MIRA
INFORM REPORT
|
Report Date : |
31.03.2012 |
IDENTIFICATION DETAILS
|
Name : |
RSWM LIMITED (w.e.f 17.11.2006) |
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|
|
Formerly Known
As : |
RAJASTHAN
SPINNING AND WEAVING MILLS LIMITED |
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Registered
Office : |
Kharigram, P. O. Gulabpura,
Bhilwara-311021, Rajasthan |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
17.10.1960 |
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Com. Reg. No.: |
17-8216 |
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Capital
Investment / Paid-up Capital : |
Rs.231.487 Millions |
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|
|
|
CIN No.: [Company Identification
No.] |
L17115RJ1960PLC008216 |
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|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHR02418D /
JDHR02137C |
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PAN No.: [Permanent Account No.] |
AAACR9700M |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturers and
Sellers of Polyester Viscose, Blended Yarn, Blended Fabric, Cotton Yarn, etc. |
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|
No. of Employees
: |
13261 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 12430000 |
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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 an old and well established company having fine track.
General financial position is good. Trade relations are reported as fair.
Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
|
Registered Office : |
Kharigram, P. O.
Gulabpura, Bhilwara-311021, |
|
Tel. No.: |
91-1482-223144 To
50 |
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Fax No.: |
91-1482-223361 |
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E-Mail : |
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Website : |
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Registrar and Share Transfer Agent: |
F-65, First Floor, Okhla Industrial Area, Phase I, New Delhi-110020, |
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Tel. No.: |
91-11-41406149-52 |
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Fax No.: |
91-11-41709881 |
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E-Mail : |
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Corporate Office : |
|
|
Tel. No.: |
91-120-4390300 |
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Fax No.: |
91-120-2531648 /
22531745 |
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E-Mail : |
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Factory 1 : |
Kharigram, P.O.Guiabpura-311 021, District Bhilwara, |
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Factory 2 : |
Mayur Nagar, Lodha, P.O. Banswara-327001, |
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Factory 3 : |
Mandpam, Bhilwara-311001, |
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Factory 4 : |
Rishabhdev-313802, District |
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Factory 5 : |
Ringas - 332404, District Sikar, |
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Factory 6 : |
LNJ Nagar, Mordi, P.O.Banswara-327001, |
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Factory 7 : |
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Overseas
marketing offices |
Located at : |
DIRECTORS
As on 23.09.2011
|
Name : |
Mr. L. N.
Jhunjhunwala |
|
Designation : |
Chairman Emeritus |
|
|
|
|
Name : |
Mr. Ravi
Jhunjhunwala |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Shekhar
Agarwal |
|
Designation : |
Vice Chairman |
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Qualification
: |
B.Tech. (M.E.),
M. Sc. ( |
|
Date of
Appointment : |
13.02.1984 |
|
Previous Employment |
Shashi Commercial
Limited – Chief Executive |
|
|
|
|
Name : |
Mr. Arun K
Churiwal |
|
Designation : |
Managing Director
Chief Executive Officer |
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|
|
|
Name : |
Mr. Kamal Gupta |
|
Designation : |
Director |
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|
Name : |
Mr. D N Davar |
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Designation : |
Director |
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|
Name : |
Mr. Sushil
Jhunjhunwala |
|
Designation : |
Director |
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|
Name : |
Mr. A. N.
Choudhary |
|
Designation : |
Director |
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|
Name : |
N. Shankar |
|
Designation : |
Director
(Nominee, EXIM Bank) |
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|
|
Name : |
Mr. J. C. Laddha |
|
Designation : |
Executive
Director and Chief Executive Officer |
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Qualification
: |
B.Com., F.C.A. |
|
Date of
Appointment : |
01.01.1988 |
|
Previous
Employment: |
Bhilwara Spinners
Limited |
KEY EXECUTIVES
|
Name : |
Mr. Prakash Maheshwari |
|
Designation : |
Chief Executive (Corporate Management Services) |
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|
Name : |
B.M. Sharma |
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Designation : |
Chief Financial Officer |
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Name : |
T.Dev Joshi |
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Designation : |
President (Corporate HR and OD) |
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Name : |
M.L. Jhunjhunwala |
|
Designation : |
President, Mumbai |
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Business Head |
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|
Name : |
J.C. Laddha |
|
Designation : |
Chief Executive (Yarn and TPP) |
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|
|
Name : |
S.C. Garg |
|
Designation : |
Chief Executive (Melange Yarn) |
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|
Name : |
Y.C. Gupta |
|
Designation : |
Chief Executive (Denim) |
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|
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|
Name : |
Nirmal Jain |
|
Designation : |
Chief Executive (Fabric) |
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|
|
|
Name : |
Mr. Surender Gupta |
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Designation : |
Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,808,068 |
7.81 |
|
|
5,163,816 |
22.31 |
|
|
6,971,884 |
30.12 |
|
|
|
|
|
|
4,934,770 |
21.32 |
|
|
4,934,770 |
21.32 |
|
