MIRA
INFORM REPORT
|
Report Date : |
02.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
KALLAM SPINNING MILLS LIMITED (w.e.f. 22.09.1994) |
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|
|
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Formerly Known
As : |
KALLAM AGROS LIMITED |
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Registered
Office : |
N.H.-5, Chowadavaram, |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
18.02.1992 |
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|
|
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Com. Reg. No.: |
01-013860 |
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|
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Capital
Investment / Paid-up Capital : |
Rs.68.511 millions
|
|
|
|
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CIN No.: [Company Identification
No.] |
L18100AP1992PLC013860 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
HYDK01467E HYDK01653B |
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PAN No.: [Permanent Account No.] |
AAACK9363M |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchanges. |
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Line of Business
: |
Manufacturer and Seller of Cotton Yarn. |
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No. of Employees
: |
337 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 1569000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having satisfactory track. Trade relations are reported as
fair. Business is active. Payments are reported to be usually correct and as
per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
|
High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office/ Factory 1 (Spinning
Unit) : |
N.H.-5, Chowadavaram, |
|
Tel. No.: |
91-863-2344010/ 2344017/
2344015/ 2512004/ 2512005/ 2512006 |
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Fax No.: |
91-863-2344000 |
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E-Mail : |
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Website : |
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Factory 2 (Power Plant) : |
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DIRECTORS
As on 31.03.2011
|
Name : |
Mr. K. Haranadha Reddy |
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Designation : |
Chairman |
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|
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|
Name : |
Mr. P. Venkateswara Reddy |
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Designation : |
Managing Director |
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|
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|
Name : |
Mr. G.V. Krishna Reddy |
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Designation : |
Joint Managing Director |
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|
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|
Name : |
Mr. M.V. Subba Reddy |
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Designation : |
Whole Time Director |
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|
Name : |
Mr. M.R. Naik |
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Designation : |
Director |
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Name : |
Mr. V.S.N. Murthy |
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Designation : |
Nominee Director – IREDA |
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Name : |
Mr. A. Krishna Murthy |
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Designation : |
Director |
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Name : |
Mr. S. Pulla Rao |
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Designation : |
Director |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
|
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|
2,621,891 |
38.27 |
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|
868,635 |
12.68 |
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|
3,490,526 |
50.95 |
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|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3,490,526 |
50.95 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
10,000 |
0.15 |
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|
10,000 |
0.15 |
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|
|
|
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|
310,232 |
4.53 |
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|
|
|
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|
1,618,957 |
23.63 |
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|
1,254,769 |
18.31 |
|
|
166,616 |
2.43 |
|
|
165,741 |
2.42 |
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|
875 |
0.01 |
|
|
3,350,574 |
48.91 |
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Total Public shareholding (B) |
3,360,574 |
49.05 |
|
Total (A)+(B) |
6,851,100 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
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|
- |
- |
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Total (A)+(B)+(C) |
6,851,100 |
- |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Seller of Cotton Yarn. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
As
at 31.03.2011 |
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a) Licenced
Capacity : |
|
|
(i) Spindles (Nos.) |
52,000 |
|
(ii) Rotors |
2,496 |
|
(iii) Power |
4MW |
|
(iv) Cotton Raw (Kappas) Ginned and Pressed |
9,000Ton per year |
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|
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b) Installed
Capacity |
|
|
(i) Spindles (Nos.) |
52,000 |
|
(ii) Rotors |
2,080 |
|
(ii) Power |
4 MW |
|
(iv) Cotton Raw (Kappas) Ginned and Pressed |
7,600Ton |
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|
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c) Production : |
|
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(i) Yarn (kgs.) |
45,58,881 |
|
(ii) OE Yarn |
30,21,607 |
|
(ii) Power Generation (KWH) |
91,27,959 |
Notes:
1. Power
Generation includes captive use of 56,59,226 KWH and 1,27,791 KWH surrendered
to APTRANSCO towards
2. The installed capacities are as per certificate given by the managing
Director on which the Auditors have relied.
