MIRA INFORM REPORT
|
Report Date : |
16.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
HIMATSINGKA SEIDE
LIMITED HIMATSINGKA LINENS
(DIVISION OF HIMATSINGKA SEIDE LIMITED) |
|
|
|
|
Registered
Office : |
10/24, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
23.01.1985 |
|
|
|
|
Com. Reg. No.: |
08-6647 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.492.286
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L1711ZKA1985PLC006647 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRH01939A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH3507N |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchange. |
|
|
|
|
Line of Business
: |
Manufacturing of Natural
Silks and Silk Blended Fabrics. |
|
|
|
|
No. of Employees
: |
3499 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 20600000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record.
The company has performed well during the current year. Trade relations are
reported as fair. Business is active. Payments are reported to be usually
correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
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 |
CRISIL |
|
Rating |
BBB [Upgraded From BBB - Long Term] |
|
Rating Explanation |
Moderate degree of safety it carry moderate credit risk. |
|
Date |
January 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A3+ [Upgraded From A3 Short Term] |
|
Rating Explanation |
Moderate degree of safety it carry higher credit risk. |
|
Date |
January 2013 |
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/ Corporate Headquarter : |
10/24, Kumarakrupa Road, High Ground, Bangalore – 560001, Karnataka,
India |
|
Tel. No.: |
91-80-22378000/ 42578000 |
|
Mobile No.: |
91-80-22378058/
22378074 |
|
Fax No.: |
|
|
E-Mail : |
|
|
|
|
|
Factory : |
23A, KIADB
Industrial Area, Veerapura Village, Doddaballapur Taluk, Bangalore District,
Karnataka, India |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Dilip J. Thakkar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
A.K. Himatsingka |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Dr. K.R.S. Murthy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Berjis M. Desai |
|
Designation : |
Director |
|
|
|
|
Name : |
A.K. Dasgupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajiv Khaitan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. David Rasquinha (up to 29.01.2011) |
|
Designation : |
Nominee Director of Export Import Bank of |
|
|
|
|
Name : |
Samuel Joseph Jebraj (w.e.f 29.04.2011) |
|
Designation : |
Nominee Director of Export Import Bank of |
|
|
|
|
Name : |
D.K. Himatsingka |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Aditya Himatsingka |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. Shrikant Himatsingka |
|
Designation : |
Executive Director |
|
|
|
|
Audit Committee : |
|
|
|
|
|
Shareholders/ Investors Grievance Committee : |
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|
|
|
|
Investment committee: |
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|
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Share Transfer Committee: |
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|
|
|
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Remuneration Committee : |
|
|
|
|
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Risk Management Committee: |
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|
|
|
|
QIP Committee : |
|
KEY EXECUTIVES
|
Name : |
G. Ravichandan |
|
Designation : |
President (Group Operation) |
|
|
|
|
Name : |
Predeep Mukherji |
|
Designation : |
President (Global Sales and Marketing) |
|
|
|
|
Name : |
Jayshree Poddar |
|
Designation : |
Head of Design |
|
|
|
|
Name : |
K. P. Pradeep |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Ratnakar Nemani |
|
Designation : |
Chief Information Officer |
|
|
|
|
Name : |
Y.R. Wilson Maria Doss |
|
Designation : |
