MIRA INFORM REPORT
|
Report Date : |
03.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
RSWM LIMITED (w.e.f 17.11.2006) |
|
|
|
|
Formerly Known
As : |
RAJASTHAN
SPINNING AND WEAVING MILLS LIMITED |
|
|
|
|
Registered
Office : |
Kharigram, P. O. Gulabpura,
Bhilwara - 311021, Rajasthan |
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|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
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|
|
|
Date of
Incorporation : |
17.10.1960 |
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|
|
|
Com. Reg. No.: |
17-008216 |
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|
|
|
Capital
Investment / Paid-up Capital : |
Rs.231.487 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17115RJ1960PLC008216 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHR02418D /
JDHR02137C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR9700M |
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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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|
|
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Line of Business
: |
Manufacturer of Synthetic and Blended Spun Yarn, Polyester Viscose Fabric and Denim Fabric. |
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|
|
|
No. of Employees
: |
13828 (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 11470000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually correct |
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|
|
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Litigation : |
Clear |
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Comments : |
Subject is an old and well established company having a fine track record.
The company has incurred loss from its operations during 2012. However,
general financial position is good. Trade relations are reported as decent.
Business is active. Payments are reported to be usually correct and as per
commitments. The company can be considered good for normal 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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
BBB (Long Term Bank Facilities) |
|
Rating Explanation |
Moderate degree of safety and moderate credit
risk. |
|
Date |
November 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
A3+ (Short Term Bank Facilities) |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
November 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 : |
Kharigram, P. O.
Gulabpura, Bhilwara - 311021, Rajasthan, India |
|
Tel. No.: |
91-1482-223144 To
50 |
|
Fax No.: |
91-1482-223361 |
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E-Mail : |
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|
Website : |
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Corporate Office : |
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Tel. No.: |
91-120-4390300 |
|
Fax No.: |
91-120-2531648 /
22531745 |
|
E-Mail : |
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Factory 1 : |
Kharigram, P.O. Guiabpura - 311021, District Bhilwara, Rajasthan, India |
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Factory 2 : |
Mayur Nagar, Lodha, P.O. Banswara - 327001, Rajasthan, India |
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Factory 3 : |
Mandpam, Bhilwara-311001, |
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Factory 4 : |
Rishabhdev-313802, District |
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Factory 5 : |
Ringas - 332404, District Sikar, |
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Factory 6 : |
LNJ Nagar, Mordi, P.O.Banswara-327001, |
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Factory 7 : |
Solaris Building No.1, D-Wing, 3rd Floor, Sakivihar Road,
Powai, Andheri (East), Mumbai - 400072, Maharashtra, India |
|
|
|
|
Overseas
marketing offices |
Located at : |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. L. N.
Jhunjhunwala |
|
Designation : |
Chairman -
Emeritus |
|
|
|
|
Name : |
Mr. Ravi
Jhunjhunwala |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. Shekhar
Agarwal |
|
Designation : |
Vice Chairman |
|
Qualification
: |
B. Tech. (M.E.),
M. Sc. ( |
|
Date of
Appointment : |
13.02.1984 |
|
Previous Employment |
Shashi Commercial
Limited – Chief Executive |
|
|
|
|
Name : |
Mr. Arun K
Churiwal |
|
Designation : |
Managing Director
and Chief Executive Officer |
|
|
|
|
Name : |
Mr. Kamal Gupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D N Davar |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. Sushil
Jhunjhunwala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. N. Choudhary
|
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T. G. Regunathan |
|
Designation : |
Director (Nominee, EXIM Bank) |
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|
|
|
Name : |
Mr. J. C. Laddha |
|
Designation : |
Executive
Director and Chief Executive Officer |
