1. Summary Information
|
|
|
Country |
|
|
Company Name |
Winsome Yarns
Limited |
Principal Name 1 |
Mr. Satish Bagrodia |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Chandra Mohan |
|
|
|
Registration # |
53-10566 |
|
Street Address |
SCO 191-192, Sector – 34 A, Chandigarh – 160022,
India |
||
|
Established Date |
19.07.1990 |
SIC Code |
-- |
|
Telephone# |
91-172-4612000 /
4613000 |
Business Style 1 |
Manufactures Combed and Carded Cotton Yarn of Different
Counts Ranging from 20s to 40s. |
|
Fax # |
91-172-4614000 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
-- |
|
|
# of employees |
1463
(Approximately) |
Product Name 2 |
-- |
|
Paid up capital |
Rs.587,558,000 |
Product Name 3 |
-- |
|
Shareholders |
shareholding of
Promoter and Promoter Group- 53.85%, Public Shareholding -46.15% |
Banking |
Canara Bank |
|
Public Limited Corp. |
Yes |
Business Period |
22 years |
|
IPO |
Yes |
International Ins. |
-- |
|
Public |
Yes |
Rating |
Ba (45) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associates
|
-- |
Winsome
Textile Industries Limited |
-- |
|
Note |
-- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
1714,474,000 |
Current Liabilities |
679,774,000 |
|
Inventories |
1645,558,000 |
Long-term Liabilities |
5084,405,000 |
|
Fixed Assets |
3274,668,000 |
Other Liabilities |
24,187,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
5,788,366,000 |
|
Invest& other Assets |
492,557,000 |
Retained Earnings |
674,853,000 |
|
|
|
Net Worth |
1338,891,000 |
|
Total Assets |
7,127,257,000 |
Total Liab. & Equity |
7,127,257,000 |
|
Total Assets (Previous Year) |
5705,193,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
3300,803,000 |
Net Profit |
61,090,000 |
|
Sales(Previous yr) |
2222,553,000 |
Net Profit(Prev.yr) |
(120,742,000) |
MIRA
INFORM REPORT
|
Report Date : |
29.06.2012 |
IDENTIFICATION DETAILS
|
Name : |
WINSOME YARNS LIMITED |
|
|
|
|
Registered
Office : |
SCO 191-192, Sector – 34 A, Chandigarh –
160022 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
19.07.1990 |
|
|
|
|
Com. Reg. No.: |
53-10566 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.587.558 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17115CH1990PLC010566 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
PTLW10031A PTLW10081B |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACW1911H |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufactures Combed and Carded Cotton Yarn of Different
Counts Ranging from 20s to 40s. |
|
|
|
|
No. of Employees
: |
1463 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 5400000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track. Trade relations
are reported to be fair. Business is active. Payments are reported to be
usually correct 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/ Corporate Office : |
SCO 191-192, Sector – 34 A, Chandigarh –
160022, India |
|
Tel. No.: |
91-172-4612000 / 4613000 / 4646749 /
5012986 / 5012886 / 5012186 / 5012286 / 5007986 / 2603966 / 2662232 / 2600594
/ 2606709 91-172-2612 447 (Direct - Export Deptt.) |
|
Fax No.: |
91-172-4614000 / 2603804 / 5088844 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1: |
Vill Kurawala, |
|
Tel. No.: |
91-1762-280236 / 280638 |
|
Fax No.: |
91-1762-270237 |
|
E-Mail : |
|
|
|
|
|
Factory 2: |
1, Industrial Area, Dist. Solan (H.P.), |
|
Tel. No.: |
91-1795-244045 / 244046 |
|
Fax No.: |
91-1795-244287 |
|
E-Mail : |
|
|
|
|
|
Factory 3: |
B-58, Phase VII, Industrial Area,
Mohali-160059, |
|
Tel. No.: |
91-172-5053138 / 5053139 / 5095870 /
5095870 / 5092400 / 5092397 |
|
Fax No.: |
91-172-5090572 |
|
E-Mail : |
|
|
|
|
|
Marketing Office |
