MIRA
INFORM REPORT
|
Report Date : |
14.04.2012 |
IDENTIFICATION DETAILS
|
Name : |
NAHAR SPINNING MILLS LIMITED |
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Registered Office : |
373 Industrial Area, Phase A, Ludhiana-141003, |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
16.12.1980 |
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Com. Reg. No.: |
16-004341 |
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Capital Investment / Paid-up Capital : |
Rs.180.531 Millions |
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CIN No.: [Company
Identification No.] |
L17115PB1980PLC004341 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
JLDN00362F / JLDN00361E / JLDN00757B |
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PAN No.: [Permanent
Account No.] |
AAACN5710D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
Stock Exchange. |
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Line of Business : |
Manufacturer Cotton / Synthetic and Blended Yarns. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (62) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 27000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and a reputed company having fine track
records. Financial position of the company appears to be sound. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered Office : |
373 Industrial Area, Phase A, Ludhiana – 141003, Punjab, India |
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Tel. No.: |
91-161-2600701-05 / 2606977-80/ 2660945/ 2661181/ 2661180 |
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Fax No.: |
91-161-2222942 / 2601956 / 601956 |
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E-Mail : |
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Website : |
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Corporate Office/ Factory 1: |
Nahar Tower, Industrial Area-A, Ludhiana – 141003, Punjab, India |
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Tel. No.: |
91-161-2542501-07 |
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Fax No.: |
91-161-2542509 |
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E-Mail : |
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Factory 2 : |
427, Industrial Area–‘A’, Ludhiana, (Punjab) , India |
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Factory 3 : |
Dhandari Kalan, G.T. Road, Sherpur, Ludhiana-141010 (Punjab) Village, India |
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Factory 4 : |
Village Simrai, Mandideep, District Raisen, Madhya Pradesh,
India |
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Factory 5 : |
Jalalpur, District S.A.S. Nagar, (Punjab) , India |
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Factory 6 : |
Village Lalru and Lehli, District S.A.S. nagar, Punjab , India |
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Factory 7 : |
Rishab Spining Mills, Village Jodhan, District, Ludhiana, Punjab, India |
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Factory 8 : |
Nihar Fibres, Jitwal Kalan Malekotla, District Snagrur, India |
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Branch 1 : |
414, Raheja Chambers, 213, Nariman Point, Mumbai-400021, |
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Tel. No.: |
91-22-22835262 / 22835362 |
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Fax No.: |
91-22-22872863 |
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Branch 2 : |
22-B, Sector-18, Gurgaon-120015 |
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Tel. No.: |
91-124-2430532 / 2430533 |
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Fax No.: |
91-124-2430536 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Jawahar Lal Oswal |
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Designation : |
Chairman |
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Name : |
Mr. Dinesh Oswal |
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Designation : |
Managing Director |
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Name : |
Mr. Kamal Oswal |
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Designation : |
Director |
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Name : |
Mr. Dinesh Gogna |
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Designation : |
Director |
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Name : |
Mr. Satish Kumar Sharma |
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Designation : |
Director |
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Name : |
Dr. H.K. Bal |
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Designation : |
Director |
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Name : |
Dr. Om Prakash Sahni |
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Designation : |
Director |
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Name : |
Dr. Suresh Kumar Singla |
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Designation : |
Director |
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Name : |
Dr. Amrik Singh Sohi |
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Designation : |
Additional Director |
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Name : |
Dr. Yash Paul Sachdeva |
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Designation : |
Additional Director |
KEY EXECUTIVES
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Name : |
Mr. Anil Kumar Garg |
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Designation : |
Finance Controllers |
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Name : |
Mr. P.K. Vashishth |
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Designation : |
Finance Controllers |
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Name : |
Mr. Brij Sharma |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of
Shareholder |
Total No. of
Shares |
Percentage of
Holding |
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(A) Shareholding of
Promoter and Promoter Group |
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|
87591 |
0.24 |
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|
