%20-%20166837%2019-Jan-2012_files/image002.jpg){kind=small}
MIRA
INFORM REPORT
|
Report Date : |
19.01.2012 |
IDENTIFICATION DETAILS
|
Name : |
RAJAPALAYAM MILLS LIMITED RAJAPALAYAM SPINTEXT (DIVISION OF RAJAPALAYAM MILLS LIMITED) |
|
|
|
|
Registered
Office : |
Rajapalayam Mills Premises, Post Box No.1, |
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|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
24.02.1936 |
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|
|
|
Com. Reg. No.: |
18-2298 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.35.126 millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TN1936PLC002298 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MRIR00352C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR8897F |
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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
: |
Company operates in three segments: Textiles, Tissue Culture
and Power generation from Wind Mills. |
|
|
|
|
No. of Employees
: |
2644 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5900000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
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|
|
|
Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an old and established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as
fair. Business is active. Payments are regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office/Factory 1 : (Textile Division) |
Rajapalayam Mills Premises, Post Box No.1, |
|
Tel. No.: |
91-4563-235666 |
|
Fax No.: |
91-4563-236520 |
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E-Mail : |
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|
Website : |
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|
Factory 2 : (Textile Division) |
Rajapalaiyam Spintext, P.A.C. Ramasamy Raja Salai, Rajapalaiyam – 626
117, Tamil Nadu, |
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|
|
|
Factory 3 : (Textile Division) |
Rajapalaiyam Textiles, |
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|
|
|
Factory 4 : (Textile Division) |
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|
|
|
|
Factory 5 : (Tissue Culture Division) |
Shri Ramco Bio-Tech, |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. P.R. Ramasubrahmaneya Rajha |
|
Designation : |
Chairman |
|
Qualification : |
B.Sc. |
|
|
|
|
Name : |
Mrs. R. Sudarsanam |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P.R. Venketrama Raja |
|
Designation : |
Director |
|
Qualification : |
B.Tech., M.B.A. |
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|
|
|
Name : |
Mr. S.S. Ramachandra Raja |
|
Designation : |
Director |
|
Qualification : |
B.Sc. |
|
|
|
|
Name : |
Mr. N.K. Ramasuwami Raja |
|
Designation : |
Director |
|
Qualification : |
B.Sc. |
|
|
|
|
Name : |
Dr. K.T. Krishnan |
|
Designation : |
Director |
|
Qualification : |
M.D., F.C.C.P. |
|
|
|
|
Name : |
Mr. P.S. Jaganatha Raja |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. N.R.K. Venkatesh Raja |
|
Designation : |
Director |
|
Qualification : |
B.E. |
|
|
|
|
Name : |
Mr. V.S. Vemban |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A.V. Dharmakrishnan |
|
Designation : |
Director |
|
Qualification : |
B.Com., ACA. |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 25.11.2011
|
Category of Shareholders |
No. of Shares |
% of total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,914,452 |
25.95 |
|
|
1,905,440 |
25.83 |
|
|
3,819,892 |
51.79 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3,819,892 |
51.79 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2,060 |
0.03 |
|
|
2,060 |
0.03 |
|
|
|
|
|
|
210,863 |
2.86 |
|
|
|
|
|
|
1,796,369 |
24.35 |
|
|
1,546,901 |
20.97 |
|
|
3,554,133 |
48.18 |
|
Total Public shareholding (B) |
3,556,193 |
48.21 |
|
Total (A)+(B) |
7,376,085 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
7,376,085 |
- |
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(1) Indian%20-%20166837%2019-Jan-2012_files/image005.gif){kind=small}
Individuals / Hindu Undivided Family%20-%20166837%2019-Jan-2012_files/image006.gif){kind=small}
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Company operates in three segments: Textiles, Tissue
Culture and Power generation from Wind Mills. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Spindles |
Nos |
125792 |
-- |
|
Rotors |
Nos |
3816 |
-- |
|
Wind Mills |
MW |
30.70 |
-- |
|
Yarn |
Kgs |
-- |
13728874 |
|
Power from Wind Mills |
Lakhs – KWH |
-- |
443 |
GENERAL INFORMATION
|
No. of Employees : |
2644 (Approximately) |
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Bankers : |
·
Axis Bank Limited ·
Canara Bank ·
Corporation Bank ·
ICICI Bank Limited ·
IDBI Bank Limited ·
Indian Bank ·
Karur Vysya Bank Limited ·
·
State Bank of ·
Tamilnad Mercantile Bank Limited |
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|
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Facilities : |
Notes Of the above ·
an amount of Rs.2595.063 millions (Previous Year
Rs.2216.367 millions) are secured by pari- passu charge on the fixed assets of
the company and a second charge on the current assets of the company. ·
an amount of Rs.696.125 millions (Previous Year
Rs.377.095 millions) are secured by pari- passu charge on stock-in-trade,
stores and book debts of the company and a second charge on the fixed assets
of the company. ·
an amount of Rs.250.000 millions (Previous Year
Rs.700.000 millions) are secured by subservient charge on raw material stock
of the company.
