MIRA
INFORM REPORT
|
Report Date : |
17.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
SEL MANUFACTURING COMPANY LIMITED |
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|
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Registered
Office : |
274, Dhandari Khurd, G.T. Road, Ludhiana – 141 014, Punjab |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
08.05.2000 |
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Com. Reg. No.: |
16-023679 |
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Capital
Investment / Paid-up Capital : |
Rs.1113.470
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L51909PB2000PLC023679 |
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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
: |
Subject is engaged in the manufacturing, processing and trading of
yarn, fabric, readymade garments and towel. |
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|
No. of Employees
: |
8000 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 42935000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of “SEL Group”. It is an established company having a moderate track record. There appears
sharp dip in the profitability during the year 2011-2012. The external
borrowing seems to be increasing over years which act as a threat to the
liquidity. The share price of the company is declining from last nine months. However, networth of the company appears to be strong. Trade relations
are reported to be fair. Business is active. Payments are reported to be slow
but correct. The company can be considered for business dealings with some
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
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/ Corporate Office : |
274, Dhandari Khurd, G.T. Road, Ludhiana – 141 014, Punjab, India |
|
Tel. No.: |
91-161-2510270/ 6611111 |
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Fax No.: |
91-161-2510268/ 6611112 |
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E-Mail : |
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Website : |
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Factory 1 : |
Village: Lal Kalan,
Teh: Samrala Ludhiana-Chandigarh Road, Near Neelon Canal Bridge, Ludhiana,
Punjab, India |
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Factory 2 : |
Village Bajra Road, Ludhiana - 141 007, Punjab, India |
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Factory 3 : |
Plot No.106, Industrial
Area, Baddi (SFS) , District: Solan, Himachal Pradesh, India |
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Factory 4 : |
C 256-257, Phase VIII, Focal Point, Ludhiana, Punjab, India |
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Factory 5 : |
Village Shekhan Majara,
Machiwara Rahon Road, Tehsil and District Nawanshehar, Punjab, India |
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Factory 6 : |
Village
Mehatwara, Tehsil Ashta, District Sehore, Madhya Pradesh, India |
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Factory 7 : |
G.T. Road, Opposite Mcdonalds, Doraha, Ludhiana, Punjab, India |
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Factory 8 : |
A-15, Phase-VII, Focal Point, Ludhiana, Punjab, India |
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Factory 9 : |
Plot No.90,
Industrial Area, Baddi (SFS), District Solan, Himachal Pradesh, India |
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Factory 10 : |
23KM Stone, Delhi-Hisar Highway, Hansi Hisar, Haryana, India |
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Factory 11 : |
15B, RIICO Industrial Area, Neemrana, District Alwar, Rajasthan, India
|
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Factory 12 : |
Village Udhowal,
Tehsil Nawanshehar, District Saheed Bhagat Singh Nagar, Punjab, India |
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Factory 13 : |
Village
Punjava-Lambi, Tehsil Malout, District Sri Muktsar Sahib, Punjab, India |
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Factory 14 : |
NH-8, Village Lakodara, Karjan, Vadodara, Gujarat, India |
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Factory 15 : |
Plot No.2, Taj
Nagari Phase-1, Opposite Shanti Mangalick Hospital, Fatehabad Road, Agra,
Uttar Pradesh, India |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Ram Saran Saluja |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Neeraj Saluja |
|
Designation : |
Managing Director |
|
Date of Birth/ Age : |
45 Years |
|
Qualification : |
Diploma in Business Administration |
|
Experience : |
20 Years in Textile Industry |
|
Date of Appointment : |
30.03.2006 |
|
|
|
|
Name : |
Mr. Dhiraj Saluja |
|
Designation : |
Joint Managing Director |
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Date of Birth/ Age : |
40 Years |
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Qualification : |
Degree in Mechanical Engineering |
