MIRA
INFORM REPORT
|
Report Date : |
20.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAHAR INDUSTRIAL ENTERPRISES LIMITED (w.e.f.1994) |
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Formerly Known
As : |
OSWAL FATS AND OILS LIMITED |
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Registered
Office : |
Focal Point, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
27.09.1983 |
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Com. Reg. No.: |
16-018321 |
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Capital Investment
/ Paid-up Capital : |
Rs.400.342 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L15143PB1983PLC018321 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JLD N00400B / JLDN00758C |
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PAN No.: [Permanent Account No.] |
AAACN7244C |
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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
: |
Subject is engaged in manufacturing and sale of writing
and printing paper and vanaspati ghee. |
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No. of Employees
: |
9761 (Approximately) |
ATING & COMMENTS
|
MIRA’s Rating : |
Ba (44) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 21000000 |
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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 a satisfactory track record.
There appears loss in the current year recorded by the company. However,
networth of the company appears to be strong. Trade relations are reported to
be fair. Business is active. Payments are reported to be usually correct and
as per commitment. The company can be considered for normal business dealing at usual
trade terms and condition. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
India is developing into an open-market economy, yet traces
of its past autarkic policies remain. Economic liberalization, including
industrial deregulation, privatization of state-owned enterprises, and reduced
controls on foreign trade and investment, began in the early 1990s and has
served to accelerate the country's growth, which has averaged more than 7% per
year since 1997. India's diverse economy encompasses traditional village
farming, modern agriculture, handicrafts, a wide range of modern industries,
and a multitude of services. Slightly more than half of the work force is in
agriculture, but services are the major source of economic growth, accounting
for more than half of India's output, with only one-third of its labor force.
India has capitalized on its large educated English-speaking population to
become a major exporter of information technology services and software
workers. In 2010, the Indian economy rebounded robustly from the global
financial crisis - in large part because of strong domestic demand - and growth
exceeded 8% year-on-year in real terms. However, India's economic growth in
2011 slowed because of persistently high inflation and interest rates and
little progress on economic reforms. High international crude prices have
exacerbated the government's fuel subsidy expenditures contributing to a higher
fiscal deficit, and a worsening current account deficit. Little economic reform
took place in 2011 largely due to corruption scandals that have slowed
legislative work. India's medium-term growth outlook is positive due to a young
population and corresponding low dependency ratio, healthy savings and
investment rates, and increasing integration into the global economy. India has
many long-term challenges that it has not yet fully addressed, including
widespread poverty, inadequate physical and social infrastructure, limited
non-agricultural employment opportunities, scarce access to quality basic and
higher education, and accommodating rural-to-urban migration.
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loans = BBB+ |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of
financial obligation it carry moderate credit risk |
|
Date |
November 2010 |
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 / Administrative Office : |
Focal Point, |
|
Tel. No.: |
91-161-2672590-592 |
|
Fax No.: |
91-161-2670596/2674072 |
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E-Mail : |
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|
Website : |
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Corporate Office 1 : |
Nagar Tower Industrial Area –A, Ludhiana-141003, Punjab, India |
|
Tel. No.: |
91-161-2600701 to 705 |
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Fax No.: |
91-161-2600709 / 2601956 |
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E-Mail : |
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Corporate Office 2 : |
G.T. Road, Sherpur, Ludhiana-141003, Punjab, India |
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Tel. No.: |
91-161-2542501 to 07 |
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Fax No.: |
91-161-2542509 |
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E-Mail : |
