MIRA INFORM REPORT

 

 

Report Date :

09.11.2012

 

IDENTIFICATION DETAILS

 

Name :

INDO COUNT INDUSTRIES LIMITED

 

 

Registered Office :

Village Alte, Taluka Hatkanangale, Kolhapur – 416109, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2011

 

 

Date of Incorporation :

07.11.1988

 

 

Com. Reg. No.:

11-068972

 

 

Capital Investment / Paid-up Capital :

Rs.354.816 Millions

 

 

CIN No.:

[Company Identification No.]

L72200PN1988PLC068972

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

KLPI00337B

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Exporter of Cotton Yarn and Knitted Fabrics

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (26)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 6900000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appear some accumulated losses recorded by the company. However trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

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 – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Short Term Bank Facilities = D

Rating Explanation

Default or expected to be in default

Date

15.05.2012

 

 

Rating Agency Name

CARE

Rating

Long Term Bank Facilities = D

Rating Explanation

Default or expected to be in default

Date

15.05.2012

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

LOCATIONS

 

Registered Office :

Village Alte, Taluka Hatkanangale, Kolhapur - 416109, Maharashtra, India

Tel No. :

Not Available

Fax No.:

Not Available

E-Mail :

smokashi@indocount.com

info@indocount.com

cottonyarn@indocount.com

mshanbhag@indocount.com

Website :

www.indocount.com

 

 

Spinning and Electronic Units :

D-1, MIDC Industrial Area, Gokul Shirgaon, Kolhapur - 416 234, Maharashtra, India

Tel No. :

91-231-2672291 / 92

Fax No.:

91-231-2672161

 

 

Home Textile and Consumer Durable Goods Units :

T - 3, Kagal - Hatkanangle, Five Star MIDC Area, At Post : Talandge, Taluka : Hatkanangale Kolhapur - 416 216, Maharashtra, India

 

 

Head  Office :

301 and 1101, Arcadia, Nariman Point, Mumbai - 400021, Maharashtra, India

Tel. No.:

91-22-43419500 / 41511800 / 56306024 / 22856534

Fax No.:

91-22-22823098 / 22041028

 

 

Marketing Office :

# 23-25, Vardhaman Industrial Complex, Gokul Nagar, Thane (West) - 400601, Maharashtra, India

 

 

Branch Office :

Located At:

 

·         Delhi

·         Kolkata

 

 

DIRECTORS

 

As on 31.03.2011

 

Name :

Mr. Dilip J. Thakkar

Designation :

Director

 

 

Name :

Mr. Kailash R. Lalpuria (w.e.f. 11-11-2010)

Designation :

Director

 

 

Name :

Mr. Kamal Mitra

Designation :

Director

 

 

Name :

Mr. P. N. Shah

Designation :

Director

 

 

Name :

Mr. Prem Malik

Designation :

Director

 

 

Name :

Mr. R. Anand

Designation :

Director

 

 

Name :

Mr. Sushil Kumar Jiwarajka

Designation :

Director

 

 

Name :

Mr. R. G. Kelkar (Union Bank of India Nominee)

Designation :

Director

 

 

Name :

Mr. Nadeem Panjetan (EXIM Bank Nominee w.e.f. 21-04-2011)

Designation :

Director

 

 

Name :

Mr. C. P. Ravindranath (EXIM Bank Nominee upto 21-04-2011)

Designation :

Director

 

 

Name :

Mr. Anil Kumar Jain

Designation :

Chairman And Managing Director

 

 

Name :

Mr. R. N. Gupta

Designation :

Joint Managing Director

 

 

KEY EXECUTIVES

 

Name :

Mr. R. Sundaram

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2012

 

Category of Shareholders

No. of Shares

Percentage of Holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

884983

2.49

http://www.bseindia.com/include/images/clear.gifBodies Corporate

5901601

16.63

http://www.bseindia.com/include/images/clear.gifSub Total

6786584

19.13

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

12400491

34.95

http://www.bseindia.com/include/images/clear.gifSub Total

12400491

34.95

Total shareholding of Promoter and Promoter Group (A)

