MIRA INFORM REPORT

 

 

Report Date :

24.11.2012

 

  1. Summary Information

 

 

 

Country

India

Company Name

ARVIND LIMITED

Principal Name 1

Mr. Sanjay S. Lalbhai

Status

Good

Principal Name 2

Mr. Jayesh K. Shah

 

 

Registration #

04-000093

Street Address

Naroda Road, Railwaypura Post, Ahmadabad – 380025, Gujarat, India

Established Date

01.06.1931

SIC Code

--

Telephone#

91-79-22121408 / 22203030 / 22200206 / 22208000 / 30138000/30138108-9

Business Style 1

Manufacturer

Fax #

91-79-22124314 / 22120267 / 22371396 / 22372342 / 22379184 / 22201608 /  22201270 / 30138680/ 30138668

Business Style 2

Exporter

Homepage

http://www.arvind.com

Product Name 1

Textile Fabric

# of employees

1800 (Approximately)

Product Name 2

--

Paid up capital

Rs.2580,431,000 /-

Product Name 3

--

Shareholders

Promoter and Promoter Group – 42.63 %

 

Public – 57.37 %

Banking

State Bank of India

 

Public Limited Corp.

Yes

Business Period

81 Years

IPO

Yes

International Ins.

-

Public Enterprise

Yes

Rating

A (65)

Related Company

Relation

Country

Company Name

CEO

Subsidiary

--

Asman Investment Limited

--

Note

-

 

  1. Summary Financial Statement

 

Balance Sheet as of

31.03.2012

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

11,112,800,000

Current Liabilities

9,886,600,000

Inventories

7,284,200,000

Long-term Liabilities

16,033,000,000 

Fixed Assets

22,690,600,000

Other Liabilities

128,200,000

Deferred Assets

0

Total Liabilities

26,047,800,000

Invest& other Assets

5,162,100,000

Retained Earnings

17,621,500,000

 

 

Net Worth

20,201,900,000

Total Assets

46,249,700,000

Total Liab. & Equity

46,249,700,000

 Total Assets

(Previous Year)

42,589,600,000

 

 

P/L Statement as of

31.03.2012

(Unit: Indian Rs.)

Sales

34,941,200,000

Net Profit

4342,300,000

Sales(Previous yr)

26,055,500,000

Net Profit(Prev.yr)

1,348,000,000

 

IDENTIFICATION DETAILS

 

Name :

ARVIND LIMITED (w.e.f. 14.07.2008)

 

 

Formerly Known As :

ARVIND MILLS LIMITED

 

 

Registered Office :

Naroda Road, Railwaypura Post, Ahmadabad – 380025, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

01.06.1931

 

 

Com. Reg. No.:

04-000093

 

 

Capital Investment / Paid-up Capital :

Rs.2580.431 millions

 

 

CIN No.:

[Company Identification No.]

L17119GJ1931PLC000093

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

AHMT00462A

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer, Exporter and Importer of Textile Fabric.

 

 

No. of Employees :

1800 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (65)

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 80800000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a flagship company of Lalbhai Group. It is an old and well established company having good track. It has achieved a healthy growth in its sales turnover and profits during 2012 over last year. Financial position of the company appears strong. Directors are reported to be well experienced and knowledgeable businessmen.

 

Trade relations are reported as trustworthy. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good 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 – 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

A2+ (Short term bank facilities)

Rating Explanation

Strong degree of safety and low credit risk.

Date

10.09.2012

 

Rating Agency Name

CARE

Rating

A- (Long term bank facilities)

Rating Explanation

Adequate degree of safety and low credit risk.

Date

10.09.2012

 

 

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/ Corporate Office/ Secretarial Department:

Naroda Road, Railwaypura Post, Ahmadabad – 380025, Gujarat, India

Tel. No.:

91-79-22121408 / 22203030 / 22200206 / 22208000 / 30138000/30138108-9

Fax No.:

91-79-22124314 / 22120267 / 22371396 / 22372342 / 22379184 / 22201608 /  22201270 / 30138680/ 30138668

E-Mail :

india@arvindmills.com

investor@arvind.com

rv.bhimani@arvind.in

feedback@arvind.com

Website :

http://www.arvindmills.com

http://www.arvind.com

 

 

Factory 1 :

Lifestyle Fabrics–Denim, Naroda Road, Ahmedabad - 380025, Gujarat, India

Tel. No.:

91-79-30138000 / 30138181

Fax No.:

91-79-30138671

E-Mail :

subir.mukherjee@arvind.in

 

 

Factory 2 :

Lifestyle Fabrics–Shirting, Khakis and Knitwear, Santej, PO Khatrej, Taluka Kalol, Dist. Gandhinagar-382721, Gujarat, India

Tel. No.:

91-2764-395560

Fax No.:

91-2764-395040

E-Mail :

pranav.dave@arvind.in

 

 

Factory 3 :

Lifestyle Apparel–Knits, Santej, PO Khatrej, Taluka Kalol, Dist. Gandhinagar - 382721 , Gujarat, India

Tel. No.:

91-2764-395410

E-Mail :

nitin.seth@arvind.in

 

 

Factory 4 :

Lifestyle Apparel–Shirts, No. 23/1, Sonnenahalli Villege, Sitaram Palya Cross, ITPL Road, Brook field, Mahadevpura Post, Bangalore - 560048, India

Tel. No.:

91-80-33717000

E-Mail :

ashish.kumar@arvindexports.com

 

 

Factory 5 :

Lifestyle Apparel–Jeans, 26/2, 27/2 Kenchenahaili, Mysore Road, Near Bangalore University, Bangalore-560059, India

Tel. No.:

91-80-33719000

E-Mail :

ashish.kumar@arvindexports.com

 

 

Factory 6 :

