MIRA INFORM REPORT

 

 

Report Date :

01.03.2013

 

IDENTIFICATION DETAILS

 

Name :

S KUMARS NATIONWIDE LIMITED (w.e.f. 12.04.2000)

 

REID AND TAYLOR (A DIVISION OF S KUMARS NATIONWIDE LIMITED)

 

 

Formerly Known As :

S. KUMAR SYNFABS LIMITED

 

 

Registered Office :

B-2, 5th Floor, Marathon Nextgen, Off G.K. Marg, Worli, Lower Parel (West), Mumbai – 400 013, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

28.09.1990

 

 

Com. Reg. No.:

11-058361

 

 

Capital Investment / Paid-up Capital :

Rs.3497.379 Millions

 

 

CIN No.:

[Company Identification No.]

L17120MH1990PLC058361

 

 

IEC No.:

0392025728

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMS17736F

 

 

PAN No.:

[Permanent Account No.]

AAACS0767K

 

 

Legal Form :

A Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.

 

 

Line of Business :

Manufacture and Sale of Synthetics, Blended Cotton, High Value Fine Cotton, Worsted Fabrics, Home Textiles and Ready-to-Wear Garments.

 

 

No. of Employees :

3056 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 62200000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established having a moderate track record. Despite of robust growth in the company’s revenues and healthy profitability, the liquidity position of the company remains stretched on account of its high working capital intensity, and large capital expenditure and significant inorganic investment incurred over previous year.

 

There also appears continuous dip in the share price of the company. However, business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

ICRA

Rating

B [Long term fund-based limit]

Rating Explanation

The risk prone credit quality. It carry very high credit risk.

Date

March 2011

 

Rating Agency Name

ICRA

Rating

A4 [Short term non fund based limit]

Rating Explanation

The risk prone credit it carry high credit risk.

Date

March 2011

 

 

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.

 

Subject’s name has been found enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

 

 

LOCATIONS

 

Registered Office :

B-2, 5th Floor, Marathon Nextgen, Off G.K. Marg, Worli, Lower Parel (West), Mumbai – 400 013, Maharashtra, India

Tel No.:

91-22-24824500

Fax No.:

91-22-24931685

E-Mail :

nimesh.shah@sknl.co.in

info@skumars.co.in

lnsomani@skumars.co.in

nimesh.shah@skumars.co.in

jss@sknl.co.in

Website :

http://www.skumars.net

http://www.sknl.co.in

Area :

17,000 sq. ft.

Location :

Leased

 

 

Corporate Office 1:

Avash Shree Ram Mills Premises, G K Marg, Worli, Mumbai – 400 018, Maharashtra, India

Tel. No.:

91-22-24930180/ 24933184/ 22818432/ 22818694/ 24965700/ 01/ 03/ 24933184

Fax No.:

91-22-24950402/ 24931685/ 22818619

Email :

contact@sknl.co.in

 

 

Corporate Office 2:

Sr. No.90/ H No.5, Inga Complex, Mahakali Caves Road, Andheri (East), Mumbai – 400 093, Maharashtra, India

Tel No.:

91-22-28250797

Fax No.:

91-22-28207578/ 28207577

Location :

Rented

 

 

Factory 1 :

Menswear and Home Textiles Complex

 

3B, Industrial Area No. 2, Agra Bombay Road, Dewas, Madhya Pradesh, India

Tel. No.:

91-7272-258025/ 258026/ 258027

Fax No.:

91-7272-252424

Location :

Leased

 

 

Factory 2:

Spinning and Weaving Complex

 

Chamunda Standard Mills, Balgarh, Dewas, Madhya Pradesh, India

Tel. No.:

91-7272-252891

Fax No.:

91-7272-253261

Location :

Leased

 

 

Factory 3:

Total Wardrobe Solutions

 

No. 121/52, Hosahalli Gollarahii, Magadi Road, Benglur-91, Karnataka, India   

Tel. No.:

91-8040-610610

Fax No.:

91-8041-410057

Location :

Leased

 

 

Factory 4:

High Value Fine Cotton (HVFC) and Home Textiles

 

Jhagadia Industrial Estate, GIDC, Ankleshwar, Gujarat, India

Tel. No.:

91-264-5226774

Location :

Leased

 

 

Factory 5:

Worsted Fabrics Complex

 

Thandya Industrial Area, Thandavapura, Nanjangud Taluka, Mysore--571301 District, Karnataka, India

 

 

Factory 6:

Hartmarx Corporation

 

1680, East Touhy Avenue, Desplanes, IL 60018

 

 

Factory 7:

Hickey Freeman

 

1155 Clinton Avenue North, Rochester, Monroe County, NY 14621

 

 

Factory 8:

Coppley Corporation      

56, York Boulevard, Hamilton ON, L8N 3S6

 

 

Factory 9:

Marling and Evans Limited

 

Vernon House, 40 New North Road, Huddersfield, West Yorkshire, HD1 5LS

 

 

Factory 10:

Leggiuno SPA

 