Total shareholding of Promoter and Promoter Group (A) |
11,906,654 |
51.44 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1,538,190 |
6.64 |
|
|
12,800 |
0.06 |
|
|
1,732 |
0.01 |
|
|
860,399 |
3.72 |
|
|
100 |
- |
|
|
2,413,221 |
10.42 |
|
|
|
|
|
|
2,772,669 |
11.98 |
|
|
|
|
|
|
3,437,146 |
14.85 |
|
|
2,604,261 |
11.25 |
|
|
14,738 |
0.06 |
|
|
14,738 |
0.06 |
|
|
8,828,814 |
38.14 |
|
Total Public shareholding (B) |
11,242,035 |
48.56 |
|
Total (A)+(B) |
23,148,689 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
23,148,689 |
- |
(1)
Indian
Individuals
/ Hindu Undivided Family
Individual
shareholders holding nominal share capital up to Rs. 1 lakhBUSINESS DETAILS
|
Line of Business : |
Manufacturers and
Sellers of Polyester Viscose, Blended Yarn, Blended Fabric, Cotton Yarn, etc. |
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Products : |
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Brand Names : |
"MAYUR" |
PRODUCTION STATUS
As on 31.03.2011
|
Particulars |
Unit
|
Installed
Capacity |
|
Yarn |
|
|
|
Spindles |
Nos. |
336608 |
|
Rotors |
Nos. |
1680 |
|
Fabric |
|
|
|
Looms |
Nos. |
104 |
|
Processing |
(Lac Mtr./Annum) |
216 |
|
Denim Fabric (consisting of 7032 spindles and 720 rotors for spinning and 72 looms
for weaving) |
(Lac Mtr./Annum) |
140 |
|
Power |
|
|
|
Thermal |
(MW) |
46 |
|
HFO base |
(MW) |
38 |
GENERAL INFORMATION
|
No. of Employees : |
13261 (Approximately) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S. Bhargava Associates Chartered Accountant |
|
Address : |
Jaipur |
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|
Name : |
A. L. Chechani and Company Chartered Accountant |
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Address : |
Ahmedabad |
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Enterprises that directly
or indirectly through one or more intermediaries, control or were controlled by or are under common control
with the reporting enterprise (this includes holding companies, subsidiaries
and Fellow
subsidiaries). |
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|
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|
|
Enterprises over
which any person described in (c) or (d) is able to exercise significant
influence. |
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CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
47500000 |
Equity Shares |
Rs.10/- each |
Rs.475.000 Millions |
|
2500000 |
Optionally Convertible Redeemable Preference Shares |
Rs.150/- each |
Rs.375.000 Millions |
|
|
TOTAL |
|
Rs.850.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23148689 |
Equity Shares |
Rs.10/- each |
Rs.231.487
Millions |
|
|
|
|
|
OF THE ABOVE
1. Equity Share Capital includes 1,35,13,607 Equity Shares of Rs.135.136 millions issued as fully paid up Bonus Shares by Capitalization of Reserves in earlier years.
2. Equity Share Capital includes 12,28,689 issued for consideration other than cash, pursuant to the Scheme of merger of erstwhile Jaipur Polyspin Limited and Mordi Textiles & Processors Limited as approved by the Hon'ble High Court of Rajasthan.
3. 10 % Redeemable Preference Shares were redeemed on 30th
May 2010.
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 |
231.487 |
281.497 |
481.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2850.686 |
2026.452 |
1723.600 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Government Capital Grant |
25.670 |
34.318 |
30.500 |
|
|
6] Government Capital Grant |
0.000 |
0.000 |
37.400 |
|
|
NETWORTH |
3107.843 |
2342.267 |
2273.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11384.695 |
10306.054 |
10686.900 |
|
|
2] Unsecured Loans |
25.491 |
17.932 |
9.500 |
|
|
TOTAL BORROWING |
11410.186 |
10323.986 |
10696.400 |
|
|
DEFERRED TAX LIABILITIES |
417.812 |
179.212 |
154.600 |
|
|
|
|
|
|
|
|
TOTAL |
14935.841 |
12845.465 |
1312.400 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8020.247 |
7968.319 |
8597.000 |
|
|
Capital work-in-progress |
290.042 |
52.353 |
63.300 |
|
|
|
|
|
|
|
|
INVESTMENT |
601.544 |
601.544 |
644.400 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4330.084
|
2451.487 |
1645.200
|
|
|
Sundry Debtors |
2053.067
|
1573.734 |
1465.700
|
|
|
Cash & Bank Balances |
64.580
|
48.184 |
16.800
|
|
|
Export Incentives Receivable |
361.908
|
224.759 |
135.900
|
|
|
Other Current Assets |
483.473
|
527.385 |
568.400
|
|
|
Loans & Advances |
845.123
|
579.222 |
853.600
|
|
Total
Current Assets |
8138.235
|
5404.771 |
4685.600 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
649.344
|
259.095 |
794.900
|
|
|
Other Current Liabilities |
728.777
|
619.206 |
|
|
|
Provisions |
736.106
|
308.063 |
80.400
|
|
Total
Current Liabilities |
2114.227
|
1186.364 |
875.300
|
|
|
Net Current Assets |
6024.008
|
4218.407 |
3810.300
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
4.842 |
9.000 |
|
|
|
|
|
|
|
|
TOTAL |
14935.841 |
12845.465 |
1312.400 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Turnover |
19505.870 |
15307.617 |
12925.500 |
|
|
|
Other Income |
233.892 |
174.843 |
87.800 |
|
|
|
TOTAL (A) |
19739.762 |
15482.460 |
13013.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Increase (Decrees) in Stocks |
(431.436) |
(36.031) |
203.900 |
|
|
|
Material |
11322.063 |
8714.833 |
7751.200 |
|
|
|
Operating and Other Expenditure |
5365.527 |
4874.803 |
4288.500 |
|
|
|
Corporate Guarantee Development Express |
144.205 |
0.000 |
316.500 |
|
|
|
TOTAL (B) |
16400.359 |
13553.605 |
12560.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3339.403 |
1928.855 |
453.200 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
725.717 |
567.317 |
679.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2613.686 |
1361.538 |
(226.700) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
801.468 |
876.398 |
726.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
1812.218 |
485.140 |
(953.400) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
582.572 |
124.836 |
314.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
1229.646 |
360.304 |
(638.600) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
330.615 |
298.173 |
1071.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
125.000 |
40.000 |
0.000 |
|
|
|
Preference Share Capital Redemptions
Reserve |
50.010 |
199.980 |
125.000 |
|
|
|
Interim Dividend on Equity Share |
231.487 |
0.000 |
0.000 |
|
|
|
Proposed Dividend on Equity Share |
115.743 |
57.872 |
8.400 |
|
|
|
Dividend on Preference Share |
0.822 |
