MIRA
INFORM REPORT
|
Report Date : |
19.12.2012 |
IDENTIFICATION DETAILS
|
Name : |
ALPS INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
B-2, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
11.05.1972 |
|
|
|
|
Com. Reg. No.: |
20 - 003544 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 2684.476 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L51109UP1972PLC003544 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MRTA00293G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s shares are listed on
Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing and use of Natural Dyes for Dyeing of
Textile Fibres, Conversion of Dyed Fibres into Yarns, Fabrics, Home
Furnishing and other Allied Textile Products. |
|
|
|
|
No. of Employees
: |
No Available |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Silk Company |
|
|
|
|
Payment Behaviour : |
- |
|
|
|
|
Litigation : |
- |
|
|
|
|
Comments : |
Subject company has been declared as a Sick Company by BIFR (Board for
Industrial and Financial Reconstruction) which is set up by Government of India.
The reason for such declaration is due to the erosion of Total Networth. Therefore, No business dealing with the subject company is advisable. |
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 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
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 |
CARE |
|
Rating |
D (Long Term Rating) |
|
Rating Explanation |
This rating are in default or expected to be
in default. |
|
Date |
September 2011 |
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 Office : |
B-2, |
|
Tel. No.: |
91- 20 – 2657 649 |
|
Fax No.: |
91- 20 – 2657 540 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
57/2, Site IV,
Industrial Area, Sahibabad, |
|
Tel. No.: |
91 - 20 – 4161700 |
|
Fax No.: |
91 - 20 – 2895299, 2896041 |
|
Product Enquiry No: |
+91 – 9560556655 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Eco-Friendly
Yarn Spinningand Dying Mil Plot
No. 1A, Sec. 10, I.I.E, SIDCUL, Haridwar, Uttarakhand- 249403, India |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
High
Quality Compact Yarn Spinning Mill Plot
No. 1B, Sec. 10, I.I.E., SIDCUL, Haridwar, Uttarakhand- 249403, India |
|
E-Mail : |
|
|
|
|
|
Factory 3 : |
Automotive,
Technical And Cotton Fabric Weaving and Processing Project Village
–Aminagar, Bhoor Baral, Meerut Delhi Road, Meerut – 250103 Uttar Pradesh,
India |
|
Factory 4 : |
Vista
Awnings Division A-2,
Loni Road Industrial Area Ghaziabad – 201 007 Uttar Pradesh. India |
|
E-Mail : |
|
|
|
|
|
Factory 5 : |
Home
Furnishing Made-Ups A-16/2,
Site IV, Industrial Area, Sahibabad, Distt Ghaziabad – 201 010 Uttar Pradesh,
India |
|
|
|
|
Factory 6 : |
Yarn
Spinning Mill (On long term lease) Kashipur Spinning Mills, Near
Govt. Degree College, Kashipur Bazpur Road, Kashipur, Udham Singh Nagar
Uttarakhand – 244 713, India |
|
E-Mail : |
|
|
|
|
|
Factory 7 : |
Yarn
Spinning Mill (On long term lease) Jaspur Spinning Mills, Afzal
Garh Road, Jaspur, Udham Singh Nagar, Uttarakhand – 244 712, India |
|
E-Mail : |
|
|
|
|
|
Factory 8 : |
Vista
Flooring A-3,
Loni Road Industrial Area Ghaziabad – 201 007 Uttar Pradesh, India |
|
E-Mail : |
|
|
|
|
|
Factory 9 : |
Roller
Blinds B
- 160-161, Industrial Estate, Mettupalayam, Puducherry – 605 009, India |
|
|
|
|
Factory 10 : |
Showroom
and Fashion Accessories Division B-2,
Loni Road Industrial Area, Opp. Mohan Nagar, Ghaziabad – 201 007, Uttar
Pradesh, India |
|
Tel. No.: |
91-20-2657
649 |
|
Fax No.: |
91-20-2657
540 |
|
E-Mail : |
|
|
|
|
|
R and T Agency
: |
Alankit
Assignment Limited, Alankit House, 2E/21, Jhandewalan Extn., New Delhi-110
055, |
|
Tel No.: |
91-11-4154
0061-63 |
|
Fax No.: |
91-11-4154
0064, 4254 1201 |
|
Email .: |
|
|
|
|
|
Regional and Marketing Offices : |
Located at : ·
Bangalore ·
Ghazibad / Delhi NCR ·
Mumbai ·
Kolkata ·
Pune ·