|
Qualification
: |
B.Com., F.C.A. |
|
Date of
Appointment : |
01.01.1988 |
|
Previous
Employment: |
Bhilwara Spinners
Limited |
KEY EXECUTIVES
|
Corporate Office |
|
|
Name : |
Mr. Prakash Maheshwari |
|
Designation : |
Chief Executive (Corporate Management Services) |
|
|
|
|
Name : |
Mr. B. M. Sharma |
|
Designation : |
Chief Financial Officer |
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|
|
|
Name : |
Mr. T. Dev Joshi |
|
Designation : |
President (Corporate HR and OD) |
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|
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|
Name : |
Mr. M. L. Jhunjhunwala |
|
Designation : |
President, Mumbai |
|
Business Heads |
|
|
Name : |
J. C. Laddha |
|
Designation : |
Chief Executive (Yarn and TPP) |
|
|
|
|
Name : |
S. C. Garg |
|
Designation : |
Chief Executive (Melange yarn) |
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|
|
|
Name : |
Y. C. Gupta |
|
Designation : |
Chief Executive (Denim) |
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|
|
|
Name : |
Mr. Nirmal Jain |
|
Designation : |
Chief Executive (Fabric) |
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|
|
|
Name : |
Mr. Surender Gupta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.03.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
(1) Indian |
|
|
|
|
1808068 |
7.81 |
|
|
5163816 |
22.31 |
|
|
6971884 |
30.12 |
|
|
|
|
|
|
4934770 |
21.32 |
|
|
4934770 |
21.32 |
|
Total shareholding
of Promoter and Promoter Group (A) |
11906654 |
51.44 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
1661008 |
7.18 |
|
|
12900 |
0.06 |
|
|
1732 |
0.01 |
|
|
757053 |
3.27 |
|
|
100 |
0.00 |
|
|
2432793 |
10.51 |
|
|
|
|
|
|
2762097 |
11.93 |
|
|
|
|
|
|
3065579 |
13.24 |
|
|
2946065 |
12.73 |
|
|
35501 |
0.15 |
|
|
35501 |
0.15 |
|
|
8809242 |
38.06 |
|
Total Public
shareholding (B) |
11242035 |
48.56 |
|
Total (A)+(B) |
23148689 |
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) |
23148689 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Synthetic and Blended Spun Yarn, Polyester Viscose Fabric and Denim Fabric. |
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Products : |
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PRODUCTION STATUS (As on 31.03.2011)
|
Particulars |
Unit
|
Installed
Capacity |
|
Yarn |
|
|
|
Spindles |
Nos. |
336608 |
|
Rotors |
Nos. |
1680 |
|
Fabric |
|
|
|
Looms |
Nos. |
104 |
|
Processing |
(Lac Mtr./Annum) |
216 |
|
Denim Fabric (consisting of 7032 spindles and 720 rotors for spinning and 72 looms
for weaving) |
(Lac Mtr./Annum) |
140 |
|
Power |
|
|
|
Thermal |
(MW) |
46 |
|
HFO base |
(MW) |
38 |
GENERAL INFORMATION
|
No. of Employees : |
13828 (Approximately) |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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|
|
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Auditors 1 : |
|
|
Name : |
S. Bhargava Associates Chartered Accountants |
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|
|
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Auditors 2 : |
|
|
Name : |
A. L. Chechani and Company Chartered Accountants |
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|
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Enterprises that directly
or indirectly through one or more intermediaries, control or are controlled
by or are under common control with the reporting enterprise (this includes
holding companies, subsidiaries and fellow subsidiaries) : |
Cheslind Textiles Limited |
|
|
|
|
Enterprises over
which any person described in (c) or (d) is able to exercise significant
influence : |
|
CAPITAL STRUCTURE
As on: 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
47500000 |
Equity Shares |
Rs.10/- each |
Rs.475.000 Millions |
|
2500000 |
Optionally Convertible Redeemable Preference Shares |
Rs.150/- each |
Rs.375.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs.850.000 Millions
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23148689 |
Equity Shares |
Rs.10/- each |
Rs.231.487 Millions |
|
|
|
|
|
1. Shareholders
holding more than 5 % of shares
|
Name of shareholder |
As at March 31, 2012 |
|
|
|
No. of shares |
% of holding |
|
Microbase Limited |
3650970 |
15.77 |
|
IDFC Sterling Equity Fund |
1450000 |
6.26 |
|
LNJ Financial Services Limited |
1262998 |
5.46 |
|
Purvi Vanijya Niyojan Limited |
1218431 |
5.26 |
2. There are no shares issued for consideration other than cash in the last 5 financial years. However, 13513607 Equity Shares of Rs. 10/- each were issued as fully paid up bonus shares by capitalisation of reserves in earlier years. 1228689 Equity Shares of Rs. 10/- each were issued for consideration other than cash, pursuant to the scheme of merger of erstwhile Jaipur Polyspin Limited and Mordi Textiles and Processors Limited as approved by the Hon'ble High Court of Rajasthan.