23000922 |
63.78 |
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|
23088513 |
64.02 |
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Total shareholding
of Promoter and Promoter Group (A) |
23088513 |
64.02 |
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(B) Public
Shareholding |
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|
|
|
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|
590328 |
1.64 |
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|
3850 |
0.01 |
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|
83727 |
0.23 |
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|
677905 |
1.88 |
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|
1479978 |
4.10 |
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|
9345606 |
25.91 |
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1373902 |
3.81 |
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|
99399 |
0.28 |
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|
97929 |
0.27 |
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904 |
- |
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|
366 |
- |
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|
200 |
- |
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12298885 |
34.10 |
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Total Public
shareholding (B) |
12976790 |
35.98 |
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Total (A)+(B) |
36065303 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
(1) Promoter and promoter Group |
- |
- |
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(2) Public |
- |
- |
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Sub Total |
- |
- |
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Total (A)+(B)+(C) |
36,065,303 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturer Cotton
/ Synthetic and Blended Yarns. |
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Products : |
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PRODUCTION STATUS
AS ON 31.03.2011
|
Particulars |
Unit |
Licensed Capacity |
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Textile and Hosiery Garments |
Pcs |
14000000 |
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Spindles / Roters |
N.A |
-- |
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Particulars |
Unit |
Installed Capacity |
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Textile and Hosiery Garments |
Not Feasible |
-- |
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Cotton/Synthetic Yarn |
Spindles Roters |
383296 1080 |
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Gas-mercer sing |
M. T. |
2040 |
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Dyeing and processing-Lalru unit |
Not Feasible |
-- |
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Particulars |
Unit |
Actual Productions |
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Textile and Hosiery Garments |
Pcs |
7788371 |
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Cotton/Synthetic Yarn |
Kgs. |
60235337 |
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Gas-mercer sing |
Kgs. |
1976407 |
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Dyeing and processing yarn/Fabric-Lalru Unit |
Kgs. |
121588 |
GENERAL INFORMATION
|
No. of Employees
: |
Not Available |
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Bankers : |
·
Punjab National Bank ·
State Bank of India |
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Facilities : |
NOTE: * Term
Loans Due for repayment within one year Rs.628.258 Millions (Previous Year Rs.678.887 Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Gupta Vigg and Company Chartered Accountants |
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Address : |
101, Kismat Complex, |
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Associates : |
·
Nahar Capital and Financial Services Limited ·
Nahar Poly Films Limited ·
Nahar Industrial Enterprises Limited ·
Oswal Woollen Mills Limited ·
Vanaik Spinning Mills Limited ·
Abhilash Growth Fund Private Limited ·
Atam Vallabh Financers Limited ·
Bermuda Insurance Brokers Private Limited ·
Kovalam Investment and Trading Company Limited ·
Ludhiana Holdings Limited ·
Monica Growth Fund Private Limited ·
Nagdevi Trading and Investment Company Limited ·
Nahar Growth Fund Private Limited ·
Ogden Trading and Investment Company Private Limited ·
Ruchika Growth Fund Private Limited ·
Sankeshwar Holding Company Limited ·
Vanaik Investors Limited ·
Verdhman
Investment Limited ·
J.L. Growth Fund Limited ·
Jawahar Lal and Sons ·
Crown Star Limited ·
Monte Carlo Retail (India) Limited |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Share |
Rs.5/- Each |
Rs. 300.000 millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
36065303 |
Equity Share |
Rs.5/- Each |
Rs. 180.326
millions |
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Add: |
Share Forfeited Account |
|
Rs. 0.204 millions |
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|
|
|
|
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Total |
|
Rs. 180.530 millions |
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 |
180.531 |
180.531 |
180.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
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3] Reserves & Surplus |
6479.135 |
5365.697 |
4893.900 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
6659.666 |
5546.228 |
5074.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
13354.965 |
8459.875 |
6344.900 |
|
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2] Unsecured Loans |
0.000 |
99.280 |
62.700 |
|
|
TOTAL BORROWING |
13354.965 |
8559.155 |
6407.600 |
|
|
DEFERRED TAX LIABILITIES |
568.000 |
555.750 |
577.100 |
|
|
|
|
|
|
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TOTAL |
20582.631 |
14661.133 |
12059.100 |
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|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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FIXED ASSETS [Net Block] |
7514.128 |
6472.430 |
6487.500 |
