MIRA
INFORM REPORT
|
Report Date : |
05.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
K.P.R. MILL LIMITED |
|
|
|
|
Formerly Known
As : |
K.P.R. COTTON MILLS PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
9, Gokul Buildings, 1st Floor, A.K.S. Nagar, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
19.03.2003 |
|
|
|
|
Com. Reg. No.: |
181-010518 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 526.829 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TZ2003PLC010518 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBK04050E |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCK0893N |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Textiles. |
|
|
|
|
No. of Employees
: |
9116 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (63) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 24000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having fine track. Trade relations
are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
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 : |
9, |
|
Tel. No.: |
91-422-2479835 |
|
Fax No.: |
91-422-2470159 |
|
E-Mail : |
|
|
Website : |
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|
|
|
|
Corporate Office : |
270 J, Periyar Colony, Anupparpalayam, Tirupur – 641652 , Tamilnadu,
India |
|
Tel. No.: |
91-421-2487081-86/ 2487051 (6 Lines) |
|
Fax No.: |
91-421-2470780/ 2477254 |
|
E-Mail : |
DIRECTORS
(AS ON 31.03.2011)
|
Name : |
Mr. K.P. Ramasamy |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. K.P.D. Sigamani |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. P. Natraj |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. C. R. Anandakrishan |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Shujaat Khan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K.N.V. Ramani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M.J. Vijayaraaghavan |
|
Designation : |
Director |
|
Date of Birth/Age : |
03.08.1932 |
|
|
|
|
Name : |
Mr. G.P. Muniappan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. K. Sabapathy |
|
Designation : |
Director |
|
Date of Birth/Age : |
04.06.1955 |
|
|
|
|
Name : |
Mr. A.M. Palanisamy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. Thirumurthy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. Sekar |
|
Designation : |
Whole Time Director |
KEY EXECUTIVES
|
Name : |
Mr. P. Kandaswamy |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. J. S. Kumar |
|
Designation : |
Vice President (Finance) |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.03.2012)
|
Names of Category |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
27,030,000 |
71.73 |
|
|
1,038,000 |
2.75 |
|
|
28,068,000 |
74.48 |
|
|
|
|
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
28,068,000 |
74.48 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
378,537 |
1.00 |
|
|
30,390 |
0.08 |
|
|
953 |
-- |
|
|
3,347,185 |
8.88 |
|
|
3,757,065 |
9.97 |
|
|
|
|
|
|
|
|
|
|
1,265,715 |
3.36 |
|
|
|
|
|
|
|
|
|
|
1,225,150 |
3.25 |
|
|
1,681,199 |
4.46 |
|
|
|
|
|
|
1,685,763 |
4.47 |
|
|
9,127 |
0.02 |
|
|
64,685 |
0.17 |
|
|
2 |
-- |
|
|
1,611,949 |
4.28 |
|
|
5,857,827 |
15.55 |
|
|
|
|
|
Total Public
Shareholding (B) |
9,614,892 |
25.52 |
|
|
|
|
|
Total (A)+(B) |
37,682,892 |
100.00 |
|
|
|
|
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
37,682,892 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturer of Textiles. |
||||||||
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|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Units |
Installed Capacity |
|
Yarn |
Spindles |
220176 |
|
|
|
|
|
Particulars |
Unit |
Production/ Purchases |
|
Garment |
Lakh Pieces |
149.64 |
|
Yarn |
Metric Tonne |
44897.20 |
|
Fabric |
Metric Tonne |
945.498 |
|
Dyed Fabric |
Metric Tonne |
-- |
|
Waste |
Metric Tonne |
8476.23 |
GENERAL INFORMATION
|
No. of Employees : |
9116 (Approximately) |
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Bankers : |
·
Bank of ·
Bank of ·
Corporation Bank ·
IDBI Bank Limited ·
Oriental Bank of Commerce ·
State Bank of ·
State Bank of ·
State Bank of Travancore ·
The Karnataka Bank Limited ·
United Bank of |
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Facilities : |
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|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
41, Shanmuga Manram, Race Cource, Coimbatore-641 018, |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Mr. A Vetrivel B.Sc. F.C.A Chartered Accountant |
