MIRA
INFORM REPORT
|
Report Date : |
11.01.2013 |
IDENTIFICATION DETAILS
|
Name : |
MAXWELL INDUSTRIES LIMITED |
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Registered
Office : |
C-6, Road No.22, M.I.D.C., Marol, Andheri (East), Mumbai – 400 093, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
14.01.1991 |
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Com. Reg. No.: |
11-059804 |
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Capital
Investment / Paid-up Capital : |
Rs.244.649
millions |
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CIN No.: [Company Identification
No.] |
L18101MH1991PLC059804 |
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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, Marketer and
Distributor of Men's, Women's Inner Wears and Socks. |
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No. of Employees
: |
1800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 3971000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established and a reputed company having satisfactory track record. Trade
relations are reported as fair. Business is active. Payments are reported to
be regular and as per commitments. The company can
be considered normal for business dealings at usual trade terms and
conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
|
A1 |
A1 |
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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
|
Source
: CIA |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
BBB (Cash Credit) |
|
Rating Explanation |
Having moderate degree of safety regarding timely servicing of
financial obligation it carry moderate credit risk. |
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Date |
September, 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/ Head Office/ Branch
Office 1 : |
C-6, Road No.22, M.I.D.C., Marol, Andheri (East), Mumbai – 400 093, |
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Tel. No.: |
91-22-28257624/ 28257627/ 28257633/ 28226151/ 40209000/ 66920478 |
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Fax No.: |
91-22-28371023/ 24 |
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Email : |
corpcomm@viporg.com info@maxwellgobi.com |
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Website : |
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Plant Location : |
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Factory 1 : |
Knitting Unit: 360/13, Ganesh Industrial
Estate.Village Kachigam, Nani Daman – 396 210, |
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Factory 2 : |
Processing House: 13-15, SIPCOT, Perundurai,
Erode – 638 052, |
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Factory 3 : |
Processing House: C119, TTC Industrial Area,
MIDC, |
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Factory 4 : |
Stitching Units: 92/94, New GIDC, Umbergaon
– 396 171, |
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Factory 5 : |
Stitching Units: SF-125/126/127,
Appachimarmadam, Thingalur, Erode – 638 055, |
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Factory 6 : |
Socks Unit: 360/7, Ganesh Industrial Estate,
Village Kachigam, Nani Daman – 396 210, |
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Branch Office 2 : |
Heilgers Compound, 55, |
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Tel. No.: |
91-33-23512274 |
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Fax No.: |
91-33-23518724 |
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Branch Office 3 : |
B - 163, II Floor, Okhla Industrial Area,
Phase - I, |
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Tel. No.: |
91-11-26818529/ 26810321 |
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Fax No.: |
91-11-26810841 |
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Branch Office 4 : |
No.1037/16, Ground Floor, Ist Main, Dr
Rajkumar Road, 4th Block, Rajajinagar, Bangalore – 560 010,
Karnataka, India |
|
Tel. No.: |
91-80-23302244/ 45/ 46 |
DIRECTORS
As on 31.03.2012
|
Name : |
Mr. Jaykumar K. Pathare |
|
Designation : |
Chairman |
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Name : |
Mr. Sunil J. Pathare |
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Designation : |
Vice Chairman and Managing Director |
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Date of Birth/Age : |
17.07.1971 |
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Qualification : |
B.com |
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Date of Appointment : |
29.09.1992 |
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Name : |
Mr. Kapil J. Pathare |
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Designation : |
Whole Time Director |
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Date of Birth/Age : |
05.09.1979 |
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Qualification : |
B.Com |
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Date of Appointment : |
15.09.2003 |
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Name : |
Dr. Arvind V. Kulkarni |
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Designation : |
Director |
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Date of Birth/Age : |
22.07.1932 |
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Qualification : |
M.S. |
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Date of Appointment : |
11.03.1996 |
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Name : |
Mr. Gopal Sehjpal |
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Designation : |
Director |
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Date of Birth/Age : |
19.05.1944 |
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Qualification : |
B.A.
