MIRA
INFORM REPORT
|
Report Date : |
13.12.2013 |
IDENTIFICATION DETAILS
|
Name : |
ALOK INDUSTRIES LIMITED |
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Registered
Office : |
17/5/1, 521/1,
Village Rakholi, Saily, Silvassa – 396 230, Union Territory of Dadra and
Nagar Haveli |
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Country : |
India |
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Financials (as
on) : |
30.09.2013 |
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Date of
Incorporation : |
12.03.1986 |
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Com. Reg. No.: |
54-000334 |
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Capital
Investment / Paid-up Capital : |
Rs.13771.300
Millions |
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CIN No.: [Company Identification
No.] |
L17110DN1986PLC000334 |
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TAN No.: [Tax Deduction & Collection
Account No.] |
MUMA02206B /
MUMA19032G |
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PAN No.: [Permanent Account No.] |
AAACA0201C |
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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 Textile products. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (46) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 200000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record.
The management of the company has changed its financial year from 12 months
to 18 Months ranging from 12.03.2012 to 30.09.2013. The company is performing
well. However, the ratings takes into account the moderation in liquidity
position on account of increase in receivables. Trade relations are reported as fair. Business is active. Payments are
reported to be usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross domestic
product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social responsibility
in the coming years.
The International
Finance Corporation expects to come out with its rupee linked bonds issue
before the end of 2013 as a part of its plan to raise $ 1 billion. The Apple
iPhone 5c (Rs 41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has
been launched in India from 1st November.
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB (Long Term Bank Facilities) [Revised
from ‘A’] |
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Rating Explanation |
Moderate degree of safety it carry moderate
credit risk. |
|
Date |
07.10.2013 |
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Rating Agency Name |
CARE |
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Rating |
A3 (Short Term Bank Facilities) [Revised
from ‘A1’] |
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Rating Explanation |
Moderate degree of safety it carry higher
credit risk. |
|
Date |
07.10.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (EMPLOYEE PROVIDENT FUND) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
Management Non Cooperative. (91-22-61787000)
LOCATIONS
|
Registered Office : |
17/5/1, 521/1,
Village Rakholi, Saily, Silvassa – 396 230, Dadra and Nagar Haveli,
India |
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Tel. No.: |
91-260-3087000 |
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Fax No.: |
91-260-2645289 |
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E-Mail : |
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Website : |
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Corporate Office : |
Tower B, 2nd and 3rd Floor, Peninsula Tower ‘A’
Wing, Peninsula Corporate Park, G.K. Marg, Lower Parel, Mumbai – 400 013,
Maharashtra, India |
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Tel. No. : |
91-22-24996200/ 6500 |
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Fax No.: |
91-22-24936078 |
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E-Mail : |
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Factory 1 : |
B-43, Mittal Tower, Nariman Point, Mumbai – 400 021,
Maharashtra, India |
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Tel. No.: |
91-22-22874865/ 22832923/ 24940129/ 22845233/ 22881279/ 22832923 |
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Fax No.: |
91-22-22874864/ 24936078 |
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E-Mail : |
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Works : |
Spinning 412, Saily,
Silvassa, Dadra and Nagar Haveli, India Weaving a) 17/5/1 and
521/1, Rakholi / Saily, Silvassa, Dadra and Nagar Haveli, India b) 209/1 and 209/4,
Dadra, of Dadra and Nagar Haveli, India c) Babla
Compound, Processing a) 254, 261, 268,
Balitha, Taluka Pardi, District Valsad, b) C-16/2,
Village Pawane, TTC Industrial Area, MIDC, Navi Mumbai District Thane, Knitting 412, Saily,
Silvassa, Dadra and Nagar Haveli, Hemming 103/2, Rakholi,
Silvassa, of Dadra and Nagar Haveli, India Polyester Yarn (POY and Texturised Yarn) 521/1, Village
Saily, Silvassa, Dadra and Nagar Haveli, India Garments a) 374/2/2,
Saily, Silvassa Khanvel Road, Dadra and Nagar Haveli, India b) 17/5/1,
Rakholi, Silvassa, Dadra and Nagar Haveli, India c) 273/1/1,
Hingraj Industrial Estate, Atiawad, d) 50/P2, 52/P1, Morai, Taluka Pardi, District Valsad, Gujarat, India Made ups a) 374/2/2,
Saily, Silvassa Khanvel Road, Dadra and Nagar Haveli, India b) 149/150, Morai
Taluka, Pardi, District Valsad, Home Textiles Bed Linen a) 374/2/2, Saily,
Silvassa, Dadra and Nagar Haveli, India b) 149/150, Morai
Taluka, Pardi, District Valsad, Gujarat, India Terry Towel 263/P1 and
251/2P1 Balitha, Taluka Pardi, District Valsad, Poy/ Texturing 521/1, Saily, Silvassa, Union Territory of Dadra and Nagar Haveli, India Hamming 103/2, Rakholi, Silvassa, Union Territory of Dadra and
Nagar Haveli, India Continuous Polymerization Plant 17/5/1 and 521/1, Rakholi / Saily, Silvassa, Union Territory of Dadra and Nagar Haveli, India Terry Towel Unit 263/P1 and
251/2P1 Balitha, Taluka Pardi, District Valsad, Gujarat, India Packaging Units 87/1 and 96/1 Village Falandi, Silvassa Union Territory of Dadra and Nagar Haveli, India |
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Branch Office : |
177, Alok House, Sant Nagar, East of Kailash, |
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Marketing Offices (Domestic) : |
Located at: · Delhi · Bangalore · Chennai |
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Marketing Offices (Overseas) : |
Located at: · Sri Lanka · Bangladesh · China · U.S.A. – Dailas · U.S.A. – New York · Czech Republic · British Virgin Islands · Dubai |
DIRECTORS
As on: 30.09.2013
|
Name : |
Mr. Ashok
Bhagirathmal Jiwrajka |
|
Designation : |
Whole-time director |
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Address : |
301, Krishan
Kunj, |
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Date of
Birth/Age : |
07.10.1950 |
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Qualification : |
Commerce Graduate |
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Date of Appointment : |
12.03.1986 |
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DIN No : |
00168350 |
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Name : |
Mr. Dilip Bhagirathmal
Jiwrajka |
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Designation : |
Managing Director
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Address : |
6, Bay View, |
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Date of
Birth/Age : |
09.10.1956 |
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Date of Appointment : |
12.03.1986 |
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DIN No : |
00173476 |
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Name : |
Mr. Surendra Bhagirathmal Jiwrajka |
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Designation : |
Whole-time director |
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Address : |
Flat No.901, |
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Date of
Birth/Age : |
17.10.1958 |