Chennai ·
Hyderabad ·
Lucknow |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. K. K. Agarwal |
|
Designation : |
Non Executive Chairman |
Other Directorship:
|
Name : |
Mr. Sandeep Agarwal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr, Pramod Kumar Rajput |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Prabhat Krishna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tilak Raj Khosla |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pradyuman Kumar Lamba |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sonalal Datta |
|
Designation : |
Nominee Director |
|
|
|
|
Name : |
Mr. Mohan Lal Sharma |
|
Designation : |
Special Director |
KEY EXECUTIVES
|
Name : |
Mr. Ajay Gupta |
|
Designation : |
Company Secretary / Compliance Officer |
|
Phone No : |
91-20- 4161716 |
|
Fax : |
91-20- 2896041, 2895299 |
|
Email ID : |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.11.2012
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
2906028 |
7.43 |
|
|
5679990 |
14.52 |
|
|
8586018 |
21.95 |
|
|
|
|
|
|
2000000 |
5.11 |
|
|
2000000 |
5.11 |
|
Total shareholding of
Promoter and Promoter Group (A) |
10586018 |
27.06 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
300 |
0.00 |
|
|
200 |
0.00 |
|
|
100 |
0.00 |
|
|
2028738 |
5.19 |
|
Foreign Institutions Investors |
300000 |
.077 |
|
|
2329338 |
5.96 |
|
|
|
|
|
|
2571099 |
6.57 |
|
|
|
|
|
|
13900353 |
35.54 |
|
|
9022782 |
23.07 |
|
|
704510 |
1.80 |
|
|
704510 |
1.80 |
|
|
26198744 |
66.98 |
|
Total Public
shareholding (B) |
28528082 |
72.94 |
|
Total (A)+(B) |
39114100 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0000 |
0.00 |
|
Total (A)+(B)+(C) |
39114100 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing and use of Natural Dyes for Dyeing of Textile
Fibres, Conversion of Dyed Fibres into Yarns, Fabrics, Home Furnishing and
other Allied Textile Products. |
PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Yarn |
M.T. |
NA |
4650.000 |
|
Fabric / Made ups / fashion Accessories |
‘000 Sq. Mtr. |
NA |
3000.000 |
GENERAL INFORMATION
|
No. of Employees : |
No Available |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
State Bank of India ·
State Bank of Patiala ·
State Bank of Mysore ·
State Bank of Hyderabad ·
Punjab National Bank ·
Syndicate Bank ·
UCO Bank ·
IDBI Bank Limited ·
ICICI Bank Limited ·
HDFC Bank ·
Standard Chartered Bank |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P. Jain and Company Chartered Accountant |
|
|
|
|
Wholly owned Subsidiary Companies |
·
Alps Energy Private Limited ·
Snowflakes Meditech private Limited (Formerly
known as Alps Retail Private Limited) ·
Alps USA Incorporation |
|
|
|
|
Entities controlled by subsidiaries, key managerial personnel and
their relatives |
·
Alps Processers Private Limited ·
Careen Fintec Private Limited ·
Coronation Spinning India Private Limited ·
Jhala – Koti Gunsola Power Private Limited ·
Pacific Texmark Private Limited (Formally known
as Alps Infin Private Limited ·
Padam Precision Dies and Component Private
Limited ·
Peek Finvest Private Limited ·
Perfect Finmen Services Private Limited ·
Roseate Finvest Private Limited ·
Saurabh Floriculture Private Limited ·
Supreme Finvest Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40,000,000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
305,000,000 |
Preference Shares |
Rs.10/- each |
Rs.3050.000 Millions |
|
|
TOTAL |
|
Rs.3450.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39,114,100 |
Equity Shares |
Rs.10/- each |
Rs.391.141
Millions |
|
994,325,99 |
1% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.994.326 Millions |
|
141,307,6 |
6% Cumulative Redeemable Preference Shares |
Rs.10/- each |
Rs.14.131 Millions |
|
128,487,790 |
6% Optionally Convertible Cumulative Preference Shares |
Rs.10/- each |
Rs.1284.878 Millions |
|
|
TOTAL |
|
Rs.2684.476 Millions |
AS ON 29.09.2012