(Eco.), M.A. (Philosophy), PGDPM, Certified Quality Engineer |
|
Date of Appointment : |
23.09.2002 |
|
List of Directorship in other Companies : |
v
Oracle Management Private Limited v Lovable Lingerie Limited |
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|
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|
Name : |
Mr. Chetan Sheth |
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Designation : |
Director |
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Date of Birth/Age : |
12.07.1963 |
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Qualification : |
Engineer |
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Date of Appointment : |
30.01.2004 |
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Name : |
Mr. Robin Banerjee |
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Designation : |
Director |
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Date of Birth/Age : |
20.08.1955 |
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Qualification : |
M.Com,
FCA, ACS, ACWA |
|
Date of Appointment : |
25.09.2006 |
|
List of Directorship in other Companies : |
v
Bilcare
Limited |
|
|
|
|
Name : |
Mr. Manish Chhajed |
|
Designation : |
Director (upto 17.03.2012) |
KEY EXECUTIVES
|
Name : |
Mr. R. Venkataraman |
|
Designation : |
President Finance and Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2012
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
|
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|
40097868 |
63.57 |
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|
40097868 |
63.57 |
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|
Total shareholding of Promoter and Promoter Group (A) |
40097868 |
63.57 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
875 |
0.00 |
|
|
212973 |
0.34 |
|
|
213848 |
0.34 |
|
|
|
|
|
|
12214264 |
19.36 |
|
|
|
|
|
|
8207737 |
13.01 |
|
|
1845609 |
2.93 |
|
|
497889 |
0.79 |
|
|
149466 |
0.24 |
|
|
347923 |
0.55 |
|
|
500 |
0.00 |
|
|
22765499 |
36.09 |
|
Total Public shareholding (B) |
22979347 |
36.43 |
|
Total (A)+(B) |
63077215 |
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) |
63077215 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs.0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Marketer and
Distributor of Men's, Women's Inner Wears and Socks. |
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Products : |
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Brand Names : |
VIP, FRENCHIE AND FEELINGS |
PRODUCTION STATUS (AS ON 31.03.2011)
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Particulars |
2010-11 |
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Licensed Capacity (Spinning Mill) |
26208 Spindles |
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Installed Capacity (Spinning Mill) |
26208 Spindles |
GENERAL INFORMATION
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No. of Employees : |
1800 (Approximately) |
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Bankers : |
v
State Bank of v
IDBI Bank Limited v
HDFC Bank Limited v
Kotal Mahindra Bank Limited v
Small Industries Development Bank of v
Barclays
Bank PLC |
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Facilities : |
LONG TERM BORROWINGS Notes: There were 2 Term Loans outstanding
from Barclays Bank PLC in the previous year (current year Nil). One Term loan from Barclay
Bank PLC is secured by way of first charge on Land and Building, Plant and
Machinery, Furniture and Fixtures and Electrical Equipments of Company's unit
situated at Thingalur (Tamilnadu) and re-payable in 16 equal quarterly
installments. Second Term loan from Barclays Bank PLC is secured by way of first charge on Land and Building, Plant and Machinery, Furniture and Fixtures and Electrical Equipments of Company's unit situated at Daman and repayable in 12 equal quarterly installment. SHORT TERM BORROWINGS Notes: (i) Working Capital Loan secured by way of
Hypothecation of Inventories and Book Debts of the Company and further
secured by way of Equitable Mortgage of Property situated at TTC- Turbhe
(Navi Mumbai), GIDC- Umergaon (Gujarat), Kachigam (Daman), SIPCOT- Perundurai
(Tamilnadu), Edayaarpalayam (Tamilnadu) and Thingalur (Tamilnadu). (ii) Purchase Bill Discounting is secured
by way of second charge on the Inventories and Book debts and further secured
by way of Personal Guarantee of Promoter- Directors. (iii) Unsecured Short Term Loan is guaranteed by Promoter - Directors. |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Attar and Company Chartered Accountants |
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Internal Auditors : |
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|
Name : |
Sharp and Tannan Associates Chartered Accountants |
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Associates : |
v
Maxwell
Ventures Private Limited v
Maxwell
Capital Management Private Limited v
Maxwell
Entertainment Private Limited v
Maxwell
Retails Private Limited v
HYBO
v
PAKO
v
Pats
Treasures * v
Unnati
Ventures v
Kanishk
Capital Partners v
K.