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Factory 1 : |
Arham Spinning Mills Village Udaipur / Khijuriwas, Bhiwadi, District Alwar, Rajeshtan, India |
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Factory 2 : |
Spinning Unit, Spinning Unit- II, Spinning Unit-III, Spinning Unit-IV Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali, Punjab, India |
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Factory 3 : |
Sambhav Spinning Mills Industrial Focal Point, Phase VIII, Mundian Kalan, District Ludhiana, Punjab, India |
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Factory 4 : |
Fabrics Unit Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali, Punjab, India |
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Factory 5 : |
New Process and Dyeing Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali, Punjab, India |
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Factory 6 : |
Nahar Sugar Village Salana Jeon Singh Wala, Tehsil Amloh, District Fatehgarh Sahib, Punjab, India |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Jawaharlal Oswal |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. Kamal Oswal |
|
Designation : |
Vice Chairman and Managing Director |
|
Qualification : |
B.Com |
|
Date of Appointment : |
01.02.1998 |
|
|
|
|
Name : |
Mr. Dinesh Oswal |
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Designation : |
Director |
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|
Name : |
Mr. Dinesh Gogna |
|
Designation : |
Director |
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|
Name : |
Mr. N. D. Jain |
|
Designation : |
Director |
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|
Name : |
Mr. O. P. Sahni |
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Designation : |
Director |
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|
Name : |
Dr. H. K. Bal |
|
Designation : |
Director |
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|
Name : |
Prof. K. S. Maini |
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Designation : |
Director |
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|
Name : |
Dr. Y. P. Sachdev |
|
Designation : |
Director |
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|
Name : |
Dr. A. S. Sohi |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Mukesh Sood |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. B. Bhushan Gupta |
|
Designation : |
Corporate Finance Controller |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of
Shareholder |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1324 |
0.00 |
|
|
26675715 |
66.97 |
|
|
26677039 |
66.97 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
26677039 |
66.97 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
18552 |
0.05 |
|
|
9635 |
0.02 |
|
|
169463 |
0.43 |
|
|
112 |
0.00 |
|
|
331517 |
0.83 |
|
|
331517 |
0.83 |
|
|
529279 |
1.33 |
|
|
|
|
|
|
954177 |
2.40 |
|
|
|
|
|
|
6888352 |
17.29 |
|
|
4786294 |
12.02 |
|
|
12628823 |
31.70 |
|
Total Public shareholding (B) |
13158102 |
33.03 |
|
Total (A)+(B) |
39835141 |
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) |
39835141 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged
in manufacturing and sale of writing and printing paper and vanaspati ghee. |
||||||||
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||||||||
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Products : |
·
Yarns ·
Woven Fabrics ·
Knitwears and Garments ·
Sugar and Other Products
|
PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Yarn |
Spindles |
434800 |
204288 |
|
Yarn |
Rotors |
11808 |
7832 |
|
Grey Fabric |
Air Jet looms |
730 |
453 |
|
Processed Fabric |
Meters Per annum |
107000000 |
58400000 |
|
Sugar |
TCD |
5000 |
2500 |
|
Steel Ingots |
MTs per annum |
60000 |
50000 |
|
Particulars |
Unit |
Actual
Production |
|
Yarn (1) |
MTs |
63423 |
|
Yarn on Job Work Basis (1) |
MTs |
14 |
|
Grey Fabric (2) |
Mtrs |
20003522 |
|
Processed Fabric (3) |
Mtrs |
42294809 |
|
Readymade Garments |
Pcs |
-- |
|
Cotton Fibre (4) |
MTs |
-- |
|
Sugar (5) |
Qtls |
305672 |
|
Molasses |
Qtls |
148788 |
|
Bagasses (6) |
Qtls |
888482 |
|
Steel Ingots |
MTs |
-- |
|
Runner and Risers |
MTs |
-- |
Notes:
1.
Production excludes 517 MTs. material reprocessed
and excludes 3,368 MTs. For captive
consumption. Sales Includes interunit transfer of 20,761 MTs. amounting to Rs.
4.016 millions.
2. Production excludes 633,385
Mtrs. Reprocessed It also excludes 27,161,755 Mtrs. for captive consumption. Sales
include inter unit transfer of 16,513,629 Mtrs amounting to Rs. 1.205 millions.
3. Production excludes 1,632,437 Mtrs.
material reprocessed and include 159,935 Mtrs. On Job work basis. Sales
Includes inter unit transfer of 871,110 Mtrs. amounting to Rs.0.076 million.
4. Sale Includes interunit transfer of 1,625 MTs. amounting to Rs.0.124
million.
5. Production
excludes 4,720 Qtls. of Brown sugar reprocessed.
6. Production includes 815,387 Qtls. for captive consumption. Sale
include inter unit transfer of 65,995 Qtls. amounting to Rs.0.013 million.