Arvind Intex, Rajpur Road, Gomtipur, Ahmedabad - 380021, Gujarat, India

 

 

Factory 7 :

Ankur Textiles, Outside Raipur Gate, Ahmedabad - 380022, Gujarat, India

Tel. No.:

91-79-30137200 / 30137231

Fax No.:

91-79-30137231

E-Mail :

brijesh.bhati@arvind.in

 

 

Factory 8 :

Arvind Polycot, Khatrej, Taluka Kalol, Dist. Gandhinagar- 382721, Gujarat, India

 

 

Factory 9 :

Arvind Cotspin, D-64, MIDC, Gokul Shirgaon, Tal. Karveer, Kolhapur - 416234, Maharashtra, India

 

 

Branch Office 1 :

MUMBAI

Neptune House, 2nd Floor, Opposite Bandra Talkies, SV Road, Mumbai – 400050, Maharashtra, India

Tel. No.:

91-22-26513367/68/69

Fax No.:

91-22-26513472

 

 

Branch Office 2 :

DELHI

8 Community Centre, Saket, New Delhi– 110017, India

TeleFax :

91-11-51664620/24

 

 

Branch Office 3 :

BANGALORE

Grace Mansion, 25 Infantry Road, Bangalore – 560001, Karnataka, India

Tel. No.:

91-80-22865117/7697

Fax No.:

91-80-22860564

 

 

Branch Office 4 :

KOLKATA

100, Park Street, Laxmi Nivas, 2nd Floor, Kolkata , West Bengal, India

TeleFax :

91-33-22835792

 

 

Branch Office 5 :

International Offices

USA

Arvind Worldwide (USA) Inc., 130, West 42nd Street, Suite No. 603, 6th Floor, NY 10036, New York, USA

Tel. No.:

001-212-768-4815

Fax No.:

001-212-768-7378

 

 

Branch Office 6 :

SRI LANKA

Sri Lanka Liason Office, 207/24, 2/2 Dharmapala Mawatha, Colombo, Sri Lanka

TeleFax :

0094-11-2678564

 

 

Branch Office 7 :

BANGLADESH

C/o Sidko Limited.

7th Floor, Paragon House , Mohakali Commercial Area, Dhaka – 1212, Bangladesh

Tel. No.:

8802-9881794

Fax No.:

8802-9883400

 

 

Branch Office 8 :

Sharda Trust

Asoka Spintex Premises, Naroda Road, Ahmedabad – 380025, Gujarat, India

Tel. No.:

91-79-22200817/3266

Fax No.:

 91-79-22200457

 

 

Garment Export Division  :

10th Floor, Du Parc Trinity, 17 MG Road, Bangalore -560001, Karnataka, India

 

 

Overseas Office 1 :

Arvind Worldwide Inc.

130, West, 42nd Street, Suite 603, 6th Floor, New York, New York -10036, USA

Tel No.:

+(212)768-4815

E mail:

raju@arvindusa.com

 

 

Overseas Office 2 :

Arvind Limited

Unit : 1705, 17th Floor, Rendy Centre, 682-684, Castle Peak Road, Cheung Sha Wan, Kowloon, Hong Kong

Telefax :

00852-35283112

E-Mail :

arvindmills@netvigator.com

 

 

Overseas Office 3:

Arvind Limited

Plot No.221 Bir Uttam Mir Shawkat Road, (Gulshan – Tejgaon Link Road) Tejgaon I/A, Dhaka – 1208, Bangladesh

Tel No.:

880-2-9887123 / 124

E-Mail :

p.anilkumar@arvind.com

 

 

 DIRECTORS

 

As on 31.03.2012

 

Name:

Mr. Sanjay S. Lalbhai

Designation:

Chairman and Managing Director

Qualification:

Science Graduate, Master’s Degree in Business Management

Date of Joining:

March, 1977

 

 

Name:
Mr. Jayesh K. Shah

Designation:

Director and Chief Financial Officer

Qualification:

Commerce Graduate Chartered Accountant

Date of Joining:

01.07.1993

 

 

 

Name :

Mr.Punit S. Lalbhai

 

Designation :

Executive Director

 

 

 

 

Name :

Mr.Kulin S. Lalbhai

 

Designation :

Executive Director

 

 

 

 

Name :

Mr. Sudhir Mehta

 

Designation :

Director

 

 

 

 

Name :

Dr. Bakul Dholakia

 

Designation :

Director

 

 

 

 

Name :

Mr. Munesh Khanna

 

Designation :

Director

Qualification :

Chartered Accountant

 

 

 

 

Name :

Ms. Renuka Ramnath

 

Designation :

Director

 

 

 

 

Name :

Mr. G.M. Yadwadkar

 

Designation :

Nominated by IDBI Bank Ltd.

 

 

 

 

Name :

Mr. Prabhakar Dalal

 

Designation :

Nominated by Export-Import Bank of India

 

 

KEY EXECUTIVES

 

Name :

Mr. R.V. Bhimani

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

2845458

1.11

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

106899353

41.53

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

109744811

42.63

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

 

 

Total shareholding of Promoter and Promoter Group (A)

109744811

42.63

(B) Public Shareholding

 

 

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

 

 

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

30498906

11.85

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

562431

0.22

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

22

0.00

http://www.bseindia.com/include/images/clear.gifInsurance Companies

17138995

6.66

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

38457493

14.94

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

1213

0.00

http://www.bseindia.com/include/images/clear.gifForeign Bank/IFCW

1213

0.00

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

86659060

33.66

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

 

 

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

8613659

3.35

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

40588454

15.77

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

8902868

3.46

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

2922807

1.14

http://www.bseindia.com/include/images/clear.gifNRIs/OCBs

1717946

0.67

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

3314

0.00

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

1201547

0.47

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

61027788

23.71

Total Public shareholding (B)

147686848

57.37

Total (A)+(B)

257431659

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

611410

0.00

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

611410

0.00

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

258043069

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer, Exporter and Importer of Textile Fabric.

