1. Summary Information
|
|
|
Country |
India |
|
Company Name |
GARDEN
SILK MILLS LIMITED |
Principal Name 1 |
Mr. Praful Amichand Shah |
|
Status |
Moderate |
Principal Name 2 |
Mr. Alok P Shah |
|
|
|
Registration # |
04-003463 |
|
Street Address |
Garden
Mills Compound, Sahara Gate, Surat – 395010, Gujarat, India |
||
|
Established Date |
23.07.1997 |
SIC Code |
-- |
|
Telephone# |
91-261-2611197 - 98 / 2611513/ 2611615/ 2647119/ 2347117 |
Business Style 1 |
Manufacturer |
|
Fax # |
91-261-2611029/ 2611502 – 503 23 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Polyester Yarns |
|
|
# of employees |
Not Available |
Product Name 2 |
-- |
|
Paid up capital |
Rs.382,906,000/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter and Promoter Group -57.22% Public shareholding -42.78% |
Banking |
Bank of Baroda |
|
Public Limited Corp. |
YES |
Business Period |
16 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
B
(36) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Associate
Company |
India
|
Surat
Textile Mills Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
4,095,454,000 |
Current Liabilities |
4,445,558,000 |
|
Inventories |
4,887,433,000 |
Long-term Liabilities |
12,623,110,000
|
|
Fixed Assets |
13,218,417,000 |
Other Liabilities |
1,088,324,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
18,156,992,000 |
|
Invest& other Assets |
868,348,000 |
Retained Earnings |
4,529,754,000 |
|
|
|
Net Worth |
4,912,660,000 |
|
Total Assets |
23,069,652,000 |
Total Liab. & Equity |
23,069,652,000 |
|
Total Assets (Previous Year) |
23,748,789,000 |
|
|
|
P/L Statement as of |
31.03.2012 |
(Unit: Indian Rs.) |
|
|
Sales |
35,064,945,000 |
Net Profit/ (Loss) |
(788,795,000) |
|
Sales(Previous yr) |
34,004,799,000 |
Net Profit(Prev.yr) |
878,656,000 |
MIRA
INFORM REPORT
|
Report Date : |
11.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
GARDEN SILK MILLS LIMITED (w.e.f. 09.06.1987) |
|
|
|
|
Formerly Known
As : |
VARELI WEAVES PRIVATE LIMITED |
|
|
|
|
Registered
Office : |
Garden Mills Compound, Sahara Gate, Surat – 395010,
Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
23.07.1997 |
|
|
|
|
Com. Reg. No.: |
04-003463 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.382.906 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111GJ1979PLC003463 |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Polyester Yarns. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (36) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 19600000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. The
company has incurred a loss in the current year. However, trade relations are
reported as fair. Business is active. Payments are reported to be slow but
correct. 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 |
CARE |
|
Rating |
A4 (Short Term Bank Facilities) (Revised
from A3) |
|
Rating Explanation |
Minimal degree of safety. It Carry very high
credit risk. |
|
Date |
June 19, 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
BB (Long Term Bank Facilities) (Revised from
BBB) |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
June 19, 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 : |
Garden Mills Compound, Sahara Gate, Surat – 395010,
Gujarat, India |
|
Tel. No.: |
91-261-2611197 - 98 / 2611513/ 2611615/ 2647119/ 2347117 |
|
Fax No.: |
91-261-2611029/ 2611502 – 503 23 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
3000 Sq. ft |
|
Location : |
Owned |
|
|
|
|
Corporate Office : |
Manek Mahal, 90 Veer Nariman Road, Mumbai – 400020, Maharashtra, India |
|
Tel. No.: |
91-22-22873117-19 |
|
Fax No.: |
91-22-22048112 |
|
|
|
|
Factory 1 : |
Vareli Complex, Village Vareli, Taluka Palsana. District Surat - 394327, Gujarat, India |
|
Tel. No.: |
91-2622-271241-47 |
|
Location : |
Owned |
|
|
|
|
Factory 2 : |
Village Jolwa, Taluka Palsana, District Surat - 394305, Gujarat, India |
|
Tel. No.: |
91-2622-271287-89 |
|
Location : |
Owned |
DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. Praful Amichand Shah |
|
Designation : |
Chairman and Managing Director |
|
Address : |
Rampura Tunki, |
|
Date of Birth/Age : |
14.12.1938 |
|
Date of Appointment : |
23.07.1979 |
|
|
|
|
Name : |
Mr. Alok P Shah |
|
Designation : |
Joint Managing Director |
|
Address : |
Rampura Tunki, |
|
Date of Birth/Age : |
11.09.1970 |
|
Qualification: |