19187075

54.08

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

507506

1.43

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

7470

0.02

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

2717161

7.66

http://www.bseindia.com/include/images/clear.gifSub Total

3232137

9.11

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

4416201

12.45

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

4667313

13.15

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

3487678

9.83

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

491230

1.38

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

254889

0.72

http://www.bseindia.com/include/images/clear.gifClearing Members

1742

0.00

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

234599

0.66

http://www.bseindia.com/include/images/clear.gifSub Total

13062422

36.81

Total Public shareholding (B)

16294559

45.92

Total (A)+(B)

35481634

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

35481634

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Cotton Yarn and Knitted Fabrics.

 

 

Products :

Item Code No. (ITC Code)

5205

Product Description

Cotton Yarn

Item Code No. (ITC Code)

6002

Product Description

Cotton Knitted Fabrics

Item Code No. (ITC Code)

8528.00

Product Description

Television Receiver

Item Code No. (ITC Code)

2523

Product Description

Cotton Woven and Processed Fabrics

 

 

PRODUCTION STATUS (As on 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity

Actual Production

Cotton Yarn ***

Spindles

64512

59520

@6550999

Cotton Knitted Fabrics #

Machine Nos.

20

8

46706

Readymade garments

PCS.

2430000

--

--

Cotton woven and processed fabric

Looms million Mtrs

324

128

18.13

Cotton woven and processed fabric ****

Million Meters

##94.60

36.50

16.30

Television receivers (CTV) and assemblies sub-assemblies thereof

Nos.

500000

500000

271940

Speaker units and assemblies and sub-assemblies thereof

Nos.

150000

150000

--

Domestic Air conditioners

Nos.

250000

250000

--

Mobile Handsets

Nos.

1200000

1200000

--

Home Appliances

Nos.

250000

250000

34241

 

 

* Based upon memorandum of information filed with the Secretariat of Industrial Approvals/Secretariat for Industrial Assistance, Government of India.

** As certified by the management

*** Includes Kgs 54101 (previous year 2650 kgs) of cotton yarn used for captive consumption.

**** Represents conversion by outside parties 291161 Mtrs. (Previous year 533100 Mtrs.) aginst fabric supplied by the Company.

# Relates to Gokul Shirgaon Spinning Unit.

# # Relates to Kagal Unit and based upon registration with Director of Industries, Government of Maharashtra

@ - Includes stock transfer to HT 845195 Kgs (Previous Year 1211751 Kgs)

 

Note: In production column Yarn and fabric are measured in "kgs.", Woven / Processed Fabric in "Million Meters" and others in "Nos."

 

GENERAL INFORMATION

 

No. of Employees :

500 (Approximately)

 

 

Bankers :

·         Union Bank of India

·         Canara Bank

·         Bank of India

·         Bank of Baroda

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2011

As on

31.03.2010

 

 

 

1) Debentures

 

 

10%  300 - Secured Redeemable Non Convertible Debentures of Rs.1.000Millions each (a)

279.900

299.400

Funded Interest on Debentures (a)

0.000

24.971

2) Term Loans

 

 

a) Rupee Loans

- From Financial Institutions (a)

361.541

390.026

- From Banks (a)

1150.443

1237.799

3) Working Capital Term Loans (a)

282.654

299.485

4) Demand Term Loan (d)

318.597

340.807

5) Funded Interest on Term Loans (a)

0.000

43.750

6) Interest accrued and due

7.066

7.709

7) Packing Credit Loans

 

 

- From Banks (b)

 

 

- In Rupees

1146.793

848.608

- In Foreign Currency

132.118

0.000

8) Hire Purchase Finance

- From Banks / Others (c)

1.305

1.747

Total

3680.417

3494.302

 

(a) Secured inter se on pari-passu basis by way of mortgage of all immovable properties and hypothecation of all moveable properties (save and except stocks and book debts and moveables of electronic division) both present and future. Loans of Rs.2393.594 Millions (previous year Rs.2636.238 Millions) are additionally secured by personal guarantee of the Managing Director.

