MIRA
INFORM REPORT
|
Report Date : |
18.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
PRECOT MERIDIAN LIMITED (w.e.f. 28.12.2006) |
|
|
|
|
Formerly Known
As : |
PRECOT MILLS LIMITED |
|
|
|
|
Registered
Office : |
Post Box No. 7161 and 737 Green Fields, Puliakulam Road, Coimbatore
-641045, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2012 |
|
|
|
|
Date of
Incorporation : |
02.06.1962 |
|
|
|
|
Com. Reg. No.: |
18-001183 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.74.750 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TZ1962PLC001183 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBP03135G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCP3038K |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The Subject is engaged into producing and selling of cotton yarn. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (34) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4760000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having a moderate track record. Even though the company has achieved some growth in its income from
operation during 2012, it has incurred heavy loss. However, trade relations are reported as fair. Business is active.
Payment terms are 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 |
ICRA |
|
Rating |
A4+ (Short Term Rating) |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
September 21, 2012 |
|
Rating Agency Name |
ICRA |
|
Rating |
BB+ (Long Term Rating) |
|
Rating Explanation |
Moderate risk of default. |
|
Date |
September 21, 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.
INFORMATION DECLINED
Management Non Co-operative (91-422-4321100)
LOCATIONS
|
Registered Office : |
Post Box No. 7161 and 737 Green Fields, Puliakulam Road, Coimbatore
-641045, Tamilnadu, India |
|
Tel. No.: |
91-422-4321100 |
|
Fax No.: |
91-422-4321200 |
|
E-Mail : |
Yarn – Domestic : sales@precot.com Yarn – Exports: exports@precot.com Fabric : wvg@precot.com Investors :
secretary@precot.com Careers : hr@precot.com |
|
Website : |
|
|
|
|
|
Factory 1 : |
A Unit Kanjikode, Palakkad, Kerala, India |
|
|
|
|
Factory 2 : |
B Unit Kodigenahalli, Hindupur, Andhra Pradesh, India |
|
|
|
|
Factory 3 : |
M Unit Nanjegoundanpudur, Pollachi, Tamilnadu, India |
|
|
|
|
Factory 4 : |
C and D Units Chandrapuram, Walayar, Kerala |
|
|
|
|
Factory 5 : |
K Unit Gowribidnur, Kolar, Karnataka, India |
|
|
|
|
Factory 6 : |
Weaving Unit Vettaikaranpudur, Tamilnadu, India |
|
|
|
|
Factory 7 : |
Dyeing Unit Perundurai, Tamilnadu, India |
SOLE PROPRIETOR/PARTNERS/DIRECTORS
As on: 31.03.2012
|
Name : |
Mr. D Sarath Chandran |
|
Designation : |
Chairman |
|
Qualification : |
B Sc (Hons), MBA |
|
|
|
|
Name : |
Mr. Ashwin Chandran |
|
Designation : |
Managing Director |
|
Qualification : |
B Sc (Hons), MBA |
|
|
|
|
Name : |
Mr. Prashanth Chandran |
|
Designation : |
Executive Director |
|
Qualification : |
B.Engg |
|
|
|
|
Name : |
Mr. Jairam Varadaraj |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A Ramkrishna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C N Srivatsan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M V Subaraman |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sumanth Ramamurthi |
|
Designation : |
Director |
|
Date of Birth/Age : |
53 Years |
|
Qualification : |
BS Electrical Engineer |
|
|
|
|
Name : |
Mr. Suresh Jagannathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay Mohan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Vijay Venkataswamy |
|
Designation : |
Director |
|
Date of Birth/Age : |
65 Years |
|
Qualification : |
MBA |
|
|
|
|
Name : |
Mr. K Ajit Kumar (Nominee of EXIM Bank) |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. M R Siva Shankar |
|
Designation : |
Head - Finance and Accounts |
|
|
|
|
Name : |
Mr. C Murugesh |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2012
|
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) |
Shareholding of
Promoter and Promoter Group |
|
|
|
(1) |
Indian |
|
|
|
(a) |
Individuals/Hindu Undivided Family |
4887101 |
61.09 |
|
(b) |
Central Government/State Government(s) |
0 |
