MIRA INFORM REPORT

 

 

Report Date :

10.11.2012

 

IDENTIFICATION DETAILS

 

Name :

INDO RAMA SYNTHETICS (INDIA) LIMITED

 

 

Registered Office :

31-A, MIDC Industrial Area, Butibori – 441 122, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

28.04.1986

 

 

Com. Reg. No.:

11-166615

 

 

Capital Investment / Paid-up Capital :

Rs.1518.222 Millions

 

 

CIN No.:

[Company Identification No.]

L17124MH1986PLC166615

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BPLI00021A

 

 

PAN No.:

[Permanent Account No.]

AAALI1530L

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing of Cotton, Synthetic and Blended Yarn.

 

 

No. of Employees :

6000 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (49)

 

RATING

STATUS

PROPOSED CREDIT LINE

 

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

 

Maximum Credit Limit :

USD 25000000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having good track. There appears drastic fall in the profitability of the company.

 

However, general financial position of the company appears to be good. Trade relations are reported to be fair. Business is active. Payments are reported to regular and as per commitments.

 

The company can be considered for normal for business dealings at usual trade terms and conditions.   

 

 

NOTES:

 

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – 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

 

 

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/ Factory :

31-A, MIDC Industrial Area, Butibori – 441 122, Maharashtra, India

Tel. No.:

91-7104-663000-01

Fax No.:

91-7104-663200

E-Mail :

sanjayjain@indorama.ind.com

naveenc.jain@indorama-ind.com

jayant.sood@indorama-ind.com

Website :

http://www.indoramaindia.com

 

 

Corporate Office :

20th Floor, DLF Square, DLF Phase II, NH 8, Gurgaon - 122 003, Haryana, India

Tel. No.:

91-124-4997000

Fax No.:

91-124-4997070

E-Mail :

ranvirk.vij@indorama-ind.com
reshab.raizada@indorama-ind.com
rajiv.dayal@indorama-ind.com

corp@indorama-ind.com

 

 

Marketing Offices:

Located at

 

·         Ahmedabad

·         Bhilwara

·         Coimbatore

·         Erode

·         Guntur

·         Gurgaon

·         Hyderabad

·         Kolkata

·         Ludhiana

·         Madurai

·         Mumbai

·         Panipat

·         Silvassa

·         Surat

·         Tirupur

 

 

DIRECTORS

 

As on 31.03.2012

 

Name :

Mr. M. L. Lohia

Designation :

Chairman Emeritus

 

 

Name :

Mr. O. P. Lohia

Designation :

Chairman and Managing Director

 

 

Name :

Mr. O. P. Vaish

Designation :

Director

Date of Birth/Age :

62 Years

Qualification :

B.Com

Experience :

42 Years

 

 

Name :

Mr. A. K. Ladha

Designation :

Director

 

 

Name

Dr. Arvind Pandalai

Designation

Director (w.e.f. 20.07.2009)

 

 

Name

Mr. Vishal Lohia

Designation

Whole Time Director

Date of Birth/Age :

34 Years

Qualification :

Bachelors Degree in Financial and Economics, USA

Experience :

10 Years

Date of Appointment :

28.06.2002

 

 

KEY EXECUTIVES

 

Name :

Mr. Jayant Sood

Designation :

Company Secretary

 

 

CORPORATE EXECUTIVES

 

Name :

Mr. Deepak Singhal

Designation :

Chief Financial Officer

 

 

Name :

Mr. M G Birajdar

Designation :

Plant Head

 

 

Name :

Mr. Anant Kishore

Designation :

Chief Operating Officer (Polyester) 

Date of Birth/Age :

64 Years

Qualification :

B.Sc. Chem, Engineering, PGDB and IM

Experience :

43 Years

Date of Appointment :

07.07.1999

 

 

Name :

Mr. Hemant Sharma

Designation :

Business Head

Date of Birth/Age :

49 Years

Qualification :

B.Tech, MBA

Experience :

25 Years

 

 

Name :

Mr. Deepak Singhal

Designation :

Chief Financial Officer

Date of Birth/Age :

53 Years

Qualification :

B.Tech (Mechanical), post Graduate in Management (Finance) & CFA.

Experience :

27 Years

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.09.2012

 

Names of Category

No. of Shares

Percentage of Holding

 

 

 

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

53001626

37.45

Sub Total

53001626

37.45

(2) Foreign

 

 

Individuals (Non-Residents Individuals / Foreign Individuals)

961724

0.68

Bodies Corporate

43288057

30.59

Sub Total

44249781

31.27

Total shareholding of Promoter and Promoter Group (A)

97251407

68.71

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

4353894

3.08

Financial Institutions / Banks

2366795

1.67

Insurance Companies

4006850

2.83

Foreign Institutional Investors

12954870

9.15

Sub Total

23682409

16.73

(2) Non-Institutions

 

 

Bodies Corporate

9047118

6.39

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs.0.100 Million

7156157

5.06

Individual shareholders holding nominal share capital in excess of Rs.0.100 Million

4393791

3.10

Sub Total

20597066

14.55

Total Public shareholding (B)

44279475

31.29

Total (A)+(B)

141530882

100.00

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

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

10291360

0.00

Sub Total

10291360

0.00

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

151822242

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Cotton, Synthetic and Blended Yarn.

 

 

Products :

Products Description

Item Code No.

 

 

 

Polyester Staple Fibre

55032000

Polyester Filament Yarn Partially Oriented

54024200

Draw Texturised Yarn of Polyester

54023300

 

 

Exports :

 

Countries :

·         Algeria, Iran

·         Madagascar

·         Latin American Countries

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Licensed Capacity

Installed Capacity (Note i)

Actual Production

Polyester Staple Fibre

TPA

Note ii

263550

184081

Polyester Filament Yarn

TPA

Note ii

259000

169516

Polyester Texturised Yarn

TPA

Note ii

63200

45527

Polyester Clips

TPA

Note ii

87500

10745

Electrical Power

MWPH

NA

82.5

29.8

 

Notes:

i) The Company manufactures varying denier/ qualities of fibers/ yarn. The above capacity is calculated based on a mix of product range as certified by the management and relied on by the auditors being a technical matter.

ii) Delicensed vide notification no. 477 (E) dated 27 July 1991 and press note No 1 (1998 series) dated 8 June 1998.

iii) TPA-Tonnes per annum

iv) MWPH-Mega watt per hour

v) Pursuant to press note no. 2/2011 dated 8 February 2011, issued by Ministry of Corporate Affairs, disclosures required by part – II, paras 3(i) (a), 3(ii)(a) and 3(ii)(b) of Schedule VI to the Companies Act, 1956, have not been given.

