MIRA
INFORM REPORT
|
Report Date : |
05.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHIVA TEXYARN LIMITED |
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Registered
Office : |
252, Mettupalayam Road, Coimbatore - 641043, Tamilnadu |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
28.05.1980 |
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Com. Reg. No.: |
18-000945 |
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Capital
Investment / Paid-up Capital : |
Rs.216.045
Millions |
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|
|
CIN No.: [Company Identification
No.] |
L65921TZ1980PLC000945 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBS03662B |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
The Company is engaged in manufacturing and marketing of
cotton yarn and other textile products. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (43) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4300000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Bannari Amman Group. It is an established company having a satisfactory track record. There
appears slight–dip in sales turnover and incurred some loss during the
current year. However, general financial position is good. Subject gets good support
from its group companies. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct and as per commitment. The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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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 |
CARE |
|
Rating |
Long term Bank Facilities = BBB- |
|
Rating Explanation |
Moderate risk of default |
|
Date |
April 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
252, |
|
Tel. No.: |
91-422-2435555 |
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Fax No.: |
91-422-2454757 / 2434446 |
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E-Mail : |
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Website : |
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Factory 1 : |
Spring Unit – I Velvarkttai Village, Dindigul District, Trichy National Highway 45,
Vedasandur Taluka, Dindigul - 624803, Tamilnadu, India |
|
Tel. No.: |
91-4551-238560 |
|
Fax No.: |
91-4551-238220 |
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Factory 2 : |
Spinning Unit –
II / Knitting Unit and Garment Unit Kodangipalayam Village, Karadivavi Road, Paruvai Post, Coimbatore
District, Tamilnadu, India |
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Wind Mills |
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Factory 3 : |
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Factory 4 : |
Gudimangalam,
Athukinathupatti and |
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Factory 5 : |
Sanganeri,
Tirunelveli District, |
DIRECTORS
As on 31.03.2012
|
Name : |
Dr. S V Balasubramaniam |
|
Designation : |
Chairman |
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|
|
|
Name : |
Mr. S V Alagappan |
|
Designation : |
Managing Director |
|
Date of Birth/Age : |
63 Years |
|
Qualification : |
B.Sc., ACA |
|
Experience : |
He has more than 38 years of experience in Industry/Business |
|
Date of Appointment : |
28.5.1980 |
|
Other Directorship : |
· Annamallai Infrastructures Limited · Bannari Amman Flour Mill Limited · Bannari Amman Spinning Mills Limited · Bannari Amman Sugars Limited · Madras Sugars Limited · Sakthi Murugan Transports Limited · SIMA Textile Processing Centre Limited · Apptex Manpower Development Services Limited · The Cotton Textiles Export Promotion Council · Confederation of Indian Textile Industry · Anamallais Agencies Private Limited · Anamallais Automobiles Private Limited · Anamallais Motors Private Limited · Bannari Amman Apparel Private Limited · Bannari Techno Park Private Limited · Kwality Clothes Private Limited · Murugan Enterprise Private Limited · Senthil Infrastructure Private Limited · Vedanayagam Enterprises Private Limited |
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|
Name : |
Mr. S V Arumugam |
|
Designation : |
Director |
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|
Name : |
Mr. S K
Sundararaman |
|
Designation : |
Director |
|
Date of Birth/Age : |
39 Years |
|
Qualification : |
M B A |
|
Experience : |