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Date of Appointment : |
12.03.1986 |
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DIN No : |
00173525 |
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Name : |
Mr. Chandrakumar
Govindram Bubna |
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Designation : |
Executive
Director |
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Address : |
124/5, Krishna
Kunj, Sainik Farm, Central Avenue, New Delhi – 110062, India |
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Date of Birth/Age : |
15.01.1953 |
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Date of Appointment : |
27.05.1993 |
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Name : |
Mr. Ashok Girdharidas Rajani |
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Designation : |
Director |
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Address : |
101/102, Read
Rose Apartments, Pochkhanwala, Road, Mumbai-400018, |
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Date of Birth/Age : |
15.01.1953 |
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Qualification: |
Graduate in
Commerce |
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Date of Appointment : |
27.05.1993 |
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DIN No.: |
00267748 |
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Name : |
Mr. Kandarp Ratanchand Modi |
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Designation : |
Director |
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Address : |
901, Pushpanjali
Apartments, |
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Date of Birth/Age : |
18.05.1942 |
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Date of Appointment : |
10.11.1994 |
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DIN No.: |
00261506 |
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Name : |
Mr. Timothy
Charles William Ingram Stanley |
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Designation : |
Independent
Director |
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Address : |
6, |
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Date of Birth/Age : |
18.06.1947 |
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Date of Appointment : |
29.07.2005 |
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DIN No.: |
01430613 |
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Name : |
Mr. David
Rasquinha |
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Designation : |
Independent
Nominee Director |
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Name : |
Mrs. Thankom T. Mathew |
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Designation : |
Independent
Nominee Director |
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Name : |
Mr. M.V. Muthu |
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Designation : |
Independent
Nominee Director |
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Name : |
Ms. Maya Chakravorty |
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Designation : |
Independent
Nominee Director |
KEY EXECUTIVES
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Name : |
Mr. Sunil O. Khandelwal |
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Designation : |
Chief Financial Officer |
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Name : |
Mr. K.H. Gopal |
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Designation : |
President Corporate Affairs and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of Shareholders |
No. of Shares |
Percentage
of holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
109678621 |
7.96 |
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|
397135622 |
28.84 |
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|
19459382 |
1.41 |
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|
19459382 |
1.41 |
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|
526273625 |
38.22 |
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Total shareholding of Promoter and Promoter Group (A) |
526273625 |
38.22 |
|
(B) Public Shareholding |
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|
|
|
|
|
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|
19610 |
0.00 |
|
|
128999322 |
9.37 |
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|
53269487 |
3.87 |
|
|
182288419 |
13.24 |
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|
|
|
|
|
239027646 |
17.36 |
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|
|
|
|
|
95561234 |
6.94 |
|
|
311866213 |
22.65 |
|
|
22098458 |
1.60 |
|
|
7724154 |
0.56 |
|
|
1653097 |
0.12 |
|
|
12702832 |
0.92 |
|
|
4800 |
0.00 |
|
|
13575 |
0.00 |
|
|
668553551 |
48.55 |
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Total Public shareholding (B) |
850841970 |
61.78 |
|
Total (A)+(B) |
1377115595 |
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) |
1377115595 |
0.00 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Promoter and Promoter Group
|
|
|
Details of Shares held |
Encumbered shares (*) |
|||
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
As a % of grand total (A)+(B)+(C) |
No |
As a percentage |
As a % of |
|
1 |
Ashok B Jiwrajka |
3,37,84,473 |
2.45 |
33784473 |
100.00 |
2.45 |
|
2 |
Dilip B Jiwrajka |
3,41,78,421 |
2.48 |
34176371 |
99.99 |
2.48 |
|
3 |
Surendra B Jiwrajka |
3,61,14,871 |
2.62 |
36114871 |
100.00 |
2.62 |
|
4 |
Chandrakumar Bubna |
7,21,258 |
0.05 |
0 |
0.00 |
0.00 |
|
5 |
Chandrakala A Jiwrajka |
8,59,237 |
0.06 |
856676 |
99.70 |
0.06 |
|
6 |
Pramila D Jiwrajka |
20,61,605 |
0.15 |
1202193 |
58.31 |
0.09 |
|
7 |
Geeta S Jiwrajka |
7,48,441 |
0.05 |
748441 |
100.00 |
0.05 |
|
8 |
Vinod Jivrajka |
11,63,633 |
0.08 |
0 |
0.00 |
0.00 |
|
9 |
Manju Bubna |
42,516 |
0.00 |
0 |
0.00 |
0.00 |
|
10 |
Alok A Jiwrajka |
4,166 |
0.00 |
0 |
0.00 |
0.00 |
|
11 |
Dilip B Jiwarjka |
19,00,000 |
0.14 |
1900000 |
100.00 |
0.14 |
|
12 |
Surendra B Jiwrajka |
1,75,59,382 |
1.28 |
17559382 |
100.00 |
1.28 |
|
13 |
Ashok Realtors Private Limited |
15,96,320 |
0.12 |
957000 |
59.95 |
0.07 |
|
14 |
Alok Knit Exports Limited |
39,55,39,302 |
28.72 |
392363317 |
99.20 |
28.49 |
|
|
Total |
52,62,73,625 |
38.22 |
519662724 |
98.74 |
37.74 |
(*) The term encumbrance has the same meaning as assigned to it in regulation 28(3) of the SAST Regulations, 2011.
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Public and holding more than 1% of the total number
of shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of Total No. of Shares |
|
1 |
Life Insurance Corporation of India |
35164136 |
2.55 |
|
2 |
IFCI Limited |
21440823 |
1.56 |
|
3 |
Axis Bank Limited |
37816188 |
2.75 |
|
4 |
IDBI Bank Limited |
17888161 |
1.30 |
|
5 |
Arun Investment Private Limited |
50000000 |
3.63 |
|
|
Total |
162309308 |
11.79 |
Details of Locked-in
Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares |
Locked-in Shares as % of |
|
1 |
Alok Knit Exports Private Limited |
1,60,00,000 |
1.16 |
|
|
Total |
1,60,00,000 |
1.16 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Textile products. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management. |
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Bankers : |
· Allahabad Bank · Andhra Bank · Axis Bank Limited · Bank of Baroda · Bank of India · Bank of Maharashtra · Canara Bank · Central Bank of India · Corporation Bank · DBS Bank Limited · Dena Bank · Export Import Bank of India · Indian Bank · IDBI Bank Limited · Indian Overseas Bank · ING Vysya Bank Limited · Oriental Bank of Commerce · Punjab National Bank · Standard Chartered Banks · State Bank of Bikaner and Jaipur · State Bank of Hyderabad · State Bank of India · State Bank of Mysore · State Bank of Patiala · State Bank of Travancore · Syndicate Bank · The Jammu and Kashmir Bank Limited · The Federal Bank Limited · The Karur Vysya Bank Limited · UCO Bank · United Bank of India · Union Bank of India · Vijaya 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 : |
