MIRA
INFORM REPORT
|
Report Date : |
22.11.2012 |
IDENTIFICATION DETAILS
|
Name : |
WINSOME YARNS LIMITED |
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Registered
Office : |
SCO 191-192, Sector – 34 A, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
19.07.1990 |
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Com. Reg. No.: |
53-010566 |
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Capital
Investment / Paid-up Capital : |
Rs. 708.233 millions |
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CIN No.: [Company Identification
No.] |
L17115CH1990PLC010566
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
PTLW10031A PTLW10081B |
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PAN No.: [Permanent Account No.] |
AAACW1911H |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufactures and Trader of Textile and Yarn Fabrics. |
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No. of Employees
: |
1463 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 4640000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. In the
current year their appears accumulated losses recorded by the company. And
the external borrowing of the company is more than its net worth. So there is
changes of default. However, trade relation are reported to be fair. Business is active.
Payments are reported to be slow. The company can be considered for business dealing with some caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
D (Term Loan) |
|
Rating Explanation |
This rating are in default as are expected to be indefault soon. |
|
Date |
October, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered/ Corporate Office : |
SCO 191-192, Sector – 34 A, Chandigarh – 160022, India |
|
Tel. No.: |
91-172-4612000 / 4613000 / 4646749 / 5012986 / 5012886 / 5012186 /
5012286 / 5007986 / 2603966 / 2662232 / 2600594 / 2606709 91-172-2612 447 (Direct - Export Deptt.) |
|
Fax No.: |
91-172-4614000 / 2603804 / 5088844 |
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E-Mail : |
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Website : |
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Factory 1: |
Vill Kurawala, |
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Tel. No.: |
91-1762-280236 / 280638 |
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Fax No.: |
91-1762-270237 |
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E-Mail : |
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Factory 2: |
1, Industrial Area, Dist. Solan (H.P.), |
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Tel. No.: |
91-1795-244045 / 244046 |
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Fax No.: |
91-1795-244287 |
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E-Mail : |
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Factory 3: |
B-58, Phase VII, Industrial Area, Mohali-160059, |
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Tel. No.: |
91-172-5053138 / 5053139 / 5095870 / 5095870 / 5092400 / 5092397 |
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Fax No.: |
91-172-5090572 |
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E-Mail : |
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Marketing Office |
12/22, East Patel Nagar, Ground Floor, Main Market, |
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Tel. No.: |
91-11-5725462 |
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Fax No.: |
91-11-5254627 |
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E-Mail : |
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National Marketing : |
Mktg. Office and Godown AHMEDABAD Representative agent MUMBAI Mktg. Office and Godown Consignment Agent (Godown facility ) Consignment Agent ( Godown facility ) TIRUPUR
Mktg. Office and Godown |
DIRECTORS
As on 31.03.2012
|
Name : |
Shri Satish Bagrodia |
|
Designation : |
Chairman |
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Name : |
Shri Brij Mohan Khanna |
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Designation : |
Director |
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Name : |
Shri Chandra Mohan |
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Designation : |
Director |
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Name : |
Shri Ashish Bagrodia |
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Designation : |
Director |
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Name : |
Shri Vinay Kumar |
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Designation : |
Director (PNB Nominee) |
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Name : |
Shri S K Singla |
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Designation : |
Director (PSIDC Nominee) |
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Name : |
Shri Manish Bagrodia |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Shri K.V. Singhal |
|
Designation : |
GM (Legal) and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Names of Category |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
162122 |
0.32 |
|
|
25817487 |
50.86 |
|
|
1360000 |
2.68 |
|
|
27339609 |
53.85 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
27339609 |
53.85 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
11800 |
0.02 |
|
|
11800 |
0.02 |
|
|
|
|
|
|
19592664 |
38.59 |
|
|
|
|
|
|
2604123 |
5.13 |
|
|
1128330 |
2.22 |
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|
89453 |
0.18 |
|
|
89453 |
0.18 |
|
|
23414570 |
46.12 |
|
Total Public
shareholding (B) |
23426370 |
46.15 |
|
Total (A)+(B) |
50765979 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
19941250 |
0.00 |
|
|
19941250 |
0.00 |
|
Total
(A)+(B)+(C) |
70707229 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufactures and Trader of Textile and Yarn Fabrics. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Yarn |
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|
- Spindles |
133440 |
109824 |
16306.35 |
|
- Rotors |
1536 |
-- |
-- |
|
Knitwears (Nos.) |
1944000 |
1160000 |
625534 |
GENERAL INFORMATION
|
No. of Employees : |
1463 (Approximately) |
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Bankers : |
·
Canara Bank ·
State Bank of Patiala ·
Punjab National Bank |
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Facilities : |
Note: Term Loan of Rs.
