MIRA
INFORM REPORT
|
Report Date : |
13.06.2013 |
IDENTIFICATION DETAILS
|
Name : |
ALOK INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
17/5/1, 521/1, Village
Rakholi, Saily, Silvassa – 396 230, Dadra and Nagar Haveli |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
12.03.1986 |
|
|
|
|
Com. Reg. No.: |
54-000334 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 8262.800 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17110DN1986PLC000334 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMA02206B /
MUMA19032G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA0201C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of cotton and viscose / blended grey and processed
fabrics and 100% cotton knitted fabrics and intermingled yarn. |
|
|
|
|
No. of Employees
: |
23031 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (58) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 146000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and reputed company having fine track
record. Financial position of the company appears to be sound. There appears
slight dip in the profitability of the company during 2012. However, trade relations are reported as trustworthy. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered good 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.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Commercial Paper : A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
17.09.2012 |
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.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE [91-260-3087000/ 3087500]
LOCATIONS
|
Registered Office : |
17/5/1, 521/1,
Village Rakholi, Saily, Silvassa – 396 230, Dadra and Nagar Haveli,
India |
|
Tel. No.: |
91-260-3087000 |
|
Fax No.: |
91-260-2645289 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Peninsula Tower ‘A’ Wing, Peninsula Corporate Park, G.K. Marg, Lower
Parel, Mumbai – 400 013, |
|
Tel. No. : |
91-22-24996200/ 6500 |
|
Fax No.: |
91-22-24936078 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
B-43, Mittal Tower, Nariman Point, Mumbai – 400 021,
Maharashtra, India |
|
Tel. No.: |
91-22-22874865/ 22832923/ 24940129/ 22845233/ 22881279/ 22832923 |
|
Fax No.: |
91-22-22874864/ 24936078 |
|
E-Mail : |
|
|
|
|
|
Works : |
Spinning 412, Saily,
Silvassa, Dadra and Nagar Haveli, India Weaving a) 17/5/1 and
521/1, Rakholi / Saily, Silvassa, Dadra and Nagar Haveli, India b) 209/1 and
209/4, Dadra, of Dadra and Nagar Haveli, India c) Babla
Compound, Processing a) 254, 261, 268,
Balitha, Taluka Pardi, District Valsad, b) C-16/2,
Village Pawane, TTC Industrial Area, MIDC, Navi Mumbai District Thane, Knitting 412, Saily, Silvassa,
Dadra and Nagar Haveli, Hemming 103/2, Rakholi,
Silvassa, of Dadra and Nagar Haveli, India Polyester Yarn (POY and Texturised Yarn) 521/1, Village
Saily, Silvassa, Dadra and Nagar Haveli, India Garments a) 374/2/2,
Saily, Silvassa Khanvel Road, Dadra and Nagar Haveli, India b) 17/5/1,
Rakholi, Silvassa, Dadra and Nagar Haveli, India c) 273/1/1,
Hingraj Industrial Estate, Atiawad, d) 50/P2, 52/P1, Morai, Taluka Pardi,
District Valsad, Gujarat, India Home Textiles Bed Linen a) 374/2/2,
Saily, Silvassa, Dadra and Nagar Haveli, India b) 149/150, Morai
Taluka, Pardi, District Valsad, Terry Towel 263/P1 and
251/2P1 Balitha, Taluka Pardi, District Valsad, |
|
|
|
|
Branch Office : |
177, Alok House, Sant Nagar, East of Kailash, |
|
|
|
|
Marketing Offices (Domestic) : |
Located at: · Delhi · Bangalore · Chennai |
|
|
|
|
Marketing Offices (Overseas) : |
Located at: · Sri Lanka · Bangladesh · China · U.S.A. – Dailas · U.S.A. – New York · Czech Republic · British Virgin Islands · Dubai |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Ashok
Bhagirathmal Jiwrajka |
|
Designation : |
Whole-time director |
|
Address : |
301, Krishan
Kunj, |
|
Date of
Birth/Age : |
07.10.1950 |
|
Qualification : |
Commerce Graduate |
|
Date of Appointment : |
12.03.1986 |
|
DIN No : |
00168350 |
|
|
|
|
Name : |
Mr. Dilip Bhagirathmal
Jiwrajka |
|
Designation : |
Managing Director
|
|
Address : |
6, Bay View, |
|
Date of
Birth/Age : |
09.10.1956 |
|
Date of Appointment : |
12.03.1986 |
|
DIN No : |
00173476 |
|
|
|
|
Name : |
Mr. Surendra Bhagirathmal Jiwrajka |
|
Designation : |
Whole-time director |
|
Address : |
Flat No.901, |
|
Date of
Birth/Age : |
17.10.1958 |
|
Date of Appointment : |
12.03.1986 |
|
DIN No : |
00173525 |
|
|
|
|
Name : |
Mr. Chandrakumar
Govindram Bubna |
|
Designation : |
Executive
Director |
|
Address : |
124/5, Krishna
Kunj, Sainik Farm, Central Avenue, New Delhi – 110062, India |
|
Date of Birth/Age : |
15.01.1953 |
|
Date of Appointment : |
27.05.1993 |
|
|
|
|
Name : |
Mr. Ashok Girdharidas Rajani |
|
Designation : |
Director |
|
Address : |
101/102, Read
Rose Apartments, Pochkhanwala, Road, Mumbai-400018, |
|
Date of Birth/Age : |
15.01.1953 |
|
Qualification: |
Graduate in
Commerce |
|
Date of Appointment : |
27.05.1993 |
|
DIN No.: |
00267748 |
|
|
|
|
Name : |
Mr. Kandarp Ratanchand Modi |
|
Designation : |
Director |
|
Address : |
901, Pushpanjali
Apartments, |
|
Date of Birth/Age : |
18.05.1942 |
|
Date of Appointment : |
10.11.1994 |
|
DIN No.: |
00261506 |
|
|
|
|
Name : |
Timothy Charles
William Ingram Stanley |
|
Designation : |
Independent
Director |
|
Address : |
6, |
|
Date of Birth/Age : |
18.06.1947 |
|
Date of Appointment : |
29.07.2005 |
|
DIN No.: |
01430613 |
|
|
|
|
Name : |
Mr. David
Rasquinha |
|
Designation : |
Independent
Nominee Director |
|
|
|
|
Name : |
Mrs. Thankom T. Mathew |
|
Designation : |
Independent
Nominee Director |
|
|
|
|
Name : |
Mr. M.V. Muthu |
|
Designation : |
Independent
Nominee Director |
|
|
|
|
Name : |
Ms. Maya Chakravorty |
|
Designation : |
Independent
Nominee Director |
KEY EXECUTIVES
|
Name : |
Mr. Sunil O. Khandelwal |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. K.H. Gopal |
|
Designation : |
President Corporate Affairs and 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 |
|
|
|
|
|
|
|
|
65806696 |
7.96 |
|
|
197010440 |
23.84 |
|
|
19459382 |
2.36 |
|
|
19459382 |
2.36 |
|
|
282276518 |
34.16 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
282276518 |
34.16 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
14303 |
0.00 |
|
|
99684929 |
12.06 |
|
|
32182335 |
3.89 |
|
|
131881567 |
15.96 |
|
|
|
|
|
|
107756880 |
13.04 |
|
|
|
|
|
|
126907422 |
15.36 |
|
|
161509550 |
19.55 |
|
|
15937420 |
1.93 |
|
|
3987431 |
0.48 |
|
|
1102870 |
0.13 |
|
|
10819869 |
1.31 |
|
|
4800 |
0.00 |
|
|
22450 |
0.00 |
|
|
412111272 |
49.88 |
|
Total Public shareholding (B) |
543992839 |
65.84 |
|
Total (A)+(B) |
826269357 |
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) |
826269357 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
TrustsShareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Promoter and Promoter Group
|
Sl. No. |
Name of the
Shareholders |
Details of Shares held |
|
|
No. of Shares held |
As a % |
||
|
1 |
Ashok B Jiwrajka |
20270684 |
2.45 |
|
2 |
Dilip B Jiwrajka |
20507053 |
2.48 |
|
3 |
Surendra B Jiwrajka |
21294951 |
2.58 |
|
4 |
Chandrakumar Bubna |
432755 |
0.05 |
|
5 |
Chandrakala A Jiwrajka |
515543 |
0.06 |
|
6 |
Pramila D Jiwrajka |
1236963 |
0.15 |
|
7 |
Geeta S Jiwrajka |
449065 |
0.05 |
|
8 |
Narbada B Jiwrajka |
373972 |
0.05 |
|
9 |
Vinod Jivrajka |
698180 |
0.08 |
|
10 |
Manju Bubna |
25030 |
0.00 |
|
11 |
Alok A Jiwrajka |
2500 |
0.00 |
|
12 |
Dilip B Jiwarjka |
1900000 |
0.23 |
|
13 |
Surendra B Jiwrajka |
17559382 |
2.13 |
|
14 |
Nirvan Holdings Private Limited
|
15515501 |
1.88 |
|
15 |
Niraj Realtors and Shares Private Limited |
86137204 |
10.42 |
|
16 |
Jiwrajka Investment Private Limited |
24274091 |
2.94 |
|
17 |
Ashok Realtors Private Limited |
957792 |
0.12 |
|
18 |
Alok Knit Exports Limited |
9854768 |
1.19 |
|
19 |
Jiwrajka Associates Private Limited |
37056067 |
4.48 |
|
20 |
Alok Finance Private Limited |
23215017 |
2.81 |
|
|
Total |
282276518 |
34.16 |
Shareholding of securities (including shares, warrants, convertible
securities) of persons belonging to the category Public and holding more than 1%
of the total number of shares
|
Sl. No. |
Name of the
Shareholders |
No. of Shares held |
Shares as % |
|
|
1 |
Life Insurance Corporation of India |
35164136 |
4.26 |
|
|
2 |
IFCI Limited |
21440823 |
2.59 |
|
|
3 |
Axis Bank Limited |
16883742 |
2.04 |
|
|
4 |
IDBI Bank Limited |
10788161 |
1.31 |
|
|
5 |
IL&FS Trust Company Limited A/c IL&FS Private Equity Trust -
Leverage India Fund |
9955642 |
1.20 |
|
|
|
Total |
94232504 |
11.40 |
Details of Locked-in Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares |
Locked-in Shares as % |
|
1 |
Jiwrajka Investment Private Limited |
16000000 |
1.94 |
|
|
Total |
16000000 |
1.94 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of cotton and viscose / blended grey and
processed fabrics and 100% cotton knitted fabrics and intermingled yarn. |
||||||||||
|
|
|
||||||||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity Per Annum+ |
Actual
Production @ |
|
Woven Fabric Manufactured |
Lacs |
1754 looms and
19 Stenters |
2733.98 |
|
Yarn Dyed |
M.T. |
- |
87.23 |
|
Knitted Fabric |
M.T. |
184 Machines |
8801.38 |
|
Cotton Yarn – Manufactured |
M.T. |
330528 Spindles
and 3792 Rotors |
15245.32 |
|
Chips |
M.T. |
2 Machines |
24688.62 |
|
Texturised Yarn |
M.T. |
27600 Spindles |
122171.96 |
|
Poy |
M.T. |
5808 Spindles |
39086.83 |
|
FDY |
M.T. |
2304 Spindles |
15484.72 |
|
Handkerchief |
Pcs. |
64 Machines |
9947690 |
|
Garments |
Pcs. |
2587 Machines |
5101577 |
|
Made-ups |
Sets |
1026 Machines |
5690108 |
|
Made-ups |
Pcs. |
- |
3979671 |
|
Made-ups |
Pairs |
- |
2129586 |
|
Terry Towel |
M.T. |
48 looms and 1
Stenters |
152.61 |
|
Terry Towel |
Lacs |
- |
2.10 |
|
Terry Towel |
Pcs. |
- |
14384375 |
|
PSF |
M.T. |
- |
2242.72 |
|
PSF |
Lacs |
- |
0.90 |
Note:
@ Production includes items produced on job work basis by outside parties.