Deloitte Haskins and Sells LLP Chartered Accountants |
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Internal Auditors : |
Bhandarkar and
Company Chartered
Accountants Devdhar Joglekar
and Srinivasan Chartered Accountants N.T. Jain and
Company Chartered
Accountants Shah Gupta and
Company Chartered
Accountants T.R. Chadha and
Company Chartered
Accountants |
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Legal Advisors and Statutory : |
Desai Desai Carimjee and Mulla |
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Associate companies
: |
· Alspun Infrastructure Limited · Next Creation Holdings LLC · Ashford Infotech Private Limited |
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Entities under
common control: |
· Alok Denims (India) Private Limited · Green Park Enterprises · Alok Finance Private Limited · Jiwrajka Associates Private Limited · Alok Knit Exports Private Limited · Jiwrajka Investment Private Limited · Alok Textile Traders · Niraj Realtors & Shares Private Limited · Ashok Realtors Private Limited · Nirvan Exports · Buds Clothing Co. · Nirvan Holdings Private Limited · D. Surendra & Co. · Pramatex Enterprises · Gogri Properties Private Limited · Pramita Creation Private Limited · Grabal Alok Impex Limited (Amalgamated with Triumphant Victory Holdings Limited. the Company w.e.f. 1 April 2011) |
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Subsidiaries: |
· Alok Industries International Ltd. @ · Alok Infrastructure Limited · Alok Retail (India) Limited* · Alok Apparels Private Limited* · Alok Land Holdings Private Limited* · Alok New City Infratex Private Limited · Alok H&A Limited* · Alok Realtors Private Limited* · Alok International, Inc. · Springdale Information and Technologies Private Limited# · Alok International (Middle East) FZE · Kesham Developers & Infotech Private Limited # (incorporated on 01 August 2011) · Alok Singapore Pte Ltd. (Incorporated on 28 December · Alok Worldwide Limited (Incorporated 2011) on 15 July 2013 Grabal Alok (UK) Limited · Mileta, a.s. Grabal Alok International Limited@ # Liquidation under process Amalgamated with Alok Infrastructure Limited effective 1 April 2012 @ Entire stake sold to Alok Infrastructure Limited on 28 March 2012 |
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Joint Venture: |
· Aurangabad Textiles & Apparel Parks Limited · New City Of Bombay Mfg. Mills Limited |
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Other Related
Parties: |
· AVAN Packaging & Boards · Linear Design · C. J. Corporation |
CAPITAL STRUCTURE
As on: 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,50,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs.15000.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,37,71,15,595 |
Equity Shares |
Rs.10/- each |
Rs.13771.200
Millions |
|
|
|
|
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Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1,37,71,15,595 |
Equity Shares |
Rs.10/- each |
Rs.13771.200
Millions |
|
|
Add: Equity Shares forfeited |
|
Rs.0.100
Million |
|
|
Total |
|
Rs.13771.300 Millions |
(I) The movement in subscribed and paid up
share capital is set out below :
|
Particulars |
As at 30-Sep-13 |
|
|
No. of shares |
|
Equity shares of Rs. 10/- each |
|
|
At the beginning of the period/year |
82,62,69,357 |
|
Add : Shares alloted (Refer a, b & c below) |
55,08,46,238 |
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At the end of period/year |
1,37,71,15,595 |
a) During the period, 55,08,46,238 Equity shares of Rs. 10/- each were allotted on Right basis in the ratio of 3:2.
b) During the previous year, 1,60,00,000 Equity shares of Rs. 10/- each at a premium of Rs. 41/- each were alloted on conversion of warrants issued by Grabal Alok Impex Limited, the amalgamating company. Such warrants were sold by the original warrant holder to Jiwarajka Investment Private Limited, a promoter group company, which exercised such warrants.
c) During the previous year, 2,24,85,000 Equity shares were alloted to the shareholders of Grabal Alok Impex Limited pursuant to the Scheme of Amalgamation for consideration other than cash.
d) Of the remaining shares :
i) 7,45,396 equity shares were allotted as Bonus shares by way of capitalisation of General Reserve.
ii) 62,550 equity shares being forfeited shares were reissued during 2001.
(ii) Shareholders
holding more than 5 percent shares in the Company
|
Name of the Shareholders |
31.03.2013 |
|
|
|
No of shares Held |
% |
|
Alok Knit Exports Private Limited * |
39,55,39,302 |
28.72 |
|
Niraj Realtors and Shares Private Limited |
- |
- |
|
Caledonia Investment PLC |
- |
- |
|
Caledonia Investment PLC (FDI) |
- |
- |
* Out of 39,55,39,302 shares held by Alok Knit Export Private Limited, the beneficial owners of 8,44,500 shares are Santosh Jiwrajka (28,500 shares) & Kiran Jiwrajka ( 28,500 shares) & Belisev Fashion Establishments (7,87,500 shares)
(iii) The rights, powers and preferences relating to equity share and the qualifications, limitations and restrictions thereof are contained in the Memorandum and Articles of Association of the Company. The company has only one class of equity shares having a par value of Rs. 10/- per share. The principle rights are as follows:
a) Each holder of equity share is entitled to one vote per share.
b) The company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Annual General Meeting.
c) In the event of liquidation of the company, the holders of 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 shareholder.
(iv) Shares reserved for issue under options
(v) The board of directors at its meeting held on 23 November 2013 has recommended dividend of Rs. 0.30 per share.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.09.2013 (18 Months) |
31.03.2012 (12 Months) |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
13771.300 |
8262.800 |
7877.900 |
|
(b) Reserves & Surplus |
37109.900 |
28282.400 |
23098.000 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
50881.200 |
36545.200 |
30975.900 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
90854.700 |
70130.600 |
60514.000 |
|
(b) Deferred tax liabilities (Net) |
6641.400 |
6267.700 |
5076.600 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
1943.500 |
1763.900 |
793.500 |
|
Total Non-current Liabilities (3) |
99439.600 |
78162.200 |
66384.100 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
46407.100 |
41264.200 |
28461.900 |
|
(b) Trade payables |
9573.800 |
5064.200 |
5629.200 |
|
(c) Other current
liabilities |
38512.500 |
20582.000 |
10504.900 |
|
(d) Short-term provisions |
2502.700 |
756.000 |
718.700 |
|
Total Current Liabilities (4) |
96996.100 |
67666.400 |
45314.700 |
|
|
|
|
|
|
TOTAL |
247316.900 |
182373.800 |
142674.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
91569.000 |
85145.400 |
73842.900 |
|
(ii) Intangible Assets |
265.300 |
375.500 |
429.200 |
|
(iii) Capital
work-in-progress |
5551.300 |
9141.600 |
9065.500 |
|
(iv) Intangible
assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1291.500 |
1667.900 |
1399.300 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
16373.500 |
2560.900 |
3249.200 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
115050.600 |
98891.300 |
87986.100 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
27.300 |
39.400 |
272.500 |
|
(b) Inventories |
57264.700 |
33799.100 |
20026.200 |
|
(c) Trade receivables |
50259.600 |
21521.500 |
17401.900 |
|
(d) Cash and cash
equivalents |
8826.500 |
12948.400 |
11398.500 |
|
(e) Short-term loans and
advances |
15037.400 |
14040.400 |
4250.300 |
|
(f) Other current assets |
850.800 |
1133.700 |
1339.200 |
|
Total Current Assets |
132266.300 |
83482.500 |
54688.600 |
|
|
|
|
|
|
TOTAL |
247316.900 |
182373.800 |
142674.700 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
30.09.2013 (18 Months) |
31.03.2012 (12 Months) |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