17.493 |
1.400 |
|
|
|
Tax on Dividend |
57.360 |
12.517 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
979.839 |
330.615 |
298.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
7484.597 |
5391.202 |
3641.429 |
|
|
TOTAL EARNINGS |
7484.597 |
5391.202 |
3641.429 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
283.233 |
148.585 |
165.767 |
|
|
|
Stores & Spares |
114.364 |
105.146 |
84.925 |
|
|
|
Capital Goods |
207.457 |
7.080 |
6.967 |
|
|
TOTAL IMPORTS |
605.054 |
260.811 |
257.659 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
53.08 |
14.68 |
(28.01) |
|
|
|
Diluted |
53.08 |
14.68 |
(28.01) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 1st
Quarter |
30.09.2011 2nd Quarter |
31.12.2011 3RD
Quarter |
|
Net Sales |
4444.400 |
5151.400 |
4547.100 |
|
Total Expenditure |
3995.800 |
4881.100 |
4257.400 |
|
PBIDT (Excl OI) |
448.600 |
270.300 |
289.700 |
|
Other Income |
19.400 |
27.100 |
20.700 |
|
Operating Profit |
468.000 |
297.400 |
310.400 |
|
Interest |
229.300 |
235.400 |
243.800 |
|
Exceptional Items |
(53.700) |
(16.700) |
0.000 |
|
PBDT |
185.000 |
45.300 |
66.600 |
|
Depreciation |
216.800 |
219.800 |
221.100 |
|
Profit Before Tax |
(31.800) |
(174.500) |
(154.500) |
|
Tax |
0.000 |
(65.200) |
(50.400) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(31.800) |
(109.300) |
(10.410) |
|
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 |
(31.800) |
(109.300) |
(10.410) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
6.23
|
2.33 |
(4.91) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.29
|
3.17 |
(7.38) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.22
|
3.63 |
(7.68) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09
|
0.03 |
(0.42) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.35
|
4.91 |
5.09 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.85
|
4.56 |
5.35 |
LOCAL AGENCY FURTHER INFORMATION
BUSINESS
DESCRIPTION
Subject is engaged in the manufacturing of synthetic and
blended spun yarn, polyvinyl fabric and denim fabric. It offers range of products
in terms of fiber blends, counts and shades. Fibers processed by the Company
include polyester, viscose, acrylic, cotton, wool, rayon, nylon, silk,
polyamide and linen. It produces a range of specialty products made out of
unorthodox fibers, such as soya protein, milk protein, bamboo, bamboo charcoal
and branded fibers, such as Tencel, Greenplus, Protex, Teijin Conex and Tworon.
Its yarn portfolio is classified into three categories: greige yarn, dyed yarn
and melange yarn. Its greige yarns are produced from synthetic fibers, such as
polyester and viscose, blends of synthetic, natural fibers and pure cottons.
Melange yarns are products made from cotton and its blends. It manufactures
blended suiting fabrics and offers them under the Mayur brand. In March 2011,
its RSWM International B.V. announced that it has been voluntarily liquidated.
For the fiscal year ended 31 March 2010, Subject limited Revenues increased 15%
to RS16.81B. Net income totaled RS318M vs. a loss of RS794.4M. Revenue reflects
an increase in income from Yarn and higher income from Fabric, segments. Net
income reflects a decrease on purchase of traded goods; lower other
expenditure, a decline in interest expenses, lower loss from stock in trade
& work in progress and the presence of operating profit margin.
MANAGEMENT
DISCUSSION AND ANALYSIS
GLOBAL ECONOMY
The global economy grew at a robust 4.8% in 2010 against (2.9%) in 2009. Both advanced and emerging economies contributed to this recovery.
Advanced economies sustained their moderate growth, owing to
stronger than- expected consumption in the
However, pockets of vulnerability persisted; real estate
markets and household incomes remained weak in some advanced economies.
Financial turbulence re-emerged in
Natural disasters – floods, earthquakes and droughts, among others – took a massive toll on human life, resulting in wealth erosion.
Global GDP is projected to increase by 3.3 and 3.6% during 2011 and 2012, with developing economies expanding by 6% or more each year, more than twice the 2.4 and 2.7% growth expected for high-income countries. Unfortunately, these growth rates are unlikely to eliminate unemployment and slack in the hardest-hit economies and sectors.
Growth in high-income and developing countries is expected to be slower in 2011, reflecting the slowdown already observed in the second half of 2010 before gaining momentum towards mid 2011 and settling at rates close to their longer run potential.
The recovery is likely to be supported by capital flows to developing countries in 2011 and 2012. However, carry-trade flows are expected to decline, as monetary policies tighten in high income countries and interest rates rise. As a result, total inflows to developing countries will rise less quickly at just over 10% in 2011 and under 5% in 2012.
INDIAN ECONOMY
The index for six core industries (comprising crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel), with a weight of 26.68% in the Index of Industrial Production (IIP), grew by 5.6% during April 2010 to January 2011, compared with a growth of 5.5% during the corresponding period in 2009-10.
Given the strong underlying momentum, a sustained increase in services sector growth, normal agricultural output and strengthening private consumption demand are expected. Further, a substantial government thrust on infrastructure is expected to sustain growth, propelling the industrial sector. GDP is expected to grow 8-8.5% during 2011 as private demand gathers momentum.
BUSINESS OPERATIONS
Subject is a leading player in the yarn and fabric businesses, with its operations conducted across eight locations in Rajasthan. Periodic investments in cutting-edge technology and skills enabled the manufacture of quality products of international standard.
Yarn: The Company is a dominant player in the Indian yarn space with a wide product range, comprising grey, dyed and mélange yarns. Its focus is on developing unique yarns that grow the market size and share and on delivering high-quality yarn to discerning weavers.
Fabrics: The Company possesses a comprehensive product mix comprising an extensive fabric range for classic formal and semi-formal wear. This includes unique blends (polyester viscose in different yarn counts), shades and finishes. The fabric is sold in the domestic market under the value-formoney ‘Mayur’ brand and LNJ Denim.