2833.135 Millions (PY. Rs 2994.370 Millions) from banks are secured by
mortgage of Immovable properties situated at Village Kurawala, Distt Mohali and
at Plot No.B-58, Industrial Area Phase - VII, Mohali and by hypothecation of
all the company's movable properties (save and except book debts) including
moveable plant and machinery, spares, tools and accessories both present and
future, subject to the prior charges created/to be created in favour of
Company's bankers on specified movable assets for the working capital
facilities . The mortgage and charges created / to be created shall rank
pari-passu ' inter-se' between the Banks and (ii) Term loan of Rs. 35.414
Millions (PY Rs. 61.672 Millions) from a bank which is secured by
sub-servient charges on fixed assets. The loans are repayable in quarterly
installments and maturity profile is as follows:
Term Loans from
Banks of Rs.62.005 Millions ( P.Y. Rs.103.227 Millions ) and Working Capital
Term Loans of Rs.258.849 Millions (P.Y. Rs.310.043 Millions ) (As per CDR terms)
are secured by way of first pari- passu charge on Fixed Assets and second
pari- passu charge on current assets. The loans are repayable in quarterly
installments and maturity profile is as follows:-
All the
aforesaid credit facilities mentioned here in above are also guaranteed by
two directors of the Company and by Pledge of Shares of the Company held by
the Promoter Group Vehicle Finance
of Rs 1.180 Millions is secured by hypothetical of specific assets purchased
under such arrangements. The loans and repayable in monthly installments and
maturity Profile is as under:-
Rs.36.664
Millions (Previous Year Rs.61.664 Millions) secured by hypothecation of
immovable property owned by a group company and Rs.10.561 Millions (Previous Year
Rs. 17.787 Millions) is secured by pledge of 50,00,000 nos.(Previous Year Rs.
5,00,00,000 nos.) equity shares of the Company held by a promoter company. Working capital
demand loan includes Packing Credit and Cash Credit which are secured by
hypothecation of current assets and also secured by second charge on fixed
assets of the company. 8.2 The
aforesaid credit facilities mentioned here in above are also guaranteed by
two directors of the Company and by Pledge of Shares of the Company held by
the Promoter Group. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
12, Bhagat Singh Marg, New Delhi, India |
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Associates: |
Winsome Textile Industries Limited |
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|
Subsidiary Company |
·
Winsome Yarns (Cyprus) Limited ·
S.C. Winsome Romania s.r.l ·
I.M.M. Winsome Italia s.r.l ·
S.C. Textil s.r.l. ·
Winsome Yarns FZE |
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|
|
|
Organisations where Key Management Personnel & their relative have
significant influence: |
·
Star Point Financial Services (Private) Limited ·
Shell Business Private Limited ·
Satyam Combines Private Limited |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
85000000 |
Equity Shares |
Rs.10/- each |
Rs. 850.000 Millions |
|
|
|
|
|
Issued Capital * :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
71086829 |
Equity Shares |
Rs.10/- each |
Rs. 710.868 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
70707229 |
Equity Shares |
Rs.10/- each |
Rs. 707.072 Millions |
|
|
Add: Amount Paid-up on shares forfeited |
|
Rs. 1.161 Million |
|
|
|
|
Rs. 708.233
Millions |
* The face value of equity share capital has been consolidated on
06.08.2011 from Re. 1/- each to Rs. 10/ each
Rights of
Shareholders
The Company has
only one class of Equity Shares having face value of Rs. 10/- each (Previous
Year Rs. 1/- each) in its issued, subscribed and paid up equity share capital.