|
Address : |
1/1, Seth Narayan Das Layout, |
|
|
|
|
Enterprises Owned or Significantly influenced by key management
personnel/ directors or their relatives : |
·
K.P.R. Developers Limited |
|
|
|
|
Subsidiaries : |
·
Quantum Knits Private Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs. 400.000 Millions |
|
1500000 |
7% Redeemable Cumulative Non-Convertible Preference Shares |
Rs.100/- each |
Rs. 150.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 550.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
37682892 |
Equity Shares |
Rs.10/- each |
Rs. 376.829
Millions |
|
1500000 |
7% Redeemable Cumulative Non-Convertible Preference Shares |
Rs.100/- each |
Rs. 150.000
Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 526.829 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
526.829 |
376.829 |
376.829 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5424.678 |
4982.478 |
4722.347 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5951.507 |
5359.307 |
5099.176 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6614.775 |
4391.955 |
5098.868 |
|
|
2] Unsecured Loans |
121.520 |
158.248 |
189.980 |
|
|
TOTAL BORROWING |
6736.295 |
4550.203 |
5288.848 |
|
|
DEFERRED TAX LIABILITIES |
418.753 |
534.007 |
395.735 |
|
|
|
|
|
|
|
|
TOTAL |
13106.555 |
10443.517 |
10783.759 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8143.583 |
7690.011 |
8205.807 |
|
|
Capital work-in-progress |
1774.521 |
254.984 |
3.005 |
|
|
|
|
|
|
|
|
INVESTMENT |
1.000 |
1.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2668.444
|
1226.463
|
2070.366
|
|
|
Sundry Debtors |
1347.377
|
1059.204
|
1164.476
|
|
|
Cash & Bank Balances |
357.382
|
518.917
|
462.324
|
|
|
Other Current Assets |
46.811
|
137.887
|
229.443
|
|
|
Loans & Advances |
516.496
|
787.034
|
530.678
|
|
Total
Current Assets |
4936.510
|
3729.505
|
4457.287
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
1176.495
|
633.302
|
1541.157
|
|
|
Other Current Liabilities |
433.998
|
357.002
|
250.391 |
|
|
Provisions |
138.566
|
241.679
|
90.792
|
|
Total
Current Liabilities |
1749.059
|
1231.983
|
1882.340
|
|
|
Net Current Assets |
3187.451
|
2497.522
|
2574.947
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
13106.555 |
10443.517 |
10783.759 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9656.309 |
7885.024 |
7181.775 |
|
|
|
Other Income |
933.143 |
441.417 |
320.873 |
|
|
|
TOTAL (A) |
10589.452 |
8326.441 |
7502.648 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase/Decrease in Stock |
(515.217) |
(26.648) |
13.550 |
|
|
|
Cost of Goods Consumed |
7052.354 |
5173.031 |
5102.949 |
|
|
|
Manufacturing and Direct Expenses |
690.008 |
633.245 |
576.981 |
|
|
|
Salaries, Wages and Other Employee Benefits |
564.302 |
464.452 |
493.309 |
|
|
|
Administrative and Other Expenses |
154.565 |
264.087 |
55.464 |
|
|
|
Selling and Distribution Expenses |
154.833 |
152.118 |
134.162 |
|
|
|
TOTAL (B) |
8100.845 |
6660.285 |
6376.415 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
2488.607 |
1666.156 |
1126.233 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
311.560 |
271.590 |
383.689 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2177.047 |
1394.566 |
742.544 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1256.754 |
704.973 |
559.544 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
920.293 |
689.593 |
183.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
207.700 |
187.783 |
81.966 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
712.593 |
501.810 |
101.034 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1974.175 |
1764.225 |
1758.943 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
71.259 |
50.181 |
7.578 |
|
|
|
Preference Dividend |
6.156 |
0.000 |
0.000 |
|
|
|
Tax on Preference Dividend |
1.022 |
0.000 |
0.000 |
|
|
|
Interim Dividend |
113.049 |
150.732 |
0.000 |
|
|
|
Tax on Interim Dividend |
18.776 |
25.035 |
0.000 |
|
|
|
Tax on Proposed Dividend |
113.050 |
56.524 |
75.366 |
|
|
|
Tax on Dividend |
18.340 |
9.388 |
12.808 |
|
|
BALANCE CARRIED
TO THE B/S |
2345.116 |
1974.175 |
1764.225 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of goods at FOB value |
1595.834 |
1956.731 |
1800.873 |
|
|
TOTAL EARNINGS |
1595.834 |
1956.731 |
1800.873 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
211.802 |
1395.658 |