He has more than 13 years of experience in Industry/ Business |
|
Date of Appointment : |
15.5.2006 |
|
Other Directorship : |
· Bannari Amman Spinning Mills Limited · S K S Agencies Limited · Vedanayagam Hospital Limited · Abirami Ecoplast Private Limited · Sundar Ram Enterprise Private Limited |
|
|
|
|
Name : |
Mr. V Venkata
Reddy |
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Designation : |
Director |
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|
Name : |
Mr. K N V Ramani |
|
Designation : |
Director |
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|
Name : |
Mr. C S K Prabhu |
|
Designation : |
Director |
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|
Name : |
Mr. S
Palaniswami |
|
Designation : |
Director |
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|
Name : |
Mr. K R
Thillainathan |
|
Designation : |
Director |
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|
Name : |
Mr. S Marusamy |
|
Designation : |
Director |
|
Date of Birth/Age : |
67 Years |
|
Experience : |
He has more than 33 years of experience in agro processing and transport agency business. |
|
Date of Appointment : |
22.8.2006 |
|
Other Directorship : |
M S S Realtors Private Limited |
KEY EXECUTIVES
|
Name : |
Mrs. M Shyamala |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholder |
Total No. of
Shares |
% of total No. of
Shares |
|
|
|
As a % of
(A+B+C) |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
597350 |
2.76 |
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|
15592444 |
72.17 |
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|
16189794 |
74.94 |
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|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
16189794 |
74.94 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1200 |
0.01 |
|
|
1200 |
0.01 |
|
|
|
|
|
|
737975 |
3.42 |
|
|
|
|
|
|
3163590 |
14.64 |
|
|
1314443 |
6.08 |
|
|
197519 |
0.91 |
|
|
26850 |
0.12 |
|
|
39923 |
0.18 |
|
|
117163 |
0.54 |
|
|
13583 |
0.06 |
|
|
5413527 |
25.06 |
|
Total Public shareholding (B) |
5414727 |
25.06 |
|
Total (A)+(B) |
21604521 |
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) |
21604521 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in manufacturing and marketing of
cotton yarn and other textile products. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
|
Yarn |
Spindles / MT |
99000 |
89472 |
19066.18 |
|
Fabrics |
MT |
-- |
-- |
2101.31 |
|
Garments |
Nos. |
-- |
-- |
423603 |
|
Wind electricity |
KW/ Units of Lakhs |
22545* |
22545 |
323.35 |
|
Purchase of Yarn |
MT |
-- |
-- |
738.17 |
|
Cotton Waste |
MT |
-- |
-- |
5281.76 |
|
Purchase of Garments |
Nos. |
-- |
-- |
224878 |
* Exclusive of 6250
kw of wind mill capacity dedicated for captive use of Spinning Unit - I.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Canara Bank · Indian Overseas Bank · ICICI Bank Limited · UCO Bank · State Bank of Hyderabad · Bank of Maharashtra · Bank of Baroda ·
Allahabad Bank |
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Facilities : |
(Rs.
In Millions)
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
V.K.S. Aiyer and
Company Chartered Accountants |
|
Address : |
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Internal Auditors : |
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|
Name : |
Srivatsan and
Gita Chartered
Accountants |
|
Address : |
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Cost Auditor : |
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|
Name : |
Sri M Nagarajan Cost Accountants |
|
Address : |
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Associates : |
· Anamallais Agencies Private Limited · Anamallais Automobiles Private Limited · Annamallai Infrastructures Limited · Annamallai Retreading Company Private Limited · Bannari Amman Flour Mill Limited · Bannari Amman Spinning Mills Limited · Bannari Amman Sugars Limited · Sakthi Murugan Transports Limited · Shiva Cargo Movers Limited · Shiva Distilleries Limited ·
Vedanayagam Hospital Limited |
|
|
|
|
Joint Venture : |
Bannari Amman Apparel Private Limited |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
22000000 |
Equity Shares |
Rs.10/- each |
Rs.220.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
21604521 |
