MIRA
INFORM REPORT
|
Report Date : |
13.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
BANNARI AMMAN SPINNING MILLS LIMITED |
|
|
|
|
Registered
Office : |
252 Mettupalayam Road, Coimbatore – 641043, Tamilnadu |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
10.07.1989 |
|
|
|
|
Com. Reg. No.: |
18-002476 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.157.543 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TZ1989PLC002476 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBB03009G/ CMBB03055D |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacture of Cotton Yarn,
Woven and Coated Fabrics and Wind Power Generation |
|
|
|
|
No. of Employees
: |
3000 (Approximately) |
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 7700000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a satisfactory track record. The
company has incurred loss in the current year. However, financial position of the company is good. 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 |
SORT TERM BANK FACILITIES : A2 |
|
Rating Explanation |
Strong degree of safety and low credit risk. |
|
Date |
24.08.2012 |
|
Rating Agency Name |
CARE |
|
Rating |
LONG TERM BANK FACILITIES : BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk |
|
Date |
24.08.2012 |
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 Mettupalayam Road, Coimbatore – 641043, Tamilnadu, India |
|
Tel. No.: |
91-422-2435555 / 2434445 |
|
Fax No.: |
91-422-2434446 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Spinning Division 1 NaduKandanur
Pirivu, Morepatty Post adamadurai, Dindigul 624 802, Tamilnadu, India |
|
|
|
|
Factory 2 : |
Spinning
Division 2 Velvarkottai,
Dindigul Trichy National Highway 45, Vedasandur Taluk, Dindigul 624 803,
Tamilnadu, India |
|
|
|
|
Factory 3 : |
Weaving Division Karanampet -
Paruvai Road, Paruvai Post, Coimbatore - 641 658, Tamilnadu, India |
|
|
|
|
Factory 4 : |
Technical / Flocking Division Kovai – Sathy
Main Road, Kunnathur Village, Ganesapuram Post, S S Kulam (Via) Coimbatore –
641107, Tamilnadu, India |
|
|
|
|
Factory 5 : |
Windmill Division 1 Irukandurai and Dhanakarkulam
Villages, Radhapuram Taluk, Tirunelveli District, Tamilnadu, India |
|
|
|
|
Factory 6 : |
Windmill Division 2 |
|
|
Chinnapudur
Village, Dharapuram Taluk Erode District, Tamilnadu, India |
|
|
|
|
Factory 7 : |
Garments Division 1 Palladam Hitech
Weaving Park, Sukkampalayam Village, K
N Puram (Po) Palladam- 641 662, Tamilnadu, India |
|
|
|
|
Factory 8 : |
Garments Division 2 Karanampet -
Paruvai Road, Paruvai Post, Coimbatore - 641 658, Tamilnadu, India |
DIRECTORS
(AS ON 31.03.2012)
|
Name : |
Mr. S. V. Arumugam |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. S. K. Sundaraman |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. V. Venkata Reddy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K N V Ramani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. S. Prabhu |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. K R Thillainathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Palaniswami |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Sadhasivam |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A. Senthil |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. N. Krishnaraj |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 31.12.2012)
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
|
|
|
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
168017 |
1.07 |
|
|
8583233 |
54.48 |
|
|
8751250 |
55.55 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
8751250 |
55.55 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
286214 |
1.82 |
|
|
286214 |
1.82 |
|
|
|
|
|
|
1784763 |
11.33 |
|
|
|
|
|
|
1724498 |
10.95 |
|
|
3098406 |
19.67 |
|
|
109138 |
0.69 |
|
|
15294 |
0.10 |
|
|
93842 |
0.60 |
|
|
2 |
0.00 |
|
|
6716805 |
42.63 |
|
Total Public
shareholding (B) |
7003019 |
44.45 |
|
Total (A)+(B) |
15754269 |
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) |
15754269 |
0.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 million BUSINESS DETAILS
|
Line of Business : |
Manufacture of Cotton Yarn,
Woven and Coated Fabrics and Wind Power Generation |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Yarn |
Kgs |
143232 Spindles |
22234774 |
|
Cotton Waste |
Kgs |
-- |
