MIRA INFORM REPORT
|
Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
|
Name : |
LOYAL TEXTILE MILLS LIMITED |
|
|
|
|
Registered
Office : |
21/4, Mill Street, Kovilpatti-628501, Tamilnadu |
|
|
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|
Country : |
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|
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|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
09.04.1946 |
|
|
|
|
Com. Reg. No.: |
18-001361 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 48.200 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TN1946PLC001361 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MRIL00006G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Manufacturer of Cotton Textile Mills, Readymade Garments, Finished
Fabrics, Grey Fabrics, and Yarn. |
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|
|
|
No. of Employees
: |
4271 (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 4350000 |
|
|
|
|
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 sharp dip in sales turnover and incurred some loss during
2011-2012. The external borrowing appears to be huge. However, 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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB- (Long Term Bank Facilities) |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of
financial obligation it carry moderate credit risk |
|
Date |
April 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A3 (Short Term Bank Facilities) |
|
Rating Explanation |
Moderate degree of safety regarding timely payment of financial
obligation it carry higher credit risk |
|
Date |
April 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office / Factory : |
21/4, Mill Street, Kovilpatti-628501, Tamilnadu, India |
|
Tel. No.: |
91-4632-220001 / 28535111 / 4375 / 28588284 |
|
Fax No.: |
91-44-2853 3852 |
|
E-Mail : |
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|
Website : |
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|
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|
Plant locations : |
Spinning, Knitting,
Weaving and Garments
- 524 221.
Processing :
|
DIRECTORS
As on 11.05.2012
|
Name : |
Mr. Manikam Ramaswami |
|
Designation : |
Chairman and Managing Director |
|
Address : |
|
|
Date of Birth/Age : |
20.11.1953 |
|
Qualification : |
B. Tech. |
|
Date of Appointment : |
01.06.2008 |
|
DIN No.: |
00049630 |
|
|
|
|
Name : |
Mr. Karangalpadi Jathindra Mohan Shetty (I.A.S. – Retd.) |
|
Designation : |
Director |
|
Address : |
F-88, Anna Nagar East, Chennai-600102, Tamil Nadu, India |
|
Date of Birth/Age : |
03.03.1934 |
|
Date of Appointment : |
21.06.2002 |
|
DIN No.: |
00033296 |
|
|
|
|
Name : |
Mr. S. Venkataramani |
|
Designation : |
Director |
|
Address : |
No.16, Venkateshwarnagar, III Street, Adyar, Chennai-600020, Tamil
Nadu, India |
|
Date of Birth/Age : |
05.10.1942 |
|
Date of Appointment : |
29.10.2004 |
|
DIN No.: |
00053043 |
|
|
|
|
Name : |
Mr. R. Poornalinggam (I.A.S. – Retd.) |
|
Designation : |
Additional Director |
|
Address : |
No.10, 1st Cross Street, Indira Nagar, Chnnai-600020, Tamil
Nadu, India |
|
Date of Birth/Age : |
15.11.1945 |
|
Date of Appointment : |
27.10.2006 |
|
DIN No.: |
00955742 |
|
|
|
|
Name : |
Mr. Shridhar Subramanyam |
|
Designation : |
Director |
|
Address : |
Flat No.106, Olympus III, Prestige Acropolis, 20, Hosur Road,
Banglore-560029, Karnataka, India |
|
Date of Birth/Age : |
21.02.1939 |
|
Date of Appointment : |
23.05.2007 |
|
DIN No.: |
01780475 |
|
|
|
|
Name : |
Mr. P. Manivannan |
|
Designation : |
Whole-time Director |
|
Address : |
3 G, Kala Apartments, No.02, Karunanithi Street, West Mambalam,
Chennai-600033, Tamil Nadu, India |
|
Date of Birth/Age : |
23.06.1961 |
|
Date of Appointment : |
01.11.2011 |
|
DIN No.: |
00366954 |
|
|
|
|
Name : |
Mr. Madhavan Nambiar I.A.S. (Retd.) |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Shiva Prasad Padhy |
|
Designation : |
Company Secretary |
|
Address : |
No. 83, (Old No. 41) First Main Road, R A Puram, Chennai – 600 028,
Tamilnadu, India |
|
Tel No.: |
91-44-42277374 |
|
Fax No.: |
91-44-43060622 |
SHAREHOLDING PATTERN
As on 31.03.2013
|
Category of Shareholder |
No. of Shares |
% of No. of Shares
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
196017 |
4.07 |
|
|
3343828 |
69.43 |
|
|
3539845 |
73.49 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3539845 |
73.49 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
5200 |
0.11 |
|
|
5200 |
0.11 |