7. Other sales includes inter unit transfer of Rs.0.923 million.
GENERAL INFORMATION
|
No. of Employees : |
9761 (Approximately) |
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Bankers : |
·
State
Bank of Patiala ·
Canara
Bank ·
Punjab
National Bank ·
Allahabad
Bank ·
Punjab
and Sind Bank ·
State
Bank of India ·
Indian
Overseas Bank ·
IDBI
Bank Limited ·
Corporation
Bank |
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|
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|
Facilities : |
(Rs.
In Millions)
|
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|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Raj Gupta and
Company Chartered
Accountants |
|
Address : |
549/10, |
|
|
|
|
Associates : |
· Nahar Spinning Mills Limited · Nahar Poly Films Limited · Nahar Capital and Financial Services Limited · Oswal Woolen Mills Limited · Atam Vallabh Financers Limited · J.L. Growth Fund Limited · Vardhman Investments Limited · Abhilash Growth Fund Private Limited · Kovlam Investment Trading Company Limited · Ludhiana Holding Limited · Nagdevi Trading Investment Company Limited · Nahar Growth Fund Private Limited · Neha Credit Investment Private Limited · Sankheshwar Holding Company Limited · Vanaik Investor Limited · Vinayak Spinning Mills Limited · Nahar Industrial Infrastructure Corporation Limited · Cotton County Retail Limited · Crown Star Limited · Nahar Financial and Investment Limited · Monte Carlo Fashions Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
65000000 |
Equity Share |
Rs.10/- each |
Rs.650.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
39835141 |
Equity Shares |
Rs.10/- each |
Rs.398.351
Millions |
|
|
Add: Share Forfeited Account (Amount originally paid up) |
|
Rs.1.991
Millions |
|
|
Total |
|
Rs.400.342 Millions |
a. Reconciliation of the
number of equity shares outstanding :
|
Particular |
31.03.2012 |
|
No. of equity shares outstanding |
40,395,865 |
|
Less : Shares Forfeited |
560,724 |
|
Outstanding at the end of period |
39,835,141 |
b. Terms/rights
attached to equity shares :
The company has only one class of Equity Shares having Face value of 10/- each. Each holder of equity share is entitled to only one vote per share.
c. Detail of
Shareholders holding more than5%shares :
|
Shareholders |
Number |
% of holding |
|
Nahar Capital and Financial Services Limited |
9,336,745 |
23.44 |
|
J L Growth Fund Limited |
3,421,836 |
8.59 |
|
Nahar Poly Films Limited |
2,708,800 |
6.80 |
|
Vardhman Investments Limited |
2,277,955 |
5.72 |
|
Ashish Dhawan |
2,590,124 |
6.50 |
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 |
400.342 |
400.340 |
400.340 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4991.405 |
5831.490 |
5536.937 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5391.747 |
6231.830 |
5937.277 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
9834.786 |
10575.897 |
7978.539 |
|
|
2] Unsecured Loans |
56.982 |
56.982 |
471.874 |
|
|
TOTAL BORROWING |
9891.768 |
10632.879 |
8450.413 |
|
|
DEFERRED TAX LIABILITIES |
62.776 |
310.776 |
246.076 |
|
|
|
|
|
|
|
|
TOTAL |
15346.291 |
17175.485 |
14633.766 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6554.717 |
6438.121 |
5856.121 |
|
|
Capital work-in-progress |
1344.540 |
383.811 |
716.137 |
|
|
|
|
|
|
|
|
INVESTMENT |
1408.600 |
1408.600 |
1411.678 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5291.123
|
7307.568 |
4618.111 |
|
|
Sundry Debtors |
1557.912
|
1745.439 |
1393.786 |
|
|
Cash & Bank Balances |
29.257
|
23.588 |
20.678 |
|
|
Other Current Assets |
760.640
|
832.926 |
0.000 |
|
|
Other Non-Current Assets |
0.000
|
0.003 |
0.000 |
|
|
Loans & Advances |
850.599
|
1138.954 |
1396.555 |
|
|
Fixed Assets held for disposal |
0.000
|
0.000 |
9.223 |
|
Total
Current Assets |
8489.531
|
11048.478 |
7438.353 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
771.388
|
826.228 |
364.284 |
|
|
Other Current Liabilities |
1606.975 |
1182.824 |
377.409 |
|
|
Provisions |
72.734
|
94.473 |
46.838 |
|
Total
Current Liabilities |
2451.097
|
2103.525 |
788.531 |
|
|
Net Current Assets |
6038.434
|
8944.953 |