+ As certified by the management
GENERAL INFORMATION
|
No. of Employees : |
23031 (Approximately) |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Ø Allahabad Bank Ø Andhra Bank Ø Axis Bank
Limited Ø Bank of Baroda Ø Bank of India Ø Bank of
Maharashtra Ø Canara Bank Ø Central Bank of
India Ø Corporation Bank Ø DBS Bank Limited Ø Dena Bank Ø Export Import
Bank of India Ø Indian Bank Ø IDBI Bank
Limited Ø Indian Overseas
Bank Ø ING Vysya Bank
Limited Ø Oriental Bank of
Commerce Ø Punjab National
Bank Ø Standard
Chartered Banks Ø State Bank of
Bikaner and Jaipur Ø State Bank of
Hyderabad Ø State Bank of
India Ø State Bank of
Mysore Ø State Bank of
Patiala Ø State Bank of
Travancore Ø Syndicate Bank Ø The Jammu and
Kashmir Bank Limited Ø The Federal Bank
Limited Ø The Karur Vysya
Bank Limited Ø UCO Bank Ø United Bank of
India Ø Union Bank of
India Ø Vijaya Bank |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors : |
|
|
Name 1 : |
Gandhi and Parekh Chartered Accountants |
|
Address : |
6, Saraswati Darshan, 2nd Floor, Opposite New Era Cinema,
S. V. Road, Malad (West), Mumbai – 400064, Maharashtra, India |
|
|
|
|
Name 2 : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Internal Auditors : |
Bhandarkar and
Company Chartered
Accountants Devdhar Joglekar
and Srinivasan Chartered
Accountants N.T. Jain and
Company Chartered
Accountants Shah Gupta and
Company Chartered
Accountants T.R. Chadha and
Company Chartered
Accountants |
|
|
|
|
Legal Advisors and Statutory : |
Kanga and Company |
|
|
|
|
Associate companies: |
Ø Alspun
Infrastructure Limited Ø Next Creation
Holdings LLC Ø Ashford Infotech
Private Limited Ø Nirvan Builders
Private Limited |
|
|
|
|
Entities under common control: |
Ø Alok Denims
(India) Private Limited Ø Green Park Enterprises Ø Alok Finance
Private Limited Ø Jiwrajka
Associates Private Limited Ø Alok Knit
Exports Limited Ø Jiwrajka
Investment Private Limited Ø Alok Textile
Traders Ø Niraj Realtors
and Shares Private Limited Ø Ashok Realtors
Private Limited Ø Nirvan Exports Ø Buds Clothing
Company Ø Nirvan Holdings
Private Limited Ø D. Surendra and
Company Ø Pramatex
Enterprises Ø Gogri Properties
Private Limited Ø Pramita Creation
Private Limited Ø Grabal Alok
Impex Limited Ø Triumphant
Victory Holdings Limited |
|
|
|
|
Subsidiaries: |
Ø Alok Inc. Ø Alok Industries
International Limited Ø Alok Retail
(India) Limited Ø Alok Land
Holdings Private Limited Ø Alok Aurangabad
Infratex Private Limited Ø Alok H and A
Limited Ø Alok
International, Inc Ø Alok European
Retail, S.R.O. Ø Alok
International Ø Alok Infrastructure
Limited Ø Alok Apparels
Private Limited Ø Alok New City
Infratex Private Limited Ø Alok Realtors
Private Limited Ø Alok HB Hotels
Private Limited Ø Alok HB
Properties Private Limited Ø Springdale
Information and Technologies Private Limited Ø Kesham Developers
and Infotech Private Limited Ø Alok Singapore
Pte Limited Ø Grabal Alok (UK)
Limited Ø Grabal Alok
International Limited |
|
|
|
|
Joint Venture: |
Ø Aurangabad
Textiles and Apparel Parks Limited Ø New City of
Bombay Mfg. Mills Limited |
CAPITAL STRUCTURE
AFTER 14.08.2012
Authorised Capital : Rs. 15000.000
Millions
Issued, Subscribed & Paid-up Capital : Rs. 13771.156
Millions
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1000000000 |
Equity Shares |
Rs.10/- each |
Rs. 10000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
826269357 |
Equity Shares |
Rs.10/- each |
Rs. 8262.700
Millions |
|
|
Add: Forfeited Shares
(13921 shares of Rs.10/- each Rs.5/- paid up) |
|
Rs. 0.100
Million |
|
|
Total |
|
Rs. 8262.800 Millions |
NOTES:
a) During the year
38485000 (previous year Nil) equity shares are issued as under:
i] 16000000 Equity
shares of Rs.10/ – each at a permium of Rs.41/ – each allotted on conversion of
warrants issued by Grabal Alok Impex Limited, the amalgamating company. Such
warrants were sold by the original warrant holder to Jiwarajka Investment
Private Limited, a promoter group company, which exercised such warrants.
ii] 22485000
Equity shares allotted to the Shareholders of Grabal Alok Impex Limited
pursuant to the Scheme of Amalgamation for consideration other than cash.
b) Of the remaining
shares:
i] 745396 equity
shares were allotted as Bonus shares by way of capitalisation of General
Reserve.
ii] 62550 equity shares being forfeited shares were reissued during
2001.
c) Reconciliation of shares outstanding at the beginning and end of the
reporting period
|
Particulars |
31.03.2012 |
|
No of shares outstanding at the beginning of
the year |
787784357 |
|
Add: Shares allotted during the year |
|
|
Allotment of Equity shares on conversion of warrants |
16000000 |
|
Allotment of Equity shares pursuant to the Scheme of Amalgamation |
22485000 |
|
No of shares outstanding at the end of the
year |
826269357 |
d) Terms/right attached to equity shares
The company has only
one class of equity shares having a par value of Rs.10/ – per share. Each
holder of equity share is entitled to one vote per shares. The company declares
and pays dividend in Indian Rupees. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the 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 shareholder.
e) Shares reserved for issue under options
f) Grabal Alok Impex
Limited, the amalgamating company, (Refer note no 36) had issued and allotted
200 Foreign Currency Convertible Bonds of USD 1,00,000 each aggregating to USD
20 million outstanding as at the balance sheet date, which was convertible into
shares, at any time on or after 15 April 2007 and prior to the closure of
business on 06 March 2012, unless previously redeemed, converted or purchased
and cancelled. Such FCCBs have been redeemed after the balance sheet date, on
05 April 2012.
g) During the year
ended 31 March 2012, an amount of Rs.0.30 per share (previous year Rs.0.25 per
share) was recognised as proposed dividend to equity share holders.
