MIRA
INFORM REPORT
|
Report Date : |
19.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
MORARJEE TEXTILES LIMITED |
|
|
|
|
Registered
Office : |
Peninsula Spenta, Mathuradas Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400013, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
14.07.1995 |
|
|
|
|
Com. Reg. No.: |
11-090643 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 613.324 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L52322MH1995PLC090643 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM09765A |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturer of Cotton Woven Fabrics |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (28) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3100000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track. Profitability
of the company appears to be low. However, trade relations are reported as
fair. Business is active. Payments are reported to be slow. The company can be considered for business dealings with some
cautions. |
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 : |
Peninsula Spenta, Mathuradas Mills Compound, Senapati Bapat Marg,
Lower Parel, Mumbai – 400013, |
|
Tel. No.: |
91-22-66154651/52/53 |
|
Fax No.: |
91-22-66154593 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
G – 2, MIDC Industrial Estate, Post Salaidhaba, Butibori, |
|
Tel. No.: |
91-7104-265704/708/514/519 |
|
Fax No.: |
91-7104-265703/508 |
|
|
|
|
Overseas Sales Office : |
Corso Italia, 62-20025 Legnano (Mi) – |
|
Tel. No.: |
39-331-455028 |
|
Fax No.: |
39-331-545026 |
|
E-Mail : |
|
|
|
|
|
Processing Unit: |
Plot No. 101/102, |
|
Email: |
|
|
|
|
|
Mumbai Liasioning Office : |
104, Bayside Mall, 35, C.M.M. Malviya Marg, |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Ms. Urvi A Piramal |
|
Designation : |
Chairperson |
|
Other Directorship held |
|
|
|
|
|
Name : |
Mr. Harshvardhan A Piramal |
|
Designation : |
Executive Vice Chairman |
|
Other Directorship held |
|
|
|
|
|
Name : |
Mr. Mahesh S Gupta |
|
Designation : |
Director |
|
Date of Birth/Age: |
30.06.1956 |
|
Date of Appointment : |
19.01.2006 |
|
Qualification : |
B.Com, Chartered Accoutant, Company Secretary and Law Graduate |
|
Profile and
Expertise |
Mr. Gupta has over 3 decades of professional experience in business management
and in all aspects of Corporate Finance such as treasury management, mergers
and acquisitions, strategic planning, direct taxation, company law matters, etc. Mr Gupta was awarded the CFO of the Year Award (2001), Special
Commendation for Financial Excellence (Mergers & Acquisitions Category)
by IMA (formerly known as EIU), Shareholding in the Company Mr. Mahesh Gupta does not hold any equity shares of the Company. Directorship and committee memberships (excluding Morarjee Textiles Limited) Directorships
Chairman of
Board Committees
Member of Board
Committees
|
|
|
|
|
Name : |
Mr. Pradipta Mohapatra |
|
Designation : |
Director |
|
Other Directorship held |
|
|
|
|
|
Name : |
Mr. Aditya Mangaldas |
|
Designation : |
Director |
|
Date of Birth/Age: |
16.09.1963 |
|
Date of Appointment : |
18.02.2005 |
|
Qualification : |
Mechanical Engineer from L.D. College of Engineering, MBA from Babson
College USA |
|
Profile and
Expertise: |
Mr Aditya Mangaldas has professional expertise in finance and business
strategy. He also has a wide experience in the Textile Industry. He has been the Chairman and Managing Director of The Victoria Mills
Ltd. since October, 1999. Mr. Mangaldas is actively involved in organizations
involved in housing and caring for children with serious chronic diseases. Shareholding in the Company. Mr. Aditya Mangaldas does not hold any equity shares of the Company. Directorship and committee memberships (excluding Morarjee Textiles
Limited) Directorships
Chairman of
Board Committees
|
|
|
|
|
Name : |
Mr. Ranjan Sanghi |
|
Designation : |
Director |