12/22, East Patel Nagar, Ground Floor,
Main Market, |
|
Tel. No.: |
91-11-5725462 |
|
Fax No.: |
91-11-5254627 |
|
E-Mail : |
|
|
|
|
|
National Marketing : |
Mktg. Office and
Godown AHMEDABAD Representative
agent MUMBAI Mktg. Office and
Godown Consignment
Agent (Godown facility ) Consignment
Agent ( Godown facility ) TIRUPUR Mktg. Office and
Godown |
DIRECTORS
(AS ON 31.03.2011)
|
Name : |
Mr. Satish Bagrodia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Chandra Mohan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Brij Mohan Khanna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashish Bagrodia |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.K. Singla |
|
Designation : |
Director (PSIDC
Nominee) |
|
|
|
|
Name : |
Mr. Manish Bagrodia |
|
Designation : |
Managing
Director |
|
|
|
|
Name : |
Mr. Yashpal
Barar |
|
Designation : |
Director (PNB
Nominee) |
KEY EXECUTIVES
|
Name : |
Mr. K.V. Singhal |
|
Designation : |
GM (Legal) and Company Secretary |
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 |
|
|
|
|
|
|
|
|
162,122 |
0.32 |
|
|
25,817,487 |
50.86 |
|
|
1,360,000 |
2.68 |
|
|
27,339,609 |
53.85 |
|
|
|
|
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
27,339,609 |
53.85 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
12,500 |
0.02 |
|
|
12,500 |
0.02 |
|
|
|
|
|
|
|
|
|
|
19,054,076 |
37.53 |
|
|
|
|
|
|
2,962,107 |
5.83 |
|
|
1,287,139 |
2.54 |
|
|
110,548 |
0.22 |
|
|
110,548 |
0.22 |
|
|
23,413,870 |
46.12 |
|
|
|
|
|
Total Public
shareholding (B) |
23,426,370 |
46.15 |
|
|
|
|
|
Total (A)+(B) |
50,765,979 |
100.00 |
|
|
|
|
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
|
|
19,941,250 |
- |
|
|
19,941,250 |
- |
|
|
|
|
|
Total
(A)+(B)+(C) |
70,707,229 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 Million BUSINESS DETAILS
|
Line of Business : |
Manufactures Combed and Carded Cotton Yarn of Different
Counts Ranging from 20s to 40s. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Yarn |
|
|
|
|
- Spindles |
133440 |
109824 |
16306.35 |
|
- Rotors |
1536 |
-- |
-- |
|
Knitwears (Nos.) |
1944000 |
1160000 |
625534 |
GENERAL INFORMATION
|
No. of Employees : |
1463 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Canara Bank ·
State Bank of ·
Punjab National Bank |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Lodha and Company Chartered Accountants |
|
Address : |
12, Bhagat Singh Marg, |
|
|
|
|
Associates : |
·
Winsome Textile Industries Limited |
|
|
|
|
Subsidiaries : |
(i) Winsome Yarns (Cyprus) Limited (100% Subsidiary) (ii) S.C. Winsome Romania s.r.l (Subsidiary of (I) above) (iii) I.M.M. Winsome Italia s.r.l (Subsidiary of (ii) above) (iv) S.C. Textil s.r.l. (Subsidiary of (iii) above) |
CAPITAL STRUCTURE
AS ON 31.03.2011)
Authorised Capital : Rs.850.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.707.072
Millions
(AS ON 31.03.2011)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
650000000 |
Equity Shares |
Rs.1/- each |
Rs.650.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
590193290 |
Equity Shares |
Rs.1/- each |
Rs.590.193
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
586397290 |
Equity Shares |
Rs.1/- each |
Rs.586.397
Millions |
|
|
Add – Amount Paid up on Share Forfeited |
|
Rs.1.161
Millions |
|
|
|
|
|
|
|
Total |
|
Rs.587.558 Millions |
NOTE:
1) During the year
the company has issued and allotted 19,94,125 Global Depository Receipts (GDRs)
representing 19,94,12,500 equity shares of Re.1/- each at a premium of Rs.1.97
per share.
2) During the year
company allotted 13,03,25,000 equity shares of Re.1/-each at a premium of
Re.0.60 each upon conversion of equal number of warrants allotted on
preferential basis.