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Experience : |
16 Years in Textile Industry |
|
Date of Appointment : |
28.05.2007 |
|
|
|
|
Name : |
Mr. Vinod Kumar Goyal |
|
Designation : |
Executive Director and Chief
Executive Officer |
|
Date of Birth/ Age : |
53 Years |
|
Qualification : |
MBA |
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Experience : |
31 Years in Textile Industry |
|
Date of Appointment : |
13.07.2010 |
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|
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|
Name : |
Mr. Navneet Gupta |
|
Designation : |
Executive Director and Chief
Financial Officer |
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|
Name : |
Mr. Ashwani Kumar |
|
Designation : |
Director |
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|
Name : |
Mr. Amit Narang |
|
Designation : |
Director |
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|
Name : |
Mr. Kanwalnain Singh Kang |
|
Designation : |
Director |
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|
Name : |
Mr. Ranjan Madaan |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Prem Kumar |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Rahul Kapoor |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
27729044 |
16.08 |
|
|
27729044 |
16.08 |
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|
|
|
Total shareholding of Promoter and Promoter Group (A) |
27729044 |
16.08 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1072700 |
0.62 |
|
|
100000 |
0.06 |
|
|
1172700 |
0.68 |
|
|
|
|
|
|
38518040 |
22.33 |
|
|
|
|
|
|
50503271 |
29.28 |
|
|
46463733 |
26.94 |
|
|
8071713 |
4.68 |
|
|
2827010 |
1.64 |
|
|
1247075 |
0.72 |
|
|
3991028 |
2.31 |
|
|
6600 |
0.00 |
|
|
143556757 |
83.24 |
|
Total Public shareholding (B) |
144729457 |
83.92 |
|
Total (A)+(B) |
172458501 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
158888499 |
0.00 |
|
|
158888499 |
0.00 |
|
Total (A)+(B)+(C) |
331347000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the manufacturing, processing and trading of
yarn, fabric, readymade garments and towel. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed Capacity |
Installed Capacity |
Actual Production |
|
Hosiery Garments |
Pcs. |
NA |
8500000 |
3466914 |
|
Knitted Cloth |
Kgs |
NA |
|
1767372 |
|
Cotton/ Polyster Yarn |
Kgs |
NA |
149856 2400 |
31468027 |
|
Terry Towel |
MT |
NA |
12600 |
4854 |
(Installed Capacities have been certified by the management and not verified by the Auditors being technical matter.)
(Installed Capacities per annum on the assumption of 300 working days in year except in the case cotton yarn where it is on the basis of 360 working days. The capacities in Garments and Dyed Knitted Cloth may vary depending on the quality of the final product desired.)
(In case of Cotton/Polyster Yarn, installed capacities are in the terms of spindles and rotors installed)
GENERAL INFORMATION
|
No. of Employees : |
8000 (Approximately) |
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Bankers : |
·
State Bank of Bikaner and Jaipur ·
State Bank of Patiala ·
State Bank of India ·
State Bank of Indore ·
Exim Bank ·
UCO Bank ·
State Bank of Hyderabad ·
State Bank of Travancore ·
State Bank of Mysore ·
Punjab National Bank ·
Punjab and Sind Bank ·
Vijaya Bank ·
Allahabad Bank ·
Indian Bank ·
Union Bank of India ·
Karur Vysya Bank ·
Bank of Maharashtra ·
Dena Bank ·
Corporation Bank ·
HDFC Bank Limited ·
ICICI Bank Limited |
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Facilities : |
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Banking Relations
: |
-- |
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Auditors : |
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|
Name : |
Dass Khanna and Company Chartered Accountants |
|
Address : |
B-XX-2815, Gurdev Nagar, Pakhowal Road, Ludhiana – 141
001, Punjab, India |
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|
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Subsidiary
Partnership Firms : |
·
S. E. Exports ·
Kudu Industries |
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|
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|
Subsidiary
Companies : |
·
SEL Textiles Limited ·
SEL Aviation Private Limited ·
Omega Hotels Limited |
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Fellow
Subsidiary Company : |
*Silverline Corporation Limited |
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Associates : |
Rythm Textiles and Apparels Park Limited |
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|
Enterprises over which key management personal
and relatives of such personal is able to exercise significant influence : |
·
*Shiv Narayan Investments Private Limited ·
Saluja International ·
*Saluja Fabrics ·
SEL Developers Private Limited |
* No transactions have taken place during the year.