Vice President |
|
|
|
|
Name : |
Bharat Ram |
|
Designation : |
Vice President (Retail) |
|
|
|
|
Name : |
S. Shanmuga Sundram |
|
Designation : |
Vice President (Bed Linen Operation) |
|
|
|
|
Name : |
Amit Jain |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.12.2012
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
34988663 |
35.54 |
|
|
17913109 |
18.19 |
|
|
52901772 |
53.73 |
|
|
|
|
|
|
1237800 |
1.26 |
|
|
1237800 |
1.26 |
|
Total shareholding of Promoter and Promoter Group (A) |
54139572 |
54.99 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
9686177 |
9.84 |
|
|
35120 |
0.04 |
|
|
854886 |
0.87 |
|
|
1553801 |
1.58 |
|
|
12129984 |
12.32 |
|
|
|
|
|
|
5419291 |
5.50 |
|
|
|
|
|
|
15306936 |
15.55 |
|
|
10044525 |
10.20 |
|
|
1416852 |
1.44 |
|
|
1294150 |
1.31 |
|
|
110502 |
0.11 |
|
|
12200 |
0.01 |
|
|
32187604 |
32.69 |
|
Total Public shareholding (B) |
44317588 |
45.01 |
|
Total (A)+(B) |
98457160 |
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) |
98457160 |
0.00 |
%20-%20209930%2016-Mar-2013_files/image009.gif){kind=small}
%20-%20209930%2016-Mar-2013_files/image010.gif){kind=small}
%20-%20209930%2016-Mar-2013_files/image011.gif){kind=small}
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of
Natural Silks and Silk Blended Fabrics. |
||||||||
|
|
|
||||||||
|
Products : |
|
PRODUCTION STATUS [AS ON 31.03.2011]
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Silk |
|
|
|
|
Fabrics |
Meters |
2117906 |
922287 |
|
Yarn |
Kgs.** |
250000 |
92722 |
|
Bed Linen |
|
|
|
|
Fabrics |
|
|
|
|
Weaving |
Meter |
15660000 |
11701480 |
|
Processing |
Meter |
20880000 |
14126119 |
|
Made Ups |
Numbers@ |
3979200 |
3132985 |
|
Captive Power Plant |
Mega Watts^ |
94500 |
65091 |
NOTES:
** includes internal consumption (Kgs)
@ Includes: Production by job workers
^ Commercial production started from 15.01.2010
GENERAL INFORMATION
|
No. of Employees : |
3499 (Approximately) |
|||||||||||||||||||||
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Bankers : |
|
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|||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Wholly Subsidiaries : |
|
|
|
|
|
Others Subsidiaries : |
|
|
|
|
|
Others Related Parties : |
|
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
134000000 |
Equity Shares |
Rs.5/- each |
Rs.670.000 Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
98496160 |
Equity Shares |
Rs.5/- each |
Rs.492.481
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
98457160 |
Equity Shares |
Rs.5/- each |
Rs.492.286
Millions |
NOTES:
i) There has been no
movement in the shares outstanding from the prior year to the current year.
ii) Detail of the
rights, preferences and restrictions attaching to each class of shares:
The Company has
only one class of equity share, having a par value of Rs. 5/-. Each holder of
equity shares is entitled to one vote per share. In the event of liquidation of
the Company, the holders of the equity shares will be entitled to receive any
of the remaining assets of the Company, after distribution of all preferential
amount. However, as on date no such preferential amounts exist. The
distribution will be in proportion to number of equity shares held by the
shareholders.
iii) Number of equity shares held by each shareholder holding more than
5% shares in the Company:
|
PARTICULAR |
AS ON 31.03.2012 |
|
|
|
No. of Shares |
% of Holding |
|
D.K. Himatsingka |
10570984 |
115 % |
|
Bihar Mercantile Union Limited |
5706000 |
65 % |
|
Shrikant Himatsingka |
6680964 |
75 % |
|
Rajshree Himatsingka |
5357260 |
5 % |
iv) Out of total
shares outstanding, 63,723,800 shares of Rs. 5 each have been issued as Bonus
shares by capitalization of reserves
v) There were no
instances of shares issued, on which there were any calls remaining unpaid or
instances of any forfeitures during the years ended March 31, 2012 and 2011.
