MIRA
INFORM REPORT
|
Report Date : |
26.02.2013 |
IDENTIFICATION DETAILS
|
Name : |
SUTLEJ TEXTILES AND INDUSTRIES LIMITED |
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Registered
Office : |
Pachpahar Road, Bhawanimandi – 326502, Kota, Rajasthan |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
22.06.2005 |
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Com. Reg. No.: |
17-020927 |
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Capital Investment
/ Paid-up Capital : |
Rs.109.219
Millions |
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CIN No.: [Company Identification
No.] |
L17124RJ2005PLC020927 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JDHS07078B |
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PAN No.: [Permanent Account No.] |
AAJCS1850N |
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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 Synthetic Staple Fibres Yarn, Man made
Fibres blended yarn and Cotton Yarn and Fabrics. |
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No. of Employees
: |
11198 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (55) |
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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 11000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a fine track record. There
appears some dip in the profitability during 2012. However, financial
position of the company appears to be sound. Trade relations are reported as
decent. Business is active. Payments are reported to be regular and as per
commitment. The company can be considered good for business dealings at usual
trade firms 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.
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 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
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 |
CARE |
|
Rating |
3/5 |
|
Rating Explanation |
Good Fundamentals |
|
Date |
03.05.2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
|
|
Tel. No.: |
91-7433-222052/222054/222056/222082/222090 |
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Fax No.: |
91-7433-222354 |
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E-Mail : |
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Website: |
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Corporate Office : |
Solaris-1, D Wing, 4th Floor, opp L&T Gate No-6, Saki
Vihar Road, Powai, Andheri – (East), Mumbai – 400072, Maharashtra. India |
|
Tel. No.: |
91-22-42198800/42198824 |
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Fax No.: |
91-42198830/31 |
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E-Mail : |
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Factory 1 : |
Chenab Textile Mills, Kathua – 184102, |
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Factory 2 : |
Damanganga Home Textiles, Bhilad – 396105, |
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Factory 3 : |
Damanganga Garments, Bhilad – 396105, |
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Factory 4 : |
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Factory 5 : |
Rajasthan Textile Mills, Bhawanimandi – 326502, |
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Factory 6 : |
Rajasthan Textile Mills Pachpahar road Bhawanimandi – 326502, |
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Factory 7 : |
Chenab Textile Mills Kathua – 184102, Jammu and Kashmir - India |
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DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. C.S. Nopany |
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Designation : |
Chairman |
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Name : |
Mr. S. M. Agarwal |
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Designation : |
Director |
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Name : |
Mr. U. K. Khaitan |
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Designation : |
Director |
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Name : |
Mr. Amit Dalal |
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Designation : |
Director |
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Name : |
Mr. Rajan A. Dalal |
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Designation : |
Director |
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Name : |
Mr. Ashok Mittal |
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Designation : |
Director |
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Name : |
Mr. Rajiv K. Podar |
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Designation : |
Director |
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Name : |
Dr. Mahmoodur H. Rahman |
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Designation : |
Director |
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Name : |
Mr. Chaturbhuj Singhania |
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Designation : |
Whole time Director and CFO |
KEY EXECUTIVES
|
Executives |
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Corporate office: |
Mr. S.K. Khandelia Designation : President Mr. Chaturbhuj Singhania Designation : Wholetime Director and Chief Financial Officer Mr. D.R. Prabhu Designation : Secretary |
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Unit Heads |
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Bhawanimandi Unit: |