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 |
587.558 |
257.821 |
257.821 |
|
|
2] Advance against Application Money of Convertible Warrants |
76.480 |
108.800 |
18.900 |
|
|
3] Reserves & Surplus |
674.853 |
168.896 |
290.561 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1338.891 |
535.517 |
567.282 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5004.597 |
4451.654 |
3769.824 |
|
|
2] Unsecured Loans |
79.808 |
99.583 |
224.267 |
|
|
TOTAL BORROWING |
5084.405 |
4551.237 |
3994.091 |
|
|
DEFERRED TAX LIABILITIES |
13.442 |
0.000 |
25.288 |
|
|
|
|
|
|
|
|
TOTAL |
6436.738 |
5086.754 |
4586.661 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3274.668 |
3255.116 |
3182.252 |
|
|
Capital work-in-progress |
340.886 |
476.654 |
585.434 |
|
|
|
|
|
|
|
|
INVESTMENT |
151.671 |
151.671 |
151.671 |
|
|
DEFERREX TAX ASSETS |
0.000 |
33.314 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1645.558
|
831.545
|
447.631
|
|
|
Sundry Debtors |
569.925
|
366.927
|
396.725
|
|
|
Cash & Bank Balances |
676.815
|
49.425
|
119.422
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
467.734
|
540.541
|
340.414
|
|
Total
Current Assets |
3360.032
|
1788.438
|
1304.192
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
281.041
|
320.899
|
295.098
|
|
|
Other Current Liabilities |
398.733
|
275.933
|
322.484
|
|
|
Provisions |
10.745
|
21.607
|
19.306
|
|
Total
Current Liabilities |
690.519
|
618.439
|
636.888
|
|
|
Net Current Assets |
2669.513
|
1169.999 |
667.304 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6436.738 |
5086.754 |
4586.661 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3300.803 |
2222.553 |
1469.046 |
|
|
|
Other Income |
36.265 |
12.268 |
44.962 |
|
|
|
TOTAL (A) |
3337.068 |
2234.821 |
1514.008 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Raw Material Consumed |
2346.949 |
1322.277 |
874.125 |
|
|
|
Cotton yarn Purchases |
72.207 |
19.955 |
2.520 |
|
|
|
Manufacturing and other Expenses |
919.647 |
745.928 |
604.228 |
|
|
|
Provision for diminution in investment |
0.000 |
0.000 |
0.054 |
|
|
|
Increase/(Decrease) in Finished Goods |
(745.412) |
(192.812) |
17.085 |
|
|
|
TOTAL (B) |
2593.391 |
1895.348 |
1498.012 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
743.677 |
339.473 |
15.996 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
413.260 |
317.393 |
260.024 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
330.417 |
22.080 |
(244.028) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
217.958 |
201.409 |
191.002 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE TAX
(E-F) (G) |
112.459 |
(179.329) |
(435.030) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
51.369 |
(58.587) |
(156.741) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
61.090 |
(120.742) |
(278.289) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
130.683 |
251.425 |
529.714 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
191.773 |
130.683 |
251.425 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1549.401 |
1212.352 |
862.788 |
|
|
TOTAL EARNINGS |
1549.401 |
1212.352 |
862.788 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Plant and Machinery |
9.550 |
60.011 |
691.393 |
|
|
|
Stores & Spares |
1.745 |
14.305 |
9.305 |
|
|
|
Raw Material |
1.744 |
24.584 |
21.279 |
|
|
TOTAL IMPORTS |
13.039 |
98.900 |
721.977 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
0.19 |
(0.47) |
(1.08) |
|
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 |
911.800 |
1254.200 |
1139.100 |
1045.900 |
|
Total Expenditure |
857.100 |
1405.700 |
994.900 |
874.700 |
|
PBIDT (Excl OI) |
54.700 |
(151.500) |
144.200 |
171.200 |
|
Other Income |
3.800 |
43.600 |
11.700 |
(9.900) |
|
Operating Profit |
58.500 |
(107.900) |
155.900 |
161.300 |
|
Interest |
119.800 |
127.000 |
148.700 |
97.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
(61.300) |
(234.900) |
7.200 |
64.100 |
|
Depreciation |
55.400 |
57.400 |
57.300 |
59.500 |
|
Profit Before Tax |
(116.700) |
(292.300) |
(50.100) |
4.600 |
|
Tax |
(35.100) |
(91.200) |
(16.800) |
6.300 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(81.600) |
(201.100) |
(33.300) |
(1.700) |
|
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 |
(81.600) |
(201.100) |
(33.300) |
(1.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.83
|
(5.40)
|
(18.38)
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.41
|
(8.09)
|
(29.61)
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.70
|
(3.56)
|
(9.70)
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08
|
0.33
|
(0.77)
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.31
|
9.65
|
8.16
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.87
|
2.89
|
2.05
|
LOCAL AGENCY FURTHER INFORMATION
|
Check list by info
Agents |
Available in Report (Yes/ No) |
|
|
|
|
Year of Establishment |
Yes |
|
Locality of the Firm |
Yes |
|
Constitution of the Firm |
Yes |
|
Premises details |
No |
|
Type of Business |
Yes |
|
Line of Business |
Yes |
|
Promoter’s Background |
No |
|
No. of Employees |
Yes |
|
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 in the business |
Yes |
|
Details of sister concerns |
Yes |
|
Major Suppliers |
No |
|
Major Customers |
No |
|
Payments Terms |
No |
|
Export/ Imports Details (If applicable) |
No |
|
Market Information |
----- |
|
Litigations that the firm/ Promoters Involved in |
----- |
|
Banking details |
Yes |
|
Banking Facility Details |
Yes |
|
Conduct of the Banking Account |
----- |
|
Buyer visit details |
----- |
|
Financials, if provided |
Yes |
|
Incorporation details is applicable |
Yes |
|
Last Accounts filed at ROC |
Yes |
|
Major Shareholders, if available |
No |
OPERATIONS AND PERFORMANCE
The year was an extremely trying one. A runaway inflation touching a high point of 13.9% during the year, the tight monetary policies followed by the authorities for most of the year to control inflation with the consequent high interest rates, the precipitous fall in the value of the Rupee during the year, increase in cotton prices from Rs. 29000 per candy (approximately) in May, 2010 to Rs.63000 per candy (approximately) in March, 2011 i.e an increase of 117%, all lead to an extremely challenging environment in which the Company had to operate. Further the government of India restricted the total quantity of export of cotton yarn to 720 million kgs which had an adverse impact on the sales during the year.
