MIRA
INFORM REPORT
|
Report Date : |
22.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
VTX INDUSTRIES LIMITED (w.e.f. 01.05.2011) |
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Formerly Known
As : |
VIJAYESHWARI TEXTILES LIMITED |
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Registered
Office : |
2/185, Palladam Road, Puliampatti (Via), Pollachi, Coimbatore - 642002
Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
05.09.1953 |
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Com. Reg. No.: |
18-000248 |
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Capital
Investment / Paid-up Capital : |
Rs.181.692
Millions |
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CIN No.: [Company Identification
No.] |
L17111TZ1953PLC000248 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
CMBV03050F |
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PAN No.: [Permanent Account No.] |
AAACV6388F |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Manufacturer and Marketer of Cotton and Polyester Texturised Yarns. |
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No. of Employees
: |
Around 2000 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
B (34) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 4400000 |
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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 an established company having a moderate track record. There
appears huge loss during 2011-2012 recorded by the company. However, trade relations are reported to be fair. Business is active.
Payments are slow but correct. The company can be considered for business dealings with some caution.
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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 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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/ Factory 1 (Spinning Division) : |
2/185, Palladam Road, Puliampatti (Via), Pollachi, Coimbatore - 642002
Tamilnadu, India |
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Tel. No.: |
91-422-2214025/ 2216730 |
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Fax No.: |
91-422-2213488 |
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E-Mail : |
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Websites: |
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Corporate Office/ Factory 2 (Madeups
Division) : |
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Tel. No.: |
91-422-2252661 |
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Fax No.: |
91-422-2251538 |
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Email : |
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Factory 3 (Weaving Division): |
Arakulam, Palladam, Tamilnadu, India |
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Factory 4 (Processing
Division): |
SIPCOT, Industrial Complex, Perundurai, |
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Factory 5 (Madeups Division) : |
Pilchinampalayam, Coimbatore and Palladam Hi-Tech Weaving Park, Palladam, Coimbatore, Tamilnadu, India |
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Branches : |
Link Intime India Private Limited (formerly known as Intime Spectrum Registry Limited) “Surya” 35 May |
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Email : |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. A. L. Ramchandra |
|
Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
52 years |
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Qualification : |
Masters Degree in Microbiology from the California State University, USA |
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Date of Appointment : |
26.06.1996 |
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Other Directorship: |
M/s. Lakshmi Apparels and Wovens Limited M/s. Vijayeswari Exports Limited M/s. Seshraj Apparels Private Limited M/s. Vijayeswari U.K. Limited M/s. Palladam Hi-Tech Weaving Park M/s. The Cotton Textile Export Promotion Council M/s. Lakshmi Functional Textiles Private Limited M/s. L.A.W Textile Park Private Limited |
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Name : |
Mrs. Jayanthi Ramchandra |
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Designation : |
Managing Director |
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Qualification : |
Graduate in Science from the Madras University |
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Experience : |
28 years of extensive experience in textile designing and product
development. |
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Name : |
Mr. V. Dharmaraj |
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Designation : |
Director |
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Name : |
Mr. K Salvaraj |
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Designation : |
Director |
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Date of Birth/Age : |
78 years |
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Qualification : |
Licentiate in Textile Manufacture (LTM) Expertise |
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Date of Appointment : |
23.07.2009 |
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Other Directorship: |
M/s. Ravilla Precision Engineering Private Limited M/s. Lakshmi Technology and Engineering Industries Limited |
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Name : |
Mr. S. Shreenivasa Rao |
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Designation : |
Director |
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Name : |
Mr. Mohan Rao |
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Designation : |
Director |
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Date of Birth/Age : |
59 years |
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Qualification : |
B. Tech., (Textile Technology) from IIT, Delhi. |
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Date of Appointment : |
10.05.2012 |
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Name : |
Mr. J. Balamurugan |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Jaison Thomas |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category
of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
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|
820520 |
4.52 |
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|
7846674 |
43.19 |
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8667194 |
47.70 |
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Total shareholding of Promoter and Promoter Group (A) |
8667194 |
47.70 |
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(B) Public Shareholding |
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|
1501150 |
8.26 |