CAPITAL STRUCTURE
As on 28.09.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs.10000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
331347000 |
Equity Shares |
Rs.10/- each |
Rs.3313.470
millions |
|
|
|
|
|
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs.4000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
111347000 |
Equity Shares |
Rs.10/- each |
Rs.1113.470
millions |
|
|
|
|
|
Reconciliation of the number of equity
shares outstanding
|
Equity
shares |
As at 31st March, 2012 |
|
|
No. of Shares |
Amount (Rs. in
millions) |
|
|
Shares
outstanding at the beginning of the year |
99347000 |
993.470 |
|
Shares
Issued during the year |
12000000 |
120.000 |
|
Shares outstanding at the end of the year |
111347000 |
1113.470 |
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 |
1113.470 |
993.470 |
303.570 |
|
|
2] Share Warrant |
0.000 |
0.000 |
15.750 |
|
|
3] Reserves & Surplus |
9620.290 |
8980.303 |
4676.249 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
10733.760 |
9973.773 |
4995.569 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
23131.488 |
14857.450 |
9193.466 |
|
|
2] Unsecured Loans |
27.030 |
29.451 |
223.740 |
|
|
TOTAL BORROWING |
23158.518 |
14886.901 |
9417.206 |
|
|
DEFERRED TAX LIABILITIES |
953.499 |
614.468 |
324.482 |
|
|
|
|
|
|
|
|
TOTAL |
34845.777 |
25475.142 |
14737.257 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13556.702 |
8754.032 |
4678.089 |
|
|
Capital work-in-progress |
5508.355 |
2110.918 |
2473.313 |
|
|
|
|
|
|
|
|
INVESTMENT |
1857.188 |
2142.300 |
1589.069 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
6165.244
|
5498.736
|
2118.992
|
|
|
Sundry Debtors |
6319.185
|
4389.165
|
3051.247
|
|
|
Cash & Bank Balances |
732.058
|
1083.388
|
564.569
|
|
|
Other Current Assets |
1439.144
|
809.615
|
0.000
|
|
|
Loans & Advances |
3630.603
|
4431.811
|
780.735
|
|
Total
Current Assets |
18286.234
|
16212.715
|
6515.543
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1848.387
|
1474.998
|
189.952
|
|
|
Other Current Liabilities |
2296.811
|
1970.296
|
169.347
|
|
|
Provisions |
217.504
|
299.529
|
160.225
|
|
Total
Current Liabilities |
4362.702
|
3744.823
|
519.524
|
|
|
Net Current Assets |
13923.532
|
12467.892
|
5996.019
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.767 |
|
|
|
|
|
|
|
|
TOTAL |
34845.777 |
25475.142 |
14737.257 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
20383.424 |
15832.155 |
9422.162 |
|
|
|
Other Income |
962.790 |
245.439 |
394.979 |
|
|
|
TOTAL (A) |
21346.214 |
16077.594 |
9817.141 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
13884.860 |
4337.111 |
7985.336 |
|
|
|
Purchases of Stock‐in‐Trade |
3819.825 |
9252.379 |
|
|
|
|
Changes in Inventories of Finished Goods, Work in Progress and Stock
in Trade |
(2217.610) |
(1837.785) |
|
|
|
|
Employee Benefits Expenses |
603.281 |
379.394 |
|
|
|
|
Other Expenses |
1719.809 |
1126.993 |
|
|
|
|
TOTAL (B) |
17810.165 |
13258.092 |
7985.336 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3536.049 |
2819.502 |
1831.805 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1705.852 |
769.214 |
593.603 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1830.197 |
2050.288 |
1238.202 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
751.118 |
557.872 |
314.313 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
1079.079 |
1492.416 |
923.889 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
360.750 |
488.502 |
255.037 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
718.329 |
1003.914 |
668.852 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3090.352 |
2328.576 |
1959.585 |
|
|
|
|
|
|
|
|
|
|
Tax Adjustment
Relating to Previous Year |
(131.791) |
7.862 |
(49.861) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
499.800 |
250.000 |
250.000 |
|
|
BALANCE CARRIED
TO THE B/S |
3177.090 |