3 Realtors v
Global
Construction v
Pathare
Agro Farms v
Shogun
Chemicals Private Limited v
Note: Related parties have been
identified by the Management. * Transactions with related parties |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
150000000 |
Equity Shares |
Rs.2/- each |
Rs.300.000 millions |
|
4500000 |
Redeemable Preference Shares |
Rs.100/- each |
Rs.450.000 millions |
|
|
Total
|
|
Rs.750.000
millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
63077215 |
Equity Shares |
Rs.2/- each |
Rs.126.154
millions |
|
1184950 |
Redeemable Preference Shares |
Rs.100/-
each |
Rs.118.495
millions |
|
|
Total |
|
Rs.244.649 millions |
Notes:
(i) 35750000 Ordinary Shares of Rs.2/- each allotted as fully paid up Bonus Shares
by way of Capitalization of Share Premium.
(ii) The Company has originally allotted the
5%, 2435000 Redeemable Preference Shares of Rs.100/- each on 1st
February, 2006, redeemable after 31.01.2016 with an option to the Company to
redeem it at the end of the 8th, 9th and 10th
Year, in three equal installment of Rs.81.160 millions each i.e. redeemable on
31.01.2014, 31.01.2015 and 31.01.2016. After the buyback, installment will be
reduced to Rs.39.498 millions each i.e. redeemable on 31.01.2014, 31.01.2015
and 31.01.2016.
(ii) Out of 2435000 Redeemable Preference
Shares, the bought back 620600 Preference Share during the financial year 201011
and 629450 Preference Shares during the financial year 2011-12.
Reconciliation
of the number of shares and amount outstanding at the beginning and at the end
of the reporting period:
|
Particulars |
As at 31st March, 2012 |
|
|
Number of shares |
Amount (Rs. in millions) |
|
|
Equity Shares of Rs.2/- each |
|
|
|
Opening |
63077215 |
126.154 |
|
Add/(Less):
Issued /(bought back) of shares |
-- |
-- |
|
Closing |
63077215 |
126.154 |
|
Redeemable preference shares of Rs.100/- each |
|
|
|
Opening |
1814400 |
181.440 |
|
(Less): Bought back during the year (*) |
(629450) |
(62.945) |
|
Closing |
1184950 |
118.495 |
Details
of shares held by each shareholder holding more than 5% shares:
|
Class of shares / Name of shareholder |
As at 31st March, 2012 |
|
|
Number of shares |
% Held |
|
|
Equity Shares |
|
|
|
Reliance Capital Partners |
9177215 |
14.55% |
|
Sunil J Pathare |
16107425 |
25.54% |
|
Kapil J. Pathare |
11684465 |
18.52% |
|
Jaykumar K Pathare |
5424125 |
8.60% |
|
Lalita J. Pathare |
5002812 |
7.93% |
|
5% Redeemable Preference Shares |
|
|
|
Jaykumar K. Pathare |
67600 |
5.70% |
|
Sunil J. Pathare |
343700 |
29.01% |
|
Kapil J. Pathare |
339800 |
28.68% |
|
Lalita J. Pathare |
433850 |
36.61% |
|
L. Vinay Reddy |
- |
- |
|
L. Prashant Reddy |
- |
- |
* The Board of Director of the Company
approved the Buyback of 629450 fully paid up, 5% Redeemable Preference Shares
of Rs.100/- at par including dividend due up to the date of Buyback, During the
year, the Company has bought back and existinguised 629450 Preference Shares of
Rs.100/- each by utilising Securities Premium Account to the extent of
Rs.62.945 millions. Capital Redemption Reserve has been created out of
Securities Premium Account being the nominal value of share bought back in
terms of Section 77AA of the Companies Act, 1956.
