MIRA
INFORM REPORT
|
Report Date : |
21.09.2012 |
IDENTIFICATION DETAILS
|
Name : |
MANDHANA INDUSTRIES LIMITED |
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Registered
Office : |
Plot No. C-3, MIDC, Tarapur Industrial Area, Boisar-401506, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
25.07.1984 |
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Com. Reg. No.: |
11-033553 |
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Capital
Investment / Paid-up Capital : |
Rs.331.239
Millions |
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CIN No.: [Company Identification
No.] |
L17120MH1984PLC033553 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM20579G |
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PAN No.: [Permanent Account No.] |
AABCM6615M |
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Legal Form : |
Public Limited Liability
Company. The company’s shares are listed on the Stock Exchanges |
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Line of Business
: |
Manufacturers of Garments and also engaged in processing and trading of fabrics. |
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No. of Employees
: |
4000 (Approximately) (In Office
+ In Factory) |
RATING & COMMENTS
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MIRA’s Rating : |
A (63) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 |
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Maximum Credit Limit : |
USD 17000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well established and reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 |
CRISIL |
|
Rating |
LONG TERM LOAN : A- |
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Rating Explanation |
Adequate degree of safety and low credit risk |
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Date |
11 September, 2012 |
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Rating Agency Name |
CRISIL |
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Rating |
LETTER OF CREDIT : A2+ |
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Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
11 September, 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.
INFORMATION PARTED BY
|
Name : |
Mr. Mitesh |
|
Designation : |
Finance Head |
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Contact No.: |
91-22-43539259 |
|
Date : |
20.07.2011 |
LOCATIONS
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Registered Office : |
Plot No. C-3, MIDC, Tarapur Industrial Area, Boisar-401506, |
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Tel. No.: |
91-2525-272228/29 |
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Fax No.: |
91-2525-260251 |
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E-Mail : |
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Website : |
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Location: |
Owned |
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Head Office : |
Unit No. 205/214, |
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Tel. No.: |
91-22-30409191/200 |
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Fax No.: |
91-22-30409216 |
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E-Mail : |
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Corporate Office : |
205/214, |
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Tel. No.: |
91-22-2494 9398 / 2495 2124 / 2494 6350 / 2493 7236 / 30409191 |
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Fax No.: |
91-22-2493 7236 / 2496 3494 / 30409216/ 30409218 |
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E-Mail : |
nayan@mandhana.com/mandhana@giasbm01.vsnl.net.in/ info@mandhana.com
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Factory1: |
Mandhana Weaving
House: A Division of Mandhana Industries Private Limited, E – 33, MIDC,
Tarapur Industrial Area, District Thane – 401 506 |
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Tel. No.: |
91-2525-274988/274989 |
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Fax No.: |
91-2525-274990 |
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E-Mail : |
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Factory2 : |
Mandhana Dyeing: (Process House) A Division of Mandhana Industries Private Limited, E – 25, MIDC,
Tarapur Industrial Area, District Thane-401 506 |
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Tel. No.: |
91-2525-272381 / 272426 / 272428 |
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Fax No.: |
91-2525-272427 |
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E-Mail : |
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Factory 3 : |
Mandhana Weaving
House: (Shirting Division) Plot No.C-2, MIDC, Tarapur, Industrial Area, District Thane- 401 506 |
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E-Mail : |
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Factory 4: |
Mandhana
Industries Private Limited: (Garment
Division) 26/A, Peenya II Phase, Peenya Industrial Area, Near NTTF Bus Stop,
Bangalore – 560058, Karnataka, India |
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Tel. No.: |
91-80-28395333 |
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E-Mail : |
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Factory 5: |
Garment Division Plot No.31, Survey No.161, Laggare Village, Yeshwanthpura, Hobli, Bangalore North Taluka, Bangalore – 560 058, Karnataka, India |
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Factory 6: |
Garment Division Unit No. 36/2, Maruti Plaza, Madanayakanahalli Village, Dasanapura, Hobli,
Tumkur Road, Bangalore-562123, Karnataka, India |
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Factory 7: |
Garment Division B Wing, Ganpati Baug, |
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Factory 8: |
Garment Division No.21-D, 2nd Phase, Peenya Industrial Area, Bangalore – 560 058, Karnataka, India |
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Factory 9: |
Mandhana Dyeing
– Unit II Plot No. C-3, MIDC, Tarapur Industrial Area, District Thane – 401 506, Maharashtra, India |
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Branch Offices : |
