MIRA INFORM REPORT
|
Report Date : |
10.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
NAHAR SPINNING MILLS LIMITED |
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Registered
Office : |
373 Industrial Area, Phase A, Ludhiana-141003, |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
16.12.1980 |
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Com. Reg. No.: |
16-004341 |
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Capital Investment/
Paid-up Capital: |
Rs.180.531 Millions |
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CIN No.: [Company Identification
No.] |
L17115PB1980PLC004341 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDN00362F / JLDN00361E / JLDN00757B |
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PAN No.: [Permanent Account No.] |
AAACN5710D |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of
Cotton / Synthetic and Blended Yarns. |
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No. of
Employees: |
10590 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 21950000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is the flagship company of the Nahar group, a business
conglomerate which is into spinning, garments and hosiery. It is a well established company having fine track. It has incurred
heavy loss from its operations during 2012. However, it has established position in the cotton yarn and knitted
garments markets, large – scale and integrated operations and presence across
the textile value chain. Trade relations are reported as trustworthy. Business is active.
Payments are reported to be regular and as per commitment. The company can be considered good 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) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
A (Long Term Rating) |
|
Rating Explanation |
Adequate degree of safety and low credit risk |
|
Date |
18.09.2012 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A1 (Short Term Rating) |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk |
|
Date |
18.09.2012 |
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 PARTED BY
|
Name : |
Mr. Anil Garg |
|
Designation : |
Finance Head |
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Contact No.: |
91-161-5066220 |
|
Date : |
09.05.2013 |
LOCATIONS
|
Registered / Corporate Office : |
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Tel. No.: |
91-161-2600701-05 / 2606977-80/ 2660945/ 2661181/ 2661180 |
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Fax No.: |
91-161-2222942 / 2601956 / 601956 |
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E-Mail : |
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Website : |
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Factory 1 : |
427, Industrial Area–‘A’, |
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Factory 2 : |
Dhandari Kalan, |
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Factory 3 : |
Village Simrai, Mandideep, District Raisen, |
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Factory 4 : |
Jalalpur, District S.A.S. Nagar, (Punjab) , |
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Factory 5 : |
Village Lalru and Lehli, District S.A.S. Nagar, Punjab , India |
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Factory 6 : |
Rishab Spining Mills, Village Jodhan, District, |
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Factory 7 : |
Nahar Fibres, Jitwal Kalan Malekotla, District |
DIRECTORS
AS ON 31.03.2012
|
Name : |
Mr. Jawahar Lal Oswal |
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Designation : |
Chairman |
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Name : |
Mr. Dinesh Oswal |
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Designation : |
Managing Director |
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Name : |
Mr. Kamal Oswal |
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Designation : |
Director |
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Name : |
Mr. Dinesh Gogna |
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Designation : |
Director |
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Name : |
Dr. H.K. Bal |
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Designation : |
Director |
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Name : |
Dr. |
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Designation : |
Director |
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Name : |
Prof. Kanwar Sain Sharma |
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Designation : |
Director |
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Name : |
Mr. Satish Kumar Sharma |
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Designation : |
Director |
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Name : |
Dr. Suresh Kumar Singla |
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Designation : |
Director |
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Name : |
Dr. Amrik Singh Sohi |
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Designation : |
Additional Director |
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Name : |
Dr. Yash Paul Sachdeva |