Rights,
Preference and Restriction attached to Shares
The Company has two class of shares, one is
Equity shares having face value of Rs.2/- each per share and another is 5% Redeemable
Preference shares of Rs.100/- each. Each holder of equity share is entitled to
one vote per share. The Preference shares does not carry voting rights but
entitled to get the dividend. The dividend, if any, proposed by the Board of
Directors is subject to the approval of the equity shareholder in their ensuing
general meeting. In the event of liquidation of the Company, the holder of
equity shareholders will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts (including redeemable
Preference Shares). The distribution will be in proportion to the number of
equity shares held by the shareholders.
The Company does not have any holding company
or subsidiary company. Hence disclosure of shares held by holding Company
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 |
244.649 |
307.594 |
369.654 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
748.210 |
732.819 |
736.009 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
992.859 |
1040.413 |
1105.663 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
775.277 |
871.535 |
686.253 |
|
|
2] Unsecured Loans |
50.000 |
0.000 |
54.117 |
|
|
TOTAL BORROWING |
825.277 |
871.535 |
740.370 |
|
|
DEFERRED TAX LIABILITIES |
115.783 |
113.723 |
110.007 |
|
|
|
|
|
|
|
|
TOTAL |
1933.919 |
2025.671 |
1956.040 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
703.256 |
803.065 |
759.170 |
|
|
Capital work-in-progress |
0.000 |
0.000 |
61.982 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.115 |
0.115 |
0.119 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
917.679
|
1094.121 |
885.728
|
|
|
Sundry Debtors |
470.149
|
526.913 |
560.623
|
|
|
Cash & Bank Balances |
24.236
|
13.738 |
24.562
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
96.512
|
77.559 |
82.386
|
|
Total
Current Assets |
1508.576
|
1712.331 |
1553.299 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
181.892
|
300.416 |
341.695
|
|
|
Other Current Liabilities |
64.836
|
168.740 |
1.689
|
|
|
Provisions |
31.300
|
20.684 |
76.547
|
|
Total
Current Liabilities |
278.028
|
489.840 |
419.931
|
|
|
Net Current Assets |
1230.548
|
1222.491 |
1133.368
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.401 |
|
|
|
|
|
|
|
|
TOTAL |
1933.919 |
2025.671 |
1956.040 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations
(net) |
2199.012 |
2237.277 |
2113.902 |
|
|
|
Other Income |
6.614 |
7.369 |
30.342 |
|
|
|
TOTAL (A) |
2205.626 |
2244.646 |
2144.244 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1373.541 |
|
1880.370 |
|
|
|
Changes in inventories of finished
goods and work-in-progress |
(126.973) |
(40.521) |
|
|
|
|
Employee benefits expense |
128.914 |
125.378 |
|
|
|
|
Advertisement &
Publicity Expenses |
37.728 |
98.499 |
|
|
|
|
Other expenses |
579.241 |
591.301 |
|
|
|
|
Exceptional Items |
(58.721) |
0.000 |
|
|
|
|
TOTAL (B) |
1933.730 |
2103.428 |
1880.370 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
271.896 |
141.218 |
263.874 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
149.133 |
135.759 |
113.632 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
122.763 |
5.459 |
150.242 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
35.217 |
33.957 |
43.515 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
87.546 |
(28.498) |
106.727 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
41.140 |
(44.828) |
41.422 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
46.406 |
16.330 |
65.305 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
