MIRA
INFORM REPORT
|
Report Date : |
08.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
HIMATSINGKA SEIDE
LIMITED HIMATSINGKA
LINENS – DIVISION OF HIMATSINGKA SEIDE LIMITED |
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|
|
|
Registered
Office : |
10/24, |
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|
Country : |
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|
|
Financials (as
on) : |
31.03.2011 |
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|
|
Date of
Incorporation : |
23.01.1985 |
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|
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|
Com. Reg. No.: |
08-6647 |
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|
|
Capital
Investment / Paid-up Capital : |
Rs.492.286
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L1711ZKA1985PLC006647 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRH01939A |
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|
|
PAN No.: [Permanent Account No.] |
AAACH3507N |
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|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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|
Line of Business
: |
Manufacturing of
Natural Silks and Silk Blended Fabrics. |
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|
|
|
No. of Employees
: |
3499 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 21000000 |
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|
|
|
Status : |
Satisfactory |
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|
|
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track. The company
has incurred a loss in the current year. However, trade relations are
reported as 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 Office/ Corporate Headquarter : |
10/24, Kumarakrupa Road, High Ground, Bangalore – 560001, Karnataka,
India |
|
Tel. No.: |
91-80-22378000/ 42578000 |
|
Mobile No.: |
91-80-22378058/
22378074 |
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Fax No.: |
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E-Mail : |
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Factory : |
23A, KIADB
Industrial Area, Veerapura Village, Doddaballapur Taluk, Bangalore District,
Karnataka, India |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Dilip J. Thakkar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
A.K. Himatsingka |
|
Designation : |
Vice Chairman |
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|
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|
Name : |
Dr. K.R.S. Murthy |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Berjis M. Desai |
|
Designation : |
Director |
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|
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|
Name : |
A.K. Dasgupta |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Rajiv Khaitan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. David Rasquinha (up to 29.01.2011) |
|
Designation : |
Nominee Director of Export Import Bank of |
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|
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|
Name : |
Samuel Joseph Jebraj (w.e.f 29.04.2011) |
|
Designation : |
Nominee Director of Export Import Bank of |
|
|
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|
Name : |
D.K. Himatsingka |
|
Designation : |
Managing Director |
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|
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|
Name : |
Mr. Aditya Himatsingka |
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Designation : |
Executive Director |
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|
Name : |
Mr. Shrikant Himatsingka |
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Designation : |
Executive Director |
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Audit Committee : |
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Shareholders/ Investors Grievance Committee : |
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Investment committee: |
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Share Transfer Committee: |
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Remuneration Committee : |
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Risk Management Committee: |
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QIP Committee : |
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KEY EXECUTIVES
|
Name : |
G. Ravichandan |
|
Designation : |
President (Group Operation) |
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|
|
|
Name : |
Predeep Mukherji |
|
Designation : |
President (Global Sales and Marketing) |
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|
|
|
Name : |
Jayshree Poddar |
|
Designation : |
Head of Design |
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|
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|
Name : |
K. P. Pradeep |
|
Designation : |
Chief Financial Officer |
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|
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|
Name : |
Ratnakar Nemani |
|
Designation : |
Chief Information Officer |