 

 

Products :

Product Description

Item code No.

Denim

52094200

Woven Fabrics of Cotton weighting not more than 200g/m2

52080000

Mens/ Boys Trousers/ Pants and Shorts

62034200

Mens/ Boys Shirts

62052000

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

 

Installed Capacity

Spindles

72872

Rotors

5472

Knitting Machines

116

Looms

1162

EPBAX / RAX System Lines

200000

Garments (Pcs.)

13120000

 

Note:

  1. The company is exempt from the licensing provisions of the Industrial (Development and Regulation) Act, 1951
  2. Installed Capacity is as certified by the management and relied upon by the auditors, being a technical matter.

 

Particulars

Unit

Actual Production

(Quantity in millions)

Cloth *

Meters

138.200

Cloth **

Kgs.

3.200

Yarn ***

Kgs.

0.100

EPBAX

Lines

0.200

Garments ****

Nos.

12.900

Yarn @

Kgs.

0.800

Grey @

Meters

0.600

Grey @

Kgs.

(443310.000)

 

*Net of internal consumption of 9.500 Millions (3.900 Millions) Meters

**Net of internal consumption of 1.00 Millions (2.500 Millions) Kgs

***Net of internal consumption of 6.900 Millions (6.800 Millions) Kgs

****Includes Garments produced outside the company by job workers, Net of Internal Consumption of (7478) Pcs.

 @ Semi Processed Goods meant for sale

 

Note:

Quantity of cloth shown in opening stock, production and closing stock is packed cloth only and does not include loose finished cloth lying in folding/ stamping department.

 

GENERAL INFORMATION

 

No. of Employees :

1800 (Approximately)

 

 

Bankers :

·         State Bank of India

·         Bank of Baroda

·         UCO Bank

·         State Bank of Patiala

·         HDFC Bank Limited

·         Standard Chartered Bank

·         ICICI Bank Limited

·         Export-Import Bank of India

·         Axis Bank Limited

·         State Bank of Hyderabad

·         IDBI Bank Limited

·         Canara Bank

 

 

Facilities :

Secured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

From Banks

6034.600

6389.900

From Financial Institutions and Others

1013.100

1438.300

Working Capital Loans repayable on demand from Banks

8559.600

7777.300

Total

15607.300

15605.500

 

 

 

Unsecured Loan

31.03.2012

(Rs. in Millions)

31.03.2011

(Rs. in Millions)

From Financial Institutions and Others

25.800

25.800

Deferred Electricity Duty

0.000

83.800

Finance Lease Obligation

0.000

0.000

Under Buyer’s Credit Arrangement from Banks

380.700

267.800

Intercorporate Deposits

 

 

From Related Parties

4.200

3.600

From Others

15.000

10.200

Total

425.700

391.200

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Sorab S. Engineer and Company

Chartered Accountants

Address :

Ismail Building 381, Dr. D. Naoroji Road Fort, Mumbai-400 001, Maharashtra, India

 

 

Subsidiary Companies:

·         Asman Investment Limited

·         The Anup Engineering Limited

·         Arvind Retail Limited

·         Arvind Lifestyle Brands Limited

·         Arvind Accel Limited

·         Syntel Telecom Limited

·         Arvind Infrastructure Limited

·         Arvind Brands and Retail Limited

·         Arvind Envisol Private Limited

·         Arvind PD Composites Private Limited

·         Arvind Worldwide Inc., USA

·         Arvind Worldwide (M) Inc., Mauritius

·         Arvind Overseas (M) Limited, Mauritius

·         Arvind Spinning Limited, Mauritius

·         Arvind Textile Mills Limited, Bangladesh

 

·          

Joint Venture/Limited Liability Partnership:

·         Arya Omnitalk Wireless Solutions Private Limited

·         Tommy Hilfiger Arvind Fashions Private Limited (Formerly known as Arvind Murjani Brands Private Limited)

·         Arya Omnitalk Radio Trunking Services Private Limited

·         Arudrama Developers Private Limited

·         Arvind Bsafal Homes LLP

·         Ahmedabad East Infrastructure LLP

·         Arvind and Smart Value Homes LLP

 

 

Company under the control of Key Managerial Personnel:

Aura Securities Private Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

565000000

Equity Shares

Rs.10/- each

Rs.5650.00 Millions

10000000

Preference Shares

Rs.100/- each

Rs.1000.000 Millions

 

 

 

 

 

Total

 

Rs.6650.000 Millions

 

Issued Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

254633441

Equity Shares

Rs.10/- each

Rs.2546.300 Millions

 

 

 

 

 

Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

254633441

Equity Shares

Rs.10/- each

Rs.2546.300 Millions

 

Add: 900 Shares (Rs.45000.000 Millions Originally Paid up)

 

Rs.34.100 Millions

 

 

 

 

 

Total

 

Rs.2580.400 Millions

 

Reconciliation of Number of Equity Shares

 

 

31.03.2012

 

No. of Shares

Rs. in Millions

Balance at the beginning of the year

254,400,041

2544.000

Add :

 

 

Shares alloted persuant to conversion of warrants

-

-

Shares alloted persuant to exercise of Employee Stock Option Plan

232,500

2.300

Balance at the end of the year

254,632,541

2546.300

 

Rights, Preferences and Restrictions attached to Shares

 

Equity Shares:

 

The Company has one class of shares referred to as equity shares having a par value of Rs.10 each. Each shareholder is entitled to one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding

 

Details of Shares held by Shareholders holding more than 5% of the aggregate shares in the Company

 

Particulars

31.03.2012

Aura Securities Private Limited

85738882

33.67%

Life Insurance Corporation of India

16558953

6.50%

 

Proposed Dividend

 

The final dividend proposed for the year is as follows:

 

Particulars

31.03.2012

On Equity Shares of Rs.10/- each

 

Dividend per Equity Share (Rs.)