Authorised Capital :
Rs.3450.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.3070.431
Millions
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 |
2684.476 |
1320.680 |
345.141 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
(4438.409) |
(1663.368) |
1688.293 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
(1753.933) |
(342.688) |
2033.434 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
10762.225 |
11655.023 |
10785.550 |
|
|
2] Unsecured Loans |
485.696 |
410.639 |
815.276 |
|
|
TOTAL BORROWING |
11247.921 |
12065.662 |
11600.826 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
219.151 |
|
|
|
|
|
|
|
|
TOTAL |
9493.988 |
11722.974 |
13853.411 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5827.123 |
6218.042 |
6631.571 |
|
|
Capital work-in-progress |
57.440 |
75.182 |
154.458 |
|
|
|
|
|
|
|
|
INVESTMENT |
98.356 |
98.356 |
154.905 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3027.299
|
4681.052 |
3077.798 |
|
|
Sundry Debtors |
1334.225
|
1284.249 |
1292.546 |
|
|
Cash & Bank Balances |
207.549
|
199.882 |
206.327 |
|
|
Other Current Assets |
130.961
|
118.435 |
0.000 |
|
|
Loans & Advances |
258.617
|
499.731 |
667.866 |
|
Total
Current Assets |
4958.651
|
6783.349 |
5244.537 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
543.733
|
1146.550 |
|
|
|
Other Current Liabilities |
874.995
|
271.406 |
754.942 |
|
|
Provisions |
28.854
|
33.999 |
|
|
Total
Current Liabilities |
1447.582
|
1451.955 |
754.942 |
|
|
Net Current Assets |
3511.069
|
5331.394 |
4489.595 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
2422.882 |
|
|
|
|
|
|
|
|
TOTAL |
9493.988 |
11722.974 |
13853.411 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6686.091 |
6934.084 |
4688.216 |
|
|
|
Other Income |
99.174 |
151.696 |
35.790 |
|
|
|
TOTAL |
6785.265 |
7085.780 |
4724.006 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
5608.921 |
5259.250 |
|
|
|
|
Purchased of Stock-in-Trade |
49.943 |
128.730 |
|
|
|
|
Changes in Inventories of Finished Goods and Work-in-Progress |
705.631 |
(817.151) |
4907.262 |
|
|
|
Employee Benefit Expenses |
524.959 |
560.437 |
|
|
|
|
Other Expenses |
1182.114 |
1866.091 |
|
|
|
|
TOTAL |
8071.568 |
6997.357 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) |
(1286.303) |
88.423 |
(183.256) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1009.911 |
828.395 |
564.206 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) |
(2296.214) |
(739.972) |
(747.462) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
456.042 |
444.265 |
306.607 |
|
|
|
|
|
|
|
|
|
Less |
Exceptional
Items |
22.785 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) |
(2775.041) |
(1184.237) |
(1054.069) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
(219.151) |
12.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) |
(2775.041) |
(965.086) |
(1066.569) |
|
|
|
|
|
|
|
|
|
Add |
Prior period
adjustment |
0.000 |
0.000 |
149.674 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(4156.196) |
(3191.110) |
(2274.205) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED TO
THE B/S |
(6931.237) |
(4156.196) |
(3191.100) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
1906.743 |
2745.105 |
1433.225 |
|
|
TOTAL EARNINGS |
1906.743 |
2745.105 |
1433.225 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
225.354 |
256.983 |
115.243 |
|
|
|
Capital Goods |
0.000 |
9.692 |
54.003 |
|
|
|
Components and Spare Parts |
14.361 |
19.324 |
34.583 |
|
|
TOTAL IMPORTS |
239.715 |
285.999 |
203.829 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(70.94) |
(25.28) |
(26.57) |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2012 |
30.09.2012 |
|
|
|
|
1rd
Quarter |
2th
Quarter |
|
Net Sales |
|
|
1529.040 |
1648.810 |
|
Total Expenditure |
|
|
1465.150 |
1557.420 |
|
PBIDT (Excl OI) |
|
|
63.890 |
91.390 |
|
Other Income |
|
|
17.060 |
11.980 |
|
Operating Profit |