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|
|
|
Name : |
Y.R. Wilson Maria Doss |
|
Designation : |
Vice President |
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|
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|
Name : |
Bharat Ram |
|
Designation : |
Vice President (Retail) |
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|
Name : |
S. Shanmuga Sundram |
|
Designation : |
Vice President (Bed Linen Operation) |
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|
Name : |
Amit Jain |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Names of Shareholders |
No. of Shares |
Percentage of Holding |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
34,578,663 |
35.12 |
|
|
18,323,109 |
18.61 |
|
|
52,901,772 |
53.73 |
|
|
|
|
|
|
|
|
|
|
1,237,800 |
1.26 |
|
|
1,237,800 |
1.26 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
54,139,572 |
54.99 |
|
|
|
|
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(B) Public
Shareholding |
|
|
|
|
|
|
|
|
9,203,738 |
9.35 |
|
|
35,120 |
0.04 |
|
|
914,886 |
0.93 |
|
|
1,631,801 |
1.66 |
|
|
11,785,545 |
11.97 |
|
|
|
|
|
|
|
|
|
|
5,305,183 |
5.39 |
|
|
|
|
|
|
|
|
|
|
14,383,270 |
14.61 |
|
|
11,504,455 |
11.68 |
|
|
1,339,135 |
1.36 |
|
|
1,309,027 |
1.33 |
|
|
17,908 |
0.02 |
|
|
12,200 |
0.01 |
|
|
32,532,043 |
33.04 |
|
|
|
|
|
Total Public shareholding
(B) |
44,317,588 |
45.01 |
|
|
|
|
|
Total (A)+(B) |
98,457,160 |
100.00 |
|
|
|
|
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
- |
- |
|
|
- |
- |
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|
- |
- |
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|
- |
- |
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|
|
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|
Total
(A)+(B)+(C) |
98,457,160 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Natural Silks and Silk Blended Fabrics. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
3499 (Approximately) |
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Bankers : |
·
Canara Bank ·
Export Import Bank of ·
The |
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Facilities : |
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Banking
Relations : |
-- |
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|
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Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
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|
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Wholly Subsidiaries : |
·
Himatsingka Wovens Private Limited ·
Himatsingka America Inc. |
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|
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|
Subsidiaries : |
·
Himatsingka ·
Twill and ·
Divatex Home Fashions Inc. |
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|
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|
Related Parties : |
·
Bihar Marcantile Union Limited ·
Satin Reed ( ·
Khitan and Company |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
134000000 |
Equity Shares |
Rs.5/- each |
Rs.670.000 Millions |
|
|
|
|
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Issued Capital
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
98496160 |
Equity Shares |
Rs.5/- each |
Rs.492.481
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital : Rs.492.286 Millions
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
492.286 |
492.286 |
492.286 |
|
|
2] Share Application Money |
0.000 |
0.000 |
62.088 |
|
|
3] Reserves & Surplus |
4750.866 |
5172.703 |
5057.263 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5243.152 |
5664.989 |
5611.637 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4663.416 |
4941.802 |
4176.782 |
|
|
2] Unsecured Loans |
322.230 |
239.030 |
239.030 |
|
|
TOTAL BORROWING |
4985.646 |
5180.832 |
4415.812 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10228.798 |
10845.821 |
10027.449 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
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|
FIXED ASSETS [Net Block] |
4789.550 |
4961.183 |
4643.831 |
|
|
Capital work-in-progress |
98.923 |
275.647 |
562.771 |
|
|
|
|
|
|
|
|
INVESTMENT |
2950.958 |
2770.809 |
2405.633 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1662.229
|
1968.291 |
1206.887 |
|
|
Sundry Debtors |
498.113
|
532.599 |
545.691 |
|
|
Cash & Bank Balances |
29.047
|
84.398 |
32.817 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
1709.574
|
1658.827 |
2108.009 |
|
Total
Current Assets |
3898.963
|
4244.115 |
3893.404 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1091.156
|
1125.979 |
|
|
|
Other Current Liabilities |
195.305
|
61.164 |
682.418 |
|
|
Provisions |
223.135
|
218.790 |
795.772 |
|
Total
Current Liabilities |
1509.596
|
1405.933 |
1478.190 |
|
|
Net Current Assets |
2389.367
|
2838.182 |
2415.214 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
10228.798 |
10845.821 |
10027.449 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operation |
5080.161 |
4651.068 |
4083.053 |
|
|
|
Other Income |
122.635 |
108.213 |
183.343 |
|
|
|
TOTAL (A) |
5202.796 |
4759.281 |