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Capital work-in-progress |
864.979 |
411.750 |
239.000 |
|
|
|
|
|
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INVESTMENT |
140.868 |
109.451 |
170.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
123.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
8052.649
|
4884.736
|
2016.500
|
|
|
Sundry Debtors |
3722.969
|
2454.148
|
2371.600
|
|
|
Cash & Bank Balances |
111.152
|
182.633
|
93.600
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
2068.788
|
1340.162
|
1143.500
|
|
Total
Current Assets |
13955.558
|
8861.679 |
5625.200
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
561.280
|
169.494
|
|
|
|
Other Current Liabilities |
695.290
|
793.100
|
|
|
|
Provisions |
636.332
|
231.583
|
25.100
|
|
Total
Current Liabilities |
1892.902
|
1194.177 |
585.800
|
|
|
Net Current Assets |
12062.656
|
7667.502 |
5039.400
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
20582.631 |
14661.133 |
12059.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
13915.245 |
11104.695 |
9620.300 |
|
|
|
Other Income |
146.907 |
103.539 |
450.700 |
|
|
|
TOTAL (A) |
14062.152 |
11208.234 |
10071.000 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material |
6883.798 |
5461.569 |
|
|
|
|
Manufacturing Expenses |
2159.653 |
2096.488 |
|
|
|
|
Personnel Expense |
855.705 |
777.642 |
|
|
|
|
Administrative Expenses |
185.907 |
115.661 |
|
|
|
|
Selling Expenses |
806.186 |
713.233 |
|
|
|
|
Other Expenses |
65.304 |
88.582 |
|
|
|
|
Difference of Excise Duty On Stocks
|
0.541 |
0.000 |
|
|
|
|
Hedging Loss Settled During the Year |
105.846 |
0.000 |
|
|
|
|
TOTAL (B) |
11062.940 |
9253.175 |
9146.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2999.212 |
1955.059 |
924.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
522.104 |
450.397 |
413.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2477.108 |
1504.662 |
510.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
697.794 |
698.611 |
761.100 |
|
|
|
|
|
|
|
|
|
|
PROFIT /
(LOSS) BEFORE TAX (E-F)
(G) |
1779.314 |
806.051 |
(250.800) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
582.044 |
271.129 |
(73.500) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
1197.270 |
534.922 |
(177.300) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Disputed Liability Reserve |
107.290 |
0.000 |
|
|
|
|
Proposed Divided |
72.131 |
54.098 |
|
|
|
|
Tax on Divided |
11.701 |
8.985 |
NA |
|
|
|
Foreign Exchange Contingent Disputed
Liability Reserve |
0.000 |
14.927 |
|
|
|
|
General Reserve |
1220.728 |
456.912 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
9508.868 |
7082.707 |
NA |
|
|
|
Discount/Rent/Interest Received/Others |
5.395 |
3.096 |
NA |
|
|
|
Carbon Credit |
0.304 |
13.259 |
NA |
|
|
TOTAL EARNINGS |
9514.567 |
7099.062 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
32.141 |
64.415 |
NA |
|
|
|
Stores & Spares |
108.273 |
72.551 |
|
|
|
|
Capital Goods |
508.940 |
132.312 |
|
|
|
TOTAL IMPORTS |
649.354 |
269.278 |
NA |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
33.20 |
14.83 |
-- |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3874.410 |
4084.550 |
4317.690 |
|
Total Expenditure |
4701.450 |
3876.5600 |
4054.800 |
|
PBIDT (Excl OI) |
(827.040) |
207.990 |
262.890 |
|
Other Income |
0.000 |
4.450 |
1.840 |
|
Operating Profit |
(827.040) |
212.440 |
264.730 |
|
Interest |
308.090 |
261.660 |
254.880 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(1135.130) |
(49.220) |
9.850 |
|
Depreciation |
200.660 |
205.580 |
223.310 |
|
Profit Before Tax |
(1335.780) |
(254.800) |
(213.460) |
|
Tax |
(435.290) |
(82.500) |
(67.500) |
|
Provisions and
contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(900.490) |
(172.300) |
(145.960) |
|
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 |
(900.490) |
(172.300) |
(145.960) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
8.51 |
4.77 |
(1.76) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.79 |
7.26 |
(2.61) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.29 |
5.26 |
(2.07) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27 |
0.15 |
(4.94) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.29 |
1.76 |
1.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
7.37 |
7.42 |
9.60 |
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
|
|
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
|
Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
No |
|
No. of Employees |
No |
|
Name of Person Contacted |
No |
|
Designation of Contact person |
No |
|
Turnover of Firm for last three years |
Yes |
|
Profitability for last three years |
Yes |
|
Reasons for variation <> 20% |
----- |
|
Estimation for coming financial year |
No |
|
Capital in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
----- |
|
Litigations that the firm/ Promoters Involved in |
----- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
----- |
|
Buyer visit details |
----- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
PERFORMANCE
REVIEW:
Company`s activities can be classified under two segments namely "Yarn Segment" and "Garment
Segment". The working performance of each Segment which is as under:-
YARN SEGMENT:
During the year, company has installed
37200 spindles and 360 rotors and
thus company`s spindlage
capacity stand increased to 383296 spindles and 1080 rotors. The company`s
expansion plans of balance
spindles is being implemented as
per schedule and is
likely to be completed by December, 2011. On its completion, company`s spindlage capacity will increase to 4.36 lacs
spindles and 1080 Rotors.
Yarn Segment performed
exceedingly well during the year under review.
The recovery in the U.S., Europe
and Asian economies coupled with higher export
realization enabled the Segment
to achieve a revenue of Rs.12752.800
Millions showing an
increase of 29.03% over the previous
year. The financial performance too,
improved significantly and it
earned a
profit before interest and tax of
Rs.2217.400 Millions as against Rs. 958.800 Millions showing an impressive
increase of 131.27% over the previous year.