6649.822 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.008 |
|
|
|
|
|
|
|
|
TOTAL |
15346.291 |
17175.485 |
14633.766 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
14078.234 |
12444.208 |
10174.617 |
|
|
|
Other Income |
69.855 |
49.532 |
151.716 |
|
|
|
TOTAL (A) |
14148.089 |
12493.740 |
10326.333 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material Consumed |
9165.716 |
7251.609 |
|
|
|
|
Purchases of Stock-in-Trade |
360.176 |
149.958 |
|
|
|
|
Changes in Inventories of Finished Goods, Working Progress and Stock-in-Trade |
(348.878) |
(1058.465) |
8761.429 |
|
|
|
Employee Benefits Expense |
958.219 |
823.608 |
|
|
|
|
Other Expenses |
3286.315 |
3125.669 |
|
|
|
|
TOTAL (B) |
13421.548 |
10292.379 |
8761.429 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
726.541 |
2201.361 |
1564.904 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
974.455 |
982.499 |
546.555 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(247.914) |
1218.862 |
1018.349 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
807.445 |
745.558 |
723.124 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(1055.359) |
473.304 |
295.225 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(247.803) |
158.017 |
100.480 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(807.556) |
315.287 |
194.745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add |
Income tax
Liability/refund of earlier years |
(36.218) |
25.795 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
Transfer from
Contingent Liability Reserve |
0.000 |
293.516 |
41.795 |
|
|
|
|
|
|
|
|
|
Add |
Transfer from FCCBs
Periodic Cost Revenue |
0.000 |
127.291 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
(8.438) |
715.360 |
167.795 |
|
|
|
Proposed Dividend |
0.000 |
40.034 |
40.034 |
|
|
|
Corporate Tax on Dividend |
00000 |
6.495 |
6.804 |
|
|
|
Income Tax liability/refund of earlier
years (net) |
0.000 |
0.000 |
0.004 |
|
|
|
Transfer to FCCBs Periodic Cost Revenue |
0.000 |
0.000 |
21.903 |
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB Value |
1233.310 |
882.223 |
594.480 |
|
|
|
Other Earnings |
30.713 |
25.556 |
29.044 |
|
|
TOTAL EARNINGS |
1264.023 |
907.779 |
623.524 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
64.451 |
24.102 |
20.172 |
|
|
|
Capital Goods and Stores |
867.897 |
426.589 |
199.073 |
|
|
TOTAL IMPORTS |
932.348 |
450.691 |
219.245 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
(19.99) |
7.80 |
4.82 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.03.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
3802.200 |
4186.200 |
4683.600 |
|
Total Expenditure |
3244.300 |
3629.200 |
3900.900 |
|
PBIDT (Excl OI) |
557.900 |
557.100 |
782.800 |
|
Other Income |
06.400 |
10.000 |
20.300 |
|
Operating Profit |
564.300 |
567.100 |
803.000 |
|
Interest |
303.900 |
296.400 |
278.400 |
|
Exceptional Items |
0.000 |
0.000 |
(127.600) |
|
PBDT |
260.300 |
270.700 |
397.000 |
|
Depreciation |
203.300 |
206.200 |
266.100 |
|
Profit Before Tax |
57.100 |
64.500 |
130.900 |
|
Tax |
11.400 |
0.000 |
64.600 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
45.700 |
64.500 |
66.300 |
|
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 |
45.700 |
64.500 |
66.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(5.71)
|
2.52 |
1.88 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.50)
|
3.80 |
2.90 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(7.02)
|
2.71 |
2.22 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.20)
|
0.08 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.83
|
1.71 |
1.42 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.46
|
5.25 |
9.43 |
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
PERFORMANCE REVIEW
The company operates in three main business segments viz. Yarn, Fabrics and Sugar. The textile division (comprises of yarn and fabrics) accounts for 95.38% of the total turnover (including inter-segment) of the company for the year ended 31st March, 2012. Sugar and others also accounts for 4.62% of the total turnover of the company for the year ended 31st March, 2012.