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 |
492.286 |
492.286 |
492.286 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4679.397 |
4750.866 |
5172.703 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5171.683 |
5243.152 |
5664.989 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
3818.987 |
4228.961 |
4941.802 |
|
|
2] Unsecured Loans |
0.000 |
239.030 |
239.030 |
|
|
TOTAL BORROWING |
3818.987 |
4467.991 |
5180.832 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8990.670 |
9711.143 |
10845.821 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
4401.955 |
4789.550 |
4961.183 |
|
|
Capital work-in-progress |
88.716 |
63.886 |
275.647 |
|
|
|
|
|
|
|
|
INVESTMENT |
3378.426 |
2950.958 |
2770.809 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1566.032
|
1662.227 |
1968.291 |
|
|
Sundry Debtors |
725.776
|
498.114 |
532.599 |
|
|
Cash & Bank Balances |
25.143
|
28.797 |
84.398 |
|
|
Other Current Assets |
198.948
|
218.274 |
0.000 |
|
|
Loans & Advances |
954.016
|
1337.389 |
1658.827 |
|
Total
Current Assets |
3469.915
|
3744.801 |
4244.115 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1214.250
|
1031.423 |
1125.979 |
|
|
Other Current Liabilities |
796.420
|
779.511 |
61.164 |
|
|
Provisions |
337.672
|
27.118 |
218.790 |
|
Total
Current Liabilities |
2348.342
|
1838.052 |
1405.933 |
|
|
Net Current Assets |
1121.573
|
1906.749 |
2838.182 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
8990.670 |
9711.143 |
10845.821 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6504.297 |
5080.161 |
4651.068 |
|
|
|
Other Income |
60.899 |
122.636 |
108.213 |
|
|
|
TOTAL (A) |
6565.196 |
5202.797 |
4759.281 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3521.664 |
3216.544 |
|
|
|
|
Purchase of traded goods |
157.582 |
146.992 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in trade |
195.952 |
21.684 |
3975.365 |
|
|
|
Employee benefit expenses |
630.735 |
556.187 |
|
|
|
|
Other expenses |
1034.404 |
924.576 |
|
|
|
|
Exceptional items |
40.292 |
0.000 |
|
|
|
|
TOTAL (B) |
5580.629 |
4865.983 |
3975.365 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
984.567 |
336.814 |
783.916 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
305.852 |
281.710 |
257.215 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
678.715 |
55.104 |
526.701 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
478.481 |
476.941 |
445.604 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
200.234 |
(421.837) |
81.097 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
0.000 |
0.000 |
0.957 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
200.234 |
(421.837) |
82.054 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
NA |
669.272 |
615.920 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
NA |
0.000 |
0.000 |
|
|
|
Proposed Dividend |
NA |
0.000 |
24.614 |
|
|
|
Tax on Dividend |
NA |
0.000 |
4.088 |
|
|
BALANCE CARRIED
TO THE B/S |
NA |
247.435 |
669.272 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export FOB Basis |
6013.504 |
4470.229 |
4306.388 |
|
|
|
Interest |
40.677 |
36.060 |
52.788 |
|
|
TOTAL EARNINGS |
6054.181 |
4506.289 |
4359.176 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1348.592 |
1577.585 |
1581.836 |
|
|
|
Stores & Spares |
37.243 |
24.097 |
23.699 |
|
|
|
Capital Goods |
0.255 |
6.008 |
76.666 |
|
|
TOTAL IMPORTS |
1386.090 |
1607.690 |
1682.201 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
2.03 |
(4.28) |
0.83 |
|
%20-%20209930%2016-Mar-2013_files/image005.gif){kind=small}
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1626.500 |
1859.400 |
1825.400 |
|
Total Expenditure |
1368.400 |
1636.900 |
1570.400 |
|
PBIDT (Excl OI) |
258.100 |
222.500 |
255.000 |
|
Other Income |
29.400 |
18.200 |
90.800 |
|
Operating Profit |
287.500 |
240.700 |
345.800 |
|
Interest |
91.900 |
94.500 |
95.700 |
|
Exceptional Items |
14.400 |
21.200 |
0.000 |
|
PBDT |
210.000 |
167.400 |
250.100 |
|
Depreciation |
119.500 |
117.100 |
117.500 |
|
Profit Before Tax |
90.500 |
50.300 |
132.600 |
|
Profit After Tax |
90.500 |
50.300 |
132.600 |
|
Net Profit |
90.500 |
50.300 |
132.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
3.05
|
(8.11) |
1.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.07
|
(8.30) |
1.74 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.54
|
(4.94) |
0.88 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
(0.08) |
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.74
|
0.85 |
0.91 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.47
|
2.04 |
3.02 |
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 |
No |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 |
As
on 31.03.2012 [Rs.
in Millions] |
As
on 31.03.2011 [Rs.
in Millions] |
|
Loan from related parties |
0.000 |
239.030 |
|
TOTAL
|
0.000 |
239.030 |
FINANCIAL
HIGHLIGHTS:
They are all aware
of the challenging and volatile economic environment and on-going market
weakness in USA and Europe. Despite that, at group level, they achieved 15.4%
in sales growth. Their net revenue stood at Rs. 14316.200 Millions this year,
compared to Rs. 12406.800 Millions in the previous year. The EBIDTA too showed
marked improvement with an increase to Rs. 1476.200 Millions from Rs. 951.000
Millions in the previous year. Consequently, their consolidated profit stood at
Rs. 339.400 Millions compared to Rs. 157.800 Millions loss last year.
Their performance
at the EBIDTA level would have shown further improvement had it not been for
the unprecedented price rise in the raw materials they consume raw material
prices have since stabilized at a reasonable level and should result in an
improvement in their margins going forward.