0.00 |
|
(c) |
Bodies Corporate |
0 |
0.00 |
|
(d) |
Financial Institutions/Banks |
0 |
0.00 |
|
(e) |
Any Other (Total) |
0 |
0.00 |
|
|
Sub-Total (A)(1) |
4887101 |
61.09 |
|
(a) |
Individuals (Non-Resident Individuals/Foreign Individuals) |
0 |
0.00 |
|
(b) |
Bodies Corporate |
0 |
0.00 |
|
(c) |
Institutions |
0 |
0.00 |
|
(d) |
Qualified Foreign Investor |
0 |
0.00 |
|
(e) |
Any Other (Total) |
0 |
0.00 |
|
|
Sub-Total (A)(2) |
0 |
0.00 |
|
(2) |
Foreign |
|
|
|
|
Total Shareholding of Promoter and Promoter Group (A)= (A)(1)+(A)(2) |
4887101 |
61.09 |
|
(B) |
Public shareholding |
|
|
|
(1) |
Institutions |
|
|
|
(a) |
Mutual Funds/UTI |
158592 |
1.98 |
|
(b) |
Financial Institutions/Banks |
750 |
0.01 |
|
(c) |
Central Government/State Government(s) |
0 |
0.00 |
|
(d) |
Venture Capital Funds |
0 |
0.00 |
|
(e) |
Insurance Companies |
0 |
0.00 |
|
(f) |
Foreign Institutional Investors |
167 |
0.00 |
|
(g) |
Foreign Venture Capital Investors |
0 |
0.00 |
|
(h) |
Qualified Foreign Investor |
0 |
0.00 |
|
(i) |
Any Other (Total) |
0 |
0.00 |
|
|
Sub-Total (B)(1) |
159509 |
1.99 |
|
(2) |
Non-institutions |
|
|
|
(a) |
Bodies Corporate |
360726 |
4.51 |
|
(b) |
Individuals - i. Individual Shareholders Holding Nominal Share Capital Up To >Rs. 0.100 Million |
1924090 |
24.05 |
|
|
Individuals - ii. Individual Shareholders Holding Nominal Share Capital In Excess of Rs. 0.100 Million |
613577 |
7.67 |
|
(c) |
Qualified Foreign Investor |
0 |
0.00 |
|
(d) |
Any Other (Total) |
54997 |
0.69 |
|
(d1) |
Clearing Member |
5777 |
0.07 |
|
(d2) |
Hindu Undivided Family |
33114 |
0.41 |
|
(d3) |
Market Maker |
135 |
0.00 |
|
(d4) |
Non Resident Indians (Non-Repat) |
6029 |
0.08 |
|
(d5) |
Non Resident Indians (Repat) |
9942 |
0.12 |
|
|
Sub-Total (B)(2) |
2953390 |
36.92 |
|
|
Total Public Shareholding
(B)= (B)(1)+(B)(2) |
3112899 |
38.91 |
|
|
TOTAL (A)+(B) |
8000000 |
100.00 |
|
(C) |
Shares held by Custodians and against which Depository Receipts have been issued |
0 |
N.A. |
|
C1 |
Promoter and Promoter Group |
0 |
N.A. |
|
C2 |
Public |
0 |
N.A. |
|
|
GRAND TOTAL
(A)+(B)+(C) |
8000000 |
N.A. |
BUSINESS DETAILS
|
Line of Business : |
The Subject is engaged into producing and selling of cotton yarn. |
PRODUCTION STATUS: (As on:
31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
|
Spindles |
Nos. |
NA |
218208 |
|
Rotors |
Nos. |
NA |
1632 |
|
Looms |
Nos. |
NA |
117 |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Bankers : |
·
ICICI Bank Limited, Green Field, Coimbatore,
India ·
State Bank of India · Export Import Bank of India · Yes Bank ·
IDBI Bank ·
Corporation Bank ·
Andhra Bank |
||||||||||||||||||||||||||||||
|
|
|
||||||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
Notes: 1. a) Term loan from SBI, ICICI, Andhra Bank, Export Import Bank of India and IDBI Bank are secured by way of pari passu first charge on entire movable and immovable assets of the company and pari passu second charge on current assets of the company. b) Term loan from Yes Bank is secured by way of pari passu first charge on entire movable fixed assets. c) Term loan from IDBI Bank, Dubai Branch is secured by way of exclusive first charge on the windmills and related equipments, systems and assets located at Eragampatti and Manurpalayam Village in Tirupur district. 2. The loans are repayable in monthly / quarterly / half-yearly installments. 3. In respect of the above, Rupee Term Loans carry interest ranging from 7.5% p.a. to 14% p.a. and Foreign Currency Term Loans carry interest ranging from 1.6% p.a. to3%p.a. plus applicable LIBOR. 4. Working capital loans from SBI, Andhra Bank, Corporation Bank, IDBI, ICICI, Yes Bank and The South Indian bank are secured by way of pari passu first charge on current assets of the company and pari passu second charge on entire immovable assets of the company. 5. In respect of the above, working capital rupee loans carry interest ranging from 11.25% p.a. to 15.25% p.a. and working capital foreign currency loan and buyer's credit foreign currency loans carry interest ranging from 1.4% p.a. to 3.5% p.a. plus applicable LIBOR. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors 1 : |