GENERAL INFORMATION
|
No. of Employees : |
337 (Approximately) |
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Bankers : |
v
Andhra Bank, Main Branch, Kolhapet, v
Indian Bank, Main Branch, Naaz Centre, v
Axis Bank, |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Brahmayya and Company Chartered Accountants |
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Address : |
10-3-21, Sambasivapet, |
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Cost Auditors : |
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|
Name : |
P. Srinivas Cost Accountant |
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Address : |
97/2rt, Vijaya Nagar Colony, Besides Masab Tank, |
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Companies
Controlled by Key Management Personnel/Relatives of Key Management Personnel
: |
v
Kallam Agro Products and Oils Private Limited, v
Kallam Brothers Cottons Private Limited, |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Shares |
Rs.10/- each |
Rs.100.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
6851100 |
Equity Shares |
Rs.10/- each |
Rs.68.511
millions |
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|
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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 |
68.511 |
68.511 |
68.511 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
323.774 |
198.308 |
148.847 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
392.285 |
266.819 |
217.358 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1282.087 |
994.606 |
766.900 |
|
|
2] Unsecured Loans |
21.904 |
22.472 |
24.205 |
|
|
TOTAL BORROWING |
1303.991 |
1017.078 |
791.105 |
|
|
DEFERRED TAX LIABILITIES |
111.975 |
96.689 |
75.805 |
|
|
DEFERRED GOVERNMENT GRANTS |
0.172 |
0.203 |
0.233 |
|
|
|
|
|
|
|
|
TOTAL |
1808.423 |
1380.789 |
1084.501 |
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|
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|
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APPLICATION OF FUNDS |
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|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
1130.744 |
868.870 |
683.407 |
|
|
Capital work-in-progress |
1.969 |
89.086 |
120.225 |
|
|
Advance for capital works |
9.535 |
29.256 |
26.399 |
|
|
|
|
|
|
|
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INVESTMENT |
0.003 |
0.003 |
0.003 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
486.656
|
287.592 |
170.887 |
|
|
Sundry Debtors |
129.529
|
54.955 |
26.241 |
|
|
Cash & Bank Balances |
11.493
|
8.430 |
21.140 |
|
|
Other Current Assets |
0.896
|
0.582 |
0.780 |
|
|
Loans & Advances |
159.178
|
94.189 |
79.660 |
|
Total
Current Assets |
787.752
|
445.748 |
298.708 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
38.818
|
21.013 |
17.014 |
|
|
Other Current Liabilities |
9.590
|
3.569 |
1.512 |
|
|
Provisions |
73.172
|
27.592 |
25.715 |
|
Total
Current Liabilities |
121.580
|
52.174 |
44.241 |
|
|
Net Current Assets |
666.172
|
393.574 |
254.467 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
1808.423 |
1380.789 |
1084.501 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Sales |
1357.660 |
816.367 |
672.358 |
|
|
|
Other Income |
16.853 |
10.311 |
11.304 |
|
|
|
TOTAL (A) |
1374.513 |
826.678 |
683.662 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase / Decrease in Stocks |
(44.275) |
10.271 |
(0.008) |
|
|
|
Raw Materials consumed |
852.852 |
448.609 |
378.606 |
|
|
|
Purchase of Finished goods |
2.765 |
6.810 |
18.675 |
|
|
|
Payments and Benefits to Employees |
28.239 |
17.682 |
13.083 |
|
|
|
Manufacturing, Selling, Administrative and other expenses |
204.793 |
154.497 |
125.193 |
|
|
|
Rates & Taxes |
1.241 |
1.014 |
8.945 |
|
|
|
TOTAL (B) |
1045.615 |
638.883 |
544.494 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
328.898 |
187.795 |
139.168 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST (D) |
70.654 |
60.175 |
53.811 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
258.244 |
127.620 |
85.357 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
56.690 |
48.656 |
40.062 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
201.554 |
78.964 |
45.295 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
61.756 |
18.318 |
10.728 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
139.798 |
60.646 |
34.567 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
192.108 |
145.747 |
118.394 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10.500 |
3.100 |
0.000 |
|
|
|
Proposed Dividends |
12.332 |
9.592 |
6.166 |
|
|
|
Tax on Distributed Profits |
2.000 |
1.593 |
1.048 |
|
|
BALANCE CARRIED