MANAGEMENT
DISCUSSION AND ANALYSIS:
Himatsingka Seide
Limited (together with its subsidiaries, “the Group” or “the Company”) is a vertically
integrated home textile group that manufactures, retails, and distributes
bedding, upholstery, drapery and bath products. The Group operates two
manufacturing facilities in India and four distribution businesses across North
America, Europe and Asia. The Group is a major distributor of branded luxury
home textile products in North America and Europe. It also offers private label
home textile products to major retailers and is the third largest distributor
of “Top of Bed” products in the United States. The portfolio of brands includes
Calvin Klein Home (currently the second largest selling bath and bedding brand
sold through departmental stores in the United States), Barbara Barry, Peacock
Alley, Bellora, Esprit, Waverly and ‘ATMOSPHERE’.
INDUSTRY STRUCTURE
AND DEVELOPMENTS:
The Textile
industry is among the largest industries in India. It occupies an important
place in the economy because of its contribution to the industrial output,
employment generation and foreign exchange earnings. The Company operates in
the home textiles segment, an important part of the textile industry. The
global environment for home textile has been different in different geographies
– buoyant in the American markets and under continuing stress in the European
markets. They expect the markets to be relatively stable in the coming year.
There has been a conscious movement towards brand expansion at lower price
points. Private label distributors / retailers and brand distributors have
consciously cultivated the mid-market segment. High input costs, competition,
cost competitiveness, low productivity levels and the rupee volatility are some
of the key challenges faced by the industry. India, being the second largest
producer of cotton, enjoys an edge in low cost cotton sourcing compared to
other countries. The last year saw a significant reduction in prices for cotton
and ensured the much needed stability in cotton prices (consequentially
impacting cotton yarn prices), both in India and globally. As a result
volatility in prices was lower than the previous year and the availability of
product was more consistent. Design and fashion capabilities are the
differentiators that have enabled Indian industry to build relationships with
global retailers and score over competition from China and other countries.
Hence, investing in design and product development expertise has become a key
for success. To address these challenges, the Company continuously invests in
new technology, strives to shorten delivery cycles to meet customer demands,
expands its portfolio of quality brands, introduces innovation in product
offerings, and strengthens design focus, both in India and overseas, as an
integral part of the Himatsingka strategy.
BUSINESS OPERATIONS OVERVIEW AND OUTLOOK:
In the year 2011,
the US economy made significant gains and provided a semblance of stability to
the world economy. The European sovereign debt crisis continued to engage the
collective attention of the world. It now appears that the issues in Europe are
deeper than previously envisaged and needs to be addressed structurally. The
speed of intervention will address the extent of impact on global economies.
The global GDP growth slowed to 3.85% compared to 5.27% in the previous year.
The economic growth was mainly driven by domestic consumption in the emerging
markets particularly China and India. The year 2011-12 was marked by a
significant volatility in foreign exchange rates. The rupee continues to be
under pressure and has touched an all-time low during the year. Even under
these difficult economic conditions, the Company delivered a good performance
with the Group revenue increasing by 15.4% to Rs. 14316.200 Millions and EBITDA
growing by 55.2% to Rs. 1476.200 Millions. The increase in EBITDA was driven
mainly by growth in sales, stable raw-material pricing and continued
optimization of costs across the group. Commodity prices globally appeared to
be stabilizing as against the previous year. Their critical raw-material is
derived from cotton and silk. Both cotton and silk prices which surged to
historic highs in the year 2010-11 declined significantly to a more reasonable
level during the year. Exceptional items in standalone results include a loss
of Rs. 16.000 Millions due to change in fair value and a loss of Rs. 24.300
Millions on monthly settlements of a foreign exchange derivative contract.
Exceptional items in consolidated results include in addition to exceptional
item in standalone results, profit of Rs. 112.800 Millions on sale of surplus
land and buildings with certain moveable fixed assets and certain one-time
costs of Rs. 17.000 Millions. During the year, the Group consolidated its
manufacturing operations. As part of this exercise, it divested surplus assets
of its subsidiary Himatsingka Wovens Private Limited for an amount of Rs.
338.700 Millions.
PROSPECTS:
The data emerging
from USA in last quarter of 2011-12 shows lower unemployment levels, an
increase in home sales and growth in consumer credit. While in Euro zone an
economic crisis appears to be brewing and may have an impact on the global
economy. However, opportunities seem to exist in many emerging economies of the
world. The Group recognizes the changing global scenario and is taking
appropriate steps to enhance value proposition to their existing customers and
at the same time explore opportunities in new geographies.