Located At:
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Mandhana Europe: |
15 Rue de la Banque, Escalier B Entresol – 75002 |
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Tel. No.: |
0033142960224 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Khurshed M. Thanawalla |
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Designation : |
Non-Executive and Executive Director |
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Address : |
Khatau Bunglow, GR. Fl. 6, Manav Mandir Road, Mumbai – 400006, Maharashtra, India. |
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Date of Birth/Age : |
24.12.1942 |
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Date of Appointment : |
04.12.2007 |
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|
Name : |
Mr. Ghyanendra Nath Bajpai |
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Designation : |
Non-Executive and Executive Director |
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Address : |
131, Shaan Apartments, K D Marg, Prabhadevi, Mumbai –
400028, |
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Date of Birth/Age : |
06.07.1942 |
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Date of Appointment : |
16.05.2007 |
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Name : |
Mr. Purshottam.C. Mandhana |
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Designation : |
Chairman and Managing Directors |
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Address : |
23, Mount Unique, 62-A, |
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Date of Birth/Age : |
06.07.1955 |
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Date of Appointment : |
01.10.1993 |
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Name : |
Mr. Biharilal C. Mandhana |
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Designation : |
Executive Director |
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Name : |
Mr. Manish B. Mandhana |
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Designation : |
Joint Managing Director |
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Name : |
Mr. Sanjay K. Asher |
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Designation : |
Non-Executive and Executive Director |
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Name : |
Mr. Ernst Robin Cornelius |
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Designation : |
Non-Executive and Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Vinay Sampat |
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Designation : |
Company Secretary and Head Legal |
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BOARD COMMITTEES |
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|
Audit Committee |
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|
Name : |
Mr. Khurshed M. Thanawalla |
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Designation : |
Chairman |
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Name : |
Mr. Ghyanendra Nath Bajpai |
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Designation : |
Member |
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Name : |
Mr. Sanjay K. Asher |
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Designation : |
Member |
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Name : |
Mr. Purushottam C. Mandhana |
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Designation : |
Member |
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Remuneration
Committee |
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|
Name : |
Mr. Ghyanendra Nath Bajpai |
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Designation : |
Chairman |
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|
Name : |
Mr. Khurshed M. Thanawalla |
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Designation : |
Member |
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|
Name : |
Mr. Sanjay K. Asher |
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Designation : |
Member |
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Shareholders’/Investor
Grievances, Share Allotment and Transfer Committee |
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Name : |
Mr. Khurshed M. Thanawalla |
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Designation : |
Chairman |
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Name : |
Mr. Manish B. Mandhana |
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Designation : |
Member |
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Management
Committee |
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Name : |
Mr. Purushottam C. Mandhana |
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Designation : |
Chairman |
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Name : |
Mr. Biharilal C. Mandhana |
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Designation : |
Member |
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Name : |
Mr. Manish B. Mandhana |
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Designation : |
Member |
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IPO Committee |
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Name : |
Mr. Purushottam C. Mandhana |
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Designation : |
Chairman |
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Name : |
Mr. Biharilal C. Mandhana |
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Designation : |
Member |
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Name : |
Mr. Manish B. Mandhana |
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Designation : |
Member |
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MANAGEMENT TEAM |
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|
Name : |
Mr. A. P. Bhatnagar |
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Designation : |
President – Weaving and Shirting |
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|
Name : |
Mr. Rajendran Pillai |
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Designation : |
President – Retail |
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Name : |
Mr. Mitesh Shah |