TO THE B/S |
307.074 |
192.108 |
145.747 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Sales (FOB Value ) |
234.558 |
91.977 |
177.048 |
|
|
TOTAL EARNINGS |
234.558 |
91.977 |
177.048 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
5.141 |
1.248 |
0.469 |
|
|
|
Capital Goods |
27.096 |
55.429 |
86.114 |
|
|
|
Raw Materials |
0.000 |
0.000 |
122.102 |
|
|
TOTAL IMPORTS |
32.237 |
56.677 |
208.685 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
20.41 |
8.85 |
5.05 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
390.900 |
320.110 |
357.040 |
|
Total Expenditure |
343.850 |
287.370 |
310.060 |
|
PBIDT (Excl OI) |
47.050 |
32.740 |
46.980 |
|
Other Income |
0.670 |
13.840 |
0.240 |
|
Operating Profit |
47.720 |
46.580 |
47.220 |
|
Interest |
28.950 |
27.020 |
27.570 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
18.770 |
19.560 |
19.650 |
|
Depreciation |
16.330 |
16.850 |
17.560 |
|
Profit Before Tax |
2.440 |
2.710 |
2.090 |
|
Tax |
0.840 |
3.360 |
6.750 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1.600 |
(0.650) |
(4.650) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
1.600 |
(0.650) |
(4.650) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
10.17
|
7.34 |
5.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
14.85
|
9.55 |
6.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.51
|
6.01 |
4.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.51
|
0.30 |
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.63
|
4.01 |
3.84 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.48
|
8.54 |
6.75 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
The Company was incorporated as a Public Limited Company on
18th February 1992 in the name of KALLAM AGROS LIMITED (vide
Certificate of Incorporation No. 01-13860 of 1991-92 issued by the Registrar of
Companies, Andhra Pradesh). The name has
subsequently been changed to KALLAM SPINNING MILLS LIMITED, with effect from 22nd
September, 1994 (vide fresh Certificate of Incorporation issued by the
Registrar of Companies, Andhra Pradesh on 22.09.1994). The company was promoted
by Shri Kallam Haranadha Reddy and associates who have experience in cotton
related business i.e., ginning, pressing, oil extraction etc. The promoters are
indirectly involved in spinning activities, through Chandrashekhara Ginning
Mills, Shri Venkateshwara General Commission Merchants and Shri Venkataramana
Commission Merchants, of their customers by supplying quality cotton to many
leading spinning mills like Super Spinning Mills Limited, Precot Mills Limited
and GTN Textiles Limited in
FINANCIAL RESULTS:
The Sales of the
company for the period increase to Rs.1357.660 millions as compared to
Rs.830.556 millions registering a growth of Rs 63.46 percent on annulizes basis
.The profit before interest and taxes of the company has grown by 95.64 percent
on annulized basis from Rs 272.209 millions in previous year to Rs.139.139
millions in the period.
EXPANSION AND
MODERNISATION:
The company
continues to expand and modernize the facilities as ongoing process. During the
financial year the following expansion cum modernization had taken place in
various divisions.
RING SPINNING
DIVISION
Subject started
its production on 22 March 1995 with 12096 spindles. KSML is an ISO 9001-2000
Certified Company by TUV since 2000. The unit is located on Golden
Quadrilateral NH-5 connecting Chennai and
The premium
quality yarn is exported to number of customers across the world. The company
relies on consistent supply of international standard quality yarn. Having
clear vision, well placed systems, guided by a team of professionals and
steered by an enterprising management, KSML continuous to diversify its
products and extend its customers reach.
Ring Spinning
Yarn: Ne.30s to Ne.80s combed warp / compact.
TFO Yarn: Ne.30/2
to Ne.80/2 combed warp / compact.
Production per
Month: Ring Spinning Yarn, 420 tons.
Maintenance of
Machines:
The company strictly
follows all scheduled activities which are routine and preventive as per its
documented plans in quality manual. On regular basis internal system audits
machine audits are carried out to ensure the effectiveness of the preventive
maintenance. The mill follows machines maintenance as per SITRA recommendation
and as per its own experience. The maintenance activity is given utmost
priority. All the spares are replaced as per machine manufacturer’ suggestion
and are purchased directly from the Machine manufacturers to get right to keep
the mill upto date all times quality parts. The mill replaces capital machines
on regular basis with the latest technology.