Via Dante Alighieri, 1, 21038 Leggiuno (VA) - Italy

 

 

DIRECTORS

 

AS ON 31.03.2012

 

Name :

Dr. A. C. Shah

Designation :

Chairman [up to 16.01.2012]

Address :

C – 12, Lioyds Garden, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, Maharashtra, India

Date of Birth/Age :

16.10.1932

Qualification :

Doctorate Degree in Economics

Date of Appointment :

14.11.1994

 

 

Name :

Mr. Nitin S. Kasliwal

Designation :

Vice Chairman and Managing Director [up to 12.02.2012]

Address :

Kanta Flat No.1, Little Gibbs Road, Malabar hill, Mumbai – 400 006, Maharashtra, India

Date of Birth :

22.11.1960

Qualification :

Mater in Business administration from the European Business School, Switzerland

Experience :

32 years

 

 

Name :

Mr. Anil Channa

Designation :

Deputy Managing Director

Address :

71, Sagar Tarang Co-Operative Housing Society, 15, K. Abdul Gafur Khan Road, Worth, Mumbai – 400 018, Maharashtra, India

Date of Birth/Age :

01.09.1948

Qualification :

Bachelors in Techonlogy (Textile Technology) from Indian Institute of Technology, Delhi and holds a Masters in Business Administration from the Delhi University.

 

 

Name :

Mrs. Jyoti N. Kasliwal

Designation :

Director (Promoter – Non Executive)

Address :

Kanta Flat No.1, Little Gibbs Road, Malabar hill, Mumbai – 400 006, Maharashtra, India

Date of Birth :

26.12.1960

Qualification :

Bachelors degree in arts (Economics)

 

 

Name :

Mrs. Amita Narain

Designation :

IDBI - Nominee Director (Non Executive – Independent)

Address :

Flat No. 44, Jolly Maker Apartment, No. Il, 4th Floor, Cuffe Parade, Mumbai - 400 005, Maharashtra, India

Date of Birth :

06.07.1959

Nominee Company :

IDBI Bank

 

 

Name :

Dr. Vinayshi Gautam

Designation :

EXIM - Nominee Director (Non Executive – Independent)

Address :

 9, West Avenue, Opposite Directors House, lIT Campus, Hauz Khas, New Delhi – 110 016, India

Date of Birth :

03.06.1946

Nominee Company :

Exim Bank 

 

 

Name :

Mr. Anish Modi

Designation :

IDM - Nominee Director (Non Executive – Independent)

Address :

314, Shalaka, Maharshi Karve Road, Mumbai - 400 021, Maharashtra, India

Date of Birth/Age :

21.03.1966

Qualification :

Masters degree in Finance and Economics from London School of Economics (UK)

Date of Appointment :

27.06.2007

Nominee Company :

IDM Private Limited

 

 

Name :

Mr. Denys Firth

Designation :

IDM - Nominee Director (Non Executive – Independent)

Address :

Flat 301, La Hacidenda, 31 - 33, Mount Kellett

Date of Birth/Age :

26.05.1951

Qualification :

Bachelors Degree in Arts and in Physics (Oxon) from Oxford University

Date of Appointment :

09.10.2007

Nominee Company :

India Debt Management Private Limited

 

 

Name :

Mr. Jitender Balakrishnan

Designation :

Director - Non Executive - Independent

Address :

A - 1, Flat No. 12, 1st Floor, Tahna Residency, Opposite Siddhivinayak Temple, Veer Savarkar Marg, Prabhadevi, Mumbai - 400 025, Maharashtra, India

Date of Birth/Age :

08.05.1949

Qualification :

Post Graduate Diploma in Industrial Management from Bombay University and has done Bachelors in Engineering (Mechanical) from National Institute of Technology of Madras University.

 

 

Name :

Mr. Suresh N. Talwar 

Designation :

Additional Director

 

 

Name :

Mr. M. Damodaran

Designation :

Additional Director

 

 

Name :

Mr. Martin Henry

Designation :

Director (Non Executive – Independent)

Address :

The Old Rectory, Congerstone, Neneaton, Warwickshire, CVI 36LZ, UK

Date of Birth/Age :

20.06.1933

Qualification :

Masters Degree in Arts from the University of Oxford

Date of Appointment :

24.02.2005

 

 

Name :

Mr. Vijay Kalantri

Designation :

Director (Non Executive – Independent)

Address :

2, Wahedna Appartment, 75, Hill Road, Bandra (West), Mumbai -400 050, Maharashtra, India

Date of Birth/Age :

05.01.1949

Qualification :

Government Commercial Diploma holder from Maharashtra State Technical Board and has Diploma in Textile from Sasmira Institute of Textile

 

 

Name :

Mr. Dara D. Avari

Designation :

Director (Non Executive)

Address :

A - 4, Diamond Court, 40, Nepean Sea Road, Mumbai -400 036, Maharashtra, India

Date of Birth/Age :

21.10.1934

Qualification :