|
Other Directorship held |
|
|
|
|
|
Name : |
Mr. Shobhan Thakore |
|
Designation : |
Director |
|
Other Directorship held |
|
|
|
|
|
Name |
Mr. R.K. Rewari |
|
Designation : |
CEO and Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. S C Kashimpuria |
|
Designation : |
Head Finance and Accounts |
|
|
|
|
Name : |
Ms. Karina Vaz |
|
Designation : |
Deputy Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2011
|
Category of
Shareholder |
No. of Shares |
% of No. of Shares |
|||
|
|
|
|
|||
|
Individuals / Hindu Undivided Family |
105,529 |
0.29 |
|||
|
Any Others
(Specify) |
23,102,106 |
63.59 |
|||
|
|
1,511,994 |
4.16 |
|||
|
Trusts |
21,590,112 |
59.42 |
|||
|
Sub Total |
23,207,635 |
63.88 |
|||
|
(2) Foreign |
|
|
|||
|
|
23,207,635 |
63.88 |
|||
|
(B) Public
Shareholding |
|
|
|||
|
(1) Institutions |
|
|
|||
|
Mutual Funds / UTI |
2,711 |
0.01 |
|||
|
|
3,061 |
0.01 |
|||
|
Insurance Companies |
1,938,286 |
5.33 |
|||
|
Foreign Institutional Investors |
1,135 |
- |
|||
|
Sub Total |
1,945,193 |
5.35 |
|||
|
|
|
|
|||
|
Bodies Corporate |
2,783,888 |
7.66 |
|||
|
Individuals |
|
|
|||
|
Individual shareholders holding nominal share capital up to Rs. 0.100
million |
4,859,490 |
13.38 |
|||
|
|
3,339,537 |
9.19 |
|||
|
Any Others
(Specify) |
196,606 |
0.54 |
|||
|
Non Resident Indians |
194,435 |
0.54 |
|||
|
Clearing Members |
2,171 |
0.01 |
|||
|
|
11,179,521 |
30.77 |
|||
|
Total Public
shareholding (B) |
13,124,714 |
36.12 |
|||
|
Total (A)+(B) |
36,332,349 |
100 |
|||
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|||
|
|
- |
- |
|||
|
(2) Public |
- |
- |
|||
|
Sub Total |
- |
- |
|||
|
Total (A)+(B)+(C) |
36,332,349 |
- |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cotton Woven Fabrics |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Looms |
Nos. |
248 |
-- |
|
Spindles |
Nos. |
31568 |
-- |
|
Commercial Production |
Pcs. |
2400000 |
-- |
|
Finished Fabrics |
Mtrs. (Lac) |
-- |
198.68 |
|
Yarn |
Tons |
-- |
1051.92 |
|
Finished Fabrics Shirt |
Nos. (Lac) |
-- |
17.08 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||||||||
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|
|
||||||||||||||||||||||||||||||||||||
|
Bankers : |
·
Allahabad Bank ·
Export - Import Bank of India ·
AXIS Bank Limited ·
IDBI Bank Limited ·
Saraswat Co-operative Bank Limited ·
Yes Bank Limited ·
Corporation Bank |
||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
Shah and Company Chartered Accountants |
|
|
|
|
Branch Auditors : |
|
|
Name : |
D. Dadhech and Company Chartered Accountants |
|
|
|
|
Joint Ventures : |
·
Morarjee Castiglioni (India) Private Limited ·
Just Textiles Limited |
|
|
|
|
Subsidiaries : |
·
Morarjee International s.r.l. ·
Integra Apparels and Textiles Limited (previous
year up to 31.12.2009) ·
Mens Club s.p.a. |
|
|
|
|
Enterprises over
which Directors/Key Management Personnel exercise significant influence : |
·
Peninsula Land Limited ·
Ashok Piramal Management Corporation Limited. ·
Morarjee Goculdas Spg. and Wvg. Company Private
Limited (Formerly Morarjee Legler Private Limited) ·
Peninsula Facility Management Services Limited ·
Ashok G. Piramal Trust |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
45000000 |
Equity Shares |
Rs.10/- each |
Rs. 450.000 Millions |
|
2500000 |
Redeemable Cumulative Non Convertible Preference Shares |
Rs.100/- each |
Rs. 250.000 Millions |
|
|
Total |
|
Rs. 700.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
36332349 |
Equity Shares |
Rs.10/- each |
Rs. 363.324
Millions |
|
2500000 |
Redeemable Cumulative Non Convertible Preference Shares |
Rs.100/- each |
Rs. 250.000 Millions |
|
|
Total |
|
Rs. 613.324 Millions |
Notes:
10,00,000
(Previous year 10,00,000) 5 % Redeemable Cumulative Non- Convertible Preference
Shares of Rs.100/- each Redeemable anytime between 15th November,
2014 and 15th November, 2019 at the option of the Company.