Equity Shares |
Rs.10/- each |
Rs.216.045
Millions |
|
|
|
|
|
Reconciliation in
number and amount of Shares :
|
Particular |
Number of shares |
Rs. In Millions |
|
Opening balance |
21,604,521 |
216.045 |
|
Closing balance |
21,604,521 |
216.045 |
Details of
shareholders holding more than 5% of shares:
|
Name of the
shareholders : |
Number of shares |
% of holding |
|
Vedanayagam Hospital Limted |
10,110,667 |
46.80% |
|
Annamallai Retreading Company Private Limited |
5,083,577 |
23.53% |
Rights, Preferences and restrictions attaching to each class of shares including restrictions on distribution of dividends and repayments of Capital :
The Company has only one class of equity shares having par value of Rs.10/- each; the equity shares rank
pari pasu in respect of payment of dividend and repayment of Capital
Terms of any securities convertible into Equity/Preference Shares issued alongwith earliest date of conversion in descending order starting from earliest such date : Not applicable
Shares reserved for issue under option and Contract/Commitments for the sale of shares/disinvestment including terms and amounts : Not applicable
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
216.045 |
216.045 |
216.045 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
859.589 |
1053.823 |
825.440 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1075.634 |
1269.868 |
1041.485 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2446.707 |
3204.407 |
3149.387 |
|
|
2] Unsecured Loans |
50.000 |
0.000 |
25.468 |
|
|
TOTAL BORROWING |
2496.707 |
3204.407 |
3174.855 |
|
|
DEFERRED TAX LIABILITIES |
222.870 |
314.953 |
210.352 |
|
|
|
|
|
|
|
|
TOTAL |
3795.211 |
4789.228 |
4426.692 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2982.564 |
3073.078 |
2736.250 |
|
|
Capital work-in-progress |
100.591 |
66.234 |
23.667 |
|
|
|
|
|
|
|
|
INVESTMENT |
14.621 |
14.978 |
141.516 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
697.165
|
1304.756 |
612.337 |
|
|
Sundry Debtors |
272.784
|
414.931 |
229.739 |
|
|
Cash & Bank Balances |
103.553
|
240.857 |
272.237 |
|
|
Other Current Assets |
92.524
|
118.765 |
97.646 |
|
|
Loans & Advances |
219.677
|
220.488 |
577.867 |
|
Total
Current Assets |
1385.703
|
2299.797 |
1789.826 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
231.713
|
176.601 |
136.926 |
|
|
Other Current Liabilities |
450.701
|
446.097 |
37.665 |
|
|
Provisions |
5.854
|
42.161 |
89.976 |
|
Total
Current Liabilities |
688.268
|
664.859 |
264.567 |
|
|
Net Current Assets |
697.435
|
1634.938 |
1525.259 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3795.211 |
4789.228 |
4426.692 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
3319.477 |
3972.714 |
1895.627 |
|
|
|
Income from Wind
Mills |
0.000 |
0.000 |
39.183 |
|
|
|
Income from
Other Operations |
0.000 |
0.000 |
10.469 |
|
|
|
Other Income |
16.164 |
23.127 |
12.850 |
|
|
|
TOTAL (A) |
3335.641 |
3995.841 |
1958.129 |
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2355.684 |
2667.739 |
|
|
|
|
Purchase of stock-in-trade |
108.883 |
196.539 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
157.553 |
(262.309) |
1613.153 |
|
|
|
Employee benefits expense |
94.738 |
116.570 |
|
|
|
|
Other expenses |
435.790 |
450.139 |
|
|
|
|
Exceptional items |
2.402 |
39.112 |
|
|
|
|
TOTAL (B) |
3155.050 |
3207.790 |
1613.153 |
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
180.591 |
788.051 |
344.976 |
|
|
|
|
|
|
|
|
|
|
FINANCIAL
EXPENSES (D) |
279.875 |
231.328 |
127.112 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS)BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(99.284) |
556.723 |
217.864 |
|
|
|
|
|
|
|
|
|
|
DEPRECIATION/
AMORTISATION (F) |
187.032 |
176.598 |
135.033 |
|
|
|
|
|
|
|
|
|
|
PROFIT /
(LOSS)BEFORE TAX (E-F) (G) |
(286.318) |
380.125 |
82.831 |
|
|
|
|
|
|
|
|
|
|
TAX (H) |
(92.083) |
114.078 |
30.984 |
|
|
|
|
|
|
|
|
|
|
PROFIT /
(LOSS)AFTER TAX (G-H) (I) |
(194.235) |
266.047 |
51.847 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
32.774 |
4.390 |
2.736 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
200.000 |
25.000 |
|
|
|
Dividend |
0.000 |
32.407 |
21.605 |
|
|
|
Tax on Dividend |
0.000 |
5.257 |
3.588 |
|
|
BALANCE / (LOSS)
CARRIED TO THE B/S |