|
|
|
|
|
|
181596 |
3.77 |
|
|
|
|
|
|
781316 |
16.22 |
|
|
271981 |
5.65 |
|
|
36508 |
0.76 |
|
|
36508 |
0.76 |
|
|
1271401 |
26.40 |
|
Total Public shareholding (B) |
1276601 |
26.51 |
|
Total (A)+(B) |
4816446 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
4816446 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Cotton Textile Mills, Readymade Garments, Finished Fabrics,
Grey Fabrics, and Yarn. |
||||
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Products : |
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||||
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PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
|
Ring Spindles |
Nos. |
154973 |
|
Rotors |
Nos. |
4080 |
|
Automatic Looms |
Nos. |
250 |
|
Cloth Processing |
Mtrs. |
14400000 |
|
Hosiery Processing |
Kgs. |
6400000 |
|
Sewing Machines |
Nos. |
850 |
|
Knitting Machines |
Nos. |
126 |
ACTUAL PRODUCTION:
|
Particulars |
Unit |
Actual
Production |
|
Yarn (4485440 Kgs. manufactured by outsiders) (previous year
4221839.41 kgs.) of which 10350.80 kgs. were processed (previous year
11317.10 kgs.) |
Kgs. |
22514 |
|
Cloth net of shrinkage (566415 metree manufactured by outsiders) (previous
year 2184279.00 mtrs) of which 3483773.80 mtrs. were processed. (previous
year 3371446.70 mtrs.) |
Mtrs. |
28815 |
|
Hosiery cloth (including produced by others) of which 769918.28 kgs.
were processed (Previous year 567567.25 kgs.) |
Kgs. |
12009 |
GENERAL INFORMATION
|
No. of Employees : |
4271 (Approximately) |
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Bankers : |
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Facilities : |
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|
|
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Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Suri and Company Chartered Accountants |
|
Address : |
Chennai, Tamilnadu, India |
|
|
|
|
Name : |
Mr. V. Balasubramanian Cost Auditor |
|
|
|
|
Joint Venture
Company: |
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|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs. 10/- each |
Rs. 90.000 millions |
|
600000 |
Redeemable Cumulative Preference Shares |
Rs. 100/- each |
Rs. 60.000 millions |
|
|
|
|
|
|
|
TOTAL |
|
Rs. 150.000
millions |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
4816446 |
Equity Shares |
Rs. 10/- each |
Rs. 48.200
millions |
|
|
|
|
|
NOTES:
RECONCILIATION OF
NUMBER OF EQUITY SHARES OUTSTANDING AT THE BEGINNING AND AT THE END OF THE YEAR
|
Number of Shares outstanding as the beginning of the year |
47,03,946 |
|
ADD: Number of Shares allotted during the year fully paid - up pursuant to a scheme of Amalgamation with "Sri Chintamani Textiles Mills
Limited |
112500 |
|
Number of Shares outstanding as the end of the year |
48,16,446 |
SHARES IN THE
COMPANY HELD BY EACH SHARE HOLDING MORE THAN 5% SHARES
|
Sr. No |
Name of the Share holder |
Number of shares
held in the Company |
|
1 |
Madurai Tara
Traders Private Limited
|
776887 |
|
2 |
Felspar credit
and investment Private Limited |
661126 |
|
3 |
Dhanalakshmi
Investment Private Limited
|
346887 |
|
4 |
Kurunji Investments
Private Limited
|
346887 |
|
5 |
Chintamani
Investments Private Limited
|
279220 |
DETAILS OF ALLOTMENT
OF SHARES FOR CONSIDERATION OTHER THAN CASH, ALLOTMENTS OF BONUS SHARES AND
SHARES BOUGHT BACK (DURING THE PERIOD OF FIVE YEARS FROM 2007)
|
Particulars |
Amount |
|
Allotment of
shares as fully paid-up pursuant to
Contracts without payments being received in cash |
11 |
112500 Equity
Shares of Rs. 10 each fully paid up alloted on 27-05-2011 pursuant to a Scheme
of Amalgamation of "Shri Chintamani Textile Mills Limited"
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 |
48.200 |
48.200 |
47.040 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1040.600 |
1065.600 |
789.170 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1088.800 |
1113.800 |
836.210 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
6640.000 |
6269.600 |
3574.949 |
|
|
2] Unsecured Loans |
2.200 |
2.800 |
2.711 |
|
|
TOTAL BORROWING |
6642.200 |
6272.400 |
3577.660 |
|
|
DEFERRED TAX LIABILITIES |
293.700 |
318.200 |
231.160 |
|
|
|
|
|
|
|
|
TOTAL |
8024.700 |
7704.400 |
4645.030 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4822.200 |
3827.300 |
2650.079 |
|
|
Capital work-in-progress |
410.300 |
388.800 |
12.794 |
|
|
|
|
|
|
|
|
INVESTMENT |
62.500 |
35.800 |
18.019 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1351.000
|
2305.600 |
1110.203