Quality Control
Measures:
Raw material
inspection will be carried out on Uster HVI Sepctrum and Uster Afis Pro -2 for
2.5% SL, uniformity, MIC, Strength, Short fiber content % and neps / grm. Bale
management system is followed for consistent superior yarn quality, and for
this, cotton stock required for minimum 5 . 6 months is maintained. Carding and
combing process optimized for NRE of 75% 85% and 65% 70% respectively. RIETER
D35 /D40 draw frames are maintained for a% less than 0.50. In ring frame
breakages are maintained below 5 to 6 breaks per 100 spindle hour. Utmost care
is taken in autoconer for achieving 85% splice strength with defect-free
packages. Apart from in process inspection system mill has adopted very
stringent final inspection procedure before dispatching yarn to its customers.
They maintain
regional quality test center, do extensive testing of cotton yarn for mills in
and around
OPEN END SPINNING
DIVISION:
KSML established
its Open End unit in the year 2009-10 with an initial capacity of 1248 Rotors.
Over its span of last one year capacity further increased to 832 rotors, making
present capacity to 2080 roters. Already LC opened for another 832 Rotors in
the same unit. The total Rotors capacity of Open End Unit will be increased
to2192 by end of this financial year.
KSML have proved
its OE yarn quality in the international market and have continuous demand in
the market. Repeated orders are getting continuously. The premium quality yarn
is exported to number of customers across the world. The company relies on
consistent supply of international standard quality. Having clear vision, well
place systems, guided by a team of professionals and steered by an enterprising
management. KSML continuous to diversity its products and extend its customer
reach.
OE Yarn: Ne10s to
Ne20s
TFO Yarn: Ne OE
20s/2
Production
Capacity: 15000 kg / day.
GINNING DIVISION:
KSML started its
Ginning Division in March 2011 with 24 ginning machines. It has most modernized
Automatic bale pressing unit and auto seed booster compressor to seed storage
tank. This is one of the best and most modern TMC units in entire
HYDRO ELECTRIC
DIVISION
Our company has
three hydro electric plants with 4.0 MW capacity at Nelakondapally Mandalam,
Khammam District of Andhra Pradesh. These plants are on 16th and 17th branch
The first two
projects of 0.8 MW and 1.6 MW were commissioned in January 2002. They have
successfully commissioned the third hydro electric plant of 1.6 MW capacity on
27th March 2011. All the generators produce electricity at 6.6 KV
voltage level. The generated voltage is enhanced to 33 KV by a power
transformer and fed to the state electricity grid. The hydel power generation
solely dependent on the canal water flow. The 0.8 MW hydro electric project is
financed by IREDA,
FINANCE:
The company has taken
further expansion and modernization at a cost of Rs.1471.500 millions out of
which the loan from bank is Rs.1069.200 millions and the balance will be meet
through from internal accuruvals. The expansion and modernization will be done
in Ring spinning and O.E. Plant.
FUTURE OUTLOOK:
The company is
projecting Rs.2000.000 millions Turnover during the current financial Year. The
O.E. and Ginning Unit is expected to add bottom line to the company.
MANAGEMENT
DISCUSSION AND ANALYSIS:
INDUSTRY STRUCTURE
AND DEVELOPMENT:
The core business
of the company is manufacture and sale of cotton yarn. The management
discussion and analysis given below discusses the key issues of the cotton yarn
spinning sector.
Industry structure
Textile industry
has an overwhelming presence in the economic life of the country. Apart from
providing one of the basic necessities of life, the textile industry also plays
a pivotal role through its contribution to industrial output, employment
generation and the export earnings of the country. It contributes about 14% to
the industrial production, 4% to the GDP and 17.00% to the country’s export
earnings.