(161.461) |
32.774 |
4.390 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
1074.460 |
852.879 |
336.774 |
|
|
TOTAL EARNINGS |
1074.460 |
852.879 |
336.774 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
6.097 |
54.756 |
31.482 |
|
|
|
Stores & Spares |
9.860 |
11.222 |
4.668 |
|
|
|
Capital Goods |
0.000 |
29.426 |
180.621 |
|
|
TOTAL IMPORTS |
15.957 |
95.404 |
216.771 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
8.99 |
12.31 |
2.40 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1004.000 |
1019.700 |
1042.400 |
|
Total Expenditure |
794.700 |
810.600 |
879.100 |
|
PBIDT (Excl OI) |
209.300 |
209.100 |
163.200 |
|
Other Income |
0.800 |
3.400 |
2.700 |
|
Operating Profit |
210.100 |
212.500 |
165.900 |
|
Interest |
71.200 |
70.700 |
63.300 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
138.900 |
141.900 |
102.600 |
|
Depreciation |
46.600 |
46.700 |
46.900 |
|
Profit Before Tax |
92.300 |
95.200 |
55.700 |
|
Tax |
33.300 |
32.700 |
18.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
59.0.000 |
62.5.000 |
37.500 |
|
Extraordinary Items |
47.5.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
106.500 |
62.500 |
37.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(5.82)
|
6.66 |
2.65 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(8.63)
|
9.57 |
4.37 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(6.55)
|
7.07 |
1.83 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.27)
|
0.30 |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.32
|
2.52 |
3.05 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.01
|
3.46 |
6.77 |
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 |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
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] |
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 |
REVIEW OF OPERATIONS
During the year, the textile mills produced 13280.94 tonnes (19066.18 tonnes) of yarn and sold 10194.43 tonnes (18516.40 tonnes) of yarn. The sales include 4317.22 tonnes (4031.09 tonnes) amounting to Rs.853.092 Millions (Rs.811.176 Millions) by way of export of yarn including Merchant Export. During the year, the Company exported Waste Cotton to an extent of 1038.70 tonnes (1088.81 tonnes) amounting to Rs.79.555 Millions (Rs.48.770 Millions). The total sales of the Spinning Division aggregated to Rs.3011.659 Millions (Rs.3772.960 Millions) of which export sales including waste cotton export amounted to Rs.932.647 Millions (Rs.859.946 Millions) constituting 30.96% (22.84%) of the total revenue.
The Knitting Division with 41 knitting machines produced 1355.56 tonnes of fabric (2101.31 tonnes) and sold 967.99 tonnes (2054.87 tonnes) including 387.91 tonnes (269.36 tonnes) by way of export. The Garment Division produced 516288 pieces (423603 pieces) of Garments and contributed revenue of Rs.166.544 Millions (Rs.157.141 Millions)
The Wind Mills, with an installed capacity of 28.795 produced 419.03 lakh units of Wind Electricity as against 436.78 lakh units (28.345 MW) in the last year. Two Wind Mills with a capacity of 0.45 MW which were under sale to Tamil Nadu Electricity Board category, has been shifted to Captive use category during the course of the year, as a result of which the entire power generation by Wind Mills is utilized for captive consumption.
The Directors report that the performance of the textile spinning units was impacted seriously due to various adverse factors which affected the textile industry. The prices of cotton (raw material) witnessed a wild fluctuation in the cotton season 2010-11. Frequent changes in the policies of the Central Government on yarn export and also export of cotton, had adverse effect on price realized by sale of yarn and also on the prices of raw materials. The severe economic crisis and recession in the overseas market had adverse impact on producers of garments, resulting in subdued demand for yarn in the domestic market. Consequently the yarn and the fabric produced by the textile units out of high priced cotton was sold at a loss during the first six months of the financial year 2011-12. Even though the prices of cotton decreased substantially, during the second half of the year, the Company could not recover the losses in full.