|
|
Name : |
Haribhakti and Company Chartered Accountants |
|
|
|
|
Auditors 2 : |
|
|
Name : |
K S G Subramanyam and Company Chartered Accountants |
|
|
|
|
Subsidiary
Companies : |
· Suprem Textiles Processing Limited · Multiflora Processing (CBE) Limited · Precot Meridian Energy Limited · Benwood Corporation Sdn Bhd |
CAPITAL STRUCTURE
As on: 14.09.2012
Authorised Capital : Rs. 90.000 Millions
Issued, Subscribed & Paid-up Capital : Rs.80.000 Millions
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
9000000 |
Equity Shares |
Rs.10/- each |
Rs. 90.000 Millions |
|
|
|
|
|
Issued:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8025000 |
Equity Shares |
Rs.10/- each |
Rs.80.250 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
7475000 |
Equity Shares |
Rs.10/- each |
Rs.74.750 Millions |
|
|
|
|
|
i) Terms/rights
attached to equity shares:
The company has only one class of issued shares referred to as equity shares having a par value of Rs.10 each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors, if any, is subject to the approval of shareholders in the Annual General Meeting.
ii) The
reconciliation of the number of shares outstanding is set out below:
|
Equity Shares |
As at 31.03.2012 |
|
|
|
Number |
Rs. In Millions |
|
Equity Shares at the beginning of the year |
6950000 |
69.500 |
|
Add: Shares Issued during the year |
525000 |
5.250 |
|
Equity Shares at the end of the year |
7475000 |
74.750 |
During the year the company has allotted 525000 Equity Shares of Rs.10 each as fully paid up at a premium of 88 per share on preferential basis to its promoter Directors in accordance with the provision of Section 81(1A) of the Companies Act, 1956 and SEBI (ICDR) Regulations, 2009.
iii) The details of
Shareholders holding more than 5% of Shares:
|
Equity Shares |
As at 31.03.2012 |
|
|
|
No. of Shares Held |
% of holding |
|
D Sarath Chandran |
1668080 |
22.32% |
|
Ashwin Chandran |
1388305 |
18.57% |
|
Prashanth Chandran |
1164595 |
15.58% |
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 |
74.750 |
69.500 |
69.500 |
|
|
2] Share Application Money |
12.863 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
1103.603 |
1585.466 |
1390.354 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
1191.216 |
1654.966 |
1459.854 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2248.620 |
3213.699 |
2233.035 |
|
|
2] Unsecured Loans |
409.439 |
342.612 |
28.393 |
|
|
TOTAL BORROWING |
2658.059 |
3556.311 |
2261.428 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
194.932 |
166.157 |
|
|
|
|
|
|
|
|
TOTAL |
3849.275 |
5406.209 |
3887.439 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
2310.488 |
2181.257 |
2043.099 |
|
|
Capital work-in-progress |
121.619 |
26.799 |
22.527 |
|
|
|
|
|
|
|
|
INVESTMENT |
309.198 |
346.487 |
386.616 |
|
|
DEFERREX TAX ASSETS |
27.580 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1321.741
|
3153.901 |
1358.225
|
|
|
Sundry Debtors |
307.840
|
390.570 |
290.455
|
|
|
Cash & Bank Balances |
55.593
|
71.301 |
51.858
|
|
|
Other Current Assets |
74.919
|
43.724 |
88.106
|
|
|
Loans & Advances |
166.956
|
184.212 |
168.503
|
|
Total
Current Assets |
1927.049
|
3843.708 |
1957.147 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
288.810
|
324.520 |
196.198 |
|
|
Other Current Liabilities |
487.369
|
515.235 |
163.661 |
|
|
Provisions |
70.480
|
152.287 |
162.091 |
|
Total
Current Liabilities |
846.659
|
992.042 |
521.950 |
|
|
Net Current Assets |
1080.390
|
2851.666 |
1435.197 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
3849.275 |
5406.209 |
3887.439 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5940.404 |
5778.460 |
4366.129 |
|
|
|
Other Income |
86.176 |
31.781 |
33.593 |
|
|
|
TOTAL (A) |
6026.580 |
5810.241 |
4399.722 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3945.739 |
3439.105 |
|
|
|
|
Changes in inventories of finished goods and work-in-progress |
265.999 |
(456.172) |
|
|
|
|
Employee benefits expense |
542.309 |
516.172 |
|
|
|
|
Other expenses |