The segment could have further improved its performance had the Government
not imposed a cap on the export of cotton yarn to 720 Millions Kg. on 30th
November, 2010, for
the financial year ending 31st
March, 2011. Thus the
Government put the Cotton Yarn export under license category` and because of
restrictions company could not export anything from 15th Jan., 2011 to mid March, with the result the stocks of
finished goods got piled up in the
Mills.
Though the Indian Government lifted the restrictions and
put the
Cotton Yarn under `Free
list` category w.e.f. 1st April, 2011
but the export orders
needs to be
registered with the
Directorate General. This
is hampering the free export of Cotton Yarn. Besides lowering of demand
in the International markets has further added to the problems of the
spinning industry which in turn
will affect the segment performance in the
current year significantly.
GARMENT SEGMENT:
During the year,
the segment went
through a tough
phase due to unprecedented price hike and volatility
in the raw material prices. Inspite
of the above, segment improved
its performance and achieved a
revenue of Rs.2104.700
Millions showing an impressive
increase of 10.08% over previous year. However
the higher cotton prices, stiff competition in the global markets
and ever increasing labor and power cost affected the realization
and thus the company could earn
only Rs.146.400 Millions as against Rs.224.300 Millions in the previous year.
The Union Budget 2011-2012 levied 10% Excise duty on all branded clothing
which inturn may affect the performance of the garment industry
in the coming periods.
OVERALL
PERFORMANCE:
To begin with, company`s
performance has been excellent in the first
nine months as is evident from the excellent results
achieved by the company during the
said period. The company achieved an operating income
of Rs.10437.400 Millions with a
net profit of Rs.1054.000 Millions.
However the Government changed its view to monitor the workings of
textile industry and for that reason, as has been witnessed in the past, this
year too, certain measures were taken to
have the balance in trade of the textile industry in India. Out of these
measures, one particular measure i.e. imposition of cap on export,
resulted a severe blow to the
Industry having a
long term ramifications. Because
of export restrictions, company could not export its products from 15th Jan.,
2011 to mid March, 2011 which severely
affected its performance in the
last quarter of the year under
reference. However looking at
yearly performance, they would like to inform you that company put up a
splendid performance during the year under
review. The company achieved an
operating income of Rs.13915.200 Millions (net) showing an increase of 25.31%
over the previous year. Likewise the exports at Rs.9750.900 Millions has also
shown an impressive increase of Rs.33.36% over the previous year. On
profitability front, company substantially improved its performance and earned
a pre-tax profit of Rs.1779.300 Millions showing an impressive increase of 120.28%. After providing for Income tax and
deferred tax, the company earned a net profit of Rs.1197.200 Millions showing
an impressive increase of 123.82% over
the previous year. After appropriation
of profits as per
detail herein above, an amount of Rs.1220.700 Millions has been
transferred to General Reserve thereby increasing Company`s Reserves
to Rs.6479.100 Millions as on 31st March, 2011.
Though the performance of the
textile industry was excellent
during the last year but things are not moving in
the right direction in the current year. The consequential
effects of negative threats of
yester year are still continuing and its effects has
already been witnessed in the financial results of the first quarter of
the current year. The company suffered a heavy loss of Rs.1335.700 Millions
because of the sudden crash
in the prices of raw cotton from Rs.63,000/- per
candy in September, 2010
to Rs.34,000/-per candy in June,
2011 because of
pure speculative activity in cotton at the commodity markets. The cotton
being a seasonable crop is purchased by the spinning mills for its requirement
in the cotton season. The company purchased the cotton
at the
high prices during the season and
is currently stuck with the high cost cotton. Besides sharp decline
in the yarn prices coupled with lack of demand in
US and European countries has put additional pressure on the
inventory intensive industry. In case things
do not move for betterment the performance of the textile industry will be
adversely affected in the coming periods.
The Management is
putting whole heartedly all
its efforts in
cost reduction, quality management, better product mix etc. so as to
improve the efficiencies which in turn will help the company in meeting
the challenges ahead. Besides the
Management also expect that the Government through its policies
will take some initiatives in the form of
some relief packages so that the
industry could survive in this challenging period.
MANAGEMENT DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS:
The Indian
Textile sector is
characterized by mainly
small scale, nonintegrated spinning, weaving, cloth finishing and
apparel enterprises, many of
which uses outdated technology. These firms are in
un-organized sector where
Government regulations regarding labor and taxation are less stringent. On the other hand there are some large firms/Corporates which operates in the
organized sector but they have to
comply with numerous government labor and tax regulations. This unique
structure of the Indian Textile Industry is due to the legacy of tax, labor
and other regulatory policies that have favored small
scale, labor-intensive enterprises,
while discriminating against large scale, more capital intensive
operations. The Textile Industry is one
of the oldest Industry and has formidable presence in the national economy in as much as it
contributes to about 14 per cent of
manufacturing value-addition, accounts for around one-third of their gross
export earnings and provides gainful
employment to millions of people. It
occupies a unique place in their economy
as it contributes to nearly 27% of
their total export
and is the second largest
employment generator after agriculture. The Textile Industry is
providing one of the most basic needs of people and thus its sustained growth
is necessity for improving quality of
life of people and also the economy of the country.