4266.396 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Materials consumed |
3216.544 |
3025.185 |
2244.905 |
|
|
|
Purchase of traded goods |
146.992 |
22.697 |
0.000 |
|
|
|
Decrease / (increase) in work in process and finished
goods |
21.684 |
(334.533) |
(269.581) |
|
|
|
Manufacturing expenses |
648.791 |
561.699 |
599.903 |
|
|
|
Personnel expenses |
556.186 |
481.820 |
466.529 |
|
|
|
Other expenses |
277.409 |
303.815 |
474.012 |
|
|
|
Exceptional gain |
0.000 |
85.318 |
425.581 |
|
|
|
Preoperative Expenses |
0.000 |
0.000 |
(29.562) |
|
|
|
TOTAL (B) |
4867.606 |
3975.365 |
3911.787 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
335.190 |
783.916 |
354.609 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
280.086 |
257.215 |
214.803 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
55.104 |
526.701 |
139.806 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
476.941 |
445.604 |
472.762 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(421.837) |
81.097 |
(332.956) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.957 |
(3.176) |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
(421.837) |
82.054 |
(329.780) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
669.272 |
615.920 |
945.700 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
0.000 |
|
|
|
Proposed Dividend |
0.000 |
24.614 |
0.000 |
|
|
|
Tax on Dividend |
0.000 |
4.088 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
247.435 |
669.272 |
615.920 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export FOB Basis |
4470.229 |
4306.388 |
3845.171 |
|
|
|
Interest |
36.060 |
52.788 |
88.783 |
|
|
TOTAL EARNINGS |
4506.289 |
4359.176 |
3933.954 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1577.585 |
1581.836 |
402.232 |
|
|
|
Stores & Spares |
24.097 |
23.699 |
34.873 |
|
|
|
Capital Goods |
6.008 |
76.666 |
236.313 |
|
|
|
Others |
0.000 |
0.000 |
0.000 |
|
|
TOTAL IMPORTS |
1607.690 |
1682.201 |
673.418 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
(4.28) |
0.83 |
(3.35) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Net Sales |
1585.300 |
1586.400 |
1829.900 |
|
Total Expenditure |
1456.100 |
1398.000 |
1509.000 |
|
PBIDT (Excl OI) |
129.200 |
188.400 |
320.900 |
|
Other Income |
66.800 |
13.800 |
18.000 |
|
Operating Profit |
196.000 |
202.200 |
338.900 |
|
Interest |
62.400 |
57.700 |
72.100 |
|
Exceptional Items |
0.000 |
22.200 |
17.100 |
|
PBDT |
133.600 |
166.700 |
283.900 |
|
Depreciation |
119.200 |
119.700 |
121.500 |
|
Profit Before Tax |
14.400 |
47.000 |
162.400 |
|
Tax |
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
14.400 |
47.000 |
162.400 |
|
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 |
14.400 |
47.000 |
162.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
(8.11)
|
1.72 |
(7.73) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.30)
|
1.74 |
(8.15) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(4.86)
|
0.88 |
(3.90) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.08)
|
0.01 |
(0.06) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.24
|
1.16 |
1.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.58
|
3.02 |
2.63 |
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 |
YEAR IN RETROSPECT
The world economy in 2010 ended without the
‘double-dip’ recession that many economists had predicted. The quantitative
easing combined with the tax cut package in the
The year 2010-11 was a year of consolidation
for the various businesses of the Company. The distribution businesses in North
America reported a growth of 18.00%, while the European,
For 2010-11, standalone revenue from
operations grew by 9.23% to Rs.5080.161 millions, as compared to Rs.4651.068
millions in 2009-10. Other income for the year was Rs.122.635 millions as
against Rs.108.213 millions in the previous year.
The significant area of concern was an
unprecedented increase in the cost of raw materials coupled with the weakening dollar.
The increase in material cost in the current year over a normative pricing
scenario is estimated to be approximately Rs.900.000 millions, while the Indian
Rupee strengthened against the dollar by 3.20%.
The Company had increased realizations of products
sold, introduced product mix changes and changes in their pattern of sourcing
during the year. However, these changes did not completely mitigate the
increase in input costs. Consequently there was a significant contraction in
the margin of the manufacturing business. The greatest impact was felt in the
Bed Linen division, which reported a loss of Rs.591.335 millions, as compared
to a loss of Rs.178.701 millions in the previous year. For the year under
review, the Company reported a loss of Rs.421.837 millions as against a profit
of Rs.82.054 millions in the previous year.
PROSPECTS
GROWTH INITIATIVES
DURING THE YEAR
The Company has invested significant time
and resources in addressing changing requirements in a complex market. Initiatives
in the regard include product re-engineering, addressing requirements of price
sensitive markets, new product launches, addition of new customers and
launching new distribution channels.