YARN
HIGHLIGHTS, 2010-11
SHOP FLOOR
- Production grew 9.48% from 85,784 MT in 2009-10 to 93,913 MT
- Expanded capacity from 2,98,208 spindles as on 31st March, 2010 to 3,36,608 spindles as on 31st March, 2011
MARKET PLACE
- Increased sales volumes by 7.57% from 85,981 MT in 2009-10 to 92,492 MT
- Realizations per kg increased 17.74% from `150.09 in 2009-10 to `176 in 2010-11
- Exports increased 38.97% from Rs. 5284.800 millions in 2009-10 to `734.44 crore; share of export revenues grew 386 bps from 41.05% in 2009-10 to 44.91%
- Created five new export destinations
PRODUCT DEVELOPMENT
- More than 5% revenue was earned from new product sales in 2010-11 against less than 5% in 2009-10
BUSINESS OVERVIEW
Subject yarn division is the flagship Company, contributing over 85% to revenues in 2010-11. This business is credited with laying the foundation for lateral growth of the LNJ Bhilwara Group. Some salient features:
- Commenced operations at Bhilwara, Rajasthan in 1961
- Started with an installed capacity of 12,500 spindles
- Currently, the division boasts of five state-of-the-art manufacturing facilities with a cumulative 336,608 spindles
- The Company’s facilities are ISO 9001:2000 and ISO 14001-certified
- Other certifications include Oeko-Tex, Control Union Certification, and SA- 8000:2001. Certification by BSI Management Systems and Fair Trade certification by FLO-CERT
The Company possesses one of the widest yarn ranges of fibre blends, counts and shades; these are broadly classified into three categories — grey, dyed and melange yarn. Processed fibres include polyester, viscose, acrylic, cotton, wool, rayon, nylon, silk, polyamide and linen. A range of speciality products are also made out of unorthodox fibres (soya protein, milk protein, bamboo and bamboo charcoal) and branded fibres (Tencel®, Greenplus® and Protex®). Many of these were developed for specific applications (natural stretch, flame-retardant and for industrial use).
Over 25% of the output is marketed to brand-enhancing Indian
textile players, namely Raymonds, Siyaram, Welspun, Alok, Arviva, among others.
The Company’s footprint extends across 70 nations, with the
FEBRIC
HIGHLIGHTS, 2011
SHOP FLOOR
- Production increased 16% from 91.41 lac metres in 2009-10 to 106.12 lac metres
- Fabric processing increased 3.78% from 142.29 lac metres in 2009-10 to 147.67 lac metres
MARKET PLACE
- Sales volume increased 8.10% from 95.68 lac metres in 2009-10 to 103.78 lac metres
- Realization per metre grew 8.48% over the previous year
PRODUCATION
DEVELOPMENT
New variants in the wedding and party wear collection facilitated an increase in the share of value-added products by 10%
BUSINESS OVERVIEW
Mayur Suitings is a popular brand with a pan-India presence.
It is manufactured by Subject at its vertically-integrated state-of-the-art
plant at Mordi (Rajasthan), using sophisticated equipment from
The Company has a manufacturing capacity of 9.3 million metres a year of fabric with an annual fabric processing capacity of 21 million metres. Stringent quality parameters institutionalized at its TQM-implemented plant enabled adherence to global standards. The unit is ISO 9001:2000-accredited and operations are managed by a team of amore than 1,100 members with an average 10-year experience in the business.
A comprehensive product mix comprises fabrics for formal and
semiformal wear, covering unique blends of polyester and viscose in different
yarn counts, shades and finishes. A robust distribution network comprises
delcredere agents and wholesale dealers who service more than 2,000 retailers
who, in turn, cater to trend conscious consumer segments across
Technology adoption and process fine tuning ensured complete water recycling in the fabric dyeing and finishing segments. Bulk of the water was recycled in the process house; the rest was used for horticultural purposes. Around 7,000 trees are planted annually
DENIM
HIGHLIGHTS, 2010-11
SHOP FLOOR
- Production grew 1.99% from 122.99 lac metres in 2009-10 to 125.44 lac metres, largely owing to improved productivity
MARKET PLACE
- Revenues grew about 45% over the previous year
- Exports increased 66% over the previous year
- Proportion of value-added products sales increased significantly
- Realization per unit of fabric increased 27% over the previous year
PRODUCT DEVELOPMENT
- Successfully developed the new power stretch denim with 50% stretch for women wear
- Introduced the melange multi-colour denim, a first in the world
BUSINESS OVERVIEW
The denim division commissioned operations (installed capacity 140 lac metres per annum) with state-of-theart facilities and certifications: Global Organic Textile Standards (GOTS), Global Recycle Standards, SA 8000, Organic Exchange (OE blended and/or OE 100), OEKO-TEX 100 and REACH.
Though a small player, the division possesses rich expertise in value addition to customize fabric around diverse applications. Over 30% of its massive product range of 3,000 variants comprised value-added products. The product range comprises denim out of denim (recycled denim), work wear like anti- bacterial hydrophobic, hydrophilic, anti-odour and fire-retardent, poly spectrum in 65 shades, organic cotton fabric, power stretch, plasma denim, rich blended denims of cotton with linen, cotton with Kashmir wool, cotton with hemp, cotton with viscose, 100% tencil, among others.
In addition to catering to domestic denim majors, the
Company enjoys an expansive global footprint across 30 nations. It also caters
to ‘collections’ for the global fashion industry and its international clients
include Diesel, Marlboro, Levis, VF, GAP, C&A, Ann Taylor, Polo, Zara, H and M, Jack and Jones,
Tommy Hilfiger, J. Crew, Mustang, Sand, Leconet Hemant, Monsoon, United Colors
of Benetton and GYMBOREE, among others. To strengthen recall, the division
participates in international exhibitions and trade fairs. It participates in
large exhibitions in
PROFIT & LOSS
ACCOUNT
ABSOLUTES
Revenues increased 27.53% from Rs.15384.900 millions in 2009- 10 to Rs.19621.600 millions in 2010-11
EBIDTA grew 73.13% from Rs.1928.800 millions 2009-10 to Rs.3339.400 millions in 2010-11
PBT grew 273.57% from Rs.485.100 millions in 2009-10 to Rs.1812.200 millions in
2010-11
PAT grew 241.27% from Rs.360.300 millions in 2009-10 to Rs.1229.600 millions in 2010-11
DERIVATES
- EBIDTA margin grew 445 bps from 12.60% in 2009-10 to 17.11% in 2010-11
- PAT margin grew 390 bps from 2.35% in 2009-10 to 6.30% in 2010-11.
