MIRA
INFORM REPORT
|
Report Date : |
06.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
PRECOT MERIDIAN LIMITED (w.e.f. 28.12.2006) |
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|
|
|
Formerly Known
As : |
PRECOT MILLS LIMITED |
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|
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Registered
Office : |
Post Box No. 7161 and 737 Green Fields, |
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Country : |
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|
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
02.06.1962 |
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|
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Com. Reg. No.: |
18-001183 |
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|
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Capital
Investment/ Paid-up Capital: |
Rs.69.500 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TZ1962PLC001183 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBP03135G |
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|
|
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PAN No.: [Permanent Account No.] |
AABCP3038K |
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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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|
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Line of Business
: |
Manufacturer and Exporter of Combed Cotton Yarn and Polyester sewing
threads. |
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|
|
|
No. of Employees: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
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 270000 |
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established company having fine track. Financial
position of the company appears to be sound. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES:
Any query related to this report can be made on
e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
India |
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/ Corporate Office : |
Post Box No. 7161 and 737 Green Fields, Puliakulam Road, Coimbatore
-641045, Tamilnadu, India |
|
Tel. No.: |
91-422-4321100 |
|
Fax No.: |
91-422-4321200 |
|
E-Mail : |
Yarn – Domestic : sales@precot.com Yarn – Exports: exports@precot.com Fabric : wvg@precot.com Investors :
secretary@precot.com Careers : hr@precot.com |
|
Website : |
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Factory : |
Unit- M, Pollachi, Tamilnadu Unit- W, Pollachi, Tamilnadu Unit- P, Perundurai,, Tamilnadu Unit- K, Kolar, Karnataka |
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|
Bangalore Market Office : |
Tirupur Depot Mumbai Depot Delhi Depot Kolkata Depot |
DIRECTORS
As on: 19.08.2011
|
Name : |
Mr. D Sarath Chandran |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/Age : |
65 Years |
|
Qualification : |
B Sc (Hons), MBA |
|
Experience : |
39 Years |
|
|
|
|
Name : |
Mr. Ashwin Chandran |
|
Designation : |
Joint Managing Director |
|
Date of Birth/Age : |
36 Years |
|
Qualification : |
B Sc (Hons), MBA |
|
Experience : |
14 Years |
|
|
|
|
Name : |
Mr. Prashanth Chandran |
|
Designation : |
Executive Director |
|
Date of Birth/Age : |
30 Year |
|
Qualification : |
B.Engg |
|
Experience : |
6 Years |
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|
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|
Name : |
Mr. Jairam Vardaraj |
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Designation : |
Director |
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Name : |
Mr. A Ramkrishna |
|
Designation : |
Director |
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|
Name : |
Mr. C N Srivatsan |
|
Designation : |
Director |
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Name : |
Mr. M V Subraman |
|
Designation : |
Director |
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|
Name : |
Mr. Sumanth Ramamurthi |
|
Designation : |
Director |
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|
Name : |
Mr. Suresh Jagannathan |
|
Designation : |
Director |
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|
Name : |
Mr. Vijay Mohan |
|
Designation : |
Director |
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Name : |
Mr. Vijay Venkataswamy |
|
Designation : |
Director |
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Name : |
Mr. K. Ajit Kumar |
|
Designation : |
Director (Nominee of Exim Bank) |
KEY EXECUTIVES
|
Name : |
Mr. M R Siva Shankar |
|
Designation : |
Head - Finance and Accounts |
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|
|
|
Name : |
Mr. C Murugesh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
(a)
Individual/ Hindu Undivided Family |
3837101 |
55.21 |
|
(b)
Central Govt./ State Govt. |
- |
- |
|
(c)
Bodies Corporate |
- |
- |
|
(d)
Financial Institutions / Banks |
- |
- |
|
(e)
Any other (specify) |
- |
- |
|
|
3837101 |
55.21 |
|
|
|
|
|
Individual/ (Non- resident individuals/ |
- |
- |
|
(a)
Foreign individuals) |
- |
- |
|
(b)
Bodies Corporate |
- |
- |
|
(c)
Institutions |
- |
- |
|
(d)
Any other (specify) |
- |
- |
|
Sub Total (A) (2) |
NIL |
NIL |
|
Total shareholding of Promoter and Promoter Group (A) |
|
|
|
Group (A) (1)+ (A) (2) |
3837101 |
55.21 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
(a)
Mutual Funds / UTI |
158592 |
2.28 |
|
(b)
Financial Institutions / Banks |
750 |
0.01 |
|
(c)
Central Govt./ State Govt. |
- |
- |
|
(d)
Venture Capital Fund |
- |
- |
|
(e)
Insurance Companies |
- |
- |
|
(f)
Foreign Institutional Investor |
167 |
0.00 |
|
(g)
Foreign Venture Capital Investor |
- |
- |
|
(h)
(h) Any other (specify) |
- |
- |
|
|
159509 |
2.30 |
|
|
|
|
|
|
351725 |
5.06 |
|
|
|
|
|
|
1969675 |
28.34 |
|
|
578101 |
8.32 |
|
(c) Any Others (Specify) |
|
|
|
i.