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Designation : |
Additional Director |
KEY EXECUTIVES
|
Name : |
Mr. Anil Kumar Garg |
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Designation : |
Finance Controllers |
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|
Name : |
Mr. P.K. Vashishth |
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Designation : |
Finance Controllers |
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Name : |
Mr. Brij Sharma |
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Designation : |
Company Secretary |
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Name : |
Mr. Shshikant |
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Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2013
|
Category of Shareholder |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
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|
|
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|
87591 |
0.24 |
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|
23291834 |
64.58 |
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|
23379425 |
64.83 |
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|
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Total shareholding of Promoter and Promoter Group (A) |
23379425 |
64.83 |
|
(B) Public Shareholding |
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|
|
|
|
|
|
|
7666 |
0.02 |
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|
7665 |
0.02 |
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|
600 |
0.00 |
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|
15931 |
0.04 |
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|
|
|
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|
1681923 |
4.66 |
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|
|
|
|
|
9052229 |
25.10 |
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|
1824470 |
5.06 |
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|
111325 |
0.31 |
|
|
109062 |
0.30 |
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|
1597 |
0.00 |
|
|
466 |
0.00 |
|
|
200 |
0.00 |
|
|
12669947 |
35.13 |
|
Total Public shareholding (B) |
12685878 |
35.17 |
|
Total (A)+(B) |
36065303 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
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|
0 |
0.00 |
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|
0 |
0.00 |
|
Total (A)+(B)+(C) |
36065303 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cotton / Synthetic and Blended Yarns. |
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Products : |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
PRODUCTION STATUS
AS ON 31.03.2011
|
Particulars |
Unit |
Licensed Capacity |
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|
Textile and Hosiery Garments |
Pcs |
14000000 |
|
Spindles / Roters |
N.A |
-- |
|
Particulars |
Unit |
Installed Capacity |
|
|
|
|
|
Textile and Hosiery Garments |
Not Feasible |
-- |
|
Cotton/Synthetic Yarn |
Spindles Roters |
383296 1080 |
|
Gas-mercer sing |
M. T. |
2040 |
|
Dyeing and processing-Lalru unit |
Not Feasible |
-- |
|
Particulars |
Unit |
Actual Productions |
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|
|
|
|
Textile and Hosiery Garments |
Pcs |
7788371 |
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Cotton/Synthetic Yarn |
Kgs. |
60235337 |
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Gas-mercer sing |
Kgs. |
1976407 |
|
Dyeing and processing yarn/Fabric-Lalru Unit |
Kgs. |
121588 |
GENERAL INFORMATION
|
No. of Employees : |
10590 (Approximately) |
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Bankers : |
·
IDBI Bank, SCO 126-128, Kalinga Towers, Feroze Gandhi
Market, Ludhiana-141001, Punjab, India ·
Punjab National Bank ·
State Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Gupta Vigg and Company Chartered Accountants |
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Address : |
101, Kismat Complex, |
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Associates : |
·
Nahar
Capital and Financial Services Limited ·
Nahar
Poly Films Limited ·
Nahar
Industrial Enterprises Limited ·
Oswal
Woollen Mills Limited ·
Vanaik Spinning
Mills Limited ·
Abhilash
Growth Fund Private Limited ·
Atam
Vallabh Financers Limited ·
Bermuda
Insurance Brokers Private Limited ·
Kovalam
Investment and Trading Company Limited ·
Ludhiana
Holdings Limited ·
Monica
Growth Fund Private Limited ·
Nagdevi
Trading and Investment Company Limited ·
Nahar
Growth Fund Private Limited ·
Ogden
Trading and Investment Company Private Limited ·
Ruchika
Growth Fund Private Limited ·
Sankeshwar
Holding Company Limited ·
Vanaik
Investors Limited ·
Verdhman
Investment Limited ·
J.L.
Growth Fund Limited ·
Jawahar
Lal and Sons ·
Crown
Star Limited ·
Monte
Carlo Retail ( |
CAPITAL STRUCTURE
AS ON 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.5/- each |
Rs.300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
36065303 |
Equity Shares |
Rs.5/- each |
Rs.180.327
Millions |
|
|
Share Forfeited Account (Amount originally paid up) |
|
Rs. 0.204
Million |
|
|
|
|
Rs.180.531 Millions |
TERMS/RIGHTS ATTACHED
TO EQUITY SHARES
The company has only one class of shares having par value at Rs.