199177.500 |
89008.600 |
63884.300 |
|
|
|
Other Income |
601.600 |
656.000 |
410.900 |
|
|
|
TOTAL (A) |
199779.100 |
89664.600 |
64295.200 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
139088.700 |
59097.900 |
32240.400 |
|
|
|
Purchase of Traded Goods |
0.000 |
0.000 |
3426.200 |
|
|
|
Changes in inventories of finished goods, work in progress |
(25091.500) |
(15166.600) |
(2225.500) |
|
|
|
Employee benefits expenses |
4346.800 |
2672.800 |
1997.600 |
|
|
|
Other Expenses |
26584.400 |
16813.000 |
10059.500 |
|
|
|
Exceptional Items |
4637.400 |
1212.700 |
414.500 |
|
|
|
TOTAL (B) |
149565.800 |
64629.800 |
45912.700 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
50213.300 |
25034.800 |
18382.500 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
22606.600 |
11495.500 |
7362.700 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
27606.700 |
13539.300 |
11019.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
13607.700 |
7134.300 |
5187.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
13999.000 |
6405.000 |
5831.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
4797.400 |
2599.700 |
1788.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
9201.600 |
3805.300 |
4043.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
13801.600 |
9216.100 |
1809.100 |
|
|
|
|
|
|
|
|
|
Add |
PROFIT AND LOSS
RESERVE ON AMALGAMATION |
0.000 |
548.500 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
413.200 |
247.900 |
196.900 |
|
|
|
Dividend Tax thereon |
70.200 |
40.200 |
32.700 |
|
|
|
Transferred from Debenture Redemption Reserve |
(768.600) |
(519.000) |
(3843.000) |
|
|
|
Transferred to General Reserve |
0.000 |
0.000 |
250.000 |
|
|
|
Excess / (Short) Provision of Dividend and Tax thereon of previous year |
0.000 |
(0.800) |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
23288.400 |
13801.600 |
9216.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
46677.400 |
27679.800 |
20323.400 |
|
|
|
Interest received on Fixed Deposits |
0.000 |
1.800 |
0.600 |
|
|
TOTAL EARNINGS |
46677.400 |
27681.600 |
20324.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods purchased |
2681.900 |
7499.500 |
3993.300 |
|
|
|
Stores & Spares purchased |
389.700 |
683.300 |
473.100 |
|
|
|
Raw Material purchased |
13286.700 |
12815.800 |
9395.500 |
|
|
|
Packing Materials purchased |
109.200 |
68.900 |
71.500 |
|
|
TOTAL IMPORTS |
16467.500 |
21067.500 |
13933.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
9.43 |
4.69 |
5.13 |
|
KEY RATIOS
|
PARTICULARS |
|
30.09.2013 (18 Months) |
31.03.2012 (12 Months) |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.61
|
4.24 |
6.29 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.03
|
7.20 |
9.13 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.82
|
3.73 |
4.41 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.28
|
0.18 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.70
|
3.05 |
2.87 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.36
|
1.23 |
1.21 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF CURRENT
MATURITIES OF LONG-TERM DEBT
(Rs. in Millions)
|
PARTICULARS |
30.09.2013 (18 Months) |
31.03.2012 (12 Months) |
31.03.2011 |
|
Current maturities of long-term borrowings |
23841.300
|
16327.400 |
9216.200 |
|
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 |
No |
|
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 |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As
on 30.09.2013 (18
Months) |
As
on 31.03.2012 (12
Months) |
|
LONG TERM
BORROWINGS |
|
|
|
Foreign currency loans From banks |
751.200 |
866.200 |
|
SHORT TERM
BORROWINGS |
|
|
|
Cash Credit accounts, working capital demand 4loan etc. From Banks (Includes Rs. 290.800 Millions (Previous year Rs. 135.500 Millions) loan in foreign currency) |
855.500 |
1575.300 |
|
Inter Corporate deposit |
0.000 |
117.500 |
|
Commercial Paper |
0.000 |
4380.000 |
|
Deposit from Public |
9.400 |
0.000 |
|
Total |
1616.100 |
6939.000 |
PERFORMANCE
The current period being the 18 months from April 2012 to September 2013 is not comparable to the financials of the previous year.
For the 18 month period ended September 30, 2013 the Company recorded sales of Rs. 199177.500 Millions. The exports of the Company for the year (including incentives) stood at Rs. 51089.100 Millions. The profit before tax was at Rs. 13999.000 Millions.
All the divisions of the company recorded growth with the Apparel fabrics division recording the highest growth.
The Company’s performance for the period under review are given in greater detail in the ‘Management Discussion and Analysis’, which forms part of this Directors’ Report.
AWARDS AND
RECOGNITION
During the year under review, the Company has won the maximum number of awards from the Cotton Textile Exports Council of India (TEXPROCIL) in the following categories:
1. Gold Trophy for the Highest Exports of Bleached/ Dyed/Yarn Dyed/Printed Fabrics in the Category III
2. Gold Trophy for the Highest Exports of Bed Linen/Bed Sheets/Quilts in Made-ups under the Category III
3. Silver Trophy for the Second Highest Global Exports (Overall)
4. Gold Trophy (Small) for the Highest Exports of Other Fabrics including Embroidered Fabrics, Laces in the Category II
5. Silver Trophy (Small) for the Second Highest Exports of Terry Towels in Made-ups under the Category II
6. Gold Plaque for the Highest Exports of Other Cotton Made-ups in the Category I
MANAGEMENT DISCUSSION
AND ANALYSIS
Economic Overview
World
In 2012-13, global growth remained in low gear. The drivers of economic activity are changing and downside risks persist. China and a growing number of emerging market economies are coming off cyclical peaks. Their growth rates are projected to remain much above those of the advanced economies but below the elevated levels seen in recent years, for both cyclical and structural reasons.
Growth in global output reduced from 3.9% in Calendar Year (CY) 2011 to 3.2% in CY 2012 and is projected to reduce to 2.9% in CY 2013. Advanced Economies (AEs) saw output growth reducing steadily from 1.7% in CY 2011 to 1.5% in CY 2012 and is projected to reduce to 1.2% in CY 2013. Growth in emerging markets, especially
China and India, has slowed down considerably from 6.2% in CY 2011 to 4.9% in CY 2012 and is projected to be 4.2% in CY 2013 as shown in Chart A.
The United States has seen several quarters of solid private demand. Although public sector demand has been pushing in the opposite direction, this counterforce will diminish in 2014, setting the stage for higher growth. Japan’s economy is enjoying a vigorous rebound but is expected to taper in 2014 as fiscal policy tightens. The euro area is crawling out of recession, but activity is forecast to stay tepid. In these three advanced economies, much slack remains and inflation pressure is expected to stay subdued.
These changing growth dynamics raise new policy challenges, and policy spill-overs may pose greater concern. Two recent developments will likely shape the path of the global economy in the near term. First, markets are increasingly convinced that U.S. monetary policy is reaching a turning point. Talk by the Federal Reserve about tapering its quantitative easing measures led to an unexpectedly large increase in long-term yields in the United States and many other economies, much of which has not been reversed despite a subsequent decision by the Federal Reserve to maintain the amount of asset purchases and policy actions in other countries. Second, there is strengthening conviction that China will grow more slowly over the medium term than in the recent past.
What these developments have done is increased import growth of advanced countries. Correspondingly, the exports of emerging economies that supported these imports have reduced significantly as well. Consequently, there is greater stress on domestic markets and severe competition in global markets as shown in Chart B.