1

Percentage of Dividend Proposed

10%

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2012

31.03.2011

31.03.2010

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

2580.400

2544.000

2395.500

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

17621.500

15411.100

11804.500

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

20201.900

17955.100

14200.000

LOAN FUNDS

 

 

 

1] Secured Loans

15607.300

17632.300

17287.300

2] Unsecured Loans

425.700

488.900

1418.500

TOTAL BORROWING

16033.000

18121.200

18705.800

DEFERRED TAX LIABILITIES

128.200

128.200

128.200

 

 

 

 

TOTAL

36363.100

36204.500

33034.000

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

22690.600

20019.600

19181.100

Capital work-in-progress

1791.000

1422.800

468.600

 

 

 

 

INVESTMENT

3371.100

3094.000

3002.900

DEFERREX TAX ASSETS

0.000

0.000

0.000

Foreign Currency Monetary Item Transaction Difference in Account

--

(7.500)

(10.600)

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
7284.200
6991.600
4320.000

 

Land held for sale
--
345.000
0.000

 

Sundry Debtors
4055.500
5636.300
4241.600

 

Cash & Bank Balances
393.700
290.900
431.400

 

Other Current Assets
2624.000
1005.200
959.000

 

Loans & Advances
4039.600
3791.700
4848.000

Total Current Assets
18397.000
18060.700
14800.000

Less : CURRENT LIABILITIES & PROVISIONS
 
 

 

 

Sundry Creditor
6316.700
4245.600
3478.400

 

Other Current Liabilities
2129.100
2031.300
855.800

 

Provisions
1440.800
108.200
73.800

Total Current Liabilities
9886.600
6385.100
4408.000

Net Current Assets
8510.400
11675.600
10392.000

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

36363.100

36204.500

33034.000

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Sales

34941.200

26055.500

22524.900

 

 

Operating Income

--

856.700

644.000

 

 

Other Income

1358.100

345.100

118.300

 

 

TOTAL                                     (A)

36299.300

27257.300

23287.200

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Raw Material Consumed

15687.600

12901.500

9687.300

 

 

Purchase of finished Goods

 

367.900

476.100

 

 

Employee’s Emoluments

3605.100

2739.000

2409.000

 

 

Others

--

7729.300

7314.300

 

 

Increase/(Decrease) in Finished Goods

--

(935.900)

187.800

 

 

Purchases of Stock in Trade

374.000

--

--

 

 

Changes in inventories of finished goods, work-in-progress and stock-in-trade

42.800

--

--

 

 

Other expenses

10219.300

--

--

 

 

Extraordinary Items

(2518.000)

--

--

 

 

TOTAL                                     (B)

27410.800

22801.800

20074.500

 

 

 

 

 

Less

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

8888.500

4455.500

3212.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

2702.500

1945.900

1554.700

 

 

 

 

 

 

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

6186.000

2509.600

1658.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1305.100

1161.600

1138.000

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                 (G)

4880.900

1348.000

520.000

 

 

 

 

 

Less

TAX                                                                  (H)

538.600

0.000

0.000

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

4342.300

1348.000

520.000

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4501.200

3144.200

2823.400

 

 

 

 

 

Less

ADJUSTMENT DUE TO DEMERGER

--

0.000

4.300

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim Dividend Paid on Preference Shares

258.000

0.000

7.600

 

 

Tax on Interim Dividend

--

0.000

1.300

 

 

Transitional Provision on Adoption of AS – 30

--

0.000

0.000

 

 

Transitional Provision on Exercise of option of AS – 11

--

0.000

0.000

 

 

Transferred to Capital Redemption Reserve

--

0.000

198.000

 

 

Transferred from Debenture Redemption Reserve

--

(9.000)

(12.000)

 

 

Dividend distribution tax on Proposed dividend on Equity Shares

41.900

--

--

 

BALANCE CARRIED TO THE B/S

8543.600

4501.200

3144.200

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of Goods on FOB basis

14895.500

11375.800

10614.600

 

TOTAL EARNINGS

14895.500

11375.800

10614.600

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

1577.200

485.800

65.300

 

 

Dyes and Chemicals, Stores and Spare Parts

612.700

665.400

497.600

 

 

Raw Materials and Accessories

1233.700

552.200

809.700

 

 

Finished Goods

0.000

0.000

0.000

 

TOTAL IMPORTS

3423.600

1703.400

1372.600

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

16.83

5.64

2.27

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

Type

1st Quarter

Net Sales

8520.700

Total Expenditure

7311.200

PBIDT (Excl OI)

1209.500

Other Income

243.000

Operating Profit

1452.500

Interest

629.200

Exceptional Items

0.000

PBDT

823.300

Depreciation

361.800

Profit Before Tax

461.500

Tax

6.900

Provisions and Contingencies

0.000

Profit After Tax

454.600

Extraordinary Items

0.000

Prior Period Expenses

0.000

Other Adjustment

0.000

Net Profit

454.600

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
11.96
4.95
2.23

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
13.97
5.17
2.31

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
11.88
3.54
1.53

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.24
0.08
0.04

 

 
 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 
1.28
1.36
1.63

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
1.86
2.83
3.36

 

 

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

Yes

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

No

30]

Major Shareholders, if available

Yes

31]

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

Yes

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

 

 

OPERATIONS

 

The Financial year 2011-12 was extremely challenging year for their company. The year was characterized by global slowdown, weak retail demand at home, high volatility in cotton prices and foreign exchange and higher interest cost. It is satisfying to note that in the backdrop of such a challenging environment, their Company has closed the financial year 2011-12 with 30% growth in sales and 28% growth in Operating Earnings before Interest Depreciation and Taxes (Operating EBITDA). PAT (excluding Exceptional Income) has shown a growth of 75% compared to the previous year.