7169957 |
|
Fabrics |
Mtrs |
135 Looms |
8896448 |
|
Wind Energy |
Units |
29950 KWh |
53759006 |
|
Processing |
|
2400000 Mtrs per
years |
-- |
|
Coated Fabric |
Mtrs |
-- |
1883855 |
|
Quick Dr |
Mtrs |
-- |
211754 |
|
Canvass |
Mtrs |
-- |
80369 |
GENERAL INFORMATION
|
No. of Employees : |
3000 (Approximately) |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
· The Karur Vysya Bank Limited · Corporation Bank · ICICI Bank Limited · Oriental Bank of Commerce · Indian Overseas Bank · Bank of Maharashtra · Indian Bank · IDBI Bank · Allahabad Bank · Indian Bank · ICICI Bank Limited |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
Notes:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
P N Raghavendra Rao and Company Chartered Accountant |
|
Address : |
Coimbatore – 641009, Tamilnadu, India |
|
|
|
|
Internal Auditors |
|
|
Name : |
Srivatsan and Gita Chartered Accountant |
|
Address : |
Coimbatore – 641018, Tamilnadu, India |
|
|
|
|
Cost Auditors |
|
|
Name : |
M Nagarajan Chartered Accountant |
|
Address : |
Coimbatore – 641018, Tamilnadu, India |
|
|
|
|
Related Parties : |
· Shiva Distilleries Limited · Shiva Texyarn Limited · Bannari Amman Sugars Limited · Anamallais Automobiles Private Limited · Annamallai Infrastructures Limited · Shiva Cargo Movers Limited · Bannari Amman Apparel Private Limited · Bannari Amman Flour Mill Limited · Sakthi Murugan Transports Limited |
CAPITAL STRUCTURE
(AS ON 31.03.2012)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16000000 |
Equity Shares |
Rs.10/- each |
Rs. 160.000 Millions |
|
50000 |
Cumulative Preference Shares |
Rs.100/- each |
Rs. 5.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 165.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15754269 |
Equity Share |
Rs.10/- each |
Rs. 157.543
Millions |
|
|
|
|
|
NOTE:
Reconciliation of
shares outstanding at the beginning and at the end of the reporting period
|
Name of the Share
holder |
As at 31.03.2012 |
|
|
No. of shares |
Amount in Millions |
|
|
Equity Shares |
|
|
|
At the beginning of the period |
1,57,54,269 |
157.543 |
|
At the end of the period |
1,57,54,269 |
157.543 |
Terms/rights attached
to the equity shares
The company has issued only one class of equity shares having a face value of Rs.10 per equity share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of the Shareholders in ensuing Annual General Meeting.
Details of
shareholders holding more than 5% shares in the company.
|
Name of the Share
holder |
As at 31.03.2012 |
|
|
No. of shares |
% of holding |
|
|
Equity Shares |
|
|
|
Murugan Enterprises Private Limited |
78,03,733 |
49.53 |
|
Vedanayagam Enterprises Private Limited |
-- |
-- |
|
Gagandeep Credit Capital Private Limited |
8,33,919 |
5.29 |
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 |
157.543 |
157.543 |
157.543 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1755.928 |
1919.690 |
1568.392 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1913.471 |
2077.233 |
1725.935 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3519.629 |
4529.492 |
4660.965 |
|
|
2] Unsecured Loans |
13.972 |
21.483 |
56.937 |
|
|
TOTAL BORROWING |
3533.601 |
4550.975 |
4717.902 |
|
|
DEFERRED TAX LIABILITIES |
390.009 |
566.797 |
368.850 |
|
|
|
|
|
|
|
|
TOTAL |
5837.081 |
7195.005 |
6812.687 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4637.892 |
4805.698 |
4606.095 |
|
|
Capital work-in-progress |
15.179 |
5.160 |
119.292 |
|
|
Foreign Currency Monetary Item Translation Reserve A/c |
50.471 |
0.000 |
25.828 |
|
|
Other non current assets |
33.407 |
35.107 |
|
|
|
|
|
|
|
|
|
INVESTMENT |
174.926 |
174.926 |
111.697 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
992.261
|
1984.876
|
943.237 |
|
|
Sundry Debtors |
326.179
|
369.258
|
283.664 |
|
|
Cash & Bank Balances |
124.704
|
53.945
|
141.361 |
|
|
Other Current Assets |
78.948
|
284.950
|
154.837 |
|
|
Loans & Advances |
500.323
|
473.802
|
712.314 |
|
Total
Current Assets |
2022.415
|
3166.831
|
2235.413 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
387.439
|
294.013
|
0.000 |
|
|
Other Current Liabilities |
694.167
|
643.631
|
230.878 |
|
|
Provisions |
15.603
|
55.073
|
54.760 |
|
Total
Current Liabilities |
1097.209
|
992.717
|
285.638 |
|
|
Net Current Assets |
925.206
|
2174.114
|