The demand slowdown has reduced non-oil commodity prices. Chart C shows that non-oil commodity inflation is actually been negative – from 26.3% in CY 2011 to -9.9% in CY 2012. And, geo-political instability and speculative activities have contributed to oil prices continuing to remain at the existing high levels with just around 1% increase in CY 2012. In this milieu, consumer price inflation continued to remain at past levels. In the advanced economies, consumer prices inflation was 2.0% in CY 2012 against 2.7% in CY 2011 and in emerging and developing economies consumer price inflation reduced somewhat but still at high absolute levels of 6.1% in CY 2012 against 7.1% in CY 2011 as shown in Chart C.
This environment of low economic activity with high price levels continued to be a significant dampener for consumer confidence across the world.
India
The domestic economy continued to witness slowdown in 2013 with GDP growth hitting a low of 5% - the lowest in the last decade. All three sectors of the economy – agriculture, industry and services – slowed down.
The slowdown facing the Indian economy extended into 2013-14 with growth in Q1 falling to a 17- quarter low. The growth slowdown was broad-based reflecting moderation in the services and agriculture sectors, and contraction in the industrial sector as shown in Chart D. Modest improvement in growth is likely in H2 of 2013-14
on the back of a good monsoon and some improvements in industrial growth. A fuller recovery is likely to start taking shape towards the end of the fiscal year when current steps to clear the logjams constraining economic activity seep through the various inter-sectorial linkages in the economy.
During Q1 and Q2, 2013-14, driven by very adverse current account deficits, India witnessed a major fall in its currency with respect to international currencies. Chart E shows the rapid devaluation of rupee against the US dollar from May 2013.
RBI has pointed towards rising inflation pressures from a depreciating currency. Notably, CPI inflation is already at 9.6% in July 2013. With a 17% depreciation of the rupee since 22 May 2013, one expects WPI inflation to average at least 6.0% in remaining part of the fiscal year.
Since mid-July 2013, exceptional measures were put in place by the Reserve Bank to maintain liquidity conditions
such that volatility in the forex market is contained. The policy rate was effectively recalibrated to the MSF rate, leading to the hardening of money market rates. However, to facilitate adequate credit to productive sectors, significant primary liquidity injection was provided via LAF, MSF, OMOs and standing facilities.
A modest improvement in growth is anticipated in H2 of 2013-14. Both WPI and CPI inflation may stay range bound around the current levels that remain above comfort levels. Various surveys, including those by the Reserve Bank show that business confidence remains weak, while inflation expectations have risen again. In this environment, monetary and fiscal policies will have to be crafted so as to allow structural policy measures and ground-level actions to shape a sustainable recovery by next year.
Textiles, Clothing
and Fibre Industry
Global Scenario
The global Textile and Apparel (T&A) trade scenario remained a little subdued in 2012 as overall textile and apparel trade declined in 2012 by -4%, due to downturn in EU and US. However, there was a recovery in early 2013 driven by increasing demand in US and this recovery is expected to be sustained in the near future. Despite the decline in 2012, the overall trade has grown at a CAGR of
6% since 2005 and is expected to sustain this growth rate in the next 5 years and reach US$ 920 bn by 2017 as shown in Chart F.
Indian Textile and
Apparel Market Overview
The global slowdown had much less impact on the Indian domestic market for textile and apparel, even though the export market was negatively impacted. India’s total textile and apparel industry grew at a rate of 4% to reach ~US$ 95 bn (~Rs. 50121.500 Millions) in 2012. The lower growth was primarily due to decline in exports in 2012 by 2% compared to 2011. However, the domestic textile and apparel market sustained growth momentum and managed to grow by 7.8% in 2012. The overall textile and apparel market is expected to grow at a higher Compounded Annual Growth Rate (CAGR) of 8.7% from 2012 to 2020 due to the recovery of export market and the continued growth of domestic market as shown in Chart J.
Business Performance
Alok Industries (‘Alok’ or ‘the Company’) core business is textiles with offerings across the entire value chain of cotton and polyester. The strength of the Company’s business is its integrated vertically textiles operations and ability to produce value added products. The principal manufacturing facilities are based in India (Silvassa, Vapi, Navi Mumbai and Bhiwandi). Utilising this cost competitive integrated production base, the Company caters to markets in India and across the world. The stand- alone financial result, which is the major part of the Company’s
consolidated results, reflects the performance of the Company’s textiles operations from India.
The Company has also invested into some other businesses in India and overseas. This includes textile operations in a Czech Republic based integrated textiles player called Mileta and in retail business in India and in
the United Kingdom (UK). In India, it’s retail operations are carried on through Cash & Carry model under the store brand ‘H&A” through its subsidiaries, while it operates the ‘Store Twenty One’ outlets through its subsidiary Grabal Alok (UK) Limited.
As an opportunistic financial investment, the Company has also entered the real estate business through its real estate subsidiary Alok Infrastructure Limited.
The Company has identified the retail as well as real estate as its non-core business and has initiated steps to exit these businesses. The Company is now completely focussed on utilising its vertically integrated textile capabilities across the cotton and polyester value chain to service opportunities in India and abroad.
Financial Performance
(Stand Alone)
Given that 2012-13 is an 18 month financial year and 2011-12 was a 12 month financial period, the growth rates
cannot be established between the two years. However, one can analyse the different ratios. Table 1 gives the summarised profit and loss statement of the Company in 2011-12 compared to the previous year.
Textiles Business:
Operations Review
Overview
With a principal focus on deleveraging the balance sheet, the Company has emphasised on greater return on capital and better cash utilisation of its core textiles business.
The Company has integrated business operations for both of its verticals: cotton and polyester as shown in Chart Q. Its key competitive advantage is presence across the entire textiles and apparel value chain right from sourcing the fibre to yarn production, fabric production through knitting and weaving to garmenting, sheeting and terry towels.
The integration allows the Company to optimise decisions of in-house and external sales and purchase at every stage to optimise business returns depending on market conditions. It is this flexibility that provides the Company
with a strong competitive edge in the market.
Business Divisions
Cotton and Cotton
Yarn
Alok’s spinning facility mainly caters to the captive requirement of the company in its, weaving, knitting and terry division. From time to time, the Company sells its manufactured cotton yarn and trads in cotton / cotton yarn based on the opportunities available in the market. The reported divisional sales data only accounts for external
sales of raw cotton and yarn. The Company also out sourced cotton yarn from outside to meet its total cotton yarn requirement.