Each shareholder is entitled to one vote per share (except GDR shareholding
mentioned at point no. 2.2 below). Each shareholder have the right in
profit/surplus in proportion to amount paid up with respect to share holding.
The GDR
shareholding which is standing in the name of Bank of New York Mellon, as
Depositary, has right to
dividend but do
not have any right to vote.
2In the event of
winding up, the equity shareholders will be entitled to receive the remaining
balance of assets, if
any, in proportionate to their individual shareholding in the paid up
equity capital of the company.
Details of Shareholders holding more than 5%
|
Name of Shareholder |
31.03.2012 No. of Shares
held |
|
The Bank Of New
York Mellon (Shares held by custodian and against which Depository Receipts
have been issued) |
19941250 |
|
Shell Business
(P) Limited |
20721244 |
|
Satyam Combines
(P) Limited |
5096243 |
|
Arpit Agencies
(P) Limited |
4200000 |
|
Landscape Traders
(P) Limited |
4200000 |
Reconciliation of Share capital
|
|
Nos |
|
Shares outstanding as at the beginning of the year |
58639729 |
|
Issued during
the year (a) |
12067500 |
|
Buyback during
the year |
-- |
|
Shares outstanding
as at the end of the year |
70707229 |
(a) During the
year, company allotted 1,20,67,500 equity shares of Rs 10/- each at a premium
of Rs.6/- per share.
(P.Y 13,03,25,000
equity share of Re. 1 each at a premium of Re.0.60 each) upon conversion of
equal number of
warrants allotted
on preferential basis.
(b) During the
year, the company has issued and allotted Nil Global Depository Receipts(GDRs)
(P.Y.19,94,125 GDR's representing 19,94,12,500 equity shares of Re.1/- each at
a premium of Rs.1.97 per share)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
708.233 |
587.558 |
257.821 |
|
|
2] Money received against Share Warrants |
0.000 |
76.480 |
108.800 |
|
|
3] Reserves & Surplus |
452.021 |
674.853 |
168.896 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1160.254 |
1338.891 |
535.517 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4670.838 |
4555.978 |
4451.654 |
|
|
2] Unsecured Loans |
0.000 |
36.100 |
99.583 |
|
|
TOTAL BORROWING |
4670.838 |
4592.078 |
4551.237 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
13.442 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5831.092 |
5944.411 |
5086.754 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3288.074 |
3274.668 |
3255.116 |
|
|
Capital work-in-progress |
106.638 |
303.765 |
476.654 |
|
|
|
|
|
|
|
|
INVESTMENT |
151.671 |
151.671 |
151.671 |
|
|
DEFERRED TAX ASSETS |
123.324 |
0.000 |
33.314 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1736.626
|
1645.558 |
831.545
|
|
|
Sundry Debtors |
1286.285
|
569.925 |
366.927
|
|
|
Cash & Bank Balances |
385.230
|
676.815 |
49.425
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
572.908
|
504.855 |
540.541
|
|
Total
Current Assets |
3981.049
|
3397.153 |
1788.438 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
981.584
|
522.774 |
320.899
|
|
|
Other Current Liabilities |
825.899
|
649.327 |
275.933
|
|
|
Provisions |
12.181
|
10.745 |
21.607
|
|
Total
Current Liabilities |
1819.664
|
1182.846 |
618.439 |
|
|
Net Current Assets |
2161.385
|
2214.307 |
1169.999 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5831.092 |
5944.411 |
5086.754 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4347.530 |
3305.005 |
2222.553 |
|
|
|
Other Income |
48.075 |
28.726 |
12.268 |
|
|
|
TOTAL (A) |
4395.605 |
3333.731 |
2234.821 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material consumed |
2268.802 |
|
1895.348 |
|
|
|
Purchase of stock-in-trade |
852.144 |
72.207 |
|
|
|
|
Change in inventories of finished goods, work in progress and stock in Trade |
139.676 |
(749.460) |
|
|
|
|
Employee benefit expense |
181.651 |
163.170 |
|
|
|
|
Other Expenses |
685.491 |
770.598 |
|
|
|
|
TOTAL (B) |
4127.764 |
2611.085 |
1895.348 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
267.841 |
722.646 |
339.473 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
492.709 |
392.229 |
317.393 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(224.868) |
330.417 |