The Company is planning to enhance the
retail presence of its luxury brand “atmosphere” through opening of additional
retail outlets in the Middle East, South East Asia and
PERFORMANCE OF
SUBSIDIARY COMPANIES
HIMATSINGKA WOVENS PRIVATE LIMITED (HWPL)
The retail stores “ATMOSPHERE” are managed
by HWPL, a wholly owned subsidiary. HWPL reported a marginal decline in sales
by 3.65% to Rs.383.757 millions in the current year on account of the stressful
market conditions. During the year, the made-ups facility at
HIMATSINGKA AMERICA INC. (HIMA)
Hima is a wholly-owned subsidiary which
markets products of their Silk division in the USA. HimA is also the holding
Company for Divatex Home Fashions Inc. and DWI Holdings Inc.
For the year ended 31st March, 2011, HIMA
recorded sales of USD 3.32 Million (Rs.151.038 millions) as compared to USD
3.55 Million (Rs.168.674 millions) in the previous year. It recorded a profit
before tax of USD 1.97 Million (Rs.88.488 millions) as compared to the loss of
USD 2.14 Million (Rs.102.333 millions) for the previous year. The Company
received a dividend of USD 5.23 million in current year as compared to USD 0.88
million in the previous year, from its subsidiaries.
DIVATEX HOME FASHIONS INC.
For the year ended 31st March, 2011, Divatex
Home Fashions Inc. recorded Net sales of USD 140.98 Million (Rs.6423.869
millions) compared to USD 118.89 Million (Rs.5604.186 millions) in the previous
year and profit before tax of USD 6.99 Million (Rs.319.764 millions) compared
to USD 3.29 Million (Rs.154.037 millions) for the previous year. The improved
profitability has resulted from an increase in sales of 18.6% aided by new
product launches, addition of new customers and significant cost optimization
initiatives.
DWI HOLDINGS INC.
For the year ended 31st March, 2011, DWI
Holdings Inc. recorded sales of USD 58.34 Million (Rs.2660.347 millions)
compared to USD 49.96 Million (Rs.2370.993 millions) in the previous year and
profit before tax of USD 2.43 Million (Rs.111.463 millions) compared to USD
0.32 Million (Rs.16.228 millions) for the previous year. The Company’s strategy
of distributing brands in various pricing formats resulted in a 16.8% growth in
sales. In addition, significant cost optimization initiatives have resulted in
a better performance as against the previous year.
GIUSEPPE BELLORA SPA
For the year ended March 31, 2011, Giuseppe
Bellora SpA recorded sales of Euro 19.33 Million (Rs.1165.868 millions)
compared to Euro 19.19 Million (Rs.1282.238 millions) in the previous year and
a loss before tax of Euro 1.14 Million (Rs.68.740 millions) compared to a loss
before tax of Euro 1.32 Million (Rs.88.694 millions) for the previous year. The
results have been impacted by the continuing recessionary conditions in the
European markets. The cost optimization measures initiated in the last year
have helped to reduce the overall loss for the year.
TWILL AND
Twill and Oxford LLC is a subsidiary of the
Company, which operates the ATMOSPHERE store at
HIMATSINGKA SINGAPORE PTE LIMITED (HSPL)
HSPL is a wholly owned subsidiary of HWPL
and operates a store at
FINANCE
The Company’s surplus funds continue to be
invested prudently. As on March 31, 2011, the Company had invested Rs.67.493
millions in various schemes of mutual funds. In accordance with the provisions
of the Investor Education and Protection Fund (awareness and protection of
investor) Rules, 2001, unpaid and unclaimed dividend (final dividend 2002-03
and interim dividend 2003-04) amounting to Rs.0.971 millions was transferred to
the Investor Education and Protection Fund
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
They are a leading home textile manufacturer
having a global distribution network and a portfolio of premium international
brands. The principal business is producing an extensive range of home
furnishing fabrics for curtains and upholstery, silk apparel fabrics for bridal
wear and women’s wear, and bed linen products.
The Textile industry is among the largest
industries in
The international home textiles market has
been marked by increasing product complexity, higher service standards required
from manufacturers and shorter delivery cycles. In addition very tight control
on cost of sourcing from the retailers end has resulted in an inability to pass
on higher input prices in entirety within a defined time frame. There has also
been a marked trend of brands addressing various pricing formats. Private label
distributors, Big Box retailers and brand distributors have consciously
cultivated the mid-market segment to manage the difficult economic environment.