54.865 |
60.055 |
45.469 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
2.000 |
7.100 |
|
|
|
Dividend paid on buyback
of Preference Shares |
2.135 |
1.411 |
0.000 |
|
|
|
Proposed Dividend –
Preference Share Capital |
5.925 |
9.072 |
12.175 |
|
|
|
Proposed Dividend - Equity
Share Capital |
18.923 |
6.308 |
25.231 |
|
|
|
Corporate Dividend Tax |
NA |
2.729 |
6.213 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
54.865 |
60.055 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of exports |
142.205 |
131.919 |
129.556 |
|
|
TOTAL EXPORTS |
142.205 |
131.919 |
129.556 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
NA |
0.000 |
12.740 |
|
|
|
Components, Stores & Spares |
NA |
0.270 |
0.388 |
|
|
|
Capital Goods |
NA |
0.000 |
5.294 |
|
|
|
Royalty Paid |
NA |
0.552 |
0.000 |
|
|
TOTAL IMPORTS |
NA |
0.822 |
18.422 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
0.63 |
0.07 |
0.81 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2012 (1st
Quarter) |
30.09.2012 (2nd
Quarter) |
|
Net Sales |
|
586.890 |
755.980 |
|
Total Expenditure |
|
534.590 |
695.790 |
|
PBIDT (Excl OI) |
|
52.300 |
60.190 |
|
Other Income |
|
3.660 |
2.930 |
|
Operating Profit |
|
55.960 |
63.120 |
|
Interest |
|
34.030 |
35.620 |
|
Exceptional Items |
|
0.000 |
0.000 |
|
PBDT |
|
21.930 |
27.500 |
|
Depreciation |
|
8.620 |
8.640 |
|
Profit Before Tax |
|
13.310 |
18.860 |
|
Tax |
|
3.100 |
4.410 |
|
Provisions and contingencies |
|
0.000 |
0.000 |
|
Profit After Tax |
|
10.210 |
14.450 |
|
Extraordinary Items |
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
0.000 |
0.000 |
|
Other Adjustments |
|
0.000 |
0.000 |
|
Net Profit |
|
10.210 |
14.450 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
2.10 |
0.73 |
3.05
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.98 |
(1.27) |
5.05
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.96 |
(1.13) |
4.62
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.09 |
(0.03) |
0.10
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.11 |
1.31 |
1.05
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.43 |
3.50 |
3.70
|
LOCAL AGENCY FURTHER INFORMATION
|
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 |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter
involved in |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
CORPORATE INFORMATION:
The Company was incorporated
on 14th January, 1991. The Company's Identification No. is
L18101MH1991PLC059804. The Company is a Manufacturer, Marketing and
distribution of Men's, Women's inner wears and Socks under brand name VIP,
Frenchie and feelings. The Company's Equity Shares are listed on Bombay Stock
Exchange Limited (BSE) and National Stock Exchange Limited (NSE).
FINANCIAL RESULTS
The Directors have
recommended a dividend of 15% on Equity Shares (Thirty paisa per Equity Share
of Rs.2/- each) and 5% on Redeemable Preference Shares (Rs.5/- per
share of Rs.100/- each) for the financial year ended on 31st March,
2012. This Dividend of Rs.24.848 millions along with dividend distribution tax
of Rs.3.070 millions will absorb Rs.27.918 millions. The Company has paid the
Dividend Rs.2.135 millions and Dividend Distribution Tax of Rs.0.961 million on
Buy back of Preference Shares.
OPERATIONS
During the year, the Company
recorded a Hosiery turnover of Rs.2199.000 millions as against Rs.2237.200 millions
in the previous year.
The operation of the Company
was seriously affected in the area of processing of greige fabric. The High
Court of Tamilnadu had passed strictures shutting down all the processing units
in and around Tirupur, including the Company's unit located at Perundurai in
Tamilnadu.