22.080 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
229.612 |
217.958 |
201.409 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
(454.480) |
112.459 |
(179.329) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(136.766) |
51.369 |
(58.587) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
(317.714) |
61.090 |
(120.742) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
191.773 |
130.683 |
251.425 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(125.941) |
191.773 |
130.683 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports of goods on FOB basis (excluding export
through export houses) |
1495.431 |
1549.401 |
1212.352 |
|
|
|
Commission Income |
92.952 |
0.000 |
0.000 |
|
|
|
Handling Charges |
29.812 |
0.000 |
0.000 |
|
|
TOTAL EARNINGS |
1618.195 |
1549.401 |
1212.352 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Plant and Machinery |
15.365 |
9.550 |
60.011 |
|
|
|
Stores & Spares |
5.734 |
1.745 |
14.305 |
|
|
|
Raw Material |
1.490 |
1.744 |
24.584 |
|
|
TOTAL IMPORTS |
22.589 |
13.039 |
98.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
(4.81) |
0.19 |
(0.47) |
|
|
|
Diluted |
(4.81) |
0.12 |
(0.47) |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Net Sales |
1345.000 |
1259.000 |
|
Total Expenditure |
1162.400 |
1062.200 |
|
PBIDT (Excl OI) |
182.600 |
196.800 |
|
Other Income |
2.300 |
10.600 |
|
Operating Profit |
184.900 |
207.400 |
|
Interest |
126.500 |
128.300 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
58.400 |
79.100 |
|
Depreciation |
53.900 |
54.000 |
|
Profit Before Tax |
4.500 |
25.100 |
|
Tax |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
4.500 |
25.100 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
4.500 |
25.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(7.23)
|
1.83 |
(5.40)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(10.45)
|
3.40 |
(8.07)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.25)
|
1.69 |
(3.56)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Net worth) |
|
(0.39)
|
0.08 |
0.33
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Net worth) |
|
7.46
|
5.97 |
9.65
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.18
|
2.93 |
2.89
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of
Establishment |
Yes |
|
2] |
Locality of
the firm |
Yes |
|
3] |
Constitutions
of the firm |
Yes |
|
4] |
Premises
details |
No |
|
5] |
Type of
Business |
Yes |
|
6] |
Line of
Business |
Yes |
|
7] |
Promoter's
background |
No |
|
8] |
No. of
employees |
Yes |
|
9] |
Name of
person contacted |
No |
|
10] |
Designation
of contact person |
No |
|
11] |
Turnover of
firm for last three years |
Yes |
|
12] |
Profitability
for last three years |
Yes |
|
13] |
Reasons for
variation <> 20% |
------ |
|
14] |
Estimation
for coming financial year |
No |
|
15] |
Capital in
the business |
Yes |
|
16] |
Details of
sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major
customers |
No |
|
19] |
Payments
terms |
No |
|
20] |
Export /
Import details (if applicable) |
No |
|
21] |
Market
information |
------ |
|
22] |
Litigations
that the firm / promoter involved in |
------ |
|
23] |
Banking Details |
Yes |
|
24] |
Banking
facility details |
Yes |
|
25] |
Conduct of
the banking account |
------ |
|
26] |
Buyer visit
details |
------ |
|
27] |
Financials,
if provided |
Yes |
|
28] |
Incorporation
details, if applicable |
Yes |
|
29] |
Last accounts
filed at ROC |
Yes |
|
30] |
Major
Shareholders, if available |
Yes |
|
31] |
Date of Birth
of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
Operations and Performance
High cotton
prices, coupled with fluctuating inventory, saw Textile and Clothing (TandC) companies
post a dip in bottom line by over 100 per cent in many cases over 2011-12, says
the Confederation of Indian Textile Industry (Citi).
There is no issue
with cotton prices rising, if they do so gradually. However, from October 2010
to March 2011, prices rose from Rs 34,000 per candy (356 kg) to Rs 63,000 per
candy. In the next one month, it almost came down to where it (originally) was.
Such high fluctuations led to textile mills incurring heavy losses, during the
current year.