3. The number of issued, subscribed and fully paid up shares remained unchanged during the year as there were no buy back or issue of share capital.
4. The Company has only one class of Equity Shares having a par value of Rs. 10/-. Each holder of Equity Shares is entitled to one vote per share. There are no restrictions attached to any Equity Shares. The Company declares and pays dividends, if any, in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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 respective shareholders.
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 |
231.487 |
231.487 |
281.497 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
2616.485 |
2850.686 |
2026.452 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
5] Government Capital Grants |
20.991 |
25.670 |
34.318 |
|
|
NETWORTH |
2868.963 |
3107.843 |
2342.267 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11912.746 |
10301.921 |
10306.054 |
|
|
2] Unsecured Loans |
16.997 |
21.069 |
17.932 |
|
|
TOTAL BORROWING |
11929.743 |
10322.990 |
10323.986 |
|
|
DEFERRED TAX LIABILITIES |
352.712 |
417.812 |
179.212 |
|
|
|
|
|
|
|
|
TOTAL |
15151.418 |
13848.645 |
12845.465 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
7799.092 |
8020.247 |
7968.319 |
|
|
Capital work-in-progress |
2509.338 |
54.195 |
52.353 |
|
|
|
|
|
|
|
|
INVESTMENT |
602.714 |
601.544 |
601.544 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3255.490
|
4330.084 |
2451.487 |
|
|
Sundry Debtors |
1844.125
|
2039.005 |
1573.734 |
|
|
Cash & Bank Balances |
18.655
|
62.825 |
48.184 |
|
|
Export Incentives Receivable |
0.000
|
0.000 |
224.759 |
|
|
Other Current Assets |
593.876
|
806.424 |
527.385 |
|
|
Loans & Advances |
708.789
|
697.378 |
579.222 |
|
Total
Current Assets |
6420.935
|
7935.716 |
5404.771 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
300.100
|
647.819 |
259.095 |
|
|
Other Current Liabilities |
1723.037
|
1817.498 |
619.206 |
|
|
Provisions |
157.524
|
297.740 |
308.063 |
|
Total
Current Liabilities |
2180.661
|
2763.057 |
1186.364 |
|
|
Net Current Assets |
4240.274
|
5172.659 |
4218.407 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
4.842 |
|
|
|
|
|
|
|
|
TOTAL |
15151.418 |
13848.645 |
12845.465 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
19869.975 |
19505.870 |
15307.617 |
|
|
|
Other Income |
223.345 |
291.211 |
174.843 |
|
|
|
TOTAL (A) |
20093.320 |
19797.081 |
15482.460 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
13073.953 |
11200.987 |
|
|
|
|
Purchases of stock-in-trade |
174.544 |
121.076 |
|
|
|
|
Change in inventories of finished goods, work-in-progress and stock-in-trade |
(229.800) |
(431.436) |
|
|
|
|
Employee benefits expense |
1642.049 |
1497.108 |
|
|
|
|
Other expenses |
3822.705 |
3864.028 |
|
|
|
|
Exceptional items |
0.000 |
144.205 |
|
|
|
|
TOTAL (B) |
18483.451 |
16395.968 |
13553.605 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1609.869 |
3401.113 |
1928.855 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1040.362 |
787.427 |
567.317 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
569.507 |
2613.686 |
1361.538 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
891.027 |
801.468 |
876.398 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(321.520) |
1812.218 |
485.140 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(103.628) |
582.572 |
124.836 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(217.892) |
1229.646 |
360.304 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
979.839 |
330.615 |
298.173 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
|
|
125.000 |
40.000 |
|
|
|
Preference Share Capital Redemptions
Reserve |
|
50.010 |
199.980 |
|
|
|
Interim Dividend on Equity Share |
NA |
231.487 |
0.000 |
|
|
|
Proposed Dividend on Equity Share |
|
115.743 |
57.872 |
|
|
|
Dividend on Preference Share |
|
0.822 |
17.493 |
|
|
|
Tax on Dividend |
|
57.360 |
12.517 |
|
|
BALANCE CARRIED TO
THE B/S |
NA |
979.839 |