Bachelor’s Degree in Science and Law from the University of Gujarat

Date of Appointment :

27.03.1997

 

 

Name :

Mr. Alexander Shaik

Designation :

Alternate Director (Alternate to Mr. Denys Firth) – Nominee – Non Executive – Independent

Address :

Asia Debt Management Hong Kong Limited, 1008, ICBC Tower, 3, Garden Road, Central, Hong Kong

Qualification :

Bachelors degree in Arts (Politics and Asian History) and Honors in Law from The University of Melbourne, Australia

 

 

Name :

Mr. Sujeet Bhale

Designation :

Director [Nominee of Exim Bank Limited w.e.f. 18.04.2012]

 

 

KEY EXECUTIVES

 

Name :

Nimesh S. Shah

Designation :

Senior Vice President and Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2012

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

4779292

1.61

http://www.bseindia.com/include/images/clear.gifBodies Corporate

73368680

24.67

http://www.bseindia.com/include/images/clear.gifSub Total

78147972

26.28

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

78147972

26.28

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

4400

0.00

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

32771576

11.02

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

45331585

15.24

http://www.bseindia.com/include/images/clear.gifSub Total

78107561

26.26

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

47974272

16.13

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs.0.100 Million

44918626

15.10

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs.0.100 Million

34031998

11.44

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

14222948

4.78

http://www.bseindia.com/include/images/clear.gifClearing Members

12088424

4.06

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

2128853

0.72

http://www.bseindia.com/include/images/clear.gifOverseas Corporate Bodies

421

0.00

http://www.bseindia.com/include/images/clear.gifTrusts

5250

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

141147844

47.46

Total Public shareholding (B)

219255405

73.72

Total (A)+(B)

297403377

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

297403377

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacture and Sale of Synthetics, Blended Cotton, High Value Fine Cotton, Worsted Fabrics, Home Textiles and Ready-to-Wear Garments.

 

 

Products :

Item Code No.

 

Product Description

5515

Blended Fabrics

5509

Blended Yarn

5111

Worsted Fabrics

 

 

Brand Name :

v      REID AND TAYLOR

v      BELMONTE

v      S. KUMARS

v      UNIFORMITY BY BELMONTE

v      CARMICHAEL HOUSE

v      STEPHENS BROTHERS

 

PRODUCTION STATUS [AS ON 31.03.2011]

 

(a) Licensed capacity: Not applicable

 

(b) Installed capacity#

i) Spinning: 12960 Spindles (Previous Year 12960 Spindles)

ii) Weaving: 103 lac mtrs p.a. (Previous Year 90 lac mtrs p.a.)

 

# (As certified by the Management, being a technical matter)

 

Particulars

Unit

Actual Production

Fabrics

Mtrs

330.62

Ready Made Garments

Pcs

43.11

 

 

GENERAL INFORMATION

 

No. of Employees :

3056 (Approximately)

 

 

Bankers :

v      Bank of India, Bullion Exchange Branch, 185, Sheikh Memom St., Mumbai – 400 002, Maharashtra, India    

v      Industrial Development Bank of India, IDBI Tower, Cuffe Parade, Mumbai – 400 005, Maharashtra, India

v      Exim Bank, World Trade Centre, Cuffe Parade, Mumbai - 400 005, Maharashtra, India

v      Union Bank of India, Union Bank Bhavan, 239, Vidhan.Bhavan Marg, Mumbai – 400 021, Maharashtra, India

v      The Jammu and Kashmir Bank Limited, Mehta House, Bombay Samacliar Marg, Fort, Mumbai – 400 001, Maharashtra, India

v      State Bank of India, Vishva Manava Double Road, Saraswathipuram, Mysore – 570 009, India

v      Punjab National Bank, ONB House, Sir PM Road, Fort, Mumbai - 400 001, Maharashtra, India 

v      Indian Overseas Bank, Elphinstone Building, Fort, Mumbai – 400 023, Maharashtra, India

v      Indian Bank, 386, Veer Savarkar Marg, Prabhadevi, Mumbai - 400 025, Maharashtra, India

v      Federal Bank, Rajabahadur Mansion, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India

v      Bank of India, Rajabahadur Mansion, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India

v      Industrial Development Bank of India, Rajabahadur Mansion, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India

v      Exim Bank, Rajabahadur Mansion, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India    

v      Union Bank of India, Rajabahadur Mansion, 32, Mumbai Samachar Marg, Fort, Mumbai – 400 001, Maharashtra, India

v      Central Bank, M G Road, Fort, Mumbai – 400 023, Maharashtra, India

v      ICICI Bank, ICICI Towers, Bandra Kurla Complex, Mumbai – 400 051, Maharashtra, India 

v      State Bank of Indore

v      Export Import Bank of India

v      ICICI Bank Limited

v      Corporation Bank

 

 

Facilities :

Secured Loan

As on 31.03.2012

[Rs. in Millions]

As on 31.03.2011

[Rs. in Millions]

Term Loans

 

 

