.643 |
106.320 |
|
6. Interest |
32.782 |
64.098 |
|
7. Profit(+)/ Loss(-) after Interest but before Exceptional Item (5-6) |
22.861 |
42.222 |
|
8. Exceptional Items |
0.000 |
0.000 |
|
9. Profit(+)/
Loss (-) from ordinary activities
before Tax (7-8) |
22.861 |
42.222 |
|
10. Tax Expenses |
4.300 |
8.000 |
|
11. Net Profit(+)/ Loss (-) from ordinary activities after Tax (9-10) |
18.561 |
34.222 |
|
12. Extraordinary Items |
-- |
--- |
|
13. Net Profit (+)/ Loss(-) for the period (11-12) |
18.561 |
34.222 |
|
14. Paid Up Equity Share Capital (Face Value of Rs.10 Per Share) |
89.007 |
89.007 |
|
15. Reserves excluding Revaluation Reserves as per Balance Sheet of
Previous Accounting Year |
|
|
|
16. Earning per Share (EPS) |
2.09 |
3.84 |
|
17. Public Shareholding |
|
|
|
Number of Shares |
2909640 |
2909640 |
|
% of Share holding |
32.69% |
32.69% |
|
18. Promoters and promoter group Shareholding |
|
|
|
a) Pledged/Encumbered |
|
|
|
- Number of shares |
640800 |
640800 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter
group) |
10.70 |
10.70 |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
7.20 |
7.20 |
|
b) Non-encumbered |
|
|
|
- Number of shares |
5350210 |
5350210 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and
promoter group) |
89.30 |
89.30 |
|
- Percentage of shares (as a
% of the total share capital of the
company) |
60.11 |
60.11 |
NOTE :
·
The above results have been reviewed by the Audit
Committee and have been approved by the Board of Directors in its Meeting held
on 1st November, 2010.
·
The Company has allot 11,05,000 Equity Shares of Rs.
10/- each at a premium of Rs. 45/- per share on preferential basis during the
quarter.
·
The Company has only one business segment that is
textile goods.
·
Deferred tax, if any, will be accounted for at the
year end.
·
Previous year figures have been regrouped/rearranged
wherever necessary.
·
Details of Number of Investor Compalaints for the
quarter ended 30th September, 2010 - (a) beginning –Nil b) received - 1 (c)
dispose off - 1 (d) pending -Nil.
FIXED ASSETS :
·
Freehold Land
·
Residential Flats
·
Building
·
Plant and Machinery
·
Electrical inst.
·
Furniture and Fixtures
·
Vehicles
·
Air Conditioners
·
Generators
·
Weighing scale
·
Other Equipments
·
Computers
AS PER WEBSITE DETAILS :
Company Profile
Subject was incorporated on 11th December 1987 as a private ltd. company
to manufacture synthetic blended yarns. The company was converted into public
limited company on 20th March 1992. Since 1992 the company has expanded its
production capacity and is now one of the largest producers of value added
yarns in India having a group turnover of $ 100 million from 6 manufacturing
facilities.
Since beginning Damodar’s philosophy was to provide a novelty product at an
affordable price. Passion for yarn has made the company a trend setter in the
industry. Damodar has introduced many new products with different blends and
new looks. At Damodar value addition does not end at the spinning stage. The
company has installed post spinning machines like TFO, Fancy Doubling, Hollow
Doubling, Yarn Dyeing, Multi Colour Space Dyeing.
They have a completely integrated and advanced production line for
manufacturing all of the above products. The company has now grown to become
one of the largest commodity and fancy yarn manufacturing company in India.
At Damodar Group Research and Development is the most important and on- going
process. They have a state of the art R and Department wherein their in house
designers introduce a new product by initially making samples on bit looms and
then the approved yarns are tried and tested on modernized looms. These samples
are dyed and finished in their lab on sample dyeing and finishing machines.
Mission
To exceed their customer’s expectations in quality, delivery and cost
through continuous improvement and customer interaction
Vision
Damodar Group will be the global supplier of choice by providing value
added, innovative and economical yarns to fabric manufacturers with customer
service second to none.
In the Domestic Market the major customers of the company include :
- Grasim
Industries Limited
- Arvind Mills
Limited
- Siyaram Silk
Mills Limited
- Reliance
Industries Limited
- Garden Silk
Mills Limited
- Dicitex Decor
Limited
Export
Destinations
Damodar Group is well established in different textile markets across
the globe . With their vast product basket and tailor made services in the yarn
industry which no other yarn manufacturer can provide, they have established
customers in every textile industry from shirting to home furnishing to carpet
industry to knitting. They are currently
exporting to over 40 countries across Europe, South Africa, South America,
Australia, Korea, Belgium, Singapore, Italy, Egypt and the Gulf countries.
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. 46.01 |
|
|
1 |
Rs. 75.42 |
|
Euro |
1 |
Rs. 66.69 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
36 |
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.