Overview of Cotton
Spinning Division
• Alok has largest spinning facility in India at a single location (Silvassa); with capacity of 411,840 ring spindles (60,000 tons) and 5,680 open end rotors (20,000 tons) to support in-house apparel fabric and home textiles segments
• 85%-90% of the cotton yarn manufactured is utilized for captive consumption by the apparel fabric (woven & knit
fabrics) and home textile (Bed Sheets & Towels) divisions
• External Sales by cotton Spinning business constituted about 1.30% of total revenue of the company for the 18
months period ended September 30, 2013
• Procurement of raw cotton at right price and during harvest remains crucial. Looking at the volatility in the prices of cotton in the recent past, the company tries to maintain an inventory holding to the extent of 3-4 months requirement matching its average sales order book which is also 3-4 months for apparel fabrics, home textiles and garments. Thus, it has in-built risk mitigation for cotton price fluctuation. Further, due to its integrated operations cotton constitutes about 27% – 28% of its fabric selling price and thus has limited impact on the overall operations
Apparel Fabric
Alok’s strength in the Apparel fabric business stems from the fact that it has a wide range of products, both in wovens and knits. In this space, the key differentiators for Alok are its large product offerings, state of the art manufacturing facilities, end to end integration, designing and product development capabilities. Alok also outsources fabric from power looms and other mills, based on the opportunities available in the market and to meet its requirement.
Alok’s fabric division continued to make the most of the opportunities in India and overseas in fabrics and recorded good growth all round. It continues to be the highest revenue generator for the company with 59.9% share in the total sales of the company. Both woven and knitted fabric recorded growth and woven maintained its dominant position with 96.3% share in the total apparel fabric division sales.
Overview of Apparel
Fabric Division
• Alok has one of the largest woven and knitted fabrics capacities in the country – 186 million meters p.a. for woven fabrics and 25000 tons p.a. for knitted fabrics
• Key business segment for the company contributing 60% of total revenue for the 18 months period ended September 30, 2013 with revenue of 119375.100 Millions
• Integrated operations, large scale, state of the art weaving , knitting & processing, in-house designing & product
development team, wide range of products, differentiates the company in this segment
• The company manufactures finished fabric primarily against orders which helps mitigate the risk of unsold inventory, while the pricing takes into account prevailing market price of raw material and foreign currency rate for exports
• Strong backward integration by way of in-house cotton and blended yarn production helps minimize the impact of any adverse fluctuations in yarn prices
• The apparel fabric division has a highly diversified and reputed customer base which includes garment exporters, garment brands, wholesalers, traders and retailers in domestic market, garment companies in international market and institutional sales to armed forces, government companies and corporates for work wear and technical textiles both in domestic and international markets
• Company has identified technical textile products and high-end yarn dyed fabric as its major growth areas
Fashion-wear:
Alok produces a wide range of fashion fabrics both in knits and wovens. Variety in woven fabrics include twills, voiles, cambrics, poplins, Lycra poplins gabardines, jacquard, satins, matte, canvases, dobby, lawn, yarn dyed and many more. The products are distributed through different channels each of which is specific to a certain customer group. The end customers include Indian exporters, converters in international countries, domestic garment manufacturers, retailers, traders and institutions.
Yarn-Dyed Fabric:
This is a sub-segment within fashionwear, which includes fabric used for fashionable shirting and high end women’s wear. The products are of high quality and command premium prices in the market. In this segment, Alok has derived benefit of its acquisition of Mileta by getting the technology for manufacturing premium yarn dyed fabric. The company has a capacity to produce 9000 tpa of dyed yarn which is being further expanded.
Technical Textiles:
These are speciality fabrics that have special functionality and are used in industrial, aerospace, military, marine, medical, construction, transportation and high technology applications. Some examples of these fabrics are fire retardant fabric, water repellent and soil release fabric and high visibility fabric. These products have higher unit selling price on account of their specialised
Home Textiles
In Home Textiles, Alok offers wide range of products in bed linen from 180 TCs to 1000 TCs and includes sheet sets, duvets, comforters, blankets, quilts and bed-in-a-bag in prints, solids, embroidery, sateens, flannel, jacquards, dobbies, yarn-dyed etc. Alok also manufactures curtains and terry towels. This division export oriented and its clientele include major global retailers and brands.
Alok has won several awards for highest export of bed linen and home textiles from India.
Overview of Home
Textiles Division
• Alok’s capacity in this segment is 150 million meters p.a. for wider width fabric and 13,400 tons p.a. for terry towels
• It has emerged as the largest producer and exporter of bed linen in the country and has won several Gold trophies from Texprocil, Ministry of Textiles, Government of India
• With total sales of 25944.200 Millions for the 18 months period ended September 30, 2013, home textiles division
accounts for 13% of overall revenues
• Integrated operations with spinning / processing capabilities enables better control over product quality and give
better margins
• Presence in the relatively high end home textiles (300 to 800 counts product category) enable higher price
realisation and helps mitigate competition from other low cost manufacturing countries and domestic companies
• In home textile segment, Alok is mainly present in the exports markets (~99% exports) where it faces competition from Chinese, Pakistani and Turkish manufacturers
• Established and reputed multinational clientele results in strong customer profile; periodic pricing resets to protect margins in case of increase in input costs / foreign exchange fluctuations
Garments
Alok produces wide range of knitted and woven garments for ladies, gents and children for different application such as sportswear, active wear, casual wear and sleepwear. Based on the application, the garments made from
different types of fabrics like solid, mélange, yarn dyed, auto stripes, jacquards, embroidered and variety of prints. The Company is also focusing on institutional sales for garments. This includes product lines like work-wear and uniforms.
The garment recorded asales of Rs. 2818.300 Millions for the 18 month period ended September 30, 2013, which was about 1.4% of the total sales of the company. The division is mainly focused on exports which stood at 76% of the division sales.
Overview of Garments
Division
• Company has an installed capacity of 22 million pieces spread over three locations
• Garment division accounted for 1.4% of total sales, almost 76% of which is exported
• Going forward higher focus on institutional segment
Polyester Yarn
Polyester Yarn divisions is an important segment in the overall business of Alok. In Polyester too, Alok is an integrated player where it uses Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG) and through Continuous Polymerization (CP) route, converts the same into Partially Oriented Yarn (POY) / Chips. It also does further processing and converts the POY into Draw Texturised Yarn (DTY) besides Fully Drawn Yarn (FDY), Cationic Yarn and Polyester Staple Fibre (PSF).
Alok’s USP in this segment is its focus on manufacturing wide range of finished products. It is consolidating its position for manufacturing value added products like Master Batch, Specialised Yarn, etc. It is also focusing on developing diversified overseas market for its polyester yarn.
The division recorded sales of Rs. 48420.300 Millions for the 18 month period ended September 30, 2013, which was about 24.31% of the total sales of the company. Exports constituted about 24% of the division’s sales. The major
export destinations are Latin America, Eastern Europe, Africa, South East Countries, China and Asia.