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1501150 |
8.26 |
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3810653 |
20.97 |
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2230611 |
12.28 |
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1753942 |
9.65 |
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205690 |
1.13 |
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184326 |
1.01 |
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18000 |
0.10 |
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|
2950 |
0.02 |
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|
414 |
0.00 |
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8000896 |
44.04 |
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Total Public shareholding (B) |
9502046 |
52.30 |
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Total (A)+(B) |
18169240 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
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Total (A)+(B)+(C) |
18169240 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer and Marketer of Cotton and Polyester Texturised Yarns. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
|
31.03.2011 |
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Installed
capacity |
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Ring Spindles |
|
53768 |
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Looms |
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98 |
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Processing |
|
30,000 mtr/ day |
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Made ups |
|
5,00,000 Pcs/
Month |
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Production
(Including Outsourcing) |
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Cotton Yarn |
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1412324 Kgs |
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Grey Fabric |
|
3916680 Mtrs |
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Made-ups |
|
2975787 Mtrs |
GENERAL INFORMATION
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No. of Employees : |
Around 2000 (Approximately) |
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Bankers : |
· Andhra Bank · Oriental Bank of Commerce · Indian Overseas Bank · UCO Bank · United Bank of India · Yes Bank |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Suri and Company Chartered Accountants |
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Address : |
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Internal Auditor
: |
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Name : |
Mrs. Sasirekha Vengatesh Chartered Accountant |
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Address : |
Coimbatore, Tamilnadu, India |
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Cost Auditors : |
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Name : |
P. Mohan Kumar and Company Cost Accountants |
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Address : |
Coimbatore, Tamilnadu, India |
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Subsidiaries : |
· Vijayeswari USA LLC · Vijayeswari UK Limited |
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Associates : |
· Lakshmi Apparels and Wovens Limited · Seshraj Apparels Private limited · Seshraj Enterprises Private Limited ·
· KAY Arr Enterprises |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
20000000 |
Equity Shares |
Rs.10/- each |
Rs.200.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
18169240 |
Equity Shares |
Rs.10/- each |
Rs.181.692
Millions |
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Reconciliation of
shares outstanding at the beginning and the end of the reporting period
(Rs. in Millions)
|
Particulars |
No. of Shares |
As at 31.03.2012 |
|
Shares outstanding at the beginning of the year |
18,169,240 |
181.692 |
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Shares Issued during the year |
- |
- |
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Shares bought back during the year |
- |
- |
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Any other movement (please specify) |
- |
- |
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Shares outstanding at the end of the year |
18,169,240 |
181.692 |
The terms/ rights
attached to Equity Shares:
The company has only one class of Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.
During the year ended 31st March, 2012, the amount of per share dividend recognized as distributions to equity shareholders was Nil (31st March, 2011: Rs. 0.60)
In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.
Aggregate number of
bonus shares issued, for consideration other than cash and shares bought back
during the period of five years immediately preceding the reporting date
|
Particulars |
Aggregate No. of
Shares (for last 5 Financial Years) |
|
Equity shares: |
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Fully paid up pursuant to contract(s) without |
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payment being made in cash |
NIL |
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Fully paid up by way of bonus shares by |
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capitalization of securities premium |
NIL |
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Shares bought back |
NIL |
Details of
Shareholders holding more than 5% shares in the company
|
Name of Shareholder |
As at 31.03.2012 |
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No. of Shares held |
% of Holding |
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||
|
Seshraj Enterprises Private Limited |
7,846,674 |
43.19 |
|
IDBI Capital Market Services Limited |
2,992,850 |
16.47 |
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 |
181.692 |
181.692 |
181.692 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
919.648 |
1181.955 |
1123.231 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
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NETWORTH |
1101.340 |
1363.647 |
1304.923 |
|
|
LOAN FUNDS |
|
|
|
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|
1] Secured Loans |
2306.382 |
2453.288 |
2637.796 |
|
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2] Unsecured Loans |
41.386 |
0.000 |
0.101 |
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TOTAL BORROWING |
2347.768 |
2453.288 |
2637.897 |
|
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DEFERRED TAX LIABILITIES |
0.000 |
38.230 |
26.744 |
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|
|
|
|
|
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TOTAL |
3449.108 |
3855.165 |
3969.564 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
2103.252 |
2213.275 |
1307.679 |
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Capital work-in-progress |