Term Loans Under Technology Up gradation Fund Scheme

3365.966

3783.377

Term Loan Under Overseas Investment Finance Programme

1308.556

1926.420

Rupee Term Loans from Banks

1467.413

2563.337

Equipment Finance

10.031

18.479

Loans and advances from Subsidiary

(Current maturities of the above all secured loans amounting to Rs.3195.563 Millions (P.Y. Rs. 2805.741 Millions) other current liabilities)

1375.000

1650.000

Repayable on Demand Working Capital Loans from banks

 

 

Cash credit loan

14832.814

10306.442

Credit facility for pre-cum-post shipment

0.000

350.000

Other Short term loans from banks and Financial Institutions

(Of the above, loan amounting to Rs. 333.300 Millions is repayable on 31.03.2012, hence delayed for one day as on 31.03.12, out of which Rs. 307.622 Millions have since been repaid and for Balance loan amounting to Rs. 1000.000 Millions is repayable on 31.08.2012. Applicable rate of interest on both the loans is @ 15% p.a.

1333.300

1130.000

TOTAL

23693.080

21728.055

 

 

 

Unsecured Loan

As on 31.03.2012

[Rs. in Millions]

As on 31.03.2011

[Rs. in Millions]

Term loans

 

 

from Banks (in Foreign Currency)

(Current maturities of the above loan amounting to Rs. 125.678 Millions

(P.Y. Rs. 69.525 Millions) Other Current Liabilities)

28.959

73.828

Funded Interest Term loans

from Banks (in Foreign Currency)

57.342

53.158

Loans and advances from Subsidiary

400.000

400.000

Loans and advances from related party

(Interest free loan received from Anjaneya Holdings Private Limited, repayable on demand)

77.400

0.000

TOTAL

563.701

526.986

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Haribhakti and Company

Chartered Accountants

Address :

Leela Business Park, 7th Floor, Opposite Leela Galleria, Andheri Kurla Road, Andheri (East), Mumbai – 400 059, Maharashtra, India  

Tel. No.:

91-22-66729999

Fax No.:

91-22-66729777

 

 

Solicitors :

 

Name :

Little and Company

 

 

Subsidiaries :

·         Reid and Taylor (India) Limited

·         Anjaneya Foundation

 

 

Other Related Parties :

·         Brandhouse Retails Limited

·         Brandhouse Oviesse Limited

·         S. Kumars Enterprises (Synfabs) Limited

·         S. Kumars Textiles Limited

·         N’ Essence Holdings Limited

·         Rosewood Holdings Pvt. Limited

·         Anjaneya Holdings Private Limited  (Formerly Anjani Finvest Private Limited)

·         Verve Properties and Investment Private Limited

·         Ingenious Finance and Investment Private Limited

·         Natty Finance and Investment Private Limited

·         S. K. Worsteds Private Limited

·         Tulja Enterprises Private Limited

·         Sansar Exim Private Limited

·         Chamundeshwari Mercantile Private Limited

·         Maverick Mercantile Private Limited

·         SKNL Foundation

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2012

 

Authorised Capital :

No. of Shares

Type

Value

Amount

370000000

Equity Shares

Rs.10/- each

Rs.3700.000 Millions

9000000

6% Cumulative Redeemable Preferences Shares

Rs.100/- each

Rs.900.000 Millions

 

Total

 

Rs.4600.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

297403377

Equity Shares

Rs.10/- each

Rs.2974.034 Millions

527500

6% Cumulative Redeemable Preferences Shares

Rs.100/- each

Rs.52.750 Millions

4705947

0.01% Redeemable Preferences Shares

Rs.100/- each

Rs.470.595 Millions

 

Total

 

Rs.3497.379 Millions

 

NOTES:

 

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period:

 

 

Particular

As on 31.03.2012

6% Cumulative Redeemable Preferences Shares

 

No. of Shares

 

Rs. in Millions

Shares outstanding at the beginning of the year

527500

52.750

Shares redeemed during the year

--

--

Shares outstanding at the end of the year

527500

52.750

 

 

Particular

As on 31.03.2012

0.01%  Redeemable Preferences Shares

 

No. of Shares

 

Rs. in Millions

Shares outstanding at the beginning of the year

4705947

470.595

Shares redeemed during the year

--

--

Shares outstanding at the end of the year

4705947

470.595

 

 

Particular

As on 31.03.2012

Equity Shares

 

No. of Shares

 

Rs. in Millions

Shares outstanding at the beginning of the year

284978377

2849.784

Shares issued during the year

12425000

124.250

Shares outstanding at the end of the year

297403377

2974.034

 

Details of Preference shareholders holding more than 5% in 6% Cumulative Redeemable Preference shares of the Company

 

Particular

As on 31.03.2012

 

 

No. of Shares Held

 

% of Holding

Anjaneya Holdings Private Limited

372500

70.62

SICOM Limited

155000

29.38

 

Details of Preference shareholders holding more than 5% in 0.01% Redeemable Preference shares of the Company

 

Particular

As on 31.03.2012

 

 

