MIRA
INFORM REPORT
|
Report Date : |
03.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
SOMA TEXTILES AND INDUSTRIES LIMITED |
|
|
|
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Formerly Known
As : |
AUSTIN PHARMACEUTICALS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
29.03.1940 |
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Com. Reg. No.: |
21-010070 |
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Capital
Investment / Paid-up Capital : |
Rs. 332.275 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L51909WB1940PLC010070 |
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|
|
Legal Form : |
Public Limited Liability Company. The company’s shares are listed on the
Stock Exchanges. |
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Line of Business
: |
Manufacturer and exporters of premium quality combed
cotton yarns, single and multifold sports and denim fabrics. |
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|
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (26) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3000000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow But Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having a moderate track record.
There appears loss in the current years recorded by the company. The external
borrowing of the company appears to be huge. The liquidity position of the
company is weak. However, trade relations are reported to be fair. Business is active.
Payments are reported to be slow but correct. The company can be considered for business dealings with some caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
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 |
CRISIL |
|
Rating |
D (Long Term Rating) |
|
Rating Explanation |
This rating are in default or are expected to be in default soon. |
|
Date |
March 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.: |
Not Available |
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Fax No.: |
Not Available |
|
E-Mail : |
|
|
Website : |
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|
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|
Head Office / Factory 1 : |
|
|
Tel No.: |
91-79-22743285-88 |
|
Fax No.: |
91-79-22745653 |
|
|
|
|
Factory 2 : |
Plot No.D-49, MIDC, Baramati-413133, District, Pune, |
|
Tel No.: |
91-2112-243716, 243856 |
|
Fax No.: |
91+2112-243717 |
|
|
|
|
Corporate Office : |
|
|
Tel No.: |
91-22-22836519 / 20, 2826 076 / 77 |
|
Fax No.: |
91+22-22851173 |
|
E-Mail : |
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|
|
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Branch Office : |
Devnandan Mega Mall,
Office No. 416-420, 4th Floor, Opposite Sanyas Ashram, Ashram Road,
Ahmedabad-380 006, Gujarat, India |
|
Tel No.: |
91-7-26582381 /
82 / 83 / 84 |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. S K Somany |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. A K Somany |
|
Designation : |
Managing Director |
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|
|
|
Name : |
Mr. Shrikant Bhat |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Mr. B.L Dhoot |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. B K Hurkat |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Anoop Sharma |
|
Designation : |
Nominee Director – IDBI Bank Limited |
KEY EXECUTIVES
|
Name : |
Mr. R S Sharma |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2012
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(1) Indian |
|
|
|
|
3972281 |
12.03 |
|
|
10684960 |
32.35 |
|
Sub Total |
14657241 |
44.37 |
|
(2) Foreign |
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
14657241 |
44.37 |
|
|
|
|
|
(1) Institutions |
|
|
|
Mutual Funds / UTI |
2344 |
0.01 |
|
|
10000 |
0.03 |
|
|
6607000 |
20 |
|
Sub Total |
6619344 |
20.04 |
|
(2) Non-Institutions |
|
|
|
|
2691378 |
8.15 |
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs. 0.100
Million |
6175222 |
18.69 |
|
Individual shareholders holding nominal share capital in excess of Rs.
0.100 Million |
2828814 |
8.56 |
|
Any Others (Specify) |
61001 |
0.18 |
|
Non Resident Indians |
56322 |
0.17 |
|
Clearing Members |
4679 |
0.01 |
|
|
11756415 |
35.59 |
|
Total Public
shareholding (B) |
18375759 |
55.63 |
|
Total (A)+(B) |
33033000 |
100 |
|
|
0 |
0 |
|
(1) Promoter and
Promoter Group |
0 |
0 |
|
(2) Public |
0 |
0 |
|
|
0 |
0 |
|
Total
(A)+(B)+(C) |
33033000 |
0 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and exporters of premium quality combed
cotton yarns, single and multifold sports and denim fabrics. |
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Products : |
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PRODUCTION STATUS (AS ON : 31.03.2011)
|
Particulars |
Unit |
Registered
|
Installed
Capacity |
|
Ahmedabad Unit |
|
|
|
|
Ring Spindles |
Nos. |
25,200 |
23,568 |
|
Rotors |
Nos. |
552 |
384 |
|
Looms |
Nos. |
476 |
144 |
|
Garment stitching Machines |
Nos. |
NA |
288 |
|
Baramati Unit |
|
|
|
|
Ring Spindles |
Nos. |
60,480 |
30,240 |
The registered and
installed capacities are as per Certificates given by the Management on which
the Auditors have relied.