0.000 |
0.000 |
610.191 |
|
|
Preoperative Expenses Pending Capitalization |
0.000 |
0.000 |
113.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.653 |
0.121 |
73.921 |
|
|
DEFERREX TAX ASSETS |
36.361 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1252.424
|
1185.028 |
937.956
|
|
|
Sundry Debtors |
483.225
|
487.346 |
370.606
|
|
|
Cash & Bank Balances |
1.631
|
19.053 |
234.500
|
|
|
Other Current Assets |
143.817
|
155.417 |
119.583
|
|
|
Loans & Advances |
130.313
|
309.106 |
408.621 |
|
Total
Current Assets |
2011.410
|
2155.950 |
2071.266 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
197.644
|
154.440 |
209.880
|
|
|
Other Current Liabilities |
480.867
|
330.265 |
49.112
|
|
|
Provisions |
24.057
|
29.476 |
14.284
|
|
Total
Current Liabilities |
702.568
|
514.181 |
273.276 |
|
|
Net Current Assets |
1308.842
|
1641.769 |
1797.990
|
|
|
|
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|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
65.983 |
|
|
|
|
|
|
|
|
TOTAL |
3449.108 |
3855.165 |
3969.564 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
1890.072 |
1649.741 |
1132.691 |
|
|
|
Other Income |
23.612 |
18.873 |
20.423 |
|
|
|
TOTAL (A) |
1913.684 |
1668.614 |
1153.114 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1048.363 |
573.920 |
927.046 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
-478.673 |
-252.790 |
|
|
|
|
Employee benefits expense |
208.185 |
190.313 |
|
|
|
|
Other expenses |
717.287 |
727.566 |
|
|
|
|
Extraordinary item |
223.381 |
0.000 |
|
|
|
|
TOTAL (B) |
1718.543 |
1239.009 |
927.046 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
195.141 |
429.605 |
226.068 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
348.002 |
203.426 |
125.599 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(152.861) |
226.179 |
100.469 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
184.029 |
141.668 |
54.763 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(336.891) |
84.510 |
45.706 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(74.582) |
13.116 |
9.478 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(262.308) |
71.394 |
36.228 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
58.724 |
0.000 |
(81.938) |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
(56.304) |
|
|
|
Dividend |
0.000 |
10.902 |
9.085 |
|
|
|
Corporate Tax on Dividend |
0.000 |
1.768 |
1.509 |
|
|
BALANCE CARRIED
TO THE B/S |
(203.584) |
58.724 |
0.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
1696.579 |
1138.501 |
0.000 |
|
|
|
Cotton Yarn |
0.000 |
0.000 |
2.747 |
|
|
|
Grey Fabrics |
0.000 |
0.000 |
2.121 |
|
|
|
Madeups |
0.000 |
0.000 |
939.716 |
|
|
TOTAL EARNINGS |
1696.579 |
1138.501 |
944.584 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
9.934 |
74.561 |
32.433 |
|
|
|
Stores & Spares |
30.528 |
3.050 |
5.376 |
|
|
|
Capital Goods |
22.794 |
0.000 |
111.507 |
|
|
TOTAL IMPORTS |
63.256 |
77.611 |
149.316 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share before extraordinary item (Rs.) |
(2.14) |
3.93 |
1.99 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share after extraordinary item (Rs.) |
(14.44) |
3.93 |
1.99 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
490.200 |
596.600 |
563.000 |
|
Total Expenditure |
326.100 |
424.000 |
387.500 |
|
PBIDT (Excl OI) |
164.100 |
172.600 |
175.500 |
|
Other Income |
04.300 |
17.200 |
1.800 |
|
Operating Profit |
168.400 |
189.800 |
177.300 |
|
Interest |
101.200 |
112.500 |
104.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
67.300 |
77.300 |
72.500 |
|
Depreciation |
60.500 |
53.900 |
55.900 |
|
Profit Before Tax |
6.700 |
23.400 |
16.600 |
|
Tax |
1.300 |
8.000 |
4.500 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
5.500 |
15.400 |
12.100 |
|
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 |
5.500 |
15.400 |
12.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(13.71)
|
4.28 |
3.14 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(17.82)
|
5.13 |
4.04 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.19)
|
1.93 |
1.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.31)
|
0.06 |
0.04 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.13
|
1.80 |
2.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.86
|
4.19 |
7.58 |
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
No |
REVIEW OF OPERATIONS:
During the financial year, the turnover of the company has increased to Rs. 1890.072 Millions from Rs. 1649.741 Millions in the corresponding previous financial year, registering a growth rate of 14.56%. The company has posted a net loss of Rs. 262.308 Millions for the financial year ended 31st March, 2012, which was mainly incurred on account of sales of redundant export stocks in the domestic
Market at discounted price. The Company has been catering the international markets for the made-ups and the final products manufactured for international markets were never disposed in the domestic market as those products were based on the specific order and approved design of the customers. The rejection of the approved
design, excess production against the order etc. were kept in the stocks and the same was not converted to cash awaiting better realization price. During the year, these stocks were disposed in the domestic market at price lower than international rate for bringing the cash flow.
The Company has taken various cost effective methods resulting in better economies of production and purchases throughout the financial year.
The company has continued to broad base the existing customer relationships in US and UK markets and these relationships spread over many long years showcase their ability in customer satisfaction and reliability. The Company emphasizes to create a network of buying houses, major retail outlets and commission agents and also develops the brand building exercise both internationally and domestically. The Indian economy showed a remarkable resilience in the aftermath of global economic slowdown in previous years. The Company could secure good orders from international as well as domestic markets.
In the external scenario, the textile market witnessed unprecedented increase in cotton prices which had cascading effect on the entire supply chain, resulting instability in the price of the final products of the Company. The cost of production was high due to lower utilisation, increase in the interest rate of the term loan and working capital facilities availed from the Banks. The Company was unable to run spinning and weaving units in its full capacity due to frequent power cuts. In order to execute the orders in time, some portion of the yarn and fabric were outsourced during the year.