GROWTH INITIATIVES DURING THE YEAR:
The Group explored
various ways of reaching out to new customers, enhancing focus on its brands
and launching value added products leading to the growth in sales. During the
year, they added Bed Linen produced by us, as a new product offering in all
‘ATMOSPHERE’ stores. The response is encouraging.
SUMMARY OF
SUBSIDIARY RESULTS:
DIVATEX HOME FASHIONS INC., USA (DIVATEX):
Divatex is the third
largest distributor of Bed Linen products in the USA and gives the Group deep
in roads into the private label market. Divatex also has the license to market
important brands such as Esprit and Waverly in the United States. For the year
ended March 31, 2012, Divatex recorded Revenue of USD 172.46 million (Rs.
8276.300 Millions) compared to USD 140.98 million (Rs. 6423.900 Millions) in
the previous year and profit before tax of USD 5.55 million (Rs. 261.700
Millions) compared to USD 6.99 million (Rs. 319.800 Millions) for the previous
year.
DWI HOLDINGS INC., USA (DWI):
DWI possesses
licenses of luxury home textile brands such as Calvin Klein Home, Barbara Barry
and Peacock Alley. This gives us access to the high end and branded segment of
the bedding market in the USA. For the year ended March 31, 2012, DWI recorded
Revenue of USD 69.18 million (Rs. 3313.100 Millions) compared to USD 58.35
million (Rs. 2660.600 Millions) in the previous year and profit before tax of
USD 2.59 million (Rs. 121.800 Millions) compared to USD 2.43 million (Rs.
111.500 Millions) for the previous year.
GIUSEPPE BELLORA SPA, ITALY (BELLORA):
Bellora has a
significant share in the luxury market in Italy and gives us a platform to
expand their business in the other markets of Europe and other geographies. For
the year ended March 31, 2012, Bellora recorded Revenue of Euro 17.22 million
(Rs. 1134.500 Millions) compared to Euro 19.37 million (Rs. 1168.800 Millions)
in the previous year and loss before tax of Euro 0.83 million (Rs. 55.100
Millions) compared to Euro 1.14 million (Rs. 68.700 Millions) for the previous
year. Bellora reported lower sales due to stressed economic conditions in Euro
zone, especially Italy. Better sales mix, royalty income and cost
rationalization helped us to report lower loss compared to the previous year.
HIMATSINGKA WOVENS PRIVATE LIMITED, INDIA (HWPL):
HWPL operates 12
exclusive retail showrooms of ‘ATMOSPHERE’ in 10 cities in India. ‘ATMOSPHERE’
is India’s first luxury Home Textile brand. With an exclusive collection of
over 2500 products, the brand offers the most comprehensive range of luxury
Drapery and Upholstery fabrics for its customers. Its products are tailored to
comply with both residential and institutional applications.
HIMATSINGKA AMERICA INC., USA (HIMA):
HimA is the
holding Company for Divatex and DWI. For the year ended March 31, 2012, HimA
recorded Revenue of USD 0.60 million (Rs. 27.000 Millions) compared to USD 3.61
million (Rs. 164.500 Millions) in the previous year and loss before tax of USD
3.77 million (Rs. 145.300 Millions) compared to USD 3.27 million (Rs. 148.400
Millions) for the previous year. Pursuant to the decision to consolidate sales
operations in North America, HimA transferred its operating activities to DWI. As
a result, financial performance of HimA is not comparable with previous year.
TWILL AND OXFORD LLC, DUBAI (T AND O):
T and O operate
the Group’s exclusive retail showroom of ‘ATMOSPHERE’ in Dubai. For the year
ended March 31, 2012, T and O recorded Revenue of AED 7.65 million (Rs. 99.100
Millions) compared to AED 5.92 million (Rs. 733 Millions) in the previous year
and profit before tax of AED 0.70 million (Rs. 6.400 Millions) compared to AED
0.43 million (Rs. 5.400 Millions) for the previous year.
HIMATSINGKA SINGAPORE PTE LIMITED, SINGAPORE
(HSPL):
HSPL operates the
Group’s exclusive retail showroom of ‘ATMOSPHERE’ in Singapore. For the year
ended March 31, 2012, HSPL recorded Revenue of SGD 0.94 million (Rs. 35.800
Millions) compared to SGD 0.86 million (Rs. 29.400 Millions) in the previous
year and loss before tax of SGD 0.31 million (Rs. 13.000 Millions) compared to
SGD 0.46 million (Rs. 22.100 Millions) for the previous year.