On
global front, the Indian Textile Industry is the second largest producer of
Textile and Garment after China. It is also the world`s largest producer
of cotton and the second largest cotton
consumer after China. To make the
industry globally competitive, the Central Government initiated
several Policy reforms which
enabled the Industry to modernize
and expand its capacities and also improve its technical efficiencies.
In tune with the Government Policies of reimbursing 5% interest
subsidy for modernization and expansion of textile
Industry, the Union Budget for 2011-2012
provided an allocation of 2980 Crores for the Technology
Upgradation Fund Scheme (TUFS). In
line with the Global trends and to
remain competitive, the company went in for expansion of its
capacities both in Yarns as well as in Garments.
The company`s
expansion plans of 90,000 spindles is
progressing as per schedule
and the company has already installed 56640 spindles 360
Rotors till 30th July,
2011 and the balance are likely
to be completed
by December, 2011. After
expansion the company`s spindlage capacity
will increase to 4.36 lacs spindles and 1080 rotors. The company
has positioned itself as one of the
leading integrated textile player to reap the benefits of economies of scale
and become globally competitive in terms of cost and quality.
Opportunities and Threats
The National Textile
Policy 2000 alongwith Regulatory
Policies of the Central Government helped the industry to modernize
and expand its capacities to
become a Global player.
The Industry efforts coupled
with the Government policies
has enabled the Industry
to become a sourcing hub for the
reputed International brands. Presently big international brands such as Wallmart, JC
Penny, Gap, Marks and spencers and others are sourcing more and
more textile products from India.
Besides the Comprehensive
Economic Partnership Agreement
(CEPA) between India and Japan
w.e.f. 1st August, 2011 is likely to
benefit the Indian Textile Industry as the import of textile
products have come under the Zero import duty category. Thus Japan under
the Zero duty regime has become a lucrative market for export of
Yarns as well as Garments.
Inspite
of the above, the Indian Textile Industry is in a cross roads. One road
could lead to the prosperity and the other to the opposite, based on the
decision it opt
for. On positive front, the industry
is gaining competitive edge
over its arch rival China for
several internal and external
factors. The size of the industry is growing rapidly to meet the requirements of large International buyers who are
gaining confidence on made
in India products. The domestic demand for textile products is
also getting stronger with the
increased purchasing power of the people,
which definitely angurs well for
the industry. Besides, the political/economic situation in
their neighboring country is proving to be
a blessing in disguise,
as many International buyers have moved to Indian markets.
The changed equation in global trade is working in favor of
Indian Textile industry and rigorous efforts must be made to raise
India`s share in the global
textile trade. Though
it appears from the above
that textile industry made
excellent progress but when compared with China, the progress achieved by the
industry seems to be negligible. Even small countries like Vietnam,
Bangladesh, Pakistan, Srilanka, Egypt, Turkey and
others are posing serious
challenges to the Industry and are ready to fill the demands as they have
demonstrated in the past.
To sum
up, the Industry needs to take measures steps and strategize
for future sustainability and growth considering the advantages and
challenges. It is apparent that the
opportunities are heavier than the challenges
and the industry must make most of it.
FUTURE OUTLOOK:
Though
the Textile Industry performance has been excellent during the last year but things are not moving in the
right direction in the current year.
The consequential effects of negative threats of yester year
are still continuing and
its effects has already been witnessed
in the current financial results
of most of the spinning
mills. The textile
industry suffered heavy losses because of the sudden crash in
the prices of raw
cotton from Rs.63,000/- per candy in September, 2010
to Rs.34,000/- per candy
in June, 2011 because of pure speculative activity in cotton at the commodity
markets. The cotton being a seasonable crop is purchased by the spinning
mills for its requirement in the cotton season. Most of the mills had
purchased the cotton at the high prices and are currently stuck
with the high cost cotton. Besides sharp decline in the yarn prices
coupled with lack of demand in US and European countries has put additional
pressure on the inventory intensive
industry. The textile industry has been struck with heavy piling of finished goods stock at mills
level. The decline in yarn export
has raised serious concerns among
the Industry stake holders and calls
for some serious introspection by
the Government. The
Government through its prudent
policies should take bold initiatives and
announce a relief package
immediately to save the Industry. otherwise large number of units shall become non performing leading to
their closure.