330.615 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
6939.578 |
7484.597 |
5391.202 |
|
|
TOTAL EARNINGS |
6939.578 |
7484.597 |
5391.202 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
387.007 |
283.233 |
148.585 |
|
|
|
Stores & Spares |
121.246 |
114.364 |
105.146 |
|
|
|
Capital Goods |
1297.091 |
207.457 |
7.080 |
|
|
TOTAL IMPORTS |
1805.344 |
605.054 |
260.811 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(9.41) |
53.08 |
14.68 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 1st
Quarter |
30.09.2012 2nd Quarter |
31.12.2012 3rd
Quarter |
31.03.2013 4th
Quarter |
|
Net Sales |
5307.600 |
6118.900 |
6542.400 |
6701.400 |
|
Total Expenditure |
4694.700 |
5264.300 |
5649.200 |
5841.600 |
|
PBIDT (Excl OI) |
612.900 |
854.600 |
893.200 |
859.800 |
|
Other Income |
19.400 |
27.000 |
21.300 |
23.500 |
|
Operating Profit |
632.300 |
881.600 |
914.500 |
883.300 |
|
Interest |
300.400 |
305.600 |
317.900 |
289.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
331.900 |
576.000 |
596.600 |
594.300 |
|
Depreciation |
244.400 |
275.200 |
280.100 |
284.900 |
|
Profit Before Tax |
87.500 |
300.800 |
316.500 |
309.400 |
|
Tax |
46.900 |
85.600 |
101.100 |
102.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
40.600 |
215.200 |
215.400 |
207.400 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
40.600 |
215.200 |
215.400 |
207.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(1.08) |
6.21
|
2.33 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(1.62) |
9.29
|
3.17 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(2.26) |
11.36
|
3.63 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth |
|
(0.11) |
0.58
|
0.21 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
4.16 |
3.32
|
4.41 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.94 |
2.87
|
4.56 |
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 |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particular |
As on 31.03.2012 |
As on 31.03.2011 |
|
Deferred Payment Liabilities |
16.997 |
21.069 |
|
|
|
|
|
Total |
16.997 |
21.069 |
OPERATIONAL
PERFORMANCE
During the year, the Company’s operations suffered due to the huge fluctuations in the prices of cotton and yarn as well as volatile market conditions prevailing in the global arena which affected the quantum of exports as well as realisations.
The Company registered marginal increase of 1.94% in its gross turnover from Rs.19621.600 Millions in 2010-11 to Rs.20001.500 Millions in 2011-12. The export turnover decreased to Rs.73035.000 Millions in 2011-12 from Rs.7836.200 Millions in 2010-11 whereas domestic turnover increased to Rs.12698.000 Millions in 2011-12 from Rs.11785.400 Millions in the previous year. The analytical review of the Company’s performance and its businesses, including initiatives in the areas of Human Resources and Information Technology, have been presented in the section on Management Discussion and Analysis of this Annual Report.
MANAGEMENT DISCUSSION
AND ANALYSIS
BUSINESSES
Subject is a leading manufacturer of synthetic and blended spun yarn, polyester viscose fabric and denim fabric. It is also one of the largest exporters of synthetic yarn from India and has a commanding position in the domestic market too. The Company has a presence in the cotton yarn spinning and fabric processing segments.
The financial year 2011-12 came with the mixed bag for the SUBJECT wherein the first three quarters were tough and turbulent and the last quarter was encouraging and robust. The damage done by the first three quarters was recovered to an extent by the last quarter. In 2011-12, turnover of the Company increased by 1.94 per cent to Rs.20001.500 Millions from Rs.19621.600 Millions in 2010-11. This growth was on account of higher volume and better realisation. The exports touched to Rs.7303.500 Millions in 2011-12. The turnover from domestic market increased by 7.74 per cent to Rs.12698.000 Millions in 2011-12 from Rs.11785.400 Millions in 2010-11.