|
|
80.960 |
103.370 |
|
Interest |
|
|
237.010 |
253.810 |
|
Exceptional Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
(156.050) |
(150.440) |
|
Depreciation |
|
|
113.800 |
115.400 |
|
Profit Before Tax |
|
|
(269.850) |
(265.840) |
|
Tax |
|
|
0.000 |
0.000 |
|
Provisions and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
(269.850) |
(265.840) |
|
Extraordinary Items |
|
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
(269.850) |
(265.840) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(40.90)
|
(13.62) |
(22.57) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(41.50)
|
(17.08) |
(22.48) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(23.35)
|
(9.04) |
(8.76) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
1.58
|
3.46 |
(0.52) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
(0.83)
|
(4.24) |
0.37 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.43
|
4.64 |
6.95 |
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 |
No |
|
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 |
No |
|
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 |
PERFORMANCE
REVIEW
In this
highly competitive environment, textile business is becoming more innovative in
approach. Expertise to asses and consolidate the opportunities are essential
pre-requisite and every company need to utilize the expertise that are
available throughout the globe. Out of the total global textile and clothing
trade estimated at US$ 633 Billion today, about 58% constitutes apparel, 18% is
home textiles and the balance 24% comprises other textile products like yarns,
greige fabrics, industrial fabrics, medical and other textiles. With a share of
over 35% in textile trade, home textile are amongst the best performing sectors
of the Indian textile industry. The depreciation of the Indian rupee against
the US Dollar and Euro since August’ 2011 is seen to be improving India’s
competitive position in the export market, as currencies of competing countries
like Bangladeshi Taka, Chinese Yuan, Vietnamese Dong and Euro depreciated by
lower rate or appreciated during the same period. Therefore, should the trend
remain, the effect will be positive on the rupee revenue of exporters. However,
the benefit would be offset for companies with a higher percentage imports in
the production for exports. During the second quarter of
previous
year the international market seen a steep rise in the cotton prices resulting
into the maximum export of cotton from country and reflecting the same price
trend in the domestic market. To protect the domestic industry in March 2012,
India had banned the cotton exports and cotton yarn in January 2011 which
resulted into the accumulation of high inventory. During March' 11 and May 2012
the quota of export of cotton yarn and cotton opened respectively which
resulted into high supply into international market and consequently crashing
of the prices and the situation continue till October 2011. Over the past three
year, there has been a marked change in the business strategy of spinning
companies as high operational costs pulled down their earnings. Quite a few
spinning companies are moving up the value chain in the textiles industry as
part of efforts to emerge as vertically integrated textile players. In the past
five years, the average net profit margin of spinning companies showed a meagre
growth of 140 basis points while that of vertically integrated textile
companies almost doubled in the same period.
Recently,
the company has started manufacturing value added finished products to supply
to different customers in US, UK and other parts of the world. This product
category is design based and needs high skilled workmanship. As the company is
having in-house spinning, weaving and processing facilities, it gives an edge
over others for a better price in today’s competitive global condition.