5/-per share. Each holder of equity shares is entitled to one vote per share
RECONCILIATION OF
NUMBER OF SHARES
|
Particular |
2012 |
2011 |
|
Number of shares at the beginning of the Financial year |
36065303 |
36065303 |
|
Add: Shares Issued During the year |
- |
- |
|
Less: Share buy back during the year |
- |
- |
|
Number of shares at the end of the Financial year |
36065303 |
36065303 |
DETAIL OF
SHAREHOLDERS HOLDING
more than 5% shares
|
|
2012 |
|
|
Name of the Shareholder |
Number of Shares |
% |
|
Nahar Capital and Financial services Limited |
10257384 |
28.44 |
|
Nahar Poly Films Limited |
6611332 |
18.33 |
|
Nahar Industrial Enterprises Limited |
2356930 |
6.54 |
FORFEITED SHARES
(AMOUNT ORIGINALLY PAID UP)
|
Particular |
2012 |
2011 |
|
Amount Paid Up |
|
|
|
Rs.2.50 per Share |
80298 |
80298 |
|
Rs.5.00 per Share |
710 |
710 |
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 |
180.531 |
180.531 |
180.531 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
5307.123 |
6479.135 |
5365.697 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5487.654 |
6659.666 |
5546.228 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
11356.976 |
12726.707 |
8459.875 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
99.280 |
|
|
TOTAL BORROWING |
11356.976 |
12726.707 |
8559.155 |
|
|
DEFERRED TAX LIABILITIES |
6.500 |
568.000 |
555.750 |
|
|
|
|
|
|
|
|
TOTAL |
16851.130 |
19954.373 |
14661.133 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
8375.418 |
7483.159 |
6472.430 |
|
|
Capital work-in-progress |
395.758 |
556.737 |
411.750 |
|
|
|
|
|
|
|
|
INVESTMENT |
142.329 |
170.617 |
109.451 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
4689.345
|
8052.649 |
4884.736
|
|
|
Sundry Debtors |
3817.850
|
3722.969 |
2454.148
|
|
|
Cash & Bank Balances |
117.777
|
111.152 |
182.633
|
|
|
Other Current Assets |
0.000
|
0.000 |
0.000
|
|
|
Loans & Advances |
1165.914
|
2378.250 |
1340.162
|
|
Total
Current Assets |
9790.886
|
14265.020 |
8861.679 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
428.637
|
561.280 |
169.494
|
|
|
Other Current Liabilities |
1423.999
|
1323.548 |
793.100
|
|
|
Provisions |
0.625
|
636.332 |
231.583
|
|
Total
Current Liabilities |
1853.261
|
2521.160 |
1194.177 |
|
|
Net Current Assets |
7937.625
|
11743.860 |
7667.502 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
16851.130 |
19954.373 |
14661.133 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
16965.308 |
13946.614 |
11104.695 |
|
|
|
Other Income |
93.161 |
115.538 |
103.539 |
|
|
|
TOTAL |
17058.469 |
14062.152 |
11208.234 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials
consumed |
10963.658 |
7997.411 |
|
|
|
|
Purchase of
Stock-in-Trade |
56.263 |
133.219 |
|
|
|
|
Employee benefit
expense |
1117.102 |
1081.716 |
|
|
|
|
Other expenses |
3908.519 |
3114.296 |
9253.175 |
|
|
|
Difference of
excise duty on Stocks |
0.662 |
0.541 |
|
|
|
|
Changes in
inventories of finished goods, work-in-progress and Stock-in-Trade |
801.117 |
(1334.257) |
|
|
|
|
TOTAL |
16847.321 |
10992.926 |
9253.175 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
211.148 |
3069.226 |
1955.059 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
1101.219 |
486.272 |
450.397 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/(LOSS)BEFORE TAX, DEPRECIATION AND AMORTISATION |
(890.071) |
2582.954 |
1504.662 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
844.415 |
697.794 |
698.611 |
|
|
|
|
|
|
|
|
|
Less |
Amount of Foreign
Exchange Hedging Loss Settled During the year |
0.000 |
105.846 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX |
(1734.486) |
1779.314 |
806.051 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(560.875) |