3090.352 |
2328.576 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B Value |
4645.635 |
3185.085 |
2598.162 |
|
|
|
Overseas Income |
2958.449 |
1425.373 |
0.000 |
|
|
TOTAL EARNINGS |
7604.084 |
4610.458 |
2598.162 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
19.962 |
|
1023.089 |
|
|
|
Stores & Spares |
10.206 |
23.788 |
|
|
|
|
Capital Goods |
4098.756 |
2181.435 |
|
|
|
TOTAL IMPORTS |
4128.924 |
2219.160 |
1023.089 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
8.47 |
12.73 |
32.08 |
|
|
|
- Diluted |
8.47 |
12.73 |
31.90 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
5603.700 |
5810.600 |
7368.700 |
|
Total Expenditure |
4760.500 |
5077.800 |
6017.600 |
|
PBIDT (Excl OI) |
843.200 |
732.800 |
1351.100 |
|
Other Income |
230.900 |
521.000 |
124.200 |
|
Operating Profit |
1074.000 |
1253.700 |
1475.300 |
|
Interest |
552.900 |
661.000 |
743.400 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
521.100 |
592.700 |
731.900 |
|
Depreciation |
295.700 |
317.300 |
391.400 |
|
Profit Before Tax |
225.500 |
275.400 |
340.500 |
|
Tax |
75.500 |
145.600 |
62.600 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
149.900 |
129.800 |
278.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
149.900 |
129.800 |
278.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.37 |
6.24
|
6.81
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.29 |
9.43
|
9.81
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.39 |
5.98
|
8.25
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10 |
0.15
|
0.18
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.16 |
1.49
|
1.89
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.19 |
4.33
|
12.54
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
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 |
No |
|
Unsecured Loans |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
LONG TERM BORROWINGS |
|
|
|
i) Vehicle Loans |
|
|
|
‐ From Banks |
27.030 |
29.451 |
|
Total
|
27.030 |
29.451 |
CORPORATE INFORMATION
Subject is a public company incorporated in India under the provisions
of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and
National Stock Exchange. The Company is engaged in the manufacturing,
processing and trading of yarn, fabric, readymade garments and towel.
BUSINESS
The Company is vertically integrated multi-product textile company, manufacturing and exporting various kinds of
Knitted Garments, Terry Towels, Knitted and Processed Fabric and various kind of Yarn with production facilities located at Ludhiana and Nawan Sheher in Punjab, Baddi in Himachal Pradesh and Sehore in Madhya Pradesh.
They are expanding their existing capacities in spinning/knitting. The Company is setting up a new project in the state of Madhya Pradesh consisting of spinning unit with a capacity of 571,200 spindles, out of which 1,95,840 spindles have already been installed. The said spinning facility is the largest under one roof in India. Further, the Company also proposes to set up a Open end spinning with capacity of 2040 Rotors and Knitted Fabric/cloth capacity of 72000 TPA.
OPERATIONS
During the year, the company has achieved Revenue from Operations of Rs.20383.424 millions as compared to Rs.15832.155 millions in the previous year. The profit before tax stood at Rs.1079.079 millions as compared to Rs.1492.416 millions during the previous year. After providing for taxes and other adjustments, the Profit after tax stood at Rs.718.329 millions as compared to Rs.1003.914 millions during the previous year.
SUBSIDIARY COMPANY/FIRM(S)
As at 31.03.2012, the Company has four Subsidiary Company(ies) namely SEL Textiles Limited, Silverline Corporation Limited, Omega Hotels Limited, and SEL Aviation Private Limited and two subsidiary firm(s) namely SE Exports and Kudu Industries. The Company has its branch office at Dubai, United Arab Emirates.