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Designation : |
Vice President – Finance and Corporate Affairs |
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Name : |
Mr. Narinder Marve |
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Designation : |
Vice President – I. T. |
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Name : |
Mr. Uday Kulkarni |
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Designation : |
Vice President – Processing (Unit – I) |
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Name : |
Mr. Gopal Shah |
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Designation : |
Vice President – Marketing (Export Division) |
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Name : |
Mr. Pushpendra Tyagi |
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Designation : |
Vice President – Marketing (Fabric Division) |
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Name : |
Ms. Varsha Raghuram |
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Designation : |
Vice President – Merchandising and Business Development |
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Name : |
Mr. Nileshkumar Modi |
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Designation : |
Vice President – Weaving |
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Name : |
Mr. Jagjit Singh |
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Designation : |
Vice President – Yarn Dyeing |
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|
Name : |
Mr. Nayan Kambli |
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Designation : |
AVP – Finance and Corporate Affairs |
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|
Name : |
Mr. Ritesh Bhardwaj |
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Designation : |
AVP – Commercial |
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|
Name : |
Mr. Arvind Shikharkhane |
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Designation : |
Project Head (Technical) |
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|
Name : |
Mr. Rahul Anand |
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Designation : |
Head – Design |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.06.2012
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
12,357,280 |
37.31 |
|
|
48,380 |
0.15 |
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|
8,202,060 |
24.76 |
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|
8,202,060 |
24.76 |
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|
20,607,720 |
62.21 |
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|
Total shareholding of Promoter and Promoter Group (A) |
20,607,720 |
62.21 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
917,000 |
2.77 |
|
|
1,357,412 |
4.10 |
|
|
2,274,412 |
6.87 |
|
|
|
|
|
|
7,184,581 |
21.69 |
|
|
|
|
|
|
502,868 |
1.52 |
|
|
1,117,154 |
3.37 |
|
|
1,437,178 |
4.34 |
|
|
2,750 |
0.01 |
|
|
1,374,428 |
4.15 |
|
|
60,000 |
0.18 |
|
|
10,241,781 |
30.92 |
|
Total Public shareholding (B) |
12,516,193 |
37.79 |
|
Total (A)+(B) |
33,123,913 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
33,123,913 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Directors/Promoters & their Relatives
& FriendsShareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category “Promoter and Promoter Group”
|
Name of the
Shareholder |
Details of
Shares held |
Encumbered
shares (*) |
Total shares (including
underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|||
|
|
No. of Shares
held |
As a % of |
No |
As a percentage |
As a % of |
|
|
|
|
|
|
|
|
|
|
Priyavrat P Mandhana |
3,286,000 |
9.92 |
- |
- |
- |
9.92 |
|
Purushottam C Mandhana HUF |
3,214,000 |
9.70 |
875,000 |
27.22 |
2.64 |
9.70 |
|
Manish B Mandhana |
2,149,140 |
6.49 |
- |
- |
- |
6.49 |
|
Purushottam C Mandhana |
2,026,140 |
6.12 |
- |
- |
- |
6.12 |
|
Prema P Mandhana |
1,749,000 |
5.28 |
1,110,000 |
63.46 |
3.35 |
5.28 |
|
Sudha B Mandhana |
1,741,000 |
5.26 |
1,110,000 |
63.76 |
3.35 |
5.26 |
|
Biharilal C Mandhana |
1,682,000 |
5.08 |
- |
- |
- |
5.08 |
|
Sangeeta M Mandhana |
1,112,060 |
3.36 |
- |
- |
- |
3.36 |
|
Biharilal C Mandhana HUF |
1,098,000 |
3.31 |
875,000 |
79.69 |
2.64 |
3.31 |
Shareholding belonging to the category
"Public" and holding more than 1% of the Total No. of Shares
|
Name of the
Shareholder |
No. of Shares
held |
Shares as % of
Total No. of Shares |
Total shares (including
underlying shares assuming full conversion of warrants and convertible
securities) as a % of diluted share capital |
|
|
|
|
|
|
Fortune Equity Brokers (India) Limited |
1,468,742 |
4.43 |
4.43 |
|
Religare Finvest Limited |
1,457,582 |
4.40 |
4.40 |
|
Religare Securities Limited |
929,838 |
2.81 |
2.81 |
|
Axis Bank Limited |
867,000 |
2.62 |
2.62 |
|
Asia Advantage Fund |
735,000 |
2.22 |
2.22 |
|
Chhattisgarh Investments Limited |
635,000 |
1.92 |
1.92 |
|
Edlweiss Securities Limited |
556,439 |
1.68 |
1.68 |
|
Orange Mauritius Investments Limited |
550,000 |
1.66 |
1.66 |
|
Total |
7,199,601 |
21.74 |
21.74 |
Details of Locked-in
Shares
|
Name of the
Shareholder |
No. of Shares |
Locked-in Shares
as % of |
|
Biharilal C Mandhana |
1,249,500 |
3.77 |
|
Manish B Mandhana |
1,279,310 |
3.86 |
|
Priyavrat P Mandhana |
1,458,000 |
4.40 |
|
Purushottam C Mandhana |
1,296,000 |
3.91 |
|
Purushottam C Mandhana HUF |
1,347,000 |
4.07 |
|
Total |
6,629,810 |
20.02 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturers of Garments and also engaged in processing and trading of fabrics. |
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Products : |
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Exports : |
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Products : |
Garments |
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Countries : |
Germany |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Yarn Dyeing |
Kgs. |
3000.00 |
2446.23 |
|
Grey Cloth |
Mtrs. |
18000.00 |
14509.55 |
|
Finished Cloth (Fabric Processing) |
Mtrs. |
51600.00 |
20732.39** |
|
Garment |
Nos. |
3600.00 |
3065.68* |
Note:
- * Actual production includes in-house production and production by
job workers.