No. of Shares Held

 

% of Holding

IDBI Limited

4306627

91.51

Indian Bank

319800

6.80

 

Details of Equity shareholders holding more than 5% in equity shares of the Company

 

Particular

As on 31.03.2012

 

 

No. of Shares Held

 

% of Holding

Anjaneya Holdings Private Limited

102515168

34.49

Morgan Stanley Mauritius Company Limited

--

--

Copthall Mauritius Investment Limited

17359445

34.49

 

Details of shares issued for consideration other than cash

 

Particular

Year (Aggregate No. of Shares)

 

2011-12

2010-11

2009-10

2008-09

2007-08

0.01% Redeemable Preference Shares :

 

 

 

 

 

Fully paid up pursuant to contract(s) without payment being received in cash

--

--

--

--

77267

 


 

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

3497.379

3373.129

3128.967

2] Share Application Money

0.000

325.446

134.035

3] Reserves & Surplus

12076.972

11425.886

7448.550

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

15574.351

15124.461

10711.552

LOAN FUNDS

 

 

 

1] Secured Loans

23693.080

21728.055

22631.346

2] Unsecured Loans

563.701

526.986

1026.716

TOTAL BORROWING

24256.781

22255.041

23658.062

DEFERRED TAX LIABILITIES

396.020

269.235

170.652

EMPLOYEE STOCK OPTION OUTSTANDING

0.000

0.000

63.184

 

 

 

 

TOTAL

40227.152

37648.737

34603.450

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

10912.541

7641.895

6513.916

Capital work-in-progress

236.363

545.121

5640.651

 

 

 

 

INVESTMENT

5168.658

5041.758

4256.881

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories

11621.045

9406.981

7259.387

 

Sundry Debtors

14937.603

11887.253

10296.335

 

Cash & Bank Balances

108.000

207.684

462.582

 

Other Current Assets

759.212

2497.143

0.000

 

Loans & Advances

7914.692

8482.033

4267.538

Total Current Assets

35340.552

32481.094

22285.842

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

2573.909

816.666

789.547

 

Other Current Liabilities

8010.264

6806.760

1652.253

 

Provisions

846.789

437.705

1652.040

Total Current Liabilities

11430.962

8061.131

4093.840

Net Current Assets

23909.590

24419.963

18192.002

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

40227.152

37648.737

34603.450

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2012

31.03.2011

31.03.2010

 

SALES

 

 

 

 

 

Income

35108.294

27576.204

21548.212

 

 

Other Income

20.068

35.524

47.468

 

 

TOTAL                                     (A)

35128.362

27611.728

21595.680

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of materials consumed

25884.175

20477.466

 

 

 

Employee benefits expenses

884.464

575.116

 

 

 

Other Expenses

1938.827

1805.026

17455.602

 

 

Changes in inventories of finished goods and work in progress

(1329.110)

(1180.923)

 

 

 

TOTAL                                     (B)

27378.356

21676.685

17455.602

 

 

 

 

 

Less

PROFIT / (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

7750.006

5935.043

4140.078

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

4035.550

3189.126

2307.738

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                (E)

3714.456

2745.917

1832.340

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

922.193

740.026

417.121

 

 

 

 

 

 

PROFIT BEFORE TAX & PRIOR PERIOD ADJUSTMENT

NA

NA

1415.219

 

 

 

 

 

 

PRIOR PERIOD (EXPENSES)/INCOME

NA

NA

3.402

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                (G)

2792.263

2005.891

1418.621

 

 

 

 

 

Less

TAX                                                                  (H)

996.576

278.856

357.596

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

1795.687

1727.035

1061.025

 

 

 

 

 

 

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

1742.100

504.800

0.000

 

 

 

 

 

 

APPROPRIATIONS

 

 

 

 

 

Transfer to Debenture Redemption Reserve

20.300

95.000

22.515

 

 

Balance in Restructured Financial Cost written Off

1431.000

0.000

533.713

 

 

Provision for Preference Dividend

3.200

53.500

0.000

 

 

Tax on Preference Dividend

0.500

8.900

0.000

 

 

Proposed Equity Dividend

297.400

285.000

0.000

 

 

Tax on proposed Equity Dividend

49.400

47.300

0.000

 

BALANCE CARRIED TO THE B/S

1735.987

1742.135

504.797

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

669.253

685.046

109.039

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

2.286

0.864

0.000

 

 

Stores & Spares

2.383

5.267

0.000

 

 

Finished Goods

522.938

2.138

7.850

 

 

Capital Goods

1.330

323.233

71.483

 

TOTAL IMPORTS

528.937

331.502

79.333

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

 

 

 

 

Basic

6.21

6.57

4.49

 

Diluted

6.20

6.25

4.32

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2012

30.09.2012

31.12.2012

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

8843.200

8288.300

8337.700

Total Expenditure

6963.400

6716.600

6951.200

PBIDT (Excl OI)