564.750 |
271.129 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX |
(1173.611) |
1214.564 |
534.922 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Disputed Liability Reserve |
|
|
0.000 |
|
|
|
Proposed Divided |
|
|
54.098 |
|
|
|
Tax on Divided |
NA |
NA |
8.985 |
|
|
|
Foreign Exchange Contingent Disputed
Liability Reserve |
|
|
14.927 |
|
|
|
General Reserve |
|
|
456.912 |
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
11209.723 |
9508.868 |
7082.707 |
|
|
|
Discount/Rent/Interest Received/Others |
5.689 |
5.395 |
3.096 |
|
|
|
Carbon Credit |
0.000 |
12.153 |
13.259 |
|
|
TOTAL EARNINGS |
11215.412 |
9526.416 |
7099.062 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
138.414 |
32.141 |
64.415 |
|
|
|
Stores & Spares |
92.835 |
108.273 |
72.551 |
|
|
|
Capital Goods |
491.682 |
508.940 |
132.312 |
|
|
TOTAL IMPORTS |
722.931 |
649.354 |
269.278 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
32.50 |
33.20 |
14.83 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Types |
1st Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
4439.200 |
4967.200 |
5057.900 |
|
Total Expenditure |
3723.700 |
4162.000 |
4305.900 |
|
PBIDT (Excl OI) |
715.500 |
805.200 |
752.000 |
|
Other Income |
13.200 |
16.200 |
16.400 |
|
Operating Profit |
728.700 |
821.400 |
768.400 |
|
Interest |
317.500 |
268.800 |
212.700 |
|
PBDT |
411.200 |
552.600 |
555.700 |
|
Depreciation |
219.800 |
220.000 |
218.700 |
|
Profit Before Tax |
191.400 |
332.600 |
337.000 |
|
Tax |
62.000 |
108.000 |
109.000 |
|
Profit After Tax |
129.400 |
224.600 |
228.000 |
|
Net Profit |
129.400 |
224.600 |
228.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
(6.88) |
8.64 |
4.77 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(10.22) |
12.76 |
7.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(9.55) |
8.18 |
5.26 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.32) |
0.27 |
0.15 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.41 |
2.29 |
3.14 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
5.28 |
5.66 |
7.42 |
LOCAL AGENCY FURTHER INFORMATION
|
Available
in Report [Yes/No] |
|
|
Year
of Establishment |
Yes |
|
Locality
of the Firm |
Yes |
|
Constitution
of the firm |
Yes |
|
Premises
details |
No |
|
Type
of Business |
Yes |
|
Line
of Business |
Yes |
|
Promoters
background |
No |
|
No.
of Employees |
Yes |
|
Name
of Person Contacted |
Yes |
|
Designation
of contact person |
Yes |
|
Turnover
of firm for last three years |
Yes |
|
Profitability
for last three years |
Yes |
|
Reasons
for variation <> 20% |
- |
|
Estimation
for coming financial year |
No |
|
Capital
the business |
Yes |
|
Details
of sister concerns |
Yes |
|
Major
Suppliers |
No |
|
Major
Customers |
No |
|
Payment
Terms |
Yes |
|
Export
/ Import Details [If Applicable] |
No |
|
Market
Information |
- |
|
Litigations
that the firm / promoter involved in |
- |
|
Banking
Details |
Yes |
|
Banking
Facility Details |
Yes |
|
Conduct
of the banking account |
- |
|
Buyer
visit details |
- |
|
Financials,
if provided |
Yes |
|
Incorporation
details, if applicable |
Yes |
|
Last
accounts filed at ROC |
Yes |
|
Major
Shareholders, if applicable |
Yes |
|
Date of Birth of
Proprietor/Partner/Director, if available |
No |
|
PAN
of Proprietor/Partner/Director, if available |
No |
|
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
External Agency
Rating, if available |
Yes |
PERFORMANCE REVIEW
The Institute of Chartered
Accountants of
YARN SEGMENT
They are pleased to inform you that during
the year the company fully implemented expansion plans and thus increased its
spindlage capacity to 432256 spindles and 1080 Rotors.