High input costs, competition, cost competitiveness,
low productivity levels and the rupee volatility are some of the key challenges
faced by the industry.
The Indian home textile market includes
products such as bed linen, curtains, towels, blankets, upholstery, rugs and
carpets etc. The market is estimated at Rs. 155.7 billion (US$ 3.5 billion) in
2009 and expected to reach Rs. 400 billion (US$ 9 billion) by 2020 growing @ 9%
CAGR. (Source: Technopak Indian Textile and Apparel Compendium, September
2010).This is expected to happen due to the growing affluence levels of the
Indian consumers, increased urban household population and corporatization.
Bed Linens, curtains and upholstery
contributed 64.8% or Rs.101 billion to the total Indian home textile market in
2009 and this is expected to increase Rs. 175 billion by 2015(E) (Source:
Technopak Indian Textile and Apparel Compendium, September 2010). Design and
fashion capabilities are the differentiators required to build relationships
with global retailers and score over competition from
OPPORTUNITIES
The continuation of Technology Up gradation
Fund (TUF) scheme by the Central Government in the 11th plan period indicates
the opportunities the industry has going forward. A gradual shifting of textile
manufacturing facilities from the developed economies to developing economies
is making countries like
With the Hassan Bed Linen facility and
distribution and brand synergies with Giuseppe Bellora SpA, Divatex Home
Fashions Inc. and DWI Holdings Inc., the Company has created a strong presence
in the home textiles segment. They supply products to 6 out of the top 10
retailing giants in the
They operate a luxury home furnishing brand
‘atmosphere’ – through a retail chain of 14 showrooms of which 12 are located
in
OUTLOOK
With their investments in Bed Linen
manufacturing, retailing and overseas acquisitions, they believe they are
positioned to embrace the various opportunities available to us in these
segments to significantly enhance their revenues and market share.
Risk is an essential part of any business or industrial undertaking. Risk
management objectives of the Company are set to achieve
an optimal balance between growth, value creation and related risks and
efficient and effective deployment of the Company’s resources.
Hence, risk management is not just about minimizing the downside to risk but
also increasing the potential upside within
prudential limits. As a result of
globalization and rapidly changing business environment, the risks have become
more complex. The following factors are not an
exhaustive list of risks associated with their business. Additional risks not
currently known to us or that they currently deem not to be significant also
may adversely affect their business, financial condition or results of
operations in future periods.
CONTINGENT LIABILITY
Rs. In Millions
|
Particulars
|
31.03.2011 |
31.03.2010 |
|
i) Contingent liabilities not provided for: |
|
|
|
Income Tax |
491.881 |
193.899 |
|
Entry Tax |
0.000 |
1.000 |
|
Excise tax |
26.540 |
27.512 |
|
Custom Duty |
0.000 |
2.015 |
|
Value Added Tax |
14.020 |
14.020 |
|
Claims against the
company not acknowledged as debts |
2.796 |
0.000 |
|
ii) Corporate guarantee given towards credit facilities on behalf of
subsidiaries |
|
|
|
Financial institutions |
84.848 |
90.909 |
|
Banks |
2086.802 |
2292.502 |
|
Others |
14.288 |
14.384 |
STANDALONE
UNAUDITED RESULTS
(RS. IN MILLIONS)
|
Sr. No. |
Particulars |
Quarter
Ended 30.06.2011 |
|
|
|
(Unaudited) |
|
|
|
|
|
1 |
(a) Net sales |
15,403 |
|
|
(b) Other
operating income |
450 |
|
|
(c) Total Income from operations |
15,853 |
|
|
|
|
|
2 |
Expenditure |
|
|
|
a. (Increase)/decrease
in stock in trade and work in progress |
2,771 |
|
|
b. Consumption of
raw materials |
7,696 |
|
|
c. Purchase of
traded goods |
360 |
|
|
d. Employee cost |
1,472 |
|
|
e. Depreciation |
1,192 |
|
|
f. Other
expenditure |
2,262 |
|
|