B.S. (Stanford University) M.B.A. (University of Chicago, USA) |
|
Date of Appointment : |
19.10.2001 |
|
Directorship held
in other Public Limited Companies (excluding foreign and private companies) |
· Prabhat Silk Mills Limited · Palomar Textiles Limited · Wheel and Axle Textiles Limited · Rosekamal Textile Limited · Bijlee Textiles Limited · Jarigold Textiles Limited · Vareli Trading Company Limited |
|
|
|
|
Name : |
Mr. Sanjay S. Shah |
|
Designation : |
Executive Director |
|
Address : |
Rampura Tunki, |
|
Date of Birth/Age : |
19.02.1956 |
|
Qualification: |
B.A. (Essex University) U.K. |
|
Date of Appointment : |
19.02.1990 |
|
Directorship held in
other Public Limited Companies (excluding foreign and private companies) |
· Kashah Investment Limited · Surat Textile Mills Limited |
|
|
|
|
Name : |
Mr. Suhail P Shah |
|
Designation : |
Executive Director |
|
Address : |
Rampura Tunki, |
|
Date of Birth/Age : |
01.09.1974 |
|
Qualification: |
Ph.D. Theoretical Physical Chemistry, (University of Chicago, M.S., Physical Chemistry A.B., Chemistry and Physics, (Harvard University). |
|
Date of Appointment : |
30.10.2006 |
|
Directorship held
in other Public Limited Companies (excluding foreign and private companies) |
· Prabhat Silk Mills Limited · Palomar Textiles Limited · Wheel and Axle Textiles Limited · Rosekamal Textile Limited · Bijlee Textiles Limited · Jarigold Textiles Limited · Vareli Trading Company Limited |
|
|
|
|
Name : |
Mr. Rajen P. Shah |
|
Designation : |
Director |
|
Address : |
13/A-266, Ami
Bunglow, |
|
Date of Birth/Age : |
12.04.1951 |
|
Date of Appointment : |
19.02.1990 |
|
|
|
|
Name : |
Mr. Arunchandra N. Jariwala |
|
Designation : |
Director |
|
Address : |
901, Shree Apartments, Makkai Pool, Nanpura, |
|
Date of Birth/Age : |
05.08.1931 |
|
Date of Appointment : |
18.07.1988 |
|
|
|
|
Name : |
Mr. Jitendra Purshottamdas Shah |
|
Designation : |
Director |
|
Address : |
28, Amrapalas Bunglow, |
|
Date of Birth/Age : |
12.06.1933 |
|
Date of Appointment : |
12.07.1987 |
|
|
|
|
Name : |
Mr. Yatish Parekh |
|
Designation : |
Director |
|
Address : |
Sunayam Bunglow No.2, Adarsh Society, Athwalines, |
|
Date of Birth/Age : |
30.11.1951 |
|
Date of Appointment : |
19.10.2001 |
|
|
|
|
Name : |
Mr. Sunil Sheth |
|
Designation : |
Director |
|
Address : |
601, Leela |
|
Date of Birth/Age : |
27.02.1952 |
|
Date of Appointment : |
22.04.2002 |
|
|
|
|
Name : |
Anjan Mukherjee |
|
Designation : |
Nominee of LIC of |
|
Address : |
LIC of |
|
Date of Birth/Age : |
01.12.1948 |
|
Date of Appointment : |
08.01.2007 |
|
|
|
|
Name : |
Mr. Mandanlal Lankapati |
|
Designation : |
Director |
|
Address : |
97, |
|
Date of Birth/Age : |
29.04.1931 |
|
Qualification: |
Matriculation |
|
Date of Appointment : |
16.09.2002 |
KEY EXECUTIVES
|
Name : |
Mr. Kamlesh B. Vyas |
|
Designation : |
Company Secretary |
|
Address : |
201, Poonam Palace, Opposite Umra Police Station, Athwalines, Surat – 395001, Gujarat, India |
|
Date of Birth/Age : |
27.05.1960 |
|
Date of Appointment : |
21.11.1996 |
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 |
|
|
|
|
|
|
|
Individuals / Hindu Undivided Family |
10013105 |
26.15 |
|
|
11897666 |
31.07 |
|
|
21910771 |
57.22 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
21910771 |
57.22 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
13800 |
0.04 |
|
|
1100 |
0.00 |
|
|
1360 |
0.00 |
|
|
15155 |
0.04 |
|
|
15155 |
0.04 |
|
|
31415 |
0.08 |
|
|
|
|
|
|
2449149 |
6.40 |
|
|
|
|
|
|
5808044 |
15.17 |
|
|
4072431 |
10.64 |
|
|
4018750 |
10.50 |
|
|
4007824 |
10.47 |
|
|
10306 |
0.03 |
|
|
620 |
0.00 |
|
|
16348374 |
42.70 |
|
Total Public
shareholding (B) |
16379789 |
42.78 |
|
Total (A)+(B) |
38290560 |
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) |
38290560 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Polyester Yarns. |
PRODUCTION STATUS (As on: 31.03.2011)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Polyester Chips / Melt |
MT (Per Annum) |
# 506000 |
434,350 |
|
Polyester Filament Yarn |
MT (Per Annum) |
162450 |
140,547 |
|
Looms |
Numbers |
1220 |
NA |
|
Fabrics ## |
Mtrs. in Lacs |
NA |
411.94 |
# Additional capacity of 90000 TPA commenced production during April-June, 2010
Note: The installed capacity is as certified by a Director and being a technical matter is accepted by the Auditors without verification.