h) Shareholder holding more than 5 percent of the share capital
|
Name of the Shareholders |
31.03.2012 |
|
|
|
No of shares Held |
% of Shares |
|
Niraj Realtors and Shares Private Limited |
71637204.00 |
8.67 |
|
Caledonia Investment PLC |
36207135.00 |
4.38 |
|
Caledonia Investment PLC (FDI) |
24211903.00 |
2.93 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
8262.800 |
7877.900 |
|
(b) Reserves & Surplus |
|
28292.200 |
23098.000 |
|
(c) Money received against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
|
|
|
|
|
(3)
Non-current liabilities |
|
|
|
|
(a) long-term borrowings |
|
70130.600 |
60514.000 |
|
(b) Deferred tax liabilities (Net) |
|
6267.700 |
5076.600 |
|
(c) Other long term
liabilities |
|
0.000 |
0.000 |
|
(d) long-term
provisions |
|
1763.900 |
793.500 |
|
|
|
|
|
|
(4)
Current liabilities |
|
|
|
|
(a)
Short term borrowings |
|
41264.200 |
28461.900 |
|
(b)
Trade payables |
|
5064.200 |
5629.200 |
|
(c) Other
current liabilities |
|
20582.000 |
10504.900 |
|
(d) Short-term
provisions |
|
756.000 |
718.700 |
|
TOTAL |
|
182383.600 |
142674.700 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
85145.400 |
73842.900 |
|
(ii) Intangible Assets |
|
375.500 |
429.200 |
|
(iii)
Capital work-in-progress |
|
9141.600 |
9065.500 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
|
1757.900 |
1399.300 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
2570.400 |
3249.200 |
|
(e)
Other Non-current assets |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
39.400 |
272.500 |
|
(b) Inventories |
|
33799.100 |
20026.200 |
|
(c) Trade receivables |
|
21521.500 |
17401.900 |
|
(d) Cash and cash equivalents |
|
12948.400 |
11398.500 |
|
(e) Short-term loans and advances |
|
13950.400 |
4250.300 |
|
(f) Other current assets |
|
1134.000 |
1339.200 |
|
TOTAL |
|
182383.600 |
142674.700 |
|
SOURCES OF FUNDS |
|
|
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
|
7877.900 |
|
|
2] Share Application Money |
|
|
0.000 |
|
|
3] Share Warrants |
|
|
0.000 |
|
|
4] Reserves & Surplus |
|
|
19284.000 |
|
|
5] (Accumulated Losses) |
|
|
0.000 |
|
|
NETWORTH |
|
|
27161.900 |
|
|
|
|
|
|
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
|
80866.600 |
|
|
2] Unsecured Loans |
|
|
4230.200 |
|
|
TOTAL BORROWING |
|
|
85096.800 |
|
|
DEFERRED TAX LIABILITIES |
|
|
4069.800 |
|
|
FOREIGN CURRENCY MONITORY ITEM TRANSLATION DIFFERENCE ACCOUNT |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
116328.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
|
62058.600 |
|
|
Capital work-in-progress |
|
|
9392.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
|
2296.900 |
|
|
DEFERREX TAX ASSETS |
|
|
0.000 |
|
|
FOREIGN CURRENCY TRANSLATION MONETARY ACCOUNTS |
|
|
1.700 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
|
14744.100
|
|
|
Sundry Debtors |
|
|
11012.300
|
|
|
Cash & Bank Balances |
|
|
13902.900
|
|
|
Other Current Assets |
|
|
0.000
|
|
|
Loans & Advances |
|
|
8359.500
|
|
Total
Current Assets |
|
|
48018.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
|
|
3799.100
|
|
|
Other Current Liabilities |
|
|
1090.200
|
|
|
Provisions |
|
|
550.700
|
|
Total
Current Liabilities |
|
|
5440.000
|
|
|
Net Current Assets |
|
|
42578.800
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
|
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
|
116328.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
89008.600 |
63884.300 |
43111.700 |
|
|
|
Other Income |
656.000 |
410.900 |
640.200 |
|
|
|
TOTAL |
89664.600 |
64295.200 |
43751.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
57483.400 |
32240.400 |
|
|
|
|
Purchase of Traded Goods |
1614.500 |
3426.200 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(15166.600) |
(2225.500) |
|
|
|
|
Employee benefits expenses |
2672.800 |
1997.600 |
|
|
|
|
Other expenses |
16813.000 |
10059.500 |
|
|
|
|
TOTAL |
63417.100 |
45498.200 |
31027.100 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
26247.500 |
18797.000 |
12724.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
11495.500 |
7362.700 |
5350.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
14752.000 |
11434.300 |
7374.000 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
7134.300 |
5187.900 |
3626.100 |
|
|
|
|
|
|
|
|
|
|
EXCEPTIONAL ITEMS |
(1212.700) |
(414.500) |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
6405.000 |
5831.900 |
3747.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
2599.700 |
1788.300 |
1274.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
3805.300 |
4043.600 |
2473.400 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
9216.100 |
1809.100 |
2766.300 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer from/to Debenture Redemption Reserves |
NA |
(3843.000) |
3001.000 |
|
|
|
Transfer to General Reserve |
NA |
250.000 |
200.000 |
|
|
|
Proposed Dividend – Equity Shares |
NA |
196.900 |
196.900 |
|
|
|
Corporate Dividend Tax thereon |
NA |
32.700 |
32.700 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
9216.100 |
1809.100 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
27679.800 |
20323.400 |
14370.600 |
|
|
|
Interest Received on Fixed Deposits |
1.800 |
0.600 |
74.500 |
|
|
TOTAL EARNINGS |
27681.600 |
20324.000 |
14445.100 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
7499.500 |
3993.300 |
5054.300 |
|
|
|
Stores & Spares |
683.300 |
473.100 |
772.500 |
|
|
|
Capital Goods |
12815.800 |
9395.500 |
3175.600 |
|
|
|
Packing Materials Purchased |
68.900 |
71.500 |
0.000 |
|
|
TOTAL IMPORTS |
21067.500 |
13933.400 |
9002.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.69 |
5.13 |
4.58 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
31.03.2013 |
|
|
1st Quarter |
2nd Quarter |
3rd Quarter |
4th Quarter |
|
Sales Turnover |
24227.500 |
33247.700 |
35208.100 |
39135.700 |
|
Total Expenditure |
16735.200 |
24404.200 |
25652.600 |
29517.800 |
|
PBIDT (Excl
OI) |
7492.300 |
8843.500 |
9555.500 |
9617.900 |
|
Other Income |
100.300 |
44.400 |
90.500 |
136.800 |
|
Operating
Profit |
7592.600 |
8887.900 |
9646.000 |
9754.700 |
|
Interest |
3284.100 |
3229.500 |
3705.200 |
4054.700 |
|
Exceptional
Items |
(1729.600) |
999.100 |
(302.800) |
301.300 |
|
PBDT |
2578.900 |
6657.500 |
5638.000 |
6001.300 |
|
Depreciation |
2133.700 |
2183.200 |
2286.100 |
2195.100 |
|
Profit
Before Tax |
445.200 |
4474.300 |
3351.900 |
3806.200 |
|
Tax |
144.500 |
1578.100 |
953.700 |
1498.400 |
|
Provisions and Contingencies |
0.000 |
0.000 |
0.000 |
0.000 |
|
Reported PAT |
300.700 |
2896.200 |
2398.200 |
2307.800 |
|
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 |
300.700 |
2896.200 |
2398.200 |
2307.800 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
4.24
|
6.29 |
5.65
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.20
|
9.13 |
8.69
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.79
|
4.52 |
3.40
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.19 |
0.14
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.05
|
2.87
|
3.13
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.23
|
1.21
|
8.83
|
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS:
|
Particulars |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
(Rs. In Millions) |
||
|
Total outstanding due to : |
|
|
|
|
- Others |
5064.200 |
5629.200 |
3799.100 |
|
(Including
acceptances Rs. 22.000 Millions (previous year Rs. 509.400 Millions) |
|
|
|
|
|
|
|
|
|
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 |
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 |
UNSECURED LOANS
|
Unsecured Loans |
31.03.2012 |
31.03.2011 |
|
|
(Rs. In Millions) |
|
|
LONG-TERM BORROWINGS |
|
|
|
From banks |
|
|
|
Foreign currency loans |
866.200 |
953.400 |
|
SHORT-TERM BORROWINGS |
|
|
|
Cash Credit
accounts, working capital demand loan etc. From Banks |
1575.300 |
699.400 |
|
Commercial Paper |
|
|
|
From Banks |
1030.000 |
3600.000 |
|
From Financial Institutions |
3350.000 |
3600.000 |
|
Inter Corporate Deposit |
117.500 |
0.000 |
|
Rupee Loans From Banks |
0.000 |
1449.500 |
|
Total |
6939.000 |
10302.300 |
PERFORMANCE
During the
financial year, the Company recorded sales of Rs.89008.600 Millions an increase
of 39.33% over the previous year and
exports (including incentives) increased by 36.62% to Rs.30295.500 Millions.
The operating profit before tax during the year stood at Rs.7617.700 Millions
an increase of 21.95% over the previous year.
All the
divisions of the company recorded growth with lead being taken by Cotton Yarn,
Polyester Yarn, Home Textiles and Apparel Fabrics.
AMALGAMATION
During the
year, the Hon'ble High Court, Bombay had vide its Order dated February 03, 2012
sanctioned the Scheme of Amalgamation (the "Scheme") of Grabal Alok
Impex Limited with the Company with appointed date April 01, 2011 and the
Scheme has become effective on 1st March, 2012.
Pursuant
to the aforesaid merger, the Company have allotted 2,24,85,000 Equity Shares of
Rs. 10/- each to the existing equity shareholders of M/s. Grabal Alok Impex
Limited in the ratio of 1:1 and the said shares are listed with BSE and NSE.