Yarn Segment though achieved a
Revenue of 1583.11 Millions as against 1273.20 Millions showing an increase of
24.34 % over the previous year but it suffered a heavy loss of 86.25 Millions
as against profit (before Tax and Interest) of 222.05 Millions in the previous
year. The sudden crash of Raw cotton prices in the first quarter of the
Financial year 2011-2012 coupled with decline in the prices of finished goods
in the domestic and overseas markets severely affected the financial
performance of the segment. Moreover untimely restrictions by the Government,
in the last few months of the immediate preceding year affected the circle of
demand and supply and thus resulted piling up of finished stocks at Mills
level. Though this embargo on export was lifted after a short span of time but
it had the turbulences in the Textile industry. The accumulated stock of
finished goods at Mill's level, when entered into the markets caused a crash of
cotton yarn prices by more than 30% within a span of month. In order to remain
in the Global markets and to clear piling of finished goods inventory, company
had to sell its products at prevailing cheap prices resulting heavy losses to
the company.
However in the Current Financial
Year things have started moving in the right direction and it is expected that
the segment will improve its performance in the current year.
GARMENTSEGMENT
During the year, the segment went
through a challenging phase due to volatility in the prices of raw material and
economic slowdown in the US and European Union. But inspire of the above, the
segment improved its performance and achieved a revenue of Rs.191.28 Millions
with a profit (before interest and tax) of Rs.16.95 Millions.
The company has been awarded Golden
Trophy by the Apparel Export Promotion Council for the highest export of Cotton
Garments for the year 2009-2010. Sh. Anand Sharma, Hon'ble Union Minister of
Commerce, Industry and Textile awarded the Golden Trophy on 14th November, 2011
at a function organized by AEPC at
OVERALL PERFORMANCE
From the above it is evident that
the year by gone was the worst year for the spinning industry and the company's
performance was also affected in the year. Though company's operating income
increased to Rs.16914.200 Millions from Rs.13887.500 Millions showing an
impressive increase of 17.89% over the previous year but it suffered a heavy
loss of Rs.1172.000 Millions during the year . As the members are aware that
cotton being a seasonable crop is purchased by the spinning mills for its full
year requirements, during the cotton season but the cotton prices went up
steeply during the season 2010-2011 due to export of huge quantity of cotton
during the peak cotton season. Thus the Spinning Mills were forced to buy good
quality cotton at abnormally higher prices during the season. However in April,
2011 the sudden crash of raw cotton prices coupled with decline in the prices
of finished goods in the domestic as well as overseas markets severely affected
the financial performance of the company. The mounting pressure of piling up of
finished goods at Mills level pushed the companies to sell its yarn at cheaper
prices which in turn affected company's financial performance. To add problems
for the spinning industry, Reserve Bank of
However in the current year, things
have started moving in the right direction. It is expected that revival of
economy in
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE AND DEVELOPMENTS: Though Indian Textile Industry is one of the oldest manufacturing Industry but it is one of the major sector of the Indian economy contributing towards the growth of the Country`s Industrial Sector. It occupies a unique place in the economy as it is a self relied industry from production of raw material to fabrics and garments and provides direct employment to about 35 millions people. The Textile is the second highest industry after the agriculture sector and contribute about 14% of industrial production, 4% of National GDP and 10.63% of Country`s export earnings The Textile industry`s growth started galloping after the opening of the sector through liberalization policies as initiated by the Government of India. In a short span, Textile industry successfully made its place in the World as the second largest producer of Textile and Garments after China In line with the Global trends and to remain competitive, the company too expanded its capacities both in Yarns as well as in Garments. Presently the company has 432256 spindles and 1080 Rotors for the manufacturer of Cotton, synthetic and blended yarns. The Company`s garment manufacturing capacity has increased to 125 Million Pcs. per annum. The company has positioned itself as India`s one of the leading integrated textile player. Them would also like to share with you that last year has been the worst year for the textile industry. Though the fact regarding the recession through out the World was the