- ** Fabric processing includes in-house processing and process on job
works.
- *** Installed capacity includes capacities for newly commenced plant
at Tarapur (CDR Division). Actual production is for 10 days only.
GENERAL INFORMATION
|
Customers : |
Wholesalers and Retailers |
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No. of Employees : |
4000 (Approximately) (In Office
+ In Factory) |
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Bankers : |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Vishal H. Shah and Associates Chartered Accountant |
|
Address : |
L.B.S. Marg, Opposite Shreyas Cinema, Ghatkopar (West), Mumbai, |
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Internal Auditors : |
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|
Name : |
Hinesh R. Doshi and Company (for Corporate Office Mumbai and Tarapur) Chartered Accountants |
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|
Name : |
B. Choraria and Mates Chartered Accountants |
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Solicitors: |
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Name : |
Crawford Bayley and Company |
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Related parties : |
· Mahan Synthetics Textiles Private Limited · Balaji Corporation · Indus Fila Limited · Golden Seam Textile Private Limited · Mandhana Retail Vanture Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39990000 |
Equity Shares |
Rs.10/- each |
Rs.399.900 Millions |
|
10000 |
Preference Shares |
Rs.10/- each |
Rs.0.100 Million |
|
|
Total |
|
Rs.400.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33123913 |
Equity Shares |
Rs.10/- each |
Rs.331.239
Millions |
The Company has only one class of equity shares having at par value of ` 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. 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 of their shareholding.
|
Name of
Shareholder |
As at 31 March 2012 |
|
|
No.
of Shares held |
%
of Holding |
|
|
Priyavrat P. Mandhana Jt. Purushottam C. Mandhana |
3,286,000 |
9.92 |
|
Purushottam C. Mandhana (HUF) |
3,214,000 |
9.70 |
|
Axis Bank Limited |
N.A. |
N.A. |
|
Manish B. Mandhana Jt. Sangeeta M. Mandhana |
2,149,140 |
6.49 |
|
Purushottam C. Mandhana Jt. Prema P. Mandhana |
2,026,140 |
6.12 |
|
Prema P. Mandhana Jt. Purushottam C. Mandhana |
1,749,000 |
5.28 |
|
Sudha B. Mandhana Jt. Biharilal C. Mandhana |
1,741,000 |
5.26 |
|
Biharilal C. Mandhana Jt. Sudha B. Mandhana |
1,682,000 |
5.08 |
|
|
15,847,280 |
|
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 |
331.239 |
331.239 |
248.239 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
3843.395 |
3189.379 |
1685.166 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4174.634 |
3520.618 |
1933.405 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6205.585 |
4850.648 |
3819.861 |
|
|
2] Unsecured Loans |
179.448 |
318.919 |
322.392 |
|
|
TOTAL BORROWING |
6385.033 |
5169.567 |
4142.253 |
|
|
DEFERRED TAX LIABILITIES |
664.802 |
577.429 |
496.698 |
|
|
|
|
|
|
|
|
TOTAL |
11224.469 |
9267.614 |
6572.356 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5012.620 |
4619.707 |
3650.676 |
|
|
Capital work-in-progress |
308.608 |
220.547 |
27.713 |
|
|
|
|
|
|
|
|
INVESTMENT |
26.287 |
240.192 |
0.005 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3820.395
|
2690.691
|
1837.492
|
|
|
Sundry Debtors |
1805.201
|
1565.189
|
945.190
|
|
|
Cash & Bank Balances |
29.235
|
60.425
|
18.977
|
|
|
Other Current Assets |
317.818
|
338.645
|
0.000
|
|
|
Loans & Advances |
971.004
|
486.311
|
572.076
|
|
Total
Current Assets |
6943.653
|
5141.261
|
3373.735
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
268.754
|
358.960
|
203.625
|
|
|
Other Current Liabilities |
733.528
|
493.411
|
202.614
|
|
|
Provisions |
64.417
|
101.722
|
73.534
|
|
Total
Current Liabilities |
1066.699
|
954.093
|
479.773
|
|
|
Net Current Assets |