AWARDS AND
RECOGNITION
During the
year, the Company has been given the following awards and recognitions by the Cotton
Textile Exports Council of India (TEXPROCIL) in three categories:
·
GOLD Trophy for Global Exports of Bleached / Dyed / Yarn Dyed
/ Printed Fabrics in Fabrics Category
·
GOLD Trophy for Exports of Bed Linen / Bed Sheets /Quilts in
Made-ups Category
·
SILVER Trophy for Highest Global Exports Category
·
SILVER Trophy for second best export performance for the year
2010-11 in the category of Polyester Yarn by SRTEPC
MANAGEMENT DISCUSSION AND ANALYSIS
ECONOMIC OVERVIEW
WORLD
2011-12
has been a challenging year for the global economy. Growth in global output
reduced from 5.3% in Calendar Year (CY) 2010 to 3.9% in CY 2011. The recovery
in Advanced Economies (AEs) that seemed to be shaping well at the start of CY
2011 lost steam towards the fag-end of the year and output growth reduced from
3.2% in CY 2010 to 1.6% in CY 2011. Growth in emerging markets, especially
China and India, is slowing beyond what was anticipated but these two economies
are still likely to provide some support for global recovery. In fact, output
growth in the developing and emerging economies reduced from 7.5% in CY 2010 to
6.2% in CY 2011.
Amongst
the advanced economies, USA grew by 1.7%, while EU countries grew by 1.4%.
While there was positive news from USA with improved activity in the second
half of CY2011, economic activity took a sharp turn for the worse during the
fourth quarter in the Euro area. The future of the Economic and Monetary Union
(EMU) became clouded by uncertainty, as the sovereign debt crisis caused sharp
increases in key government bond rates. Plummeting confidence and escalating
financial stress were major factors in the - 1.3% (annualized) contraction of
the euro area economy in Q4, 2011. In contrast, during the same period, the
United States, witnessed acceleration in activity, as consumption and inventory
investment strengthened. However, the overall subdued demand in the advanced
economies resulted in reduction in global trade between advanced economies and
emerging economies.
The import
growth in advanced economies reduced from 11.5% in CY2010 to 4.3% in CY2011. In
line with this reduction export growth from emerging economies also reduced
from 15.3% in CY2010 to 8.8% in CY2011.
In the
emerging and developing markets economic activity dampened also due to factors
unrelated to the Euro area. In emerging Asia and in Latin America, cyclical
factors, including recent policy tightening led to trade and production slowing
down noticeably. In Middle East and North Africa (MENA), activity remained
subdued amid social unrest and geopolitical uncertainty.
The demand
slowdown has reduced non-oil commodity prices. However, as Chart C shows,
non-oil commodity inflation has not reduced significantly - from 26.3% in CY
2010 to 17.8% in CY 2011. And, geo-political instability and speculative
activities have contributed to oil price increase of 31.6% in CY 2011, which is
even greater than the 27.9% increase in CY 2010. The widespread effect of high
energy prices was evident in rising inflation for consumers. In the advanced economies,
consumer prices inflation was 2.7% in CY 2011 against 1.5% in CY 2010 and in
emerging and developing economies consumer price inflation increased from 6.1%
in CY 2010 to 7.1% in CY 2011. This environment of low economic activity with
higher price levels was a significant dampener for consumer confidence across
the world.
On a
positive note, many advanced economies have made good progress in designing and
implementing strong medium term fiscal consolidation programmes. At the same
time, emerging and developing economies continue to have the benefit of latent
demand in their economies and need to continue with reforms to maintain growth.
However,
problems could easily flare up again in the Euro area and fiscal policy could
tighten very abruptly in the United States in 2013. Consequently, while there
will be pockets of growth opportunities, there is also considerable uncertainty
in the global economy going into 2012-13.
INDIA
Lower global
demand, domestic policy uncertainties and the cumulative impact of monetary
tightening contributed to growth slowing down considerably to the estimated
level of 6.5% in 2011-12. All three sectors of the economy -agriculture,
industry and services - slowed down. Even though there was moderation in
agriculture growth, the year witnessed an all-time high food-grains output. The
services sector moderated primarily due to the slowdown in construction, while
the disappointing performance of mining and manufacturing sub-sectors
contributed to slackening of industrial growth. The quarterly GDP growth rates
where there has been a fall in 2011-12 compared to 2010-11.
The growth
slowdown has been driven by a sharp fall in investment, some moderation in
private consumption and fall in net external demand. These, along with a sense
of policy ambiguity and legislative uncertainty, have led to significant
dampening of business confidence in the country. Investor confidence, too, has
ebbed and consequently there has been a slowdown in foreign investments into
India.
The
balance of payments (BOP) also came under significant stress during Q3 of
2011-12 as the current account deficit widened substantially. Under such
conditions with capital inflows declining, there has been a drawing down of
foreign exchange reserves. This has resulted in a mismatch in demand and supply
in the foreign exchange market resulting in high volatility and sharp fall in
the valuation of the rupee against the US dollar and the Euro, especially in
the second half. Chart E plots the data.
The wider
Current Account Deficit, increase in external debt, weakening net international
investment position (NIIP) and deteriorating vulnerability indicators need to
be addressed through policy measures to stabilise and renew the growth
momentum.
Inflation
has moderated in last quarter of 201112 to below 7 %. However, the path of
inflation in 2012-13 could remain sticky with high oil prices, large suppressed
inflation, and exchange rate pass-through, impact of tax hikes, wage pressure
and structural impediments to supply response. The pricing power of companies
has declined with moderation in demand as also lower non-oil commodity prices.
This should help keep inflationary pressures under control in 2012-13.
Monetary
policy was strongly anti-inflationary until October 2011 and interest rates
were at very high levels. Subsequently, decelerating growth and declining
inflation momentum has prompted monetary policy shift to a neutral stance since
December 2011. Some easing in liquidity was effected through a total of 125
basis points reduction in the Cash Reserve Ratio (CRR) during January-March
2012. In addition, amidst increasing structural and frictional liquidity
deficits during Q4 of 2011-12, the Reserve Bank injected large amounts of
primary liquidity through Open Market Operations (OMOs).
Early
indicators suggest that growth may have bottomed out in Q3 of2011-12 but
recovery may be slow during 2012-13. With measures being taken to remove
supply-side bottlenecks, progress on fiscal consolidation could create
conditions for a more favourable growth - inflation dynamic.
TEXTILES,
CLOTHING AND FIBRE INDUSTRY
GLOBAL
TEXTILE AND APPAREL INDUSTRY
With
slowing demand from developed economies, the global textile and apparel
industry will see robust demand from developing economies that will witness
higher economic growth. The global textile and apparel market is estimated to
reach US$ 693 billion in 2012 and is projected to reach US$ 1,018 bn by 2020.
The
current global textile and apparel industry has evolved as distinct consumption
and production hubs. Production was earlier located in developed economies such
as USA and UK but over the years the manufacturing has shifted to economies
such as India, China, Bangladesh etc. due to the latter's cost advantage.
Mature economies have now emerged as major consuming hubs while developing
economies are still in the nascent stages of consumption.
By 2020,
fibre is estimated to grow by CAGR of 2% to reach US$ 121 billion while yarn is
expected to grow by a CAGR of 3% to reach US$ 293 billion. In volume terms,
fibre is estimated to reach 62 million tons while yarn is expected to reach 88
million tons in the same period.
The global
fabric production volume is projected to increase by CAGR of 3% to reach 475
billion sq mtrs and its value is projected to reach US$ 475 billion by 2020.
The global garment production will reach 185 billion pieces by 2020 and its
market is projected to reach US$ 650 billion by 2020.
GLOBAL FIBER
DEMAND
With the
rapid increase in world population, the demand of fiber is also on a rise. From
the current levels, the estimated increase in the world population is 0.7
billion and the per capita fiber consumption for the world, is expected to touch
14kgs, in the next 10 years. This indicates a big jump in the fiber consumption
and hence the existing supply capabilities will need to be pushed up. The trend
of world population and the world average fiber consumption per capita.
On a
continent level, the fiber consumption per capita for the developed world is
much higher than the developing economies. Within Asia, there is a very large
gap in the consumption per capita of India and China
Given a
higher GDP growth and a larger population base, the demand in the coming decade
is expected to be much higher from the emerging economies. And this higher
demand will need to be addressed through additional investment capabilities.
Interestingly,
the world share of cotton fiber consumption per capita has declined to 4 kg per
capita (-33% of total consumption) and the share of non cotton has increased to
8 kgs per capita. Going forward, similar trend is expected with higher demand
for the non cotton or polyester fibre.
GLOBAL SUPPLY DYNAMICS
In 2010,
cotton witnessed volatility in prices which increased the cost of production of
garments and pushed up retail prices. The main reason was the low stocks-to-use
ratio. The in-transit stocks of cotton gin fell to 34% of consumption. However
the roots of rising prices can be traced to the recession and global meltdown
in 2009 when inventories throughout the value chain were drawn lower. However
with the consumer sentiment rebounding in 2010, demand for cotton reached new
heights putting upward pressure on prices. The demand was further stifled as
few cotton producing nations decided to ban cotton exports in order to serve
the domestic market demands.
A recent
trend that is slowly emerging is the increased use man-made fibre (MMF) in
garments. Unable to pass on the rising input cost of using higher cotton blend
in apparel, manufacturers have increased the proportion of MMF in apparels. As
seen in the following graphs, USA imports of apparel has increased by 9% in
value although volume had negative growth by 4% indicating the price rise of
imports. In 2011, cotton apparel imports by volume witnessed negative growth of
12% while value of such imports increased by 3%. On the other hand, both value
and volume of MMF apparel imports increased by 19% and 8% respectively.
Apart from
rising cost of raw material, the textile and apparel industry is facing upward
cost pressure from other parameters as well. Major cost components like power
and raw material have been increasing significantly and contributing to overall
increase in production costs. For e.g. the increase in total cost of production
of ring yarn has increased by a CAGR of 8% in the time period 2006-10.
Textile
and apparel industry is a very labour intensive industry. The primary reason
why manufacturing jobs in this industry shifted from developed to developing
countries was the cost advantage offered by the latter. But rising standard of
living and inflations has pushed up labour costs across the textile and apparel
manufacturing countries. India saw an average increase of 10% to 15% in labour
cost other countries like China and Cambodia saw increase in labour cost
ranging from 15% to 35%.