|
|
|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name 1 : |
M/s. M.S. Jagannathan and N. Krishnaswami Chartered Accountants |
|
Address : |
27, Premier Flats, |
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|
|
|
Name 2 : |
M/s. Ramakrishna Raja and Company Chartered Accountants |
|
Address : |
1-D, Shanthinikethan, |
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|
|
|
Enterprises over which the above persons exercise
significant influences and with which the Company had transactions during the
year : |
·
Madras Cements Limited ·
Sri Vishnu Shankar Mill Limited ·
The Ramaraju Surgical Cotton Mills Limited ·
Thanjavur Spinning Mill Limited ·
Ramco Industries Limited ·
Ramco Systems Limited ·
Sandhya Spinning Mill Limited ·
Sri Harini Textiles Limited ·
Rajapalayam Spinners Private Limited |
CAPITAL STRUCTURE
As on 20.07.2011
Authorised Capital : Rs.150.000 millions
Issued, Subscribed & Paid-up Capital : Rs.73.762
millions
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3512580 |
Equity Shares |
Rs.10/- each |
Rs.35.126
millions |
Note
2701270 Shares of
Rs.10/- each were alloted as fully paid Bonus Shares by Capitalisation of
General Reserves.
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 |
35.126 |
35.126 |
35.126 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1447.093 |
1239.626 |
1146.521 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1482.219 |
1274.752 |
1181.647 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3541.187 |
3293.462 |
3760.326 |
|
|
2] Unsecured Loans |
555.155 |
293.057 |
208.854 |
|
|
TOTAL BORROWING |
4096.342 |
3586.519 |
3969.180 |
|
|
DEFERRED TAX LIABILITIES |
406.176 |
286.176 |
265.376 |
|
|
|
|
|
|
|
|
TOTAL |
5984.737 |
5147.447 |
5416.203 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3281.954 |
2991.162 |
3227.910 |
|
|
Capital work-in-progress |
12.409 |
23.543 |
9.354 |
|
|
|
|
|
|
|
|
INVESTMENT |
388.039 |
388.039 |
388.039 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1180.190
|
769.283 |
608.246 |
|
|
Sundry Debtors |
414.275
|
238.885 |
205.023 |
|
|
Cash & Bank Balances |
63.812
|
55.932 |
27.416 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1115.543
|
1036.065 |
1229.462 |
|
Total
Current Assets |
2773.820
|
2100.165 |
2070.147 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
0.000
|
0.000 |
0.000 |
|
|
Other Current Liabilities |
275.707
|
270.988 |
225.528 |
|
|
Provisions |
195.778
|
84.474 |
54.499 |
|
Total
Current Liabilities |
471.485
|
355.462 |
280.027 |
|
|
Net Current Assets |
2302.335
|
1744.703 |
1790.120 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.780 |
|
|
|
|
|
|
|
|
TOTAL |
5984.737 |
5147.447 |
5416.203 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Sales |
3048.510 |
2384.037 |
2192.685 |
|
|
|
Value of Power Generated from Wind Mills |
176.931 |
168.722 |
155.486 |
|
|
|
Other Income |
158.782 |
283.304 |
237.095 |
|
|
|
TOTAL (A) |
3384.223 |
2836.063 |
2585.266 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material consumed |
1544.737 |
1224.912 |
1086.161 |
|
|
|
Salaries, Wages and Other amenities to employees |
293.139 |
229.838 |
202.105 |
|
|
|
Power and Fuel |
460.535 |
391.869 |
366.341 |
|
|
|
Packing Materials consumed |
53.279 |
44.280 |
40.862 |
|
|
|
Repairs and Maintenance |
136.403 |
97.610 |
85.268 |
|
|
|
Administrative and Selling Expenses |