The business wise performance of each segment is as under: -
Yarn: The Company has produced 61,331 MTs of yarn as against 63,423 MTs in the previous year. The total turnover of this segment (including inter-segment) has increased to Rs.12187.100 Millions as against Rs.11545.700 Millions in the previous year showing an increase of 5.55%.
Fabrics: The Company has produced 62,392,988 meters of fabrics (both grey and processed) as against 62,298,331 meters in the previous year. The total turnover of this segment (including inter-segment) has increased to Rs.7733.500 Millions as against Rs.6584.400 Millions in the previous year showing an increase of 17.45%.
Sugar: The Company has produced 400,415 Qtls of sugar as against 305,672 Qtls. in the previous year. The total turnover of this segment is Rs.945.500 Millions as against Rs.613.500 Millions in the previous year showing an increase of 54.11%.
During the year the company has achieved operational income of Rs.14119.700 Millions as against Rs.12475.600 Millions showing an increase of 13.18% over the previous year. The company has earned Profit before finance cost, Depreciation and tax of Rs.726.500 Millions as against Rs.2201.400 Millions in the previous year. After providing for Finance Cost of Rs.974.500 Millions (previous year Rs.982.500 Millions), Depreciation of Rs.807.400 Millions (previous year Rs.745.600 Millions) and Tax Expenses of Rs. (247.800) Millions (previous year Rs.158.000 Millions) the Profit/(Loss) for the year comes to Rs.(807.600) Millions as against Rs.315.300 Millions in the previous year.
The textile Industry has witnessed FY 2011-12 a struggling and challenging year. The Cotton being a seasonal crop is purchased by the companies for its requirement in the Cotton season. There was sudden crash in the prices of raw cotton from 63,000/- per candy in September 2010 to 34,000/- per candy in June 2011. There was sharp reduction in yarn prices and sluggish demand of textile products in both domestic and exports markets. The mounting pressure of piling up of finished goods at Mills level pushed the companies to sell its products at cheaper prices which in turn affected the Company's financial performance. However, it was only in the second half of the year when things showed some sign of stabilization.
The cotton prices are expected to be less volatile than last year and it is expected that company will improve its performance in the current year. The Management is putting whole heartedly all its efforts in cost reduction, quality management, better product mix etc. so as to improve the efficiencies which in turn will help the company in meeting the challenges ahead. Besides the Management also expect that the Government through its policies will take some initiatives so that the textile industry could survive in the challenging period.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE/DEVELOPMENT
Indian textiles and apparel Industry has a significant presence in the economic life of the country. It plays a pivotal role in contribution to industrial output, export earnings and employment generation. The Indian textiles industry is extremely varied, with the hand-spun and hand woven sector at one end and capital intensive, sophisticated mill sector at the other. The de-centralized power loom/hosiery knitting sectors form the largest section of the textiles industry. Indian textile industry has the capacity to produce a diverse range of products suitable to the different market segments, catering both domestic and export markets.
The
Textile industry's growth started galloping after the opening of the sector
through liberalization policies as initiated by the Government of India. In a
short span, Textile industry successfully made its place in theWorld as the
second largest producer of Textile and Garments after China. To attain this
position, Central Government initiated several policies. Besides easy
availability of raw cotton coupled with cheap labour acted as catalyst for the
growth of the Industry. Taking full advantage of these measures, the industry
modernized as well as expanded its capacities so as to become a global player
and achieve economies of scale which in turn helped the industry to achieve
competitive edge in terms of cost as well as quality.
Last
year has been the worst year for the textile industry. Though the fact
regarding the recession through out the World was the common knowledge for
every one but the effect of the same to the respective industries was known to
the respective Sectors only. The development in the last year to major
economies globally was not encouraging. The lingering Euro Zone crisis and less
than expected demand recovery in US are resulting in an uncertain economic
environment. The U.S. and Europe are showing signs of economic strain. China is
showing signs of slowdown. Everywhere, there is concern and a feeling of
economic stress. The global economy is struggling for revival of growth. In
India, they are plugged into the global scenario. Further, there are issues of
currency depreciation and inflation. Turbulent global economic conditions,
falling value of rupee, rising inflation coupled with weak industrial sector
have emerged challenges for Indian economy. The Indian economy's growth
declined to 6.9 percent in FY 2012 while it grew consistently by 8.3% in fiscal
year (FY10) and 8.5% in (FY11).