ROLE OF
CHINA IN GLOBAL TEXTILE AND APPAREL INDUSTRY
China is
the world's second largest economy with annual GDP of US$ 5.8 trillion growing
nearly by CAGR of 10%. The contribution of this country cannot be undermined as
China is the largest exporter of textile and apparel products. In 2010, China
accounted for 36% share in global textile and apparel trade. However as a
result of natural transition towards a developed economy, China's concentration
on high-end and value generation industries is increasing and diminishing
towards the traditional textile and apparel industry.
The
textile industry is an energy intensive industry. Due to the textile industry,
China contributes nearly 25% of global carbon dioxide emissions and it reach
8.2 million tons last year, thereby curtailing the chances to grow the textile
industry.
On the other
hand, the domestic demand for Chinese products will increase due to surge in
consumerism. With rising per capita income, the Chinese are willing to spend
and consume more thus luring the exporters to focus on servicing the domestic
demand. Rising per capita income hints at the fact that people have higher
disposable income indicating higher wage levels.
China's
policy of controlling population for the past many years has resulted in a very
skewed demographic structure.
It is expected
that 23% of Chinese population will be over 65 years of age by 2020, putting
tremendous pressure on the government spending on the older population and
income generating population of the country. A fast ageing population and one
child policy would cause wage inflation to rise at an even brisker pace than
the average rise of 17% in the period 2000-2011.
The
combination of above factors is expected to severely limit China's capability
to grow this industry and meet the global textile and apparel demand. This
constraint will provide an opportunity for other textile and apparel nations to
grow and meet the global demand. It is estimated that Chinese textile and
apparel industry has the potential to reach US$ 850 billion by 2020, it can
only reach about US$ 800 billion leaving open a deficit of US$ 50 billion that
can be met by other countries.
EVOLVING
GLOBAL INDUSTRY STRUCTURE
The US$
664 billion textile and apparel industry is undergoing some structural changes
to sustain itself in this dynamic environment. Till few years back companies
were focusing through inorganic growth to increase sales but in the face of
increased competition, companies have now started to focus on growth through
acquisitions and mergers. Inorganic growth enables companies to access new
markets, enhance product portfolio, value chain integration in a shorter span
of time.
In
developed economies value retailers, who provide products that represent value
for money proposition, have grown in the period 2005-10 by an average CAGR of
17% while brands have barely grown by an average CAGR of 2% in the same period.
It is expected that going forward, the trend will grow stronger as consumers
will rationalize their spending helping the growth of such value retailers at
the expense of brands.
A
relatively newer trend that has attracted the attention of retailers and brands
is multi-channel retailing. It was earlier perceived that consumers need to
touch and feel products before they purchase but off late online retailing has
emerged very strongly. In fact few retailers have developed and invested in
online retail to aid overall sales. Thus it is not surprising that apparel is
among the top 3 online categories that is purchased in USA and western Europe.
In a bid
to increase their overall sales brands and retailers are reaching out to
international markets as these newer markets have relatively lesser competition
and increasing appetite for international brands. These newer markets are
typically located in developing countries.
Textile and
apparel industry is an energy and labour intensive industry. The production
processes of textile and apparel impacts the environment and puts pressure on
the natural resources of Earth. Globally buyers are becoming aware of the
impact of their decisions related to manufacturing of apparel and textiles.
Buyers have tied up with contract manufacturers and have implemented
regulations requiring manufacturers to reduce dependence on natural sources and
reduce wastage during the production process. Brands and retailers have adopted
global change programs and incorporated the philosophy of sustainable
production. At the consumer level too, the change has initiated as demand for
apparel produced using sustainable practices has started to increase.
INDIAN
TEXTILE AND APPAREL INDUSTRY OUTLOOK
Indian
textiles and apparel sector has an overwhelming presence in the economic life
of the country. It plays a pivotal role in contribution to industrial output,
export earnings and employment generation.
The Indian
textiles industry is extremely diverse encompassing hand-spun and hand woven
sector at one end of the spectrum, and capital intensive, sophisticated mill
sector at the other. Decentralized power looms / hosiery and knitting sector
form the largest section of the Sector. Indian textile industry has the
capacity to produce a diverse range of products suitable to the different
market segments, catering both domestic and exports markets. The major
sub-sectors of India textile and apparel sector are cotton/man-made fibre
textiles mill industry, man-made fibre / filament yarn industry, wool and
woolen textiles industry, sericulture and silk textiles industry, handlooms,
handicrafts, jute and jute textiles industry, and textiles exports.
Indian
economy in 2011 has witnessed moderation in growth. Turbulent global
conditions, falling value of rupee, rising inflation coupled with a weak
industrial sector have emerged as challenges for India economy. However,
despite these challenges favourable demographic conditions and rising income
level will help to keep growth story of India's domestic demand for apparels
intact.
INDIAN
TEXTILE AND APPAREL MARKET
India's
total textile and apparel industry size (domestic + exports) is estimated to be
INR 4180000.000 Millions ($ 89 bn) in 2011 and is projected to grow at 9.5%
CAGR to reach INR 950,000 (US$ 221 bn) by 2020.
Out of INR
4180000.000 Millions exports accounts for INR 1450000.000 Millions and domestic
industry accounts for INR 2730000.000 Millions. Domestic textile and apparel
industry comprises of apparel, home textiles and technical textiles.
The
following factors will act as growth drivers for Indian domestic textile and
apparel market:
·
India will add almost 140 million people in the consuming age
group of 15-59 Years. Unlike any other top-10 economy (including China), India
will have the lowest median age and the trend will be more distinctly
pronounced by 2020 as average age of population of most other nations increases
even more rapidly. India's population in the consuming age group of 15-59 years
is more aspirational and aware. They have higher spending power and will
consume more number of product categories than their parents. Increasing
urbanization will also drive domestic demand in India.
·
During the last fifty years the population of India has grown
more than two and half times, from a figure of 439 million in 1961 to 1210
million in 2011. But urban India has grown by nearly five times. By 2020,
almost 35% of the Indian population will be living in the urban areas and urban
population will be more than the combined population of the US, UK and Germany.
Increase in urban population will drive consumption in urban India.
·
Literacy rate among the youth has already gone up by 25% in
the last 20 years. As a consequence of better education these youths will get
better jobs, and hence, will have a higher earning potential. Number of
households with annual incomes of US $ 7000 and more is going to treble from
about 30 million today to 100 million by 2020. There will be approximately 400
million individuals in the bracket of middle to high income group by 2020 and
there will be around 70 million aspiring consumers who can afford and consume
like a developed world's consumer.
·
As a result of increasing consumption, minimum order quantity
of Indian domestic retailers will increase. Previously, extremely small order
quantity was a deterring force for domestic textile and apparel players to
focus on Indian market. However, increase in order quantity will make domestic
fashion market lucrative for players presently targeting export opportunities.
·
With an anticipated US$ 50 billion fresh investment over next
10 years, organized retail will show impressive CAGR of more than 25% and will
account for 25% of India's retail market by 2020. Organized apparel retail will
derive momentum from fresh investments in retail.
·
Emergence of new economic Hot Spots - areas of high economic
activity will open up enormous opportunities for fashion retail. Currently the
top 8-10 cities contribute disproportionate share of the markets in most of the
consumer goods categories including apparels. However, going ahead growth in
India would be far more exclusive as the new hot spots of consumption
(primarily driven by investments in these regions) appear on the map. With
investments in mega projects and development of infrastructure India will see
the emergence of around 350 Hot Spots in near future. These new centers of
consumption would present an opportunity for apparel and fashion retail companies
to focus on and derive growth from the consumption potential. Also,
conventional model of modern retail will not be able to offer all formats or
cater to all customer groups in these hotspots and new models like e-tailing
will sprout in coming years.
BUSINESS
PERFORMANCE
Alok
Industries ('Alok' or 'the Company') is primarily a textiles and apparels major
with offerings across the entire value chain. The strength of the Company's
business is its integrated textiles operations, both in cotton as well as in
polyester. While the Company has acquired some facilities in Europe (through
wholly owned subsidiary Mileta, a Czech Republic based integrated textiles
company), the core manufacturing facilities are based in India (Silvassa, Vapi,
Navi-Mumbai and Bhiwandi). Utilising its cost competitive integrated production
base, the Company caters to markets in India and across the world. The
stand-alone financial result, which is the major part of the Company's
consolidated results, reflects the performance of the Company's textiles
operations out of India.
The
company has also invested into some other businesses. This includes its foray
into the textile and apparel retail business both in India and in the United
Kingdom (UK). In India, its retail business is carried out through its
subsidiaries under the store brand 'H and A', while it operates the 'Store
Twenty One' outlets through its overseas subsidiary Grabal Alok (UK) Limited.
To explore
the opportunities in real estate sector, the Company had entered the real
estate business through its real estate subsidiary Alok Infrastructure Limited.
However, the company has in-principle decided to exit the real estate business.
MERGER
WITH GRABAL ALOK IMPEX
During the
year, the Honourable High Court, Bombay, sanctioned the scheme of amalgamation
between Alok Industries Limited and Grabal Alok Impex Limited with appointed
date of 1 April 2011.
The merger
has resulted into operational synergies between the two companies and
consolidates all textile operations under one entity. The swap ratio for the
merger was 1:1 as determined by Ernst and Young (for every one share of Grabal,
one share of Alok was allotted). The fairness opinion on the valuation was
provided by Fortune Financials Services (India) Limited.