103.242 |
80.409 |
170.403 |
|
|
|
Increase / Decrease in stock |
(253.182) |
(7.809) |
(33.366) |
|
|
|
Other Expenditure |
51.082 |
30.032 |
65.874 |
|
|
|
TOTAL (B) |
2389.235 |
2091.141 |
1983.648 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
994.988 |
744.922 |
601.618 |
|
|
|
|
|
|
|
|
|
Less |
INTEREST AND
FINANCIAL CHARGES (D) |
285.078 |
293.659 |
252.739 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
709.910 |
451.263 |
348.879 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
321.107 |
303.370 |
299.968 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE
TAX (E-F) (G) |
388.803 |
147.893 |
48.911 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
120.100 |
30.212 |
(15.500) |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
268.703 |
117.681 |
64.411 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
96.931 |
15.596 |
13.295 |
|
|
|
|
|
|
|
|
|
Add |
EXCESS INCOME
TAX PROVISION WITHDRAWN |
0.000 |
0.000 |
3.437 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
280.000 |
11.770 |
45.000 |
|
|
|
Interim Dividend |
0.000 |
0.000 |
10.537 |
|
|
|
Tax on Interim Dividend |
0.000 |
0.000 |
1.790 |
|
|
|
Dividend |
26.344 |
21.076 |
7.026 |
|
|
|
Tax on Dividend |
4.274 |
3.500 |
1.194 |
|
|
|
Platinum Jubilee Dividend |
26.344 |
0.000 |
0.000 |
|
|
|
Tax on Platinum Jubilee Dividend |
4.274 |
0.000 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
24.398 |
96.931 |
15.596 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on Yarn |
805.439 |
442.648 |
843.579 |
|
|
|
Export on Fabric |
8.936 |
0.000 |
6.967 |
|
|
TOTAL EARNINGS |
814.375 |
442.648 |
850.546 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
445.712 |
416.653 |
312.979 |
|
|
|
Components and Spares |
11.777 |
10.073 |
10.865 |
|
|
|
Capital Goods |
37.822 |
1.560 |
439.232 |
|
|
TOTAL IMPORTS |
495.311 |
428.286 |
763.076 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
76.00 |
34.00 |
18.00 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
800.200 |
940.200 |
|
Total Expenditure |
|
794.000 |
825.600 |
|
PBIDT (Excl OI) |
|
6.200 |
114.600 |
|
Other Income |
|
14.700 |
61.500 |
|
Operating Profit |
|
20.900 |
176.100 |
|
Interest |
|
90.300 |
94.200 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
(69.400) |
81.900 |
|
Depreciation |
|
77.900 |
77.600 |
|
Profit Before Tax |
|
(147.300) |
4.300 |
|
Tax |
|
(45.500) |
(8.000) |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
(101.800) |
12.300 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
(101.800) |
12.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
7.94
|
4.15 |
2.49 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.75
|
6.20 |
2.23 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.42
|
2.90 |
0.92 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.26
|
0.12 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.08
|
3.09 |
3.60 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.88
|
5.91 |
7.39 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL RESULTS
The financial
results for the year ended 31st March, 2011 after charging all expenses and
contribution to P.A.C. Ramasamy Raja Memorial Fund of Rs.10.000 millions (which
is within the limits laid in the Articles of Association) but before deducting
interest and depreciation have resulted in operating profit of Rs.994.988
millions.