- Interest cover strengthened from 3.39 in 2009-10 to 4.60 in 2010-11
- Earning per share increased from `14.68 in 2009-10 to `53.08 in 2010-11
REVENUE
Net sales grew 27.42% from Rs.15307.600 millions in 2009-10 to Rs.19505.900 millions in 2010-11. This was largely due to increased production and enhanced realizations from the yarn division (the Company’s flagship business division). The fabric and denim division also recorded increased production volumes and enhanced realizations compared with the previous year, accelerating revenue growth over the previous year. Exports added to the Company’s growth momentum. Yarn exports accelerated by more than 35% while fabric exports (including denim) grew by more than 25%.
OTHER INCOME
Other income increased 33.75% from Rs.174.800 millions in 2009-10 to Rs.233.800 millions in 2010-11, largely due to a write back of provisions made earlier for doubtful loans and a decline in the value of investments.
COST ANALYSIS
Operating cost increased 22.79% from Rs.13589.600 millions in 2009-10 to Rs.16687.500 millions in 2010-11, primarily owing to increased raw material costs. Interestingly, operating cost as a proportion of net sales declined 322 bps from 88.77% in 2009-10 to 85.55% in 2010-11, reflecting efficient resource utilization.
Materials consumed: Raw material cost increased 29.91% from Rs.8714.800 millions in 2009-10 to Rs.11322.000 in 2010-11, largely due to increased operational scale and procurement prices in line with global pricing.
Personnel expenses: Employee expenses increased from Rs.1208.300 millions in 2009-10 to Rs.1497.100 millions in 2010- 11, owing to an increase in the work force and a rise in salaries and wages The increase in employee remuneration was more than compensated by an increase in production at all the Company’s manufacturing locations.
Power and fuel: Despite increased production, the energy bill declined from Rs.1751.700 millions in 2009-10 to Rs.1723.900 millions in 2010-11, owing to significant energy saving measures implemented by the team in 2010-11.
Selling expenses: Marketing expenses increased 22.20% from Rs.698.100 millions in 2009-10 to Rs.853.100 millions in 2010-11, primarily due to an increase in ocean freight and an increase in brokerage and commission on sales.
BALANCE SHEETS
ABSOLUTES
- Reserves grew 40.67% from Rs.2026.400 millions as on 31st March, 2010 to Rs.2850.700 millions as on 31st March, 2011
- Gross block grew 5.18% from Rs.14440.100 millions as on 31st March, 2010 to Rs.15188.700 millions as on 31st March, 2011
DERIVATES
- ROE improved 2,254 bps from 15.38% in 2009-10 to 37.92%
- ROCE improved 865 bps from 8.19% in 2009-10 to 16.84%
- Debt equity ratio declined from 4.39 as on 31st March, 2010 to 3.51 as on 31st March, 2011
CAPITAL EMPLOYED
Capital employed increased 17.32% from `1,284.55 crore as on 31st March, 2010 to `1,507.04 crore as on 31st March, 2011, owing to an increase in reserves, surplus and secured debt. The judicious application of each rupee invested in the business was reflected in the improved return on capital employed (ROCE): From 8.19% in 2009-10 to 16.84% in 2010-11.
SOURCES OF FUNDS
Shareholders’ funds: Net worth increased 32.68% from Rs.2342.300 millions as on 31st March, 2010 to Rs.3107.800 millions as on 31st March, 2010. This was largely due to an increase in reserves and surplus from Rs.2026.400 millions as on 31st March, 2010 to Rs.2850.700 millions as on 31st March, 2011. The Company ploughed Rs.824.200 millions from its net profit into its reserves account. The share capital declined from Rs.281.400 millions in 2009-10 to Rs.231.400 millions in 2010-11 due to redemption of 10% redeemable preference shares. The promoter group held 51.44% in the Company as on 31st March, 2011.
External funds: The debt portfolio increased 10.52% during the year. The Company’s debt (fully secured) stood at
Rs.11384.600 millions as on 31st March, 2011 as against Rs.10306.000 millions as on 31st March, 2010 The debt-equity ratio was 3.51:1 as on 31st March, 2011 (4.39:1 as on 31st March, 2010), owing to an increase in the Company’s net worth. Interest cost increased 27.92% from Rs.567.300 millions in 2009-10 to Rs.725.700 millions in 2010-11. Interestingly, interest cover strengthened from 3.40 in 2009-10 to 4.60 in 2010-11, reflecting the Company’s growing comfort in servicing debt.
APPLICATION OF FUNDS
Fixed assets: Gross block increased 5.18% from Rs.1440.100 millions as on 31st March, 2010 to Rs.15188.700 millions as on 31st March, 2011, due to additions in plant, machinery (spindles) and equipment But the provision for depreciation decreased from Rs.876.400 millions in 2009-10 to Rs.801.500 millions, due to the declining residual value of the historical gross block. The Company plans to invest Rs.15000.000 millions across 2011-16 in capacity expansion, to be funded through a prudent mix of debt and equity.
Net current assets: Consequent to increasing business operations, net current assets increased 45.96% from Rs.4218.400 millions as on 31st March, 2010 to Rs.6024.000 millions as on 31st March, 2011. Net current assets as a proportion of capital employed increased from 32.83% as on 31st March, 2010 to 40.85% as on 31st March, 2011, reflecting an increased blockage of funds in managing day-today operations.
Inventories: The huge inventory balance largely reflects raw cotton stock as the Company purchased its annual raw cotton requirements at the peak season to avail of reduced procurement cost benefits.