OUTLOOK:
Given the
relatively improved performance of the Group during the year, they expect the
year ahead to be relatively stable. The central theme for the year ahead would
be to sweat the existing assets in the Manufacturing, Distribution and Retail
divisions more effectively, continue to focus on optimization of costs across
the divisions and create additional opportunities for maximizing sales through
enhancing branded presence and new customer acquisition. For the year ended
March 31, 2012, HWPL recorded Revenue of Rs. 438.900 Millions compared to Rs.
425.700 Millions in the previous year and profit before tax of Rs. 55.800
Millions compared to Rs. 21.000 Millions for the previous year. HWPL results
include a profit of Rs. 112.800 Millions on sale of surplus assets and loss on
diminution in value of investment in HSPL of Rs. 88.400 Millions reported as
exceptional items.
FIXED ASSETS
·
Land
·
·
Buildings
·
Plant and Machinery
·
Furniture and Fixture
·
Leasehold Improvements
·
Office Equipment
·
Vehicles
STATEMENT OF STANDALONE
UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2012
Rs. in Millions
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.03.2012 (Unaudited) |
|
|
|
|
|
|
|
1. |
Net Sales/Income from
Operations |
1762.000 |
1746.500 |
5068.300 |
|
|
Other Operating
Income |
63.400 |
112.900 |
242.900 |
|
|
Total Income From Operations (Net) |
1825.400 |
1859.400 |
5311.200 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
950.500 |
997.400 |
2780.600 |
|
|
Purchase
of stock in trade |
18.600 |
54.200 |
133.900 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
140.200 |
7.000 |
125.600 |
|
|
Employee
benefits expenses |
186.700 |
178.900 |
542.000 |
|
|
Depreciation
and amortization expenses |
117.500 |
117.100 |
354.100 |
|
|
Other
expenses |
274.400 |
308.100 |
902.400 |
|
|
Foreign
exchange fluctuation loss/gain (net) |
(51.600) |
91.300 |
21.200 |
|
|
Total Expenses |
1636.300 |
1754.000 |
4859.800 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
189.100 |
105.400 |
451.400 |
|
|
|
|
|
|
|
4. |
Other
Income |
39.400 |
18.200 |
68.700 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
228.500 |
123.600 |
520.100 |
|
|
|
|
|
|
|
6. |
Interest |
95.900 |
94.500 |
282.300 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
132.600 |
29.100 |
237.800 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
21.200 |
35.600 |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
132.600 |
50.300 |
273.400 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
132.600 |
50.300 |
273.400 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
132.600 |
50.300 |
273.400 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.5/- Each) |
492.300 |
492.300 |
492.300 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
1.35 |
0.51 |
2.78 |
|
|
b) Basic
and diluted EPS after extraordinary items |
1.35 |
0.51 |
2.78 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
44317588 |
44317588 |
44317588 |
|
|
-
Percentage of Shareholding |
45.01 |
45.01 |
45.01 |
|
|
|
|
|
|
|
18. |
Promoters and Promoter Group
Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
-
Number of Shares |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Shareholding of promoter and
promoter group) |
Nil |
Nil |
Nil |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
Nil |
Nil |
Nil |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
-
Number of Shares |
54139572 |
54139572 |
54139572 |
|
|
- Percentage
of Shares (as a % of the Total Shareholding of Promoter and Promoter Group) |
100.00 |
100.00 |
100.00 |
|
|
-
Percentage of Shares (as a % of the Total Share Capital of the Company) |
54.99 |
54.99 |
54.99 |
|
Particulars |
3 Months ended on March 31, 2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
21 |
|
Disposed of during the quarter |
21 |
|
Remaining unresolved at the end of the
quarter |
Nil |
NOTES:
- The Company is primarily engaged in the
business of 'Home Textiles', consequently this is the only reportable
segment.
- In accordance with Clause 41 of the Listing Agreement the Statutory
Auditors have carried out a 'Limited Review' of the standalone financial
results for the quarter ended December 31, 2012.