Industry
performance
The Technology
Upgradation Fund Scheme (TUFS) by Government of India was commissioned in the
year 1999 with a view to facilitate the modernization and upgradation of the
textiles industry by providing credit at reduced rates to the entrepreneurs
both in the organized and the unorganized sector. The Scheme, which has now
been extended up to 31.03.2012, has been fine-tuned to catapult the rapid
investments in the targeted segments of the textile industry. TUFS has helped
in the transition from a quantitatively restricted textiles trade to market
driven global merchandise. The modified technofinancial parameters of the
scheme will infuse capital investment into the textiles sector, and help it
capitalize on the vibrant and expanding global and domestic markets, through
technology upgradation, cost effectiveness, quality production, efficiency and
global competitiveness. It is estimated that this will ensure a growth rate of
16% in the sector.
Company’s
performance
The net sales of
the Company for the year increased to Rs.1380.825 millions as compared to
Rs.830.556 millions in the previous financial year, registering a growth of
66.25 percent. The profit before interest and tax of the company has increased
by 95.64 percent on annulized basis from Rs.139.139 millions in previous year
to Rs.272.207 millions in the current financial year. The net profit for the
year was affected and registered a growth to Rs.139.798 millions from Rs.60.646
millions.
The company’s
Hydel power project generated power of the value of Rs.26.481 millions as
against Rs.26.315 millions in the previous year resulting a marginal increase
of 0.63 percent
Strategies and
Future plans
Keeping in view
the trends in
SEGMENTAL REVIEW
AND ANALSIS:
The company is one
of the leading quality makers of 100% cotton combed yarn. The company depended
mostly on exports for its business. The power generated by its Hydro Power
Plants is used for captive consumption of spinning division.
SPINNING DIVISION:
During the year
the company has operated at 52080 spindles capacity. The new OE Plant and new
Automatic Ginning and Pressing Unit had commenced its operations in during the
financial year.
The Company has
made balanced approach towards export and domestic market. In domestic market
most of the buyers are corporate entities and they in turn export fabric
ornaments. They see that maximum product value is accrued to the Company. The
Company relies on consistent supply of international standard quality yarn. The
Company had clear vision and mission, well placed systems, team comprises with
expertise professionals and strategic management expertise to diversify its
qualitative products.
HYDEL POWER
DIVISION:
Keeping in view
the outstanding performance of the Hydel project for the past five years, the
Company constructed the 3rd power plant at the same place i.e. Nelakondapalli
(V), Khammam (Dist). The plant had commenced its commercial operations during
the present financial year 2010-11.
During the year,
with the plenty of water available in Krishna Basin the Hydel power generation
had increased to from 76,55,800 units to 91,21,959 units. Most of the power
generation was for the captive consumption of the spinning division.
CONTINGENT LIABILITIES NOT PROVIDED FOR
|
Particulars |
31.03.2011 (Rs.
in millions) |
31.03.2010 (Rs.
in millions) |
|
i) Counter
guarantees given to bank in respect of Bank guarantees and letter of credit issued
in favour of various constituents. |
70.568 |
14.202 |
|
ii) Estimated amounts of contracts remaining to be executed on Capital
accounts, and not provided for. |
36.695 |
51.372 |
|
iii) State levies on Electricity |
3.738 |
3.734 |
FIXED ASSETS:
v
Land
v
Factory Buildings
v
Non - Factory Buildings
v
Plant and Machinery
v
Electrical and Electronic Equipments
v
Borewelles and Water Pumps
v
Office and Other Equipment
v
Furniture and Fittings
v
Vehicles
WEBSITE DETAILS:
PROFILE:
Kallam Spinning Mills is one of the producers of spun yarns for
the knitting and weaving industries in the world.
Offering a diverse product line to fulfill demands of customers worldwide, they
have perfected their spinning processes by applying state-of-the-art automated
technology and innovation to every phase of their yarn manufacturing process.
They are recognized worldwide
as the industry leader for spun yarns due to their continued focus on product
quality and their commitment to extraordinary customer service.
Headquartered in
While Kallam is a relatively young company in terms of textile firms,
the management team of Kallam Spinning
has many years of experience in the yarn
manufacturing field. Starting with one open-end spinning
facility in
MANAGEMENT
SRI KALLAM HARANADHA REDDY – CHAIRMAN
Sri Kallam Haranadha Reddy is the founder
and promoter of the KSML and
presently he is acting as Non Executive Chairman
of the Board. He is aged about 74 years, holds a Masters Degree in Arts and
graduate in Lam. He has about 45 years of rich experience in cotton and
spinning business. Further he got good experience in the Ginning, Pressing,
Oil Mills, Chilies and Rice Business etc. He was associated with the
company since its inception.