|
Particulars |
Unit |
Actual
Production |
|
Packed Cloth |
Metres |
18,119,033 |
|
Garments |
Pieces |
457,041 |
|
Yarn* |
Kgs. |
4,733,996 |
|
Own Waste |
Kgs. |
2,141,085 |
* Excludes yarn spun for own consumption Kgs. 2,573,529
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
·
IDBI Bank Limited ·
Dena Bank ·
State Bank of India ·
AXIS Bank Limited ·
Export Import Bank of India ·
ICICI Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Pipara and Company Chartered Accountant |
|
Address : |
“Pipara Corporate House”, Near Gruth Finance, Netaji Gruh Finance, Netaji
Marg, Law Garden, Ahmedabad-380006, Gujarat, India |
|
|
|
|
Associates : |
·
Soma Textile Fzc, Sharjah, UAE |
|
|
|
|
Other Related Parties : |
·
Somany Evergreen Knits Limited ·
Kechak Credit and Finvest Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
50000000 |
Equity Shares |
Rs.10/- each |
Rs. 500.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33418300 |
Equity Shares |
Rs.10/- each |
Rs. 334.183
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
33033000 |
Equity Shares |
Rs.10/- each |
Rs. 330.330
Millions |
|
Add |
Subscribed and not paid up (385000 Equity
Shares) |
|
Rs. 1.945 Millions |
|
|
TOTAL |
|
Rs. 332.275
Millions |
NOTES
1.1
The Company has only one class of equity shares
having a par value of Rs. 10 each. Each holder of equity shares is entitled to one
vote per share. In the event of liquidation, the equity shareholders are
eligible to receive the remaining assets of the Company, after distribution of
all preferential amounts, in proportion to their shareholding in accordance
with the provisions of the Companies Act, 1956.
1.2
Reconciliation of the number of shares outstanding
as at 31st March, 2012 and 31st March, 2011 is set out
below:-
|
|
As at 31ST
March, 2012 |
|
Equity Shares at the beginning of the year |
33,033,000 |
|
Add: Shares issued during the year |
-- |
|
Less: Shares bought back during the year |
-- |
|
Equity Shares at
the end of the year |
33,033,000 |
1.3
The Detail of Shareholders holding more than 5%
Shares:
|
Name of
Shareholder |
As at 31ST
March, 2012 |
|
|
No. of Shares
held |
% of Holding |
|
|
Krishnaa Glass Private Limited |
6,677,716 |
20.22 |
|
Sarvopari Investments Private Limited |
4,007,244 |
12.13 |
|
Mavi Investment Fund Limited |
6,606,600 |
20.00 |
|
Surendra Kumar Somany |
3,068,274 |
9.29 |
1.4 Rest of
disclosures as required to be given under share capital pursuant to Part I of
Schedule VI to the Companies Act, 1956 are not applicable.
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 |
332.275 |
332.275 |
332.275 |
|
|
2] Share Application Money |
97.500 |
97.500 |
97.500 |
|
|
3] Reserves & Surplus |
342.501 |
417.110 |
464.575 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
772.276 |
846.885 |
894.350 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
1746.906 |
1665.432 |
1837.525 |
|
|
2] Unsecured Loans |
54.733 |
40.229 |
4.741 |
|
|
TOTAL BORROWING |
1801.639 |
1705.661 |
1842.266 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
2573.915 |
2552.546 |
2736.616 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
1094.215 |
1225.886 |
1359.270 |
|
|
Capital work-in-progress |
17.968 |
6.651 |
0.786 |
|
|
|
|
|
|
|
|
INVESTMENT |
3.442 |
3.442 |
3.443 |
|
|
DEFERREX TAX ASSETS |
37.608 |
32.108 |
21.408 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
632.864
|
716.312 |
619.783 |
|
|
Sundry Debtors |
300.237
|
291.036 |
225.092 |
|
|
Cash & Bank Balances |
19.028
|
24.977 |
42.365 |
|
|
Other Current Assets |
91.809
|
108.426 |
83.416 |
|
|
Loans & Advances |
849.373
|
760.422 |
742.339 |
|
Total
Current Assets |
1893.311
|
1901.173 |
1712.995 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
155.338
|
370.505 |
314.471 |
|
|
Other Current Liabilities |
274.665
|
204.679 |
22.928 |
|
|
Provisions |
42.626
|
41.530 |
34.046 |
|
Total
Current Liabilities |
472.629
|
616.714 |
371.445 |
|
|
Net Current Assets |
1420.682
|
1284.459 |
1341.550 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
10.159 |
|
|
|
|
|
|
|
|
TOTAL |
2573.915 |
2552.546 |
2736.616 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2661.392 |
2783.333 |
2075.559 |
|
|
|
Other Income |
62.302 |
62.844 |
80.186 |
|
|
|
TOTAL (A) |
2723.694 |
2846.177 |
2155.745 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of
materials consumed |
1620.275 |
1746.070 |
2027.742 |
|
|
|