Mr. S.S. Maheshwari – Joint Executive President |
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Kathua Unit: |
Mr. K.C. Sharma – Joint Executive President |
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Daheli Unit: |
Mr. K.C. Agarwal – Joint Executive President |
SHAREHOLDING PATTERN
As on: 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
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|
6971235 |
63.83 |
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|
6971235 |
63.83 |
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Total shareholding of Promoter and Promoter Group (A) |
6971235 |
63.83 |
|
(B) Public Shareholding |
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|
|
|
|
|
|
|
2687 |
0.02 |
|
|
2687 |
0.02 |
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|
|
|
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|
2018781 |
18.48 |
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|
|
|
|
|
1240955 |
11.36 |
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|
657979 |
6.02 |
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|
30271 |
0.28 |
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|
30271 |
0.28 |
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|
3947986 |
36.15 |
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Total Public shareholding (B) |
3950673 |
36.17 |
|
Total (A)+(B) |
10921908 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
10921908 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Synthetic Staple Fibres Yarn, Man made Fibres
blended yarn and Cotton Yarn and Fabrics. |
GENERAL INFORMATION
|
No. of Employees : |
11198 (Approximately) |
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Bankers : |
· Punjab National Bank · The Jammu and Kashmir Bank Limited · State Bank of Bikaner and Jaipur · State Bank of India · State Bank of Hyderabad · Bank of Maharashtra · IDBI Bank Limited · ICICI Bank Limited · United Bank of India · Axis Bank Limited · The Jhalawar Nagrik Sahkari Bank Limited |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
M/s. Singhi and Company Chartered Accountant |
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Address : |
401 and 408, Pragati House 47-48, Nehru Place New Delhi – 110019, India |
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Branch Auditors: |
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Name : |
M/s. S.R. Batliboi and Company Chartered Accountants |
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Address : |
Golf View, Corporate Tower 3 Sector 42, Sector Road Gurgaon - 122002, India |
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 Millions |
|
5000000 |
Preference Shares |
Rs.10/- each |
Rs.50.000 Millions |
|
|
Total |
|
Rs.300.000
Millions |
|
|
|
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|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
10921908 |
Equity Shares |
Rs.10/- each |
Rs.109.219
Millions |
|
|
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Terms/ rights
attached to Equity shares
Each holder of equity shares is entitled to one vote per share. 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 shareholders. There is no restriction on distribution of dividend. However same is subject to the approval of the shareholders in the Annual General Meeting.
Reconciliation of the
number of Equity Shares outstanding:
|
Particulars |
|
|
|
Equity shares outstanding at the beginning of the year |
10921908 |
10921908 |
|
Equity shares allotted during the year |
- |
- |
|
Equity shares outstanding at the end the of the year |
10921908 |
10921908 |
Shareholder holding
more than 5 percent Equity shares of the Company:
|
S. No. Name of shareholder |
As at 31st March, 2012 |
|
|
|
Number of Shares held |
Percentage of holding |
|
1 Uttar Pradesh Trading Company Limited |
2027798 |
18.57 |
|
2 Hargaon Investment and Trading Company Limited |
1140931 |
10.45 |
|
3 New India Retailing and Investment Limited |
1137536 |
10.42 |
|
4 Yashovardhan Investment and Trading Company Limited |
991224 |
9.08 |
|
5 Birla Institute of Technology and Science |
752439 |
6.89 |
|
6 Ronson Traders Limited |
648249 |
5.94 |
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 |
109.219 |
109.219 |
109.219 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2649.437 |
2395.569 |
1347.351 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
2758.656 |
2504.788 |
1456.570 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5585.671 |
6957.046 |
8510.315 |
|
|
2] Unsecured Loans |
456.839 |
285.999 |
287.675 |
|
|
TOTAL BORROWING |
6042.510 |
7243.045 |
8797.990 |
|
|
DEFERRED TAX LIABILITIES |
471.503 |
498.996 |
196.685 |
|
|
Deferred
Government subsidies |
10.309 |
13.575 |
17.818 |
|
|
|
|
|
|
|
|
TOTAL |
9282.978 |
10260.404 |
10469.063 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
5821.268 |
6054.644 |
6433.470 |
|
|
Capital work-in-progress |
126.032 |
34.757 |
40.175 |
|
|
|
|
|
|
|
|
INVESTMENT |
518.207 |
16.507 |
4.507 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2970.859
|
3419.592 |
2841.497
|
|
|
Sundry Debtors |
1123.359
|
1326.491 |
958.164
|
|
|
Cash & Bank Balances |
38.989
|
46.440 |
67.478
|
|
|
Other Current Assets |
348.337
|
572.042 |
545.729
|
|
|
Loans & Advances |
501.150
|
520.526 |
199.001
|
|
Total
Current Assets |
4982.694