The restriction and control measures of Tamilnadu Electricity Generation and Distribution Company (TANGEDCO) also caused disruption in production, affecting the utilization and efficiency of spinning production. The spinning units were to operate at a higher power cost by purchase of power at a higher price from third party.
Hence the Textile Units incurred cash loss on account of reasons described above. Inspite of cash loss suffered, the Company honoured all financial commitments in time for servicing of term loans, by tight control on working capital.
PROSPECTS FOR THE
CURRENT YEAR 2012 – 2013
The Spinning units with an aggregate capacity of 89472 spindles have reached optimum production level. The scope for increasing capacity utilization in Knitting division is being explored to maximise profits from the division. The Garmenting Division has stabilized the operations and the volume of business is likely to further increase during the current year.
The Company started to make cash profits from the last quarter of the financial year 2011-12 and continues to improve upon its performance in the first quarter of 2012-13. With cotton prices expected to remain subdued due to lower offtake by spinning units all over the world, the Company will be able to make reasonable profits in the ensuing period.
However the prospects of the textile industry depends upon revival of the economy and demand from garment making units both in the domestic and export market, which will step up the demand for cotton yarn produced by spinning units. Steps have been taken by the Company to ensure that the spinning units are insulated from supply constraints of TANGEDCO to supply electricity. Further steps are being explored to produce value added yarn and fabrics.
MANAGEMENT DISCUSSION
AND ANALYSIS
COMPANY'S BUSINESS
The Company's principal line of business is manufacturing and marketing of Cotton Yarn and other textile products viz. Knitted Fabrics and Knitted Garments. The Company has two spinning units viz. Unit I near Dindigul with an installed capacity of 39072 spindles and unit II near Coimbatore with an installed capacity of 50400 spindles aggregating to 89472 spindles, Knitting unit near Coimbatore with capacity to produce about 12 MT of knitted fabric, Garment unit near Coimbatore to produce knitted garments and 80 Windmills with an installed capacity of 28.795 MW.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The Indian Textiles and Clothing Industry accounts for 4% of Country's GDP, contributes 14% to total Industrial Production and nearly 12% of the total export earnings are contributed by Textile sector. The Industry had invested Rs.2 lakh crore to upgrade and modernize under Technology Upgradation Fund Scheme (TUFS).
The FY 2010-11 saw the textile industry revive after passing through severe recession till the third quarter of FY 2009-10. The revival was supported both by recovery in domestic demand and pickup in export demand for textile products. However FY 2011-12 witnessed reversal of the fortunes of the Textile Industry due to variety of factors viz. Volatility in Cotton prices which moved from about Rs.35,000/- per candy in the beginning of cotton season 2010-11 to about Rs.65,000/- par candy and again falling to about Rs.40,000/- per candy; Government policies of first restricting cotton and yarn exports and subsequently allowing the exports; sudden glut in demand for Textiles in domestic and international markets resulting in accumulation of Inventories; Steep fall in prices of finished goods which were produced from high priced cotton resulting in huge loss; etc. Moreover the closure of dyeing units at Tirupur on account of pollution problems also aggravated the problems for the Spinning units especially in South India.
OUTLOOK
The outlook for the Textile industry remains fluid at this point of time given the challenging operating environment led by uncertainty over demand growth, volatility in raw material prices, persistent increase in other operating costs coupled with stress on liquidity. However if falling cotton prices translate into a revival of demand and capacity utilization, the outlook for Textile Industry could turn stable in the ensuing quarters.