|
|
|
Sundry Debtors |
821.900
|
752.300 |
671.415
|
|
|
Cash & Bank Balances |
328.000
|
188.300 |
30.950
|
|
|
Other Current Assets |
1297.500
|
1406.700 |
96.023
|
|
|
Loans & Advances |
123.100
|
290.600 |
534.923
|
|
Total
Current Assets |
3921.500
|
4943.500 |
2443.514 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
401.900
|
684.700 |
449.416
|
|
|
Other Current Liabilities |
494.500
|
468.300 |
4.686
|
|
|
Provisions |
295.400
|
338.000 |
25.274
|
|
Total
Current Liabilities |
1191.800
|
1491.000 |
479.376 |
|
|
Net Current Assets |
2729.700
|
3452.500 |
1964.138 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8024.700 |
7704.400 |
4645.030 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
9105.900 |
9624.500 |
4440.834 |
|
|
|
Other Income |
108.100 |
147.200 |
194.326 |
|
|
|
TOTAL (A) |
9214.000 |
9771.700 |
4635.160 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material
consumed |
3990.800 |
4398.100 |
|
|
|
|
Purchase of
stock in trade |
1653.400 |
2365.400 |
|
|
|
|
Changes in
inventories of Finished Goods work in progress and stock in trade |
281.100 |
(544.900) |
|
|
|
|
Employee
benefits expenses |
469.700 |
435.600 |
|
|
|
|
Other expenses |
1743.600 |
1818.500 |
|
|
|
|
TOTAL (B) |
8138.600 |
8472.700 |
3945.312 |
|
|
|
|
|
|
|
|
Less |
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1075.400 |
1299.000 |
689.848 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
480.300 |
260.500 |
211.318 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
595.100 |
1038.500 |
478.530 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
662.100 |
503.900 |
448.606 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G) |
(67.000) |
534.600 |
29.924 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
(47.600) |
221.000 |
10.252 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-I) (J) |
(19.400) |
313.600 |
19.672 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
1.216 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
NA |
2.000 |
|
|
|
Proposed divided on equity shares |
NA |
NA |
14.112 |
|
|
|
Provision for tax on distributed profits |
NA |
NA |
2.344 |
|
|
|
Interim Dividend |
NA |
NA |
0.000 |
|
|
|
Dividend Distribution tax |
NA |
NA |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
1.216 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Calculated on FOB Basis |
6767.500 |
7440.000 |
0.000 |
|
|
|
Dividend received |
4.200 |
1.900 |
0.000 |
|
|
|
Export Earnings |
0.000 |
0.000 |
2810.101 |
|
|
TOTAL EARNINGS |
6771.700 |
7441.900 |
2810.101 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
87.000 |
11.200 |
420.318 |
|
|
|
Stores & Spares |
95.500 |
19.800 |
28.563 |
|
|
|
Capital Goods |
506.300 |
431.200 |
82.521 |
|
|
TOTAL IMPORTS |
688.800 |
462.200 |
531.402 |
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss)
Per Share (Rs.) |
(4.03) |
65.12 |
4.18 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
2607.300 |
2875.700 |
3008.200 |
|
Total Expenditure |
2304.700 |
2545.100 |
2662.100 |
|
PBIDT (Excl OI) |
302.600 |
330.600 |
346.100 |
|
Other Income |
10.900 |
22.500 |
19.300 |
|
Operating Profit |
313.500 |
353.100 |
365.400 |
|
Interest |
146.300 |
146.000 |
164.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
167.200 |
207.100 |
201.200 |
|
Depreciation |
179.400 |
149.200 |
169.300 |
|
Profit Before Tax |
(12.200) |
57.900 |
31.900 |
|
Tax |
(4.600) |
19.700 |
19.200 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(7.700) |
38.200 |
12.700 |
|
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 |
(7.700) |
38.200 |
12.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(0.21)
|
3.20 |
0.42
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.73)
|
5.55 |
0.67
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.76)
|
6.09 |
0.59
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.06)
|
0.47 |
0.04
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
6.10
|
5.63 |
4.28
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.29
|
3.31 |
5.10
|
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 |
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 |
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 |
Yes |
DETAILS OF
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Fixed Deposits |
2.200 |
2.800 |
|
Total |
2.200 |
2.800 |
PERFORMANCE REVIEW,
MANAGEMENT DISCUSSION, ANALYSIS REPORT AND OUTLOOK FOR THE CURRENT YEAR:
The year 2011 -2012
was an extremely challenging year, especially for textile mills in South India.