Clearing Member |
2898 |
0.04 |
|
ii.
Foreign Company |
|
|
|
iii.
Market Maker |
361 |
0.01 |
|
iv.
Foreign National |
|
|
|
NRI (Repatriate) |
10002 |
0.14 |
|
NRI (Non- Repatriate) |
5979 |
0.09 |
|
v.
OCBs |
|
|
|
vi.
HUF |
34649 |
0.50 |
|
|
2953390 |
42.49 |
|
Total Public
shareholding (B)=(B) (1)+(B) (2) |
3112899 |
44.79 |
|
Total (A)+(B) |
6950000 |
100.00 |
|
© Shares held by Custodians and against which Depository Receipts have
been issued |
- |
- |
|
Grant Total
(A)+(B)+(C) |
6950000 |
100.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs.0.100 millionBUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Combed Cotton Yarn and Polyester Sewing
Threads. |
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Products : |
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PRODUCTION STATUS: (31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Spindles |
Nos. |
NA |
218208 |
|
Rotors |
Nos. |
NA |
1632 |
|
Looms |
Nos. |
NA |
117 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
ICICI Bank, Green Field, Coimbatore, India |
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Facilities : |
(Rs.
In Millions)
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Banking Relations
: |
-- |
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Auditors 1: |
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|
Name : |
M/s. KSG Subramanyam and Company Chartered Accountants |
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|
|
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Auditors 2: |
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|
Name : |
M/s Haribhakti and Company Chartered Accountants |
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Subsidiaries Company : |
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CAPITAL STRUCTURE
After: 19.08.2011
Authorised Capital: Rs.90.000 Millions
Issued, Subscribed & Paid-up Capital: Rs.74.750 Millions
As on: 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Share |
Rs.10/- each |
Rs.90.000 Millions |
|
|
|
|
|
Issued & Subscribed:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7500000 |
Equity Share |
Rs.10/- each |
Rs.75.000 Millions |
|
|
|
|
|
Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
6950000 |
Equity Share |
Rs.10/- each |
Rs.69.500 Millions |
|
|
|
|
|
Note:
a) 2625000 equity shares of Rs.10 each have been issued as fully paid-up bonus shares by capitalisation of reserves
b) 550000 equity shares of Rs. 10 each were bought back in July 2002
c) 1500000 Equity shares of Rs.10 were issued consequent to merger of Meridian Industries Ltd with the company
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 |
69.500 |
69.500 |
69.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1585.466 |
1390.354 |
1173.948 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1654.966 |
1459.854 |
1243.448 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3537.660 |
2233.035 |
2170.350 |
|
|
2] Unsecured Loans |
349.464 |
28.393 |
30.284 |
|
|
TOTAL BORROWING |
3887.124 |
2261.428 |
2200.634 |
|
|
DEFERRED TAX LIABILITIES |
194.932 |
166.157 |
188.699 |
|
|
|
|
|
|
|
|
TOTAL |
5737.022 |
3887.439 |
3632.781 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2181.257 |
2043.099 |
2332.131 |
|
|
Capital work-in-progress |
26.799 |
22.527 |
12.102 |
|
|
|
|
|
|
|
|
INVESTMENT |
346.487 |
386.616 |
296.866 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3153.901
|
1358.225
|
650.961
|
|
|
Sundry Debtors |
390.570
|
290.455
|
251.799
|
|
|
Cash & Bank Balances |
71.301
|
51.858
|
47.210
|
|
|
Other Current Assets |
43.724
|
88.106
|
69.785
|
|
|
Loans & Advances |
210.679
|
168.503
|
255.929
|
|
Total
Current Assets |
3870.175
|
1957.147 |
1275.684 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
324.520
|
196.198 |
99.933 |
|
|
Other Current Liabilities |
184.421
|
163.661 |
163.920 |
|
|
Provisions |