Purchases of
Stock-in-Trade |
0.000 |
10.410 |
0.000 |
|
|
|
Employee benefits expense |
175.346 |
182.043 |
0.000 |
|
|
|
Other expenses |
647.691 |
723.189 |
0.000 |
|
|
|
Changes in
inventories of finished goods and work-in-progress |
43.809 |
(109.136) |
0.000 |
|
|
|
Prior Period
Items |
2.810 |
(18.574) |
(1.181) |
|
|
|
Exceptional
Items |
(96.030) |
7.463 |
89.236 |
|
|
|
TOTAL (B) |
2393.901 |
2541.465 |
2115.797 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) I |
329.793 |
304.712 |
39.948 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
242.941 |
197.620 |
157.611 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
86.852 |
107.092 |
(117.663) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
165.539 |
165.258 |
165.502 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
(78.687) |
(58.166) |
(283.165) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(4.078) |
(10.700) |
(96.381) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
(74.609) |
(47.466) |
(186.784) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
NA |
(229.619) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
NA |
NA |
(416.403) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
193.924 |
321.912 |
168.485 |
|
|
TOTAL EARNINGS |
193.924 |
321.912 |
168.485 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
37.900 |
37.609 |
32.257 |
|
|
|
Capital Goods |
0.000 |
19.520 |
1.237 |
|
|
TOTAL IMPORTS |
37.9 |
57.129 |
33.494 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(2.26) |
(1.44) |
(5.65) |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
|
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
801.800 |
800.700 |
|
Total Expenditure |
715.600 |
701.700 |
|
PBIDT (Excl OI) |
86.200 |
99.000 |
|
Other Income |
12.200 |
9.700 |
|
Operating Profit |
98.400 |
108.700 |
|
Interest |
62.300 |
63.600 |
|
Exceptional Items |
73.700 |
(43.800) |
|
PBDT |
109.800 |
1.300 |
|
Depreciation |
39.200 |
40.200 |
|
Profit Before Tax |
70.600 |
(38.900) |
|
Tax |
0.000 |
0.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
70.600 |
(38.900) |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
70.600 |
(38.900) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(2.74)
|
(1.67) |
(8.66) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(2.96)
|
(2.09) |
(13.64) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.60)
|
(1.84) |
(9.15) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.10)
|
(0.07) |
(0.32) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.94
|
2.74 |
2.48 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.01
|
3.08 |
4.61 |
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 |
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) |
Yes |
|
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 |
Yes |
FINANCIAL
HIGHLIGHTS
The Financial Year
was challenging for the entire Textile Industry. The Unprecedented price
fluctuation in cotton and cotton yarn in the global and domestic markets,
coupled with frequent changes in the Central Government policies, devaluation
of the Indian Rupees cost World currencies resulted in tremendous problems for
the entire Textile value chain. The Textile spinning industry was further
subjected to problems of severe power cut and non availability of skilled
labour resulting in increased cost on the labour front. All these collectively
resulted in a reverse business scenario and due to uncertainty in the yarn
market the Company had curtailed the productivity at the Baramati Unit for two
months.
During the year,
due to the reasons mentioned above, the Revenue from Operations was lower by
4.38% at Rs. 2661.400 Millions as compared to Rs. 2783.300 Millions in the
previous year. The Company has incurred a net loss of Rs. 74.600 Millions
against the previous year net loss of Rs. 47.500 Millions.
COTTON
Although Cotton
production in India is expected to be the highest (over 35 million bales) the
volatility in the prices
neither safe
guarded the interest of farmers nor that of the mills. Added to this was the
permission to allow export of cotton under OGL which further boosted the
volatility. The Government of India was forced to stop the export of cotton for
some time to control the runaway prices.
EXPORT
The sharp increase
in the price of cotton greatly lowered the demand of both yarn and fabrics. The
FOB value of export during the year was Rs. 193.900 Millions as against Rs.