5876.954
|
4187.168
|
2893.962
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
11224.469 |
9267.614 |
6572.356 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9801.481 |
8382.928 |
6252.164 |
|
|
|
Other Income |
8.651 |
51.619 |
(152.824) |
|
|
|
TOTAL (A) |
9810.132 |
8434.547 |
6099.340 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4913.812 |
5219.646 |
|
|
|
|
Cost of goods Traded |
1496.977 |
1107.278 |
|
|
|
|
Changes in inventories of finished goods work-in-progress and Stock-in-Trade |
(242.638) |
(853.788) |
|
|
|
|
Manufacturing and Operating Costs |
964.445 |
765.125 |
|
|
|
|
Employee Benefit Expenses |
477.118 |
405.121 |
|
|
|
|
Other Expenses |
344.884 |
265.715 |
|
|
|
|
TOTAL (B) |
7954.598 |
6909.097 |
4993.569 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1855.534 |
1525.450 |
1105.771 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
590.412 |
338.690 |
267.195 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1265.122 |
1186.760 |
838.576 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
233.349 |
192.772 |
172.576 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1031.773 |
993.988 |
666.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
300.762 |
326.447 |
231.992 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
731.011 |
667.541 |
434.008 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1849.665 |
1319.374 |
983.474 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
80.000 |
60.000 |
40.000 |
|
|
|
Dividend Paid |
66.248 |
66.248 |
49.667 |
|
|
|
Corporate Dividend Tax Paid |
10.747 |
11.003 |
8.441 |
|
|
BALANCE CARRIED
TO THE B/S |
2423.681 |
1849.665 |
1319.374 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1582.485 |
1417.488 |
1111.021 |
|
|
TOTAL EARNINGS |
1582.485 |
1417.488 |
1111.021 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
159.462 |
700.495 |
337.740 |
|
|
|
Auxiliary Material |
43.181 |
34.608 |
27.661 |
|
|
TOTAL IMPORTS |
202.643 |
735.103 |
365.401 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share
(Rs.) |
22.07 |
20.74 |
18.24 |
|
Expected Sales (2012-2013) : Rs.10000.000 Millions
The above information has been parted by Mr. Mitesh.
QUARTERLY RESULTS
|
PARTICULARS |
|
|
|
30.06.2012 |
|
Type |
|
|
|
1st
Quarter |
|
Net Sales |
|
|
|
2124.840 |
|
Total Expenditure |
|
|
|
1739.320 |
|
PBIDT (Excl OI) |
|
|
|
385.520 |
|
Other Income |
|
|
|
(10.620) |
|
Operating Profit |
|
|
|
374.900 |
|
Interest |
|
|
|
157.580 |
|
PBDT |
|
|
|
217.320 |
|
Depreciation |
|
|
|
64.660 |
|
Profit Before Tax |
|
|
|
152.660 |
|
Tax |
|
|
|
47.870 |
|
Profit After Tax |
|
|
|
104.800 |
|
Net Profit |
|
|
|
104.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
7.45
|
7.91
|
7.12
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.53
|
11.86
|
10.65
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.63
|
10.18
|
9.48
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.25
|
0.28
|
0.34
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.79
|
1.74
|
2.39
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
6.51
|
5.39
|
7.03
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITOR
DETAILS
(Rs.
In Millions)
|
Particulars
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
|
Sundry Creditors |
268.754 |
358.960 |
203.625 |
|
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 |
Yes |
|
10] |
Designation of contact
person |
Yes |
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
Yes |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
No |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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 |
COMPANY
PERFORMANCE AND BUSINESS OVERVIEW
Financial year
2011-12 witnessed another year of high inflation and interest rate regime, decelerating
growth alongwith slowdown in international market and investment climate
affecting businesses environment resulting in moderated growth.