* Including 90068 MT (Previous Year 77659 MT) of Polymer melt used captively for Direct Spinning of Yarn.
## Including Fabrics procured from other manufacturers on job work 8.30 lac. mtrs. (Previous Year 14.18 lac. mtrs)
Licensed Capacity *
*Delicensed Vide Notification No. 477(E) dt.27th July, 1991
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· Bank of Baroda · Allahabad Bank · State Bank of India · Bank of India · State Bank of Patiala · Corporation Bank · Union Bank of India · IDBI Bank Limited · Indian Overseas Bank · Export Import Bank of India · Life Insurance Corporation of India · State Bank of Travancore · Indian Bank · Landesbank Baden-Wurttemberg |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Statutory Auditors
: |
|
|
Name : |
Natvarlal Vepari and Company Chartered Accountants |
|
Address : |
Surat, Gujarat, India |
|
|
|
|
Associate Company : |
Surat Textile Mills Limited |
|
|
|
|
Relatives of Key management personnel and their enterprises where
transactions have taken place : |
· Armorax Business Centre Private Limited · Como Textile Private Limited · Sorrento Textile Private Limited · Amalfi Textile Private Limited · Tissue Textile (India) Private Limited · Vareli Fabrics Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.10/- each |
Rs.600.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
38290560 |
Equity Shares |
Rs.10/- each |
Rs.382.906
Millions |
|
|
|
|
|
(A) Details of Shareholders holding more than 5% of the aggregate Shares
in the Company
|
|
As at 31st March, 2012 |
|
|
|
No. of Shares |
% of holding |
|
Introscope Properties Private Limited |
7231996 |
18.89 |
|
Shri Praful A. Shah (Indl.) |
2789190 |
7.28 |
|
Tissue Textiles (India) Private Limited |
2700800 |
7.05 |
|
Prabhat Silk Mills Limited |
2492816 |
6.51 |
(B) The rights attached to equity shares of the Company:
The Company has only one class of shares
referred to as equity shares having a par value of Rs.10 each. The holder of
equity shares are entitled to one vote per share. The dividend as and when
declared is subject to the approval of the shareholders at the Annual General
Meeting.
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 |
382.906 |
382.906 |
382.906 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4529.754 |
5318.549 |
4519.997 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
4912.660 |
5701.455 |
4902.903 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
12445.305 |
10869.706 |
9485.736 |
|
|
2] Unsecured Loans |
177.805 |
564.143 |
793.456 |
|
|
TOTAL BORROWING |
12623.110 |
11433.849 |
10279.192 |
|
|
DEFERRED TAX LIABILITIES |
874.790 |
1266.520 |
1175.877 |
|
|
|
|
|
|
|
|
TOTAL |
18410.560 |
18401.824 |
16357.972 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
13218.417 |
9933.795 |
9475.686 |
|
|
Capital work-in-progress |
732.945 |
2752.133 |
1950.478 |
|
|
|
|
|
|
|
|
INVESTMENT |
135.403 |
460.857 |
766.096 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4887.433
|
6410.926 |
3653.620
|
|
|
Sundry Debtors |
1428.158
|
1595.432 |
1268.688
|
|
|
Cash & Bank Balances |
361.671
|
211.209 |
348.063
|
|
|
Other Current Assets |
255.920
|
130.006 |
0.000
|
|
|
Loans & Advances |
2049.705
|
2254.431 |
2202.867
|
|
Total
Current Assets |
8982.887
|
10602.004 |
7473.238 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
3364.976
|
3181.938 |
984.443
|
|
|
Other Current Liabilities |
1080.582
|
1841.855 |
1763.502
|
|
|
Provisions |
213.534
|
323.172 |
560.256
|
|
Total
Current Liabilities |
4659.092
|
5346.965 |
3308.201 |
|
|
Net Current Assets |
4323.795
|
5255.039 |
4165.037
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.675 |
|
|
|
|
|
|
|
|
TOTAL |
18410.560 |
18401.824 |
16357.972 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
35064.945 |
34004.799 |
25148.941 |
|
|
|
Other Income |
212.286 |
69.093 |
64.142 |
|
|
|
TOTAL (A) |
35277.231 |
34073.892 |
25213.083 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
27264.598 |
26400.853 |
19280.492 |
|
|
|
Purchases of Stock-in-Trade |
245.907 |
137.851 |
0.000 |
|
|
|
Administrative Expenses |
0.000 |
0.000 |
140.882 |
|
|
|
Advertising Expenses |
0.000 |
0.000 |
4002.497 |
|
|
|