1879.800

1571.700

1386.500

Other Income

0.000

6.800

7.800

Operating Profit

1879.800

1578.500

1394.300

Interest

1074.400

1269.800

1291.700

PBDT

805.400

308.700

102.600

Depreciation

315.200

306.600

311.700

Profit Before Tax

490.200

2.100

(209.100)

Tax

181.500

8.200

(59.000)

Profit After Tax

308.700

(6.100)

(150.100)

Net Profit

308.700

(6.100)

(150.100)

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2012

31.03.2011

31.03.2010

PAT / Total Income

(%)

5.11

6.25

4.91

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

7.95

7.27

6.58

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

6.04

5.00

4.93

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.18

0.13

0.13

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

1.55

1.47

2.20

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

3.09

4.03

5.44

 

 

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

No

31]

PAN of Proprietor/Partner/Director, if available

No

32]

Date of Birth of Proprietor/Partner/Director, if available

Yes

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

YEAR IN RETROSPECT:

 

The financial highlights reflect a continued and steady growth for the Company at all levels. The Company's performance is to be viewed against the background of a slowdown in the world economy and a hesitantly progressing economy on the Indian front. The Company has achieved and demonstrated its ability to deliver substantial performance through variable and challenging environments which reflects upon the strength and diversity of its business model. The Company has been able to develop its reputation and image across a number of products and brands in the domestic and international markets. Operating in various product categories and in multiple markets ensures the Company's consistent growth.

 

The Company manufactures worsted and viscose blended suitings, yarn dyed shirtings, workwear fabric, home textiles and ready-to-wear garments. The Company has achieved consistent revenue growth with satisfactory profit margins - consolidated Sales rose by 22.7% over the previous year and Consolidated Net Profit after Minority interest recorded a 19.3% growth. This is despite not so favourable market conditions and a sluggish economic climate. This is essentially because the Company is present in all product categories - Fabrics, Apparels, Home Textiles, and has brands catering to different socio-economic segments. The Company is a customer-led, design-centric player with focused brands for each market segment and having manufacturing units in India, Italy, UK, USA and Canada. The Company's strength is derived from diversity in products and markets. Furthermore, the Company historically has a multi-format distribution network.

 

Because of the extension of fabrics brands into garments and launch of new garment brands, the share of Ready-to-Wear in total revenues is gradually increasing. In the Home Textiles market, however, the growth is stunted. The Baruche Shirt division continued to perform better. Luxury Textiles also grew smartly. On the international front, the progress of Leggiuno in Italy and HMX in USA has improved inspite of the sluggish economies in Europe and USA.

 

In the overall scheme of things, the Sales contribution of SKNL (Standalone) was 55%, RTIL 24% and International Business 21% while proportion of EBIDTA was 57%, 38% and 5% respectively.

 

The performance of Belmonte Uniformity Division was at par compared to the previous year. The sharp rise in input costs was offset by an increase in selling price. The Company was able to maintain its market share.

 

Belmonte Ready-to-Wear is now well-positioned in the fashion business. It delivers high quality products at a reasonable price and in line with changing trends. With more and more top-of-the-line international brands entering the Indian market, the competition in the branded apparel industry continues to be getting sharper by the day. However, their in-house teams of designers track national and international trends to create innovative fashionable products that customers would relate and they are able to capitalize on the rebound in customer confidence.

 

The TWS factory in Bangalore is making shirts and trousers largely for domestic market. The Suit factory which is relatively new has focused and developed customers in the domestic market with the brands and also institutional orders.

In the Luxury Textiles division, in order to neutralize the steep increase in wool prices, selling prices were suitably increased. New and innovative products were developed and introduced such as Showcase suiting fabric, pure wool suiting with Jacquard designs, designing with Laser engraving, etc.

 

The International Business segment includes HMX of USA, Leggiuno of Italy and DKNY related operations in the U.K. International acquisitions facilitate transfer of technical know-how for high value shirting and garmenting.

 

EXPORTS

 

The ongoing volatility on the Europe front and lack of economic spark in the American market has caused greater pressure on the country's exports. This has affected India's foreign trade in the past year.

 

The slowdown has also been more obvious in the emerging and developing economies. The overall consumption of textile fabric and apparel in the world markets reportedly went down. Though, the Company is predominantly a domestic player, it was able to almost maintain its exports at Rs.669.200 Millions as against Rs.685.000 Millions in the previous year. Additionally, exports from the Company's subsidiary Reid and Taylor (India) Ltd. reached Rs.374.700 Millions (previous year Rs.424.700 Millions). New markets in Africa, South America and Japan are being explored so that they can establish their presence with their premium brand image and quality products.

 

CURRENT BUSINESS OUTLOOK AND PLANS

 

'Belmonte' in the Consumer Textiles segment and 'Reid and Taylor' in the Luxury Textiles segment remain key contributors to the overall performance of the Company.

 

Going forward, the management is confident about the Company's continued progress. Strong synergies between domestic and international business through 'back-end front-end' model, enhanced distribution network, a comprehensive portfolio of 45 brands addressing all demographic segments, vertically and laterally integrated business, seamless supply chain and presence across the value chain have provided for a strong foundation to step up growth over the coming years.