|
5885.091 |
4611.869 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
341.130
|
303.851 |
|
|
|
Other Current Liabilities |
1640.748
|
1232.873 |
527.494
|
|
|
Provisions |
183.345
|
193.871 |
93.464
|
|
Total
Current Liabilities |
2165.223
|
1730.595 |
620.958 |
|
|
Net Current Assets |
2817.471
|
4154.496 |
3990.911
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9282.978 |
10260.404 |
10469.063 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
15370.105 |
15816.474 |
11469.149 |
|
|
|
Other Income |
315.699 |
344.411 |
298.270 |
|
|
|
TOTAL (A) |
15685.804 |
16160.885 |
11767.419 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
9285.654 |
|
10226.463 |
|
|
|
Purchase of Traded Goods |
1068.750 |
1958.184 |
|
|
|
|
Changes in Inventories of Finished Goods |
(299.060) |
(238.965) |
|
|
|
|
Employee Benefits Expense |
1145.012 |
1075.130 |
|
|
|
|
Other Expenses |
2702.803 |
2481.867 |
|
|
|
|
TOTAL (B) |
13903.159 |
13412.496 |
10226.463 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1782.645 |
2748.389 |
1540.956 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
696.567 |
592.318 |
528.651 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1086.078 |
2156.071 |
1012.305 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
690.036 |
678.620 |
669.094 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
396.042 |
1477.451 |
343.211 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
78.705 |
334.030 |
80.069 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
317.337 |
1143.421 |
263.142 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1370.363 |
442.145 |
240.843 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
54.610 |
81.914 |
0.000 |
|
|
|
Corporate dividend tax |
8.859 |
13.289 |
0.000 |
|
|
|
Transfer to General Reserve |
40.000 |
120.000 |
30.000 |
|
|
|
Dividend |
0.000 |
0.000 |
27.305 |
|
|
|
Tax on Dividend |
0.000 |
0.000 |
4.535 |
|
|
BALANCE CARRIED
TO THE B/S |
1584.231 |
1370.363 |
442.145 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export on F.O.B. Basis |
3725.353 |
5130.132 |
3001.901 |
|
|
TOTAL EARNINGS |
3725.353 |
5130.132 |
3001.901 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
127.295 |
173.399 |
126.385 |
|
|
|
Yarn purchase |
0.000 |
9.031 |
0.000 |
|
|
|
Stores & Spares |
43.482 |
44.574 |
45.766 |
|
|
|
Capital Goods |
222.529 |
93.430 |
37.245 |
|
|
TOTAL IMPORTS |
393.306 |
320.434 |
209.396 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
29.06 |
104.69 |
24.09 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
4103.200 |
4283.100 |
4091.200 |
|
Total Expenditure |
3730.300 |
3728.000 |
3573.500 |
|
PBIDT (Excl OI) |
372.900 |
555.100 |
517.700 |
|
Other Income |
117.600 |
66.100 |
112.600 |
|
Operating Profit |
490.500 |
621.200 |
630.300 |
|
Interest |
180.700 |
172.900 |
156.800 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
309.800 |
448.300 |
473.300 |
|
Depreciation |
175.800 |
176.900 |
178.600 |
|
Profit Before Tax |
134.000 |
271.400 |
294.700 |
|
Tax |
15.100 |
27.300 |
47.600 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
118.900 |
244.100 |
247.100 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
118.900 |
244.100 |
247.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.02
|
7.08 |
2.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.58
|
9.34 |
2.91 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.67
|
12.37 |
7.44 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.14
|
0.59 |
0.23 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.19
|
2.89 |
6.04 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.30
|
3.40 |
7.42 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
No |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
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 |
No |
Nature of Operations:
The Company is a manufacturer of Synthetic Staple Fibres Yarn, Man made Fibres blended yarn and Cotton Yarn and Fabrics. It has two spinning units viz. Rajasthan Textile Mills, Bhawanimandi (Raj) and Chenab Textile Mills, Kathua (J and K), one weaving and processing unit viz. Damanganga Fabrics, one Garments unit viz. Damanganga Garments and one Home Textiles unit viz. Damanganga Home Textiles at Village Daheli, near Bhilad (Gujarat) .
Capital Projects:
The Company invested Rs. 530.000 Millions during the year for capital projects and intends to further invest Rs. 710.000 Millions in 2012-13 for modernisation, upgradation and balancing capital equipments. The capital purchases are being financed by internal accruals and loans from Banks under Technology Upgradation Fund Scheme of the Government of India.
Global economic
scenario:
Countries across the globe witnessed economic turmoil through most part of 2011. USA had issues of debt and growing unemployment. Euro zone crisis was spreading like a cancerous disease with its ill-effects harming the world, at large. The Arab World faced political turmoil hampering the global crude oil supply. Asia too had its own challenges. But, China and India emerged as the hope for rest of the world. However, towards the fag end of 2011, the global economy witnessed some encouraging signs of moderate growth as the threats from the above mentioned factors were milder than expected. According to the World Economic Outlook, the global economy grew by 2.8% in 2011.