176.985 |
|
|
|
Stores & Spares |
36.944 |
33.129 |
20.922 |
|
|
|
Machinery |
272.838 |
57.631 |
144.259 |
|
|
TOTAL IMPORTS |
521.584 |
1486.418 |
342.166 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
18.72 |
13.32 |
2.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4TH
Quarter |
|
Net Sales |
2987.160 |
3196.330 |
2675.700 |
3263.600 |
|
Total Expenditure |
2552.330 |
2738.690 |
2251.300 |
2809.400 |
|
PBIDT (Excl OI) |
434.830 |
457.640 |
424.400 |
454.200 |
|
Other Income |
12.110 |
11.840 |
13.200 |
32.900 |
|
Operating Profit |
446.940 |
469.480 |
437.600 |
487.100 |
|
Interest |
62.340 |
119.690 |
131.600 |
154.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
384.600 |
349.790 |
306.000 |
332.300 |
|
Depreciation |
232.290 |
246.720 |
255.300 |
301.900 |
|
Profit Before Tax |
152.310 |
103.070 |
50.700 |
30.400 |
|
Tax |
50.200 |
(1.450) |
(0.600) |
(24.600) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
102.110 |
104.510 |
51.300 |
55.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
102.110 |
104.510 |
51.300 |
55.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.73
|
6.03
|
1.35 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.53
|
8.75
|
2.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.04
|
6.04
|
1.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.15
|
0.13
|
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.43
|
1.08
|
1.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.82
|
3.03
|
2.37 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
1. Year of Establishment |
Yes |
|
2. Locality of the firm |
Yes |
|
3. Constructions 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 |
Yes |
|
21. Market information |
------ |
|
22. Litigations that the firm / promoter involved |
------ |
|
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 |
REVIEW OF OPERATIONS
With constant growth in all its activities, the Company could cross a milestone of achieving more than Rs.10000.000 Millions Turnover during the financial year. With operations at 90 % capacity utilization, the Yam Division witnessed a strong traction in its revenues. Similar trends prevailed in Garment and Processing Divisions too. The Companies Export Revenue increased by 28% over last year to Rs.2998.800 Millions, of which around 94% contributed by Garment Division. The Company to attain commendable total revenue of Rs.11095.600 Millions, @ 33% over last years Rs.8370.900 Millions registering an enhanced profitability with EBITDA for Current Year Rs.2514.500 Millions, from Rs.1671.700 Millions in previous year, an increase of 50%. Net Profit increased to Rs.722.100 Millions in current year from Rs.504.400 Millions of previous year. Overall improvement in Capacity Utilisation and the encouraged market conditions enabled the achievement.
EXPANSION AND
MODERNIZATION
The ongoing expansion and modernization projects undertaken by the Company comprise of:
COMPACT SPINNING
EXPANSION
As reported last
year the Company expands in high margin, high value-add compact yarn
segment. Addition of 1,03,680 spindles with
a total outlay of Rs.3100.000 Millions at Karumathampatti utilising the Term
Loan assistance from Banks and the unutilized IPO Funds is in progress. Around
80% of the civil construction work that was commenced during May 2010, has been
completed. 34560 spindles have been installed, in which 10080 spindles were
already put in to operation. Commercial production commenced during April 2011
which is expected to be fully operational by September 2011. Entire Term Loan
availed is eligible for TUF subsidy.
WINDMILL
Added 25 Wind Mills of 21.25 MW capacity to the present 39.82 MW thereby enhancing its Wind Power generation capacity to 61.07 MW to support its Compact Spinning capacity Expansion. The strategic approach of supplementing all its expansion activities with simultaneous wind energy capacity addition:
1. Reassures KPR s ability to meet its power
requirements through wind energy
2. Reduces its Power cost significantly
3. Reiterates its commitments towards Green
initiatives
MODERNISATION AT SATHYAMANGALAM MILL
Through Modernisation cum Expansion plan at an estimated cost of Rs.384.500 Millions at Sathyamangalam, the total Spindles envisaged are 51,456, out of which 21,216 Spindles have been erected during March 2011 and the balance is expected to be completed in a phased manner by October 2011.