In what follows, they discuss the performance of the Company during 2011-12 in the different businesses.
YARN BUSINESS
SUBJECT offers one of the broadest ranges of products in terms of fibre blends, counts and shades. Fibres processed by the Company include polyester, viscose, acrylic, cotton, wool, rayon, nylon, silk, polyamide and linen. In addition, it produces a range of speciality products made out of both unorthodox fibres such as soya protein, milk protein, bamboo, bamboo-charcoal and branded fibres such as Tencel®, Greenplus®, Protex®, X static®, Beltron®, Huvis FR Polyester®, Trevira CS®, Coolmax®, Coolplus®, Birla Modal®, Excel®, Viloft®, Cupro®, Lycra®, Clima®, Seacel®, Dupont’s Sorona®, Teijin Conex®, Tworon® and Ingeo (PLA)®. Many of these yarns have been developed for specific applications and have functional qualities – natural stretch, flame retardant, industrial usage.
Currently, the Company’s yarn business accounts for 82.80 per cent of the total turnover. The yarn production has increased primarily because of better plant management and commercial production from the expansions taken up and completed during this financial year. It may be noted that the yarn production figures do not consider the production from Cheslind Textiles Limited (CTL), which operates as a subsidiary of Subject.
The current yarn portfolio of Subject can be classified into three main categories — greige yarn, dyed yarn and mélange yarn.
GREIGE YARN
Greige yarns are produced from different synthetic fibres such as polyester and viscose, blends of synthetic and natural fibres and pure cottons. Greige yarns are produced at the Company’s Banswara, Rishabhdev and partly in Kharigram plants. Although Greige yarn constitutes a relatively lower value added segment vis-à-vis Dyed and Melange, it is by far the largest in terms of volume and is crucial to the product portfolio offered to customers.
DYED YARN
Dyed yarns are produced at the Company’s Kharigram and Ringas plants. These are relatively higher value added products, and made according to customer specifications of blends, counts and shades.
MELANGE YARN
Melange yarns are premium products made from cotton and its blends and are used in manufacture of knitwear and hosiery. Today, the Company is one of the largest manufacturers of mélange yarn in the country with 44,016 spindles. While this segment is still quantitatively small compared to the greige and dyed yarn business of the Company, it commands the highest value addition in Subject’s overall yarn portfolio.
FABRIC AND DENIM
BUSINESS
This business segment comprises of fabric manufacturing capacity, which consists of the blended fabrics division with fabric processing plant at Mordi (Rajasthan) and the fully integrated state-of-the-art denim plant from spinning to value added denim fabrics at the same location.
Blended Fabrics
Subject manufactures a range of blended suiting fabrics and has a significant presence in the domestic market with its ‘Mayur’ brand. The Company’s process house at Mordi is fully integrated with weaving and processing, with a capacity of 10 million meters p.a. The Company has been regularly coming out with new ranges catering to the customer needs and changes in customer preferences and tastes. The Company had launched new ranges with the latest colour palette like Vivanta, Alberto, Dorma, Brostal, Domino, Fantum, Anniva and Old Trafford. The strategy for brandling and innovating to address customer needs and preferences, likes and tastes is likely to reap benefits for the Company in the near future.
Denim Fabrics
The Company has fully integrated state of- the art denim manufacturing plant at Mordi, with a capacity of 14 million metres p.a. of denim fabric. This project also includes a yarn spinning facility to aid in maintaining superior quality and higher degree of reliability and client servicing. The manufacturing facility also has an in house small garmenting department to cater to development of denim apparel samples for the benefit of the customers. The business is in line with the Company’s strategy to move to higher value added segments for a more broad-based growth in the future.
OPERATIONS
Manufacturing
Capacities
Subject currently has eight manufacturing facilities at six locations namely Kharigram, Mandpam, Banswara, Rishabhdev, Ringas and Mordi. All of these locations are in Rajasthan and are self- sustainable units with manufacturing facilities, captive power generation, utilities and residential colonies for staff and workers. The Company also has presence in two more locations in Tamilnadu and Pondicherry through its subsidiary CTL.