The Company
achieved a total turnover of Rs.9801.481 Millions for the year ended 31st
March, 2012 as against Rs.8382.928 Millions in the previous year, with EBIDTA
at Rs.1846.883 Millions against an EBIDTA of Rs.1473.831 Millions in the
previous year and has earned a net profit of Rs.731.011 Millions versus
Rs.667.541 Millions in the previous year. This represents a growth of 16.92% in
turnover, 25.31% in EBIDTA and 9.51% in terms of net profit.
Highlights of
performance and business overview are discussed in detail in Management
Discussion and Analysis forms part of this Annual Report.
Management
Discussion and Analysis
Global Economic Scenario
The year 2011 was
quite volatile and marked by uprisings in Middle East and North Africa (MENA),
catastrophic Tsunami in Japan and the reigning sovereign crisis in the
Eurozone. Despite challenges, there are signs of moderate global recovery
primarily on the back of moderate growth in USA during the second half of 2011
and pursuance of more effective policies in the Eurozone.
The global
economic growth is to be estimated at around 3.5% in 2012, powered by the
emerging markets. The advanced markets are likely to witness 1.5% growth in
2012 and 2% in 2013, while the emerging markets are anticipated to grow by
5.75% in 2012, compared to 6.25% in 2011 and accelerate to 6% in 2013.
Indian economic scenario
The Indian economy
has undergone a volatile phase in 2011. The nation registered a GDP growth of
6.5% in 2012, compared to an average GDP growth of 8.4% (over the last five
years). The prime reasons for the sluggish economic growth was largely
attributed to the global factors; especially the negative developments in
Eurozone which overweighed the slow US recovery, affecting the overall investor
sentiment and thus resulting in a slowdown. However, domestic factors have
contributed significantly as well. Among these are the tight monetary policies
owing to persistent headline inflation, slowing investment and industrial
activity, infrastructure constraints, liquidity crunch (fiscal deficit 5.9%)
and political instability.
According to a UN
report, the Indian economy is expected to gain back its momentum and is
projected to see a faster growth of 7.5% in the coming years on the back of
higher savings and investment rates, even as most of the Asia-Pacific economies
are likely to expand at a slow pace.
The global textile
industry
The industry has
witnessed a shift of manufacturing activities from developed to developing
nations, especially China and India, to meet their demands for apparel and
textiles. During 2010, the industry was valued around USD 612 Bn.
The global per
capita fibre consumption is expected to grow steadily to 11-12 kg per capita by
2025, which means additional fibre consumption of about 20 Mn tonnes would be
required. It is expected that the global textiles and apparels trade would grow
at a CAGR of 6.3% over the next decade to reach USD 1 Tn by 2020
India’s textile
industry
The Indian textile
industry is the second largest provider of employment after the agricultural
sector.
The Indian textile
industry is estimated to be of the size of USD 75 Bn in 2011-12. India’s
textile sector contributes 4% to the country’s gross domestic product (GDP),
accounts for 14% of industrial production and 10% to country’s export. The
industry provides direct employment to about 35 Mn people.
Factors like unprecedented
volatility of raw materials and exchange rate fluctuations, European debt
crisis and high inflation contributed to a challenging environment in 2011-12.
The finished goods are estimated to touch USD 34 Bn in 2011-12 as against USD
26.8 Bn in 2010-11. India is striving to attain an export target of USD 38 Bn
in the next fiscal. The growing markets like Latin America and Africa will
surely boost the demand of Indian textile products.
India’s
contribution to the world market is a meager 4.3%, whereas China is clearly
ahead with 20.3% and has witnessed a growth of 11% during 2007-12.
Man-Made Fibre /
Yarn and Power loom
This segment of
the textile industry includes manufacture of fibre and filament yarn. The power
looms sector produces a variety of cloths to cater to the different needs of
the market. It is a much decentralised sector and plays a very important role
in the Indian Textiles Industry. This sector is the largest manufacturer of
fabrics contributing around 62% of the total cloth production in the country
and employing close to 4.86 Mn people.
Cotton
India has 30% area
under cotton cultivation followed by China (20%) and US (9%). This makes the
Indian soil the largest area globally growing cotton. India witnessed an increase
of 68% in the cotton acreage in the last two decades. The primary reasons for
enhanced yields and better quality is due to widespread introduction of
genetically modified cotton seed, i.e. BT cotton. Owing to the volatility of
cotton prices the Directorate-General of Foreign Trade (DGFT) lifted the ban on
cotton exports permitting export of quantities that were registered but not
shipped.
Handloom
It accounts to
about 13% of the total cloth produced within the country (excluding Wool, Silk
and Khadi).