MELANGE YARN
SPINNING
Enthused by the
domestic and export market demand, the Company has initiated. Installation of 16,128 Spindles of Melange
Yam capacity at Karumathampatti plant considering the cost and location benefits.
The total cost of the expansion is estimated at Rs 177.200 Millions and average
cost per Spindle will be Rs11,000 which has leverage of economics. The unique
features of Melange Yam are the natural fiber with excellent treatment enabling
coziness, softness and lively color.
Besides meeting 25% of captive consumption it shall cater to the needs
of market. Around 20% Civil work is
completed and the project is expected to be fully operational by January 2012
in a phased manner.
After completion of
the aforesaid projects the total spinning capacity will rise to 3,53,088
spindles from the existing 212,064 (up 66%)
FUTURE OUTLOOK:
The Company
continues to accelerate growth through its focused approach in higher value-
add segments of the textile value chain by expansion and modernisation. Further, to maintain its self-reliance in
power requirements, additional wind power capacity is added. These new endeavors promises sustained growth
in the years to come enhancing its profitability and returns.
Contrary to the
surge prevailed in most part of the financial year, the prices of cotton
vis-a-vis yarn are witnessing sharp decline. The Company believes that this
short term trend would bounce back once the prices stabilize.
With concerted
efforts to move deeper into premium margin segments and strong cost
competitiveness, the Company expects to continue to deliver consistent growth
and performance.
MANAGEMENT
DISCUSSION AND ANALYSIS
Financial Year
2011 was a landmark year for the Company in terms of financial performance. The
continued growth momentum in the sector, driven by robust domestic demand,
helped your Company cross the coveted mark of Rs.10000.000 Millions in
revenues. Strong traction in sales across all key product segments has significantly
enhanced their profitability and returns during the year.
The Company
witnessed over 32% growth in its total operating income over last year, posting
highest ever increase in revenues since listing in 2007. Operating profit
margin -which we define as earnings before interest, tax, depreciation and
amoritsations (EBITDA) divided by net sales -expanded by 270 basis points to
22.70% and net margin expanded by 50 basis points to 6.50% during the fiscal
year ending March 2011. The Company increased its focus on yam segment in order
to capitalize on the high demand conditions prevailing for yam in both domestic
and export markets. This increased contribution from yam to 55% in FY11 from
51% in FY10. Going ahead, the ongoing expansion in 100% compact yarn spinning
capacity, to be fully commissioned by September 2011, would further accelerate
growth and profitability of the company.
INDUSTRY OVERVIEW AND DEVELOPMENTS
lndian textile
industry is the most important industrial segment for the Country. It is the second
largest provider of employment after agriculture. It contributes about 4% to
the country's GDP, 14% to the industrial production and 17% to the export
earnings.
The industry
witnessed better growth momentum during fiscal year ended March 2011. It is
expected to register double digit growth of +10% during FY12 to reach ~$78bn in
size, As per Technopak estimates, the industry has the potential to grow at
over 11 % CAGR to reach a size of about $134bn by 2015. The main drivers of
growth are improving exports and domestic demand on the back of increasing
population, increasing income levels, rapid urbanization, improving
demographics and increasing penetration of retailers into smaller cities.
Further, Government initiatives such as Technology Up gradation Fund Scheme
(TUFS), Technology Mission on Cotton (TMC), excise and duty sops etc, would
continue to support development of the sector.
BUSINESS OVERVIEW
The Company is a textile company with vertically integrated operations in South India spread across the entire textile value chain from fibre to fashion. Company has a total manufacturing capacity of 220176 spindles (56,200MT of yarn making); 203 knitting machines (21,000MT p.a, of fabric production); processing facility to process 23MT of fabric per day; and 1,750 sewing machines with approximately 63mn pieces of readymade knitted apparel (51mn pieces in-house operating double shift and 12mn outsourced). 65 Windmills with total Power Generation Capacityof61.07 MW. Our six manufacturing facilities are spread in the Tirupur-Coimbatore belt regarded as one of Asia's largest apparel manufacturing clusters providing close proximity to buyers.