 

 

FINANCE

 

During the year, the Company has repaid the installments of Term Loans amounting to Rs. 4010.000 Millions falling due during the current year. The Company has also made fresh borrowings of Rs. 2230.000 Millions for funding capital expenditure and other requirements. Long Term Debt including lease of the Company stands to Rs. 8290.000 Millions as on 31st March, 2012.

 

 

OVERVIEW OF THE ECONOMY

 

Year 2011-12 witnessed a confluence of multiple domestic and global factors impacting the macro-economic scenario in India which negatively affected the image of the country as an attractive investment destination

in the short term. The factors varied from, lack of consensus within the government for pushing reforms, large fiscal slippage, deterioration in governance, persistently high WPI inflation for majority of the year, to turmoil in the euro zone and questionable outlook of the US economy. All these conflicting demands created a significant challenge for the RBI and government to balance between managing growth and achieving price stability, resulting in a lower GDP growth rate for 2011-12 estimated to be around sub-7% level from a consistent high of 8.4% for the preceding two years.

 

As they step into a new financial year 2012-13, the consumer sentiments have still not fully recovered from the multiple shocks of last year despite ease in various parameters i.e. WPI inflation has dropped sharply in Q1’2012

and expected to remain in a 6-7% range through 2012, repo rate cut by RBI signalling shift in focus from controlling inflation to fuelling growth and increase in rural income supported by government programs. However despite current weaker sentiments, the long term economic growth potential of India remains intact due to strength of growing middle-income population, continued focus on economic reforms despite slow progress and an attractive investment destination for global investors.

 

As per NCAER estimates, Indian economy is expected to grow at 7.3% in the coming year 2012-13 depending on the level of rebound in domestic investment, buoyancy in consumer sentiments and key policy reform signals. Several risks may arise to pose significant challenge to the improving growth momentum like unfavourable monsoon or constrained food supply due to procurement bottlenecks may keep domestic food price inflation high at around 9% in 2012, increased subsidy from the food security bill, continued INR depreciation and a worsened economics of the euro zone. Due to shortage of demand in Europe and the US, it is expected that India’s exports growth rate is likely to fall from 21% in 2011-12 to 13.2 % in 2012-13

 

Indian Textile Industry

 

The Indian textile industry is likely to grow by 16 percent this year and could reach US$ 115 billion by 2012-end, according to a recent report released by Assocham. The domestic market is likely to increase from Rs.34.6 billion to Rs.60 billion by 2012. India’s share of global textile exports is poised to increase from current 4% to around 7% over the next three years. The Synthetic and Rayon Textile Export Promotion Council (SRTEPC) has set a target to more than double the export of man-made textile from the country. Globally, the man-made fibre trade accounts for 60% of the total trade in textiles. SRTEPC plans to increase exports to Rs.6.2 billion by capturing 4% market share by 2012.

 

India’s textile industry, which chiefly consists of ginning, spinning, weaving and processing industries, contributes 4 percent to the country’s GDP, about 14 percent to the total industrial production, and accounts for about 17 percent of the country’s foreign exchange earnings. The US and the EU nations account for almost two-thirds of India’s textile exports. The other major destinations are Bangladesh, Turkey, Japan, South Korea, Canada, Saudi Arabia and UAE. In order to keep the textile industry competitive and world class, there is a periodic need for installing new machinery, adopting latest technology, and improving availability of accessories.

 

At a macro-level, Indian exports growth have shown remarkable diversification and strength over the past few years with Textiles registering a CAGR (FY03-11) of 9%, indicating the rising competitiveness of India’s

textile sector.

 

However, during the same period FY03-11, the share of textile exports in the overall export basket has fallen from 21% to 9% indicating the increasing competitive pressures that the country is facing from other exporting nations particularly China and Pakistan.

 

Cotton

 

For the new cotton season (Nov’11 – Oct’12), Cotton Advisory Board has estimated the domestic acreage at 122 Lakhs hectares leading to a production of 356 Lakhs bales, as against 325 Lakhs bales from 103 Lakhs hectares in 2010-11. Additionally, the price of cotton has stabilized at around Rs 35,000 per candy after touching a high of Rs.67, 000 during early part of 2011. It is likely that Government of India may announce higher minimum support price for cotton for the coming season. This along with permission to export cotton more freely may result in increase in cost of cotton for the coming season.

 

Indian Rupee Depreciation Improves Export Earnings

 

The depreciation of the Indian rupee against the US dollar and euro since August 2011 improved India’s competitive positioning in the export market, as currencies of competitors depreciated by lower rate or appreciated during the same period. Therefore, should the trend remain the effect will be positive on the rupee revenue of exporters. However, the benefit would be offset for companies with forex debt, or higher percentage

imports of raw material over product exports. While rupee depreciation is considered good for net foreign exchange earners, very sharp volatility that was witnessed in second half of 2010-11 and which is being witnessed from April 2012, makes it very difficult for exporters to, on one hand, hedge the future foreign currency earnings and the other hand manage foreign currency debt.

 

Textile Outlook

 

Going forward, textile exports faces both positive and negative factors, like depreciating rupee and decreasing cost competitiveness of China is going to give positive impetus to India exports while at the same time economic

uncertainty in US and Europe and volatile global markets affecting demand and volatile foreign exchange rates and increase in minimum support price for cotton are likely to negatively affect revenue and margins for the textile industry.