Debtors: Increased sales volumes in yarns and fabrics (including denims) resulted in a sizeable increase in the absolute value of debtors. The quality of outstanding receivables is reflected in an important statistic as more than 99% of the receivables are pending for less than six months. The Company maintained a strict vigil on its receivables as it assigned credit limits to customers; it ensured recovery of old receivables before new dispatches, facilitating a debtors’ cycle reduction
Creditors: The Company ensured that all payments were made to its vendors within the scheduled date, strengthening business relations and creating a platform for better business deals.
OPERATIONAL
PERFORMANCE
THe Directors gladly inform the Members that the financial year under review, which happens to be the 50th Anniversary year (Golden Jubilee) of the Company and the LNJ Bhilwara Group, recorded the best performance of the Company since inception in terms of both the turnover and profitability.
The Company registered an increase of 27.54% in its gross turnover from Rs.15384.900 millions in 2009-10 to Rs.19621.600 millions in 2010-11. This increase in turnover has been primarily on account of increase in yarn production to 93913 MT against 85784 MT in previous year and fabric production to 23.16 million metres from 21.44 million metres. The Export turnover increased to Rs.7836.200 millions in 2010-11 from Rs.5667.000 millions in 2009-10 and Domestic turnover to Rs.11785.400 millions in 2010-11 from Rs.9717.900 millions in the previous year. The details of analysis of performance of the Company and it’s businesses, including initiatives in the areas of Human Resources and Information Technology, have been presented in the section on Management Discussion and Analysis of this Annual Report Working results of last three financial years 2008-09 to 2010- 11 are given in Annexure I and form part of this report.
EXPANSION AND
MODERNIZATION
The Directors in their previous report had talked about expansion plan for addition in spindle age, replacement of old machinery, up-gradation of some equipments at various units of the Company, involving capital expenditure of Rs.700.000 millions. The Directors feel pleasure in informing members that the above expansion plan was successfully completed during the year under review and has started yielding incremental contributions to the turnover and profitability of the Company.
The Directors gladly inform the members that encouraged with the performance of the Company the Directors have chalked out “LAKSHYA 2016” programme with a targeted turnover of Rs.45000.000 millions and involving a capex of Rs.15000.000 millions to be implemented in phased manner to be achieved by the year 2016. The necessary details are being worked out and members will be updated on this plan in due course. The Directors are hopeful that with the support of all stakeholders, the Company will be able to achieve the target.
SUBSIDIARY COMPANIES
& JOINT VENTURE
During the year the Company set off the liability against the Corporate Guarantee given to Exim Bank in connection with the loan availed by RSWM International B.V., the wholly owned subsidiary Company, by paying off an amount of Rs.144.200 millions to Exim Bank.
The Directors further inform the members that RSWM
International B.V., the wholly owned subsidiary Company has since been
voluntarily liquidated within the legal frame-work of
CONTINGENT
LIABILITIES
|
Particulars |
31.03.2011 |
31.03.2010 |
|
|
Rs. in Millions |
|
|
A. Contingent liabilities not provided for |
|
|
|
i) Excise and
Custom Duties, Sales Tax and Other demands disputed by the Company |
23.075 |
23.030 |
|
ii) Claims not acknowledged
by the Company |
6.938 |
5.345 |
|
iii) Default
Deferred Payment Guarantee provided to :- |
|
|
|
Exim Bank for
securing the loans given by them to |
0.000 |
0.000 |
|
RSWM International
B. V. Netherlands |
0.000 |
0.000 |
|
- Outstanding Loan |
0.000 |
162.089 |
|
iv) Default
Deferred Payment Guarantee for securing the loan taken by CTL |
|
|
|
Exim Bank, ICICI,
IDBI, Canara Bank, SBI and SBOM |
|
|
|
- Outstanding Loan |
104.773 |
218.294 |
|
{Maximum amount
for which Company may be liable during next 12
Months – Rs28.996 millions} |
|
|
|
v) Un-expired
Letters of Credit, for which counter guarantee given by the Company |
418.572 |
41.379 |
|
vi) Counter
guarantees given by the Company in respect of Guarantees given by the
Company's Bankers. |
94.226 |
96.478 |
|
vii) The Company
has provided Guarantee in favour of International Finance Corporation with
M/s. HEG Limited on Joint and several basis on behalf of M/s. AD Hydro Power
Limited. |
60.000 |
60.000 |
|
B. Obligations and commitments outstanding : |
|
|
|
i) Estimated value
of contracts remaining to be executed on Capital Account and not provided for |
2458.223 |
83.214 |
|
ii) Bills
Discounted with Banks |
1173.716 |
793.550 |
UNAUDITED (STAND
ALONE) FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTH ENDED 30.12.2011
|
Particulars |
QUARTER ENDED |
Nine Month Ended |
|
|
|
Rs. in Millions |
||
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
Income |
|
|
|
|
a) Net Sales / Income from Operations |
4537.800 |
5142.700 |
14118.300 |
|
b) Other Operating Income |
9.300 |
8.700 |
24.600 |
|
Total Operating Income |
4547.100 |
5151.400 |
14142.900 |
|
Expenditure |
|
|
|
|
(a) (Increase)/decrease in Stock in Trade |
(191.500) |
346.800 |
(708.700) |
|
(b) Consumption of Raw Materials |
3099.200 |
3137.900 |
9858.800 |
|
(c) Purchase of traded goods |
26.000 |
22.000 |
64.500 |