1412.103 |
1455.864 |
|
|
|
|
TOTAL (B) |
6166.150 |
4954.969 |
3721.821 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(139.570) |
855.272 |
677.901 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
287.186 |
145.614 |
121.999 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(426.756) |
709.658 |
555.902 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
299.091 |
269.565 |
279.166 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
(725.847) |
440.093 |
276.736 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(197.513) |
114.075 |
119.558 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
(528.334) |
326.018 |
157.178 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
53.700 |
8.500 |
(8.141) |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
(474.600) |
200.000 |
100.000 |
|
|
|
Dividend |
0.000 |
69.500 |
34.750 |
|
|
|
Tax on Dividend |
0.000 |
11.300 |
5.772 |
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
-- |
53.700 |
8.515 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods |
1480.646 |
1173.671 |
949.609 |
|
|
|
Dividend on Foreign Subsidiary |
37.857 |
2.414 |
0.792 |
|
|
TOTAL EARNINGS |
1518.503 |
1176.085 |
950.401 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
14.196 |
3.130 |
19.199 |
|
|
|
Stores & Spares |
23.545 |
37.093 |
4.812 |
|
|
|
Capital Goods |
186.641 |
7.100 |
0.000 |
|
|
TOTAL IMPORTS |
224.382 |
47.323 |
24.011 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
(75.76) |
46.91 |
22.62 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 1st
Quarter |
30.09.2012 2nd
Quarter |
31.12.2012 3rd
Quarter |
|
Type |
|
|
|
|
Net Sales |
1460.000 |
1698.400 |
1687.200 |
|
Total Expenditure |
1316.400 |
1466.300 |
1520.700 |
|
PBIDT (Excl OI) |
143.600 |
232.100 |
166.500 |
|
Other Income |
6.400 |
28.500 |
6.400 |
|
Operating Profit |
150.000 |
260.600 |
172.900 |
|
Interest |
72.700 |
64.800 |
56.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
77.300 |
195.800 |
116.900 |
|
Depreciation |
75.300 |
76.400 |
76.000 |
|
Profit Before Tax |
2.000 |
119.400 |
40.900 |
|
Tax |
0.500 |
41.800 |
13.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1.500 |
77.600 |
27.200 |
|
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 |
1.500 |
77.600 |
27.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(8.77) |
5.61
|
3.57
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(12.22) |
7.62
|
6.34
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(17.13) |
7.30
|
6.92
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.61) |
0.27
|
0.19
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.23 |
2.15
|
1.55
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.28 |
3.87
|
3.75
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
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)
|
Particular |
As on 31.03.2012 |
As on 31.03.2011 |
|
Deferred payment
liabilities |
|
|
|
Sales Tax Deferral loan |
9.439 |
15.666 |
|
From Bank |
|
|
|
Rupee Loan |
400.000 |
326.946 |
|
|
|
|
|
Total |
409.439 |
342.612 |
Notes:
a) Unsecured short term loan from Axis Bank carries interest at 11% p.a. for which the company has extended a corporate guarantee.
DIRECTORS
REPORT AND MANAGEMENT ANALYSIS
ECONOMIC OVERVIEW AND
INDUSTRY REVIEW
The Indian economy grew steadily in the preceding years, averaging 8.0% growth from 2007 to 2011. GDP, after a healthy growth of 7.7% during April to June 2011, fell sharply in subsequent quarters with the growth slowing down to 6.5% in 2011-12. High inflation, lower industrial growth rate, low government spending and an uncertain global outlook, especially in the Euro zone, have been the major contributory factors impacting the GDP growth. Industrial growth took the biggest hit, mainly due to poor performance of the manufacturing and mining sectors. Total business spending on fixed assets and capital formation contracted due to high input costs, high interest rates and lack of policy reforms. Domestic fuel price hikes, which are expected to continue, exerted additional upward pressure on inflation which hovered above 9% for 2011-12.