common knowledge for every one but the effect of the same to the respective industries was known to the respective sectors only. The overall World recession has the worst effect in the Textile industry as it was coupled with the Currency fluctuations as well as sudden downward trend in the prices of finished products. Moreover untimely restrictions by the Government, in the last few months of the immediate preceding year affected the circle of demand and supply and thus resulted piling up of finished stocks at Mills level. Though this embargo on export was lifted after a short span of time but it had the turbulences of the same in the Textile industry in the succeeding year. Though the Industry will take some more time to come back on the same path of growth but growth in the industry is imperative. In addition, the Textile industry has always got proper attention from the Central Government because of its importance in the economy. To give further push for the revival of the industry, the Union Minister of Commerce, Industry and Textile Sh. Anand Sharma announced the Annual supplement 2012-13 to the Foreign Trade policy 2009-2014 whereby a series of measures including extension of interest rate subvention scheme till 31st March, 2013 and expansion of the scheme covering more products to boost exports, were offered to the Industry. The addition of items, products and rates under the Focus Market Scheme has also enabled the industry to tap the new export markets. These measure have provided a little bit of relief to the Industry and them are quite hopeful that the said measures would ease the pressure on the industry and will help in facing the challenges ahead. FUTURE OUTLOOK During the year , several factor like volatile Cotton prices, High rate of interest, tightening of the monitory policy, Exchange Rate fluctuations and power crisis adversely affected the textile industry. Besides economic slow down in the US , European Union and Asia has lowered the demand for the textile products resulting fall in the International prices. The global buyers have resorted to a system similar to Global Tendering which is taking its toll on Indian Garments Export. The orders are gained or lost by very thin margin. Unless the manufacturers are able to compete by overall cost competitiveness, orders goes to other countries. Thus earning a reasonable margins has become a challenging task. The continuous presence of several adverse factors, as mentioned in para above, has made the industry strong enough to face all the turbulence and learn to survive in a competitive environment. They are looking at the future with optimism and hope that revival of economy in U.S. In view of the above, they expect that the Government will take a cautious approach in allowing the export of raw cotton and will take the industry into confidence before devising a policy of export for raw cotton. FINANCIAL/OPERATION PERFORMANCE: The year 2012 has been the worst year for the spinning industry. Inspite of difficult year, the company has been able to increase its top line to Rs.16914.200 Millions but it bottom line suffered because of the several factors which has already been mentioned above. The company suffered a heavy loss of 1172.000 Millions during the year. The detailed performance has already been discussed in the Directors Report under the column `Company`s performance`.
FIXED ASSETS:
·
Land and Building
·
Plant and Machinery
·
Furniture and Fixtures
AS PER WEB DETAILS
PROFILE
Spinning a web of pure enchantment seems to be the aim and
objective of Nahar Spinning, reckoned to be the blue-chip in the NAHAR
firmament.
Starting out as a tiny worsted spinning and hosiery unit in
In 1992, as a measure of backward integration, the company diversified into the
Spinning Industry. Today it has an installed spindlage of 335000 spindles.
Simultaneously the company also established an ultra modern facility to
manufacture 12.5 Million pieces of Hosiery Garments. Today Nahar Spinning’s
T-shirts are being exported to reputed international brands such as GAP, Arrow,
Old Navy, Pierre Cardin, Philips Van Heusen, Izod, Quicksilver, Price Costco…
As a measure of further value addition subject has put up a plant for the
manufacture of fine count mercerized yarn and fabrics catering to both, the
domestic hosiery garment market as well as export markets.
To make use of the emerging opportunities on the Global
Textile Scenario and also to have a focused business approach, the company went
in for the Scheme of demerger and arrangement to restructure its businesses.
The Scheme has already been approved by the Hob’ble
Further as per the scheme “Textiles Business” of Nahar Exports Limited stand
demerged and transferred to the company (post demerger of investment business)
in accordance with the terms of the scheme. Thus upon implementation of the
Scheme the spindlage capacity of the company stand increased to 0.345 millions
spindles.