During the year, the design division of the Company was hived off by incorporating a new entity viz. M/s. VTX Design Services Private Limited. for providing exclusive design services to parent and other textile companies.
This entity shall develop new creative designs and patterns which meet the latest trends of the customers worldwide.
MILE STONES
The Company has achieved another milestone by winning the “Five Star Supplier Award” awarded by Macy’s Merchandising Group for 13th consecutive year, in recognition of its continued outstanding service to Macy’s Merchandising Group. The Company is the only Company achieves this mammoth feet in the entire Asian region.
FUTURE
The growth and future of Indian textile industry depends upon various factors such as availability of raw material at reasonable rate, uninterrupted power supply, availability of manpower at competitive cost, foreign exchange fluctuation etc. However, the level of exports in textiles from developing countries is increasing even if in the presence of high tariffs and quantitative restrictions by economically developed countries. The Company has planned to enter into the domestic market to increase the utilisation of the various multi-location plants.
The future of the Company’s performance looks very promising since the project expansion programme of the company successfully completed during last year and with increased production capacity, the company is in a
position to meet its international as well as domestic orders in time.
The Company progressively entered into hospitality segment comprising hotels and hospitals both in India and aboard. The responses and enquires received in various domestic textile fairs participated by Company, from hospital and hospitality customers, are positive and gives a boost to increase its foothold in the domestic market. The company enters into new international markets like South Africa, Brazil, Argentina, Australia, Japan, France etc. and it is expected to make consistent growth of the business in the coming years.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
Industry Structure
and Developments
Textile Industry
In the fiscal year 2011-12, the Indian textile industry has shown tremendous resilience and tried to overcome the adverse circumstances prevailing in most of 2011 to the best of its abilities and marched ahead to become one of
the largest suppliers of the textile goods in the world. The year 2011-12 began with the removal of restrictions on exports of cotton and cotton yarn. However, the temporary suspension of yarn exports that prevailed during the period January to March 2011 took its toll in the form of a sharp decline in exports during first six months of the fiscal year.
The Textile Industry in general was upbeat on the measures announced in the Union Budget 2012-13. The exemption of Customs duty on automatic shuttleless looms will certainly give a boost to the modernization efforts of the textileindustry in the weaving sector and the increase in the abatement rate for branded garments will have positive impact on the textile industry and will help India to emerge as a vibrant hub for fabric production in south Asia.
The western countries are now setting up their manufacturing units in India which single handedly opens up a wide array of possibilities for all the stakeholders within the textile industry. Experts believe that the golden era of
Chinese textile and apparel exports is over andthe production base of global textiles is gradually shifting from China to India, Pakistan and other low cost destinations.
The Indian Textile Industry is likely to grow by 16% this year and could reach US $115 Billion by 2012 end, according to the reports. The Indian Textile and Clothing Industry is one of the most important industries to the Indian economy in terms of output, foreign exchange earnings and providing employment. This industry contributes 4 % to the country’s GDP, about 14% to the total industrial production and around 17% of India’s foreign exchange earnings. It provides direct employment to over 35 million people and is the second largest provider of employment after agriculture.
Threats to the
Company
Due to increase in competition globally as well as domestically, there arises need to follow the austere measures in the operational side and the shift of focus would be more on striving for continuous improvement in quality aspects of the products. This would help the company to strengthen its competitiveness in the global arena particularly against the big players in the market. The Company is slowly shifting its focus to newer international markets.
The fluctuation in forex market poses a threat to the Company due to its large dependence on US and EU customers and the availability of raw material at a reasonable price is also one of the concerns for the Company. In order to safeguard from forex fluctuation, the company depends upon the Forward Cover. Sudden spurt in yarn prices, non availability of raw material at reasonable prices and unfavorable government policies affecting the procurement of raw material, are also considered as possible future threats to the Company.
CONTINGENT LIABILITY
AS ON 31.03.2012
(Rs. in Millions)
|
Sr. No. |
Particulars |
31-03-2012 |
|
i) |
Bank Guarantees |
483.500 |
|
ii) |
Disputed Income tax Demands (Paid out of the |
|
|
|
Above Rs. 578.400 Millions (Previous year Rs. 1278.500 Millions) |
578.400 |
FIXED ASSETS:
· Land
·
· Building
· Plant and Machinery
· Furniture and Fittings
· Office Equipments
· Vehicles
· Canteen Vessels
· Computer Equipments
· Wind Farm
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.54.03 |
|
|
1 |
Rs.82.43 |
|
Euro |
1 |
Rs.70.49 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--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 |
|
34 |
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.