According to data
compiled by the Centre for Monitoring Indian Economy, out of 234 Textile and
Clothing (TandC) companies, 74 per cent or 174 companies saw poorer financial
results for the first three quarters of 2011-12. And, of these 174, as many as
130 were net loss-making. The Company also suffered losses on account of sale
of inventory piled up during the year due to stoppage of export by Government
of India.
The Company has
achieved a turnover of Rs. 4395.605 Millions against the previous year's
turnover of Rs. 3333.731 Millions i.e registering an increase of 31.85%
(approx.). The Company has incurred a net loss (after tax) of Rs. 317.714
Millions against previous year's net profit after tax of Rs. 61.090 Millions.
Expansion Projects
Out of five Micro
Hydel Power Projects having a total capacity to produce of 3.9 MW of
electricity, four Micro Hydel Projects have been commissioned upto 31st March,
2012. The implementation of one Micro Hydel Power Project is at an advanced
stage and are expected to be commissioned with in current financial year
2012-2013.
Subsidiary
Companies and Overseas Operations
During the year
wholly owned subsidiary of the Company, Winsome Yarns (Cyprus) Limited has
incorporated a wholly owned subsidiary in UAE namely Winsome Yarns FZE on
11.07.2011. According to the provisions of Section 212 of Companies Act, 1956,
the holding company is required to attach the balance sheet etc. of its
subsidiary companies along with its balance sheet. However, pursuant to
provisions of general circular no. 2/2011 issued by Ministry of Corporate
Affairs on 8th February 2011, a general exemption is granted to attach the
balance sheet of the subsidiary companies. Accordingly, the annual accounts of
Winsome Yarns (Cyprus) Limited and Winsome Yarns FZE have not been attached in
this Annual Report, but the same are available for inspection at the registered
office of the company. Further due to Global recession of which European
Countries are the worst affected, the second, third and fourth step down
subsidiaries of the Company namely; S.C. Winsome Romania, S.r.l., IMM Winsome
Italia S.r.l. and S.C. Textil, S.r.l. are under liquidation and their balance
sheet etc. is not available. The exemption from attaching the balance sheet
etc. of these three subsidiary companies was sought, pursuant to Section 212(8)
of Companies Act, 1956, and in response to which, Ministry of Corporate Affairs
informed that pursuant to General Circular No. 2/2011 issued by Ministry of
Corporate Affairs the approval of Ministry of Corporate Affairs is no more
required.
MANAGEMENT DISCUSSION and ANALYSIS REPORT
INDUSTRY SCENARIO
Textile industry
of India is the Mother industry, employing over 55 mn people directly or
indirectly in this sector. Adding to that the fast growing retail apparel industry
has further increased its importance.
In the recently
concluded World Textile Conference held in Mumbai, almost every decision maker
in this Industry agreed to the fact that there will be upsurge in the
activities as opportunities which are perceived are a lot in India's favour.
As well known, the
manufacturing base has largely shifted to south East Asian Countries and India
as well as China are going to play a very important role in this odyssey.
The present Indian
Textile and Apparel industry may grow from current level of US$ 78Bn to US$ 220
by 2020.lndia has her own strengths in terms of technical manpower
availability, wide fiber base and supporting government policies for
modernization and also raw material cost controls. The growing population of
Indian young purchasing class is making domestic market quite lucrative.
Coupled with that,
Chinese internal demand is expected to grow and there is predication that there
will be some gap between their capacity to supply to the International market
vis- a- vis internal demand. A 10 % of spill over in such case from Chinese
share is expected to give India another US $50Bn market.
Understandably
these opportunities have to be strategically aimed at and required preparation
to meet such demands has to be made.
Indian Textile and
Apparel Industry will continue to grow rapidly and so also the consciousness of
the International and domestic consumers. In this borderless trade, there is no
restrictions for purchasing the quality Garments and hence quality and cost
conscious consumer who is dictating the terms, is asking more and more in terms
of performance of the materials. UV protective clothing, highly light fast and
wash fast colors, fabrics with specialty finishes such as antibacterial, water
repellant, flame retardant properties are being asked depending upon their
applications in home textiles, night wears, protective clothing, defense etc.