Overview of Polyester
Division
• Polyester Yarn division is the second highest revenue generating segment for Alok after Apparel Fabric division,
with sales of 48420.300 Millions for the 18 months period ended September 30, 2013, which is 24% of total company’s revenue
• Demand scenario on long term basis are likely to be good due to increasing substitution of natural fibres
• Competition from Chinese manufacturers, large Indian peers & unorganised domestic texturisers; however Alok’s large scale integrated operations and focus on finished products make it a sustainable player
• Relatively moderate EBDITA margins due to commodity nature of business; volatility in raw material (MEG & PTA) prices may affect profitability margins if not passed through adequately
• The integrated polyester business commands better ROCE as compared to integrated cotton business due to
higher asset turnover and lower working capital intensity
INDEX OF CHARGES
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10455950 |
11/10/2013 |
1,723,800,000.00 |
Bank of India |
Mumbai Large Corporate branch, Oriental Bldg, Ground floor, 364, D. N. Rd, Fort, Mumbai, Maharashtra - 400001, INDIA |
B87914123 |
|
2 |
10457286 |
30/09/2013 |
1,000,000,000.00 |
Andhra Bank |
Nanavathi Mahalaya, 18, Homi Modi Street, Fort, Mumbai, Maharashtra - 400023, INDIA |
B88412036 |
|
3 |
10455870 |
21/09/2013 |
2,000,000,000.00 |
Life Insurance Corporation of India |
Central Office, Yogakshema, Jeevan Bima Marg, Mumbai, Maharashtra - 400021, INDIA |
B87753828 |
|
4 |
10449623 |
21/09/2013 |
1,000,000,000.00 |
State Bank of Mysore |
Corporate Accounts Branch, 224, Mittal Court, C |
B85238087 |
|
5 |
10449310 |
19/09/2013 |
3,000,000,000.00 |
IFCI LIMITED |
IFCI Tower, Nehru Place, New Delhi, Delhi - 110019, INDIA |
B85118867 |
|
6 |
10450352 |
16/09/2013 |
2,000,000,000.00 |
United Bank of India |
United Bank of India Building, 2nd Floor, 25, Sir P.M. Road, Fort, Mumbai, Maharashtra - 400001, INDIA |
B85491447 |
|
7 |
10449230 |
07/09/2013 |
3,000,000,000.00 |
Bank of India |
Mumbai Large Corporate Branch, Oriental Building, Ground
Floor,364, D.N. Road, Fort,, Mumbai, Mahar |
B85075364 |
|
8 |
10448663 |
22/08/2013 |
1,150,000,000.00 |
Bank of Maharashtra |
Industrial Finance Branch, Apeejay House, 130, B.S. Marg, Fort, Mumbai, Maharashtra - 400001, INDIA |
B84788736 |
|
9 |
10444033 |
20/08/2013 |
1,025,000,000.00 |
Indian Overseas Bank |
Large Corporate Branch, Plot No.31, G Block, 7th |
B82560798 |
|
10 |
10444035 |
20/08/2013 |
300,000,000.00 |
Indian Overseas Bank |
Large Corporate Branch, Plot No.31, G Block, 7th Floor, Naman Corporate Link, BKC, Bandra (E), Mumbai, Maharashtra - 400051, INDIA |
B82561242 |
|
11 |
10446718 |
27/07/2013 |
1,000,000,000.00 |
Axis Bank Limited |
Axis House C-2, Wadia International Centre, Pand |
B83845743 |
|
12 |
10442190 |
26/07/2013 |
500,000,000.00 |
State Bank of Bikaner and Jaipur |
Commercial Network Branch,, 239, P D'Mello Road, |
B81765802 |
|
13 |
10439537 |
15/07/2013 |
640,400,000.00 |
Oriental Bank of Commerce |
Large Corporate Branch, 181-A, Maker Tower 'E', |
B80630445 |
|
14 |
10439539 |
15/07/2013 |
2,000,000,000.00 |
Oriental Bank of Commerce |
Large Corporate Branch, 181-A, Maker Tower 'E', |
B80631591 |
|
15 |
10441474 |
12/07/2013 |
1,793,800,000.00 |
Bank of Baroda |
Corporate Financial Services Branch, 1st Floor, |
B81199101 |
|
16 |
10438134 |
03/09/2013 * |
5,000,000,000.00 |
Central Bank of India |
Corporate Finance Branch, MMO Building, 1st Floor, Fort,
M.G. Road, Mumbai, Maharashtra - 400023, |
B86889938 |
|
17 |
10438328 |
03/09/2013 * |
750,000,000.00 |
UCO Bank |
Flagship Corporate Branch, 1st Floor, Mafatlal C |
B86766664 |
|
18 |
10438383 |
03/09/2013 * |
726,400,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra - 400025, INDIA |
B86762226 |
|
19 |
10438386 |
03/09/2013 * |
1,076,100,000.00 |
Axis Trustee Services Limited |
Axis House, 2nd Flr, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai, Maharashtra - 400025, INDIA |
B86761939 |
|
20 |
10432282 |
08/06/2013 |
2,200,000,000.00 |
ING VYSYA BANK LIMITED |
C-12, G BLOCK, BANDRA KURLA COMPLEX,BANDRA EAST, MUMBAI, Maharashtra - 400051, INDIA |
B77591923 |
|
21 |
10435716 |
28/05/2013 |
360,000,000.00 |
Axis Bank Limited |
209, Atlanta, Ground Floor, Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B79139309 |
|
22 |
10431882 |
09/05/2013 |
107,500,000.00 |
Export-Import Bank of India |
Export-Import Bank of India, Floor 21, Centre One |
B77430197 |
|
23 |
10425056 |
02/05/2013 |
75,000,000.00 |
Dombivli Nagari Sahakari Bank Limited |
5/8, Sambhava Chambers, P. M. Road, Fort, Mumbai, Maharashtra - 400001, INDIA |
B74916644 |
|
24 |
10423960 |
04/04/2013 |
2,050,000,000.00 |
Andhra Bank |
18, Homi Modi Street, Nanavathi Mahalaya, Fort, Mumbai, Maharashtra - 400001, INDIA |
B74505330 |
|
25 |
10423306 |
04/04/2013 |
4,000,000,000.00 |
State Bank of Hyderabad |
Corporate Finance Branch, MMO Building, 1st Floor, Fort,
M.G. Road, Mumbai, Maharashtra - 400023, |
B74252248 |
|
26 |
10425298 |
30/03/2013 |
25,651,940.00 |
DOMBIVLI NAGARI SAHAKARI BANK LIMITED |
KESHAV SMRUTI, MANPADA ROAD, DOMBIVLI EAST, THANE, Maharashtra - 421201, INDIA |
B74989336 |
|
27 |
10425059 |
03/09/2013 * |
4,000,000,000.00 |
Canara Bank |
PCB- Connaught Place, II, 2nd Floor, World Trade Tower, Barkhamba Lane, New Delhi, Delhi - 110001, INDIA |
B86773363 |
|
28 |
10427710 |
28/03/2013 |
1,200,000,000.00 |
Axis Bank Limited |
Axis House C-2, Wadia International Centre, Pandurang
Budhkar Marg, Worli, Mumbai, Maharashtra - |
B75815928 |
|
29 |
10417898 |
03/09/2013 * |
6,000,000,000.00 |
State Bank of India |
Backbay Reclamation Branch, Raheja Chambers, Free Press Journal Marg, Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B86995362 |
|
30 |
10419172 |
03/09/2013 * |
1,000,000,000.00 |
IDBI Bank Limited |
IDBI TOWER, WTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B85905933 |
|
31 |
10416733 |
22/03/2013 |
768,800,000.00 |
Corporation Bank |
Bharat House, No.104, Ground Floor, M. S. Marg,, |
B72285356 |
|
32 |
10422824 |
21/03/2013 |
1,409,400,000.00 |
Canara Bank |
Prime Corporate Branch II, 2nd Floor, World Trade Tower, Barkhamba Lane, New Delhi, Delhi - 110001, INDIA |
B74088329 |
|
33 |
10412725 |
13/03/2013 |
1,000,000,000.00 |
State Bank of Mysore |
'C' Wing, Mittal Court, 224-Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B71103667 |
|
34 |
10412731 |
13/03/2013 |
376,300,000.00 |
State Bank of Mysore |
'C' Wing, Mittal Court, 224-Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B71105274 |
|
35 |
10413725 |
11/03/2013 |
627,200,000.00 |
State Bank of Bikaner and Jaipur |
Commercial Network Branch, 239, P. D' Mello Road, |
B71421598 |
|
36 |
10414533 |
04/03/2013 |
1,742,500,000.00 |
State Bank of Patiala |
Commercial Branch, Atlanta, 1st floor, Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B71712269 |
|
37 |
10417725 |
02/03/2013 |
215,000,000.00 |
DENA BANK |
Corporate Business Branch,, C-10, G Block, Bandra |
B72603434 |
|
38 |
10410777 |
01/03/2013 |
482,500,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B70431465 |
|
39 |
10410783 |
22/02/2013 |
1,025,000,000.00 |
Indian Bank |
No.1, Sane Guruji Premises, 386, Veer Savarkar Mg, Opp.