For
Indian textile Industry, year 2011-12 was one of the most struggling and
challenging year. Record-high cotton and yarn prices seen during 2010-11. In
order to check the rise in cotton yarn prices, the Indian Government in January
2011 has fixed cap on cotton yarn to be exported in FY2011-12. In the first
week of April, 2011 The Government announced its new policy on export of Cotton
Yarn and Yarn export was brought under Open General License. When exports were
allowed from April 2011, the accumulated stock caused a crash of cotton yarn
prices in the global and domestic markets. The mounting pressure of pilling up
of finished goods at Mills level pushed the companies to sell its products at
cheaper prices which in turn affected the Company's financial performance.
In
addition, the hike in excise duty on all branded apparels resulted in apparel
prices pushed further. This had an adverse impact on consumer sentiments,
thereby impacting demand. Also, the shortfall in global demand attributed by
tough economic conditions in developed countries has not been compensated by
surge in domestic demand in emerging economies. There was overall slowdown in
textile demand and consumption both in the domestic and export markets,
resulted in sluggish growth for all types of textile products. However, in the
later second half things showed some signs of stabilization.
OUTLOOK
The
Indian textile industry is passing through an adverse phase although the future
would be more optimistic if input costs, including the cost of raw material and
interest, could remain generally stable. Global trade is shifting in favour of
sourcing from low cost Asian Countries; India is expected to get benefit out of
this. New consumption markets like Brazil, south Africa, and Turkey are also
expected to create huge export opportunities for India. At the same time,
increasing manufacturing cost of china will force some of the manufacturing to
shift to other countries including India. Overall the year is expected to be
more stable due to expectation that cotton will be much less volatile than last
year. India's domestic demand shall be the driver of growth for Indian textile
and apparel industry. Growth of the industry will move around the recovery in
the global economy.
Thus
although opportunities for the Indian textile industries at the global level is
huge, they need to get their act together to make their presence felt on the
global stage.
SUGAR
INDUSTRY OVERVIEW
The
Indian sugar industry is one of the largest agro based industry after textile.
India is the world's second-largest producer and largest consumer of sugar. The
Indian Sugar Industry is characterized by the co-existence of private,
co-operative and public sector. The growth of sugar industry has powerful
impact on the rural economy. Government has constituted an expert committee in
January 2012 under the chairmanship of Dr C Rangarajan for sugar sector
reforms. Indian Sugar Mills Association and the Regional Associations have given
their representations urging upon levy sugar abolition, dismantling release
mechanism and abolition of mandatory jute packing. Above all, it has
underpinned the economic rationale and global models to have in place a long
term cane pricing formula devoid of political intervention, with due linkage to
realization from sugar and its by-products.
Better
cane prices fetched by farmers in last couple of years, encouraging to plant
more sugarcane leading to higher sugar production making the Country a net of
exporter of Sugar. The annual domestic demand of sweetener is expected at 22
Million Ton (MT) which leaves a surplus of 2 to 3MT on an average. The
government has decided to remove quantitative restrictions on exports.
Sugar
is a cyclical industry, marked by 3-5 years of a production up cycle and 2-3
years of a down cycle. The industry down cycle usually starts with oversupply
implying lower sugar prices, leading to lower profitability for millers, farmer
switch to alternative crops, lower sugarcane harvest and lower sugar
production. This down cycle lasts for 2-3 years. A sudden drop in sugar
production leads to higher sugar prices leading to better mill profitability,
higher sugarcane prices, increased planting, higher sugar production and lower
sugar prices.
Indian
sugar consumption is set to rise in 2012-13 to 26.5 MT on improved domestic
supplies and strong demand from bulk consumers. Growing population (about 1.8
percent per annum) would also support growth in sugar consumption. Bulk
consumers such as soft drink manufacturers, bakeries, confectionary, hotel and
restaurant consumers account for 60 percent of milled sugar demand. With a
boost in capacity generation and de-control in the sugar industry, they believe
that the country
is
poised for phenomenal growth.