1949.775 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
5837.081 |
7195.005 |
6812.687 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4597.251 |
5454.887 |
3553.189 |
|
|
|
Other Income |
22.576 |
162.198 |
8.512 |
|
|
|
TOTAL |
4619.827 |
5617.085 |
3561.701 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3179.820 |
3608.447 |
|
|
|
|
Purchases of stock-in-trade |
10.007 |
61.373 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
231.154 |
(409.614) |
|
|
|
|
Employee benefits expenses |
189.711 |
168.143 |
|
|
|
|
Other expenses |
650.105 |
720.605 |
|
|
|
|
TOTAL |
4260.797 |
4148.954 |
2877.578 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
359.030 |
1468.131 |
684.123 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
326.383 |
257.292 |
204.131 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
32.647 |
1210.839 |
479.992 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
372.263 |
372.003 |
256.530 |
|
|
|
|
|
|
|
|
|
Less |
Earlier year
depreciation on A/c of change in method of depreciation |
0.000 |
252.849 |
-- |
|
|
|
|
|
|
|
|
|
Add |
Deferred Tax
Asset on above Withdraw |
0.000 |
85.943 |
-- |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(339.616) |
671.930 |
223.462 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(175.855) |
283.890 |
72.903 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
(163.761) |
388.040 |
150.559 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
102.635 |
51.337 |
78.425 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
300.000 |
150.000 |
|
|
|
Equity Dividend |
0.000 |
31.509 |
23.631 |
|
|
|
Tax on Corporate Dividend |
0.000 |
5.233 |
4.016 |
|
|
BALANCE CARRIED
TO THE B/S |
(61.126) |
102.635 |
51.337 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
1825.083 |
1391.147 |
816.471 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
182.200 |
245.601 |
306.106 |
|
|
|
Capital Goods and Spares |
44.336 |
90.654 |
129.386 |
|
|
TOTAL IMPORTS |
226.536 |
336.255 |
435.492 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(10.39) |
24.63 |
9.56 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1346.91 |
1357.800 |
1462.500 |
|
Total Expenditure |
1049.52 |
1037.700 |
1193.400 |
|
PBIDT (Excl OI) |
297.39 |
320.100 |
269.000 |
|
Other Income |
0.000 |
0.000 |
0.000 |
|
Operating Profit |
297.39 |
320.100 |
269.000 |
|
Interest |
83.33 |
91.600 |
88.600 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
214.06 |
228.500 |
180.400 |
|
Depreciation |
87.89 |
89.200 |
88.800 |
|
Profit Before Tax |
126.16 |
139.300 |
91.600 |
|
Tax |
41.28 |
44.600 |
31.100 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
84.88 |
94.600 |
60.500 |
|
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 |
84.88 |
94.600 |
60.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(3.54)
|
6.91
|
4.23 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(7.39)
|
12.32
|
6.32 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(5.10)
|
8.43
|
3.27 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.32
|
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.42
|
2.67
|
2.90 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.84
|
3.19
|
7.83 |
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 |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
-- |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
No |
REVIEW OF
OPERATIONS
SPINNING DIVISION
The Directors have not recommended any dividend for the financial year
2011-2012 considering the Losses suffered by the Company. During the year, the Spinning
Mills produced 14696.59 tonnes (22477.00 tonnes) inclusive of purchased
quantity 56.68 tonnes (242.23 tonnes) of Yarn and sold 16136.67 tonnes
(21015.25 tonnes) of Yarn. The sales include 8603.05 tonnes (7646.09 tonnes) by
way of Export. The total sales of this division amounted toRs.3448.974 Millions
(Rs.4432.966 Millions) of which export sales amounted to Rs.1838.230 Millions
(Rs.1798.934 Millions) constituting 53.30% (40.58%) of the total revenue.
Volatility in the price of raw material, acute power shortage, glut in
the domestic and international markets, closure of dyeing units in textile
clusters - particularly Tirupur in Tamilnadu due to environmental issues, have
had adverse impact on the performance of the company.