Indian economic
scenario:
India’s economy witnessed a slowdown in 2011-12, largely owing to global factors combined with domestic challenges like tightening of the monetary policy, high inflation, weakening industrial growth and investments. India’s industrial production witnessed a 2.8% growth during the year. Exports continued to be robust, registering a growth rate of 23.5 %, while imports witnessed 29.4% growth the trade deficit ballooned to USD 185.8 billion during the year 2011-12 owing to an increase in international prices of imported commodities - oil and gold and silver, exerting pressure on exchange rate and Indian rupee. This led to widening of current account deficit and lowering net accretion to reserves.
Global textile and
apparel industry review:
Post 2009 recession, the developed nations witnessed marginal revival of demands as a result of stimulus measures being implemented by governments of these nations. The industry has witnessed a shift of manufacturing activities from developed to developing nations, especially China and India, to meet their demands for apparel and textiles. During 2010, the industry was valued around USD 612 billion.
Outlook:
Dynamic consumer preferences and demographic structure of US and EU is impacting the global textiles and apparels industry. A number of avenues have opened up in China and India. As a result, China is expected to become the second largest apparel market after the US. China and India, combined, are expected to stabilise their textile and apparel trade in the next 6-8 years. The total global textiles and apparels trade is expected to reach USD 1 trillion by 2020. Among other emerging nations, Bangladesh, Vietnam and Cambodia are expected to play a major role in world trade. South Asia and ASEAN countries are expected to increase their export shares.
The global textiles fibre and spun yarn market is expected to reach 93 million tonnes and 47.3 million tonnes respectively by 2015 on account of
· Increasing global textile trade following the expiry of restrictive agreements
· Continuing shift in production to low cost countries
· Restoration of consumer confidence
· Recovery in demand for textiles, and
· Rising market potential in developing regions
Overview
The Indian textile sector contributes 4% to the country’s gross domestic product (GDP), accounts for 14% of industrial production and 10% to country’s export. The industry provides direct employment to about 35 million people and is the second largest provider of employment after the agricultural sector. The Indian textile industry is estimated to be of the size of USD 75 billion in 2011-12. India’s textile export performance has continued to lag its global competitors in last few years. It has a meager 4.3 % share of the world market compared to China’s 20.3% and has witnessed a growth of 11% between 2007-12. During 2011-12, the industry witnessed a challenging environment owing to unprecedented volatility in raw material prices and exchange rate fluctuations, European debt crisis, high inflation and interest rates. Finished goods exports are estimated to be USD 34 billion in 2011-12 as against USD 26.8 billion in 2010-11. India is looking to set textile export target at USD 38 billion in 2012-13. While economic uncertainties in the US and Europe are expected to persist in the medium term, growing demand in new markets like Latin America and Africa will help India’s textile exports.
Financial review
Owing to challenging external scenario, the Company could not maintain the growth levels reported in the previous year. But, the Company is quite optimistic about its future performance owing to its strong fundamentals and strategies adopted. Following is the brief summary of the financial performance
Contingent
Liabilities
1 Claim against the Company not acknowledged as debts:
a) Labour Matters, except for which the liability is unascertainable 84.31 93.84
b) Demand raised by Excise Department for various matters 66.28 66.28
c) Demand for Service Tax, being contested by the Company 23.91 23.91
d) Demand for Entry Tax (including penalty and interest): 365.25 317.47
( stay granted by the Tribunal)
Note: The management believes that the Company has a strong chance of success in above mentioned cases and hence, no provision their against is considered necessary.