The Company's mantra "World is our markets" is
truly reflected in its operations. The Company is one of the largest integrated
textile player in
MILESTONE
Their Achievements
Installed Capacity of 93408 spindles | ISO-9002 certified | Golden Trading
House
New Expansions
Mercerizing plant - 2040 MT | Garments – 9.000
millions pieces licensed capacity
1980- Incorporated as a Private Limited Company
1984- Recognized
as an Export House by Govt. of
1985-Raises funds
through maiden Public Issue to finance modernisation and expansion
1988-Recognized as a Trading House by Govt. of
1991-92-Turnover
crosses the Rs.1000 millions mark
1992-Decides to
set up a Spinning Unit with 50400 spindles. Raises capital through a Rights
Issue.
1994-Decides to raise the spindlage by another 25000 spindles
1995-96-Turnover
crosses the Rs.2000 millions mark
1996-Receives ISO-9002 certification
1996-97-Turnover
crosses the Rs.3000 millions mark
1999-Accorded
Golden Trading House Status by Government of
1999-2000-Mercerizing-cum-dyeing
plant and a 100% EOU Spinning Unit with 28224 spindles under implementation
2003-2004-The
Cotton Textile Export Promotion Council awarded Texprocil Silver Trophy to the
company for its outstanding Export performance in yarns
2006-2007-The apparel export promotion council awarded AEPC
achievement award to the company for achieving highest exports in garment.
2008 Apparel Export promotion council awarded Gold
Trophy for achieving highest Export of Cotton Garments.
2009 The Cotton Textiles Export Promotion Council
(Texprocil) awarded Gold Trophy for highest export of Cotton Yarn (Counts 50s
and below)
2009 Turnover crosses Rs.10000.000 Millions mark.
2010 Decides to increase capacity by adding
another 90000 spindles.
UNAUDITED
FINANCIAL RESULTS (PROVISIONAL) FOR THE QUARTER ENDED 31.12.2012
Rs. In Millions
|
Sr. No. |
Particular |
Quarter Ended |
Nine Months Ended |
|
|
|
|
31.12.2012 (Unaudited) |
30.09.2012 (Unaudited) |
31.12.2012 (Unaudited) |
|
|
|
|
|
|
|
1. |
Net Sales/Income from Operations |
5044.903 |
4956.657 |
14430.442 |
|
|
Other Operating Income |
13.038 |
10.522 |
33.901 |
|
|
Total Income From Operations (Net) |
5057.941 |
4967.179 |
14464.343 |
|
|
|
|
|
|
|
2. |
Expenditure |
|
|
|
|
|
Cost
of materials consumed |
2696.273 |
2701.865 |
7860.838 |
|
|
Purchase
of stock in trade |
37.533 |
1.897 |
46.874 |
|
|
Changes
in inventories of finished goods, work in progress and stock in trade |
57.323 |
(55.776) |
(87.073) |
|
|
Employee
benefits expenses |
341.290 |
356.341 |
1016.214 |
|
|
Power
and Fuel |
620.992 |
621.275 |
1806.528 |
|
|
Depreciation
and amortization expenses |
218.657 |
219.964 |
658.389 |
|
|
Other
expenses |
552.514 |
536.411 |
1548.250 |
|
|
Total Expenses |
4524.582 |
4381.977 |
12850.020 |
|
|
|
|
|
|
|
3. |
Profit
From Operations before Other Income, Interest and Exceptional Items (1-2) |
533.359 |
585.202 |
1614.323 |
|
|
|
|
|
|
|
4. |
Other
Income |
16.348 |
16.211 |
45.711 |
|
|
|
|
|
|
|
5. |
Profit
Before Interest and Exceptional Items (3+4) |
549.707 |
601.413 |
1660.034 |
|
|
|
|
|
|
|
6. |
Interest |
212.690 |
268.788 |
798.990 |
|
|
|
|
|
|
|
7. |
Profit
After Interest but before Exceptional Items (5-6) |
337.017 |
332.625 |
861.044 |
|
|
|
|
|
|
|
8. |
Exceptional
Items |
-- |
-- |
-- |
|
|
|
|
|
|
|
9. |
Profit
from Ordinary Activities before Tax (7+8) |