After deducting
Rs.285.078 millions towards interest cost and providing Rs.321.107 millions
towards Depreciation, the Net Profit for the year is Rs.388.803 millions adding
the surplus of Rs.96.931 millions brought forward from the previous year, the
Directors propose to appropriate the total sum of Rs.485.734 millions.
TRADE CONDITIONS
The performance of
the Company during the Platinum Jubilee year was commendable and has been
highest in the history of the Company inspite of the unprecedented increase in
cotton prices. The financial year 2010-11 witnessed a very difficult trade
conditions due to the following reasons:
A) Cotton
There has been
unprecedented rise in the cotton prices during the cotton season started from
October, 2010 and the cotton prices have gone up by more than 100% as compared
to the previous cotton season. Cotton, often referred as “White Gold” has
recorded the historic highest prices. The Government of India has allowed
export of more than 15% of Cotton produced in
B) Electricity
The power cut in
Tamilnadu continued to the extent of 100% for 4 hours during 6 P.M. to 10 P.M.
and 30% during the rest of the hours, in addition to unannounced power
shutdowns. This has forced the Company to operate captive Gensets in order to
maintain the optimum utilization level. The power cost has increased by more
than 15% as compared to previous year. Timely decision taken by the Directors
to install Windmills in previous years and purchase of power from Third Party
have helped the Company to operate the Mills at optimum utilization level and
also helped the Company to tide over the power crisis.
C) Inflation and
Impact on Cost of borrowing
In order to
contain the inflation in
D) Cotton Yarn
Export brought under Quota System
The export of
cotton yarn was under Quota Raj till 1995. When the textiles and clothing were
brought into the mainstream under the WTO, the quota system was abolished and
export of yarn was allowed without any restriction.
The Domestic and
the International Yarn markets have started improving specifically after a long
spell of sluggishness witnessed due to Global Economic Crisis during the period
from 2008 to 2010. However, the Government of India has suddenly restricted the
export of Cotton Yarn during December, 2010 to March, 2011 and re-introduced
the Quota system. This has affected the Yarn Market both in Domestic as well as
Export, which resulted in sluggishness of yarn prices and yarn movements in
By implementing
various cost reduction measures and production of flexible count pattern with
more value added yarn, the Directors were able to achieve satisfactory results
in the current market scenario.
FINANCE
The Company has
availed working capital loan in foreign currency at a competitive rate of
interest and gained an amount of Rs.4.276 millions towards exchange
fluctuations. This gain is because of appreciation of rupee against dollar and
the foreign currency loans were repaid at the lower exchange rates.
EXPORTS
On the export
front during the year, they have made direct export of Cotton Yarn / Fabric for
a value of Rs.814.400 millions as against Rs.442.600 millions of the previous
year. The Directors are thankful to M/s. Mitsubishi Corporation, M/s. Doko
Spinning Company Limited, and M/s. Unitika Limited,
PROSPECTS FOR THE
CURRENT YEAR
The cotton prices
during cotton season 2010-11 are very volatile. The cotton prices which have
gone up too steeply during the peak cotton season have fallen suddenly during
May, 2011. As a result, the Yarn prices have also been crashed. Due to
sluggishness in garment/fabric market, the demand for yarn has come down
unexpectedly. The Government’s decision to re-introduce the Quota system for
export of cotton yarn is very unfortunate, which in turn has affected the
market share and profitability of the Indian Spinning Mills due to uncertain
Government Policies.
The increase in
wages, fuel prices and interest cost and the increase in the power cuts in
recent period definitely pose a challenge. While the cost of major inputs
increasing steeply, the yarn price has started declining due to decrease in
demand. The cumulative effect of the above factors would affect the performance
of the Company substantially. The Directors are therefore unable to predict the
profitability of the Company in the current year. However, the Company is
maintaining high standards of quality yarn, cost effective production and
stringent waste control measures. These measures strengthened the Company to
face the challenges in the current scenario.