2 Bills Discounted with Bankers 1961.03 5696.09 (Since Realised upto 30.04.2012 Rs.110.611 Millions, Previous year Rs.203.784 Millions)
3 The Company has procured certain capital goods under EPCG Scheme at concessional rate of duty. As on 31st March, 2012, the Company is contingently liable to pay differential custom duty Rs.325.792 Millions (Previous year Rs.433.458 Millions) on such import. In view of past export performance and future projections, the management is hopeful of completing the export obligation within stipulated time, and expects no cash outflow on this account.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012
(Rs in Millions)
|
Sr. No. |
Particulars |
3 months ended |
Preceding 3 months ended |
Nine Months figures for current period ended |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Income from
operations |
|
|
|
|
(a) |
Net Sales/ Income from Operations |
4059.700 |
4245.200 |
12373.000 |
|
|
(Net of excise duty) |
|
|
|
|
(b) |
Other Operating Income |
31.500 |
37.900 |
104.500 |
|
|
Total income from
operations (net) |
4091.200 |
4283.100 |
12477.500 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of materials consumed |
2439.800 |
2353.100 |
7043.300 |
|
|
b) Purchases of stock-in-trade |
285.100 |
267.800 |
737.700 |
|
|
c) Changes in inventories of finished goods, |
(207.700) |
76.900 |
136.700 |
|
|
work-in-progress and stock-in-trade |
|
|
|
|
|
d) Employee benefits expense |
352.900 |
328.200 |
991.200 |
|
|
e) Depreciation and amortisation expense |
178.800 |
176.900 |
531.500 |
|
|
f) Other expenses |
703.400 |
728.200 |
2106.200 |
|
|
Total expenses |
3752.300 |
3931.100 |
11546.600 |
|
3 |
Profit / (Loss)
from operations before other income, finance
costs and exceptional items (1-2) |
338.900 |
352.000 |
930.900 |
|
4 |
Other Income |
112.600 |
92.300 |
279.600 |
|
5 |
Profit / (Loss) from
ordinary activities before finance
costs and exceptional items(3+4) |
451.500 |
444.300 |
1210.500 |
|
6 |
Finance costs |
156.800 |
172.900 |
510.400 |
|
7 |
Profit / (Loss)
from ordinary activities after finance costs but
before exceptional items(5-6) |
294.700 |
271.400 |
700.100 |
|
8 |
Exceptional items |
- |
- |
- |
|
9 |
Profit/(Loss) from
Ordinary Activities before
tax (7+8) |
294.700 |
271.400 |
700.100 |
|
10 |
Tax Expenses |
|
|
|
|
|
-Current |
57.200 |
54.400 |
138.300 |
|
|
-MAT credit (Entitlement)/ Reversal |
(3.400) |
(6.800) |
(7.400) |
|
|
-Earlier Years |
- |
- |
- |
|
|
-Deferred (net) |
(6.200) |
(20.300) |
(40.900) |
|
11 |
Net Profit/(Loss)
from Ordinary Activities after
tax (9-10) |
247.100 |
244.100 |
610.100 |
|
12 |
Extraordinary items (net of tax expense) |
- |
- |
- |
|
13 |
Net Profit/(Loss)
for the period (11-12) |
247.100 |
244.100 |
610.100 |
|
14 |
Paid-up equity share capital |
109.200 |
109.200 |
109.200 |
|
|
(Face value of Rs. 10 per share) |
|
|
|
|
15 |
Reserves excluding Revaluation Reserves |
|
|
|
|
|
as per Balance Sheet of previous accounting year |
|
|
|
|
16 |
Earnings Per Share
(Not annualised) (Rs.) |
|
|
|
|
|
- Cash |
38.43 |
36.69 |
100.78 |
|
|
- Basic and diluted |
22.62 |
22.35 |
55.86 |
|
Sr. No. |
Particulars |
3 months ended 31.12.2012 |
Preceding 3 months ended 30.09.2012 |
Nine Months figures for currentperiod ended 31.12.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
1 |
Public shareholding
: |
|
|
|
|
|
- No. of Shares |
3950673 |
3950673 |
3950673 |
|
|
- Percentage of Shareholding |
36.17 |
36.17 |
36.17 |
|
2 |
Promoters and
promoter group shareholding: (a) Pledged/Encumbered |
|
|
|
|
|
- Number of shares |
3650000 |
3650000 |
3650000 |
|
|
- Percentage of shares (as a % of |
52.36 |
52.36 |
52.36 |
|
|
the total shareholding of promoter |
|
|
|
|
|
and promoter group) |
|
|
|
|
|
- Percentage of shares (as a % of |
33.42 |
33.42 |
33.42 |
|
|
the total share capital of the |
|
|
|
|
|
Company) |
|
|
|
|
|
(b) Non-encumbered |
|
|
|
|
|
- Number of Shares |
3321235 |
3321235 |
3321235 |
|
|
- Percentage of Shares (as a % of |
47.64 |
47.64 |
47.64 |
|
|
the total shareholding of promoter |
|
|
|
|
|
and promoter group) |
|
|
|
|
|
- Percentage of shares (as a % of |
30.41 |
30.41 |
30.41 |
|
|
the total share capital of the |
|
|
|
|
|
Company) |
|
|
|
|
|
Particulars |
3 months ended 31.12.2012 |