The company
has also started association with renowned UK retailers to expand the customer
base and business volumes. The business relationship by way of developing the
retail chain in USA Market is also under process, which will help them to enjoy
better business opportunities in global market.
Fashion
Accessories Division is undergoing a transition and focus is on the product
lines being offered to the market. The global recession last year , had put the
premium products out of reach for most consumers across the world, where the
volumes for the Cashmere, High value products had dipped globally. The market
hit by recession and cut in spending power by the consumer, demanded alternate
products which could give the same aesthetic appeal, but the costs would remain
marginal. This year they see a trend reversal, where there is an upsurge of
demand in mid to high value products, where in the average value of the product
has risen from last year and volumes are lower, which is being compensated by
higher value. The endeavor has been on increasing the bottom line, cut down on
turn-around time and deliverables. They have undertaken various steps to
streamline their production processes, which have brought down process
rejections and increased productivity which reflect in their bottom line.
Currently,they
are in a process of consolidation of their existing markets and customers, to
increase the value from each customer and a higher share of the market in the
first half. In this financial year, they are venturing into new markets where,
they are receiving a good response. In the domestic market, which has a huge
potential, they have started institutional marketing of Cashmere products as an
ideal corporate gift article capitalizing on the perceived value and pride associated
by consumers on being the proud owner of a Cashmere product.
They
envisage a good growth rate in the current financial year, through their
continuous process of product re-engineering and value additions to have a
cutting edge in the market.
Due
to various unavoidable reasons and natural calamity, the production of yarn had
to be curtailed down in some of the units of the company, just to meet out the
market demands. In the yarn segment the company is also expanding and exploring
the market to some new countries like Columbia, Peru etc being the focussed
markets including some south Indian market. Further some new shades in dyed
yarn like Indigo Blue and Grindle Yarns has been added to take more share in
the market.
During
the year, the company has introduced new variants under the different products
like Vertical, Venetian, Roller, Cellular, Roman and Roll Up Blinds, Drapery
Rods, Curtain Tracks, Awnings, Umbrellas, Laminated Wooden Flooring and Solid
hardwood floorings.
40
Annual 2011-2012
The
company has ended the twelve months accounting period ended on March 31, 2012
with a loss of Rs.2775.040 Millions in
comparison with loss of Rs. 965.080 millions in the previous year. The current
year has passed through a very hard faze and witnessed an estimated loss of Rs.
11000.000 crore to the Indian spinning industries due to intervention of
government on export of cotton and yarn marketing policies resulted into a
sudden fall in the domestic/international prices of cotton and yarn. However
the market is settling down slowly and at present the company is able to earn a
positive EBIDTA however the company is still struggling to cover up its
Interest and Depreciation cost and is hopeful to perform batter in the coming
year. The company is also able to gradually enhance the utilization capacity of
its Meerut, Kashipur and Jaspur Units and is expecting has recorded a steep
high, by more than 70% in comparison with previous year.Nowthe directors are
hopeful that this trend will continue in current financial year also.
FOCUSONTECHNOLOGICAL
GROWTH/EXPANSION
In
one of the major units located at Haridwar, the focus has been diverted to
stable&less volatile products which will improve the margins and less exposure
to speculations. They have identified the markets and products which not only
give them edge in the market but also help them to increase the capacity
utilization into value added yarns like dyed yarns, twisted yarns, PVA yarns,
slub yarns LE twist, organic yarn, core spun yarn etc. They are further
planning to increase production during the current financial year, which will
increase the margins to some extent. In one of the lease hold unit located at
Kashipur, due to increase in the cotton prices and damage stock of cotton by
flood water, the production had curtailed down. But the market improved in the
month of January’ 2012 and various variants of counts like 2/60s poly, 2/40s
poly TFO, 2/30s RT poly, 2/36s RT (optical white poly) etc. were introduced
which may improve the performance of the unit in the current financial year.