337.017 |
332.625 |
861.044 |
|
|
|
|
|
|
|
10. |
Tax
Expense |
109.000 |
108.000 |
279.000 |
|
|
|
|
|
|
|
11. |
Net
Profit from Ordinary Activities after Tax (9-10) |
228.017 |
224.625 |
582.044 |
|
|
|
|
|
|
|
12. |
Extraordinary
Item (net of expense) |
-- |
-- |
-- |
|
|
|
|
|
|
|
13. |
Net
Profit for the period (11-12) |
228.017 |
224.625 |
582.044 |
|
|
|
|
|
|
|
14. |
Paid-up
Equity Share Capital (Face Value of Rs.10/- Each) |
180.327 |
180.327 |
180.327 |
|
|
|
|
|
|
|
15. |
Reserves
Excluding Revaluation Reserve |
-- |
-- |
-- |
|
|
|
|
|
|
|
16. |
Basic and Diluted Earning Per
Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a)
Basic and diluted EPS before extraordinary items |
6.32 |
6.23 |
16.14 |
|
|
b)
Basic and diluted EPS after extraordinary items |
6.32 |
6.23 |
16.14 |
|
|
|
|
|
|
|
17. |
Public Shareholding |
|
|
|
|
|
-Number
of Shares |
12685878 |
12685878 |
12685878 |
|
|
-
Percentage of Shareholding |
35.17 |
35.17 |
35.17 |
|
|
|
|
|
|
|
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 |
23379425 |
23379425 |
23379425 |
|
|
-
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) |
64.83 |
64.83 |
64.83 |
|
Particulars |
3 Months ended on 31.12.2012 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
13 |
|
Disposed of during the quarter |
13 |
|
Remaining unresolved at the end of the
quarter |
Nil |
NOTES:
1.
The previous year figures have been
regrouped/recasted whereever necessary, to make them comparable.
2.
The above results were reviewed by the Statutory Auditors,
Audit Committee and were thereafter taken on record by the Board of Directors
at their meeting held on 04th day of February, 2013
SEGMENT-WISE REVENUE RESULTS AND CAPITAL EMPLOYED (PROVISIONAL) FOR THE
QUARTER ENDED 31.12.2012
Rs. In Millions
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2012 |
30.09.2012 |
31.12.2012 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
Yarn |
4677.131 |
4511.029 |
13365.812 |
|
|
|
Garments |
625.649 |
744.563 |
1866.315 |
|
|
|
Total |
5302.780 |
5255.592 |
15232.127 |
|
|
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
257.877 |
298.935 |
801.685 |
|
|
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
5044.903 |
4956.657 |
14430.442 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
Yarn |
469.776 |
506.263 |
1438.068 |
|
|
|
Garments |
71.382 |
84.961 |
196.346 |
|
|
|
Total |
541.158 |
591.224 |
1634.414 |
|
|
|
|
|
|
|
|
|
|
Less :Interest |
212.690 |
268.788 |
798.990 |
|
|
|
Less : Other Unallocable
Expenses and Extra Ordinary Items |
(8.549) |
(10.189) |
(25.620) |
|
|
|
Net Profit (+) /
Loss(-) before Tax |
337.017 |
332.625 |
861.044 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
Yarn |
13398.724 |
13684.527 |
13398.724 |
|
|
|
Garments |
1420.287 |
1498.224 |
1420.287 |
|
|
|
Other Unallocable net liabilities |
(8538.895) |
(9164.254) |
(8538.895) |
CMT REPORT (Corruption, Money Laundering
& Terrorism]
The Public Notice
information has been collected from various sources including but not limited
to: The Courts,
1] INORMATION ON DESIGNATED PARTY
No records 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 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.54.24 |
|
|
1 |
Rs.84.30 |
|
Euro |
1 |
Rs.71.36 |
INFORMATION DETAILS
|
Information
Gathered by : |
PDT |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.