 

GENERAL INFORMATION

 

No. of Employees :

6000 (Approximately)

 

 

Bankers :

·         Axis Bank Limited

·         Bank of India

·         HDFC Bank Limited

·         Oriental Bank of Commerce

·         Punjab National Bank

·         State Bank of India

·         State Bank of Travancore

·         Standard Chartered Bank

 

 

Institutions :

·         DEG – Deutsche Investitions und

·         Entwicklungsgesellschaft mbH

·         IKB Deutsche Industriebank AG

·         Life Insurance Corporation of India

 

 

Facilities :

Secured Loans

31.03.2012

31.03.2011

 

(Rs. In Millions)

Loans and advances from banks

 

 

Term loans

 

 

- Rupee loans

22.700

473.700

- Foreign currency loans

1485.40

1733.000

 

 

 

Other loans and advances

 

 

- Rupee loan

62.400

125.100

- Foreign currency loan

387.100

543.100

 

 

 

Loans payable on demand 

 

 

From bank

 

 

- Cash credit and working capital facilities

2572.000

905.700

Total

 

4529.600

3780.600

 

Notes:

 

NATURE OF SECURITY

TERMS OF REPAYMENT AND DEFAULTS

a) Rupee term loans from banks:

i) amounting to Rs.230.000 Millions (previous year Rs.405.000 Millions) is secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to banks and bodies corporate), including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of banks and financial institutions for securing rupee and foreign currency term loans.

Repayable in 6 equal half yearly installments commencing from 31 January 2010 along with interest at State Bank Advance Rate (“SBAR”). The default in repayment at the end of the current year amounts to Rs.95.000 Millions pertaining to the period of 61 days. The default at the end of the previous year amounted to Rs.Nil.

ii) amounting to Rs.Nil (previous year Rs.339.400 Millions) is secured by equitable mortgage on all the immovable properties (excluding land  in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company ( save and except book debts and assets exclusively hypothecated to banks and bodies corporate), including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of banks and financial institutions for securing rupee and foreign currency term loans. The loan has been repaid during the year and the Company is in the process of vacating charges.

The loan has been repaid during the year. The default in repayment at the end of the previous year amounted to Rs.339.400 Millions pertaining to the period from 6 months to 1 year 4 months.

iii) amounting to Rs.68.700 Millions (previous year Rs.680.600 Millions) is secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat) by way of deposit of title deeds and hypothecation of movable assets of the Company ( save and except book debts and assets exclusively hypothecated to banks and bodies corporate), including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of banks and financial institutions for securing rupee and foreign currency term loans.

As per rescheduled agreement, balance as at 18 February 2008 was repayable in 14 equal quarterly installments commencing from November 2008, along with interest at SBAR. The default in repayment at the end of the current year amounts to Rs.68.700 Millions pertaining to the period of 59 days. The default at the end of the previous year amounted to Rs.405.600 Millions pertaining to the period from 58 days to 1 year 5 months.

iv) Amounting to Rs.200.000 Millions (previous year Rs.359.800 Millions) is secured by first specific charge over the specific assets purchased under the loan agreement for thermal power project of the Company.

As per rescheduled agreement, balance as at 4 February 2009 was repayable in 15 equal quarterly installments commencing from 30 September 2009 along with interest at SBAR. The default in repayment at the end of the current year amounts to Rs.40.000 Millions pertaining to the period of one day. The default in repayment at the end of the previous year amounted to Rs.25.000 Millions pertaining to the period of one day.

v) Amounting to Rs.21.100 Millions (previous year Rs.Nil) is secured by first specific charge over the specific assets to be purchased under the loan agreement.

Repayable in 18 equal quarterly installments commencing from June 2012, along with interest at BR plus 1% plus 0.50%.

vi) Aggregating to Rs.5.000 Millions (previous year Rs.1.700 Millions) are secured by hypothecation of specific vehicles.

(a) Repayable in 36 equated monthly installments commencing from July 2010.

 

(b) Repayable in 36 equated monthly installments commencing from August 2011.

 

(c) Repayable in 36 equated monthly installments commencing from January 2012.

vii) Working capital term loans aggregating Rs.178.300 Millions (previous year Rs.376.200 Millions) are secured by way of first charge on the Company’s entire fixed assets, ranking pari-passu with other banks.

(a) Working capital term loan amounting to Rs.60.000 Millions (previous year Rs.100.000 Millions) is repayable in 15 equal quarterly installments commencing from January 2010 along with interest at SBAR.

 

(b) Working capital term loan amounting to Rs.118.300 Millions (previous year Rs.276.000 Millions) is repayable in 12 equal quarterly installments commencing from 21 January 2009 along with interest at Base Rate plus 3%.

b) Foreign currency term loans from banks:

i) amounting to Rs.1287.600 Millions  (previous year Rs.1461.000 Millions), are secured by first pari-passu specific charge on the equipment purchased under the loan agreement for the Company’s Polyester expansion Project and a first charge on the land situated at Mehsana, Gujarat.

Repayable in 20 equal half yearly installments commencing from April 2007 along with interest at six month euRIBOR plus 0.95% Further, two installments due on 15 April 2009 and 15 October 2009 have been rescheduled to be paid in 10 equal half yearly installments from 30 September 2009 along with interest at six month euRIBOR plus 0.95%.

ii) amounting to Rs.603.100 Millions (previous year Rs.643.200 Millions) is secured by first pari-passu specific charge on the equipment purchased under the loan agreement for the Company’s Polyester expansion Project and a first charge on the land situated at Mehsana, Gujarat.

Repayable in 20 equal half yearly installments commencing from April 2007 along with interest at six month LIBOR plus 0.95%. Further, two installments due on 15 April 2009 and 15 October 2009 have been rescheduled to be paid in 10 equal half yearly installments from 30 September 2009 along with interest at six month LIBOR plus 0.95%.

c) Rupee term loan from others:

amounting to Rs.124.900 Millions (previous year Rs.187.600 Millions) is secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat), by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to banks and bodies corporate), including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of banks and financial institutions for securing rupee and foreign currency term loans.