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade |
403.493 |
(883.233) |
(599.013) |
|
|
|
Employee Benefits Expense |
844.176 |
729.740 |
0.000 |
|
|
|
Other Expenses |
5298.590 |
4813.934 |
0.000 |
|
|
|
TOTAL (B) |
34056.764 |
31199.145 |
22824.858 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1220.467 |
2874.747 |
2388.225 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1539.543 |
900.730 |
731.698 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(3190.076) |
1974.017 |
1656.527 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
861.449 |
765.163 |
725.639 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(1180.525) |
1208.854 |
930.888 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(391.730) |
330.198 |
298.841 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(788.795) |
878.656 |
632.047 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2535.500 |
1804.400 |
1300.234 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
67.500 |
47.500 |
|
|
|
Proposed Dividend |
0.000 |
68.900 |
68.923 |
|
|
|
Tax on Dividend |
0.000 |
11.200 |
11.448 |
|
|
BALANCE CARRIED
TO THE B/S |
1746.700 |
2535.500 |
1804.410 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
3851.604 |
3152.354 |
1586.191 |
|
|
TOTAL EARNINGS |
3851.604 |
3152.354 |
1586.191 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
5985.585 |
5833.936 |
3388.562 |
|
|
|
Stores, Spares Parts,
Components and Chemical |
501.987 |
418.306 |
120.303 |
|
|
|
Capital Goods |
239.897 |
601.164 |
633.990 |
|
|
TOTAL IMPORTS |
6727.469 |
6853.406 |
4142.855 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(20.60) |
22.95 |
16.51 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
10617.300 |
8243.200 |
9385.500 |
|
Total Expenditure |
10428.300 |
8005.200 |
9161.600 |
|
PBIDT (Excl OI) |
189.000 |
238.000 |
223.900 |
|
Other Income |
7.200 |
28.700 |
6.700 |
|
Operating Profit |
196.200 |
266.700 |
230.700 |
|
Interest |
425.300 |
339.700 |
367.200 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
(229.100) |
(73.000) |
(136.600) |
|
Depreciation |
236.000 |
234.100 |
234.400 |
|
Profit Before Tax |
(465.100) |
(307.100) |
(371.000) |
|
Tax |
(154.500) |
(89.300) |
(134.700) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
(310.600) |
(217.800) |
(236.300) |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
(310.600) |
(217.800) |
(236.300) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(2.24) |
2.58 |
2.51
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(3.37) |
3.55 |
3.70
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.32) |
5.89 |
5.49
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.24) |
0.21 |
0.20
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
2.57 |
2.01 |
2.10
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.93 |
1.98 |
2.26
|
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 |
Yes |
|
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 |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs. In Millions)
|
|
As on 31.03.2012 |
As on 31.03.2011 |
|
Term Loans from foreign banks |
115.040 |
122.584 |
|
Buyers Credit |
62.363 |
161.157 |
|
Commercial Paper |
0.000 |
250.000 |
|
Inter Corporate Deposits |
0.402 |
30.402 |
|
|
|
|
|
Total |
177.805 |
564.143 |
|
Maturity Profile |
|||||
|
|
As
on 31/03/12 Rate of Interest ranges between |
1-2
years |
2-3
years |
3-4
years |
Beyond
4 years |
|
Unsecured
Term Loans |
|
|
|
|
|
|
Term Loans- from foreign banks |
3.70% - 5.70% |
15.339 |
15.339 |
15.339 |
69.023 |
|
|
|
15.339 |
15.339 |
15.339 |
69.023 |
Buyers’ Credit is secured by Letter of Comfort (LOC) / Undertaking (LOU)
which is a part of Working Capital facilities issued by the banks. Rate of
Interest on Buyers’ Credit facility is ranging between 145-330 bps above Libor.
DIRECTORS’ REPORT AND
MANAGEMENT DISCUSSION AND ANALYSIS
REVIEW OF OPERATIONS:
The year 2011-12 marked a deterioration in the fundamentals of both the global and the Indian economies. The global and domestic textile industries were not spared either. The year under review was a challenging one for your Company as well. It marked the first loss for the Company since its inception.