 

Technology Upgradation Fund Scheme (TUFS)

 

The Technology Upgradation Fund Scheme (TUFS) launched in 1999, provides for interest Subsidy and capital subsidy and has been important tool to infuse financial support to the textiles industry and help it capitalize on the vibrant and expanding global and domestic markets, through technology upgradation, cost effectiveness, quality production, efficiency and global competitiveness. TUFS which was suspended earlier and had been reintroduced on 28th April 2011 has expired on 31st March 2012 and currently industry is unclear about when and how the same will be resumed. This has led to uncertainty about cost of borrowing for ongoing and planned investments in textile sector.

 

Indian Retail Market

 

Organized retail in India is gaining momentum. The size of India’s retail market is large at Rs.22.2 trillion (March, 2011), within which organized retail has a low share of Rs.1.6 trillion, i.e., a penetration rate of 7.1%. Over the past four years, the size of the organized retail market has risen at a CAGR of 19.3% and its penetration rate has increased to 8.2% as per analyst estimates. Apparel as a category commands nearly 7% of the wallet share

of the average consumer.

 

Organised Indian retail market which was growing at about 15%-20% for past few years has slowed down after Diwali festive season last year due to overall slowdown in economy and a very steep increase in prices of products due to sharp increase in prices of fabrics on account of cotton cost increase and introduction of excise by Central Government in 2011. Although cotton prices have reduced in recent past, the retail industry is still left with the expensive inventory which will continue to exert pressure on margins for coming few quarters.

 

 

BUSINESS REVIEW AND DEVELOPMENTS

 

Denim

 

Amidst the challenging macro-economic scenario, Denim business has achieved satisfactory performance in the year 2011-12. The Total Revenue for Denim registered growth of 18%, the Volume remaining almost stable. During the year the management focus was on improving the operating profitability of the business. Several initiatives were taken for improving product and customer mix so as to achieve higher contribution per meter. As part of ongoing product innovation initiatives, Company is developing several differentiated products to remain ahead of the competition.

 

Operational Improvements:

 

An Operation Excellence drive is launched for improving productivity and manufacturing costs. This has led to reduction in lead time, improvement in throughput and reduction of rejections. Further several IR initiatives were taken during the year for fostering healthy work practices and motivating shop-floor environment. Udaan, high performance, high potential development program for junior management staff has helped identify, build and develop a talent pool to move into lateral cross functional roles, enabling leveraging of talent. Currently Company is witnessing strong demand for Denim and hence has strong positive outlook.

 

Shirting and Khakhi Fabrics

 

The Total Revenue for Shirting and Khakhi registered growth of 11%, the Volume remaining almost stable. US market continues to contribute in shirting export business and having YoY growth of more than 14% in the current financial year.

 

The Company has made foray in Bangladesh retail market for shirting fabric and has received very encouraging response in the short time. The Company is also witnessing strong growth in women’s wear segment. Retailing the shirting fabrics under the brand name of “Arvind” shows lot of potential for the growth. The outlook for Shirting fabric business continues to remain positive.

 

Exchange Rate

 

The Rupee which was 44.22 in April 2011 remained volatile upto July 2011 and then constantly depreciated from 46.09 in August 2011, 48.98 in September 2011, 52.21 in November 2011 to 53.11 in December, 2011. It started recovering at 49.45 in January, 2012 and then 49.01 in February 2012. At the year end, it was 50.88. The Company had taken forward cover on net dollar exposure and the average exchange rate for the entire year was in range of Rs.47.50 to a US dollar.

 

SUBSIDIARIES

 

Arvind Lifestyle Brands Limited

 

During the year 2011-12 Branded Apparel business which recorded sales of Rs.6690.000 Millions against a sale of Rs.4150.000 Millions in the previous financial year clocking a growth of 61%. EBIDTA grew by 50% at Rs.560.000 Millions. During the year Company added 1.16 Lakhs sq. ft. of retail space by opening new 124 stores. Arrow and Flying machine continued its upward journey

 

by growing at 35% and 27% respectively. US Polo with growth of 185% is emerging as one of the fastest growing international apparel brand in India. Gant and IZOD the other two international brands continue to grow. During the year the Company successfully launched yet another brand “Elle”.

 

Arvind Retail Limited

 

The retail business grew by 37% at Rs.5230.000 Millions. Currently there are 216 Mega-Mart stores with 6.92 Lakhs sq ft of retail space.

 

The year 2011-12 was extremely challenging year. The operating margins were under severe pressure on account of higher cotton prices leading to increased COGS and also on account of levy of excise duty on branded garments. In order to improve its pricing power now MEGAMART is being repositioned from “discount” to “value retail” model.

 

Anup Engineering Limited

 

Anup Engineering Limited is engaged in engineering and fabrication business listed on Ahmedabad Stock Exchange. The company’s revenue fell by 19% and EBIDTA fell by 37%.

 

OUTLOOK

 

The Company is witnessing strong demand in the international markets especially for Denim. However domestic retail market is sluggish which is likely to keep demand for woven fabrics muted. The sluggish retail demand may affect the growth of MEGAMART. At the same time the brands like Arrow and US Polo continues to show lot of promise for growth. The sharp rupee depreciation could lead to pressure on fabric prices and since the Company has hedged FX exposure around Rs.51 to USD. Sharp depreciation of INR against USD may put downward pressure on unit price realisation in USD terms affecting the margins adversely. The depreciation of currency, freeing of exports and increase in minimum support price may push up cotton prices and yarn prices.

 

Under the above scenario, the Company is expecting revenue growth of about 12-14% for the year 2012-13. The Textiles business may achieve volume 14-16%, where as Brands and Retail business may clock volume growth of 15% to 18%. The Revenue growth will be lower as products prices have been reduced following reduction in input cost.