Due to this, the Company
faced serious problem in the production of finished fabric which impacted the
Company's production of finished products. The Company had to source production
facilities from places like Kolkata, Mumbai etc to meet the requirement of its
Tamilnadu stitching unit, which resulted in high cost and operational time. The
Company's 60% production orginates from Tamilnadu. The closure of Perundurai
processing unit, resulted in serious drop in production and hence sales. After
implementing CAPEX at Perundurai processing unit as suggested by the Monitoring
Committee, now they are one of the few companies which has been permitted to
restart.
COMPLETION OF SALE/DISPOSAL
OF SPINNING BUSINESS AT GOBICHETTIPALAYAM
The Members had approved
byway of Special Resolution, the Sale of Spinning Business of the Company on
Slum Sale basis situated at Gobicheittpalayam for a consideration of Rs.390.000
millions to M C Spinners Private Limited.
The Company has completed
the sale transaction in the month of December, 2011 by receiving total
consideration of Rs.390.000 millions for transfer of fixed assets and net
current assets and made a capital profit of Rs.58.700 millions.
The Company's Gobi unit was
supplying about 50% of its yarn requirement; now after sale of
FIRE BROKE OUT IN STITCHING
UNIT ATTHINGALLUR
During the current financial
year, afire broke out at the center building of the Thingalur stitching unit in
Tamilnadu. This resulted in loss to the plant and machinery and building and
raw material, work in progress and finished goods stock on the floor. There was
no loss of life or injury in this accident. It took almost ten hours to put out
the blaze. The Company's property/stocks have all been adequately insured. The
Company production facility has been reoriented so that the loss of production
due to fire could be minimized.
MANAGEMENT DISCUSSION AND
ANALYSIS
Industry structure and
developments Market overview
The year 2011-12 had been a
trying year for the Indian economy. Global uncertainties and domestic cyclical
and structural factors lowered the growth of Indian economy to around 7% in
2011-12 as compared to the growth rate of 8.4 per cent for 2010-11. The
constant fall in the value of the Indian Rupee also did not help the cause in
boosting the exports. This coupled with a high level of inflation and high
interest cost did not provide any solace to the industry in general. There has
also been a drag in the demand front due reduction in disposable surplus. The
fiscal year 2012-13 does not augur well with even IMF reducing its
The Textile Industry in
Financial Review
Outlook and
The year witnessed a
significant slowdown in textiles production due to a combination of factors such
as slowdown in demand, piling up of stocks etc. Cotton yarn production also
decreased by 13% during the period. The year saw the cotton and yarn price
steadying to reasonable levels. The yarn prices, which saw a fall from the all
time high of Rs.270 per kg stabilized around Rs.220 per kg. The cotton prices
however continue to hover around the Rs.35000 per bale. However the power
situation in Tamilnadu continue to disturb the production of yarn resulting in
lower outputs and high cost of production. The governments' policy on export of
yarn and cotton did not help the industry either.
The current year would be a
threshold year, in the operation for the company. Consequent to its decision to
operate from outsourced finished fabric, a better focus has now been built into
the garmenting operation. With this, the Company will, concentrate more on
marketing and brand building activities.
Outlook on threats, risks
and concern
The impact of pollution and effluent issues which crippled facilities around Tirupur continue to be a cause on concern. The Company's own facility at Perundurai was revamped with additional CAPEX spent, in improving the effluent handling capacity the Company. The company has received approval for restart of its processing unit. The labour situation continued to be troublesome with availability concern that had generally plagued the regions. The company plans to counter this with the use of automation .The market scene is also experiencing higher levels of competition. Moreover many new entrants have made their entry in the market, leading to increase in competition.