CONTINGENT
LIABILITIES NOT PROVIDED FOR IN THE ACCOUNTS: (AS ON 31.03.2011)
a. The Company is in receipt of a demand of Rs.8.150 millions from the
Indian Bank towards prepayment charges. The same has been contested in writ
filed before the High Court of judicature at
b. The Company has issued Bank Guarantee amounting to Rs.7.959 millions
in favour of EPCG and Bank Guarantee amounting to Rs. 0.500 Million in favour
Tamilnadu Pollution Control Board and Bank Guarantee amounting to Rs. 14.850
Millions in favour of Madras Aluminium Company Limited. The company issued
Corporate Guarantee amounting to Rs.600.000 millions towards Working Capital
facility of the wholly owned subsidiary.
c. The Company has an Export obligation of Rs.7667.242 millions to be
completed upto 2017-18.The duty implication involved is Rs.958.405 millions.
d. At the request of the Company the Bankers have established Letter of
Credits in favour of the suppliers of the Company as under:
Foreign Letter of Credits - Rs.684.475 millions.
e. The Company has discounted sale bills amounting to Rs.92.251 millions
with banks.
f. The Company has obtained a stay order at High Court of Madras
restraining TNEB from Collection of tax under
Tamilnadu Tax on Consumption and Sale of Electricity Act, in respect of
maximum demand charges. The estimated Contingent liability will be Rs.7.409
millions.
g. Income Tax pending appeals, aggregate Tax Disputed Rs.8.869 millions.
Central Excise pending appeals, aggregate Duty Disputed Rs.0.597 million.
Service tax pending appeals, Tax disputed Rs.2.751 millions.
h. Estimated Amount of contracts on capital account remaining to be
executed (net of advances) aggregate to Rs.1897.708 millions.
FIXED ASSETS:
·
Land
·
·
Buildings
·
Plant and Machinery
·
Wind Mill
·
Electrical
·
Furniture and Fixtures
·
Computers and Accessories
·
Vehicles
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND YEAR ENDED 31ST MARCH 2012
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Year Ended |
|||
|
|
|
31.03.2012 (Unaudited) |
31.12.2011 (Unaudited) |
31.03.2012 (Unaudited) |
||
|
1. |
Net Sales/Income
from Operations |
3263.600 |
2575.700 |
11981.400 |
||
|
|
|
|
|
|
||
|
2. |
Expenditure |
|
|
|
||
|
|
a) Cost of Materials Consumed |
2141.500 |
1701.500 |
8100.000 |
||
|
|
b) Change in inventories of finished goods, work in progress and stock
in trade |
2.900 |
124.600 |
410.200 |
||
|
|
c) Employees Cost |
169.300 |
157.700 |
624.300 |
||
|
|
d) Depreciation |
301.900 |
255.300 |
1036.200 |
||
|
|
e) Other Expenditure |
495.700 |
267.500 |
1073.100 |
||
|
|
f) Total |
3111.300 |
2506.600 |
11243.800 |
||
|
|
|
|
|
|
||
|
3. |
Profit From Operations before Other Income, Interest and Exceptional
Items (1-2) |
152.300 |
169.100 |
737.600 |
||
|
|
|
|
|
|
||
|
4. |
Other Income |
32.900 |
13.200 |
67.200 |
||
|
|
|
|
|
|
||
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
185.200 |
182.300 |
804.800 |
||
|
|
|
|
|
|
||
|
6. |
Interest |
154.800 |
131.600 |
468.500 |
||
|
|
|
|
|
|
||
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
30.400 |
50.700 |
336.300 |
||
|
|
|
|
|
|
||
|
8. |
Exceptional Items |
-- |
-- |
-- |
||
|
|
|
|
|
|
||
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
30.400 |
50.700 |
336.300 |
||
|
|
|
|
|
|
||
|
10. |
Tax Expense |
(24.600) |
(0.600) |
23.600 |
||
|
|
|
|
|
|
||
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
55.000 |
51.300 |
312.700 |
||
|
|
|
|
|
|
||
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
||
|
|
|
|
|
|
||
|
13. |
Net Profit for the period (11-12) |
55.000 |
51.300 |
312.700 |
||
|
|
|
|
|
|
||
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
376.800 |
376.800 |
376.800 |
||
|
|
|
|
|
|
||
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
||
|
|
|
|
|
|
||
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
||
|
|
a) Basic and diluted EPS before extraordinary items |
1.14 |
1.36 |
7.98 |
||
|
|
b) Basic and diluted EPS after extraordinary items |
1.14 |
1.36 |
7.98 |
||
|
|
|
|