Woolen
India is the 7th
largest producer of wool in the world and has a 1.8% share in the total world
production. The share of apparel grade lies at 5%, carpet grade at 85%, and
coarse grade at 10% of the total raw wool production. The industry’s dependence
on import of raw wool is high because of the inadequate production levels. This
sector is also highly organised and decentralised. A major part of the industry
is based out of rural areas.
Jute
Jute, popularly known
as the Golden fibre, is the cheapest fibre available after cotton. India
produces the largest number of raw jute and jute products in the world and is
the second-largest exporter of jute products in the world.
Sericulture and
Silk
India being the second-largest
producer of silk in world, contributes to 18% of the total world raw silk
production. Varieties of silk are available in India such as, Mulberry, Eri,
Tasar, and Muga. Sericulture, a combination of Agriculture and Industry, is the
most labour-intensive sector in India. It also plays a vital role in the
cottage industry in the country. (Source: India Law Offices Research Report)
Handicraft
The Indian
handicrafts sector is highly labour intensive, cottage based and a
decentralised industry. This sector provides employment to a huge segment of
craft persons in rural and semi urban areas. It generates substantial foreign
exchange and also preserves its cultural heritage.
Readymade garments
Rising incomes,
urbanisation and growing awareness about brands are fuelling the readymade
garment industry in India. The Indian branded garment market, which is
estimated at over Rs.185 Bn, accounts for 25% of the Rs.745 Bn readymade
market. CRISIL expects the readymade garments (RMG) market to reach Rs.2741 Bn
by 2015.
Key growth drivers
·
Prospect
of cotton spinning units is expected to improve with decline in cotton prices
leading to a revival in demand for cotton yarn and consequent increase in
capacity utilisation across the cotton textile value chain.
·
Organised retail in India is expected to grow from
around 5% of India’s GDP in 2010-11 to 24% of the GDP by 2020. About 83% of the
Indian readymade garments and apparel market is unorganised and 17% is
organised, which is forecasted to increase in the coming years.
·
Indian middle class is expected to reach 41% of the
population by 2025. Consumers’ increasing brand consciousness, fashion
consciousness, and image consciousness, growing modernisation and increasing
need for better retail experience amongst the people is facilitating retail
boom.
·
In 2011, more than 700 Mn people of the total
population represented the working population. A growing corporate workforce,
with an increasing number of women workers, and increasing compliance amongst
corporate houses, has catalysed spending on apparels and formal wear.
Outlook
The long term
prospects of the industry seem optimistic due to increasing manufacturing
preference in developing nations. The industry is expected to reach USD 134 Bn
in 2015 and USD 220 Bn by 2020. On the export front, demand is expected to be
fairly robust in long term. With new economies and markets - China, India,
Russia, UAE, South Africa etc. - emerging as hubs of consumption, the Indian
textiles and clothing exports has the potential to reach USD 45 Bn by 2015 and
USD 80 Bn by 2020.
CONTINGENT LIABILITIES NOT PROVIDED FOR IN
RESPECT OF (AS ON 31.03.2012):
a) Export invoices backed by letter of credit purchased by the bank amounting to Rs.58.439 Millions (Previous year Rs.31.691 Millions)
b) Sales invoices Discounted with the bank amounting to Rs.7.279 Millions. (Previous Year Rs.8.836 Millions)
c) Claim against the Company not acknowledged as debts in respect of Income Tax demand amounting to Rs.43.504 Millions (Previous Year Rs.11.913 Millions) (Interest thereon not ascertainable at present.)
d) Claim against the Company not acknowledged as debts in respect of Central Excise dues amounting to Rs.48.520 Millions. (Previous Year Rs.29.058 Millions) (Interest thereon not ascertainable at present.)