During the year, the Company achieved a gross turnover of Rs. 37635.500 Millions as compared to Rs. 36670.500 Millions in the previous year, an increase of 2.6%. The total sale of yarn was 156246 M.T. an increase of 9.2% over the previous year. In value terms, sales of yarn have gone up by 23.5% to Rs. 17498.400 Millions. Sales of chips were 211093 M.T. during the year, a reduction of 28%. In value terms, chips sales were at Rs. 17709.600 Millions, a reduction of 12.2% compared with the previous year. They maintained their sale of fabrics at Rs. 1893.000 Millions as compared to Rs. 1885.200 Millions for the previous year.
The unprecedented crash in raw material prices in the first quarter of the year resulted in significant inventory losses. It also led to panic in the downstream market and thus severe demand contraction. The second quarter saw a clawback but the third and fourth quarters were hamstrung by very weak consumer demand for polyester filament yarn-based fabrics coupled with rising raw material prices that could not be adequately passed on. Energy cost, which is the biggest operating cost for the company, increased dramatically. Gas, which is the major energy cost component for the company, saw a cost increase of 47%, supported by a crash in the rupee and a large increase in the dollar price of gas.
Average interest rates for the company increased by about 230 basis points last year. This resulted in substantially increased financial costs. The lowered return on capital coupled with the high interest rate in the last financial year led to a financial loss for the Company.
Despite the contraction in domestic demand for yarn and fabric, the Company was able to increase production and sales of yarn and maintain sales of fabric. Chips were worse affected as the demand slowdown affected the small chip based spinners relatively more than direct spinners, reducing their demand for textile-grade chips. The reduced demand and margins in the chips division led to curtailed production and sales of chips.
Operations were further impacted during the year due to a temporary shutdown of their continuous polymerization (CP) plant on account of technical modifications, as well as a shortage of PTA.
Despite the slowdown, the company maintained its position as the largest producer of polyester textile and film-grade chips in the world.
The Company is proud to be known to have the largest product range and to be the most differentiated among any polyester filament yarn producer in India, if not the world.
They are the only Indian company to be present in every segment of the polyester filament yarn business: POY, FDY, draw-twisting, draw-texturising, air-texturising, draw-warping, warping, sizing, twisting and other yarn-preparatory segments.
The Company has always been a leader in yarn innovation and this position has been consolidated in the year . A host of new products have been introduced through close cooperation between their RandD, production and marketing departments. Despite the draw-texturised yarn sector witnessing significant de-growth last year, their texturising division held its own as they have emerged a leader in specialized texturised yarns for different applications such as automotive and lining. They are today the largest producer of lycra yarns on DTY machines in the country.
The Company continues to be the leader in draw-warped and draw-twisted yarns in the world. They are India’s largest sized-yarn producer and country’s one of the largest producers of fully drawn yarn.
Their weaving and finishing (dyed and printed fabric) divisions continue to be at the forefront of design innovation in India. The sheer varieties of designs generated are unparalleled in the industry. In their finished (dyed and/or printed) fabric division they continued to emphasise naturals via the introduction of new cottons, 100% viscose filament, bemberg as well as blended varieties like poly-viscose and poly-cotton fabrics. Various new sized yarn-based saree varieties have been introduced. They have also introduced a host of new embroidery and other value-added varieties especially for party-wear and wedding-wear.
In order to reach working women in towns and villages, they have introduced saree ranges and dress materials / suit combinations at competitive price-levels.
During the year, a fire occurred at the ‘Texturising Division’ of their Plant at Village Jolwa, Taluka Palsana, District Surat on August 4, 2011, damaging few of the machineries and inventory in the Division. The Company took immediate steps and restored the production on the remaining machines of the Texturising Division. There was no injury to any person or casualties due to such accident. The plant and machineries, building and the material in stock were adequately covered under insurance.
EXPANSION PROGRAM:
The Company successfully enhanced its POY / FDY manufacturing capacity by about 225 TPD in a phased manner during the second half of the year. In the coming months the company hopes to make a range of new products on these spinning lines that will substitute the import of specialty yarns used by the domestic weaving industry.
To further strengthen and maintain its leadership in downstream yarn preparatory activities and to achieve better yarn margins, the Company enhanced its yarn processing capacity during the year. This will increase captive consumption of their own POY production to provide value added yarns in the market.
They commissioned an 18 MW coal-based power plant which commenced power generation in August 2011 at the Company’s plant at Jolwa.
Further, a 21 MW coal-based power plant project has been initiated in 2011, which is likely to come on stream by the third quarter of the current year. This initiative is expected to substantially reduce their power generation cost by restricting the use of expensive gas-based power plants.