 

They anticipate healthy demand for the textiles and apparel industry in India driven by growth in organized retailing, increasing consumerism, expanding middle class and heightened brand consciousness among the youth. They plan to expand the retail network through exclusive brand outlets largely in the tier 1 and 2 cities. The Company will also increase presence of its products in Large Format Stores in the current financial year.

 

The Company is engaged in capacity expansion to keep up with the increasing demand for its products. Expansion of weaving and finishing capacity is under implementation and suit factory has been set up and part production has commenced. This will help cater to the increasing demand in the Ready-to-Wear segment.

 

Luxury Cotton division is growing at a rapid pace registering noticeable growth in revenues and profitability with improved assets utilization and productivity levels. Additionally, the 'World Player' brand which addresses the economy segment, witnessed strong traction. They anticipate significant volumes from the brand as the market penetration and operational efficiencies improve. Plans for the nationwide unveiling of Kruger, a premium casual brand, have been progressing well with the launch expected soon.

 

Raw material prices are expected to be stable although at higher levels. The outlook for the current year looks bright as more corporate as well as Government institutions are looking for reliable and good brands for their consumption. They are poised very favorably in the garment and apparel space given the depth and diversity of their operations.

 

REID AND TAYLOR (INDIA) LIMITED (RTIL) INITIAL PUBLIC OFFERING (IPO):

 

Members are aware that the Company's subsidiary Reid and Taylor (India) Ltd. had completed all the required formalities to make an Initial Public Offering of issue size Rs.10000.000 Millions, of which Rs.5000.000 Millions was primary issue for funding growth and Rs.5000.000 Millions was secondary issue being offer for sale of equity shares by existing shareholders. However, because of the sluggish market conditions throughout the past months and an uncertain IPO climate, RTIL management has decided to defer its IPO for the time being.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENTS

 

The year 2011-12 was again a very challenging year both globally and domestically. The world output growth dropped to 3.9% in 2010-11 from 5.3% during 2009-10, mainly due to the depressed performance of European countries on account of continued and protracted Sovereign Debt crisis. India witnessed moderate growth, high inflation, a slowdown in reforms and heightened concerns around governance.

 

The country's annual GDP growth has been dragged down to 6.5%, the lowest since 2002-03 (previous year 8.4%). The slowdown in manufacturing to 2.5% for the year, compared to 7.6% for the previous year is particularly depressing. The fiscal deficit for 2011­12 was 5.9% higher than the estimated 4.6%. Economists have attributed the fall this time to a poor performance in manufacturing, mining and construction, a high interest rate regime, environmental issues, land acquisition problems and an uncertain global economy. Industry captains believe that the reform process should be given top priority, subsidies should be cut and FDI in various sectors be allowed.

 

The indifferent business sentiment has been keeping the private investment in the country low. During this period, it is extremely important to restore the confidence levels of investors. And for this the government needs to ensure that the reform process is continuous and very comprehensive. The Monetary Policy stance by the RBI during the year 2011-12 continued to remain tight, aiming at controlling inflation and containing inflationary expectations.

 

While the global growth rate is likely to remain subdued, the world economy is expected to continue on the path of recovery. Industry Captains are still positive about the India story and have ranked the country as the fourth most favourable nation for overall growth prospects in the next 12 months, just behind China, the US and Brazil. The domestic market opportunities remain large.

 

Indian economy has been immensely benefited by the Textile sector's contribution to the growth of manufacturing sector through continued innovation and modernization. The sector has vast growth potential in view of its inherent strengths of strong raw material base and traditional craftsmanship and designing skills. Indian Textiles and Clothing Industry, is one of the mainstays of the national economy. The profile of the Indian consumer is changing because of rapid urbanization, changing preferences due to rise in income and a young workforce.

 

FIXED ASSETS

 

Tangible Assets

 

v      Freehold Land

v      Leasehold Land

v      Building

v      Leasehold Improvements

v      Plant and Machinery

v      Office Equipments

v      Computers

v      Furniture and Fixtures

v      Vehicles

 

Intangible Assets

 

v      System Development

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER, 2012

Rs. in Millions

Sr.

No.

Particular

CURRENT 3 MONTHS ENDED

PRECEDING 3 MONTHS ENDED

YEAR TO DATE FOR THE CURRENT PERIOD ENDED

 

 

31.12.2012

30.09.2012

31.12.2012

 

 

 

 

 

1.

Net Sales/Income from Operations

8337.500

8286.200

25463.000

 

Other Operating Income

0.200

2.100

3.400

 

Income From Operations

8337.700

8288.300

25466.400

 

 

 

 

 

2.

Expenditure

 

 

 

 

Changes in inventories of finished goods, work in progress and stock in trade

3.800

21.300

(1156.400)

 

Cost of materials consumed

6485.100

6170.000

20220.300

 

Employee benefits expenses

124.200

189.000

500.900

 

Depreciation and amortization expenses

311.700

306.600

933.500

 

Other expenses

338.100

336.300

1066.400

 

Total Expenses

7262.900

7023.200

21564.700

 

 

 

 

 

3.