e) Bank guarantee given to Sales Tax , MSEB and Custom Department of Rs.60.658 Millions. (Previous Year Rs.51.609 Millions)
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30TH JUNE, 2012
(Rs. in Millions)
|
Particulars |
30.06.2012 |
|
|
Quarter Ended |
|
|
(Unaudited) |
|
Income |
|
|
a) Net Sales / Income from Operations |
2124.844 |
|
b) Other Operating Income |
- |
|
Total Operating Income |
2124.844 |
|
Expenditure |
|
|
(a) Cost of materials consumed |
840.741 |
|
(b) Purchase of Stock in Trade |
329.200 |
|
(c) Changes in inventories of Finished Goods, Work in Progress and Stock-in-Trade |
24.597 |
|
(d) Employee Benefit expense |
127.533 |
|
(e) Manufacturing Cost |
302.997 |
|
(f) Depreciation and amortisation expenses |
64.664 |
|
(g) Other expenses |
81.716 |
|
Total Expenditure |
1771.448 |
|
Profit / (Loss) From Operations before other Income Interest & Exceptional Items |
353.396 |
|
Other Income |
(10.618) |
|
Profit/(Loss) before Interest |
342.778 |
|
Interest |
190.119 |
|
Profit / (Loss) after interest |
152.659 |
|
Tax Expenses - Current Tax - Deferred Tax (Assets)/Liability |
37.175 10.686 |
|
Net Profit/(Loss) From Ordinary activities after Tax |
104.798 |
|
Paid Up Equity Share Capital ( Face Value of the share Rs.10/- each ) |
331.239 |
|
Reserves (Excluding Revaluation Reserves) |
3948.193 |
|
Earning Per Share
(EPS) |
|
|
Basic EPS Before and after Extraordinary Items |
3.16 |
|
Diluted EPS Before and after Extraordinary Items |
3.16 |
|
Public Share Holding |
|
|
- Number of Shares |
12,516,193 |
|
- Percentage of shareholding |
37.79% |
|
Promoters and Promoter group share holding |
|
|
a) Pledged / Encumbered |
3,970,000 |
|
b) Non-encumbered |
|
|
- Number of Shares |
16,637,720 |
|
- Percentage of Share (as a % of the total shareholding of promoter and promoter group) |
80.74% |
|
- Percentage of Share (as a % of the total share capital of the company) |
|
|
|
50.23% |
|
B |
INVESTOR COMPLAINTS |
30.06.2012 |
|
Quarter Ended |
||
|
(Unaudited) |
||
|
|
Pending at the beginning of the quarter |
NIL |
|
|
Received during the quarter |
NIL |
|
|
Disposed of during the quarter |
NIL |
|
|
Remaining unresolved at the end of the quarter |
NIL |
SEGMENT
– WISE REVENUE, RESULT AND CAPITAL EMPLOYED
(Rs.
in Millions)
|
Particulars |
30.06.2012 |
|
Quarter Ended |
|
|
(Unaudited) |
|
|
1. Segment
Revenue |
|
|
(a) Textiles |
1696.885 |
|
(b) Garment |
522.632 |
|
Total |
2219.517 |
|
Less : Inter-segment Revenue |
94.673 |
|
Total Revenue |
2124.844 |
|
2. Segment
Profit / (Loss) Before Tax and Interest |
|
|
(a) Textiles |
220.879 |
|
(b) Garment |
132.517 |
|
Total |
353.396 |
|
Less : Interest |
190.119 |
|
|
163.277 |
|
Add : Unallocable Income |
(10.618) |
|
Profit Before
Tax |
152.659 |
|
3. Capital
Employed |
|
|
(a) Textiles |
6912.376 |
|
(b) Garment |
1509.541 |
|
Total |
8421.917 |
Notes:
· The above financial results have been reviewed by the Audit Committee and approved by the Board of Directors at its meeting held on 6th August, 2012
· The Auditors of the Company have carried out the Limited Review of the above financial results.
· For the quarter under review the Finance Cost of Rs. 190.119 Millions (Previous year Rs. 124.262 Millions) also includes Foreign Exchange Fluctuation Loss of Rs. 32.540 Millions (Previous year Rs. 0.378 Millions) on account of provisioning of MTM on outstanding Foreign Currency Working Capital Loans and forward contract positions as on 30th June, 2012.
· No Investor grievance was received during the quarter. No Investor grievances were outstanding at the beginning and end of the quarter.
· Previous period figures have been regrouped/rearranged, where necessary.
FIXED ASSETS :
- Residential
Building
- Plant and
Machinery
- Factory
Equipment
- Air
Conditioner
- Furniture and
Fixtures
- Motor Car and
Bikes
- Office
Equipments
- Electrical
Installation
- Computer
Accessories
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.34 |
|
|
1 |
Rs.87.91 |
|
Euro |
1 |
Rs.70.57 |
INFORMATION DETAILS
|
Information
Gathered by : |
PJA |
|
|
|
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--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 |
|
63 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.