The Annual Accounts of the Subsidiary companies/firms and the related detailed information shall be made available to shareholders of the holding and subsidiary companies seeking such information at any point of time.
Further the Annual Accounts of the subsidiary companies/ firms are kept for inspection by any shareholders in the head office i.e. the Registered Office of the holding company and of the subsidiary companies/firms concerned.
The company continue to hold 99% stake in the partnership firm namely SE Exports. However, the Company has taken over the firm Kudu Industries.
SEL Textiles Limited is the wholly owned Subsidiary of the Company. SEL Textiles Limited is engaged in the business of textiles and the Company has two spinning unit(s) one at Neemrana (Rajasthan) and one at Hansi, Hissar (Haryana), and a terry towel unit at Nawa sheher, Punjab.
SEL Textiles Limited is also setting up a project with spinning capacity of 188160 spindles, denim fabric manufacturing capacity of 40 million meters per annum and around 8 million pieces of denim garments per annum at Village Punjava-Lambi, Tehsil Malout, District Sri Muktsar Sahib (Punjab).
Omega Hotels Limited, subsidiary of the company is presently implementing a hotel project at Agra in the Sate of Uttar Pradesh.
SEL Aviation Private Limited, subsidiary of the company is in the business of aviation services and holds a Non-Scheduled Operator's permit under the Director General of Civil Aviation Rules and Regulations.
SEL Textiles Limited, the wholly owned subsidiary of the company holds the majority stake in Silverline Corporation Limited. Silverline Corporation Limited is in the business of textiles and has acquired a spinning unit at Vadodara (Gujarat).
The Company also acquired majority stake in SEL Ecochem Private Limited in July, 2012 thereby making it the Subsidiary of the Company. SEL Ecochem Private Limited proposes to commence business of chemicals, acids, etc.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT:
Industry Structure and Development
In India the lower global demand, domestic policy uncertainties and the cumulative impact of monetary tightening contributed to growth slowing down. The growth slowdown has been driven by a sharp fall in investment, some moderation in private consumption and fall in net external demand. These, along with a sense of policy ambiguity and legislative uncertainty, have led to significant dampening of business confidence in the country. In the emerging markets economic activity dampened due to many factors. However many advanced economies have made good progress in designing and implementing strong medium term fiscal consolidation programmes. At the same time, emerging and developing economies continue to have the benefit of latent demand in their economies and need to continue with reforms to maintain growth.
The Company is setting up a new project in the state of Madhya Pradesh consisting of spinning unit with a capacity of 571,200 spindles, out of which 1,95,840 spindles have already been installed. The said spinning facility is the largest under one roof in India. Further, the Company also proposes to set up a Open end spinning with capacity of 2040 Rotors and Knitted Fabric/cloth capacity of 72000 TPA.
The company continue to hold 99% stake in the partnership firm namely SE Exports. However the Company has taken over the firm Kudu Industries.
SEL Textiles Limited is the wholly owned Subsidiary of the Company. SEL Textiles Limited is engaged in the business of textiles and the Company has two spinning unit(s) one at Neemrana (Rajasthan) and one at Hansi, Hissar (Haryana), and a terry towel unit at Nawa Sheher Punjab.
SEL Textiles Limited is also setting up a project with spinning capacity of 188160 spindles, denim fabric manufacturing capacity of 40 million meters per annum and around 8 million pieces of denim garments per annum at Village Punjava-Lambi, Tehsil Malout, Dist Sri Muktsar Sahib (Punjab).
Omega Hotels Limited, subsidiary of the company is presently implementing a hotel project at Agra in the Sate of Uttar Pradesh.
SEL Aviation Private Limited, subsidiary of the company is in the business of aviation services and holds a Non-Scheduled Operator's permit under the Director General of Civil Aviation Rules and Regulations.