UNSECURED LOAN
Rs. In Millions
|
Particular |
As
on 31.03.2012 |
As
on 31.03.2011 |
|
LONG-TERM
BORROWINGS |
|
|
|
Loans and advances from related parties |
50.000 |
0.000 |
|
Total |
50.000 |
0.000 |
|
|
|
|
CONTINGENT
LIABILITIES
Rs. In Millions
|
Particular |
31.03.2012 |
31.03.2011 |
|
(a) Claims against the Company not acknowledged as debt |
-- |
-- |
|
(b) Guarantees |
-- |
-- |
|
(c) Other money for which the Company is contingently liable: |
|
|
|
Disputed demands from ESI Authorities pertaining to Corporate office |
0.532 |
0.532 |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED 31.12.2012
Rs. In Millions
|
SI No |
PARTICULARS |
3 Months Ended 31.12.2012 |
3 Months Ended 30.09.2012 |
9 Months Ended 31.12.2012 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
Income from
Operations: |
|
|
|
|
|
Net Sales/ Income from Operations |
1020.133 |
999.803 |
2985.393 |
|
|
Other operating Income |
22.217 |
19.914 |
52.563 |
|
|
Total Income from
operations |
1042.350 |
1019.717 |
3037.956 |
|
2 |
Expenditure |
|
|
|
|
|
a) Cost of Materials consumed |
656.639 |
605.706 |
1898.909 |
|
|
b) Purchases of Stock in trade |
- |
- |
9.321 |
|
|
c) Changes in Inventories of Finished goods/WIP/Stock in Trade |
(0.151) |
26.157 |
(13.641) |
|
|
d) Employees benefit expenses |
36.977 |
35.474 |
101.568 |
|
|
e) Depreciation and Amortisation expenses |
46.935 |
46.674 |
140.213 |
|
|
f) Other Expenditure |
185.671 |
143.265 |
488.324 |
|
|
Total |
926.071 |
857.276 |
2624.694 |
|
3 |
Profit/(Loss) from
operations before other Income, Finance costs & Exceptional items (1-2) |
116.279 |
162.441 |
413.262 |
|
4 |
Other Income |
2.718 |
3.385 |
6.891 |
|
5 |
Profit/(Loss) before
Finance costs and exceptional items (3+4) |
118.997 |
165.826 |
420.153 |
|
6 |
Finance costs |
63.343 |
70.645 |
205.189 |
|
7 |
Profit/(Loss) after
Finance costs but before exceptional items (5-6) |
55.654 |
95.181 |
214.964 |
|
8 |
Add : Exceptional items |
- |
- |
- |
|
9 |
Profit/(Loss) from
ordinary activities before Tax (7+8) |
55.654 |
95.181 |
214.964 |
|
10 |
Tax expense |
18.143 |
32.721 |
75.439 |
|
11 |
Net Profit/(Loss)
from ordinary activities after Tax(9-10) |
37.511 |
62.460 |
139.525 |
|
12 |
Extraordinary items (net of Tax expenses) |
- |
- |
47.520 |
|
13 |
Net Profit/(Loss)
for the period (11+12) |
37.511 |
62.460 |
187.045 |
|
14 |
Paid up Equity Share Capital (Face value Rs 10/- each) |
216.045 |
216.045 |
216.045 |
|
15 |
Reserves excluding Revaluation Reserves (as per Balance Sheet of previous Accounting Year) |
|
|
|
|
16 (a) |
Earnings per Share
before extraordinary items(of Rs.10 each) |
|
|
|
|
|
i) Basic |
1.74 |
2.89 |
8.66 |
|
|
ii) Diluted |
|
|
|
|
(b) |
Earnings per Share
after extraordinary items(of Rs.10 each) |
|
|
|
|
|
i) Basic |
|
|
|
|
|
ii) Diluted |
1.74 |
2.89 |
8.66 |
|
|
|
|
|
|
|
A |
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- No of Shares |
5,414,727 |
5,414,727 |
5,414,727 |
|
|
- Percentage of Shareholding |
25.06% |
25.06% |
25.06% |
|
2 |
Promoters and
promoter group shareholding |
|
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
|
- Number of shares |
-- |
-- |
- |
|
|
- Percentage of shares (as a % of the total shareholding of promoter & promoter group) |
|
|
|
|
|
Percentage of shares (as a % of the total share capital of the Company) |
_ |
-- |
- |
|
|
b) Non-Encumbered |
|
|
|
|
|
Number of shares |
16,189,794 |
16,189,794 |
16,189,794 |
|
|
Percentage of shares (as a % of the total shareholding of promoter & promoter group) |
100.00% |
100.00% |
100.00% |
|
|