A. CONTINGENT LIABILITIES NOT
PROVIDED FOR:
1. Estimated amount of
Contracts remaining to be executed on capital account, net of advances Rs.
1603.473 Millions (Previous Yr. Rs725.819 Millions)
2. Bank guarantees outstanding
Rs.166.589 Millions ( Previous Yr. 166.589 Millions )
3. The Company has executed
legal agreement/bonds for the sum of Rs.466.332 Millions (Previous Year Rs.
351.432 Millions) with the Central Government, undertaking to export Hosiery
Knitwear, yarn and other goods of F.O.B. value of Rs.6032.636 Millions
(Previous Year Rs. 669.988 Millions) against the issuance by the Government of
Advance Licenses/E.P.C.G. Licenses with Duty Exemption entitlement
Certificates/Pass books for the Import of Raw Materials, Machinery and
Components etc. for the aggregate C.I.F./duty saved value of Rs.6685.43Lacs
Previous Year Rs. 553.741 Millions)
4. The Company has bound
itself unto the President of India for Rs.13.800 Millions (Previous Year
Rs.13.800 Millions) under Central Excise Act, 1944 for clearance of goods
without payment of excise duty, in respect of export of various types of yarn
and for storage of various commodities manufactured within factory premises.
5. Letter of Credits
outstanding in favour of Suppliers Rs. 1.753 Millions (Previous Year Rs.2.291
Millions)
6. Excise/Sales Tax/ Other
Government Authorities have raised demands of Rs.15.335 Millions (Previous Year
Rs.5.243 Millions) out of which a sum of Rs. 1.849 Millions (Previous Year Rs.
1.392 Millions) has been deposited as security deposit, the same are being
contested in appeal and no provision has been made
7. Foreign exchange hedging
contracts which were under dispute with ICICI Bank Limited have been settled
during the year. Accordingly hedging loss of Rs. 105.846 Millions have been
paid during the year. As reserve created to meet out such liability is no more
required, hence the same has been written back.
8. Electricity demand raised
by Madhya Pradesh Electricity board
There is an electricity demand
of Rs 304.190 Millions (Previous year Rs.267.313 Millions) raised by MPMK W Co
Limited in spite of surrender of electricity connection by the company and the
same was being contested in the Hon'ble High court of Jabalpur. Against this
company has deposited Rs. 56.192 Millions with the MPMK W Company Limited, and
has also furnished a bank guarantee for Rs. 166.254 Millions.
The matter was decided by the
Hon'ble High Court, Jabalpur vide order dated 16th December 2009 . The order is
as follow:
i) "As a consequence the
company is granted permission to set up captive power plant of 4.1 MW capacity
in its Unit No. 1 and 2"
ii) "As a further
consequence, they direct the Board to redetermine the tariff/minimum charges on
the basis of reduced contract demand of 1000 KVA in case of Unit No. 1 and 0
KVA in case of Unit No.2 w.e.f. 01/08/1999 and raise bills, If any, with a further
direction that in case if the company found to be owing certain arrears to the
Board pursuant to redetermination as directed hereinabove, the same be adjusted
from SD of Rs. 11.085 Millions "
iii) " They further
direct the Board to issue correct electricity bills of the period after
01.08.1999 on the basis of reduced contract demand as aforesaid and settle the
accounts with the Company keeping in view the aforesaid directions within 6
months"
The above order has been
contested by MPMKW Company Limited by way of SLP in the Hon'ble Supreme Court
and the following interim order has been passed by Hon'ble Supreme Court on
dated 29.03.2010
"responded No. 1 (M/s
Nahar Spinning Mills Limited) restrained from taking steps for recovering
amount of Rs. 56.192 Millions or from return the Bank Guarantee given for Rs.
166.254 Millions There will be a further direction upon the respondent No.1 to
keep the Bank Guarantee renewed during the pendency of the matter in this
court."
"The matter is pending
for final decision with the Hon'ble Supreme Court." No provision for the
same has been made.
9. The Company has given the
following Guarantees in respect of loans granted by the banks
(a) Rs.250.000 Millions
(previous year Rs. Nil) to Oriental Bank of Commerce and Rs. 150.000 Millions
(previous year Nil) to Bank of Maharashtra in respect of financial assistance
granted by the said banks to M/s. Nahar Poly Films Limited, Ludhiana.