Last year's
government decision to first ban cotton and later yarn had destroyed demand due
to huge price increase that happened while the export ban was in force in the
International markets. The ban ensured that Indian mills did not benefit from
the high prices but were severely impacted when prices crashed to 50% level
post lifting of the ban.
When trading
conditions slowly returned to normal from the impact of Indian governments
inexplicable actions. Both Tamilnadu and Andhra Pradesh where they have their
units faced severe power problems and the mills were badly impacted.
35% power shortage
in Tamilnadu resulted in almost 90% shortage to mills and industries in South
and West Tamilnadu due to TNEBs discrimination. Units in and around Chennai,
Cement, Steel, Flour mills and a few others managed to get themselves exempt
from the severe power restrictions. This large scale discrimination resulted in
others bearing nearly 90% power cuts.
In Andhra Pradesh
too the power situation was bad with upto 3 days power holidays per week
besides peak hour restrictions.
As a result of
adverse trading conditions during the first half and severe power constraints later
they were forced to incur net loss.
The steep increase
in interest costs, disallowance of TUF rebate for investments made during the
shadow period when the government was contemplating of the extension of TUF etc
steeply increased their Interest burden.
Their efforts to
get a dedicated line to kovilpatti unit which was suffering over 10 hours of
power outage every day being linked to Kovilpatti town feeder fructified only
in June. They have invested over 60.000 millions for the same. In the coming months
thanks to their dedicated feeder they will be able to get continuous power to
the extent that they generate using their wind mills and third party purchase.
They have
augmented their power supply position to take their own power to 80% of their
requirement by additional investment in wind mills and purchase of power, as
two of their 3 units in Tamilnadu have dedicated feeders.
Working is going
on to create a new substation near their third unit, once the substation gets
commissioned, they will be able to lay a dedicated line to their third unit as
well.
India despite its
various infrastructural and policy issues is fast emerging as the most
competitive destination for yarns and grey fabric, the few aberrations in draw
back affecting fabric exports are expected to be corrected in this years draw
back policy. They expect a normal year with reasonable net profits as they have
taken adequate measures to overcome last year's issues.
The turnover
dropped marginally to Rs. 9106.000 Millions due to lower per unit realisation
and power constraints in spite of commissioning their new unit.
Cash generation
during the year was Rs. 595.100 Millions Repayments made Rs. 394.300 Millions
capital investments made Rs. 1638.500 Millions and loans availed Rs. 983.600 Millions.
They were able to
tighten the receivables and keep a tight control over inventories during the
year which helped in improved cash flow.
As they have
little capital work in progress and no new projects except the 2 wind mills
they expect to have a comfortable cash flow situation and will be able to bring
down their borrowings especially the non TUF portion during this year.
They enjoyed
excellent industrial relation at all their units and the employee strength
stands at 4271.
Dividends, as they
have sufficient carry forward in their profit and loss account even though they
have incurred a net loss, it is proposed to declare a dividend of 10%.
FINANCE:
During the year,
the Company availed term loans to the tune of Rs. 983.600 Millions and repaid
loans to the extent of Rs. 408.300 Millions to Banks/ Financial institutions.
CONTINGENT LIABILITIES:
(To the extent not
provided for)
(Rs. In Millions)
|
Particulars |
31.03.2012 |
|
Claim against the Company not acknowledged as debts |
2.900 |
|
Counter Guarantee given to Banks |
59.500 |
|
On Account of Bill discounted |
466.600 |
|
Disputed income tax demand not provided for-Appeals filed before
Appellate Authorities are pending
|
- |
|
Disputed Sales tax demand not provided for |
3.500 |
|
Disputed Service tax not provided for |
11.100 |
|
On account of export obligation covered by letter of undertaking |
470.300 |
FIXED ASSETS:
·
Land
·
Buildings
·
Furniture
·
Plant and Machinery
·
Vehicles
·
Office and Equipment
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. 54.29 |
|
|
1 |
Rs. 83.88 |
|
Euro |
1 |
Rs. 70.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
UDS |
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.