Siddhivinayak Temple, Prabhadevi, Mumbai, |
B70432463 |
|
40 |
10406764 |
12/02/2013 |
2,562,500,000.00 |
State Bank of Travancore |
112-115, Tulsani Chambers, West Wing, 212, Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B69088045 |
|
41 |
10406574 |
05/02/2013 |
1,500,000,000.00 |
Indian Bank |
No.1, Sane Guruji Premises, 386, V. S. Marg, Opp. Siddhivinayak Temple, Prabhadevi, Mumbai, Maharashtra - 400025, INDIA |
B69019412 |
|
42 |
10400315 |
24/01/2013 |
500,000,000.00 |
Small Industries Development Bank of India |
11-13, Atlanta Building,1st Floor, 209, V K Shah |
B67026906 |
|
43 |
10402532 |
24/01/2013 |
640,600,000.00 |
United Bank of India |
United Bank of India Building, 2nd Floor, 25, Sir. P. M. Road, Fort, Mumbai, Maharashtra - 400001, INDIA |
B67917666 |
|
44 |
10410780 |
24/01/2013 |
191,500,000.00 |
Bank of Maharashtra |
Industrial Finance Branch, Dr. V B Gandhi Marg, |
B70431804 |
|
45 |
10394884 |
27/12/2012 |
3,000,000,000.00 |
State Bank of India |
Backbay Reclamation Branch, Raheja Chambers, Free Press Journal Marg, Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B65132334 |
|
46 |
10391093 |
03/09/2013 * |
2,000,000,000.00 |
Union Bank of India |
Industrial Finance Branch, 66/80, Mumbai Samachar |
B86683752 |
|
47 |
10391477 |
27/11/2012 |
530,000,000.00 |
IDBI Bank Limited |
IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, Maharashtra - 400005, INDIA |
B63933030 |
|
48 |
10389295 |
23/11/2012 |
242,500,000.00 |
ING VYSYA BANK LIMITED |
NARIAN MANZIL,GROUND FLOOR,SHOP NO. G1 TO G5,, I FLOOR,SHOP NO.1001 TO 1007,BARAKHAMBA ROAD,, NEW DELHI, Delhi - 110001, INDIA |
B63090666 |
|
49 |
10387099 |
17/11/2012 |
980,000,000.00 |
THE RATNAKAR BANK LIMITED |
SHAHUPURI,KOLHAPUR, KOLHAPUR, Maharashtra - 416001, INDIA |
B62243878 |
|
50 |
10388961 |
12/11/2012 |
13,243,000,000.00 |
State Bank of India |
Backbay Reclamation Branch, Raheja Chambers, Free Press Journal Marg, Nariman Point, Mumbai, Maharashtra - 400021, INDIA |
B62946959 |
* Date of charge modification
FIXED ASSETS:
Tangible Assets:
· Freehold Land
· Leasehold Land
· Buildings
· Office Premises
· Plant and Machinery
· Computer and Peripherals
· Office Equipment
· Furniture and Fittings
· Vehicles
· Tools and Equipment
Intangible Assets:
· Computer Software
· Trademarks/ Brands
AS PER WEBSITE DETAILS:
PRESS RELEASES:
INDIAN TEXTILE & APPAREL INDUSTRY: BRIGHTEST FUTURE EVER
We, at Alok, have always been strongly convinced about the
prospects of the Indian textile and apparel sector.
The Indian Textile Industry is now on the threshold of unprecedented growth and
it will not be an exaggeration to state that this decade (2011-2020) belongs to
our Textile Industry. This view is shared by Technopak, leading Textile
consultants, who in their recently published Report state that while the Global
Textile Trade is expected to grow from USD 510 bn (2009) to USD 1000 bn (2020),
the Indian Textile Industry during the same period would more than treble from
the present size of USD 70 bn (around USD 47 billion domestic and USD 23
billion exports) in 2009 to USD 220 bn (around USD 140 billion domestic and USD
80 billion exports) by 2020.
Some of the major growth drivers for this rapid growth in Indian textile and
apparel sector are:
· Supply from US and EU is declining gradually and shifting towards low cost Asian countries, China, India and rest of Asia expected to contribute considerably to textile supplies;
· EU share is expected to come down further from its present share of about 30%;
· Overseas buyers are looking at de-risking their sourcing from China, whose market share in the world trade is around 31% (USD 157 bn). India on the other hand is at 4.5% (USD 23 bn) , which can go up to 8% (USD 80 bn) by 2020;
· India is the only textile manufacturing country in the world with cotton surplus and it also has presence in the entire Textile Value Chain;
· Growing domestic Per capita income, growth in population, improving demographics, increased penetration of organised retail, etc is likely to boost the consumption of textiles in the domestic market.
In their 2nd Technopak Leadership Forum (Textile & Apparel) held on 3
September 2010 in Mumbai, Technopak released an Industry Report titled “Indian
Textile and Apparel Compendium 2010”. This Report details Indian domestic
textile and apparel industry, current domestic market size, market segmentation
for apparel, future projections for 2015 and 2020 for domestic and exports
market, investments required in this sector over next 10 years etc. According to
this Report, this decade is expected to be the brightest ever for Indian
Textile and Apparel Industry and size of this Industry is estimated to be
around USD 220 billion in the year 2020.
Arvind Singhal (Chairman, Technopak) also delivered a presentation during the
Forum titled “Indian Textile and Apparel Industry: Brightest Future Ever”. This
presentation includes the changing face of global textile trade, growth
opportunities for India and thoughts to make the next decade best ever for the
Indian textile industry.
It is our pleasure to share with you these two Reports on the Textile and
Apparel industry of India. Hope you will find them insightful and informative.
We shall only be too glad to provide you with more information / clarifications
on this matter.
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.61.62 |
|
|
1 |
Rs.100.84 |
|
Euro |
1 |
Rs.84.98 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--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 |
|
46 |
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.