15,00,000
(Previous year - Nil) 9% Redeemable Cumulative Non- Convertible Preference
Shares of Rs.100/- each. These Preference Shares are redeemable on the expiry
of 5 years from the date of allotment with an option for the company for early
redemption not before 18 months from the date of allotment.
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 |
613.324 |
463.324 |
281.695 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
164.413 |
416.376 |
335.380 |
|
|
4] (Accumulated Losses) |
0.000 |
(297.771) |
(320.225) |
|
|
NETWORTH |
777.737 |
581.929 |
296.850 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2015.377 |
1538.442 |
1321.065 |
|
|
2] Unsecured Loans |
458.744 |
952.620 |
784.407 |
|
|
TOTAL BORROWING |
2474.121 |
2491.062 |
2105.472 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3251.858 |
3072.991 |
2402.322 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2237.370 |
2359.049 |
1482.347 |
|
|
Capital work-in-progress |
3.393 |
0.930 |
6.750 |
|
|
|
|
|
|
|
|
INVESTMENT |
86.617 |
86.592 |
255.356 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
671.893
|
583.159
|
471.890
|
|
|
Sundry Debtors |
489.047
|
403.526
|
426.388
|
|
|
Cash & Bank Balances |
16.542
|
12.734
|
13.824
|
|
|
Other Current Assets |
0.000
|
0.000
|
0.000
|
|
|
Loans & Advances |
306.798
|
354.106
|
272.752
|
|
Total
Current Assets |
1484.280
|
1353.525 |
1184.854 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
399.249
|
553.362
|
357.298
|
|
|
Other Current Liabilities |
135.399
|
147.438
|
150.060
|
|
|
Provisions |
25.154
|
26.305
|
19.627
|
|
Total
Current Liabilities |
559.802
|
727.105 |
526.985 |
|
|
Net Current Assets |
924.478
|
626.420
|
657.869
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3251.858 |
3072.991 |
2402.322 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3300.328 |
2546.827 |
2035.844 |
|
|
|
Other Income |
0.986 |
0.085 |
0.371 |
|
|
|
TOTAL (A) |
3301.314 |
2546.912 |
2036.215 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Material Consumed |
1444.525 |
930.477 |
600.124 |
|
|
|
Manufacturing Expenses |
850.580 |
845.916 |
720.694 |
|
|
|
Employees Cost |
369.412 |
246.483 |
181.834 |
|
|
|
Administrative Expenses |
344.746 |
305.718 |
322.078 |
|
|
|
Forex Loss / (Gain) |
(57.904) |
(25.686) |
178.683 |
|
|
|
Increase/(Decrease)
in Finished Goods |
(106.509) |
(72.310) |
42.371 |
|
|
|
TOTAL (B) |
2844.850 |
2230.598 |
2045.784 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
456.464 |
316.314 |
(9.569) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
257.968 |
229.761 |
204.518 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
198.496 |
86.553 |
(214.087) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
152.185 |
123.397 |
105.096 |
|
|
|
|
|
|
|
|
|
|
Exceptional
Items |
0.000 |
0.000 |
58.725 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
46.311 |
(36.844) |
(377.908) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.664 |
2.810 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
46.311 |
(37.508) |
(380.718) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(508.375) |
(470.867) |
(90.149) |
|
|
|
|
|
|
|
|
|
Less |
Set-off against
Share Premium Account as per order from the Hon’able Bombay High Court |
415.873 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(46.191) |
(508.375) |
(470.867) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1793.499 |
1435.901 |
1249.546 |
|
|
TOTAL EARNINGS |
1793.499 |
1435.901 |
1249.546 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
44.024 |
141.274 |
130.886 |
|
|
|
Consumables |
22.631 |
43.470 |
0.000 |
|
|
|
Capital Goods |
6.041 |
5.267 |
10.936 |
|
|
|
Others |
0.000 |
0.000 |
25.348 |
|
|
TOTAL IMPORTS |
72.696 |
190.011 |
167.170 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.98 |
(1.67) |
(18.04) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
858.800 |
817.700 |
843.400 |
|
Total Expenditure |
763.800 |
726.000 |
757.800 |
|
PBIDT (Excl OI) |
95.000 |
91.700 |
85.600 |
|
Other Income |
22.800 |
23.200 |
0.000 |
|
Operating Profit |
117.800 |
114.900 |
85.600 |
|
Interest |
73.400 |
74.400 |
74.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
44.400 |
40.500 |
10.800 |
|
Depreciation |
38.400 |
38.800 |
38.800 |
|
Profit Before Tax |
6.000 |
1.700 |
(28.000) |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
6.000 |
1.700 |
(28.000) |
|
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 |
6.000 |
1.700 |
(28.000) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
1.40
|
(1.47) |
(18.70) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
1.40
|
(1.45) |
(18.56) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.24
|
(0.99) |
(14.17) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
(0.06) |
(1.27) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.90
|
5.53 |
8.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.65
|
1.86 |
2.25 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONS
HIGHLIGHTS – STANDALONE
During the year,
the total income of the Company was Rs. 3407.823 Millions as against Rs.