FOR
THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2012
STATEMENT OF STANDALONE UN-AUDITED RESULTS
(Rs.
in millions)
PART I
|
Sr. No. |
Particulars |
Un-Audited |
Un-Audited |
|
|
Quarter ended |
Half year ended |
|||
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
||
|
1 |
Income
from operations |
|
|
|
|
|
Sales /
Income form operation |
786.830 |
626.086 |
1412.916 |
|
|
Less:
Excise Duty |
37.110 |
42.714 |
79.824 |
|
|
a) Net
sales / income from operations (net of excise) |
749.720 |
583.372 |
1333.092 |
|
|
b) Other
operating income |
6.255 |
3.521 |
9.776 |
|
|
Total
income from operations (Net) |
755.975 |
586.893 |
1342.868 |
|
2 |
Expenses |
|
|
|
|
|
a) Cost of
materials consumed |
417.046 |
375.670 |
792.716 |
|
|
b)
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
64.838 |
-21.220 |
43.618 |
|
|
c)
Employee benefits expense |
32.452 |
29.053 |
61.505 |
|
|
d)
Advertisement |
39.886 |
25.205 |
65.091 |
|
|
e)
Depreciation and amortisation expense |
8.642 |
8.623 |
17.265 |
|
|
f) Other
expenses |
141.563 |
125.885 |
267.448 |
|
|
Total
expenses |
704.427 |
543.216 |
1247.643 |
|
3 |
Profit /
(Loss) from operations before other income, finance costs and exceptional
items (1 - 2) |
51.548 |
43.677 |
95.225 |
|
4 |
Other
income |
2.927 |
3.660 |
6.587 |
|
5 |
Profit /
(Loss) from ordinary activities before finance costs and exceptional items (3
+ 4) |
54.475 |
47.337 |
101.812 |
|
6 |
Finance
costs |
35.620 |
34.030 |
69.650 |
|
7 |
Profit /
(Loss) from ordinary activities after finance costs but before exceptional
items (5 - 6) |
18.855 |
13.307 |
32.162 |
|
8 |
Exceptional
items |
-- |
-- |
-- |
|
9 |
Profit /
(Loss) from ordinary activities before tax (7 + 8) |
18.855 |
13.307 |
32.162 |
|
10 |
Tax
expense (+/-) |
|
|
|
|
|
-
Current |
(3.430) |
-2.757 |
(6.187) |
|
|
-
Deferred |
(0.976) |
-0.343 |
(1.319) |
|
|
Taxes of
earlier years |
-- |
-- |
-- |
|
11 |
Net
Profit / (Loss) from ordinary activities after tax (9 + 10) |
14.449 |
10.207 |
24.656 |
|
12 |
Net
Profit / (Loss) for the period (11 + 12) |
14.449 |
10.207 |
24.656 |
|
13 |
Paid-up
equity share capital (Face value of Rs.2/- per share) |
126.154 |
126.154 |
126.154 |
|
14 |
Reserve
excluding Revaluation Reserves |
-- |
-- |
-- |
|
15 |
Earnings
per share Basic & Diluted (of Rs.2/- each) |
0.23 |
0.16 |
0.39 |
PART II
SELECTED INFORMATION
FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2012
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
- Number of shares |
22979347 |
22979347 |
22979347 |
|
|
- Percentage of shareholding |
36.43% |
36.43% |
36.43% |
|
2 |
Promoters and Promoter Group Shareholding a) Pledged / Encumbered |
|
|
|
|
|
-
Number of shares |
Nil |
Nil |
Nil |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of shares (as a % of the total share capital of the
company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b) Non - encumbered |
|
|
|
|
|
-
Number of shares |
40097868 |
40097868 |
40097868 |
|
|
-
Percentage of shares (as a % of the total shareholding of the Promoter
and Promoter group) |
100.00% |
100.00% |
100.00% |
|
|
-
Percentage of shares (as a % of the total share capital of the
company) |
63.57% |
63.57% |
63.57% |
|
Pending at the beginning of the quarter |
Received during the quarter |
Disposed of during the quarter |
Remaining unresolved at the end of the quarter |
|
Nil |
2 |
2 |
Nil |
SEGMENTWISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs.