- In accordance with the hedge accounting principles per Accounting
Standards (AS 30) “Financial Instrument: Recognition and measurement”,
from April 01, 2012, the Company designated pre-shipment credit (“PCFC”),
which are taken and repayable in foreign currency from future exports, as
hedging instrument to hedge its foreign currency risk against committed
export sales The exchange gain / loss on such hedging where hedge is
effective is transferred to the Hedge Reserve in the Balance Sheet to be
transferred to the Statement of Profit and Loss on occurrence of the hedge
transaction. Accordingly, as on 31 December, 2012, exchange gain on
effective hedge aggregating Rs. 15.000 millions (net) is carried in the
Hedging Reserve.
- Previous year/quarter/period figures
have been regrouped/recast, wherever necessary.
PRESS RELEASES:
28 JANUARY 2013
CONSOLIDATED
REVENUES FOR NINE MONTHS UP BY 18.4 % TO RS. 12951.100 MILLIONS
CONSOLIDATED EBITDA
FOR NINE MONTHS UP BY 11.3 % TO RS. 1239.900 MILLIONS
CONSOLIDATED PAT FOR NINE MONTHS AT RS. 348.700 MILLIONS UP BY 12.4 %
CONSOLIDATED FINANCIAL PERFORMANCE (NINE MONTHS ENDED 31ST DECEMBER
2012)
• Himatsingka, a
vertically integrated home textile major reported consolidated revenues of Rs.
12951.100 Millions vs Rs. 10939.300 Millions in the corresponding nine months
of the previous year, a growth of 18.4 %.
• Distribution
revenues in North America represented by Calvin Klein Home, Barbara Barry and
other brands in addition to private label lines grew by 5.9 % to USD 199.77
million vs USD 188.65 million in the corresponding nine months of the previous
year.
• Distribution
revenues in Europe represented by the “Bellora” brand showed a reduction of
21.9 % to Euro 9.41 million vs Euro 12.06 million in the corresponding nine
months of the previous year.
• Distribution
revenue in India / Middle East / South East Asia as represented through the Atmosphere
brand grew 13.2 % to Rs. 407.600 Millions vs Rs. 360.200 Millions in the
corresponding nine months of the previous year.
• Manufacturing
revenues represented by the Drapery/Upholstery and Bedding Divisions grew 5.9 %
to Rs. 5311.400 Millions vs Rs. 5013.800 Millions in the corresponding nine
months of the previous year.
• Consolidated
EBITDA for the current nine months year was higher at Rs. 1239.900 Millions vs
Rs. 1114.100 Millions in the corresponding nine months of the previous year, a
growth of 11.3 %
• Consolidated Net
profit for the current nine months year was Rs. 348.700 Millions vs Rs. 310.100
Millions in the corresponding nine months of the previous year, a growth of
12.4%
CONSOLIDATED
REVENUES FOR Q3 FY 13 UP BY 9.7 % TO RS. 4400.100 MILLIONS
CONSOLIDATED
EBITDA FOR Q3 FY 13 UP BY 0.2 % TO RS. 434.900 MILLIONS
CONSOLIDATED PAT FOR Q3 FY 13 AT RS. 130.300 MILLIONS UP BY 16.2 %
CONSOLIDATED FINANCIAL PERFORMANCE (THREE MONTHS ENDED 31ST DECEMBER
2012)
• Consolidated revenues
grew 9.7 % to Rs. 4400.100 Millions vs Rs. 4011.800 Millions in the
corresponding three months of the previous year.
• Distribution
revenues in North America represented by Calvin Klein Home, Barbara Barry and
other brands in addition to private label lines grew 5.7 % to USD 69.23 million
vs USD 65.51 million in the corresponding three months of the previous year.
• Distribution
revenues in Europe represented by the “Bellora” brand showed a reduction of
27.8 % to Euro 3 million vs Euro 4.15 million in the corresponding three months
of the previous year.
• Distribution
revenues in India / Middle East / South East Asia as represented through the Atmosphere
brand grew 12 % to Rs. 150.600 Millions vs Rs. 134.400 Millions in the
corresponding three months of the previous year.
• Manufacturing
revenues represented by the Drapery/Upholstery and Bedding Divisions showed a
marginal reduction of 0.2 % to Rs. 1825.500 Millions vs Rs. 1829.800 Millions
in the corresponding three months of the previous year.