2619.222 Millions in the previous year, an increase of 30.11%. The year ended
at a profit of Rs. 46.311 Millions as against the loss of Rs. 37.508 Millions
in the previous year.
The figures for
the current financial year are not strictly comparable with the previous
financial year because the previous year includes financials of Integra, a
division of the Company for only three months i.e., from 1st January
2010 to 31st March
2010 as Integra Apparels and Textiles Limited got amalgamated with the Company
with effect
from 1st January
2010.
DETAILS OF VARIOUS
SUBSIDIARY COMPANIES ARE AS UNDER:
Morarjee
International s.r.l.
Morarjee
International s.r.l., the Company’s 100% subsidiary continued to perform well
in the highly demanding European premium fabric market.
Men’s Club s.p.a.
Men’s Club s.p.a.
is under Voluntary Liquidation and a Liquidator has been appointed to oversee
its affairs.
JOINT VENTURES
Just Textiles
Limited (“JTL”)
During the year,
JTL has achieved a turnover of Rs. 447.323 Millions as against Rs.429.802
Millions in the previous year, an increase of 4.08%. Profit before tax is Rs.12.924
Millions as against Rs.5.688 Millions the previous year.
MANAGEMENT
DISCUSSION AND ANALYSIS
Global textile
scenario
During the
financial year 2010-11, the revival in global textile demand saw consumption
rise by 6%. The Indian textile sector has also seen growth for the last seven
quarters, recovering quickly from the global economic recession.
The main challenge
facing the industry during the last year was the surging and fluctuating price
of raw materials, especially cotton. Global cotton production decreased by 7%
this year, the sharpest decline in the last six seasons. On the other hand, the
increasing gap between demand and supply resulted in cotton prices soaring to
all-time highs. Certain varieties of cotton saw prices increase by almost 150%
during the year. This brought into focus the importance for companies to
prudently hedge against raw material price fluctuations. Nevertheless, Indian
textile and garment exports overcame these challenges, increasing 11.4% in the
first half of 2010-11 over the same period last year. However, in the same
period, Indian garment exports decreased by 5.5% to $4.7 bn as compared to $5
bn in the previous year. In 2011-12, apparel exports are expected to grow by
6.9%, driven both by volumes and price increases due to the increased cost of
raw materials.
Morarjee Textiles:
Back in black
Subject registered
a profit in 2010-11 due to a continued focus on a result-driven strategy. As it
did in 2009-10, the Company once again beat its previous year’s performance in
2010-11, with revenue registering growth and the bottom line turning positive.
On a consolidated
basis, total revenue increased by 7% from Rs. 3401.200 Millions to Rs. 3638.400
Millions. The year ended with a profit of Rs. 44.500 Millions as against a loss
of Rs. 67.700 Millions in 2009-10.
On standalone
basis, Subject ended the year with a profit of Rs. 46.300 Millions as against a
loss of Rs. 37.500 Millions in 2009-10. Total revenue increased by 30.1%, from
Rs. 2619.200 Millions to Rs. 3407.800 Millions. EBIDTA stood at Rs 456.500
Millions as against Rs 316.300 Millions in 2009-10. EBIDTA margin increased
from 12.08% last year to 13.40% in 2010-11, mainly due to vastly improved
operational efficiencies and a strong focus on profitable products and
customers.
In addition to
improving operational performance, Subject also refocused and redoubled its
marketing efforts. The Company entered new markets such as
Germany and
Tunisia during the year. Subject products are now exported to 42 countries
around the world. Sales increased in all major export markets, namely Europe
and the USA. The Company acquired several new customers, for both the prints
and yarn dyed businesses. New markets generated sales revenue worth Rs. 100.000
Millions in the very first year.