The unit is continuously enhancing the production capacity and may achieve the
same level of production, as was earlier during the current financial year
WEAVINGANDPROCESSING
PLANTAT MEERUT
The
unit was started in the year 2009 with state-of-art plant having latest
machineries from the world’s best makers, which produce high quality products.
Although the unit had commenced the operations during the recession time and
they are a bit slow in gaining momentum, but now it is coming back on the
track. The unit produces Cotton, Polyester, Cationic Blends, Linen Blends
fabrics etc.. There are serious efforts to add new buyers and countries in
company’s clientele. Presently, the unit is catering to almost all the
potential countries like USA, UK, Australia, Russia, France, Singapore, Middle
East etc. Further, the unit specializes in Technical and Coated fabric, in
which the unit has dedicated production Lines. To control the quality checks on
international parameter, they have installed Martindale Abrasion Tester in the
fabric testing facility, which is very important parameter for upholstery
fabric. During the last financial year, the company has introduced new range of
technical textiles products under the brand name of “Sleep Dry” for baby care
having the features like, ultimate protection from bacteria, breathable, water
proof soft toys range and absorbent, provides extreme comfort to the babies'
sensitive skin, superior barrier against bed wetting, treated with silver based
solution, easily washable and durable, antimicrobial and prevention against
dust mite, which otherwise might cause allergic reactions like asthma,
eczemaetc etc.
FINANCIAL
STRATEGY
The
company was sanctioned a restructuring scheme underCDRmechanism byCDREmpowered
Group on August 31, 2009 and as amended from time to time. The package
comprised of conversion of unsustainable debt into OCCPS/CRPS, funding of
Interest and reduction of interest to 9% among other relief. However, the
Company could not achieve the projected Operating Profit level in subsequent
year i.e.2010-11, mainly due to higher cost of raw materials and delay in
implementation of Meerut Plant. These adverse situations demanded the reworking
of existing sanctioned CDR package. The CDR EG reworked its existing package
accordingly by issuing of LOA dated 04.05.2011 and allowed some additional
reliefs to the Company like Conversion of additional unsustainable portion of
Term Loan into Equity, reduced and step-up Rate of Interest and Realignment of
the balance Term Loan installments. However due to unprecedented situation of
cotton and cotton yarn market, company could not achieved the estimated profit
and incurred a negative EBIDTA resulted into the depletion of working capital.
However, the company honored its due liabilities towards secured lenders up to
June’ 2011.With a view to tide over the above difficulty arising out of the
industry situation, the company had approached SBI and other lenders to commensurate
the debt obligations of the company in line with the expected operating profits
of the company based on the recommendations on restructuring of Textile loans
forwarded by Government of India to the RBI for their consideration.
JOINT
VENTURES
The
company had investment in Cody Direct Corp (erstwhile Columbine Cody Corp.) of
2,450 Common Stock constituting 50% holding of the above company, which has
been diluted, consequent to allotment of further stock by the company to
another investors.
TEXTILES
INDUSTRY STRUCTURE AND DEVELOPMENT
Spinning
Companies have diversified into the business of manufacturing fabrics in recent
years from the earlier capitalintensive spinning business. There are two
factors which have contributed to this shift in the business of spinning
companies to fabric business viz high cost of power and interest rates.
Cotton
The
global cotton price which is largely a function of global demand and supply of
cotton has been influenced by factors other than actual user demand and overall
supply of cotton in 2011-12. The Chinese policy of accumulating cotton for
strategic reserves and occasional policy decisions of Indian Government in
relation to export of cotton has caused much volatility in cotton prices. The
Cotlook Index -A for the year 2011-12 was 102 US cents /lbs in comparison to
164 US cents/lbs in 2010-11. The global cotton production is estimated at
27.160 million tons in 2011-12, which is expected to decline to 24.900 million
tons in 2012-13 due to lower area under cotton cultivation in sync with
moderation in global cotton prices to an extent. The global mill consumption of
cotton is estimated at 22.700 million tons in 2011-12 and is projected to grow
moderately in 2012-13.