Profit From Operations before Other Income, Interest and Exceptional Items (1-2)

1074.800

1265.100

3901.700

 

 

 

 

 

4.

Other Income

7.800

6.800

17.400

 

 

 

 

 

5.

Profit Before Interest and Exceptional Items (3+4)

1082.600

1271.900

3919.100

 

 

 

 

 

6.

Interest

1291.700

1269.800

3661.500

 

 

 

 

 

7.

Profit After Interest but before Exceptional Items (5-6)

(209.100)

2.100

257.600

 

 

 

 

 

8.

Exceptional Items

--

--

--

 

 

 

 

 

9.

Profit from Ordinary Activities before Tax (7+8)

(209.100)

2.100

257.600

 

 

 

 

 

10.

Tax Expense

(59.000)

8.200

105.100

 

 

 

 

 

11.

Net Profit from Ordinary Activities after Tax (9-10)

(150.100)

(6.100)

152.500

 

 

 

 

 

12.

Extraordinary Item (net of expense)

--

--

--

 

 

 

 

 

13.

Net Profit for the period (11-12)

(150.100)

(6.100)

152.500

 

 

 

 

 

14.

Paid-up Equity Share Capital (Face Value of Rs.10/- Each)

2974.000

2974.000

2974.000

 

 

 

 

 

15.

Reserves Excluding Revaluation Reserve

--

--

--

 

 

 

 

 

16.

Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised

 

 

 

 

a) Basic and diluted EPS before extraordinary items

(0.53)

(0.03)

0.49

 

b) Basic and diluted EPS after extraordinary items

(0.53)

(0.03)

0.49

 

 

 

 

 

17.

Public Shareholding

 

 

 

 

-Number of Shares

219255405

164345016

219255405

 

- Percentage of Shareholding

73.72

55.26

73.72

 

 

 

 

 

18.

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

- Number of Shares

69280888

132812759

69280888

 

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

88.65

99.82

88.65

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

23.30

44.66

23.30

 

 

 

 

 

 

b) Non Encumbered

 

 

 

 

- Number of Shares

8867084

245602

8867084

 

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

11.35

0.18

11.35

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

2.98

0.08

2.98

 

NOTES

 

·         For a proper appreciation of the financial results please read "Consolidated" results.

 

·         The products of the Company include Uniforms, Work-wear fabrics and Blended suiting (P/V) marketed under "S. Kumars" and "Belmonte" brands. High Value Fine Cotton shirting fabrics under "Baruche" brand, Home Textiles under "Carmichael House" brand and Ready-to-Wear Garments sold under "Belmonte" and "World Player" brands.

 

·         During the quarter the Company has received following complaints from its investors:-

 

Previous complaints

Received during the quarter

Replied

Complaints Pending

Nil

28

28

Nil

 

·         The Company operates in one segment only - Textiles.

 

·         Figures have been regrouped / reclassified wherever necessary.

 

·         *For the loans availed by the Company, promoter shares have been pledged as additional collateral to the lenders of the Company. This is over and above primary charges created on fixed assets and current assets of the Company, which itself are sufficient to cover the borrowings of the Company.

 

·         The financial results of the Company for the quarter ended 31st December, 2012 have been reviewed by the Audit Committee and taken on record by the Board of Directors at its meeting held on 14th February, 2013.

 

·         The Limited Review of the results has been carried out by the Statutory Auditors of the Company.

 

NEWS:

 

S KUMARS US ARM FILES VOLUNTARY PETITION FOR BANKRUPTCY

 

S Kumars Nationwide US arm has filed voluntary petition for bankruptcy, reports CNBC-TV18. At 09:16 hrs S Kumars Nationwide was quoting at Rs 16.50, down Rs 0.70, or 4.07%. It has touched a 52-week low of Rs 16.40.

 

S Kumars Nationwide's US arm has filed voluntary petition for bankruptcy, reports CNBC-TV18.

 

At 09:16 hrs S Kumars Nationwide was quoting at Rs 16.50, down Rs 0.70, or 4.07%. It has touched a 52-week low of Rs 16.40.

 
It was trading with volumes of 33,427 shares. In the previous trading session, the share closed down 1.15% or Rs 0.20 at Rs 17.20.

 

The company's trailing 12-month (TTM) EPS was at Rs 6.06 per share. (Jun, 2012). The stock's price-to-earnings (P/E) ratio was 2.71. The latest book value of the company is Rs 50.61 per share. At current value, the price-to-book value of the company was 0.32. The dividend yield of the company was 6.1%.

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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.53.77

UK Pound

1

Rs.81.57

Euro

1

Rs.70.68

 

 

INFORMATION DETAILS

 

Report Prepared by :

TPT


 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

3

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

4

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--MARGINS

-5~5

-

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

30

 

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

-

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.