Consequent
to the merger, the company issued 22485000 equity shares of Rs. 10/ - each to
the shareholders of Grabal Alok Impex Limited (of which 1900000 shares were
issued to Alok Benefit Trust).
On
amalgamation of the company with Grabal Alok Impex Limited., Grabal Alok (UK)
Limited, an associate company of both companies, has now become a majority
owned subsidiary of Alok Industries Limited.
Grabal
Alok Impex Limited is in the business of manufacturing embroidered products and
current year numbers of the company include sales of Rs.1609.600 Millions and
Profit Before Tax of Rs.75.800 Millions of Grabal Alok Impex Limited and hence
are not comparable with previous year.
FINANCIAL
PERFORMANCE (STAND ALONE)
During FY
2011-12, Alok Industries achieved growth of 39.33% in sales, 39.64% growth in
operating earnings before interest, depreciation, tax and amortisation
(Operating EBITDA) and 21.95% growth in operating Profit before tax (Operating
PBT). Due to volatility and depreciation in the Indian rupee against the US
Dollar, the Company had to provide 'marked to market' on its foreign exchange
transactions amounting to Rs.1212.700 Millions, as extra-ordinary provisioning.
Consequently, Profits after tax, stood at Rs.3805.300 Millions in 2011-12. In
terms of regular operations, the performance in 2011-12 reflects the Company's
continuous endeavour to utilise its increased capacities and capital
investments towards higher growth. Table 6 gives a summary of Alok's financial performance,
as a stand-alone entity.
TEXTILES
BUSINESS: OPERATIONS REVIEW
The
strategy adopted by Alok Industries Limited. in its core textile operations is
focus on integration both in cotton as well as in polyester. It has a presence
across the entire textiles and apparel value chain. The cotton integrated
operations begins with sourcing of cotton and converting it into cotton yarn
followed by fabric production through knitting and weaving operations. Bulk of
its sales happens at fabric stage (called apparel fabrics) and some part of the
fabrics gets converted into garments. On the integrated cotton business, it
also manufactures bed sheets and towels in its home textile division.
On the
polyester integrated business, its raw material is PTA (Purified Terephthalic
Acid) / MEG (Mono-Ethylene Glycol) and its manufacturing operations starts with
converting PTA / MEG into Chips / POY (Partially Oriented Yarn) through CP
(Continuous Polymerisation). Its strategy in polyester business is to produce
more of finished products like DTY (Draw Texturised Yarn), FDY (Fully Drawn
Yarn), PSF (Polyester Stable Fibre) and Cationic yarn with thrust on exports.
COTTON
YARN
Alok set
up its cotton spinning facility as a measure of backward integration to
captively feed its weaving and knitting facilities. Almost, 85 - 90% of its
cotton yarn production is consumed internally. Alok also does trading in cotton
/ cotton yarn and sells part of its manufactured yarn based on opportunities
available in the market. The reported sales data of this division only accounts
for external sales of raw cotton and yarn.
OVERVIEW
OF COTTON SPINNING DIVISION
Open end
rotors (20,000 tons) to support in-house apparel fabric and home textiles segment
Alok's 85%-90% cotton yarn manufactured is utilized for captive consumption by
the apparel fabric (woven and knit fabrics) and home textiles divisions (Bed
Sheets and Towels).
Sales made
externally by cotton spinning business constituted about 3.62% of total revenue
of the company in 2011-12
Procurement
of raw cotton at right price and during harvest remains crucial; looking at the
volatility in the prices of cotton in the recent past, the company is now
holding inventory to the extent of 3-4 months requirements matching with its
average sales order book which is also 3-4 months for apparel fabrics, home
textiles and garments. Thus, it has in-built risk mitigation for cotton price
fluctuation. Further, due to its integrated operations cotton constitutes about
27% - 28% of its fabric selling price, thus has limited impact on the overall
operations
APPAREL
FABRIC
Alok
produces wide range of woven and knitted fabrics and enjoys a strong reputation
for its quality products in the market. The high quality of its products is a
result of its integrated operations, designing capabilities, product knowledge
and state of the art manufacturing facilities. Besides in house manufacturing,
it also outsources fabrics from power looms and other mills to meet its requirements.
The unique selling proposition of Alok in this segment is its wide range of
products which virtually covers the entire requirement of its diversified
customers.
OVERVIEW
OF APPAREL FABRIC DIVISION
·
Alok has one of the largest woven and knitted fabrics
capacities in the country —186 million meters p.a. for woven fabrics and -18200
tons p.a. for knitted fabrics
·
Key business segment for the company contributing -46% of
total revenue in 2011-12 with revenue of Rs. 41316.400 Millions
·
Integrated operations, large scale, state of the art weaving
, knitting and processing, in-house designing team, wide range of products,
differentiates the company in this segment
·
The company manufactures fabric primarily against orders
which helps mitigate the risk of unsold inventory, while the pricing takes into
account prevailing market price of raw material and foreign currency rate for
exports
·
Strong backward integration with in-house cotton and blended
yarn production helps minimize the impact of any adverse fluctuations in yarn
prices
·
The apparel fabric division has a highly diversified and
reputed customer base which includes garmenting exporters, garments brands,
wholesalers, traders and retailers in domestic market, garmenting companies in
international market and institutional sales to armed forces , government
companies and corporates for work wear or technical textiles both in domestic
and international markets
·
Company has identified technical textile products and
high-end yarn dyed fabric as its major growth areas
FASHION
WEAR
In fashion
wear fabrics, Alok produces a wide range in both knit and woven fabrics. Fabric
types include twills, voiles, cambric, poplins, Lycra poplins, gabardines,
jacquard, satins, matte, canvases, dobby, lawn, yarn dyed and many more. There
are several distribution channels through which the Company caters to specified
target customer groups. The direct customers include overseas brands and
retailers, Indian garments exporters or converters in other countries, domestic
garment manufacturers, brands, retailers and traders.
YARN DYED
FABRICS
Within
fashion-wear, the Company is focusing on yarn dyed fabrics, which are used for
fashionable shirting and high end women's wear and command premium prices in the
market. In this segment, Alok has benefited in terms of technology absorption
for high-quality yarn-dyed fabrics, through its acquisition of Mileta. Alok has
a capacity to produce 9,000 TPA of dyed yarn, which is being further expanded.
WORK-WEAR
AND TECHNICAL TEXTILES
Technical
textiles are specialty fabrics, such as Are retardant fabric, water repellent
and soil release fabric and high visibility fabric. They require special
functionality and are used in industrial and other high technology applications.
Due to their specialised nature, they enjoy higher unit selling price and
better margins than conventional textiles. It is an import substitute and is
estimated to grow at a CAGR of 10% to reach Rs.1460000.000 Millions (US$ 31 bn)
by 2020. Some of the technical fabrics manufactured by the company and their
industry
HOME
TEXTILES
Alok
ventured into the bed sheet segment in 2003. With a strong thrust on exports,
in a short span of time, the Company has emerged as market leaders in this
segment. Within this segment, Alok added terry towels to its portfolio with the
commissioning of a new plant in 2009-10.
There are
different customer segments in home textiles. It is exported to overseas
retailers and brands, sold in the domestic market to retailers and brands, and
also distributed through the Indian retail venture 'HandA' stores and the UK
based 'Store Twenty One' outlets. The Company has successfully created a large
and prestigious customer base establishing relationships with global majors in
the Home Textiles segment.
Alok's
range in Home Textile segment today includes the entire range of bed linen,
curtains, towels and includes wide variety of products such as sheets-sets,
duvets, comforters, blankets, quilts, bed-in-a-bag, in prints, solids, embroidery,
sateen's, flannel, Jacquards, Dobbies, yarn-dyed from 180 TCs to 1000 TCs. It
has also added special finishes such as wrinkle free, anti-bacterial,
fire-retardant, etc.
OVERVIEW
OF HOME TEXTILES DIVISION
·
Alok's capacity in this segment is 105 million meters p.a.
for wider width fabric and 13,400 tons p.a. for terry towels
·
It has emerged as the largest producer and exporter of bed
linen in the country and has won several Gold trophies from Texprocil, Ministry
of Textiles, Government of India
·
With total sales of Rs.12504.100 Millions, home textiles
division accounted for -14% of overall revenues in 2011-12
·
Integrated operations with spinning / processing capabilities
enables better control over product quality and give better margins
·
Presence in the relatively high end home textiles (300 to 800
counts product category) enable higher price realisation and helps mitigate
competition from other low cost manufacturing countries and domestic companies
·
In home textile segment, Alok is mainly present in the
exports markets (-97% exports) where it faces competition from Chinese,
Pakistani and Turkish manufacturers
·
Established and reputed multinational clientele results in
strong customer profile; periodic pricing resets to protect margins in case of
increase in input costs
During the
year, Alok's home textile division recorded growth of about 25% and increased
to Rs.12504.100 Millions compared to Rs.10001.100 Millions in 2010-11. While
keeping its presence in the domestic market, its major focus is on export market
majorly in USA. The terry towel division is about 12.75% of the total home
textile division. The expanded capacities of sheeting fabric (22.5 mn meters
p.a.) and terry towel (6700 tons p.a.) was added in the last quarter of the
year and the full benefit of these capacities would come in 2012-13.
Alok's
home textile business is primarily focused on developed markets whose sheer
market size is very high. Even though there was a demand contraction in these
markets due to the economic slowdown, Alok continues to register strong export
growth. This bears testament to the fact that there is consolidation of
sourcing in the global market where end customers are focusing on a few
reliable good quality suppliers. And, the fact that Alok has built strong relationships
with major international customers
GARMENTS
Alok
produces wide range of garments in knitted and woven for ladies, gents and
children for variety of applications such as sportswear, active wear, casual
wear and sleepwear. The garments are made from different types of fabrics based
on the requirement of the buyers and prevailing fashion cycle. Fabrics used for
garments includes solid, melange, yarn dyed, auto stripes, jacquards,
embroidered and variety of prints like transfer prints, and block prints.