For the Textile Industry, 2011-12 was a very difficult year. The year started with uncertainty over yarn exports amid record highs in cotton prices. Global yarn prices were also ruling high due to the shortage created by the restriction on Indian exports since December 2010. Once yarn exports were opened up in April 2011, the huge stock of yarn that had piled up with Indian mills in the preceding months started to flow into the market. This had an adverse effect on yarn prices as supply was far higher than demand. Coupled with poor demand for fabric and garments in both the domestic and export markets, cotton and yarn prices crashed in the next two months.
As a result, spinning mills that were carrying inventories of cotton were burdened with huge write downs in the value of their cotton stock. In addition, the sudden and sharp drop in domestic and export yarn prices put the textile mills in a situation where cash loss was inevitable. Further, as cotton and yarn prices continued to drop month on month, confidence and sentiment were severely dented and purchasing reduced drastically. This led to high stock holding and reduced capacity utilization for the company until November 2011.
REVIEW OF OPERATIONS
The disparity between the cotton prices and yarn prices prevailed for most part of the year leading to huge losses in the year under review. With the RBI continuing its policy of increasing interest rates, there was a sharp increase in financing costs. Energy costs continued to remain high in view of the critical power situation that prevailed through the financial year. Salaries and wages continued to escalate in line with increased demand for human capital and increases in the cost of living. All these factors added to the pressure on the bottom line.
The market for fabrics did not maintain the momentum it had during the first quarter of the financial year. During the rest of the period, sales volumes dropped leading to slowing down of production and lower utilization of installed capacity. The company hopes that during current year market conditions for the fabric would improve.
Though the turnover of the company has shown a marginal improvement of around2%over the previous year in terms of value, the increased input costs in the form of raw material, labour, power and interest have contributed to an operating loss of Rs. 510.000 Millions as against an operating profit of Rs.660.000 Millions in the previous year.
TECHNICAL TEXTILES
Technical textiles have gained global importance over the past few years and the sector is set to grow at a fast pace in the immediate future. With a view to gain a foothold in this sector, the company is setting up a green field technical textile plant with state-of-the-art technology in the Textile Special Economic Zone at Hassan in the state of Karnataka. The company, which has been hitherto in the traditional textile products like yarn and fabric, will venture into these value added products, which they consider as an emerging area of opportunity. The plant will produce non-woven products for medical and hygiene care applications.
Necessary statutory approvals have been obtained. Civil work has commenced and the plant is expected to start commercial production from April 2013. The project cost is estimated to be Rs. 1650.000 Millions out of which Rs. 1250.000 Millions is to be funded through a term loan from ICICI Bank.
OUTLOOK FOR THE
CURRENT YEAR
Cotton prices at the commencement of the cotton season 2011-12 stood at Rs.0.039 Million per candy and as the season progressed it moderated to Rs. 0.035 Million in January 2012 and further decreased to Rs. 0.033 Million in March 2012. The government's wavering stand on cotton exports resulted in an uncertainty and increased volatility in cotton prices since then. Yarn prices have gradually improved since December and most counts are profitable at an operating level currently.
The overall demand for yarns and fabrics in both the export and domestic markets are muted and there is a lack of confidence in the entire supply chain. With the financial turmoil in the Euro zone continuing and the US economy limping back to recovery, a quick turnaround in export demand looks remote. Their domestic economy continues to struggle with high inflation and slowing growth, factors which are strongly affecting demand for textiles and other consumer goods. Given this scenario, the company will attempt to cut spending and concentrate on maximising capacity utilization in the coming quarters.