178.755
|
162.091 |
20.149 |
|
Total
Current Liabilities |
687.696
|
521.950 |
284.002 |
|
|
Net Current Assets |
3182.479
|
1435.197 |
991.682 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5737.022 |
3887.439 |
3632.781 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5747.172 |
4366.129 |
3789.634 |
|
|
|
Other Income |
52.539 |
33.593 |
107.689 |
|
|
|
TOTAL (A) |
5799.711 |
4399.722 |
3897.323 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw material consumed |
3431.609 |
2188.043 |
1967.178 |
|
|
|
Salaries and Wages |
516.172 |
424.778 |
357.998 |
|
|
|
Power and Fuel |
607.239 |
470.690 |
440.548 |
|
|
|
Stores |
222.754 |
183.043 |
162.118 |
|
|
|
Repairs and Maintenance |
290.857 |
239.036 |
191.385 |
|
|
|
Processing Charges |
72.239 |
25.999 |
23.044 |
|
|
|
Selling Expenses |
208.977 |
179.063 |
182.234 |
|
|
|
Administrative Expenses |
50.436 |
42.572 |
153.529 |
|
|
|
Increase/Decrease in Stock |
(456.172) |
(31.403) |
56.416 |
|
|
|
TOTAL (B) |
4944.111 |
3721.821 |
3534.450 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
LOSS BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
855.600 |
677.901 |
362.873 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
145.943 |
121.999 |
130.203 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
LOSS BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
709.658 |
555.902 |
232.670 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
269.565 |
279.166 |
299.175 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ LOSS
BEFORE TAX (E-F) (G) |
440.093 |
276.736 |
(66.505) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
114.075 |
119.558 |
20.631 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ LOSS
AFTER TAX (G-H) (I) |
326.018 |
157.178 |
(87.136) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
8.515 |
(8.141) |
78.995 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
200.000 |
100.000 |
0.000 |
|
|
|
Dividend |
69.500 |
34.750 |
0.000 |
|
|
|
Tax on Dividend |
11.275 |
5.772 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
53.758 |
8.515 |
(8.141) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods |
1173.671 |
949.609 |
942.721 |
|
|
|
Dividend on Foreign Subsidiary |
1.811 |
0.792 |
1.289 |
|
|
TOTAL EARNINGS |
1175.482 |
950.401 |
944.010 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
3.130 |
19.199 |
168.474 |
|
|
|
Stores & Spares |
37.093 |
4.812 |
19.937 |
|
|
|
Capital Goods |
7.100 |
0.000 |
26.406 |
|
|
TOTAL IMPORTS |
47.323 |
24.011 |
214.817 |
|
|
|
|
|
|
|
|
|
|
Earnings/Loss
Per Share (Rs.) |
46.91 |
22.62 |
(12.54) |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1360.000 |
1646.900 |
1329.400 |
|
Total Expenditure |
1333.600 |
1960.000 |
1315.000 |
|
PBIDT (Excl OI) |
26.400 |
(313.100) |
14.400 |
|
Other Income |
8.400 |
5.200 |
5.800 |
|
Operating Profit |
34.800 |
(307.900) |
20.200 |
|
Interest |
79.200 |
81.000 |
60.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(44.400) |
(388.900) |
(39.800) |
|
Depreciation |
69.000 |
72.700 |
77.100 |
|
Profit Before Tax |
(113.400) |
(461.600) |
(116.900) |
|
Tax |
0.000 |
(182.500) |
(37.700) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(113.400) |
(279.100) |
(79.200) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(113.400) |
(279.100) |
(79.200) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
5.62
|
3.57
|
(2.23) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.66
|
6.34
|
(1.75) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.27
|
6.92
|
(1.84) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27
|
0.19
|
(0.05) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.76
|
1.91
|
2.00 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.63
|
3.75
|
4.49 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Construction
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
Yes |
|
No.