g. Foreign
exchange fluctuation loss/(gain) - net |
(491) |
|
|
h. Total |
15,262 |
|
|
|
|
|
3 |
Profit/(Loss)
from operations before other income, Interest and |
|
|
|
Exceptional items |
591 |
|
4 |
Other Income |
177 |
|
5 |
Profit/(Loss) before
interest and exceptional items |
768 |
|
6 |
Interest and
finance charges |
624 |
|
7 |
Profit/(Loss)
before exceptional items |
144 |
|
8 |
Exceptional item
loss/(gain) - net |
- |
|
9 |
Profit/(Loss)
from ordinary activities before tax |
144 |
|
10 |
Tax expense |
- |
|
11 |
Net profit/(loss) |
144 |
|
12 |
Paid up equity
share capital |
4,923 |
|
|
Face value of
each share (Rs) |
5.00 |
|
13 |
Reserves |
- |
|
|
|
|
|
14 |
Basic and Diluted
earnings per share (Rs) (Non annualised) |
0.15 |
|
|
|
|
|
15 |
Aggregate of public shareholding |
|
|
|
- No of shares |
44,317,588 |
|
|
- % of holding
(to total shareholding) |
45.01 |
|
|
|
|
|
16 |
Promoters and promoter group shareholding |
|
|
|
a) Pledged/Encumbered |
- |
|
|
- No of shares |
|
|
|
- % of holding
(as a % of the total shareholding of promoter and promoter group) |
- |
|
|
- % of holding
(as a % of the total share capital of the company) |
- |
|
|
b) Non-encumbered |
|
|
|
- No of shares |
54,139,572 |
|
|
- % of holding (as
a % of the total shareholding of promoter and promoter group) |
100 |
|
|
- % of holding
(as a % of the total share capital of the company) |
54.99 |
NOTE:
·
The Company is primarily in the business of 'Home Textiles,'
consequently no segmental disclosure have been made.
In respect
of the only remaining foreign exchange derivative contract with a bank, the
determination of the liability is dependent on the occurrence of an uncertain
event in the quarter ending September 2012 and in view of this significant
uncertainty no provision has been made in the accounts. The mark-to-market loss
indicated by the bank as on June 30, 2011 amounted to Rs.280.000 Millions.
There were
no pending investor complaints at the beginning of the quarter. During the
quarter ended June 30, 2011, the Company received 13 investor complaints, which
have been attended to and no complaints remain unresolved as on June 30,2011.
In
accordance with Clause 41 of the Listing Agreement the Statutory Auditors have
carried out a 'Limited Review' of the standalone financial results for the
quarter ended June 30, 2011.
Previous
year/ quarter figures have been regrouped/ recast, wherever necessary.
FIXED ASSETS
·
Land
·
·
Buildings
·
Plant and Machinery
·
Furniture and Fixture
·
Leasehold Improvements
·
Office Equipment
·
Vehicles
BUSINESS DESCRIPTION
Subject is a textile manufacturer having a global distribution network and a portfolio of international brands. It focuses on the manufacturing, retailing and distribution of Home Textile products. The Company is mainly engaged in the business of manufacturing, marketing and distribution of textiles consisting of fabric and yarn. Its segment includes Home textile. Complete bed ensembles include sheet sets, pillowcases, duvets, comforters, decorative pillows, bedskrits, shams and dust ruffles amongst other products. Products offered in the drapery and upholstery fabrics manufacturing facility include fabrics for drapery and upholstery applications. Its principal business includes producing a range of home furnishing fabrics for curtains and upholstery, silk apparel fabrics for bridal wear and women wear, and bed linen products. The Company also offers spun silk, silk blended with wool, silk blended with linen and silk blended with Tussar. For the nine months ended 31 December 2010, Himatsingka Seide Limited revenues increased from 21% to RS9.6B. Net loss totaled RS50.6M. Vs a profit of RS174.3M. total revenue reflects an increase in the net sales and rise in other operating income. Net loss reflects increase of consumption of raw materials, higher purchase of traded goods, increase in depreciation, rise in the tax expenses and other expenditure.