The
company is also making all efforts for sugarcane development in the cane area
allotted to it by providing pesticides at subsidized rates. Supply of disease
free seeds and free testing of soil etc. to farmers of the area. The Company
has undertaken necessary maintenance programme so that the plants fully
equipped to crush higher quantity of sugarcane in the ensuing crushing season
and to prevent breakdown during the season.
CONTINGENT
LIABILITIES NOT PROVIDED FOR (As on 31.03.2012)
a) Estimated amount of contracts remaining to be executed on capital account (net of advances) Rs.364.575 Millions (Previous year Rs.1403.628 Millions).
b) Letter of Credits in favour of suppliers and others Rs.350.594 Millions (Previous year Rs.803.267 Millions).
c) Bank Guarantees in favour of suppliers and others 12.898 Millions (Previous Year Rs.11.334 Millions).
d) Corporate guarantee given on behalf of others Rs.119.500 Millions (Previous year Rs.850.000 Millions).
e) Sales tax demands against which the company has preferred appeals Rs.12.046 Millions (Previous year Rs.12.046 Millions).
f) The Central Excise Authorities have issued show cause notices to the Company for Rs.85.068 Millions on various matters under the Central Excise Rules (Previous Year Rs.61.881 Millions). The Company has filed suitable replies with the concerned authorities.
g) Punjab State Power Corporation Limited has raised a net demand of Rs.12.178 Millions (Previous Year Rs.15.866 Millions) on account of paralleling operation charges for the captive power generation by the Company. The Company has protested the demand in the Hon'ble Courts.
h) The Company has executed bonds / legal undertakings for an aggregate amount of Rs.604.187 Millions (Previous year Rs.629.303 Millions) in favour of The President of India for fulfillment of its obligations under the rules made under Central Excise Act, 1944 and Customs Act, 1962.
i) Claims of Rs.36.806 Millions (Previous Year Rs.34.967 Millions) lodged against the company on various matters are not acknowledged as debts. The company has filed suitable replies with the concerned authorities.
j) Contingent liabilities were provided in respect of Foreign Exchange Contracts which were under dispute in the courts, The net contingent liability at the end of year 2011-12 come to Rs.160.904 Millions. Since the liability arising out of the derivative contracts are sub judice before the Civil Courts and has been considered by the company as Contingent liability, thus the interest of Rs.13.503 Millions computed by the banks on the disputed amount is not acknowledged and accordingly not provided for as status quo order is already in force.
UNSECURED LOAN
Rs.
In Millions
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
Others |
|
|
|
Deferred Payment Liabilities |
26.982 |
26.982 |
|
Loans And Advances from Related Parties |
30.000 |
30.000 |
|
Total |
56.982 |
56.982 |
FIXED ASSETS:
·
·
·
Building
·
Plant and Machinery
·
Furniture and Fixture
·
Office Equipment
·
Vehicles
WEB SITE DETAILS
PROFILE
Subject is a vertically-integrated textile manufacturer, with operations ranging from spinning, weaving and processing and also having sugar unit with 2500 TCD per day. NIEL's strategic objective is to capitalize on the growth opportunities that it believes are available in the domestic and global textile industry. At the same time the company recognizes the competitive nature of the industry, especially with pressure from Asia, and that to maintain growth it must continue to improve production process and reduce costs.
THE JOURNEY
1983 Incorporated as Oswal
Fats and Oils Limited.
1994 Name changed as Nahar
Industrial Enterprises Limited.
1997 Merged Nahar Fabrics
Limited (manufacturer of greige fabric).
2002 Merged Oswal Cotton
Mills Limited (manufacturer of Processed fabrics and finished garments).
2004 Launched apparel brand
“Cotton County.”
2005 Merged Nahar International Limited
(manufacturer of yarn) and Nahar sugar and Allied Industries Limited
(manufacturer of sugar and steel).
2006 Created Nahar Retail
Limited, a wholly owned subsidiary of Nahar Industrial Enterprises Limited
2008 Nahar
Retail Limited ceased to be a wholly owned subsidiary of Nahar Industrial
Enterprises Limited
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guiltyor against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.84.09 |
|
Euro |
1 |
Rs.72.44 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
TOTAL |
|
44 |
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.