of Employees |
No |
|
Name
of Person Contacted |
No |
|
Designation
of contact person |
No |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
No |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
No |
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
ECONOMIC OVERVIEW AND
INDUSTRY REVIEW
The year began with a distinctively positive industrial climate, which was a welcome relief after the set backs in previous years due to the global meltdown. Flow of credit from institutions both internally and externally had picked up and overall business sentiments remained positive. However, in view of the rising food inflation and the risk of broader inflationary expectations, the Reserve Bank of India hiked interest rates on several occasions. So finance costs has been dearer and the abundance of liquidity in the system has been curtailed. Inflation remains one of the biggest challenges for the government on the economic front. Oil and coal prices rose sharply and the trend does not seem to be reversing.
During the year, the Indian economy grew at 8.6% and that growth rate is expected to continue in the coming years. So, the outlook for the current year remains broadly positive, subject to the assumption of normal monsoon and robust growth in manufacturing and service sectors. On the downside, global commodity and energy prices remain volatile and could adversely impact growth.
The year 2010-11 for the Textile Industry was a year of opportunities as well as challenges. The increase in the prices of cotton were extraordinary and contradictory to estimates. The opening cotton prices were lower for certain medium and long staple varieties when compared to the prices of the previous year. However, from December 2010, in the wake of a sudden surge in global demand, the domestic cotton prices started rising. The cotton prices peaked during the months of February & March 2011 and were higher by around 100% as compared to the previous year. The volatility and strong international demand directly influenced domestic cotton prices.
To curb the rising cotton price and to ensure sufficient raw material availability to Indian spinners, the Government banned further exports of cotton for the 2009/10 season in April 2010. However, for the 2010/11 season, the Government decided to allow the exports of cotton under OGL without duty effective from 01st October 2010. This was however capped at 55 lacs bales for the season. Yarn prices had also increased significantly during the period. To curb the increasing prices of cotton yarn, the Government restricted the export of yarn to 720 Million Kgs for the year 2010-11. This limit was reached by the end of November 2010, and further exports of yarn was stopped until March 2011. The export incentive schemes, DEPB and Duty draw back for cotton yarn were withdrawn in April 2010.
The TUF (Technology Up gradation Fund) scheme has been extended up to March 2012 and the scope of the scheme has been modified by the Ministry of Textiles to meet the needs of the industry. The Government has imposed Central excise duty on branded garments in March 2011. The Hon’ble Madras High court issued a closure order to all dyeing units in Tirupur due to concerns over environmental pollution. Around 750 dyeing units were shut down after this order.
REVIEW OF OPERATIONS
The remunerative prices and good demand for yarn, both in the domestic and international markets for most of the year enabled the company to maintain the profit margins despite the steep rise in raw material costs. However the ban on exports of cotton yarn from December 2010 resulted in the company having to hold high stocks of export yarn by the end of the financial year.
On the power front, in Kerala, Andhra Pradesh and Karnataka the situtation improved compared to previous years, which facilitated the increase in the Company’s capacity utilisation. However, the continued shortage of power in Tamil Nadu has affected utilisation levels and increased energy costs. The prevalent acute shortage of labour has also affected the performance of there Tamil Nadu units. Notwithstanding these external factors the company’s performance in the year 2010-11 was commendable and the company achieved the highest profit figures in the company’s history.
During the year, the company had taken measures to improve the performance of the weaving division, as a result of which, there were significant improvement in the division’s efficiency. The turnover of the division increased, however the higher yarn costs negated the effects of improved efficiency levels. The company is optimistic of improved performance of this division during the current financial year.
The company’s turnover of Rs.5750.000 Millions during the year, registered a significant growth of 32% over the previous year due to better capacity utilisation and increased sales realisation. This coupled with improved operational efficiencies enhanced the Operating Profit to Rs.660.000 Millions for the year, as against the corresponding figure of Rs.520.000 Millions in the previous year.