Beyond day to day
use of textiles in home furnishing, apparels etc, a new segments of Technical
Textiles is opening up and the growth of such textiles in sports, industry,
buildings, defense, protection, agriculture, non woven's, and composite is
increasing at highest rate in the emerging economies such as that of India and
China.
There is
tremendous scope of growth of Technical Textiles and thus it opens all totally
new arenas for diversification and most of these products which are hitherto,
being imported will soon increasingly get substituted by Indian products. Thus
the new era is indeed promising and required technologies have to be imported
on one hand and simultaneous impetus for the research is to be given and
supported by the government and the Industry so that finally, they can become
self sufficient in manufacturing high performance textile based products in
varied field locally.
Hence, the world
of Textiles, Apparel and Technical Textiles will continue to fascinate human
being and Indian Textile Industry has to make use of positive atmosphere
available for growth of this industry.
COTTON SEASON 2011-12
India's textiles
industry faces a slowdown in the year 2011-12. Cotton yarn production is down
by 15 percent and Fabric production is down by 19 percent in the April December
2011 period over the previous year. Textiles mills faced with high priced cotton
inventories could not pass through the prices into yarn and fabrics as the
price decline came suddenly in the month of April 2011. This led to a slowdown
in production and reduced utilization capacity.
Cotton prices at the
commencement of the cotton season 2011-12 stood at Rs.39000/ candy and as the
season progressed moderated to Rs.35000/ candy in January 2012 and further
moderated to Rs. 33000/ candy in March 2012.
The Cotton Balance
Sheet for 2011-12 shows crop size of 345 lac bales, consumption of 240 lac
bales, exports of 84 lac bales and a closing stock of 55 lac bales. Ministry of
Agriculture in the 2nd estimates has estimated cotton production as 340 lac
bales. Consumption estimates were lesser than 2010-11 cotton season of as 244
lac bales while exports were projected higher than 78 lac bales achieved in
2010-11.
RECENT
DEVELOPMENTS
Along with the
increasing export figures in the Indian Apparel sector in the country,
Bangladesh is planning to set up two Special Economic Zones (SEZ) for
attracting Indian companies, in view of the duty free trade between the two
countries. The two SEZs are intended to come up on 100-acre plots of land in
Kishoreganj and Chattak, in Bangladesh.
Italian luxury
major Canali has entered into a 51:49 joint venture with Genesis Luxury
Fashion, which currently has distribution rights of Canali-branded products in
India. The company will now sell Canali branded products in India exclusively.
CONTINGENT
LIABILITY
Contingent Liability not provided for, in respect of: -
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
|
(i) Bills discounted with banks |
298.642 |
|
(ii) Outstanding Letter of Credit |
20.200 |
|
(iii) Sales Tax liability in respect of matters in appeal |
2.585 |
|
(iv) Excise duty show cause notices / matters in appeal |
54.835 |
|
(v) Service Tax Matters |
0.062 |
|
(vi) Income Tax Demand |
30.823 |
|
(vii) Outstanding bank guarantees |
21.359 |
(viii) Customs duty
saved of Rs. 367.950 Millions (Previous Year Rs. 527.117 Millions) on import of
capital good made against EPCG license against which export obligations
amounting to Rs. 2796.579 Millions. (Previous Year 2241.723 Millions) are
pending.
B) In respect of
certain disallowances and additions made by the Income Tax Authorities, appeals
are pending before the Appellate Authorities and adjustments, if any, will be
made after the same are finally determined. Considering the past experience,
management is of the view that there will not be any material impact on
accounts on
settlement / finalization of above.
C) Estimated
amount of contracts remaining to be executed on Capital Account and not provided
for Rs.118.83 Millions ( Previous year 77.746 Millions ) net of advances, Rs
7.118 Millions (Previous year Rs. 37.121 Millions), as certified by management.
FIXED ASSSETS:
v
Tangible
·
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixture
·
Office Equipments
·
Vehicles
v
Intangible
·
Specialised Software
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 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 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.55.20 |
|
|
1 |
Rs.87.79 |
|
Euro |
1 |
Rs.70.43 |
INFORMATION DETAILS
|
Report Prepared
by : |
MRI |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
27 |
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.