Alok's
major strength lies in manufacturing fabrics and garments are relatively a
small business for Alok with major thrust on exports. Garment division's sales
were Rs.2172.800 Millions in 2011-12 constituting 2.44% of company's total
sales. Going forward, the Company would be focusing more on value added
institutional sales for garment which includes product lines like work-wear and
uniforms.
OVERVIEW
OF GARMENTS DIVISION
·
Company has an installed capacity of 22 million pieces spread
over three locations
·
Garment division accounted for -2.50% of total sales, almost
90% of which is exported
·
Going forward higher focus on institutional segment
POLYESTER
YARN
For Alok,
polyester yarn is an important segment in its overall business and it has been
steadily growing in terms of its contribution in the overall business. In
polyester also, as a strategy, Alok is an integrated player. It procures PTA
and MEG and converts the same into POY / Chips through Continuous
Polymerization (CP) plant, which is further processed to make draw texturised
yarn (DTY), fully drawn yarn (FDY), cationic yarn and polyester stable fibre
(PSF).
What
differentiates Alok in this segment is its focus on producing finished yarn.
This positioning at the higher end of the polyester value chain enables the
company to capture margins at each stage and make it more competitive and
sustainable. To further consolidate its position in the industry and improve
margins, it is also developing, its capability in higher value added products
like master batch, technical textiles, etc.
Polyester
Staple Fibre (PSF) and Partially Oriented Yarn (POY) demand is expected to grow
at 7.5 % compounded average growth Rate (CAGR) over next 2 years, due to rising
consumption of blended and non-cotton yarns. Demand is expected to grow to 8.5
% CAGR after 2012-13 due to limited availability of cotton and higher
substitution by polyester. However, in the domestic market, there has been
continuous increase in capacities which has made this business very
competitive.
OVERVIEW
OF POLYESTER DIVISION
·
Polyester Yarn division is the second highest revenue
generating segment for Alok after Apparel Fabric division, with sales of
Rs.29792.200 Millions, which is -33% of total company's revenue in 2011-12
·
Demand scenario likely to remain good due to increasing
substitution of natural fibres
·
Competition from Chinese manufacturers, large Indian peers
and unorganised domestic texturisers; however Alok's large scale integrated
operations and focus on finished products make it a sustainable player
·
Relatively moderate EBDITA margins due to commodity nature of
business; volatility in raw material (MEG and PTA) prices may affect
profitability margins if not passed through adequately;
·
The polyester commands higher ROCE of about 25%-26% due to
higher asset turnover (about 2.25 times) and lower working capital intensity
FUTURE
OUTLOOK
EXPECTED
GROWTH IN GLOBAL TEXTILE TRADE
Global
trade in textiles and clothing increased to US$ 602 bn in FY2010 from US$ 355
bn. in FY2000. Trade is expected to grow to US$ 1,000 bn in 2020 from US$ 602
bn in 201 Oat a CAGR of 5%.
·
Textile production has shifted from western countries to
China and India and these countries have become production hubs
·
China is a leader in textile production with total industry
size of USD 351 bn. (domestic USD 135 bn. And exports USD 216 bn.)
·
China's export of textile and clothing has increased from USD
28.3 bn. (13.3% of World trade) in 1990 to USD 216 bn. (35.9% of world trade)
in 2010. It took over almost entire share that EU lost during this period
However,
with the transition of Chinese economy to the world's second biggest economy,
few challenges have come up which would restrict its further growth of market
share. China is now facing issues relating to rising labour cost, power
availability, rising domestic consumption, currency appreciation etc. These
developments in China are an opportunity for India to cash on and gain market
share even in difficult market conditions. As one of India's leading textiles
players, Alok's growth is expected to be in line with that of the Indian
Industry.
EXPECTED
GROWTH IN INDIAN TEXTILE INDUSTRY
India's
USD 78 Billion total Textile and Apparel industry has the potential to grow @
11% CAGR to reach USD 220 Billion by 2020. The growth is expected from both
export as well as domestic markets. The respective growth drivers in exports
and domestic markets are given below:
EXPORT
DEMAND DRIVERS:
·
Production Shift - Textile manufacturing continues to shift
to low cost Asian countries
·
De-Risking from China - Overseas buyers are now looking at
India as an alternative to de-risk their sourcing requirements from China
·
Advantage India - Availability of raw materials , especially
cotton, integrated operations and design skills in India
DOMESTIC
DEMAND DRIVERS:
Higher
disposable income - Rising per capita income would lead to increase in
consumption of Textiles at 11% CAGR Increasing retail penetration - Textiles
and clothing retail comprise 40% of organised retailing in India. Share of
organised retailing to increase from about 5% currently to about 24% by FY 2020
Favourable demographic profile-The % of earning population (15-60 years) in the
total population is rising and is around 60%.
STRATEGY
FORMULATED BY ALOK INDUSTRIES LIMITED
Backed by
the large scale integrated operations resulting in economies of scale and
stable margins, wide products basket and diversified customer base, Company is
optimistic about its prospects in 2012-13. Alok is well positioned to take up
both challenges and opportunities in the present textile scenario. In the
coming years, the company would focus on implementing following strategy to
grow and generate higher returns for all its stakeholders:
Optimising
the operations - Having set up the large integrated plants, the company would
work on sweating all its assets and reducing cost.
Reduction
in debt /equity and exiting non - core businesses - Company, would bring back
its investments made in real estate by monetising them. The proceeds of the
same would be used to retire debt at consolidated and standalone level.
Moreover, Company is also contemplating equity infusion, which would improve
its debt/ equity. It is also formulating strategies for its retail operations.
Improving
the ROCE and Asset Turnover - With object of improving the overall ROCE of the
company, it would be looking at increasing the asset turnover by concentrating
on value added products on the cotton side and increasing the capacities on
polyester side.
Free Cash
Flow - The Company would be making all attempts to achieve free cash flow
situation by reducing its working capital cycle and limiting its capital
expenditure.
Setting up
of research Development and Innovation - With the renewed thrust on innovation
led growth, the Company would set up in next few years a state of the art
Research Development and Innovation centre with the object of transforming the
company in next few years into a specialised product company.
With
focussed attention on: Core Operations, improvement in ROCE and Generation of
Free Cash flow, they look forward to future with great optimism.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND TWELVE MONTHS ENDED 31.03.2013
(Rs. in millions)
|
Particular |
Quarter Ended |
Period Ended |
|
|
|
31.03.2013 [Reviewed] |
31.12.2012 [Reviewed] |
31.03.2013 [12 Months Reviewed] |
|
Income from Operations |
|
|
|
|
Net
Sales/Income from Operations |
39135.700 |
35208.100 |
131819.000 |
|
Total Income from operations (net) |
39135.700 |
35208.100 |
131819.000 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Cost of
raw material |
28355.700 |
26471.000 |
84600.400 |
|
(b) Purchase
of stock in trade |
- |
145.300 |
553.200 |
|
(c) Changes in inventories of finished goods, work in progress and
stock in trade |
(3446.400) |
(5319.600) |
(10002.700) |
|
(d) Employee
benefit expenses |
749.400 |
693.200 |
2903.100 |
|
(e)
Depreciation and amortization expenses |
2195.100 |
2286.100 |
8798.100 |
|
(f) Other
Expenses |
3859.100 |
4162.700 |
1,8256.000 |
|
Total Expenses |
31712.900 |
27938.700 |
105108.100 |
|
Profit from Operations before Other Income,
Finance costs and Exceptional item |
7422.800 |
7269.400 |
26710.900 |
|
Other Income |
136.800 |
90.500 |
372.000 |
|
Profit/ Loss from Ordinary Activities
before Finance costs and Exceptional item |
7559.600 |
7359.900 |
27082.900 |
|
Finance costs |
4054.700 |
3705.200 |
14273.500 |
|
Profit/ Loss from Ordinary Activities after
Finance costs but Exceptional item |
3504.900 |
3654.700 |
12809.400 |
|
Exceptional item |
(301.300) |
302.800 |
732.000 |
|
Profit/ Loss from Ordinary Activities
before tax |
3806.200 |
3351.900 |
12077.400 |
|
Tax Expenses |
1498.400 |
953.700 |
4174.700 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
2307.800 |
2398.200 |
7902.700 |
|
Paid- up Equity Share Capital (Face value
of the share – Rs. 10) |
8262.800 |
8262.800 |
8262.800 |
|
Reserves excluding revaluation reserves as per
balance sheet of Previous Accounting Year |
|
|
|
|
Earnings per share |
|
|
|
|
Basic |
2.79* |
2.90* |
9.56 |
|
Diluted |
2.77* |
2.90* |
9.55 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public shareholding |
|
|
|
|
Number of Shares |
543992839 |
544052839 |
543992839 |
|
Percentage of
Shareholding |
65.84% |
65.84% |
65.84% |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
278760673 |
268840283 |
278760673 |
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
98.75% |
95.26% |
98.75% |
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
33.74% |
32.54% |
33.74% |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of Shares |
3515845 |
13376235 |
3515845 |
|
- Percentage of Shares (as a % of the total shareholding of
promoter and promoter group) |
1.25% |
4.74% |
1.25% |
|
- Percentage of Shares (as a % of the total share capital of the company) |
0.42% |
1.62% |
0.42% |
|
|
Particulars |
Quarter Ended 31.03.2013 |
|
B |
Investor complaints [Nos.] |
|
|
|
Pending at the
beginning of the quarter |
0 |
|
|
Received during
the quarter |
41 |
|
|
Disposed of
during the quarter |
39 |
|
|
Remaining
unresolved at the end of the quarter |
2 |
Notes:
1.