 

(b) Secured by hypothecation of Raw materials, Semi finished goods, Finished goods, Stores and Spares, Goods in transit and Book Debts of Spinning and Home textile divisions, and further secured by second charge on Fixed Assets both present and future and personally guaranteed by the Managing Director.

 

(c) Secured against hypothecation of Vehicles acquired under Auto Loan Schemes.

 

(d) Secured against third charge on the fixed assets of the Company and additionally secured by personal guarantee of the Managing Director.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B. K. Shroff and Company

Chartered Accountants

Address :

3/7-B, Asal Ali Road, 1st Floor, Flat No.4, New Delhi-110 002, India

Tel. No.:

91-11-23271407 / 23284825 / 23284826

Fax No.:

91-11-23270362

E-Mail :

bkshroffdalhi@yahoo.com

bkshroffdalhi@rediff.com

 

 

Subsidiaries Company :

Pranavaditya Spinning Mills Limited

 

 

Associates Company :

·         Margo Finance Limited (Formerly Indocount Finance Limited)

·         Indocount Securities Limited

·         Rini Investment and Finance Private Limited

·         Sky Rise Properties Private Limited

·         Unic Consultants

·         Yarntex Exports Limited

 

 

CAPITAL STRUCTURE

 

As on 02.08.2011

 

Authorised Capital : Rs.600.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.379.816 Millions

 

 

As on 31.03.2011

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

55000000

Equity Shares

Rs.10/- each

Rs.550.000 Millions

5000000

Preference shares

Rs.10/- each

Rs.50.000 Millions

 

Total

 

Rs.600.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

35481634

Equity Shares

Rs.10/- each

Rs.354.816 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

354.816

333.150

330.650

2] Share Application Money

25.000

32.500

0.000

3] Reserves & Surplus

1601.488

1700.824

1687.186

4] (Accumulated Losses)

(252.397)

(342.758)

(156.649)

NETWORTH

1728.907

1723.716

1861.187

LOAN FUNDS

 

 

 

1] Secured Loans

3680.417

3494.302

3379.796

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

3680.417

3494.302

3379.796

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

5409.324

5218.018

5240.983

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

3609.930

3889.724

4022.105

Capital work-in-progress

20.532

6.291

10.791

 

 

 

 

INVESTMENT

181.079

180.855

187.292

DEFERREX TAX ASSETS

205.221

262.074

168.029

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1245.504

807.628

436.489

 

Sundry Debtors
526.473

500.308

212.874

 

Cash & Bank Balances
142.661

53.068

181.892

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
696.932

968.338

377.823

Total Current Assets
2611.570

2329.342

1209.078

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
894.571

1104.228

199.111

 

Other Current Liabilities
275.972

302.421

112.270

 

Provisions
48.465

43.619

44.931

Total Current Liabilities
1219.008

1450.268

356.312

Net Current Assets
1392.562

879.074

852.766

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

5409.324

5218.018

5240.983

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2011

31.03.2010

31.03.2009

 

SALES

 

 

 

 

 

Income

6362.503

3612.611

2624.378

 

 

Other Income

534.868

357.359

277.820

 

 

TOTAL                                     (A)

6897.371

3969.970

2902.198

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Material Cost

4656.334

2551.507

1352.125

 

 

Purchases - Traded Goods

3.023

0.000

0.000

 

 

Manufacturing and Other Expenses

1712.409

1431.790

1138.752

 

 

Exceptional items

46.011

115.159

677.176

 

 

Increase / (Decrease) in Stocks

(149.399)

(302.488)

39.869

 

 

TOTAL                                     (B)

6268.378

3795.968

3207.922

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

628.993

174.002

(305.724)

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

305.428

273.168

214.265

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

323.565

(99.166)

(519.989)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

176.439

180.927

185.305

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

147.126

(280.093)

(705.294)

 

 

 

 

 

Less

TAX                                                                  (H)

56.765

(93.984)

(180.239)

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

90.361

(186.109)

(525.055)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(342.758)

(156.649)

(119.910)

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Transfer to General Reserve

0.000

0.000

488.316

 

BALANCE CARRIED TO THE B/S

(252.397)

(342.758)

(156.649)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

4291.180

2908.917

2250.574

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

3.003

0.000

2.927

 

 

Stores & Spares

6.059

85.751

5.396

 

 

Raw Materials

15.698

156.500

22.890

 

TOTAL IMPORTS

24.760

242.251

31.213

 

 

 

 

 

 

Earnings Per Share (Rs.)