UNAUDITED FINANCIAL
RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31ST DECEMBER, 2011
(RS. IN MILLIONS)
|
SR. NO. |
PARTICULARS |
QUARTER ENDED |
9 MONTHS ENDED |
|
|
|
|
31.12.2011 (Unaudited) |
30.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
|
|
|
|
|
|
1 |
Net Sales / Income From Operations |
4297.557 |
4074.708 |
12226.569 |
|
|
Other Operating Income |
20.129 |
9.845 |
50.086 |
|
|
Total Income |
4317.686 |
4084.553 |
12276.655 |
|
|
|
|
|
|
|
2 |
Expenditure |
|
|
|
|
|
a) Increase)/Decrease in Stock in Trade and WIP |
436.617 |
293.465 |
311.520 |
|
|
b) Consumption of Raw Materials |
2368.876 |
2315.333 |
8804.090 |
|
|
c) Purchase of Traded Goods |
23.984 |
4.539 |
31.783 |
|
|
d) Power and Fuel |
495.451 |
445.677 |
1333.241 |
|
|
e) Employees Cost |
249.515 |
240.728 |
718.301 |
|
|
f) Depreciation |
223.305 |
205.577 |
629.543 |
|
|
g) Other Expenditure |
480.366 |
576.820 |
1433.888 |
|
|
Total |
4278.114 |
4082.139 |
13262.366 |
|
|
|
|
|
|
|
3 |
Profit from operations before Other Income, Interest and Exceptional
Items (1-2) |
39.572 |
2.414 |
(985.711) |
|
4 |
Other Income |
1.840 |
4.450 |
6.290 |
|
5 |
Profit before Interest and Exceptional Items (3+4) |
41.412 |
6.864 |
(979.421) |
|
6 |
Interest |
254.876 |
261.664 |
824.626 |
|
7 |
Profit after Interest but before Exceptional Items (5-6) |
(213.464) |
(254.800) |
(1804.047) |
|
8 |
Exceptional Items |
0.000 |
0.00 |
0.000 |
|
9 |
Profit from Ordinary Activities Before Tax (7-8) |
(213.464) |
(254.800) |
(1804.047) |
|
10 |
Tax Expenses (including deferred and FBT etc.) |
(67.500) |
(82.500) |
(585.2930 |
|
11 |
Net Profit / Loss from Ordinary Activities After Tax (9-10) |
(145.964) |
(172.300) |
(1218.754) |
|
12 |
Extraordinary Items (Net of tax expenses) |
-- |
-- |
-- |
|
13 |
Net Profit / Loss for the period (11-12) |
(145.964) |
(172.300) |
(1218.754) |
|
14 |
Paid up Equity Share Capital |
180.327 |
180.327 |
180.327 |
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting year |
|
|
|
|
16 |
Earnings Per Share (Rs.) Basic/ Diluted |
(4.05) |
(4.78) |
(33.79) |
|
|
|
|
|
|
|
|
Face value/ paid up |
Rs.5/- |
Rs.5/- |
Rs.5/- |
|
|
|
|
|
|
|
17 |
Public
Shareholding |
|
|
|
|
|
-Number of shares |
12976790 |
12976790 |
12976790 |
|
|
-% of shareholding |
35.98 |
35.98 |
35.98 |
|
|
|
|
|
|
|
18 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered -Number of shares |
Nil |
Nil |
Nil |
|
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
N.A. |
N.A. |
N.A. |
|
|
-Percentage of shares (as a % of the total share capital of the
company) |
N.A. |
N.A. |
N.A. |
|
|
|
|
|
|
|
|
b)
Non-encumbered -Number of shares |
23088513 |
23088513 |
23088513 |
|
|
-Percentage of shares (as a % of the shareholding of promoter and
promoter group) |
100.00 |
100.00 |
100.00 |
|
|
-Percentage of shares (as a % of the total share capital of the
company) |
64.02 |
64.02 |
64.02 |
NOTES:
1.
The previous year figures
have been regrouped / recast to make them comparable.
2.
Provision for taxation
and deferred tax has been provided proportionately to the estimated fully year
tax liability.
3.
There were no investors
complaint as 01.10.2011. During the Quarter, Company received 10
letter/complaints which have been replied/resolved. None of the complaint is
pending at the end of the quarter.
4.