Considering the high level of international operations and present internal financial
reporting, the Company has identified geographical segment as its primary
segment and business segment as its secondary segment. The company is operating
in a single business segment i.e. Textile and as such all business activities
revolve around the segment.
The
geographical segment consists of domestic sales and export sales. Revenue
directly attributable to segments is accordingly reported. Since the
resources/services/assets are used interchangeably within these segments, it is not practical to allocate
segment expenses, assets (except debtors) or liabilities contracted, to these
segments. Accordingly, no disclosure relating to the same is made.
(Rs. in millions)
|
PARTICULARS |
QUARTER ENDED |
Period Ended |
|
|
|
31.03.2013 (Reviewed) |
31.12.2012 (Reviewed) |
31.03.2013 [12 Months] (Reviewed) |
|
Segment Revenue |
|
|
|
|
Domestic |
29911.700 |
28114.300 |
98805.100 |
|
International |
9224.000 |
7093.800 |
33013.900 |
|
|
39135.700 |
35208.100 |
131819.000 |
|
Trade Receivables |
|
|
|
|
Domestic |
55926.500 |
41030.800 |
55926.500 |
|
International |
3125.600 |
2096.300 |
3125.600 |
|
|
59052.100 |
43127.100 |
59052.100 |
2. Exceptional items comprise:
I.
Exchange loss/ (gain) arising out of a) restatement of foreign
currency liabilities/ assets and b) Mark to market (MTM) losses on foreign
exchange derivatives taken by the Company, considering the volatility in the
Indian Rupee (INR) against US Dollar (USD) [Rs. (742.300) Millions for the
Quarter, Rs. 229.300 Millions for the preceeding Quarter and Rs. (699.400)
Millions for period ended 31 March 2013. Rs. (2275.600) Millions for
corresponding Quarter in the Previous year and Rs. 1212.700 Millions for the
Previous year]
II.
Provision for diminution in the value of investments in /
loans to subsidiaries in the retail business and loss on transfer of such
investments [Rs. 441.000 Millions for the Quarter, Rs. 73.500 Millions for the
preceeding Quarter and Rs. 1431.400 Millions for Period Ended 31 March 2013.
Rs. Nil for Corresponding Quarter in the previous year, and Rs. Nil for the
previous year]
3. Figures
for the quarter ended 31 March 2012 are the balancing figures for the full
financial year and the published year to date figures upto the 3rd quarter of
the financial year of the Company and Grabal Alok Impex Limited, the
amalgamated company.
4. The
Board of Directors of the Company have decided to extend the accounting year
end from 31 March 2013 to 30 June 2013 so as to incorporate the effect of the
following developments in the financial statements :
I.
Rights Issue of equity shares of Rs. 5510.000 Millions
concluded after 31 March 2013 and
II.
Merger scheme filed with Honourable Bombay High Court (subject
to approvals), for consolidating all domestic subsidiaries into one wholly
owned subsidiary, viz. Alok Infrastructure Limited for real estate and retail
ventures, in line with the company's stated objective of exiting non-core
businesses.
5. The above
financial results of the Company for the quarter and period ended 31 March
2013, reviewed and recommended by the Audit Committee, were taken on record by
the Board of Directors of the Company at its meeting held on 29 May 2013 and
have been reviewed by the Statutory Auditors.
6. The
figures of previous periods have been reclassified / regrouped wherever
necessary to correspond with those of the current period.
CONTINGENT LIABILITIES IN RESPECT OF:
(Rs. In Millions)
|
Particulars |
31.03.2012 |
|
Customs duty on
shortfall in export obligation in accordance with EXIM Policy (The company is
hopeful of meeting the export obligation within the stipulated period) |
Amount Unascertained |
|
Pending Litigation |
0.500 |
|
Guarantees given by banks on behalf of the Company |
734.800 |
|
Corporate
Guarantees given to bank for loans taken by Subsidiary Companies |
9776.200 |
|
Bills discounted |
2147.900 |
|
Taxation Matters : |
|
|
a) Income tax demand
mainly on account of alleged short deduction of taxes for AY 2010-11 and AY
2011- 12 on certain payments. The company has filed an appeal with the
Commissioner of Income Tax (A) and is hopeful of favourable decision. |
16.900 |
|
b) Income Tax
demand during the previous years of Rs.59.100 Millions mainly on account of
alleged short deposition of TDS amounts arising from wrong TAN numbers
mentioned while uploading the TDS return and certain payments not considered
by the Tax authorities, although duly paid by the company and short deduction
of tax in respect of certain payments with respect to AY 2006-07 to 2009-10.
The company has filed an appeal with the commissioner of income tax (A) and
also made application for rectification u/s 154 providing details of amounts
paid to the bank. Such rectification was carried out during the year for
majority of the amount and for the balance of Rs.2.300 Millions mainly
pertaining to short deduction of taxes, the company is hopeful of favourable
decision. |
2.300 |
|
c) Demands of
Works Contract Tax contested not acknowledged as debts as the company is
hopeful of favourable decision. |
5.900 |
|
d) Income tax
amounting to Rs112.900 Millions, mainly on account of disallowance of interest
and expenditure incurred towards exempt income. The company has filed an
appeal with the commissioner of income tax (A) and is hopeful of favourable
decision. |
112.900 |
FIXED ASSETS:
Tangible Assets:
Ø Freehold Land
Ø Leasehold Land
Ø Buildings
Ø Office Premises
Ø Plant and Machinery
Ø Computer and Peripherals
Ø Office Equipment
Ø Furniture and Fittings
Ø Vehicles
Ø Tools and Equipment
Intangible Assets:
Ø Computer Software
Ø Trademarks/ Brands
PRESS RELEASE:
ALOK INDUSTRIES CONSIDERS
EXIT FROM RETAIL BIZ, STOCK UP 2%
JAN 10, 2013
Textile company Alok Industries gained more than 2 percent intraday in early trade on Thursday on reports that the company may exit from retail business.
Business Standard reported that the company is looking at exiting its retail ventures as it wants to focus on its ‘core businesses’ and shift from non-core businesses such as retail which have increased its debt burden.
“On a turnover of Rs 120000.000 Millions, there is no sanity of Rs 400.000 to 500.000 Millions revenues coming from the retail segment. Retail is a non-core segment for us,” sources told the newspaper.
The company had a debt burden of Rs 160000.000 Millions as of March 2012 and debt equity of 4.6:1.
At 09:49 hours IST, the stock rose 2.06 percent to Rs 12.38 on Bombay Stock Exchange. Market capitalisation of the company currently stands at Rs 10229.200 Millions.
FY12-13 NET SALE UP
BY 45.17% TO RS. 35208.100 MILLIONS EBIDTA INCREASED BY 42.20% AT RS. 9646.000
MILLIONS
Mumbai, 13 February,
2013:
Alok Industries Limited, one of the leading integrated textile companies in India, today reported net sales of Rs. 35208.100 Millions for the quarter ended December 31, 2012, as compared to Rs. 24252.500 Millions in the corresponding period of the last fiscal, registering a growth of 45.17%. The EBIDTA for the quarter was at Rs. 9646.000 Millions as against Rs.6783.200 Millions in the corresponding quarter of last fiscal year, registered a growth of 42.20%. The net profit after tax stood at Rs. 2398.200 Millions as compared to loss of Rs. 375.800 Millions in the same quarter of last fiscal year.
Net Sales for nine months ended 31 December, 2012 was at Rs. 92683.300 Millions, an increase of 48.03% as compared to Rs.62611.400 Millions in the corresponding period of the last fiscal. Export sales for the nine months ended 31 December, 2012 stood at Rs. 23789.900 Millions as compared to Rs. 22146.500 Millions in the corresponding period of the last fiscal, a growth of 7.42%. The net profit after tax for the nine months ended 31 December, 2012 stood at Rs. 5595.100 Millions, as compared to Rs. 969.900 Millions in the corresponding period of the last fiscal, registering a growth of 476.87%
Management Comment
Commenting on the results, Mr. Dilip Jiwrajka, Managing Director, said, “The third quarter results are in line with our expectations, thanks to growth in Apparel Fabrics. We are heartened by these results, especially in wake of the challenging economic situation. This speaks about the diversified nature of our business model in textiles. Our focus on exiting the non-core areas and enhancing our core strengths has intensified. Our order book position continues to be encouraging, while production efficiencies are gradually attaining their peak level.“
About Alok Industries
Limited:
(BSE Code: 521070)
(NSE Code: ALOKTEXT) (Reuters Code: ALOK.BO) (Bloomberg Code: ALOK@IN)
Established in 1986, Alok Industries Limited is amongst the fastest growing vertically integrated textiles solutions provider in India. A diversified manufacturer of world-class home textiles, apparel fabrics, garments and polyester yarns, Alok has capacities of 105 mn meters of sheeting fabric and 13,400 tons of terry towels for its home textiles business, 186.00 mn meters of apparel width woven fabrics, 18200 tons per annum of knitted fabrics and 22 million pieces per annum of garments. Alok has achieved complete integration. The company also has a strong presence in the polyester segment with a capacity of 2,00,000 tons per annum of polyester textured yarn, FDY of 60,000 tons per annuam supplemented by 2,40,000 tons per annum of POY / Chips / Fibre. The company has a blue chip international customer base comprising of world renowned retailers, importers and brands.
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. 58.27 |
|
|
1 |
Rs. 91.16 |
|
Euro |
1 |
Rs. 77.50 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
58 |
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.