WEAVING DIVISION
The Weaving Division specializes in manufacturing wide-width cotton
fabric. During the year, 66.93 Lakh metres (86.33 Lakh Metres) of Fabric were
produced and 70.21 Lakh Metres (76.13 Lakh metres) of Fabric were sold.
WIND MILL DIVISION
The company has 4 windmills of 1250 KW each totaling 5MW in Radhapuram
Taluk, Tirunelveli District, Tamilnadu, 25 Nos windmills, each of 800 KW
capacity totaling 20 MW capacity in Dharapuram Taluk, Tirupur District and
Palani Taluk, Dindigul District, Tamilnadu and 3 Windmills of 1650 KW each in
Kongalnagaram, Udumalpet Taluk, Tirupur District Tamilnadu. The total installed
capacity of Windmills is 29.95 MW and the whole of the power generated is
captively consumed by the Spinning Units.
The windmills produced 528.55 Lakh units of wind energy as against
563.67 lakh units produced in the last year.
PROCESSING AND
TECHNICAL TEXTILES DIVISION
During the year, 16.03 Lakh Metres (18.84 Lakh Metres) of Coated Fabric
were produced and 16.52 Lakh metres (18.82 Lakh Metres) of Coated Fabric were
sold. During the year 2.53 Lakh metres of Canvas were produced and 2.50 Lakh
metres of Canvas were sold. The end products/applications of these fabrics
include Home Textiles, upholstery, apparel fabric, performance and industrial
fabric.
During the year, 3.35 Lakh Metres (2.12 Lakh Metres) of Breathable water
proof Fabric were produced and 3.46 Lakh metres (1.75 Lakh metres) were sold
under the Brand name Quick dry.
COMPANY'S BUSINESS
The company's business is manufacture of cotton yarn, woven and coated
fabrics, Garments and wind power generation. The company has two modern
spinning units near Dindigul, Tamilnadu with installed capacity of 1,44,240
spindles, weaving unit near Palladam, Tamilnadu with installed capacity of 135
looms, processing and technical textiles near Annur, Tamilnadu with capacity to
produce 24 Lakhs meters coated fabric per annum and 32 windmills with installed
capacity of 29.95 MW of power. The whole of the power produced by windmills is
capitively consumed by the spinning units.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Indian textile industry plays major role in the economy of the country.
The Indian textile industry secures about 17% of total foreign exchange of
India. It is having a significant share in the total Indian industrial
production. This industry employs more than 35 million people directly.
Indian Textile and Clothing Industry is the second largest producer of
cotton and yarn in the world.
India has potential to increase its textile and apparel share in the
world trade from the present level of 4.5% to 8% and reach US$ 80 billion by
2020.
Overall demand outlook for the textile industry for financial year
2012-13 is expected to remain moderate; with volatile commodity prices and
exchange rate being key challenges for the industry. However, with the US and
EU accounting for more than 70 per cent of Indian apparel exports, the concerns
over the economic health of these countries is expected to put pressure on the
Indian apparel exporters in the medium term.
SEGMENT WISE AND
PRODUCT-WISE PERFORMANCE
The entire operations of the company relate only one segment viz.,
therefore segment/product wise details are not applicable.
OUTLOOK
With the optimum utilization of very modern machinery it is expected
that the company would be able to improve efficiency. The company has been
taking steps to increase the export sales as well as up-country sales for
improving the sales turnover.
CONTINGENT LIABILITY
(AS ON 31.03.2011):
1.
The amount of duty concession availed against the
pending obligation (For import of capital goods under concessional customs duty
linked to fulfillment of export obligations) for the year ended 31.03.2012 is
Rs.518.461 Millions. (31.03.2011 – Rs.511.784 Millions).
2.
The Central Excise Department has demanded the
Excise Duty rebate received by the company on account of Export of Yarn. The
amount of demand is Rs.5.909 Millions (31.03.2011 – Rs.5.909 Millions).
AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2012 (Rs. In Millions)
|
Particulars |
30.06.2012(Audited) |
|
|
Quarter Ended |
|
Net Sales/
Income from Operations |
1328.670 |
|
Other Operating
Income |
18.235 |
|
Total income from operation |
1346.905 |
|
Expenditure |
|
|
a) Cost of Materials Consumed |
751.624 |
|
b) Purchase of Stock in trade |
0.634 |
|
c) Change in inventories of finished goods, work in progress & stock in trade |
2.043 |
|
d) Employee benefits expense |
59.153 |
|
e) Depreciation and amortization expense |
87.891 |
|
f) Other expenses |
236.075 |
|
Total |
1137.420 |
|
Profit from operations before Other Income,
Interest and Exceptional Items (1-2) |
209.484 |
|
Other Income |
- |
|
Profit before
Interest and Exceptional Items (3+4) |
209.484 |
|
Interest |
83.328 |
|
Profit after
Interest but before Exceptional Items (5-6) |
126.157 |
|
Exceptional
Items |
- |
|
Profit (+)/ Loss
(-) from Ordinary Activities before tax (7+8) |
126.157 |
|
Tax expense |
41.282 |
|
Net Profit (+)/
Loss (-) from Ordinary Activities after tax (9-10) |
84.875 |
|
Extraordinary
Items (Net of tax expense) |
- |
|
Net Profit (+)/
Loss (-) for the period |
84.875 |
|
Paid-up equity
share capital (Face value of Rs.10/- each) |
157.543 |
|
Reserves
excluding Revaluation Reserves as per balance sheet of previous accounting
year |
|
|
Earnings per share |
|
|
Before
Extraordinary items (not annualized) |
|
|
- Basic (Rs.) |
5.39 |
|
- Diluted (Rs.) |
5.39 |
|
Public
Shareholding |
|
|
- No. of shares |
7,003,019 |
|
- Percentage of
shareholding |
44.45% |
|
Promoters and
promoter group shareholding |
|
|
Pledged/
Encumbered |
|
|
- No. of shares |
Nil |
|
- Percentage of
shares (as a % of the
total shareholding of promoter and promoter group) |
Nil |
|
- Percentage of
shares (as a % of the
total share capital of the company) |
Nil |
|
Non-encumbered |
|
|
- No. of shares |
8,751,250 |
|
- Percentage of
shares (as a % of the
total shareholding of promoter and promoter group) |
55.55% |
|
- Percentage of
shares (as a % of the
total share capital of the company) |
100% |
Notes:
1.
Statutory Auditors of the company
have carried out limited review of the above quarterly results.
2.
The above results were reviewed by
the Audit Committee at its meeting held on 10.08.2012 and approved by the Board
of Directors at their meeting held on 13.08.2012.
3.
The entire business of the company
relate to only one segment. Viz., Textiles.
4. The previous year figures have been regrouped wherever necessary to make it
FIXED ASSETS:
· Land and Site Development
· Building
· Plant and Machinery
· Office Equipments
· Furniture and Fittings
· Vehicles
· Tools and Implements
WEBSITE DETAILS:
MANAGEMENT
Dr. S V Balasubramaniam
Dr. S. V. Balasubramaniam, aged 71 years is the Chairman and Promoter of the 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
Mr. S. V. Alagappan, aged 66 years is the Vice-Chairman and Promoter of the 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, finance outlays and Investments.
Mr. S V Arumugam
Mr. S. V. Arumugam, aged 60 years is the Managing Director and promoter of the 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 was the Deputy Chairman of Southern India Textile Mills Association (SIMA) which has 301 Textile Mills as its Members and was the past Chairman of Confederation of Indian Industry, Coimbatore Chapter. He is a Committee Member of the Indian Cotton Mills Federation (ICMF), Mumbai. He is the Honorary Secretary of Indian Wind Power Association, Chennai.
Mr. S. K. Sundararaman
Mr.
S. K. Sundararaman, aged 37 years is an MBA from the Judge Institute of
Management Studies, Cambridge University, UK. He joined the Board as a Director
on May 24, 2004 and was elevated as Executive Director on June 27, 2005. He is
responsible for the weaving division and new initiatives. He has wide
experience in the field of Information Technology and Technical Education,
especially in the field of Textile Technology.
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 records exist
to suggest that subject is or was the subject of any formal or informal
allegations, prosecutions or other official proceedingfor 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.54.34 |
|
|
1 |
Rs.80.90 |
|
Euro |
1 |
Rs.70.73 |
INFORMATION DETAILS
|
Report Prepared
by : |
BSN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--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.