OVERVIEW OF ECONOMY:
India’s economic growth rate in 2011-12 moderated to 6.5 per cent from 8.4 per cent in 2010-11. Alarmingly, Gross Domestic Product (GDP) growth has been steadily declining over the last few quarters and slipped to 5.3 per cent in the fourth quarter of 2011-12 the lowest in nearly 9 years due to poor performance of the manufacturing and farm sectors. By comparison the GDP growth in January-March quarter of 2010-11 was 9.2 per cent indicating the magnitude of the economic slowdown. Indicators suggest the year 2012-13 will see a further slowdown in economic growth to around 6 per cent. While inflation has moderated somewhat, it still remains uncomfortably high and according to the RBI risks to inflation are still on the upside. Government borrowings are also uncontrolled, leading to a dangerously high fiscal deficit. Soaring inflation concomitant with a high deficit suggests that the high interest rates, which have subdued the economy, will continue to remain elevated.
The sovereign-debt crisis in Europe along with the slowdown in the major world economies increases the likelihood of weak export potential from India and poor foreign investments into the country despite the weak rupee. Weak private and public investments, slowing consumer demand and restricted government scope to stimulate the economy through either monetary or fiscal policy suggests harder times ahead for the economy. Despite the falling crude and coal prices internationally, in rupee terms prices of these key commodities have risen, thus worsening inflation and endangering the current account position.
Yet the gloom diminishes when one puts the past in perspective and realizes how far India has come over the last two decades measured by almost every economic and social indicator. Growth has slowed but growth there will be and it will be quick by world standards though probably not their own. The aggregate GDP growth figures hide the ‘miracle’ performance of “Little Indias” including relatively poor states like Bihar, UP and Chattisgarh that have been mostly unaffected by the slowdown as well as more developed ones like Gujarat that continue to grow at double-digit levels.
India’s extraordinary demographic dividend over next few decades will allow for an enormous increase in working age population that will benefit labour-intensive sectors like textiles. Around 250 million people are expected to enter the workforce over the next 15 years. Any slowdown would increase labour availability further still. In China, their largest textile and polyester competitor, the working-age population is expected to start declining in some years, a fact that is expected to decelerate the growth of labor-intensive manufacturing like textiles. The relatively strong Yuan puts further pressure on China’s manufactured exports. India should witness a revival in labour-intensive sectors over the next decade.
INDUSTRY SCENARIO:
In the year 2010-11spectacular global and Indian economic growth along with record-high cotton prices lifted production and profitability of polyester manufacturers. Expensive cotton was substituted with polyester. Record profitability globally meant that 2010-11 saw the initiation of the largest polyester filament yarn capacity expansions witnessed both globally (especially China) and in India.
For the PFY industry the year 2011-12 started with optimism which was soon belied as the industry witnessed an unprecedented crash in raw material prices in April-May 2011 which shadowed the rapid fall in cotton prices. The crash resulted in inventory losses in the chain but, worryingly, did not increase consumer demand despite a now-cheaper PFY-based fabric.
High food inflation weakened demand for PFY in the rural areas which have been the main driver of PFY growth in recent years. Also slower GDP growth meant lower increase in disposable income further affecting demand for clothing. Cheaper cotton also resulted in pressure on pricing and demand of polyester. The effect of all these was a contraction in demand of PFY by domestic weavers. The silver lining was that India could substantially increase polyester filament yarn exports owing to the high quality standards and cost-competitiveness of its PFY producers. India also showed strong growth in exports of PFY-based fabrics and made-ups in the year.
Overall, according to the Textile Commissioner’s office PFY production fell by 5.8% in 2011-12 compared with the previous year. The reduction in polyester yarn demand coupled with the increase in supply resulted in contraction in operating margins for the industry and the Company. It may be noted that cotton yarn production fell by 11.8% and PSF fell by 7.49% last year showing that there has been a generalized fall in textile production in India. In the first 2 months of this financial year growth resumed as PFY production grew by 6.6% (cotton yarn production grew by only 1.53% and PSF production fell by 1.04%). Yet the expected increase in PFY capacities will continue to put pressure on margins.
In the year, domestic demand for texturised yarn decreased substantially. Texturised yarn is the larger of two categories of PFY. Fortunately, the other category – flat yarn (mainly fully drawn yarn) -grew rapidly to substantially (though not fully) offset the contraction in texturised yarn demand. The shift from texturised yarn-based fabric to more flat yarn-based fabric has been largely due to a shift in fashion. Flat yarn is preferred in the growing embroidery segment and offers better drape properties in twisted-yarn based fabric. Since the Company is a leader in flat yarn production and also produces highly differentiated and value-added flat yarns, the recent shift keeps us well-positioned in the year ahead. To offset the domestic slowdown leading Indian producers of yarn increased export sales as did the Company.
In the recent budget 2012-13, considering the need for fiscal correction, the standard rate of Central Excise Duty has been raised to 12% from the existing level of 10%. This increases the tax differential with cotton products which effectively enjoy an exemption from excise duty.
Further the Inter-Ministerial Steering Committee (IMSC) under R-TUFS, in May’12, decided to continue R-TUFS in 2012-13 to the extent of the unutilized amount of the subsidy cap of Rs. 19720.000 Millions.