Sri Kallam Haranadha Reddy is a Director on the Board of Kallam Housing and
Real Estates (Private) Limited. He is not a member of any committee
within the meaning of clause 49 of the listing agreement with the stock
exchanges.
Sri Kallam Haranadha Reddy is also a Philanthropist. He started Kallam Academy of
Educational Society. From the current Financial Year "Kallam Haranatha Reddy Institute of Technology"
started in Chowdavaram. Every Year he gives Education Scholarships to poor
students.
SRI P. VENKATESWARA REDDY - MANAGING DIRECTOR
Mr. P.V. Reddy is the Managing Director of KSML aged 59 years.
Mr. P.V. Reddy, hailing from an agricultural family, is having lot of
dedication, commitment and hand work and a much disciplined personality.
He has over 36 years of experience in Cotton, Ginning, Pressing, Spinning,
Cotton Seed Oil, Chilies, and Rice Business etc.
Mr. P.V. Reddy handles purchase of Raw Cotton and looks after all the Civil
Construction Activity of the company.
SRI G.V. KRISHNA REDDY - JOINT MANAGING DIRECTOR
Mr. G.V.K. Reddy is the Joint Managing Director of KSML and
aged 53 years. He is a graduate in Mechanical Engineering with distinction from
He had extensive tour of
Mr. G.V.K. Reddy takes active part in day to day management, manufacturing,
technical and liaisioning with Financial Institutions, Banks and other Govt.
Departments of the company. He is responsible for Hydro Electric Plant
Operation.
SRI M.V. SUBBA REDDY - WHOLE TIME DIRECTOR
Mr. M.V. Subba Reddy is the Whole Time Director of KSML aged 53 years.
He is associated with the company since 1996 as Purchase In charge (raw
material).
He is post graduate in commerce.
He gained excellent knowledge in procurement of raw material sales of yarn and
waste.
He is also having experience in accounts and looks after day to administration
of Office, Accounts Department, and Purchase of Raw Material for OE Plant.
SRI M.R. NAIK - INDEPENDENT DERICTOR
Mr. M.R. Naik is a Non-Executive Independent Director of KSML.
He is aged about 72 years retired as IAS Officer.
He served the community in various capacities in Central and State Government
Organization and also served as a member in the consumers forums constituted by
the State Government and rendered valuable judgments in favor of consumers on
several complaints came before for hearing.
His knowledge and experience will be of great help to the company complying
with various government and other institutional rules procedures and
regulations.
SRI V.S.N. MURTHY - NOMINEE DIRECTOR OF IREDA
Mr. V.S.N. Murthy is a Nominee Director of IREDA. He is aged about 70 years.
He is post graduate in commerce from
He worked 7 years in M/S Singareni Collieries Limited. He joined in 1970 in APIDC
as a Chief Accountant, and served for 27 years holding different positions in
the Accounts and Finance Division.
He retired in the year 1997 as Chief General Manager (Financial Services). He
is the Chairman of the Audit Committee.
He takes keen interest in analyzing the Balance Sheet, advising the company in
expansion programs.
SRI A. KRISHNA MURTHY - INDEPENDENT DIRECTOR
Mr. A. Krishna Murthy is Non-Executive Independent Director of KSML. He is aged about 69 years.
He is a post graduate in Law. He was selected as a Assistant Labour Officer
through Group II-A, conducted by the Andhra Pradesh Public Service Commission
in 1966.
He has retired as Joint Commissioner of Labour, in Labour, Employment and
Training in 1999 after rendering 33 years of service in various capacities.
He is practicing as Labour Law Consultant and Advocate at
SRI S. PULLA RAO - INDEPENDENT DIRECTOR
Mr. S. Pulla Rao is a
Non-Executive independent Director of KSML. He is aged about 65 years.
He is a Commerce Graduate from
He joined Indian Revenue Service and retired as Joint Commissioner
of Income Tax in June 2005 after rendering about 40 years of Service in various
capacities in Income Tax Department.
He advises the company in tax related matters.
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.51.15 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.68.34 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
50 |
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.