SEL Textiles Limited, the wholly owned subsidiary of the company holds the majority stake in Silverline Corporation Limited. Silverline Corporation Limited is in the business of textiles and has acquired a spinning unit at Vadodara (Gujarat).
The Company also acquired majority stake in SEL Ecochem Private Limited in July, 2012 thereby making it the Subsidiary of the Company. SEL Ecochem Private Limited proposes to commence the business of chemicals, acids, etc.
Company's Performance
During the year, the company has achieved Revenue from Operations of Rs.20383.424 millions as compared to Rs.15832.155 millions in the previous year. The profit before tax stood at Rs.1079.079 millions as compared to Rs.1492.416 millions during the previous year. After providing for taxes and other adjustments, the Profit after tax stood at Rs.718.329 millions as compared to Rs.1003.914 millions during the previous year.
Segment wise Performance
During FY 2011-12, Yarn Sales grew by 27.50%. The Sales of knitted cloth grew by 17.55%, Terry towel by 106.31% and that of Hosiery Garments by 70.87% respectively. The Company is functioning in only one Reportable Segment i.e. Textiles, hence Segment Reporting required under AS-17 is not applicable.
CONTINGENT LIABILITIES
There are contingent liabilities in respect of the following items: No
outflow is expected in view of the past history relating to these items:-
|
Particulars |
31.03.2012 (Rs. in
millions) |
31.03.2011 (Rs. in
millions) |
|
Export Bills
Discounted |
203.800
|
188.100
|
|
Estimated amount of capital contracts remaining to be executed net of
advances |
2381.100
|
383.300
|
|
Income Tax demand for AY 2005‐06 to AY 2009‐10 (Previous Year AY 2004‐05 to AY 2008‐09) net of deposit of Rs. Nil (Previous year Rs.19.100 millions) against
the said demand, contested in appeals. |
0.000
|
11.600
|
|
Guarantees given by the Company on behalf of SEL Textiles Limited
(Subsidiary Company) |
14875.500
|
3161.500
|
|
Performance Guarantee |
13819.200
|
15347.500
|
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER AND NINE MONTHS PERIOD ENDED DECEMBER 31, 2012
Part I
(Rs. in millions)
|
Sr. No. |
Particulars |
Standalone |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
Quarter Ended |
Year to date |
|||
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
||
|
1 |
Income
from operations |
|
|
|
|
|
a) Net
sales/Income from operation (Net of excise duly) |
7363.734 |
5810.583 |
18782.988 |
|
|
b) Other
operating Income |
0.000 |
0.000 |
0.000 |
|
|
Total Income from operations (net) |
7368.734 |
5810.583 |
18782.988 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost
of material consumed |
3269.024 |
3971.955 |
10743.109 |
|
|
b)
Purchase of stock-In-trade |
800.414 |
607.247 |
1979.253 |
|
|
c) Changes
In inventories of finished goods, work in progress and stock in trade |
773.138 |
641.067 |
43.046 |
|
|
d)
Employee benefits expenses |
370.488 |
35.764 |
924.977 |
|
|
e)
Depredation and amortization expenses |
391.379 |
317.321 |
1004.388 |
|
|
f) Other
expenses |
804.569 |
782.320 |
2165.585 |
|
|
Total expenses |
6409.012 |
5395.140 |
16860.358 |
|
3 |
Profit
from operations before other Income, |
|
|
|
|
|
finance
cost and exceptional items (1-1) |
959.722 |
415.443 |
1922.630 |
|
4 |
Other
income |
124.190 |
510.970 |
876.026 |
|
5 |
Profit
from ordinary activities before finance cost ft exceptional Items (3+4) |
1083.912 |
936.413 |
2/98.656 |
|
6 |
Finance
cost |
743.387 |
661.044 |
1957.317 |
|
7 |
Profit from
ordinary activities after finance cost but exceptional items (5-6) |
340.525 |
275.369 |
841.339 |
|
8 |
Exceptional
Items |
0.000 |
0.000 |
0.000 |
|
9 |
Profit
(+)/ loss (-) from ordinary activities before tax (7±8) |
340.525 |
275.369 |
841.339 |
|
10 |
Tax
Expenses |
62.553 |
145.615 |
283.674 |
|
11 |
Net
Profit (+)/ Loss (-) from ordinary activities after tax (9-10) |
277.972 |
129.754 |
557.665 |
|
12 |
Extraordinary
items (net of tax expenses ) |
0.000 |
0.000 |
0.000 |
|
13 |
Net Profit
(+)/ loss (-) for the period (11±12) |
277.972 |
129.754 |
557.665 |
|
14 |
Paid-up
equity share capital of Rs.10/-each |
3313.470 |
3313.470 |
3313.470 |
|
15 |
Reserves
excluding Revaluation Reserves |
-- |
-- |
-- |
|
16 |
I.