 

Strategy and Programmes for “Corporate Social Responsibility” 2011-12

 

The Strategic Help Alliance for Relief to Distressed Area (SHARDA) Trust and Narottam Lalbhai Rural Development Fund (NLRDF) are the company’s arms for carrying out the CSR Programmes. SHARDA and NLRDF have been active in improving the quality of life of the urban poor and rural poor respectively.

 

SHARDA Trust’s Programmes

 

The programme carried out during the year 2011-12 is their ambitious education programme “Gyanda – Fountain of knowledge” that the company launched in 2006 to improve the quality of education poor children receive. Through the programme Gyanda, the Trust has been actively teaching English, Computers and Mathematics to the students of standard V, VI and VII. It is strongly felt that without understanding of these subjects, a child would be a misfit in the contemporary world. The programme aims to track student’s performance for six to eight years,

ensure that the bright and interested students complete their education well and hope that it is the last generation in poverty for them.

 

The year 2012 marks the completion of six years as their first batch of students appeared for class XI exams. The programme is six years old now. Their first batch that started in 2006 from standard V, will reach to standard XII in June 2012. As envisaged, the immediate benefit is visible now as the children complete their school education. This will help them in having a career and their chances of coming out of poverty are now verybright.

 

There are about 1200 students associated with this programme across standard V to XII. Because of their rich experience, the number is expected to reach to 1500 by 2014-15 as their conversion ratio from Class V to VIII has almost doubled and they have added class XI and XII is in the programme. Along with their three Gyanda primary education centres, we now have two more secondary education centres.

 

For the CSR team, it is a beginning of a new era This, they believe, will lead to Expansion of the present Gyanda Programme and setting up of an education and vocational education model for the students completing Gyanda programme.

 

NLRDF’s Programmes

 

NLRDF directly intervenes in the development process at the village level through specifically designed programmes and works efficiently with rural poor for their upgradation and development. The present operational area includes 12 districts of Gujarat state reaching out to a beneficiary population of about 25000. NLRDF has been working with the strategy of linking of government programmes with the rural poor and thereby increasing the efficiency and the effectiveness of the delivery process. The Entrepreneurship programmes for Widows, programmes for HIV / AIDS awareness and control, programmes for improving the level of health and nutrition among the non-school going and school going girls and skill upgrading programmes for the rural poor are some of the programmes that NLRDF undertook during 2011-12.

 

In India, widows need special attention and care as the social and cultural paradigms do not support their respectable survival. In order to accomplish widow’s needs and requirements, NLRDF closely works with Government Agencies and facilitates the implementation of Entrepreneurship program for widows. The biggest benefit that their trainee widows get is the self confidence. Another noticeable gain from this program is that they could step out of their houses confidently, which they could not do earlier. NLRDF also teaches them basic management principals, which help them to identify the market segment, target customers, book keeping, costing

of the products and product selection which help them yield a long term return on investment. Considering their excellent performance for last five years the Government of Gujarat awarded highest target in Gujarat to NLRDF of training widows in 6 districts of Gujarat in one year. Accordingly during the year 2011-12, 1111 widows of 6 districts were trained.

 

The NLRDF has also worked for HIV/AIDS control under National Aids Control Program since 2003 in Sabarkantha district. The aims of the project are envisaged as to half and reverse the epidemic in India over

five years. The intervention provides services to Core population i.e. FSW and MSM through Behavioural Change Communication, Counselling, STD treatment and Enabling environment and Referral and linkages. The efforts of the Trust have been recognized by the Expert External Evaluators of the program which lead to their inclusion among top 3 NGOs in the state.

 

NLRDF has also trained 30 tribal youths in Masonry work and a kit for mason work was provided after training resulting into immediate income generation.

 

COMPANY BACKGROUND

 

Arvind Limited is one of the India’s leading vertically integrated textile companies with the presence of almost eight decades in this industry. It is among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments. Arvind, through its subsidiary company Arvind Lifestyle Brands Limited, is marketing in India the branded apparel under various brands and is also licensee in India for various international brands. The brands portfolio of the company includes International brands like Arrow, US Polo, Izod, Elle, Cherokee etc. Through another subsidiary company, Arvind Retail Limited, Arvind operates apparel Value Retail stores MEGAMART. Arvind also has the presence in Telecom business directly and through joint venture companies.

 

CONTINGENT LIABILITIES

(Rs. in Millions)

CONTINGENT LIABILITIES (to the extent not provided for)

 

31.03.2012

31.03.2011

Bills Discounted

1114.000

1295.300

Claims against the Company not acknowledged as debts

85.500

82.900

Guarantees given by the Banks on behalf of the Company

590.000

238.400

Guarantees given by the Company to Banks on behalf of Subsidiaries/Joint Ventures

3558.300

3307.300

Disputed Demands in respect of

 

 

Excise/Custom Duty

308.300

160.400

Sales Tax

203.700

180.200

Income Tax

181.100

38.200

Service Tax

11.900

13.300

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012

 

PART I                                                                                                                                       Rs. in Millions

Sr.No

Particulars

Quarter Ended

30.06.2012

Unaudited

1

Income from operations

 

 

(a) Net Sales/Income from Operations (Net of excise duty)

8737.700

 

(b) Other Operating Income

(217.000)

 

Total Income from operations (net)

8520.7000

2

Expenses

 

 

(a) Cost of materials consumed

3707.900

 

(b) Purchase of stock-in-trade

340.700

 

(c) Changes in inventories of finished goods, work-in-progress and stock-in-trade

(548.500)

 

(d) Employee benefit expense

994.200

 

(e) Depreciation and amortisation expense

361.800

 

(f) Power & Fuel

986.100

 

(g) Stores Consumption

721.300

 

(h) Other Expenses

1021.000

 

(i) Foreign Exchange Loss /(Gain)

88.500

 

Total Expenses

7673.000

3

Profit from Operations before Other Income, Finance Cost & Exceptional Items (1-2)