321.900 Millions in the previous year.
PROSPECT
The recession in
the European and the US market still continues but it is hoped that some
improvements in the US Economy will help to increase our exports to that
country. The Government of India has not been able to control the deficit
financing and the cost of living continues to rise unabated which has also
affected the operations of the Company.
Cost of production
increased substantially due to more than 20% rise in the Power cost and other
input costs which resulted in Indian Textile Industry becoming less competitive
in export market as a result Foreign Exchange earnings capacity of textile
industry in India has greatly reduced. In order to bring the accelerated growth
in Textile Industry, suitable incentive policy from the Government is the need
of the hour.
Notwithstanding
the current economic environment there are strong reasons to be bullish on the
country’s long term growth potential. Favorable demographics a large growing
middle class with increasing disposal incomes support a strong consumption
story.
It is worth to
note that the Government proposes to increase the investment in this sector to
generate more employment through various schemes viz., Scheme for Integrated
Textile Parks (SIP), Technology Up-gradation Fund Scheme (TUFs), Integrated
Skill Development Scheme (ISDS), Technology Mission on Technical Textiles
(TMTT). The allocation for this sector during the 12th Five Year Plan is
proposed to be increased to around Rs. 496500.000 Millions as against an
allocation of Rs.140000.000 Millions during the 11th Five Year Plan.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY STRUCTURE
Indian Textile
Industry is one of the leading textile industries in the world. Though was
predominantly un-organized industry even a few years back, but the scenario
started changing after the economic liberalization of the Indian economy in
1991. The opening up of economy gave the much-needed thrust to the Indian
textile industry, which has now successfully become one of the largest in the
world.
The Indian Textile
Industry largely depends upon the textile manufacturing and exports. It also
plays a major role in the economy of the country. India earns about 27% of its
total foreign exchange through textile exports. Further, the textile industry
contributes nearly 14% of the total industrial production and around 3% of the
GDP of the country. The Indian textile industry is also the largest in the
country in terms of the employment generation. It not only generates jobs in
its own industry, but also opens up scopes for the other ancillary sectors.
Indian textile industry currently generates employment for more than 35 million
people.
INDUSTRIAL RELATIONS
AND HUMAN RESOURCE MANAGEMENT
The Company
continued to have cordial and harmonious relations with its employees. It
considers manpower as its asset and that people had been the driving force for
growth and expansion of the Company.
INFORMATION
TECHNOLOGY
Taking into
consideration different requirements in different business verticals, the
Company has implemented different ERP accordingly. Information Technology
System is widely utilized in almost all areas of the organization and business
fetching maximum advantage out of it. The system improves overall productivity
and helps tremendously in analysis, decision making and better planning.
Information
Technology solutions are highly utilized in managing and monitoring the
manufacturing and processing of our products. Machines being used these days
are well equipped with these technologies, gives tremendous benefit with the
productivity and quality. IT is very well into implementing, managing and
supporting this.
FIXED ASSETS
· Land
· Building
· Plant and Machinery
· Furniture, Fixture and Other Equipment
· Vehicles
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30.09.2012
(Rs. in millions)
|
Sr. No. |
Particular |
Quarter Ended |
6 Months Ended |
|
|
|
|
30.09.2012 (Unaudited) |
30.06.2012 (Unaudited) |
30.09.2012 (Unaudited) |
|
1. |
Net Sales/Income
from Operations |
800.700 |
801.800 |
1602.500 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost of Material Consumed |
496.400 |
471.300 |
967.700 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress
and Stock In Trade |
(62.300) |
(4.700) |
(67.000) |
|
|
Employee Benefits Expenses |
56.000 |
48.600 |
104.600 |
|
|
Depreciation and Amortization Expenses |
40.200 |
39.200 |
79.400 |
|
|
Stores and Spares Consumption |
74.400 |
68.500 |
142.900 |
|
|
Power and Fuel |
106.600 |
106.300 |
212.900 |
|
|
Other Expenses |
30.600 |