|
(d) Employees Cost |
419.000 |
429.000 |
1244.200 |
|
(e) Depreciation |
437.000 |
421.500 |
1310.200 |
|
(f) Other Expenditure |
221.100 |
219.800 |
657.700 |
|
(g) Power and Fuel |
467.700 |
523.900 |
1435.800 |
|
Total Expenditure |
4478.500 |
5100.900 |
13862.500 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
68.600 |
33.800 |
280.400 |
|
Other Income |
20.700 |
27.100 |
67.200 |
|
Profit/(Loss) before Interest and Exceptional items |
89.300 |
60.900 |
347.600 |
|
Interest |
243.800 |
235.400 |
708.500 |
|
Profit / (Loss) after interest before Exceptional items |
(154.500) |
(174.500) |
(360.900) |
|
Exceptional Items |
-- |
-- |
-- |
|
Provision for Taxation |
(50.400) |
(65.200) |
(115.600) |
|
Net Profit/(Loss) From Ordinary activities after Tax |
(104.100) |
(109.300) |
(245.300) |
|
Extraordinary Items |
|
|
|
|
Net Profit/(Loss) for the period |
|
|
|
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
231.500 |
231.500 |
231.500 |
|
Reserves (Excluding Revaluation Reserves) |
|
|
|
|
Public Share
Holding |
|
||
|
Before
Extraordinary Items |
(4.50) |
(4.72) |
(10.60) |
|
-Basic |
(4.50) |
(4.72) |
(10.60) |
|
-Diluted |
|
|
|
|
Average of Public Share Holding |
11242035 |
11242035 |
11242035 |
|
- Number of Shares |
48.56 |
48.56 |
48.56 |
|
- Percentage of shareholding |
|
|
|
|
Promoters and Promoter group share holding |
|
|
|
|
a) Pledged / Encumbered |
|
||
|
- Number of Shares |
-- |
-- |
-- |
|
- Percentage of share (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
- Percentage of shares(as a % of the total share capital of the company) |
-- |
-- |
-- |
|
b) Non-encumbered |
|
||
|
- Number of Shares |
11906654 |
11906654 |
11906654 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
100% |
100% |
100% |
|
- Percentage of Share (as a % of the total share capital of the company) |
51.44% |
51.44% |
51.44% |
SEGMENT REVENUE RESULTS AND CAPITAL EMPLOYED
|
Particulars |
QUARTER ENDED |
Nine Month Ended |
|
|
|
Rs. in Millions |
||
|
|
31.12.2011 |
30.09.2011 |
31.12.2011 |
|
Segment Revenue |
3876.100 |
4394.900 |
12099.600 |
|
a) Yarn* |
837.100 |
917.700 |
2543.100 |
|
b) Fabric |
(0.700) |
3.300 |
2.600 |
|
c) Others |
4712.500 |
5315.900 |
14645.300 |
|
Total |
165.400 |
164.500 |
502.400 |
|
Less - Inter Seqment Revenue |
|
|
|
|
Net Sales /Income from |
4547.100 |
5151.400 |
14142.900 |
|
Operations |
|
|
|
|
Segment Result |
|
|
|
|
(Earnings (+)/Loss (-) before tax and Interest) |
|
|
|
|
a) Yarn* |
56.600 |
(39.500) |
130.300 |
|
b) Fabric |
41.200 |
108.300 |
242.200 |
|
Total |
97.800 |
68.800 |
372.500 |
|
Less :- Interest |
243.700 |
235.500 |
708.500 |
|
Ii Other un-allocable expenditure |
29.300 |
34.900 |
92.100 |
|
Iii Un-allocable income |
(20.700) |
(27.100) |
(67.200) |
|
Total Profit Before Tax |
(154.500) |
(174.500) |
(360.900) |
|
Capital Employed |
|
|
|
|
(Segment assets- Segment liabilities) |
|
|
|
|
a) Yarn* |
9646.000 |
9640.300 |
9646.000 |
|
b) Fabric |
2995.800 |
3066.200 |
2995.800 |
|
Total |
12641.800 |
12706.500 |
12641.800 |
|
Other assets |
2134.500 |
1770.100 |
2134.500 |
|
Total Capital Employed |
14776.300 |
14476.600 |
14776.300 |
• Include Captive & Standby Power
Notes:
1. The auditors have conducted limited review of the financial results for the quarter 8 half year ended September 30, 2011. The results were reviewed by the Audit Committee. The Board has taken on record the financial results at its meeting held on 4TH February 2012.
2. There was no Investors’ complaint pending at the beginning of the quarter ended 30th September, 2011.The Company received 6 complaints and resolved all of them during the quarter.
3. During the year quarter ended 30th September loss of R.16.700 millions due to reduction in valuation of cotton was shown as exceptional items which has since been regrouped with consumption of raw material
4. On adoption of AS-30 fair value of hedged forex exposure as on 31st December 2011 was market to market and loss of Rs.92.721 millions has been carried to hedging reserve account.
5. The figures of the previous year/ Period have been regrouped/ recast wherever considered necessary.
FIXED ASSETS
- Land
- Roads and Building
- Plant and Machinery
- Electric Fitting and Water Supply Installation
- Furniture Fixture and Other Equipments
- Vehicle
AS PER WEB DETAILS
PROFILE
Subject, the flagship Company of LNJ Bhilwara Group, is a professionally managed, progressive and growth-oriented and one of the largest textile manufacturer in the country, primarily producing synthetic, blended, mélange, cotton and specialty yarn, fabric and denim.
Subject was established in 1960, an IS/ISO 9001:2001 and SA 8000:2008 accredited Company, has 8 state-of-the-art manufacturing plants which moved from strength to strength and today, it operates about 3,60,000 spindles, having 1,00,000 MTA yarn capacity. It is equipped with in-house fabric weaving and processing facilities of about 35.6 MMA for fabric and denim fabric. Subject is self - reliant in Captive Power Generation of 46 MW that feeds all its integrated units spread across the state of Rajasthan. Modern technologies and world class skills have enabled the Company to produce the finest quality adhering to stringent international norms.
The main competitive strength of the Company is its innovative product range that includes specialty, functional, technical and eco-friendly yarn and fabric alongwith basic and commodity products. The Company recently has shifted its focus to produce more and more natural textiles in order to meet the emerging needs of the market.