Percentage of shares (as a % of the total share capital of the Company) |
74.94% |
74.94% |
74.94% |
|
|
|
|
|
|
|
B |
INVESTOR COMPLAINTS |
|
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
|
Received during the quarter |
3 |
|
|
|
|
Resolved during the quarter |
3 |
|
|
|
|
Pending at the close of the quarter |
Nil |
|
|
NOTES :
1. Statutory Auditors of the Company have carried out limited review of the above quarterly/nine months results,
2. The Company's business relates to single segment only i.e Textiles and hence no segment reporting is given,
3. The above statement was reviewed by the Audit Committee of Directors and was taken on record at the meeting of the Board of Directors held on 14.02.2013.
4. Previous year/previous quarter figures have been regrouped/recast wherever necessary in accordance with Listing Agreement/Accounting Standard 25-Interim Financial Reporting. The Power charges are shown based on consumption actually adjusted.
FIXED ASSETS
·
Land
·
Building
·
Plant and Machinery
·
Vehicles and Equipments
·
Office Equipments
·
Vehicles
·
Furniture and Fittings
AS PER WEBSITE
PROFILE
They have two Spinning units, one at Dindigul and one near Coimbatore, Tamilnadu, India with total installed capacity of more than 90000 spindles with State of the art machineries that produce yarn of highest quality. Company also produces knitted fabrics and garments. The Company makes substantial contribution to the clean environment by installation of windmills which caters to the part of the power requirements of the Spinning units.
MANAGEMENT
Dr. S. V. Balasubramaniam, aged 71 years is the Chairman and Promoter of they Company. He holds a Bachelors degree in Commerce from Madras University and is a qualified Chartered Accountant as well as a Company Secretary. He is the recipient of the prestigious Doctor of Science (Honaris Causa) from Tamil Nadu Agricultural University, Coimbatore in the presence of Hon. President of India Dr. Abdul Kalam.
He has more than 45 years experience in sugar, textile and engineering sector. He was the president of Indian Sugar Mills Association in the year 1990-91 and 2002-03. He was awarded with the "Seva Rathnakara Award" in the year 2000 from Sri Adichunhangiri Mahasamsthana Math, Sringeri, Karnataka, the "Baktha Siromani Award" by H. H. Kanchi Shankaracharaya and the "TNF Excellence Award" from Tamil Nadu Foundation, USA.
Mr. S. V. Alagappan, aged 70 years is the Managing Director and Promoter of they Company. He is a qualified law graduate and has experience in the field of textile for more than two decades. As Vice-Chairman, he assists the Chairman of the Company on policy matters, project expansions and implementation.
Mr. S. V. Arumugam, aged 62 years is the Director and promoter of they Company. He holds a Bachelors Degree in Science and is a qualified Chartered Accountant. He has more than two decades of experience in the textile industry in planning, procurement, execution and management. He is responsible for the overall operations of the Company inter alia finance, purchase, sales and marketing.
He is the Deputy Chairman of Confederation of Indian Textile Industry (CITI) and was the Chairman of Southern India Textile Mills Association (SIMA) which has 301 Textile Mill and Confederation of Indian Industry, Coimbatore Chapter. He is the Vice Chairman of Indian Wind Power Association, Chennai.
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.55.05 |
|
|
1 |
Rs.82.75 |
|
Euro |
1 |
Rs.71.61 |
INFORMATION DETAILS
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
43 |
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.