BOARD OF DIRECTOR
MR. DILIP JAYANTILAL THAKKAR
- INDEPENDENT NON-EXECUTIVE CHAIRMAN OF THE BOARD CHAIRMAN
Mr. Dilip J Thakkar is an Independent
Non-Executive Chairman of the Board of Subject He has been a Director of the
Subject since January 2001 and he was appointed as Independent Non-Executive
Chairman of the Board on 16th April 2008. He is the Chairman of the Audit
Committee of the Company. He is Chartered Accountant since 1961 and is a senior
partner of the eminent firms, Jayantilal Thakkar and Company, Mumbai and
Jayantilal Thakkar Associates, Mumbai and has sound knowledge of accountancy
and corporate governance. He has traveled abroad in the course of his
professional practice. He specializes in Foreign Exchange Management Act and
extensively advises Non Resident Indian, Overseas Corporations and Indian
Companies on investments, Taxation, collaboration etc. He was the Chairman and
a member of the Indian Advisory Board of Hongkong and Shanghai Banking
Corporation Limited and The British Bank of Middle East. He is a Director of
Omega Management SeMces Limited Raasvi
Properties Holdings Private Limited
Wearology Limited Staftock Investments
and Trading Private Limited Panasonic Battery India Company Limited Essar Oil Limited Thirumalai Chemicals Limited The Ruby Mills Limited, RAE Limited Chrysanthemum Investments Private Limited
Blueberry Trading Company Private Limited Township Real Estate Developers Private
Limited Hamlet Constructions India
(Private) Limited Indo Count Industries
Limited Walchandnagar Industries
Limited Windmere Hospitality (India)
Private Limited Garware Offshore SeMces
Limited Hinditron Consultancy Services
Private Limited and Garware Polyester Limited
He is a trustee of HSBC Mutual Fund. He is the Chairman of Audit
Committees of Essar Oil Limited Thirumalal Chemicals Limited and PAL Limited He is a member of Audit Committee and the
Chairman of Investor Grievances Committee of Panasonic Battery India Company
Limited He is a member of Audit
Committee of Walchandnagar Industries Limited
a member of Investors Relations Committee of Essar Oil Limited and a
member of Share Transfer Committee of Thirumalai Chemicals Limited
MR. K. HIMATSINGKA - EXECUTIVE VICE
CHAIRMAN OF THE BOARD
Mr. A.K. Himatsingka is an Executive Vice Chairman of the Board of Company. He is a B.com Graduate and has 48 years of work experience. He is a Wholetime Director of Bihar Mercantile union Limited
MR. BERJIS MINOO DESAI - ADDITIONAL
NON-EXECUTIVE INDEPENDENT DIRECTOR
Mr. Berjis Minoo Desai is Additional Non-Executive Independent Director of Company since September 08, 2010. He is a practicing lawyer and is the Managing Partner in J. Sagar Associates, a corporate advisory and legal firm.
MR. DINESH K. HIMATSINGKA - MANAGING DIRECTOR, WHOLETIME DIRECTOR
Mr. Dinesh K. Himatsingka is Managing Director, Wholetime Director Himatsingka Seide Limited. He is a B.A (Hons) Graduate and has 33 years of work experience. He is a Managing Director of Bihar Mercantile union Limited
MR. SHRIKANT HIMATSINGKA - WHOLE TIME DIRECTOR
Mr. Shrikant Himatsinyka is Whole Time Director of Company since June 2003. He has obtained a degree of Bachelor of Science in Economics from the Leonard Stern School of Business, New York University. His subject majors included Frnancial Accounting, Management and organizational behaviour He is a Director of Himatsingka Wovens Private Limited Priya Resources Limited Aditya Resources Limited Credit Himatsingka Private Limited Twill and Oxford LLc, Giuseppe Bellora SpA, Himatsingka America Inc. Himatsingka Singapore Pte Limited Divatex Home Fashions Inc. and OWl Holdings Inc.
MR. PRADEEP MUKHERJEE PRESIDENT - GLOBAL SALES AND MARKETING
Mr. Pradeep Mukherjee is President
- Global Sales and Marketing of company. He is a B. Tech (Mech) DMS Graduate
and has 36 years of work experience. He is a Vice-President - Planning, Product
Development and Exports, Bombay Dyeing and Manufacturing Limited
MR. G. RAVICHANDRAN PRESIDENT - GROUP
OPERATION
Mr. G. Ravichandran is President - Group Operations of Subject He holds B. Tech. He also served as General Manager, GER Group of Industries.