As per rescheduled agreement balance as on 1 July 2010 was repayable in 8 equal half yearly installments beginning 1 July 2010 along with interest at 8.25 %.

amounting to Rs.581.400 Millions (previous year Rs.724.600 Millions) is secured by equitable mortgage on all the immovable properties (excluding land in the state of Gujarat), by way of deposit of title deeds and hypothecation of movable assets of the Company (save and except book debts and assets exclusively hypothecated to banks and bodies corporate) including movable machinery, machinery spares, tools and accessories, both present and future, ranking pari-passu with the charges created/to be created in favour of banks and financial institution for securing rupee and foreign currency term loans.

As per rescheduled agreement, the balance as on 9 February 2010 is repayable in 9 equal half yearly installments commencing from 15 November 2010 along with interest at euRIBOR plus 2.35% p.a.

Cash credit and other working capital facilities from banks are secured by way of hypothecation of stocks of raw materials, work-in-progress, finished goods, stores and spares, packing material, goods at port/in transit/under shipment, outstanding money, book debts, receivables and other current assets of the Company, both present and future. These are further secured by a second charge on all the immovable properties of the Company, both present and future.

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

B S.R. and Associates

Chartered Accountants

Address :

Gurgaon, Haryana, India

 

 

Enterprises over which key management personnel or

their relatives have significant influence :

·         Indo Rama Retail Holdings Private Limited [IRRHPL]

·         Indo Rama Petrochem Limited (IRPL), Thailand

·         T P T Petrochemicals PCL (TPT Petro), Thailand

·         Lohia Industries (Private) Limited (LIPL)

 

 

Enterprises having significant influence

·         Brookgrange Investments Limited

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

185000000

Equity Shares 

Rs.10/- each

Rs.1850.000 Millions

 

Issued and Subscribed  and Paid-up Capital  :

No. of Shares

Type

Value

Amount

 

 

 

 

151822242

Equity Shares 

Rs.10/- each

Rs.1518.222 Millions

 

Notes:

 

1. During the current year and in the previous year, there have been no movements in the number of equity shares outstanding.

 

2. The Company has only one class of equity shares, having a par value of ` 10 per share. each shareholder is eligible to one vote per share held, except for shares held against Global Depository Receipts (GDR). The dividend proposed, if any, by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

3. Shares in the Company held by each shareholder holding more than 5% shares [also refer to footnote 4 (b)] are as under:-

 

Particulars

As at 31.03.2012

 

No. of Shares

% of

shares held

Brookgrange Investments Limited

43,288,057

28.51

Mr. O. P. Lohia (Chairman and Managing

Director)

35,164,492

23.16

Mavi Investments Limited

12,652,175

8.33

Mrs. Urmila Lohia

15,855,314

10.44

 

4. Above equity shares of Rs.10 each include:

 

a) 20,000,000 (previous year 20,000,000) equity shares issued during the year 2007-08 as fully paid-up shares to shareholders of erstwhile Indo Rama Petrochemicals Limited, pursuant to a scheme of amalgamation, for consideration other than cash.

 

b) 10,291,360 equity shares (representing 6.78% of total number of shares) are outstanding against 1,286,420 Global Depository Receipts (GDR), each GDR comprising 8 underlying fully paid up equity shares of Rs.10 each [previous year 10,531,360 equity shares (representing 6.94% of total number of shares) against 1,316,420 GDRs].

 

 

 

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

1518.200

1518.200

1518.222

2] Share Warrants

203.000

203.000

0.000

3] Reserves & Surplus

4475.100

4476.700

3568.771

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

6196.300

6197.900

5086.993

LOAN FUNDS

 

 

 

1] Secured Loans

4529.600

3780.600

8660.227

2] Unsecured Loans

0.000

0.000

50.383

TOTAL BORROWING

4529.600

3780.600

8710.610

DEFERRED TAX LIABILITIES

2133.700

2072.200

1394.699

 

 

 

 

TOTAL

12859.600

12050.700

15192.302

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

12744.800

13223.400

14628.830

Capital work-in-progress including capital advances

265.700

84.400

67.453

 

 

 

 

INVESTMENT

148.300

176.400

172.355

Foreign currency monetary item translations

0.000

0.000

7.356

DEFERREX TAX ASSETS

0.000

0.000

0.000

Other non-current assets 

100.400

81.200

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
3636.000
6820.100
2892.069

 

Sundry Debtors
960.500
1016.800
851.608

 

Cash & Bank Balances
309.700
207.300
194.345

 

Other Current Assets
1326.000
936.000
0.000

 

Loans & Advances
1553.600
1421.400
2421.165

Total Current Assets
7785.800
10401.600
6359.187

Less : CURRENT LIABILITIES & PROVISIONS
 
 
 

 

Sundry Creditors

5406.500
7810.000
3514.101

 

Current Liabilities
2394.600
3427.100
2376.395

 

Provisions
384.300
679.200
152.383

Total Current Liabilities
8185.400
11916.300
6042.879

Net Current Assets
(399.600)
(1514.700)
316.308

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

12859.600

12050.700

15192.302

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

29688.000

28177.500

25260.484

 

 

Other Income

2072.600

227.400

305.265

 

 

TOTAL                                     (A)

31760.600

28404.900

25565.749

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

22789.800

21548.700

19293.545

 

 

Purchases of stock-in-trade

0.000

43.100

224.231

 

 

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

1594.000

(2114.300)

4135.865

 

 

employee benefits expense

736.000

635.700

(482.600)

 

 

Other expenses

3450.200

4095.500

56.646

 

 

Exceptional items

652.500

(82.800)

 

 

 

TOTAL                                     (B)

29222.500

24125.900

23227.687

 

 

 

 

 

Less

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

2538.100

4279.000

2338.062

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

612.200

696.600

770.395

 

 

 

 

 

 

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

1925.900

3582.400

1567.667

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1543.600

1499.000

1491.469

 

 

 

 

 

 

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

382.300

2083.400

76.198

 

 

 

 

 

Less

TAX                                                                  (H)

62.700

689.300

4.873

 

 

 

 

 

 

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

319.600

1394.100

71.325

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1703.700

863.600

780.214

 

 

 

 

 

 

TRANSFER FROM DEBENTURE REDEMPTION RESERVE

0.000

0.000

12.029

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Interim dividend

0.000

151.800

0.000

 

 

Proposed dividend

151.800

151.800

0.000

 

 

Tax on dividend

24.600

50.400

0.000

 

 

Transferred to general reserve

0.000

200.000

0.000

 

BALANCE CARRIED TO THE B/S

1846.900

1703.700

863.568

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

F.O.B. Value of Exports

8449.500

7256.600

4936.024

 

 

Other Earnings

196.720

154.700

30.127

 

TOTAL EARNINGS

8646.220

7411.300

4966.151

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

14948.700

17441.300

9606.467

 

 

Packing Material

10.000

8.800

19.842

 

 

Stores & Spares

16.600

41.600

108.445

 

 

Capital Goods

444.400

43.000

12.864

 

TOTAL IMPORTS

15419.700

17534.700

9747.618

 

 

 

 

 

 

Earnings/ (Loss) Per Share (Rs.)