|
|
||
|
17. |
Public
Shareholding |
|
|
|
||
|
|
-Number of Shares |
9614892 |
9614892 |
9614892 |
||
|
|
- Percentage of Shareholding |
25.52% |
25.52% |
25.52% |
||
|
|
|
|
|
|
||
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
||
|
|
a) Pledged/Encumbered |
|
|
|
||
|
|
- Number of Shares |
Nil |
Nil |
Nil |
||
|
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
Nil |
||
|
|
- Percentage of Shares (as a % of the Total Share Capital of
the Company) |
Nil |
Nil |
Nil |
||
|
|
|
|
|
|
||
|
|
b)
Non Encumbered |
|
|
|
||
|
|
- Number of Shares |
28068000 |
28068000 |
28068000 |
||
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100% |
100% |
100% |
||
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
74.48% |
74.48% |
74.48% |
||
|
|
|
|
|
|
||
|
B |
PARTICULARS
|
Beginning
|
Received
|
Disposed
off |
Remaining
Unresolved |
|
|
|
Investor complaints for the quarter ended 31.03.2012 |
Nil |
2 |
2 |
Nil |
|
NOTES:
1.
The above Unaudited
Financial Results have been reviewed by Audit Committee and taken on record and
approved by the Board of Directors at its meeting held on 14.05.2012. 'Limited
Review' of the results has been carried out by Statutory Auditors.
2.
The Company has only one business segment in
operation (i.e.) Textile business. Hence, segment wise reporting is not
applicable.
3.
Earnings Per Share (EPS) is calculated as per
Accounting Standard 20 after adjustment for dividend on Cumulative Preference
Shares and Tax thereon (Rs. 12.203 Millions).
4.
The Board has declared an Interim Dividend of Rs.
3/- per share (30%) for the year 2011-12 and the Record Date for the
purpose is 21.05.2012.
5.
The Company exercised the option provided by The
Government of India, Ministry of Corporate Affairs vide Notification
No.G.S.R.913 (E) dated
December 29, 2011, amending the Companies (Accounting Standard) Rules, 2006 in
respect of the exchange differences arising on long-term foreign currency
monetary items. The unamortized net exchange difference on account of the above
is a Net Loss of Rs. 125.600 Millions as at March 31, 2012.
(Previous Quarter Ended 31.12.2011 Net Loss Rs. 156.300 Millions; Quarter Ended
and Year Ended 31.03.2011 Net Gain / (Loss) - Nil).
6.
Figures have been regrouped I recasted wherever
necessary to make them comparable.
AS PER WEBSITE
Origins
Subject Journey into textiles began in the year 1984, in 1989, the group
ventured into garment exports. Company is a garment exporter as well as a
largest vertically integrated apparel company, engaged in manufacturing and
marketing readymade knitted garments, knitted fabrics and cotton yarn.
KPR Cotton Mills Private Limited, now known as KPR Mill Limited, was
originally incorporated on March 19, 2003.
In order to rationalize operations and better leverage capacities, KPR
Cotton Mills Private Limited purchased KPR Knits, a proprietorship concern as a
going concern with effect from April 1, 2005.
Subject and KPR Spinning Mill Private Limited were consolidated into KPR
Cotton Mills Private Limited through a merger process as approved by the High
Court of Madras on August 19, 2006, to take effect from April 1, 2005.
Consequent to the merger, the company’s name was changed from KPR Cotton Mills
Private Limited to KPR Mills Limited.
Subject is managed by well- qualified and experienced management team in
the apparel and textile industry with a collective experience of over 35 years
and has been instrumental for the sustained growth of the Company which is
illustrated by doubling of the capacity every two years since fiscal 2001. The
management team is ably supported by an experienced and technically qualified
execution team and by professionally qualified and experienced Directors on the
Board.
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.55.51 |
|
|
1 |
Rs.85.29 |
|
Euro |
1 |
Rs.68.86 |
INFORMATION DETAILS
|
Information
Gathered by : |
-- |
|
|
|
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
63 |
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.