Earning per share (EPS) (before extraordinary items) (In Rs.)
(not annualised) |
|
|
|
|
|
a) Basic |
B-0.83 |
B-0.40 |
B-1.97 |
|
|
b)
Diluted |
D-0.83 |
D-0.40 |
D-1.97 |
|
|
II.
Earning per Share (EPS) (after extraordinary items) (In Rs.)
(not annualised) |
|
|
|
|
|
a) Basic |
B-0.83 |
B-0.40 |
B-1.97 |
|
|
b)
Diluted |
D-0.83 |
D-0.40 |
D-1.97 |
PART-II Select information for the quarter and nine
months period ended December 31, 2012
|
Sr. No. |
Particulars |
Quarter Ended |
Year to date ended |
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
||
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public
Shareholding |
|
|
|
|
|
- No. of
shares |
303617956 |
303617956 |
303617956 |
|
|
-
Percentage of shareholding |
91.63% |
91.63% |
91.63% |
|
2 |
Promoters
and promoter group shareholding |
|
|
|
|
|
a)
Pledge/Encumbered |
|
|
|
|
|
-Number
of shares |
Nil |
Nil |
Nil |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
Nil |
Nil |
Nil |
|
|
b)
Non-encumbered |
|
|
|
|
|
- Number
of shares |
27729044 |
27729044 |
27729044 |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
100.00% |
100.00% |
100.00% |
|
|
-
Percentage of shares (as a % of the total share capital of the company) |
8.37% |
8.37% |
8.37% |
|
B. INVESTOR COMPLAINTS |
3 months
ended 31st
December, 2012 |
|
Pending at the beginning of the Quarter |
0 |
|
Received during the quarter |
7 |
|
Disposed off during the Quarter |
7 |
|
Remaining unresolved at the end of the quarter |
0 |
FIXED ASSETS:
Tangible Assets
· Land
·
· Building
· Road
· Plant and Machinery
· Furniture and Fixtures
· Vehicles
· Office Equipments
Intangible Assets
· Computer Software
WEBSITE DETAILS:
NEWS:
SEL MANUFACTURING ACQUIRES 99.88% STAKE IN OMEGA HOTELS
27th March, 2012
SEL Manufacturing
Company has acquired 99.88% stake in Omega Hotels and 51.09% stake in SEL
Aviation. Pursuant to this acquisition, both Omega Hotels and SEL Aviation has
become the subsidiary company of SEL Manufacturing Company.
Omega
Hotels is implementing a Hotel Project at Agra in the State of Uttar Pradesh
and SEL Aviation is in the business of Aviation Services and holds a
Non-Scheduled Operator's Permit under the Director General of Civil Aviation,
Rules and Regulations.
SEL
Manufacturing Company has over 40 years of experience in the textile industry.
At present, it has facilities for manufacturing cotton yarn, combed yarn,
knitted fabrics, knitted garments and terry towels.
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 exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial Crime
:
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market survey
revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.33 |
|
|
1 |
Rs.83.17 |
|
Euro |
1 |
Rs.71.05 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
4 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
36 |
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.