in millions)
|
Sr. No. |
Particulars |
Un-Audited |
Un-Audited |
|
|
Quarter ended |
Half year ended |
|||
|
30.09.2012 |
30.06.2012 |
30.09.2012 |
||
|
1 |
Segment
Revenue |
|
|
|
|
|
a) Hosiery and Others |
749.720 |
583.372 |
1333.092 |
|
|
b) Spinning Mill |
-- |
-- |
-- |
|
|
Total |
749.720 |
583.372 |
1333.092 |
|
|
Less : |
|
|
|
|
|
Inter segment revenue |
-- |
-- |
-- |
|
|
Sales / Income from operations |
749.720 |
583.372 |
1333.092 |
|
2 |
Segment
Results [Profit /
(Loss) before tax and interest from each segment] |
|
|
|
|
|
a) Hosiery and Others |
54.475 |
47.337 |
101.812 |
|
|
b) Spinning Mill |
-- |
-- |
-- |
|
|
Total |
54.475 |
47.337 |
101.812 |
|
|
Less : i) Interest |
35.620 |
34.030 |
69.650 |
|
|
ii) Other
un-allocable expenditure net of un-allocable income |
-- |
-- |
-- |
|
|
Total
Profit Before Tax |
18.855 |
13.307 |
32.162 |
|
3 |
Capital
Employed (Segment
Asset - Segment Liabilities) (Based on estimates in terms of available data) |
|
|
|
|
|
a) Hosiery and Others |
1785.277 |
1721.381 |
1785.277 |
|
|
b) Spinning Mill |
-- |
-- |
-- |
Note:
1. The above
Unaudited Results were reviewed by the Audit committee, Statutory Auditor and were
approved by the Board of Directors at their meeting held on 9th
November, 2012.
2. Previous year figure have been regrouped / rearranged, wherever
necessary.
STATEMENT OF
ASSETS AND LIABILITES
(Rs.
in millions)
|
Sr. No. |
Particulars |
As at 30.09.2012 |
|
A |
EQUITY
AND LIABILITIES |
|
|
1 |
Shareholders' funds |
|
|
|
a) Share capital |
244.649 |
|
|
b) Reserves and surplus |
772.866 |
|
|
Sub-total - Shareholders' funds |
1017.515 |
|
|
|
|
|
2 |
Non-current liabilities |
|
|
|
a) Deferred tax liabilities (net) |
117.102 |
|
|
b) Other long-term liabilities |
41.861 |
|
|
Sub-total -
Non-current liabilities |
158.963 |
|
|
|
|
|
3 |
Current liabilities |
|
|
|
a) Short-term borrowings |
859.282 |
|
|
b) Trade payables |
242.152 |
|
|
c) Other current liabilities |
49.813 |
|
|
d) Short-term provisions |
2.743 |
|
|
Sub-total - Current liabilities |
1153.990 |
|
|
TOTAL - EQUITY AND LIABILITIES |
2330.468 |
|
|
|
|
|
B |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
a) Tangible Assets |
566.632 |
|
|
b) Intangible Assets |
125.821 |
|
|
c) Long-term loans and advances |
86.123 |
|
|
Sub-total - Non-current assets |
778.576 |
|
|
|
|
|
2 |
Current assets |
|
|
|
a) Current investments |
0.115 |
|
|
b) Inventories |
949.806 |
|
|
c) Trade receivables |
563.911 |
|
|
d) Cash and cash equivalents |
36.666 |
|
|
e) Short-term loans and advances |
1.394 |
|
|
Sub-total - Current assets |
1551.892 |
|
|
TOTAL - ASSETS |
2330.468 |
Fixed Assets:
Tangible Assets
v Land – Freehold
v Land – Leasehold
v Buildings
v Plant and Equipment
v Furniture and Fixtures
v Vehicles
v Office Equipment
v Electrical Installations
v Boilers
v Effluent Treatment Plant
v Computer Systems
Intangible Assets
v Goodwill and Other Right
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.54.63 |
|
|
1 |
Rs.87.50 |
|
Euro |
1 |
Rs.71.32 |
INFORMATION DETAILS
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
50 |
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.