2.60

(5.59)

(17.46)

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2011

30.09.2011

31.12.2011

31.03.2012

 

30.06.2012

 

Type

1st Quarter

2nd Quarter

3rd Quarter

4th Quarter

5th Quarter

 Sales Turnover

1539.600

2061.000

1859.100

2113.500

2443.900

 Total Expenditure

1544.200

1974.900

1734.700

1903.900

2189.400

 PBIDT (Excl OI)

(4.600)

86.100

124.400

209.600

254.500

 Other Income

85.200

76.900

79.500

0.000

0.000

 Operating Profit

80.600

163.000

203.900

209.600

254.500

 Interest

77.200

90.100

97.000

85.900

105.000

 Exceptional Items

(1.400)

(15.600)

(59.400)

(46.900)

(59.400)

 PBDT

2.000

57.300

47.500

76.800

90.100

 Depreciation

43.800

44.100

44.600

44.400

43.400

 Profit Before Tax

(41.800)

13.200

2.900

32.400

46.700

 Tax

(13.200)

4.200

1.200

13.100

15.000

Profit After Tax

(28.600)

9.000

1.700

19.300

31.700

Extraordinary Items       

0.000

0.000

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

0.000

0.000

Net Profit

(28.600)

9.000

1.700

19.300

31.700

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2011

31.03.2010

31.03.2009

PAT / Total Income

(%)
1.31

(4.69)

(18.09)

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
2.31

(7.75)

(26.87)

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
2.36

(4.50)

(13.48)

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.09

(0.16)

(0.38)

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
2.83

2.87

2.01

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
2.14

1.61

3.39

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

Yes

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

----------------------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

PERFORMANCE REVIEW

 

Company as whole

During the year the Company has achieved a total income of Rs.7046.800 Millions as against Rs.4272.500 Millions on stand alone basis, thereby registering an impressive growth of around 65%.

 

Textile Division

During the year this division has achieved a sales turnover of Rs.5547.000 Millions as against Rs.3492.400 Millions during the previous year. Major part of this growth is attributed to Home Textile business.

 

Though the sales growth were encouraging, the sharp and unprecedented increase in the cost of Raw Material coupled with other input cost like power and labour have affected the margins.

 

The year also saw an improvement in the THEN economy, turnaround gave sigh of relief to the Indian Exporters.

 

The Spinning Division played a supporting role to the Home Textile Division.

 

The Government of Maharashtra has conferred First Award in Large Scale Industries (LSI) Textile Category for the Export Performance in the year 2009-10

 

With a view to multiply sales the Company has incorporated a Subsidiary Company namely INDO COUNT GLOBAL INC. in the United States of America, This will enable the Company to expand its clientele in USA, introduce its own Brand and improve the margin.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

1. TEXTILE DIVISION

 

·         Industry structure and developments

 

The number of composite textile units in the country has remained around 200 for a long time. These are in the organized sector and engaged in the complete value chain right from spinning to finishing of fabrics. Of this, about 10% is in the made up segment, rest being in the clothing segment.

 

Composite mills score over others in terms of attracting large buyers as also investors who want to take exposure in to and grow with the sector.

 

Composite mills have their presence in domestic and export markets. Some have strong local brands.

 

The Company has composite facilities and controls the complete value chain, having spinning, weaving, fabric processing, cut/sew and merchandising facilities. Presently, most of its production is exported. The Company has plans to enter in to domestic market either through its own brand or in partnership with existing channels. The management hopes to initiate this process at opportune time.

 

·         Opportunities and threats

Being predominantly export based, the Company's products are exposed to global economic conditions.