 847.700

4

Other Income

243.000

5

Profit from ordinary activities before Finance Costs & Exceptional Items

 

 

(3+4)

1090.700

6

Finance Costs

629.200

7

Profit from ordinary activities after Finance Costs but before Exceptional

 

 

Items (5-6)

461.500

8

Add/(Less) :   Exceptional Item - Prior Period Item

0.000

9

Profit from Ordinary Activities before tax (7+8)

461.500

10

Tax Expense :

 

 

- Current Tax

92.300

 

- MAT Credit Entitlement

(85.400)

11

Net Profit from Ordinary Activities after tax (9-10)

454.600

12

Extraordinary Item (net of tax expense Rs. 538.600 Millions)

0.000

13

Net Profit for the period (11+12)

454.600

14

Paid-up Equity Share Capital (Face Value ? 10/- per share)

2580.400

15

Reserves excluding revaluation reserves as per Balance Sheet of previous

 

 

accounting year

 

16

(a) EPS before Extraordinary Item Rs. -(Not Annualised)

 

 

Basic

1.76

 

Diluted

1.76

 

(b) EPS after Extraordinary Item Rs. -(Not Annualised)

 

 

Basic

1.76

 

Diluted

1.76

 

PART II

 

Particulars

30.06.2012

Unaudited

A

PARTICULARS OF SHAREHOLDING

 

1

Public Shareholding

 

 

- No. of Shares

148296164

 

- Percentage of Shareholding

57.47%

2

Promoters & promoter group Shareholding

 

 

a) Pledged / Encumbered

 

 

- Number of Shares

455000

 

- Percentage of shares (as a % of the total shareholding of

 

 

promoter & promoter group)

0.41%

 

- Percentage of shares (as a % of the total share capital of the

 

 

Company )

0.18%

 

b) Non-encumbered

 

 

- Number of Shares

109291905

 

- Percentage of shares (as a % of the total shareholding of

 

 

promoter & promoter group)

99.59%

 

- Percentage of shares (as a % of the total share capital of the

 

 

Company )

42.35%

 

 

 

 

Particulars

 

 

 

Quarter Ended

30.06.2012

U

B

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the quarter

Nil

 

Received during the quarter

10

 

Disposed off during the quarter

10

 

Remaining unresolved at the end of the quarter

Nil

 

 

SEGMENTWISE REVENUE RESULTS AND CAPITAL EMPLOYED (STANDALONE)

 

 Sr.

No

 

Particulars

 

 

 

Quarter Ended

30.06.2012

U

1

Segment Revenue (Net Sales / Income from Operations)

 

 

(a) Textiles

8346.300

 

(b) Others

174.400

 

Total

8520.700

 

Add : Other Unallocable Income

0.000

 

Less : Inter Segment Sales

0.000

 

Net Sales / Income from Operations

8520.700

2

Segment Results (Profit before Interest & Tax)

 

 

(a) Textiles

1051.600

 

(b) Others

06.700

 

Total

1058.300

 

Less :

 

 

(a) Interest and Finance Charges (Net)

629.200

 

(b) Other Unallocable expenditure (net of un-allocable income)

(32.400)

 

Profit Before Extra Ordinary Items & Tax

461.500

3

Capital Employed (Segment Assets - Segment Liability)

 

 

(a) Textiles

27564.000

 

(b) Others

398.200

 

(c) Unallocable

9777.600

 

Total Capital Employed in Company

37739.800

 

PRESS RELEASE

 

Arvind revenue of Rs. 11570.000 Millions : Profit After Tax of Rs. 320.000 Millions

 

Arvind Limited, one of the largest integrated textile and branded apparel players recorded Revenue of Rs. 1157 crores and Net Profit After tax of Rs. 320.000 Millions for the quarter ended on 30th June 2012 as against Revenue of Rs. 12110.000 Millions and Net Profit After tax of Rs. 610.000 Millions for the previous quarter ended on 30th June 2011. At the operating level, consolidated EBIDTA for the Quarter stood at Rs. 1290.000 Millions. The financial performance for the Quarter is not comparable with that of previous Quarter ended 30th June 2011, on account of the Company’s operations for the getting affected on account of one-time event of strike of workmen in the month of June 2012.


Despite reduction in selling prices by 10%-14% in various textile products, caused by fall in cotton prices, revenue for Q1 was strong on account of robust growth in textile volumes and 9 % increase in revenue of brand & retail business

Commenting on the results as well as outlook of the Company, Mr. Jayesh Shah, Director & Chief Financial Officer said: “We had an abnormal situation due to the strike in 2 of our plants and hence it will be not appropriate to compare these results with that of previous year. Our textile business is witnessing strong growth and we are confident that in coming quarter there will be growth in volume as well as margins. ”



Arvind Ltd. a global leader in the development and production of textiles is India’s largest integrated textile company and operates across the entire value chain from design to fabric to brands. Arvind was the first company in India to bring international brands when they brought Arrow to India. Arvind now has licensing relationships with many international brands like Arrow, Izod, GANT, US Polo and recently has added Energie to its brand portfolio. JV’s with VF Corporation with brand portfolio of Lee and Wrangler and with the Murjani Group for Tommy Hilfiger to distribute and retail these brands in India. Arvind also owns and operates India’s largest 190 outlet strong value retail chain under the name ‘Megamart’.

 

FIXED ASSETS:

 

·         Land

·         Machinery

·         Building

·         Plant and Machinery

·         Furniture and Fixtures

·         Office Equiptments

·         Leasehold Improvements

·         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 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.53.07

UK Pound

1

Rs.84.95

Euro

1

Rs.68.24

 

 

INFORMATION DETAILS

 

Report Prepared by :

MRI

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

6

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

8

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--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

 

65

 

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.