RSWM exports a complete range of yarn and fabric to over 70
countries worldwide, giving the Company a large, visible presence across
Europe,
BOARD OF DIRECTOR
Shri. Ravi Jhunjhunwala is Non-Executive Chairman of the Board of Subject. Mr. Jhunjhunwala holds a degree in B.Com (Hons.) and is also an MBA. He joined the Board of the Company on 18th May, 1979. Mr. Jhunjhunwala is an industrialist with diversified business experience.
SHEKHAR AGARWAL
NON-EXECUTIVE VICE CHAIRMAN OF THE BOARD
Shri. Shekhar Agarwal is Non-Executive Vice Chairman of the
Board of Subject. He holds a degree in B. Tech (Mech) from IIT,
AMAR NATH CHOUDHARY
NON-EXECUTIVE INDEPENDENT DIRECTOR
Shri Amar Nath Choudhary is Non-Executive Independent
Director Subject. Shri Choudhary is a Graduate in Commerce and LLB, FCA, FCS. Shri
Choudhary has experience of Textile Industry. He is Director of Vitarich Agro
Food (
ARUN KUMAR CHURIWAL
CHIEF EXECUTIVE OFFICER, MANAGING DIRECTOR, EXECUTIVE DIRECTOR
Shri. Arun Kumar Churiwal is Chief Executive Officer,
Managing Director, and Executive Director of Subject. Shri Churiwal graduated
from
KAMAL K. GUPTA
NON-EXECUTIVE INDEPENDENT DIRECTOR
Dr. Kamal K. Gupta, Ph.D., is Non-Executive Independent Director of Subject. Since 26th December, 1987 Dr. Gupta is an FCA, FICWA and Ph.D. He has in the areas of finance, accounting and corporate laws and was formerly a Technical Director of Institute of Chartered Accountants of India.
PRESS RELEASE
RSWM Limited
Recommends Dividend
Apr 28, 2011
RSWM Limited announced that the Board of Directors of the Company has
recommended 50% that is INR5 per share final dividend, which shall be paid
between 11th day and 14th day from the conclusion of the Annual General
Meeting, subject to the approval of the Shareholders of the Company.
RSWM Limited Declares
Interim Dividend
Feb 03, 2011
RSWM Limited announced that the Board of Directors of the Company at its
meeting held on February 03, 2011, inter alia, have declared interim dividend @
100% i.e., INR10.00 on every Equity Share of INR 10.00 each amounting to
INR2314.87 lacs(INR231.4 million) for the financial year 2010-2011. Further the
Company has informed that, the payment of interim dividend shall be made on
February 21, 2011.
15 September 2011
The Bhilwara-based company is looking to set up a denim manufacturing facility, besides enhancing its production capacities.
"We are investing Rs.15000.000 millions in capacity
expansion, largely yarn. We expect to add sophisticated spinning equipment that
will take our spindle capacity to Rs.0.700 millions, retaining our position as
"We are attractively placed to achieve this target. We enjoy a 35 per cent share of the polyester yarn segment and a dominant position in yarn exports, including special high-value yarns," he added.
RSWM is the flagship company of business conglomerate LNJ Bhilwara, which has a turnover of nearly Rs.50000.000 millions with presence in textiles, power, graphite electrodes and IT.
The company is also looking to enhance denim installed capacity from 14 million metres per annum to about 18 million metres.
"We also expect to commission a spinning facility dedicated to denim manufacture strengthening our integration and profitability," Jhunjhunwala said.
The company, which posted revenues of around Rs 2,000 crore for the last financial year, is also looking to introduce five new yarns in the market.
RSWM operates, about 350000 spindles, 190 looms and fabric processing facilities with eight manufacturing locations.
It specialises in producing cotton, yarn, wool fabric and
denim fabrics. The company exports a complete range of yarn and fabrics to over
70 countries including Europe,
LNJ Bhilwara Group plans to invest Rs 10k-cr in
power biz
Pioneer, The
12 September 2011
Bhilwara, Sept. 12 -- Business conglomerate LNJ Bhilwara Group, which has business interests in textiles, graphite electrodes and power, plans to invest Rs.100000.000 millions in its hydro power business over the next five years.
"We will invest Rs.100000.000 millions in the hydro
power sector in the next five years in Himachal Pradesh, Arunachal Pradesh and
LNJ Bhilwara Group, which is celebrating its Golden Jubilee, has laid out a strategic blueprint to catapult the group as a global business conglomerate in the next a few years.
Keeping that in mind, the group will pump Rs.15000.000 millions into its flagship company RSWM Limited to increase its turnover to 4,000 crore from the present Rs.20000.000 millions in the next two-three years.
"We plan to invest Rs.15000.000 millions on capacity expansion in our flagship company RSWM Limited. The company will install most modern spinning equipment that will take our spindle capacity to 7 lakh," he added.
RSWM produces the best quality yarns and has acquired a dominant position in yarn exports over the years. The company currently enjoys a 35 per cent share in the polyester yarn segment.
"We shall also enhance our denim installed capacity from 14 million meters per annum to about 18 million meters and expect to commission a spinning facility dedicated to denim manufacture strengthening our integration and profitability," he added.
The core business interests of the Rs.50000.000 millions LNJ Bhilwara Group include textiles, graphite electrodes and power. The group has also entered into IT enabled services. LNJ Bhilwara Group boasts of 14 companies (six listed companies) and 24 manufacturing locations with impeccable financial health and a human capital of 25,000.
CARE upholds BBB/A3+
ratings on RSWM
EquityBites
26 August 2011
26 August 2011 - Rating agency CARE yesterday reaffirmed the ratings on the long and short-term bank facilities of Indian yarn manufacturer RSWM Ltd (BOM:500350) at BBB and A3+, respectively.
The ratings take comfort from the company's strong group support, large size and consistent track record of operations, as well as its diversified revenue stream and established customer base.
The increased profitability and cash accruals of the firm strengthen the ratings further.
The ratings, however, are constrained by the company's relatively high gearing and its large debt-funded capital expenditure programme
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.51.16 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.68.34 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
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 |
|
54 |
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.