25.600 |
56.200 |
|
|
f) Total |
741.900 |
754.800 |
1496.700 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
58.800 |
47.000 |
105.800 |
|
|
|
|
|
|
|
4. |
Other Income |
9.700 |
12.200 |
21.900 |
|
|
|
|
|
|
|
5. |
Profit Before Interest and Exceptional Items (3+4) |
68.500 |
59.200 |
127.700 |
|
|
|
|
|
|
|
6. |
Interest |
63.600 |
62.300 |
125.900 |
|
|
|
|
|
|
|
7. |
Profit After Interest but before Exceptional Items (5-6) |
4.900 |
(3.100) |
1.800 |
|
|
|
|
|
|
|
8. |
Exceptional Items |
(43.800) |
73.700 |
29.900 |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
(38.900) |
70.600 |
31.700 |
|
|
|
|
|
|
|
10. |
Tax Expense |
-- |
-- |
-- |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
(38.900) |
70.600 |
31.700 |
|
|
|
|
|
|
|
12. |
Extraordinary Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
(38.900) |
70.600 |
31.700 |
|
|
|
|
|
|
|
14. |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
332.300 |
332.300 |
332.300 |
|
|
|
|
|
|
|
15. |
Reserves Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic
and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
(1.18) |
2.14 |
0.96 |
|
|
b) Basic and diluted EPS after extraordinary items |
(1.18) |
2.14 |
0.96 |
|
|
|
|
|
|
|
17. |
Public
Shareholding |
|
|
|
|
|
-Number of Shares |
18375759 |
18375759 |
18375759 |
|
|
- Percentage of Shareholding |
55.63 |
55.63 |
55.63 |
|
|
|
|
|
|
|
18. |
Promoters
and Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
6500012 |
6500012 |
6500012 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of
promoter and promoter group) |
44.35 |
44.35 |
44.35 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
19.68 |
19.68 |
19.68 |
|
|
|
|
|
|
|
|
b)
Non Encumbered |
|
|
|
|
|
- Number of Shares |
8157229 |
8157229 |
8157229 |
|
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
55.65 |
55.65 |
55.65 |
|
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
24.69 |
24.69 |
24.69 |
|
Particulars
|
3
Months Ended 30.09.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed of during the quarter |
Nil |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES
1. The above results have been reviewed by the Audit Committee and approved
by the Board of directors at their respective meetings held on Thursday 25th
October, 2012.
2. The Auditors of the company have carried out a ‘Limited Review’ of the above
financial results.
3. Income tax including deferred tax will be determined and provided for all
the end of the financial year.
4. Earnings per share has been calculated as per Accounting Standard (AS-20)
issued by the institute of Chartered Accountants of India.
5. The business activity of the Company falls within a single primary
business segment viz ‘Textile’ and hence there is no other reportable segment
as per Accounting Standard 17 ‘Segment Reporting’ notified under Companies
(Accounting Standards) Rules, 2006.
6. Exceptional Items represent foreign exchange fluctuation and retrenchment
compensation.
7. Previous period figures have been regrouped / recast / reclassified,
wherever necessary.
STATEMENT OF
ASSETS AND LIABILITIES AS ON 30.09.2012
(Rs. In Millions)
|
PARTICULARS |
31.03.2012
UNAUDITED |
|
Equity and
liabilities |
|
|
Shareholders'
fund |
|
|
Share capital |
332.300 |
|
Reserve &
surplus |
374.200 |
|
Sub-total - Shareholders' funds |
706.500 |
|
|
|
|
Share application money pending allotment |
97.500 |
|
|
|
|
Non - current
liabilities |
|
|
Long term
borrowings |
827.300 |
|
Deferred tax
liability (net) |
0.000 |
|
Other long-term
liabilities |
5.300 |
|
Long term
provisions |
34.900 |
|
Sub-total - Non-current liabilities |
867.500 |
|
Current
liabilities |
|
|
Short term
borrowings |
966.600 |
|
Trade payables |
263.700 |
|
Other current
liabilities |
296.100 |
|
Short term
provisions |
9.100 |
|
Sub-total - Current liabilities |
1535.500 |
|
Total - Equity & Liabilities |
3207.000 |
|
|
|
|
Assets |
|
|
Non-current
assets |
|
|
Fixed assets |
1075.600 |
|
Non-current
investment |
3.400 |
|
Deferred tax
assets |
37.600 |
|
Long term loans
& advances |
864.300 |
|
Other
non-current assets |
13.000 |
|
Sub-total - Non-current Assets |
1993.900 |
|
Current assets |
|
|
Inventories |
738.600 |
|
Trade
receivables |
335.700 |
|
Cash & bank
balances |
39.800 |
|
Short term loans
& advances |
27.100 |
|
Other current
assets |
71.900 |
|
Sub-total - Current Assets |
1213.100 |
|
Total – Assets |
3207.000 |
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. 54.38 |
|
|
1 |
Rs. 88.75 |
|
Euro |
1 |
Rs. 72.19 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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.