 

The joint efforts put in by the government of developed and developing (G20) countries to pull the global economy out of recession are expected to result in early restoration of consumer and business confidence. Hitherto, US and European countries accounted for about 65% of the global demand for Home Textile products. The Directors hope that the economic recovery would be faster and Indian textile exports will soon spring back to normal level and further grow.

 

The initiatives taken by the Government of India to help exporters are laudable and need to be continued to remain competitive in the global market.

 

·         Outlook

From the reports available in public domain, it is believed that the global economic recovery is in its way. It is only hoped that the growth momentum gathers, steam soon and fast. Indian textile industry is generally competitive and considering the positive business conditions developing, outlook for cotton textiles appears to be good.

 

2. ELECTRONIC DIVISION

 

Industry structure and developments

The consumer electronics industry is occupied by few branded Indian and multi national companies. Though the products are under common VAT system, non uniform tariff structure in different states and fiscal concessions granted by some state governments to local investment, have impact on the product pricing. Competition in this industry is therefore skewed.

 

In the retail segment, some private brands have been investing to get visibility and have established market share for their products.

 

·         Opportunities and threats

The technology in consumer electronic products has been fast changing. Continuous Investment is required to adapt to the change and keep abreast with the technological development.

 

The Company has plans to invest in upgradation of facilities and manpower skills to meet the challenges.

 

The new product offerings in the market place have spooked interest in the consumers. Product differentiation, affordable

pricing and easy financing methods have ensured reach of these products to the interior parts of the country and the

OEM/ODM units have larger role to play in the business growth. Considering the nearness to market, the logistics and handling of fragile/bulky goods, regional units such as yours, are preferred by these brands.

 

·         Outlook

The Company has established itself as a reliable electronic manufacturing services unit. Retail revolution has created new markets and the Directors believe there will be adequate opportunities for the Company to exist and expand the business.

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

Rs. In Millions

Particular

31.03.2011

31.03.2010

Amount outstanding in respect of export bills discounted under Export Letters of Credit (Since realized Rs.290.156 Millions, previous year Rs.140.171 Millions)

410.398

264.138

Bank Guarantees *

67.392

38.979

Claims not acknowledged as debts

1.110

1.078

Income tax/Custom Duty demands disputed in appeals

2.113

3.069

Corporate guarantee given to a bank for securing financial assistance to subsidiary Company

10.00

10.00

 

* The Company has given bank guarantee for Rs.0.411 Million to DGFT on behalf of Pranavaditya Spinning Mills Limited, Subsidiary Company for duty free import of Machines.

 

AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 31.03.2012

Rs. In Millions

Particulars

Quarter Ended

Nine Months Ended

 

Audited

31.03.2012

Unaudited

31.12.2011

Audited

31.03.2012

(a) Net Sales / Income from operations

2060.200

1859.900

7492.500

(b) Other Operating Income

53.300

73.700

275.300

Total Income

2113.500

1933.600

7767.800

 

 

 

 

Expenditure

 

 

 

a) Cost of Materials sold

1360.600

1312.700

5157.200

b) Purchase of traded goods

8.600

7.300

67.300

c) Change in inventories of finished of finished goods, work in program and stock – in-trade

(77.600)

(86.000)

(21.700)

d) Employees cost

1.162

96.500

366.800

e) Depreciation

14.000

44.600

176.900

f) Other expenditure

382.500

280.500

1131.600

g) Power and Fuel

113.6000

118.700

409.700

Total

1948.300

1774.300

7287.600

 

 

 

 

Profit from operations before other income, interest and exceptional Items

165.200

159.300

480.200

Other income

0.000

0.000

0.000

Profit before interest and exceptional Items

165.200

159.300

480.500

Finance charges

85.900

97.000

350.100

Profit after Interest but before Exceptional Items

79.300

62.300

130.100

Exceptional Items

(45.900)

(59.400)

(123.500)

Profit (+)/Loss(-) from Oridinary Activities before tax

32.400

2.900

6.600

Tax expense

 

 

 