During the year,
Subject was awarded the Texprocil Silver Trophy for the second highest exports
for an Indian Company of yarn-dyed and printed fabric in 2009-10.
The Company continued
its focus on the domestic retail and trade channels, which resulted in domestic
sales going up by 20% over the previous year. During the same period, the
Company increased its presence from 13 states to 17 states. The next step will
be to penetrate deeper into these states in order to maximise the potential of
the growing affluence in Tier I and Tier II cities.
The Company will
be embarking on a modernisation and expansion program in 2011-12, the first
major program it has undertaken recently.
With the bottom
line turning positive, strong brand recognition and a world class product, we
are confident that Subject will go from strength to strength in the coming
years.
Integra Apparels:
Consolidation
Total revenue at
Integra Apparels, the garment division of Subject, fell by 6.8% to Rs. 680.000
Millions due to difficult conditions in the garment export market. It suffered
a loss due to pricing pressure and a general de-growth trend amongst Indian
garment companies as a whole.
During the year,
Integra completed the process of consolidating its operations. It has
consolidated its operations into two factories, which will result in savings in
administration costs and improve operational control.
Despite the
sluggish sales trend, Integra continued to serve existing customers such as
Arrow, Wrangler and Benetton, to name but a few. It has also gained new
customers like Puma and S. Oliver during 2010-11.
They expect an
improved operating performance from Integra in 2011-12.
Just Textiles
During the year,
Just Textiles Limited recorded a sales growth of 4.1%. The Company contributed
to the growth in Subject consolidated sales and profitability in 2010-11, as it
did in 2009-10. We expect this trend to continue in the future.
Outlook
The current
economic scenario appears to be robust as the Indian economy is currently
growing at a rate of above 8% annually. It is estimated that by the year 2025,
India would have a national income close to $10 trillion, which would possibly
make it the third largest economy in the world, after the United States and
China.
The expanding
economy and increase in organized retail will have a significant impact on the
textile and clothing industry. Apart from the growth in the export market, we
will continue to focus on a booming domestic market which promises continuing
and healthy growth opportunities.
UNAUDITED
FINANCIAL RESULTS FOR THE NINE MONTHS ENDED ON DECEMBER 31, 2011
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months
Ended |
|
|
|
|
31.12.2011 (Unaudited) |
30.09.2011 (Unaudited) |
31.12.2011 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
843.400 |
817.700 |
2519.900 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
a) (Increase) / Decrease in Stock in Trade |
2.900 |
(50.700) |
(41.100) |
|
|
b) Material Consumed |
312.700 |
379.800 |
1047.800 |
|
|
c) Dyes and Chemicals |
58.600 |
60.100 |
169.700 |
|
|
d) Staff Cost |
95.900 |
88.100 |
275.100 |
|
|
e) Power and Fuel |
87.500 |
92.200 |
260.000 |
|
|
f) Depreciation |
38.800 |
38.800 |
116.000 |
|
|
g) Forex Loss / (Gain) |
29.400 |
(23.200) |
(16.400) |
|
|
h) Other Expenditure |
170.800 |
156.500 |
506.500 |
|
|
i) Total |
796.600 |
741.600 |
2317.600 |
|
|
|
|
|
|
|
3. |
Profit From Operations before Other Income, Interest and
Exceptional Items (1-2) |
46.800 |
76.100 |
202.300 |
|
|
|
|
|
|
|
4. |
Other Income |
-- |
-- |
-- |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
46.800 |
76.100 |
202.300 |
|
|
|
|
|
|
|
6. |
Interest |
74.800 |
74.400 |
222.600 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
(28.000) |
1.700 |
(20.300) |
|
|
|
|
|
|
|
8. |
Exceptional Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit from Ordinary Activities before Tax (7+8) |
(28.000) |
1.700 |
(20.300) |
|
|
|
|
|
|
|
10. |
Tax
Expense |
|
|
|
|
|
a) Current tax |
(3.900) |
1.500 |
-- |
|
|
b) Deferred tax |
3.900 |
1.500 |
-- |
|
|
|
|
|
|
|
11. |
Net Profit from Ordinary Activities after Tax (9-10) |
(28.000) |
1.700 |
(20.300) |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net Profit for the period (11-12) |
(28.000) |
1.700 |
(20.300) |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
363.300 |
363.300 |
363.300 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs |
(0.92) |
(0.10) |
(1.00) |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
13124714 |
13124714 |
13124714 |
|
|
- Percentage of Shareholding |
36.12% |
36.12% |
36.12% |
|
|
|
|
|
|
|
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 |
23207635 |
23207635 |
23207635 |
|
|
- 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) |
63.88% |
63.88% |
63.88% |
Notes:
1.