WIND MILL
The Division has
generated 443 Lakhs Kwh as compared to 460 Lakhs Kwh of the previous year. The
income during the year from the Wind Mill Division was Rs.176.900 millions as
against Rs.168.700 millions of previous year. During the year, 11 Nos. of Wind
Electric Generators for an aggregate capacity 8.80 MW were purchased during
September, 2010. With this, the capacity of the Wind Mills has increased to
30.70 MW comprising of 34 Wind Electric Generators.
PLATINUM JUBILEE
The Company has
entered into its Platinum Jubilee year. Looking back, the Directors wish to
record the following milestones, crossed by the Company during its journey of
75 years.
·
Subject, was established by Shri. P.A.C. Ramasamy
Raja, Founder of the Ramco Group of Companies, in 1936 after his visit to
·
The Mill was declared open by Shri. V.V. Giri,
Honourable Labour Minister in the then
·
In the very first year of production, the Mill has
earned profits and a dividend of 5% was declared. The Mill has the proud record
of unbroken dividend payment during the
last 75 years.
·
In the year 1982, the Company imported Open End Spinning Machines for the first time in
·
In the year 1988, the Company celebrated its Golden Jubilee and the celebrations
were inaugurated by Dr. G.K. Devarajulu, the then Chairman of Lakshmi Machine
Works Limited. It was presided over by Shri G. Ramanujam, the then President,
INTUC and Shri. P.Chidambaram, Honourable Union Minster for Home affairs was
the Chief Guest of the Function.
·
In 1991, “Rajapalaiyam
Spintext” has been established as 100% Export Oriented Unit, first
of its kind in
·
The Ramco Group of Companies have celebrated the Birth Centenary of its Founder and Visionary
Shri. P.A.C. Ramasamy Raja on 24th April, 1994. The celebrations were
presided by Shri. R. Venkataraman, Former President of
·
In order to improve the Yarn Quality, the Company
has invested in Compact Spinning system from
·
In 2008, a state-of-the-art Spinning Mill has been
commissioned with advanced compact spinning system by Rieter, Switzerland with
fully automated link coners from Savio, one of the latest technologies
implemented for the First time in
India and fully imported back process machineries to produce Yarn, which is
untouched by hands.
·
Automatic Savio Open End Spinning Mill has been
established in Andhra Pradesh in the year 2008 with 1,800 Rotors.
·
The overall Spinning capacity of the Company is
1,25,792 Spindles and 3,816 Rotors.
CONTINGENT
LIABILITIES
|
Particulars |
As
on 31.03.2011 Rs.
in millions |
|
(i) Liability on Letter of Credit opened |
|
|
Capital Goods |
83.300 |
|
Others |
39.600 |
|
(ii) Estimated amount of contracts remaining to be executed on capital
account not provided |
172.000 |
|
(iii) Liability on guarantees given by the bankers |
3.600 |
|
(iv) Liability on guarantees given to the bankers |
6139.900 |
FIXED ASSETS
·
Land
·
Buildings
·
Plant and Machinery
·
Electrical Machinery
·
Furniture and Office
Equipments
·
Vehicles
·
Loose Tools
WEB DETAILS
BUSINESS DESCRIPTION
Subject is an India-based company operates in three
segments: Textiles, Tissue Culture and Power generation from Wind Mills. During
the fiscal year ended March 31, 2011 (fiscal 2011), the Company had an
installed capacity of 1,25,792 of spindles; 3,816 of rotors, and 31 megawatts
of wind mills. During fiscal 2011, it produced 1,37,28,874 of yarn and 443
lakhs kilowatt hour of power from wind mills, respectively. The Company’s
plants are located in Tamil Nadu, Andhra Pradesh and Karnataka. Its products
include ring yarn (Ne), compact yarn (Ne), elitwist compact yarn (Ne),TFO
doubled yarn (Ne), gassed yarn (Ne), slub and multicount yarn (Ne), model /
tencel yarn (Ne), oe yarn (Ne), and organic cotton yarn. It exports cotton yarn
to
BOARD OF DIRECTORS
Mr. A. V.
Dharmakrishnan - Non-Executive Director
Shri. A.V. Dharmakrishnan, B.Com, ACA., is Non-Executive Director of
subject. He is a Chartered Accountant, started his carrier in 1982 with Madras
Cements Limited. He is presently holding the position of Executive - Director
(Finance) at Madras Cements Limited. He has specialized knowledge and
experience in Finance and Taxation matters. He is presently a Director in the
following companies: On-Time Transport Company Limited and Ramco Systems
Limited.