In addition to international developments, India’s textile industry has also been affected by Government decisions such as reduction of drawback rates and withdrawal of interest subvention on export credit as well as the inordinate delay in disbursement of TUFS claims.
OPPORTUNITIES AND
OUTLOOK:
The PFY market is the largest synthetic yarn segment in India and accounts for over 50% of the total demand for synthetic yarn. Surat and its outskirts provide the largest market for PFY, being at the heart of the polyester filament weaving and processing industry. The Company’s manufacturing units have a locational advantage being situated in the Surat area. Its location gives it proximity to both raw material suppliers as well as end users.
The Surat area is also the most innovative textile center which gives the Company a natural outlet for its specialty yarns and fabrics.
The economic slowdown may affect PFY growth as well. Yet 2012-13 is widely expected to see a revival in PFY demand. In the first 2 months of 2012-13 PFY-based fabric growth has been strong at around 22% y-o-y. Moreover, the demand for differentiated products continues to increase as does their ability to cater to the demand for specialty products. Moreover the flat yarn segment which is a core-competency for the Company is growing rapidly despite the slowdown. While commodity textile-grade chips sales are likely to be under pressure in the coming year, the Company intends to sell primarily specialty chips like various bright-chip variants, full dull, cationic and silica-based chips whose demand is expected to increase.
The Company’s wide product range, highly differentiated product-mix, high quality standards, strong service-ethics and reputation for fair practices give it a special position among customers of chips, yarn and fabric. They hope to leverage their position to sell during the slowdown and to help us introduce the new products they have planned to bring to the market.
The fundamentals of PFY based fabrics – wrinkle-resistant, highly durable, most versatile, affordable, light and fashionable – remain sound. For Indian women, such fabrics will always be preferred not just by the cost-sensitive buyer but also by the fashion-conscious rich. PFY based fabrics have a dominant position in sarees and are very popular in the growing salwar-kameez/kurti segment. PFY is also the most widely used yarn in fabric for party and wedding wear among both rich and poor consumers. The application of PFY is increasing in denim-wear, sportswear, home-textiles and automotive textiles. Globally, demand growth of polyester is much faster than that of cotton. This is true for both developing and developed countries. It is widely expected that PFY growth in India will be much faster than global growth.
With the large PFY capacity expansions likely to come on stream this year and the next, operating margins in the industry over the next couple of years will remain under pressure. However, as far as the Company is concerned, it is expected that with the introduction of important new products produced on their new and existing spinning lines and with the second thermal power plant coming on stream they will improve their performance in time to come.
They have strong tie-ups with raw material (PTA and MEG) suppliers and that offers advantages at a time when raw materials are projected to be in short supply.
CONTINGENT LIABILITIES
(i) Disputed liabilities for Excise Duty not
acknowledged as debts Rs. 1181.833 Millions (Previous Year Rs. 1158.790
Millions).
(ii) Disputed liabilities for Gujarat Sales Tax
not acknowledged as debts Rs. 7.051 Millions (Previous Year Rs. 7.051
Millions).
(iii) Customs duty on Capital Goods and Raw
Materials imported under Advance License /EPCG Scheme, against which export
obligation is to be fulfilled is Rs. 308.307 Millions (Previous year Rs.
244.325 Millions).
(iv) Counter-guarantees to Banks against
guarantees issued to third parties Rs. 6.175 Millions (Previous year Rs. 6.175
Millions)
(v) Foreign bills Discounted with Banks Rs.