The above unaudited Financial results for the
quarter/nine month ended 31st December, 2011 have been reviewed by
the audit committee and approved by the Board of Directors respectively at
there meeting held on 16th January, 2012. The Statutory Auditors of
the Company have carried out a Limited Review.
2.
The Company has only one reportable segment -
Textile Product.
3.
The company has a working capital Foreign Currency Loan
of US Dollar 5 Million. If this loan would have been converted at the exchange
rate prevailing as on 31st December, 2011 the liability would have been higher
by Rs. 43.100 Millions and correspondingly profit would have been adversely
affected by Rs. 21.800 Millions for current quarter and Rs. 43.100 Millions for
the nine month ended 31st December, 2011.
The liability on account of foreign currency will be finally
crystallized on repayment. Any gain or loss in the intervening period is
notional. Hence, the company has decided not to recognize the same for the
current quarter.
The auditors have commented on this aspect in their Limited Review
Report for the quarter, as a deviation from Accounting Standard 11
4.
During May 2011, there was a fire in a portion of
one of the manufacturing unit at Nagpur. The material and asset loss caused by
fire are fully insured. Therefore pending settlement of insurance claim the
loss caused is shown as claim receivable net of adhoc payment receipt. On final
settlement the difference in loss and actual claim received, will be charged to
Profit and Loss account
5.
The Board of Directors of the Company at its
meeting held on 29th December, 2011 had considered and approved a
Composite Scheme of Arrangement and Amalgamation between Morarjee Textiles
Limited ('Morarjee') and Five Star Mercantile Limited ('FSML') and Morarjee
Holdings Private Limited ('MHPL') and their respective shareholders ('the
Scheme') under Sections 391 to 394 read with Sections 100 to 103 of the
Companies Act, 1956.
The Scheme is subject to approval by the shareholders and Hon'ble Bombay
High Court. Once the Scheme becomes effective on such approvals, the Garment
business of the Company will stand transferred to a separate company with
effect from the appointed date 1st April, 2011.
All the Company's shareholders will be issued shares of FSML of Face
Value and Paid up Value of Rs. 31- in the ratio of 1:l. Simultaneously, the
Face Value and Paid Up Value of the Company's shares shall stand reduced to Rs.
7/- from
Rs. 10/-
Pending the necessary approval if the scheme is given effect to the
company, the Income from Operations and net profit of the company would be as
under :
(Rs in Millions)
|
Particulars |
For the Quarter Ended 31.12.2011 |
for Nine Months ended 31.12.2011 |
|
Income from
Operations |
777.300 |
2215.100 |
|
Net Profit |
31.100 |
108.200 |
6.
The six investor complaints received during the
quarter have been resolved. No investor complaint is lying unresolved at end of
the quarter.
7.
Corresponding figures of the previous period I year
have been regrouped wherever necessary.
FIXED ASSETS:
- Land - Leasehold
- Building
- Plant & Machinery
- Computer
- Furniture, Fixture
- Office Equipments
- Motor Vehicles
- Designs and Archives
- Computer Software
Website Details:
Corporate Profile
Subject is a
leading player in premium cotton shirting fabric and high fashion printed
fabric globally.
Subject subsidiary
company, Integra Apparelts and Textiles Limited specialises in woven tops,
casual shirts and garments for women.
Subject has a 49%
stake in Just Textiles Limited which is currently engaged in processing various
fabrics installed at its factory in Ambernath, Mumbai.
Subject counts
most of the popular international and domestic brands as it clients, across 20
coutries. Dunhill, Zara, Esprit, Hugo Boss, Next, Paul Smith and Zodiac are
some of its customers. In the domestic market, Subject caters to popular brands
like Louis Philippe, Van Huesen and Zodiac.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 50.31 |
|
|
1 |
Rs. 79.04 |
|
Euro |
1 |
Rs. 65.82 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
|
28 |
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.