All plants specialise in the production of specific product categories and have capabilities to produce intra-segment variants. Ringas, which is one of the smaller units of the Company, specialises in the production of dyed blended yarns. The Kharigram plant produces both Dyed and Greige blended yarns. The unit at Mandpam specializes in the production of fibre-dyed mélange yarns and 100 per cent cotton dyed yarns. The Rishabhdev plant specializes in the production of blended greige yarn from synthetic fibres. The Banswara unit, which is one of the larger facilities, focusses on manufacturing of blended greige yarns from synthetic and natural fibres and cotton yarns. There are 2 plants located at Mordi: an integrated unit with a process house and weaving for manufacture of blended fabrics and a fully integrated unit with spinning and weaving facilities and process house for manufacture of denim fabrics.
The 46 MW captive thermal power project of the Company located at Mordi is supplying power to Subject’s manufacturing locations across the state of Rajasthan. The coal linkage for receiving dedicated supply of coal from Coal India Limited’s subsidiary, South Eastern Coalfields Limited (SECL), is now fully operational. Using in-house expertise, the Company has installed additional bunker for coal in both the boilers to facilitate firing pet-coke without possibility of clinker formation, thus resulting in separate feeding of Indian coal and pet-coke. This is a unique achievement made possible through dedicated efforts.
OPPORTUNITIES AND OUTLOOK
The first three quarters of the financial year had been tough for Subject. Going forward, the outlook seems to be favourable with growing consumer confidence day by day. The Indian textile sector is responding positively to the international market scenario. Simultaneously with thriving domestic demand, the textile sector is expected to see positive outlook for next few years. Hence, the outlook for the next financial year is cautiously optimistic.
CONTINGENT
LIABILITIES
(Rs. In Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
Contingent liability not provided for : |
|
|
|
a) Claims against the Company not acknowledged as debt |
4.493 |
6.938 |
|
b) Guarantees |
|
|
|
i) Default deferred payment guarantee to Exim Bank, ICICI, IDBI, Canara Bank, SBI and SBOM for securing loan given to Cheslind Textile Limited Outstanding Loan {Maximum amount for which Company may be liable during next 12 Months – Rs.28.966 Millions} |
81.631 |
104.773 |
|
ii) The Company has provided Guarantee in favour of International Finance Corporation with HEG Limited on joint and several basis on behalf of AD Hydro Power Limited |
60.000 |
60.000 |
|
c) Other money for which the Company is contingently liable. |
|
|
|
i) Excise and Customs Duties, Sales tax and Other demands disputed by the Company |
27.385 |
23.075 |
|
ii) Future Export Obligation Against EPCG |
1099.700 |
23.116 |
FIXED ASSETS
Tangible Assets
- Free Hold Land
- Lease Hold Land
- Buildings
- Plant and Machinery
- Furniture and Fixture
- Vehicles
- Vehicle under lease
- Office Equipments
- Electric Fitting
- Water Supply Installation
Intangible Assets
- Computer Software
- Non-competition Rights
- Enabling Assets
AS PER WEBSITE DETAILS
Press Releases
RSWM RECOMMENDS 100%
DIVIDEND
RSWM at its meeting held on May 01, 2013, has recommended 100% i.e. Rs 10 per share dividend on Equity Shares aggregating to Rs 231.487 Millions, which shall be paid between 11th day and 14th day from the conclusion of the Annual General Meeting, subject to the approval of the Shareholders of the Company.
RSWM Limited has informed BSE that the Board of Directors of the Company at its meeting held on May 01, 2013, inter alia, has recommended 100% i.e. Rs. 10/- per share dividend on Equity Shares aggregating to Rs. 231.487 Millions, which shall be paid between 11th day and 14th day from the conclusion of the Annual General Meeting, subject to the approval of the Shareholders of the Company.
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.56.50 |
|
|
1 |
Rs.86.01 |
|
Euro |
1 |
Rs.73.68 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
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.