MR. DINESH K. HIMATSINGKA - MANAGING DIRECTOR, WHOLETIME
DIRECTOR
Mr. Dinesh K. Himatsingka is
Managing Director, Wholetime Director Company. He is a B.A (Hons) Graduate and
has 33 years of work experience. He is a Managing Director of Bihar Mercantile
union Limited
MR. K. P. PRADEEP - CHIEF FINANCIAL OFFICER
Mr. K.P. Pradeep is Chief
Financial Officer of Company. He is graduated in A.C.A, A.I.C, W.A, CS (Inter),
B.com and has 16 years of work experience. He is Director Finance Fidelity
Business service India Limited
MR. Y. R. WILSON MARIA DOSS VICE PRESIDENT - HUMAN RESOURCES
Mr. Y. R. Wilson Maria Doss is Vice President - Human Resources of Subject. He is Director, Finance Fidelity Business Services India Limited
MS. JAYSHREE PODDAR - HEAD DESIGN
Ms. Jayshree Poddar is Head -
Design of Subject. She is graduated in B.Sc. Diploma in Textile Designing and
has 32 years of work experience. She is a Chief Derigner, Bihar Mercantile
Union Limited
PRESS RELEASE
Transcript of conference call
Accord Fintech (
01 February 2012
Updates on Financial Results for Dec 31,
2011
Accord Fintech (
27 January 2012
Results Press Release and Limited Review
for Dec 31, 2011
Accord Fintech (
25 January 2012
Promoters
raising stake in textile companies on bright outlook; Promoter stakes have gone
up in Aditya Birla Nuvo, Arvind, Nahar Spinning and Himatsingka Seide
DNA (Daily News and Analysis)
31 March 2011
By Amritha Pillay
The Indian textile sector has now seen positive growth and a speedy recovery for more than seven quarters now.
While the financial performance has picked up, promoters of this textile companies are positive that share valuations would increase soon. To benefit from this expected higher valuation, many promoters are busy increasing their shareholding.
Aditya Birla Nuvo, Arvind Limited, Nahar Spinning and Himatsingka Seide are some of the companies that have increased their promoter and group shareholding in the past one year
Major increase in the shareholding percentage has been witnessed among small-cap players like Digjam Ltd, Gini Filaments, Nitin Spinners and Nahar Poly Films. Fabric manufacturer, Digjam Ltd, has witnessed the highest increase in its promoter shareholding by around 8.87%, while Ginni Filaments increased its promoter holding by around 7.37%.
"The industry has been doing well for the past one-and-a-half year. Though increase in raw material prices is an issue, it has been passed on to the customers till now. The coming months look positive for the industry," said Shishir Jaipuria, managing director, Ginni Filaments.
Officials from Spentex Land TT Limited agree textile stocks are expected to perform well in the coming future and thus it makes sense for the company to increase its promoter holding.
"They believe the company has a bright future and expect better valuations. At the current valuation, they thought it was a good opportunity to increase holding," said Mukund Choudhary, managing director, Spentex Limited Spentex has increased its promoter holding by around 4.34% in the past one year.
"A number of players are looking at increasing their promoter holding as it is a good time to do so. They, as a company, have also increased it and will continue to be on a lookout for such opportunities. The main idea is currently a number of textile stocks are under-valued and there is an expectation that valuations will increase in future," said Sanjay Jain, joint managing director, TT Limited
The company, which has presence in the yarn, fabric and apparel segment, increased its promoter shareholding by around 0.34% and plans to increase it further.
Other than expectations for better valuations, huge capacity expansion plans is also being stated as a reason for increase in promoter holding.
"In order to expand business, a lot of capital infusion has taken place. Thus, the promoters want to ensure they have a major hold on the company," said Gopal Agarwal, CFO, Ganesh Polytex Limited In the past one year, the company has increased promoter and promoter group shareholding by around 5.04%.
In the coming months, the company also plans to convert warrants worth 24 lakh shares into equity. This will take the company's promoter holding from the current 52% to around 55%.
Jayesh Shah, director and CFO, Arvind Limited, said, "The company had converted some warrants a year or so ago. Thus, the shareholding increased." However, he refused to comment from an industry perspective. Copyright 2010 Diligent Media Corporation Limited, DNA (Daily News and Analysis) All Rights Reserved.
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.53.34 |
|
|
1 |
Rs.86.09 |
|
Euro |
1 |
Rs.69.37 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.