• Consolidated
EBITDA for the three months was higher at Rs. 434.900 Millions vs Rs. 433.900
Millions in the corresponding three months of the previous year, a growth of
0.2 %
• Consolidated Net
Profit for the three months was Rs. 130.300 Millions vs Rs. 112.100 Millions in
the corresponding three months of the previous year, a growth of 16.2 %
12 NOVEMBER 2012
CONSOLIDATED
REVENUES FOR SIX MONTHS UP BY 23.4 % TO RS. 8551.100 MILLIONS
CONSOLIDATED
EBITDA FOR SIX MONTHS UP BY 18.4 % TO RS. 805.400 MILLIONS
CONSOLIDATED PAT FOR SIX MONTHS AT 218.800 MILLIONS UP BY 10.5 %
CONSOLIDATED FINANCIAL PERFORMANCE (HALF YEAR ENDED 30TH SEPTEMBER 2012)
• Himatsingka, a
vertically integrated home textile major reported consolidated revenues of Rs.
8551.100 Millions vs Rs. 6927.600 Millions in the corresponding half of the
previous year, a growth of 23.4 %.
• Distribution
revenues in North America represented by Calvin Klein Home, Barbara Barry and
other brands in addition to private label lines grew by 6 % to USD 130.53
million vs USD 123.14 million in the corresponding half of the previous year.
• Distribution
revenues in Europe through the “Bellora” brand showed a reduction of 18.8 % to
Euro 6.41 million vs Euro 7.90 million in the corresponding half of the previous
year.
• Distribution
revenue in India / Middle East / South East Asia as represented through the Atmosphere
brand grew 13.9 % to Rs. 257.100 Millions vs Rs. 225.800 Millions in the
corresponding half of the previous year.
• Manufacturing revenues
for the Drapery/Upholstery and Bedding Divisions grew 9.47 % to Rs. 3485.900
Millions vs Rs. 3184.200 Millions in the corresponding half of the previous
year.
• Consolidated
EBITDA for the current half year was higher at Rs. 805.400 Millions vs Rs.
680.400 Millions in the corresponding half of the previous year, a growth of
18.4 %
• Consolidated Net
profit for the current half year was Rs. 218.800 Millions vs Rs. 198.100
Millions in the corresponding half of the previous year, a growth of 10.5 %
CONSOLIDATED
REVENUES FOR Q2 FY 13 UP BY 29 % TO RS. 4726.600 MILLIONS
CONSOLIDATED
EBITDA FOR Q2 FY 13 UP BY 10.8 % TO RS. 418.000 MILLIONS
CONSOLIDATED PAT FOR Q2 FY 13 AT 114.800 MILLIONS UP BY 11.9 %
CONSOLIDATED FINANCIAL PERFORMANCE (QUARTER ENDED 30TH SEPTEMBER 2012)
• Consolidated
revenues grew 29.0 % to Rs. 4726.600 Millions vs Rs. 3664.000 Millions in the
corresponding quarter of the previous year.
• Distribution
revenues in North America represented by Calvin Klein Home, Barbara Barry and
other brands in addition to private label lines grew 9.6 % to USD 72.17 million
vs USD 65.84 million in the corresponding quarter of the previous year.
• Distribution
revenues in Europe through the “Bellora” brand showed a reduction of 14.9 % to
Euro 3.18 million vs Euro 3.73 million in the corresponding quarter of the
previous year.
• Distribution
revenues in India / Middle East / South East Asia as represented through the Atmosphere
brand grew 12.8 % to Rs. 127.800 Millions vs Rs. 113.300 Millions in the corresponding
quarter of the previous year.
• Manufacturing
revenues for the Drapery/Upholstery and Bedding Divisions grew 16.2 % to Rs.
1859.400 Millions vs Rs. 1600.100 Millions in the corresponding quarter of the
previous year.
• Consolidated
EBITDA for the quarter was higher at Rs. 418.000 Millions vs Rs. 377.500
Millions in the corresponding quarter of the previous year, a growth of 10.8 %
• Consolidated Net
Profit for the quarter was Rs. 114.800 Millions vs Rs. 102.600 Millions in the
corresponding quarter of the previous year, a growth of 11.9 %
OTHER UPDATES:
• During the
quarter, the Himatsingka won the prestigious Asian CSR Leadership Award in
the category “Developing Sustainable Strategies”. This award reflects the
sustained efforts made on the Corporate Social Responsibility front.
• Himatsingka has
launched e-commerce platforms for its luxury brands “Atmosphere” and “Bellora”.
With this initiative, products of these brands will now be available online
across 35 countries and will contribute in enhancing customer experience.
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.54.16 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.