1025.056 (Previous Year Rs. Nil)
FIXED ASSETS
Tangible Assets
· Freehold Land
· Building
· Plant and Machinery
· Furniture, Fixtures and Equipments
· Office Equipments
· Vehicles
Intangible Assets
·
Software
STATEMENT OF UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2012
(Rs. In Millions)
|
Particulars |
Quarter ended |
Nine months ended |
||
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
1 |
Income from
operations |
|
|
|
|
|
Gross Sales/Income from operations |
10270.035 |
8965.217 |
30805.253 |
|
|
Less: Excise Duty on Sales |
884.510 |
722.039 |
2559.294 |
|
|
Total Income from operations (Net) |
9385.525 |
8243.178 |
28245.959 |
|
2 |
Expenses: |
|
|
|
|
|
(a) Cost of materials consumed |
7303.028 |
6349.341 |
21904.161 |
|
|
(b) Purchases of stock(in(trade |
37.035 |
56.034 |
136.602 |
|
|
(c) Changes in inventories of finished goods, work(in(progress and stock(in(trade |
266.876 |
(126.003) |
680.721 |
|
|
(d) Employee benefits expense |
217.604 |
251.535 |
657.258 |
|
|
(e) Depreciation and amortisation expense |
234.437 |
234.119 |
704.531 |
|
|
(f) Other expenses |
1337.073 |
1474.268 |
4216.299 |
|
|
Total Expenses |
9396.053 |
8239.294 |
28299.572 |
|
3 |
Profit/(Loss) from operations
before other income and financial costs (1(2) |
(10.528) |
3.884 |
(53.613) |
|
4 |
Other Income |
6.744 |
28.673 |
42.613 |
|
5 |
Profit/(Loss) from
ordinary activities before finance costs (3±4) |
(3.784) |
32.557 |
(11.000) |
|
6 |
Finance Costs |
367.226 |
339.673 |
1132.213 |
|
7 |
Profit/(Loss) from
ordinary activities before tax (5±6) |
(371.010) |
(307.116) |
(1143.213) |
|
8 |
Tax expense |
|
|
|
|
|
( Current Tax |
0.000 |
0.000 |
0.000 |
|
|
( Deferred Tax |
(134.713) |
(89.278) |
(378.513) |
|
9 |
Net Profit/(Loss)
after tax (7±8) |
(236.297) |
(217.838) |
(764.700) |
|
10 |
Paid(up Equity Share Capital (Rs.10/( per share) |
382.906 |
382.906 |
382.906 |
|
11 |
Reserves excluding revaluation reserves |
-- |
-- |
-- |
|
12 |
Earnings per equity
share of Rs.10 each (not annualised) |
|
|
|
|
|
Basic and Diluted (in Rs.) |
(6.17) |
(5.69) |
(19.97) |
|
A |
Particulars of
Shareholding |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
( Number of Shares |
16379789 |
16379789 |
16379789 |
|
|
( Percentage of shareholding |
42.78 |
42.78 |
42.78 |
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
( Number of Shares |
0 |
0 |
0 |
|
|
( Percentage of shares (as a % of the total |
0.00 |
0.00 |
0.00 |
|
|
shareholding of promoter and promoter group) |
|
|
|
|
|
( Percentage of shares (as a % of the total |
0.00 |
0.00 |
0.00 |
|
|
share capital of the company) |
|
|
|
|
|
b) Non(Encumbered |
|
|
|
|
|
( Number of Shares |
21910771 |
21910771 |
21910771 |
|
|
( Percentage of shares (as a % of the total |
100.00 |
100.00 |
100.00 |
|
|
shareholding of promoter and promoter group) |
|
|
|
|
|
( Percentage of shares (as a % of the total |
57.22 |
57.22 |
57.22 |
|
|
share capital of the company) |
|
|
|
|
B |
Investor Complaints |
Quarter ended |
|
|
|
|
|
31.12.2012 |
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
|
Received during the quarter |
46 |
|
|
|
|
Disposed of during the quarter |
46 |
|
|
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
Notes:
1. The above Results for the quarter and nine months period ended 31st December, 2012 have been reviewed and recommended by the Audit Committee and approved by the Board of Directors at the respective meetings held on 12th February, 2013.
2. The statutory auditors of the Company have conducted 'Limited Review' of the Financial Results as required under Clause 41 of the Listing Agreement with the Stock Exchanges.
3. The Company does not have any Exceptional or Extraordinary item to report for the above periods.
4. Provision for deferred taxation is made in accordance with the Accounting Standards 22 issued by the Institute of Chartered Accountants of India.
5. During the quarter, the Company has exercised the option under paragraph 46A of Accounting Standard 11 relating to "The effects of changes in Foreign Exchange Rates" as notified by the Ministry of Corporate Affairs on 29th December, 2011. Consequently, the Foreign Exchange Loss incurred on Long Term Foreign Currency Monetary Items amounting to Rs.10.078 Millions for the quarter ended 31st December, 2012 has been capitalised and added to the cost of depreciable respective fixed assets. Total amount capitalised upto 31st December, 2012 is Rs.107.620 Millions and out of which Rs.101.980 Millions remains unamortized as at 31st December, 2012.
6. As the Company's business activity falls within a single primary business segment viz. 'Textiles', the disclosure requirement of Accounting Standards (AS) 17 on "Segment Reporting" is not applicable.
7. The Current period figures in this statement have been reported in the format recommended as per the SEBI Circular dated 16th April, 2012. The comparative figures have also been accordingly restated to conform to the current period presentation.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money(laundering, anti(corruption or bribery or international economic or
anti(terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti(terrorism
laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti(Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti(Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti(corruption laws or international
anti(money laundering laws or standard.
8] Affiliation with
Government :
No record exists
to suggest that any director or indirect owners, controlling shareholders,
director, officer or employee of the company is a government official or a
family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.40 |
|
|
1 |
Rs.81.57 |
|
Euro |
1 |
Rs.71.24 |
INFORMATION DETAILS
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
36 |
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.