2.11

9.18

0.47

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

 

30.06.2011

30.09.2011

Type

 

 

1st Quarter

2nd Quarter

Net Sales

 

 

7588.400

7410.800

Total Expenditure

 

 

7724.100

6998.200

PBIDT (Excl OI)

 

 

(135.700)

412.600

Other Income

 

 

1313.600

337.500

Operating Profit

 

 

1177.900

750.100

Interest

 

 

117.700

95.500

Exceptional Items

 

 

(1050.500)

812.200

PBDT

 

 

9.700

1466.800

Depreciation

 

 

(391.500

398.700

Profit Before Tax

 

 

381.800)

1068.100

Tax

 

 

(120.800)

32.200

Provisions and contingencies

 

 

0.000

0.000

Profit After Tax

 

 

(261.000)

1035.900

Extraordinary Items

 

 

0.000

0.000

Prior Period Expenses

 

 

0.000

0.000

Other Adjustments

 

 

0.000

0.000

Net Profit

 

 

(261.000)

1035.900

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)
1.01
4.91
0.29

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)
1.29
7.39
0.30

 

 
 
 
 

Return on Total Assets

(PBT/Total Assets}

(%)
1.86
8.82
0.36

 

 
 
 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.06
0.34
0.01

 

 
 
 
 

Debt Equity Ratio

(Total Liability/Networth)

 
2.05
2.53                 
2.90

 

 
 
 
 

Current Ratio

(Current Asset/Current Liability)

 
0.95
0.87
1.05

 

 

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

Yes

30]

Major Shareholders, if available

--

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

No

 

 

OPERATIONAL AND FINANCIAL REVIEW

 

During the year, the Company recorded gross sales of Rs.31810.000 Million as against Rs.30001.000 Million in previous year, representing an increase of 5.27% which is considered satisfactory considering the present market scenario. EBIDTA is Rs.3125.000 Million as against Rs.4279.000 Million last year. Profit before Tax stood at Rs.382.00 Million against Rs.2083.000 Million for the previous year.

 

The extremely challenging and prevailing recessionary economic conditions leading to slowdown in demand and inflation pushed up the scale of input costs resulting in an adverse environment for overall performance in 2011-12. Directors are pleased to inform that despite difficult times, the Company, based on its core strengths and sincere efforts of all the Indo Rama family members, has resulted in a sustainable performance.

 

The demand for polyester remained positive during 2011-12; at the backdrop of lower economic growth, input price volatility and affected margins. The outlook for polyester continues to be optimistic owing to proposed capacity additions between 2013 and 2015.

Moderating demand for home textiles, furnishing fabrics, technical textile, garments will enhance demand from polyester.

 

In 2011-12, we completed the heat treatment media (HTM) project of replacing Furnace Oil (FO) to coal for heat treatment; resulting in saving on energy cost, continued expansion in high capacity Draw Texturised Yarn (DTY) machines will convert additional pOY into value added DTY products and introduction of new variety of pOY, FDY, DTY and pSF products will enhance our offerings.

 

Moving forward, in 2012-13, we will commission a 11 MW coal based captive power plant, install a pSF recycle plant, and enhance pSF and DTY capacities. Moreover, as a consistent drive we will continue our endeavour to enhance operational efficiency through process innovations and rationalise costs to increase profitability.

 

GLOBAL ECONOMY

 

The year 2011 witnessed near-stagnant growth in developed and emerging economies. The growth rate of advanced economies is expected to be 1.9% and that of emerging and developing economies around 6.1% in 2011.

 

The US is witnessing the first hint of growth after prolonged stagnation and euro-zone economies expect a near-term revival. The inflation worries are less acute and central banks are safeguarding their economies against a momentum slowdown.

 

INDIAN ECONOMY

 

At the beginning of 2011, the Indian economy commenced its journey with considerable confidence and a stable currency. However, as the year progressed, an unfortunate combination of high inflation fuelled by spiralling commodity-fuel prices, declining industrial output, high interest rates, weakening rupee and policy gridlock choked the growth momentum. This has lead to decrease in growth rate from estimated 6.9% in 2011-12 against 8.4% in 2010-11.

 

However, the long-term prospects of the country continue to be optimistic. The fundamentals are strong in the medium-term, driven by positive growth prospect with increasing consumer spending.

 

GLOBAL TRADE SCENARIO

 

The global trade grew by an estimated 5.8% in 2011 (13.8% in 2010). The growth in 2012 is likely to slow down to 3.7%. The world merchandise export jumped 19% to US$ 18.2 trillion in 2011.

The trade primarily suffered from the third and fourth quarters of 2011, with lower trade in euro zone and growth faltering in developing economies like India, China and Brazil. In 2011, India emerged as fastest growing export economy at 16.0%, followed by China and the US.

 

TEXTILE INDUSTRY SCENARIO

 

GLOBAL TEXTILE

 

The global textile and clothing trade is estimated to grow at 8-8.5% in 2011 from US$ 602 billion to US$ 652 billion. China's share continues to remain unchallenged at US$ 249 billion, accounting for 38% (2010: 34%) of the global textile and clothing trade. In 2011, China registered 21% growth over 2010, despite increased manufacturing cost. In 2011, India is expected to grow 16% to reach US$ 31 billion in the global textile and clothing exports.

 

The   other   Asian   economies   (Vietnam, Thailand, Bangladesh and Indonesia) witnessed positive growth. The year 2012 will remain a year of significant challenge for major exporting countries in textile and clothing trade, as they depend heavily on traditional western markets. The lower GDP growth rates, estimated by World Bank and IMF, economic uncertainties triggered by recession and rising resource cost do not give an encouraging picture.