OUTLOOK FOR THE
CURRENT YEAR
There was a lot of optimism at the start of the year about the growth prospects for the textile industry. As the Government opened up exports of cotton yarn from April 2011 there were expectations of maintaining the healthy margins seen during 2010/11. However, the huge stocks of cotton yarn that was held by exporters coupled with a slow down in demand saw domestic and international yarn prices fall steadily from the second half of April onward. During the same period, domestic and international cotton prices fell sharply by over 25% from the peak levels seen during March 2011. As a result of this, the prices of cotton stocks held by the company are higher than current market prices. If this trend were to continue, it will adversely affect the operating margins in cotton yarn. Since the closure of dyeing units in Tirupur, the demand for yarn in that region has been affected. Similarly the imposition of central excise duty on branded garments has also affected the hosiery cotton yarn market.
The predictions of a normal monsoon point
towards improved power availability in Kerala and Andhra Pradesh, but the acute
shortage of power is anticipated to continue in Tamil Nadu.
In order to mitigate the impact of acute
labour and power shortages and to take advantage of technology advancements,
the company continues its modernization programme. The company augmented the
windmill generation capacity by 3 MW during the year and total capacity grew to
13.25 MW, which caters to 50% of the power requirement of the Tamil Nadu units.
SUBSIDIARY COMPANIES
The Company has four subsidiaries namely 1.Benwood Corporation Sdn Bhd 2. Suprem Textile Processing Limited 3. Multiflora Processing (CBE) Limited and 4. Precot Meridian Energy Limited. Benwood Corporation Sdn Bhd, a subsidiary incorporated in Malaysia, recorded a turnover of Rs.220.000 Millions for the year ended 31st March 2011 with a Net Profit of Rs. 20.000 Millions. The operations of the other subsidiaries are not significant.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER ENDED 31.12.2011
(Rs in Millions)
|
Particulars |
Quarter ended |
9 months ended |
|
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
1. a) Net Sales/Income From Operation |
1322.100 |
1630.000 |
4308.000 |
|
b) Other Trade Income |
7.300 |
16.900 |
28.300 |
|
Total Income (a)
+ (b) |
1329.400 |
1646.900 |
4336.300 |
|
2. Expenditure |
|
|
|
|
a)(Increase)/Decrease in stock in trade work in progress |
(54.500) |
406.900 |
108.800 |
|
b) Consumption of Raw Materials |
933.100 |
1036.000 |
3075.900 |
|
c) Purchase of traded Goods |
|
|
|
|
d) Employee cost |
133.100 |
140.800 |
410.700 |
|
e) Depreciation |
77.100 |
72.700 |
218.800 |
|
f) Power and Fuel |
143.600 |
123.000 |
412.200 |
|
g) Other expenditure |
159.700 |
253.300 |
601.000 |
|
Total |
1392.100 |
2032.700 |
4827.400 |
|
3. Profit for operations before other
Income, Interest and Exceptional items ( 1-2 ) |
(62.700) |
(385.800) |
(491.100) |
|
4. Other Income |
5.800 |
5.200 |
19.500 |
|
5. Profit before Interest and
Exceptional items ( 3+4 ) |
(56.900) |
(380.600) |
(471.600) |
|
6. Interest |
60.000 |
81.000 |
220.200 |
|
7. Profit after Interest but before
Exceptional items ( 5-6 ) |
(116.900) |
(461.600) |
(691.800) |
|
8. Exceptional items |
|
|
|
|
9. Profit
(+)/Loss(-) from Ordinary Activities before Tax ( 7+8 ) |
(116.900) |
(461.600) |
(691.800) |
|
10. Tax Expenses(Net) |
(37.700) |
(182.500) |
(220.200) |
|
11. Net Profit
(+)/Loss(-) from Ordinary Activities after Tax ( 9-10 ) |
(79.200) |
(279.100) |
(471.600) |
|
12. Extraordinary items (net of tax expenses Rs.) |
|
|
|
|
13. Net Profit
(+)/Loss(-) for the period (11-12) |
(79.200) |
(279.100) |
(471.600) |
|
14. Paid Up-Equity Share Capital (Face Value of Rs.5/- each) |
|
|
|
|
15.Reserve Excluding, Revaluation Reserve as per balance of previous accounting
year |
|
|
|
|