Yarn
Financial
year 2011-12 was a year rampant with nervousness and unpredictability, which
was not a conducive
environment
for business. The ban on the exports of cotton yarn in January, 2011 seriously
impacted the industry and there was accumulation of inventory till end of
March, 2011. The Government announced its new policy on export of Cotton Yarn
in first week of April, 2011 and yarn export was brought under Open General
Licence. As a result, the yarn prices moved in a wide range for the first half
of the year. Most of the textile mills, particularly which are predominantly
spinning, suffered losses including losses incurred by the writing down of the
stock of cotton and yarn held by the end of June, 2011. However, it was only in
the second half that things showed some signs of stabilization. All India yarn
production was lower by an estimated15%due to:
(i)
Power crisis in the South
(ii)
Huge inventory losses as referred above resulting in severe shortage of working
capital availability to some
companies
(iii)
Acute labour shortage across India
(iv)
Sharp fall in yarn prices as compared to last year propelling voluntary cut in
production.
However,
this year production is expected to increase even though margins are expected
to be on the lower side only. There is also a noticeable trend of increasing
value addition in products. The removal of trade barriers with Bangladesh is
yet to show any impact on the Indian Industry.
Overall
the year is expected to be more stable due to expectation that cotton will be
much less volatile than last year. Growth of the industry will hinge on
recovery in the global economy although Indian demand is expected to increase
at a relatively moderate rate. In this highly competitive environment, textile
business is becoming more innovative in approach. Expertise to asses and
consolidate the opportunities are essential pre-requisite and every company
need to utilize the expertise that are available throughout the globe. Over the
past three year, there has been a marked change in the business strategy of
spinning companies as high operational costs pulled down their earnings. Quite
a few spinning companies are moving up the value chain in the textiles industry
as part of efforts to emerge as vertically integrated textile players. In the
past five years, the average net profit margin of spinning companies shoed a
meagre growth of 140 basis points while that of vertically integrated textile
companies almost doubled in the same period.
OUTLOOK
Two
years ago, government promised a cotton trade policy with all the trimmings of
goods governance. After a similar export debacle in 2010, government vowed that
the new policy would include transparent contract registration, a tariff driven
export regulation policy, and a reserve stock policy designed to ensure the
textile industry’s viability dur cyclical downturns. But policy goals need the
right administrative mechanisms to succeed. The international textile fairs
like Tex Trends 2012 puts a window of opportunities for the industry where
products from handlooms to technical textiles are under one roof. It caters to
product categories in casual wear, city wear, high fashion and occasional wear,
specialty garments, sportswear, knitwear and made-ups bed linen, napkins,
cushion covers, floor mats, curtains etc.. India, in recent years, has been the
focal point of continuous growth, development and the first largest producer of
raw jute, second largest producer of silk, cotton yarn, raw cotton and fifth
largest producer of synthetic fiber yarn. South Korea has got tremendous
presence in apparels thereby providing good scope for the export of fabrics
including other products. The provisional data for the fiscal year 2011-12
shows that exports of Cotton Textiles from India reached US $ 7200 Mn with
Cotton Made ups reaching US $ 3010 Mn, Cotton Yarn valued at US $ 2650Mnand
Cotton Fabrics at US $ 1510 Mn. The targetofUS$7BnF.Y. 2011-12 has thus not
only been achieved but also surpassed.
FIXED ASSETS
·
Leasehold Land
·
Free Hold Land
·
Building
·
Plant and Machinery
·
Furniture and Fixture
·
Vehicles
·
Office equipments
·
Computers
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 rceived 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 :
Their
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.
Their 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.54.85 |
|
|
1 |
Rs.88.93 |
|
Euro |
1 |
Rs.72.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
SPR |
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.