The world yarn and fabric output in 2011 continued to swing from quarter to quarter, resulting in yarn and fabric inventories. The yarn and fabric production moderated in Q3 and is likely to be volatile in Q4 of 2011, due to trade uncertainties.

 

INDIAN TEXTILE INDUSTRY

 

India's textile sector contributes 4% to the country's gross domestic product (GDP), accounting for 14% of industrial production and 17% to country's export. The industry employs around 35 million people, and is the second largest provider of employment after the agricultural sector.

 

During 2011-12, the industry witnessed a negative growth owing to high volatility in raw material prices, combined with unfavourable exchange rate fluctuations. The industry is valued around US$ 70 billion with approximated exports comprising US$ 31 billion.

 

The country has the potential to increase its textile and apparel share in the world trade from the current level of 4.5% to 8%, and reach US$ 80 billion by 2020.

 

 

TRENDS IN THE DOMESTIC TEXTILE SECTOR

 

Increasing investment in TUFS: The Ministry of Textiles is encouraging investments through increasing focus on schemes, such as TUFS and cluster development activities. Investments under TUFS increased to US$ 43 billion in 2010, with spinning accounting for the largest share of 33%.

 

Multi-Fibre Arrangement (MFA): With the expiry of MFA in January 2005, India's cotton prices are now fully integrated with international rates.

 

Public-Private Partnership (PPP): The Ministry of Textiles commenced an initiative to establish institutes under the public-private partnership (PPP) model to encourage private sector participation to develop the industry.

Technical textiles: Technical textiles, growing at around twice the rate of textiles for clothing applications, now account for more than half of total textile production.

 

 

FIBRE INDUSTRY SCENARIO

 

GLOBAL FIBRE INDUSTRY

 

In 2011, the global fibre production is estimated to grow by 7.9% to around 77 million tonne. The natural fibre accounted for 28 million tonne, while man-made fibre accounted for 48.7 million tonne. However, the global consumption grew by 1% to 81 million tonne as per Lenzing reports.

 

The natural fibre accounted for 30 million tonne consumption with cotton leading the way with 23.13 million tonne and man-made fibres accounted for 50 million tonne. The natural fibre consumption is anticipated to decline by 1.9%, synthetic fibre consumption will grow by 2.8% and cellulosic fibre consumption is expected to increase by 4.2%.

 

The combined cotton and polyester fibre production accounts for 86% of the global fibre production. The global per capita consumption stood at around 12 kg of all textile fibres.

 

COTTON

 

Cotton fibre production grew by an estimated 7.4% from 25.10 million tonne in 2010 to 26.96 million tonne to 2011, whereas consumption declined by 5.6% from 24.49 million tonne in 2010 to 23.13 million tonne in 2011. The global closing stocks grew to an all-time high of 13.13 million tonne as per ICAC.

 

POLYESTER

 

The polyester fibre production share remained more than 50% in global fibre in 2011. The production increased by 8.2% to 38.9 million tonne. The staple fibre production grew 7.8% to 14.38 million tonne and Polyester Filament Yarn (PFY) surged 11.6% to 24.56 million tonne. The global polyester production of 38.9 million tonne accounts for 78% capacity utilisation.

 

GLOBAL FIBRE PRODUCTION SCENARIO

 

In 2011, Nylon fibre production increased 0.2% to 3.7 million tonne, acrylic fibre grew 2.6% to 2.04 million tonne and cellulosic fibre grew 10.5% to 3.52.

 

INDIAN FIBRE INDUSTRY

 

India's fibre production increased 3.1% to estimated 9.7 million tonne in 2011 from 9.4 million tonne in 2010. Cotton fibre production grew marginally 2.4% from 5.76 million tonne in 2010 to 5.86 million tonne in 2011. The production accounts for 60% of the total fibre production. Polyester fibre production grew 3.1% from 3.18 million tonne in 2010 to 3.28 million tonne in 2011, and polyester fibre accounts for 34% of the total fibre production.

 

INDIAN FIBRE PRODUCTION SCENARIO

 

India's estimated fibre consumption declined by 2.4% on account of sluggish economic conditions in the third and fourth quarter of 2011-12 at 7.50 million tonne in 2011-12, compared to 7.68 million tonne in 2010-11. The cotton fibre consumption declined by 5.7%, whereas polyester fibre consumption estimated to rise marginally by 2.6% from 2.71 million tonne in 2010-11 to 2.78 million tonne in 2011-12.

 

The decline in cotton consumption has multiple reasons: higher prices; increasing preference for polyester fibre (substitute fibre); challenging economic scenario; liquidity crunch; and finally reduced downstream offtake.

 

The current per capita consumption of all fibre in India is 6.3 kg. Polyester fibre per capita consumption stood at 2.32 kg, against 5.4 kg of global polyester fibre per capita consumption.

 

In 2011, polyester fibre capacity utilisation stood at 76% at total production of 3.28 million tonne. India's capacity and production both accounts for an estimated 8.4% of the global capacity and production.

 

However, India's yarn and fabric production declined and exhibit the same trend as in fibre. The fabric production is estimated to decline by 2.9% and the yarn production is likely to decline by 7.9%.

 

Cotton fabric production is estimated to decline by 4.3% and cotton yarn by 7.9%. However, blended and 100% non-cotton fabric has witnessed positive growth in 2011-12. In yarn segment blended yarn production marginally declined 1.8% but 100% non cotton yarns saw 7% growth on account of growth in 100% viscose yarn segment.

 

INDIAN POLYESTER INDUSTRY

 

Polyester fibre demand and production managed to stay positive in 2011-12. The second half of the year saw demand tapering off due to sluggish economic growth, poor buying sentiments, price volatility and margin pressures.

 

Polyester fibre outlook remains positive with more capacity additions anticipated between 2013 and 2015. The prices are expected to stabilise with reduced competition from fibres like cotton and viscose, and an improving raw material scenario. The growth in home textiles, furnishing fabrics, technical textile segments will help boost polyester fibre consumption. Consumers will finally decide the growth momentum, and their buying patterns will be a key factor for growth in retail and institutional segments.