16. Earnings per shares (EPS) Basic and diluted EPS before
Extraordinary items for the period, for the year to date and for the previous
year (not annualised) Rs. |
(11.40) |
(40.16) |
(67.86) |
|
17. Public Shareholdings |
|
|
|
|
- No. of Shares |
3112899 |
3112899 |
3112899 |
|
- Percentage of Shareholding |
44.79 |
44.79 |
44.79 |
|
18. Promoter and
Promoter Group Shareholding |
|
|
|
|
Pledged / Encumbered |
- |
- |
- |
|
Non-Encumbered |
|
|
|
|
- Number of
Shares |
3837101 |
3837101 |
3837101 |
|
- Percentage of
shares (as a % of total shareholding of promoter and promoter group) |
100 |
100 |
100 |
|
- Percentage of
shares (as a % of total share capital of the company) |
55.21 |
55.21 |
55.21 |
Note:
1. The operations of the company primarily relate to one business segment viz, Textiles
2. Figures for the earlier periods have been re-grouped/re-classified to correspond to the figures for the current period.
3. The above results have been subjected to a limited review by the Statutory Auditors, reviewed by the Audit Committee and approved by the Board of Directors.
4. Status of Investor Complaints during the quarter - Pending as at the beginning and end of the quarter - NIL, Received during the quarter - 8, Disposed off during the quarter – 8.
FIXED ASSETS:
Tangible Assets
·
Land
·
Building
·
Plant and Machinery
·
Office Furniture
·
Motor Vehicles
Intangible Assets
·
EPP Expenditure
·
Software
AS PER WEBSITE
DETAILS
PROFILE
Subject (formerly known as Precot Mills), a manufacturer of Yarn and Fabrics, was established in the year 1962 by Mr.V.N.Ramachandran and Mr.N.Damotharan, technocrats in the field of textile technology. Subject has been in the field of yarn and fabric production for nearly five decades and has gained extensive expertise and knowledge across various verticals. Products manufactured include cotton yarn, sewing threads, fabrics and garments. Precot Meridian is a leading player in the textile industry, with an annual turnover of Rs 6000.000 Millions.
Brief history and key
milestones
Subject started its first production in 1964 with an initial capacity of 12,096 spindles at Kanjikode, Kerala. Precot Meridian now has units in the four southern states of India viz., Tamil Nadu, Kerala, Andhra Pradesh and Karnataka with the total spinning capacity of 2,25,000 spindles, 1728 rotors and 117 looms.
Key mile stones
· From an initial capacity of 12,096 Spindles at Kanjikode, Kerala (A-Unit) in 1964, now the capacity of the unit is 57,600 spindles.
· In 1983, the second unit (B-Unit) was set up at Hindupur, Andhra Pradesh with an initial capacity of 28,800 Spindles and the current capacity is 69,120 spindles.
· In 1992, the third unit (C-Unit) was set up at Walayar, Kerala as a 100% Export Oriented Unit with a capacity of 12,096 Spindles and the current capacity is 25,344 spindles.
· In 1995, an OE Unit (D Unit) was set up at Walayar adjacent to its third Unit with a capacity of 1344 Rotors.
· In 1998, a yarn dyeing Unit (K Unit) was set up at Kolar, Karnataka to manufacture polyester sewing threads and its capacity is 7 tons per day.
· In 2001, a modern weaving plant at Sethumadai near Pollachi was set up to manufacture yarn-dyed fabrics.
· In January 2004, yarn dyeing operations were started at Perundurai, which caters to the needs of the Sethumadai unit.
· In 2006, Meridian Industries merged with Precot Mills and the name was changed to Precot Meridian Limited and the current capacity is 66,154 spindles.
· Subject is looking towards green power generation and has invested in 17 Windmills. These windmills cater 50% of the power requirements of units located in Tamil Nadu.
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 :
There
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.55.56 |
|
|
1 |
Rs.85.52 |
|
Euro |
1 |
Rs.69.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
58 |
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.