|
B |
INVESTOR COMPLAINTS
: |
|
|
|
Pending at the beginning of the quarter |
NIL |
|
|
Received during the quarter |
6 |
|
|
Disposed of during the quarter |
6 |
|
|
Remaining unresolved at the end of the quarter |
NIL |
SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs in Millions)
|
Sr. N0. |
Particulars |
3 months ended 31.12.2012 |
Preceding 3 months ended 30.09.2012 |
Nine Months figures for current period ended 31.12.2012 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
1 |
Segment Revenue : |
|
|
|
|
|
(a) Yarn |
3847.800 |
4025.300 |
11775.800 |
|
|
(b) Fabrics and Apparels |
297.600 |
315.200 |
884.600 |
|
|
Total |
4145.400 |
4340.500 |
12660.400 |
|
|
Less: Inter Segment Revenue |
54.200 |
57.400 |
182.900 |
|
|
Total Income from
Operations (net) |
4091.200 |
4283.100 |
12477.500 |
|
2 |
Segment Result : Profit /(Loss) before
Tax and Finance costs from each segment |
|
|
|
|
|
(a) Yarn |
423.200 |
436.100 |
1093.700 |
|
|
(b) Fabrics and Apparels |
(24.200) |
(27.300) |
(58.900) |
|
|
Total |
399.000 |
408.800 |
1034.800 |
|
|
Less : Finance costs |
156.800 |
172.900 |
510.400 |
|
|
Add : Other un-allocable income net of un-allocable expenditure |
52.500 |
35.500 |
175.700 |
|
|
Total Profit/(Loss)
before tax |
294.700 |
271.400 |
700.100 |
|
3 |
Capital Employed : (Segment assets -
Segment liabilities) |
|
|
|
|
|
(a) Yarn |
7847.800 |
8033.900 |
7847.800 |
|
|
(b) Fabrics and Apparels |
1219.600 |
1253.400 |
1219.600 |
|
|
Add: Un-allocated Corporate Assets/ ( Liabilities ) (net) |
1018.000 |
1015.500 |
1018.000 |
|
|
Total |
10085.400 |
10302.800 |
10085.400 |
Notes:
(1) The figures of the previous period/year have been re-grouped/re-arranged and/or recast wherever found necessary.
(2) The above results have been reviewed by the Statutory Auditors and the Audit Committee and have been taken on record by the Board of Directors at its meeting held on 31st January, 2013.
PRESS RELEASE:
SUTLEJ TEXTILES AND INDUSTRIES BAGS “NIRYAT SHREE” GOLD TROPHY AWARD
2009-2010 PRESENTED BY HON’BLE PRESIDENT OF INDIA
Sutlej Textiles and Industries Limited, the flagship Textile Company belonging to the illustrious “K.K. Birla Group” has been awarded the prestigious “Niryat Shree” Gold Trophy by Hon’ble President of India, Shri Pranab Kumar Mukherjee on 5th October 2012 in a glittering ceremony in Vigyan Bhawan, New Delhi. The award was received by Shri S.K. Khandelia, President of the Company for achieving 77% growth in exports for the year 2009-10.
Sutlej Textiles is a one stop shop for all types of yarns and is an integrated player for production from yarn to fabrics, home textiles and garments and is having a large production capacity, ie., 260872 spindles for spinning of yarn, 6 Million meters per annum for Apparel fabric weaving, 1.6 mn trousers per annum and 3 Million meters per annum for Home Textiles fabric production in its different units located in J and K, Rajasthan and Gujarat.
The Company produces wide range of Poly/Viscose, Poly/Wool, 100% Wool, Linen and Stretch fabrics and supplies its premium products to big retailers like Gap, Levis, CK, TMW in U.S.A., Burton, Next, M and S in U.K. In Home Textiles it produces wide range of curtains and Upholstery and made ups and supplies not only to all over India but also to 25 countries all over the globe.
The Company has significant presence in export in more than 60 countries as well as domestic market with a wide variety of quality products. The Company has “Trading House” status and is also holding ISO 9001 quality certification. It also has SA-8000 certificate for social compliance.
The Company has been modernizing from time to time and is also continuously expanding since inception. It is planning to further expand its spinning, weaving and Home Textiles capacities in the near future.
FIXED ASSETS:
- Tangible Assets
- Land
- Buildings
- Plant and Machinery
- Vehicles
- Furniture and Office Equipments
- Intangible Assets
- Designing Rights
- Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l Anti-Money
Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.04 |
|
|
1 |
Rs.81.80 |
|
Euro |
1 |
Rs.71.41 |
INFORMATION DETAILS
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
55 |
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.