 

 

POLYESTER FILAMENT YARN (PFY)

 

·         PFY remains the preferred capacity addition segment. The capacity grew around 9% t3.18 million tonne in 2011-12 from 2.91 million tonne in 2010-11

·         PFY estimated production grew 10.7% to 2.38 million tonne in 2011-12 from 2.15 million tonne in 2010-11

·         In 2011-12, estimated domestic demand stood at 2.08 million tonne against 1.91 million tonne in 2010-11, growing 8.9%

·         Exports registered an estimated impressive growth of 24% to 0.25 million tonne in 2011-12 from 0.20 million tonne in 2010-11

·         Capacity utilisation on total demand stood at estimated 73% in 2011-12

·         PFY is estimated to grow at 8-10% between 2013 and 2015; due to higher growth in home textiles, women's wear and automotive segment

 

POLYESTER STAPLE FIBRE (PSF)

 

·         PSF estimated demand declined to 0.69 million tonnes in 2011-12, owing to suppressed demand of spun yarn-based fabrics, poor buying sentiments and sluggish yarn-based exports.

·         Production declined 13.6% to estimated 0.89 million tonne in 2011-12 from 1.03 million tonne in 2010­11; No capacity addition came up in 2011-12

·         Exports estimated at 0.20 million tonne in 2011­12 up by 8.1%, even after price volatility, and lower offtake from Europe

·         Capacity utilisation on total demand stood at 79% in 2011-12

·         PSF is estimated to grow at 6-8% between 2013 and 2015, following anticipated higher retail growth, home textiles, non-woven segment and industrial textiles

 

RAW MATERIAL PROCUREMENT

 

The main raw materials of polyester are PTA (Purified Terephatalic Acid) and MEG (Mono Ethylene Glycol). These petrochemical derivates are highly prone to fluctuate along with crude oil prices.

 

The lowered prices of PTA and MEG can be accounted to negative cycle initiated by much lowered demand for finished goods resulting in unprecedented stock of finished goods with the polyester manufacturers, forcing them to reduce their productions levels and, thus, demand fall of PTA and MEG in last two quarters of 2010-11.

 

The prices of PX, PTA and MEG went down drastically. In first quarter, PX Price went from US$ 1722 to US$ 1450. PTA nosedived from US$ 1515 to US$ 1195 and MEG also witnessed a price drop from US$ 1250 to US$ 1100. Despite of capacity additions in fibre and filament and no new PTA and MEG capacities, prices did not show any improvement. The prices of PTA and MEG were at US$ 1170 and US$ 1000 due to low demand.

 

Looking ahead, availability of PTA is expected to ease due to new plants of PTA starting this year, though new polyester capacities have been added. MEG is expected to remain tight as no new capacities are coming up. At the same time, demand for MEG will increase due to higher polyester capacities. The polyester demand is expected to increase from 2nd quarter of 2012.

 

PURIFIED TEREPHTHALIC ACID (PTA)

 

It was expected that PTA price will continue to remain high but the reverse happened. Prices started falling in April 2011 only and could not get corrected. Although in 2nd quarter the price went up but could not maintain that level due to low demand.

 

Due to low demand, the polyester capacities in China were operating on 70% to 80%. The PX prices reached to all time high November - December 2011, which forced PTA producers to cut down their production as they couldn't recover their conversion cost.

 

In India, imports of PTA had come down from 70000 MT to 25000 MT per month by March 2012, due to lower demand of finished goods. Despite frequent shutdown of domestic PTA producers, availability of PTA was there due to lower demand of finished goods. Furthermore, cotton crop also has been good and prices of cotton were also 40% lower than last year which also affected polyester industry.

 

PTA availability likely to remain comfortable as new capacities in China, Portugal and Poland has come up.

 

MONOETHYLENE GLYCOL (MEG)

 

MEG did not fluctuate much in the beginning of the year as PX and PTA did, but it came down from US$ 1245 to US$ 1110 in May 2011 owing to lower demand. In anticipation of MEG shortage since no new plant was coming until 2013, MEG stocks accumulating and holding were observed in 2nd quarter in China. This resulted in higher prices in the 2nd quarter.

 

But, due to lower than expected demand in polyester, the prices of MEG started falling down and ended up at US$ 990 level by March 2012. In local market also, MEG was abundantly available and most of the tankages at port were full till 3rd quarter as the polyester manufactures had to pick up their quantities as per the agreement but due to lower production higher inventories got accumulated. Even MEG manufacturers were having extra stock till 3rd quarter. The prices of MEG continued falling from October 2011 onwards and were around US$ 990 by the year end.

 

MEG in general is likely to remain tight as no new MEG capacities are coming up in the world in the year 2012-13 and higher capacity utilisation is likely to result in upward trend of prices.

 

POWER BUSINESS OVERVIEW

 

Indo Rama possesses captive power source of 82.5 MW, consisting of 52.5 MW (3x13.5 MW + 3x4 MW) of diesel generating (DG) sets and 30 MW of co-gen captive facility based on coal.

 

CONTINGENT LIABILITIES NOT PROVIDED FOR:

 

Particulars

31.03.2012

(Rs. in millions)

31.03.2011

(Rs. in millions)

Excise / customs / service tax matters in dispute/ under appeal

1072.700

668.400

Income tax matters in dispute/ under appeal

21.500

64.700

Sales tax matters in dispute/ under appeal

56.80

226.800

Claims by ex-employees, vendors, customers and civil cases

5.300

17.200

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER / HALF YEAR ENDED 30 SEPTEMBER 2012

(Rs. In Millions)

 

Sr. No.