CONTINGENT
LIABILITIES IN RESPECT OF:
(Rs. In Millions)
|
Particular |
As on 31.03.2012 |
As on 31.03.2011 |
|
Claims against the
company not acknowledged as debts: |
|
|
|
Disputed Statutory Liabilities not provided for |
266.359 |
124.482 |
|
Disputed Other Liabilities not provided for |
28.596 |
26.514 |
|
Guarantees |
12.339 |
12.238 |
|
Bills discounted |
290.413 |
169.292 |
|
Letters of credit outstanding |
938.931 |
Nil |
FIXED ASSETS
Tangible Assets
· Land
· Building
· Plant and Equipment
· Vehicles
· Office Furniture
· Computer
Intangible Assets
· ERP Expenditure
· Software
STATEMENT OF
STANDALONE UNAUDITED RESULTS FOR THE QUARTER AND NINE MONTHS PERIOD ENDED
31.12.2012
(Rs. In Millions)
|
|
Particulars |
Quarter ended |
Nine months ended |
|
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
Part I |
|
|
|
|
|
1 |
Income from
operations |
|
|
|
|
|
(a) Net sales / income from operation (net of excise duty) |
1670.100 |
1684.700 |
4802.500 |
|
|
(b) Other operating income |
17.100 |
13.700 |
43.100 |
|
|
Total income from
operations (net) |
1687.200 |
1698.400 |
4845.600 |
|
2 |
Expenses |
|
|
|
|
|
(a) Cost of materials consumed |
881.900 |
876.700 |
2526.800 |
|
|
(b) Purchase of stock in trade |
|
|
|
|
|
(c) Changes in inventories of finished goods, work-in-progress and stock in trade |
(25.000) |
(26.200) |
(45.100) |
|
|
(d) Employee benefits expense |
164.300 |
164.800 |
466.300 |
|
|
(e) Depreciation and amortisation expenses |
76.000 |
76.400 |
227.700 |
|
|
f) Power and fuel |
254.800 |
201.200 |
627.900 |
|
|
g) Other expenses |
244.700 |
249.800 |
727.500 |
|
|
Total expenses |
1596.700 |
1542.700 |
4531.100 |
|
3 |
Profit / (loss)
from operations before other income, finance costs and exceptional Items
(1-2) |
90.500 |
155.700 |
314.500 |
|
4 |
Other income |
6.400 |
0.500 |
41.300 |
|
5 |
Profit / (loss) from
ordinary activities before finance costs and exceptional items(3+4) |
96.900 |
184.200 |
355.800 |
|
6 |
Finance costs |
56.000 |
64.800 |
193.500 |
|
7 |
Profit / (loss)
from ordinary activities after finance costs but before exceptional Items
(5-6) |
40.900 |
119.400 |
162.300 |
|
8 |
Exceptional items |
|
|
|
|
9 |
Profit / (loss)
from ordinary activities before tax (7+8) |
40.900 |
119.400 |
162.300 |
|
10 |
Tax expenses |
13.700 |
41.800 |
56.000 |
|
11 |
Net profit / (loss)
from ordinary activities after tax (9-10) |
27.200 |
77.600 |
106.300 |
|
12 |
Extraordinary item (net of tax expense ) |
|
|
|
|
13 |
Net profit / (loss)
for the period (11-12) |
27.200 |
77.600 |
106.300 |
|
14 |
Paid-up equity share capital (Face value Rs. 10 per share) |
80.000 |
80.000 |
80.000 |
|
15 |
Reserve excluding revaluation reserves as per balance sheet of previous accounting year |
|
|
|
|
16 |
Earnings Per Share (EPS) (Basic & Diluted) (before & after extraordinary items) (of? 10/-each Knot annualised) |
3.40 |
9.70 |
13.29 |
|
Part Il |
|
|
|
|
|
A |
Particulars of
shareholding |
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
- Number of shares |
3112899 |
3112899 |
3112899 |
|
|
- Percentage of shareholding |
38.91 |
38.91 |
38.91 |
|
2 |
Promoters and
promoters group shareholding |
|
|
|
|
|
a. Pledged /
encumbered |
|
|
|
|
|
Number of shares |
|
|
|
|
|
Percentage of shares (as a % of the total shareholding of Promoter and Promoter group) |
- |
- |
- |
|
|
Percentage of shares (as a % of the total share capital of the company) |
- |
- |
- |
|
|
b. Non - encumbered: |
|
|
|
|
|
Number of shares |
4887101 |
4887101 |
4887101 |
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100 |
100 |
100 |
|
|
Percentage of shares (as a % of the total share capital of the company) |
61.09 |
61.09 |
61.09 |
|
|
|
|
|
|
|
B |
Investor complaints
|
Quarter ended
31.12.2012 |
|
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
|
|
Received during the quarter |
Nil |
|
|
|
|
Disposed of during the quarter |
Nil |
|
|
|
|
Remaining unresolved at the end of the quarter |
Nil |
|
|
Notes:
1. The operations of the company primarily relate to one business segment viz, Textiles
2. Figures for the earlier periods have been regrouped/ reclassified to correspond to the figures for the current period.
3. The above results have been subjected to a limited review by the Statutory Auditors, reviewed by the Audit Committee and approved by the Board of Directors.
4. The Company has obtained an approval from the share holders under section 293(1) (a) of the Company Act 1956 to dispose of the Fabrics division. On disposal, effect will be given in the subsequent financial statements.
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.81.75 |
|
Euro |
1 |
Rs.70.50 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYN |
|
|
|
|
Report Prepared
by : |
VRN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
34 |
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.