The above results were
reviewed by the statutory Auditors, Audit committee and were thereafter taken
on record by the board at is meeting held on 14.02.2012
SEGMENT WISE
REVENUE RESULTS AND CAPITAL EMPLOYED (PROVISIONAL) FOR THE QUARTER ENDED 31ST DECEMBER, 2011
(RS. IN MILLIONS)
|
SR. NO. |
PARTICULARS |
QUARTER ENDED |
9 MONTHS ENDED |
|
|
|
|
31.12.2011 (Unaudited) |
30.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
1 |
Segment Revenue |
|
|
|
|
|
a) Yarn |
3908.699 |
3743.096 |
11361.277 |
|
|
b) Garments |
569.399 |
520.218 |
1460.702 |
|
|
Total |
4478.098 |
4263.314 |
12821.979 |
|
|
Less : Inter segment revenue |
180.541 |
188.606 |
595.410 |
|
|
Net Sales/Income
from Operations |
4297.557 |
4074.708 |
12226.569 |
|
2 |
Segment Results (Before Tax and Interest from each segment) |
|
|
|
|
|
a) Yarn |
(30.554) |
(43.672) |
(1123.327) |
|
|
b) Garments |
63.473 |
46.510 |
125.330 |
|
|
Total |
32.919 |
2.838 |
(997.997 |
|
|
Less : |
|
|
|
|
|
a) Foreign Exchange Hedging Loss |
0.000 |
0.000 |
0.000 |
|
|
b) Interest |
254.876 |
261.664 |
824.626 |
|
|
c) Other Unallocable expenditure net off Unallocable income |
(8.493) |
(4.026) |
(18.576) |
|
|
Total Profit Before
Tax |
(213.464) |
(254.800) |
(1804.047) |
|
3 |
Capital Employed (Segment assets / Segment liabilities) |
|
|
|
|
|
a) Yarn |
13343.888 |
13023.556 |
13343.888 |
|
|
b) Garments |
1443.997 |
1420.553 |
1443.997 |
|
|
c) other Unallocable (net) |
(9361.582) |
(8808.822) |
(9361.582) |
FIXED ASSETS:
·
Land and Building
·
Plant and Machinery
·
Furniture and Fixtures
AS PER WEB DETAILS
PROFILE
Spinning a web of pure enchantment
seems to be the aim and objective of Nahar Spinning, reckoned to be the
blue-chip in the NAHAR firmament.
Starting out as a tiny worsted spinning and hosiery unit in
In 1992, as a measure of backward integration, the company diversified into the
Spinning Industry. Today it has an installed spindlage of 335000 spindles.
Simultaneously the company also established an ultra modern facility to
manufacture 12.5 Million pieces of Hosiery Garments. Today Nahar Spinning’s
T-shirts are being exported to reputed international brands such as GAP, Arrow,
Old Navy, Pierre Cardin, Philips Van Heusen, Izod, Quicksilver, Price Costco…
As a measure of further value addition subject has put up a plant for the
manufacture of fine count mercerized yarn and fabrics catering to both, the
domestic hosiery garment market as well as export markets.
To make use of the emerging
opportunities on the Global Textile Scenario and also to have a focused
business approach, the company went in for the Scheme of demerger and
arrangement to restructure its businesses. The Scheme has already been approved
by the Hob’ble
Further as per the scheme “Textiles Business” of Nahar Exports Limited stand
demerged and transferred to the company (post demerger of investment business)
in accordance with the terms of the scheme. Thus upon implementation of the
Scheme the spindlage capacity of the company stand increased to 0.345 millions
spindles.
The Company's mantra "World
is our markets" is truly reflected in its operations. The Company is one
of the largest integrated textile player in India. The Management vision
coupled with company's inherent strength in terms of cost and quality has
enabled the company to become the second largest Cotton Yarn manufacturer in
India.
MILESTONE
Their
Achievements
Installed Capacity of 93408 spindles | ISO-9002 certified | Golden Trading
House
New Expansions
Mercerizing plant - 2040 MT
| Garments – 9.000 millions pieces licensed capacity
1980- Incorporated as a Private Limited Company
1984- Recognized
as an Export House by Govt. of
1985-Raises
funds through maiden Public Issue to finance modernisation and expansion
1988-Recognized as a Trading House by Govt. of
1991-92-Turnover
crosses the Rs.1000 millions mark
1992-Decides to
set up a Spinning Unit with 50400 spindles. Raises capital through a Rights
Issue.
1994-Decides to raise the spindlage by another 25000 spindles
1995-96-Turnover
crosses the Rs.2000 millions mark
1996-Receives ISO-9002 certification
1996-97-Turnover
crosses the Rs.3000 millions mark
1999-Accorded
Golden Trading House Status by Government of
1999-2000-Mercerizing-cum-dyeing
plant and a 100% EOU Spinning Unit with 28224 spindles under implementation
2003-2004-The
Cotton Textile Export Promotion Council awarded Texprocil Silver Trophy to the
company for its outstanding Export performance in yarns
2006-2007-The apparel export promotion
council awarded AEPC achievement award to the company for achieving highest
exports in garment.
2008 Apparel Export promotion council awarded Gold
Trophy for achieving highest Export of Cotton Garments.
2009 The Cotton Textiles Export Promotion Council
(Texprocil) awarded Gold Trophy for highest export of Cotton Yarn (Counts 50s
and below)
2009 Turnover crosses
Rs.10000.000 Millions mark.
2010 Decides to
increase capacity by adding another 90000 spindles.
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.51.42 |
|
|
1 |
Rs.81.93 |
|
Euro |
1 |
Rs.67.67 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
62 |
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.