Particulars

Quarter Ended

 

 

30.09.2012

30.06.2012

 

 

Un-audited

1

Income from operations

 

 

 

(a) Net sales/income from operations (Net of excise duty)

7345.000

7541.300

 

(b) Other operating income

65.800

47.100

 

Total income from operations (net)

7410.800

7588.400

2

Expenses

 

 

 

(a) Cost of materials consumed

6015.300

6089.400

 

(b) Purchase of stock-in-trade

4.600

0.000

 

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

(215.000)

378.400

 

(d) Employee benefits expense

207.300

208.900

 

(e) Other expenses

986.000

1047.400

 

Total expenses before depreciation and amortisation, finance costs, exceptional item and tax

6998.200

7724.100

3

Profit / (Loss) from operations before depreciation and amortisation, other income, finance costs, exceptional item and tax (1-2)

412.60

(135.700)

4

Depreciation and amortisation expense

398.700

391.500

5

 Total expenses after depreciation and amortisation, before finance costs, exceptional item and tax (2+4)

7396.900

8115.600

6

 Profit / (Loss) from operations before other income, finance costs, exceptional item and tax (1-5)

13.900

(527.200)

7

Other income

337.500

1313.600

8

Profit from ordinary activities before finance costs, exceptional item and tax (6+7)

351.400

786.400

9

Finance costs (refer to note 4)

95.500

117.700

10

 Profit from ordinary activities before exceptional item and tax (8-9)

255.900

668.700

11

Exceptional item-foreign exchange fluctuation gain / (loss) (refer to note 2)

812.200

(1050.500)

12

Profit / (Loss) from ordinary activities before tax (10+11)

1068.100

(381.800)

13

Tax expense / (credit)

32.200

(120.800)

14

Net Profit / (Loss) for the period (12-13)

1035.900

(261.000)

15

 Paid-up equity share capital (face value of tl0 per share)

1518.200

1518.200

16

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

 

 

17

 Basic and diluted EPS for the period (not annualised) (Rs.per share of Rs.10 each)

6.82

(1.72)

A

PARTICULARS OF SHAREHOLDING

 

 

 

1  Total public shareholding :

 

 

 

(including Global Depository Receipts)

 

 

 

- Number of shares (Nos.)

54,570,835

54,497,751

 

- Percentage of shareholding (%)

35.94

35.90

 

2 Promoters and promoter group shareholding :

 

 

 

a) Pledged/encumbered

 

 

 

- Number of shares

15,000,000

12,819,000

 

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

15.42

13.17

 

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

9.88

8.44

 

b) Non-encumbered

 

 

 

- Number of shares

82,251,407

84,505,491

 

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

84.58

86.83

 

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

54.18

55.66

 

 

Particulars

Quarter Ended

 

 

30.09.2012

B

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the quarter

-

 

Received during the quarter

16

 

Disposed off during the quarter

16

 

Remaining unresolved at the end of the quarter

-

 

STATEMENT OF ASSETS AND LIABILITIES AS AT 30 SEPTEMBER 2012

(Rs. In Millions)

EQUITY AND LIABILITIES

Quarter Ended

 

30.09.2012

30.06.2012

 

Un-audited

Shareholders' funds

 

 

Share capital

1518.200

1518.200

Reserves and surplus

5174.200

4475.100

Money received against share warrants

203.000

203.000

Sub-total - Shareholders' funds

6895.400

6196.300

Non-current liabilities

 

 

Long-term borrowings

1754.300

1957.600

Deferred tax liabilities (Net)

2042.000

2133.700

Other long-term liabilities

08.500

07.800

Long-term provisions

143.000

147.500

Sub-total - Non-current liabilities

3947.800

4246.600

Current liabilities

 

 

Short-term borrowings

3196.300

2572.000

Trade payables

5170.100

5688.200

Other current liabilities

1703.100

2105.100

Short-term provisions

202.200

236.800

Sub-total - Current liabilities

10271.700

10602.100

TOTAL - EQUITY AND LIABILITIES

21114.900

21045.000

ASSETS

 

 

Non-current assets

 

 

Fixed assets

12493.300

13010.500

Non-current investments

1.000

-

Long-term loans and advances

1137.100

406.700

Other non-current assets

100.400

100.400

Sub-total - Non-current assets

13731.800

13517.600

Current assets

 

 

Current investments

155.700

148.300

Inventories

3266.900

3636.000

Trade receivables

842.200

960.500

Cash and bank balances

542.100

309.700

Short-term loans and advances

899.900

1146.900

Other current assets

1676.300

1326.000

Sub-total - Current assets

7383.100

7527.400

TOTAL – ASSETS

21114.900

21045.000

 

Notes:

 

1.       The Audit Committee and the Board of Directors at their meetings held on 17 October 2012 approved the above results.

 

2.       Due to significant volatility in the foreign currency vis-a-vis local currency, the Company has considered the foreign exchange fluctuation as an exceptional item.

 

3.       On 9 November 2010, the Company had allotted 20,000,000 Fully Convertible Preferential warrants (FCPs) at Rs.40.60 per warrant (aggregating Rs.812.000 Millions) as per Securities and Exchange Board of India (SEBI) and other guidelines, as applicable. As per the terms of the warrants, Rs.10.15 per warrant (aggregating Rs.203.000 Millions) have been received and balance amount of Rs.30.45 per warrant (aggregating Rs.609.000 Millions) was payable within 18 months of allotment of the warrants. The warrants were convertible into equity shares within a period of 18 months from the date of allotment of warrants at the option of the warrant holders. Upon conversion, one warrant will be converted into one fully paid equity share of Rs.10 each and amount of Rs.30.60 will be adjusted towards share premium account. During the previous quarter, the Company received request from warrant holders for extending the period upto May 2013 for payment of balance amount of Rs.609.000 Millions. Accordingly, the Company has requested for extension of time from Ministry of Corporate Affairs (MCA) and Securities and Exchange Board of India (SEBI). While the approval from MCA has been received, though awaited from the SEBI. The above has no impact on the results for the current period.

 

4.       Hitherto, the exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost, were treated as borrowing cost in terms of the AS-16, "Borrowing Costs". During the period, pursuant to a clarification dated 9 August 2012 from the MCA, the Company has changed the accounting policy, w.e.f from 1 April 2011 to treat the same as "foreign exchange fluctuation" to be accounted as per AS-11, "The Effects of Changes in Foreign Exchange Rates" instead of the "borrowing costs". This change has resulted into increase in other income of Rs.33.600 Millions (including Rs.27.500 Millions for the year ended 31 March 2012) and the depreciation for the quarter ended 30 September 2012 being higher by Rs.2.400 Millions (including Rs.1.500 Millions for the year ended 31 March 2012).