Current Income Tax

-

--

--

Tax of Earlier Year

2.500

--

2.500

Deferred Tax  

10.600

1.200

2.800

Net Profit (+)/Loss(-) from Ordinary Activities after

tax

19.300

1.700

1.300

Extraordinary Items (net of tax expenses)

--

--

--

Net Profit (+) / Loss (-) for the year period

19.300

1.700

1.300

Paid up equity share capital (Face value of Rs.10/- per share)

354.800

354.800

354.800

Reserves excluding revaluation reserves as per balance sheet of previous accounting year

--

--

--

Reserve excluding revaluation reserves as per balance sheet

--

--

--

Debenture Redemption Reserve

--

--

--

Earnings per share (EPS)

 

 

 

 (a) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

0.05

0.05

0.04

(b) Basic and diluted EPS before Extraordinary items

for the period, for the year to date and for the

previous year (not to be annualised)

0.05

0.05

0.04

Public shareholding

 

 

 

          Number of shares

1,628,859

1,628,859

1,628,859

          Percentage of shareholding

45.93%

45.93%

45.93%

 

 

 

 

Promoters and Promoters group Shareholding-

 

 

 

a) Pledged /Encumbered

 

 

 

Number of shares

6,295,495

6,295,495

6,295,495

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

32.81%

32.81%

32.81%

Percentage of shares (as a % of total share capital of the company)

17.74%

17.74%

17.74%

 

 

 

 

b) Non  Encumbered

 

 

 

Number of shares

12,890,280

12,890,280

12,890,280

Percentage of shares (as a % of total shareholding of the promoter and promoter group)

67.19%

67.19%

67.19%

Percentage of shares (as a % of total share capital of the company)

36.33%

36.33%

36.33%

 

 

 

 

 

 

Segment Reporting

Rs. In Millions

Particulars

Quarter Ended

Nine Months Ended

 

Audited

31.03.2012

Unaudited

31.12.2011

Audited

31.03.2012

Segment Revenue

 

 

 

a) Textiles

1764.700

1413.400

5853.000

b) consumer Durables Goods/ Electronics

295.500

446.500

1639.500

Net Sales including Export Incentives

2060.200

1859.900

7492.500

 

 

 

 

Segment Results (Profit before interest and Tax)

 

 

 

a) Textiles

147.300

138.900

385.500

b) consumer Durables Goods/ Electronics

17.900

20.400

94.700

Total

165.200

159.300

480.200

 

 

 

 

Capital Employed (Assets- Liabilities)

 

 

 

a) Textiles

1869.300

2579.300

1868.300

b) consumer Durables Goods/ Electronics

252.000

238.900

253.000

Total

2121.300

2818.200

2121.300

 

NOTES

 

1) The above financial results were reviewed by the audit committed and approved by the Board of Directors an 25.05.2012

 

2) Margins of the company have been affected due to steep increase in the cost of major inputs coupled with exceptional item comprising forex loss during the year 

 

3) The Company has outstanding foreign Currency Derivative Contracts in the form of Options for hedging its business related exposure which ore not speculative in nature. The Contracts hove long dated tenor with multiple contingent / uncertain events. As such ascertainment of fair value of these Contracts is not feasible. Banks estimate MTM loss on these Contracts at Rs.240.900 millions as at 31st March 2012. As 30 is not mandatory. The Company has not provided for the Loss in its Books of Accounts.

 

4) The Company has only two reportable segments i.e. Textiles and Consumer Durable Goods / Electronics.

 

5) Previous period’s figures have been regrouped wherever necessary.

 

6) Details of Investor Complaints for the Quarter ended 31.03.2012: Beginning. - Nil, Received - 1, Resolved - 1, Pending Nil

 

 

FIXED ASSETS:

 

·         Land - Leasehold

·         Buildings

·         Plant and Machinery

·         Furniture and Fixtures

·         Factory and Office

·         Equipments

·         Vehicles

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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 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.54.44

UK Pound

1

Rs.87.00

Euro

1

Rs.69.48

 

 

INFORMATION DETAILS

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

2

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

2

--CREDIT LINES

1~10

3

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

26

 

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

-

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.