Dr. K. T. Krishnan
- Independent Non-Executive Director
Dr. K.T. Krishnan, M.D., F.C.C.P. is Independent Non-Executive Director
of subject. He is Managing Director of Thanjavur Spinning Mill Limited. He has
been on the Board of subject. since 1986. He is a Member of the Audit
Committee, Remuneration Committee. He is also a Director of Sri Vishnu Shankar
Mill Limited, Sandhya Spinning Mill Limited, Sudarsanam Investments Limited.
Mr. N.K.
Ramasuwami Raja - Independent Non-Executive Director
Shri. N.K. Ramasuwami Raja, B.Sc., is Independent Non-Executive Director
of subject. He holds a degree in Science. He has been the Board of subject.
since 1980. He is a Member in the Audit Committee, Remuneration Committee and
Share Transfer Committee. He is Managing Director of Madras Chipboard Limited.
and he is also a Director in the following Companies: Sri Harini Textiles
Limited and Ramco Agencies Private Limited.
Mr. P.S. Jaganatha
Raja - Independent Non-Executive Director
Shri. P.S. Jaganatha Raja is Independent Non-Executive Director of
subject since 1982. He is a Member of Audit Committee, Remuneration Committee.
Mr. P. R.
Venketrama Raja - Non-Executive Director
Shri. P. R. Venketrama Raja, B.Tech., M.B.A., is Non-Executive Director
of subject. He has a Bachelor Degree in Chemical Engineering from
Education
M Business Administration,
B Chemical Engineering,
Mr. S. S.
Ramachandra Raja - Non-Executive Director
Shri. S. S. Ramachandra Raja, B.Sc., is Non-Executive Director of
subject. He holds a Degree in Science. He has been on the Board of subject.
since 1992. He is a Member in the Share Tranfer Committee and Investor
Grievances Committee He is also a Director in the following Companies: Ramco
Industries Limited, Sri Vishnu Shankar Mill Limited, Ramco Systems Limited, Sri
Sethu Ramasamy Farms Private Limited and Ramco Management Private Limited.
Education
Science,
Mr. N.R.K.
Venkatesh Raja - Independent Non-Executive Director
Shri. N.R.K. Venkatesh Raja, B.E., is Independent Non-Executive Director
of subject. He holds a Degree in Engineering. He has been on the Board of
subject. since 1986. He is also a Director in the following Companies: Sri
Yennarkey Services Limited and Sri Vidhiya Spinners Private Limited.
PRESS RELEASES
RAJAPALAYAM
MILLS ALLOTS EQUITY SHARES ON PREFERENTIAL BASIS
ALLOTMENT
OF EQUITY SHARES ON PREFERENTIAL BASIS
India, November 28 -- Rajapalayam Mills Limited has informed
BSE that the Sub-Committee of the Board of Directors in its Meeting held on
November 25, 2011 has allotted 3,51,000 Equity Shares of Rs.10/- each @
Rs.234/- per Share to Shri. P R Ramasubrahmaneya Rajha, Chairman on
Preferential basis.
RAJAPALAYAM
MILLS ACQUIRES 60,00,000 EQUITY SHARES OF RSPL
ACQUISITION
OF SHAREHOLDING
India, November 15 -- Rajapalayam Mills Limited has informed
the Exchange that, subsequent to the approval of the members at the
Extra-ordinary General Meeting held on 9th November 2011 to invest in the
Equity shares of Rajapalayam Spinners Private Limited (RSPL), the Company has
acquired the entire 60,00,000 Equity shares of RSPL from the shareholders of
RSPL on 14th November 2011 at the rate of Rs.8.76 per share. The Company has
further informed that, by virtue of this acquisition of Shares, RSPL has now
become a wholly owned Subsidiary of the Company.
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.50.67 |
|
|
1 |
Rs.77.72 |
|
Euro |
1 |
Rs.64.63 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
53 |
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.