During the year, there was a progressive recovery in the Textile industry, both in India and overseas. Further, a series of planned steps that were taken during the year ensured that the Company remains competitive through stringent cost control and fiscal prudence. The Constant introduction of strategic marketing without affecting the quality of the product enabled the company to achieve better performance as compared to previous year. The Company has achieved a turnover of Rs. 3301.256 Millions against the previous year's turnover of Rs.2222.571 Millions. i.e registering an increase of 49% (approx.). The Company has earned a net profit (after tax) of Rs.61.090 Millions against previous year's net loss after tax of Rs.120.742 Millions.
During the current financial year with the improved production, it is expected that the performance will be substantially better.
EXPANSION PROJECTS
The management is that out of five Micro Hydel Power Projects having a total capacity to produce 3.9 MW of electricity, two Micro Hydel Projects have been commissioned during the year. The implementation of three Micro Hydel Power Projects is at an advanced stage and are expected to be commissioned with in current financial year 2011-2012.
MANAGEMENT ANALYSIS DISCUSSION
INDIAN TEXTILE
INDUSTRY
India is a
traditional textile -producing country with textiles in general, and cotton in
particular, being major industries for the country. India is among the world's
top producers of yarns and fabrics, and the export quality of its products is
ever increasing. Textile Industry is one of the largest and oldest industries
in India. Textile Industry in India is a self-reliant and independent industry
and has great diversification and versatility.
The Indian Textile
Industry has an overwhelming presence in the economic life of the country. It
is the second largest textile industry in the world after China. Apart from
providing one of the basic necessities of life i.e. cloth, the textile industry
contributes about 14% to the country's industrial output and about 17% to
export earnings. After agriculture this industry provides employment to maximum
number of people in India employing 35 million people. Besides, another 50
million people are engaged in allied activities. The Industry is expected to
grow from the present US$ 70 billion to US$ 220 billion by 2020, according to
Mr. Dayanidhhi Maran, Union Minister of Textiles.
OPPORTUNITIES IN
THE INDIAN TEXTILE INDUSTRY
The textile
industry is undergoing a major reorientation towards non-clothing applications
of textiles, known as technical textiles like thermal protection and
blood-absorbing materials; seatbelts; adhesive tape, and multiple other
specialized products and applications etc.
According to the
Ministry of Textiles, technical textiles are an important part of the textile
industry. The Working Group for the Eleventh Five Year Plan (2007-12) has
estimated the market size of technical textiles to increase from US$ 5.29
billion in 2006-07 to US$ 10.6 billion in 2011-12, without any regulatory
framework and to US$ 15.16 billion with regulatory framework. The Scheme for
Growth and Development of Technical Textiles aims to promote indigenous
manufacture of technical textile to leverage global opportunities and cater to
the domestic demand.
Further, the
government is set to launch US$ 44.21 million mission for promotion of
technical textiles, while the Finance Ministry has cleared setting up of four
new research centres for the industry, which include products like mosquito and
fishing nets, shoe laces and medical gloves. As per a joint study of the
Ministry of Textiles and an industry body, the global technical industry is
estimated at US$ 127 billion and its size in India is pegged at US$ 11 billion.
In order to give a
big push to the technical textiles industry, the Government has launched a
Technology Mission on Technical Textiles with an outlay of Rs.2000.000 Millions
for the next 5 years. In 2011-12, the newly launched Mission would be
operationalised to set up four new centers of excellence in sportstech,
Indutech, Nonwoven and composites.
Contingent Liabilities
|
Particular |
Rs in Millions As on 31.03.2011 |
Rs in Millions As on 31.03.2010 |
|
|
|
|
|
Bills discounted with Banks |
|
288.408 |
|
Outstanding Letter of Credit |
|
41.834 |
|
Sales Tax liability in respect of matters in
appeal |
|
0.805 |
|
Excise duty show cause notices /. Matters in
appeal |
|
52.372 |
|
Service Tax Maters |
|
0.062 |
|
Income Tax Demand |
|
30.823 |
|
Outstanding bank guarantees |
|
8.879 |
FIXED ASSETS
Tangible Assets
- Building
- Plant and Machinery
- Furniture and Fixture
- Vehicles
Intangible Assets
- Specialised Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No 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.56.92 |
|
|
1 |
Rs.88.91 |
|
Euro |
1 |
Rs.71.25 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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.