 

5.       The Company's business activity falls within a single primary business segment viz. 'Polyester'.

 

6.       Previous period figures have been regrouped / recast, wherever necessary, to make them comparable.

 

 

FIXED ASSETS:

 

·         Land (Freehold and Leasehold)

·         Roads and Buildings

·         Plant and Machinery

·         Furniture and Office Equipments

·         Vehicles

·         Software

 

 

WEBSITE DETAILS:

 

BUSINESS DESCRIPTION

 

Subject is an India-based polyester manufacturing company. The Company is engaged in the manufacture of polyester staple fiber (PSF), partially oriented yarn (POY), draw texturised yarn (DTY), fully drawn yarn (FDY) and polyester chips. The Company operates in two segments: division and power division. The Company's manufacturing facilities are located at Butibori, Nagpur. During the fiscal year ended March 31, 2011 (fiscal 2011), the Company produced 184,081 tons per annum of PSF; 169,516 tons per annum of PFY; 45,527 tons per annum of DTY; 10,745 tons per annum of polyester chips, and 29.8 mega watt per hour of electrical power. During fiscal 2011, Indo Rama had an installed capacity to produce 263,550 tons per annum of PSFY; 259,000 tons per annum of PFY; 63,200 tons per annum of DTY; 87,500 tons per annum of polyester chips, and 82.5 mega watt per hour of electrical power. For the nine months ended 31 December 2010, subject’s revenue increased 3% to RS19.69B. Net income totaled RS387.3M, up from RS21M. Revenues reflect an increase in income from Polyester segment. Net income also reflects lower employees costs, a decrease in other expenditure, a decrease in depreciation and higher operating margins. Subject is an India based company.

 

 

BOARD OF DIRECTORS

 

A. K. Ladha

Non-Executive Independent Director

 

Mr. A. K. Ladha serves as Non-Executive Independent Director of subject. He holds B.Com. His other Directorship include: Birlasoft (U.K.) Limited, Rajasthan Inds. Limited, Birlasoft (India) Limited, Birla soft Enterprises Limited, WA Finance Limited, Gwalior Finance Corporation, Hindustan Discounting Company Limited, Amer Investment (Delhi) Limited

 

 

Om Prakash Vaish

Non-Executive Independent Director

 

Mr. Om Prakash Vaish, Senior Advocate, B.Com. (Hons) M.A. Eco., LLM, serves as Non-Executive Independent Director of subject. He is the founder of Law Firm “Vaish Associates” at New Delhi. He is the past President of PHDCCI and currently member of the Management Committee of FICCI and ASSOCAM. He is Government nominee on the Council of the Institute of Chartered Accountants of India. He has been associated with various Committees and Advisory Boards of Institutions like American India Foundation and Western International University, USA. Mr. Vaish was honoured by the Soka University, Japan describing him as the ‘Lawyer of Conscience’. His other directorships include: Godfrey Philips India Limited, The India Thermit Corporation Limited, PNB Finance and Industries Limited, International Travel House Limited Other organizations: Federation of Indian Chamber of Commerce and Industry, International Chamber of Commerce (ICC-India), International Management Institute.

 

 

PRESS RELEASES:  

 

INDO RAMA SYNTHETICS ANNOUNCES Q2 AND H1 FY 2012-13 RESULTS

Q2 NET PROFIT AT RS.1035.900 MILLIONS VS. LOSS OF RS.228.400 MILLIONS NET SALES AT RS.7345.000 MILLIONS VS. RS.7717.100 MILLIONS

GURGAON, OCTOBER 17, 2012

 

Indo Rama Synthetics (India) Limited, India’s largest dedicated polyester manufacturer, today announced its un‐audited results for Q2 and H1 ended September 30, 2012.

 

Net sales for Q2 2012‐13 stood at Rs 7345.000 Millions as against Rs 7717.100 Millions in Q2 of previous year. The sales have been marginally lower than same quarter previous year due to weak export demand on account of disturbances in European and Middle‐east markets. The company recorded Profit after Tax at Rs 1035.900 Millions in the quarter as compared to Loss after Tax of Rs 228.400 Millions in Q2 of the previous year. The company managed to maintain the margins at the levels seen in Q2 of previous year. The repayment of loans brought down the finance costs substantially, as compared to previous quarters. The profitability in the quarter was boosted, primarily by strengthening of rupee and reversal of mark to market losses incurred in the previous quarter as the rupee moved up from Rs 55.62 / $ to Rs 52.86 / $. Overall, in H1 2012‐13, the company delivered a net sales performance of Rs 14886.300 Millions, a modest increase of 6.9% over Rs .13923.600 Millions in H1 of previous year, despite a lack luster market. The Profit after Tax jumped up to Rs.774.900 Millions which is an increase of 171% as compared to Rs 286.000 Millions in H1 of previous year.

 

 

With the Polyester prices bottoming out in the quarter and the upward movement in cotton prices, the company expects to see improvement in demand in Q3 FY2012‐13. The current stability and strengthening of the rupee, if sustained, will have a positive impact on the margins. The company successfully completed some key margin improvement projects during the quarter. The project to add 11MW of Power to utilize the spare boiler capacity for captive consumption has been successfully commissioned. The company has also successfully expanded its production capacity for value added product Draw Texturized Yarn (DTY) from the earlier 64,800 Tonnes to 98,145 Tonnes with the installation of 14 new machines. All the machines have been commissioned by end of this quarter.

 

As a diversification strategy into the Renewable Energy business, the Company through its step down subsidiary, M/s Indo Rama Renewables (Jath) Limited, has entered into a binding contract for setting up a 30MW Wind Turbine Project using Gamesa G‐97 turbine, in the state of Maharashtra. The project with an estimated cost of Rs 2250.000 Millions is expected to commence commercial operations by March 2013.

 

Commenting on the Results, Mr. O P Lohia, Chairman and Managing Director, Indo Rama

Synthetics (India) Limited said, "The company has demonstrated its resilience in these challenging economic times. The successful completion of our cost improvement initiatives will further add to our competitiveness. With the Polyester prices bottoming out and rupee stabilizing, we expect the sentiments and performance to only improve from hereon”.

 

About Indo Rama Synthetics (India) Limited

Indo Rama Synthetics (India) Limited is India’s largest dedicated polyester manufacturer with an Integrated Manufacturing Complex at Butibori near Nagpur in Maharashtra, with capacity of 6,10,050 tonnes per annum of Polyester Staple Fibre, Filament Yarn, Draw Texturized Yarn, Fully Drawn Yarn and Textile grade Chips.

 

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 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.54.34

UK Pound

1

Rs.86.97

Euro

1

Rs.69.43

 

 

INFORMATION DETAILS

 

Report Prepared by :

BSN

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

6

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

6

--RESERVES

1~10

6

--CREDIT LINES

1~10

6

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

49

 

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.