MIRA INFORM REPORT
|
Report Date : |
18.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
S KUMARS NATIONWIDE LIMITED (w.e.f. April 12, 2000) |
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Formerly Known
As : |
S. KUMAR SYNFABS LIMITED |
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Registered
Office : |
B-2, 5th Floor, Marathon Nextgen, Off G.K. Marg, Worli,
Lower Parel (West), Mumbai – 400 013, |
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Country : |
India |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
28.09.1990 |
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Com. Reg. No.: |
11-058361 |
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Capital
Investment / Paid-up Capital : |
Rs. 3497.379 Millions |
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|
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CIN No.: [Company Identification
No.] |
L17120MH1990PLC058361 |
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|
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IEC No.: |
0392025728 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMS17736F |
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PAN No.: [Permanent Account No.] |
AAACS0767K |
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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
: |
Subject is engaged in
manufacturing (in house and outsourced) fabrics, ready to wear garments and
home textiles. |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ca (14) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Poor |
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Payment Behaviour : |
Delayed |
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Litigation : |
-- |
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Comments : |
Subject is an established company having a moderate track record. A consortium of 12 lenders may soon take legal action against the
subject and its defaulting marquee-suiting brand ‘Reid and Taylor’ in order
to recover overdue loans of Rs.30000.000 Millions. Subject has fell into the ‘Non Performing Assets (NPA)’ category in
the book of many banks. Its stock has fallen 75 percent in last one year. The company has not liquidated the liabilities of many banks despite
of several reminders, requests. Mr. J Balakrishnan (Director) and Dara D. Avari (Director) has
resigned from the board. Payment terms are delayed. The company has defaulted in its payment. The company can be considered for business dealings only on a safe and
secured 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 |
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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 |
ICRA |
|
Rating |
Term Loans : B |
|
Rating Explanation |
High risk of default |
|
Date |
March 2011 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Rating : A 4 |
|
Rating Explanation |
Minimal degree of safety and very high credit risk |
|
Date |
March 2011 |
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 : |
B-2, 5th Floor, Marathon Nextgen, Off G.K. Marg, Worli,
Lower Parel (West), Mumbai – 400 013, |
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Tel No.: |
91-22-24824500 |
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Fax No.: |
91-22-24931685 |
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E-Mail : |
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Website : |
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Corporate Office : |
‘Avadh’ Avadhesh Parisar, Mumbai – 400013, Maharashtra, India |
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Factory 1 : |
Menswear and Home Textiles Complex 3B, Industrial Area No. 2, |
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Tel. No.: |
91-7272-258025/ 258026/ 258027 |
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Fax No.: |
91-7272-252424 |
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Location : |
Leased |
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Factory 2: |
Spinning and Weaving Complex Chamunda Standard Mills, Balgarh, Dewas, |
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Tel. No.: |
91-7272-252891 |
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Fax No.: |
91-7272-253261 |
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Location : |
Leased |
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Factory 3: |
Total Wardrobe Solutions No. 121/52, Hosahalli Gollarahii, |
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Tel. No.: |
91-8040-610610 |
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Fax No.: |
91-8041-410057 |
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Location : |
Leased |
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Factory 4: |
High Value Fine Cotton (HVFC) and Home Textiles Jhagadia Industrial Estate, GIDC,
Ankleshwar, Gujarat, India |
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Tel. No.: |
91-264-5226774 |
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Location : |
Leased |
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Factory 5: |
Worsted Fabrics Complex Thandavapura, Nanjangud Taluka, Mysore District, Karnataka, West |
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Factory 11: |
Suit Factory Plot # 28C, Opp. Asian Paints Godown, Peenya, 2nd Phase,
(Near NTTF Circle), Bengaluru - 560 058. Karnataka, India |
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Factory 12: |
Plot No 825, GIDC, Jhagadia Mega Industrial Estate, PO, Jhagadia,
District Bharuch, Gujarat, India |
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Tel. No.: |
91-2645-236761 |
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Fax No.: |
91-2645-236132 |
DIRECTORS
As on 31.03.2012
|
Name : |
Dr. A. C. Shah |
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Designation : |
Chairman (up to 16th January, 2012) |
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Address : |
C – 12, |
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Date of Birth/Age : |
16.10.1932 |
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Qualification : |
Doctorate Degree in Economics |
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Date of Appointment : |
14.11.1994 |
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Name : |
Mr. Nitin S. Kasliwal |
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Designation : |
Director (Nominee of IDBI Bank Limited) |
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Address : |
Kanta Flat No.1, Little Gibbs Road, Malabar hill, Mumbai – 400 006, |
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Date of Birth : |
22.11.1960 |
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Qualification : |
Mater in Business administration from the European |
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Name : |
Mrs. Jyoti N. Kasliwal |
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Designation : |
Director |
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Address : |
Kanta Flat No.1, Little Gibbs Road, Malabar hill, Mumbai – 400 006, |
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Date of Birth : |
26.12.1960 |
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Qualification : |
Bachelors degree in arts (Economics) |
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Name : |
Mrs. Amita Narain |
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Designation : |
Director |
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Address : |
Flat No. 44, Jolly Maker Apartment, No. Il, 4th Floor,
Cuffe Parade, Mumbai - 400 005, |
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Date of Birth : |
06.07.1959 |
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Nominee Company : |
IDBI Bank |
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Name : |
Dr. Vinayshi Gautam |
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Designation : |
Director (up to 18th April
2012) |
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Address : |
9, West Avenue, Opposite
Directors House, lIT Campus, Hauz Khas, New Delhi – 110 016, India |
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Date of Birth : |
03.06.1946 |
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Nominee Company : |
EXIM Bank Limited |
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|
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|
Name : |
Mr. Anish Modi |
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Designation : |
Director (up to 12th November, 2011) |
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Address : |
314, Shalaka, |
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Date of Birth/Age : |
21.03.1966 |
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Qualification : |
Masters degree in Finance and Economics from London School of
Economics ( |
|
Date of Appointment : |
27.06.2007 |
|
Nominee Company : |
IDM Private Limited |
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|
Name : |
Mr. Denys Firth |
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Designation : |
Director |
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Address : |
Flat 301, La Hacidenda, 31 - 33, |
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Date of Birth/Age : |
26.05.1951 |
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Qualification : |
Bachelors Degree in Arts and in Physics (Oxon) from |
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Date of Appointment : |
09.10.2007 |
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Nominee Company : |
IDM Private Limited |
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|
Name : |
Mr. Jitender Balakrishnan |
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Designation : |
Director |
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Address : |
A - 1, Flat No. 12, 1st Floor, Tahna Residency, Opposite Siddhivinayak
Temple, Veer Savarkar Marg, Prabhadevi, Mumbai - 400 025, Maharashtra, India |
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Date of Birth/Age : |
08.05.1949 |
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Qualification : |
Post Graduate Diploma in Industrial Management from |
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Name : |
Mr. Suresh N. Talwar |
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Designation : |
Director |
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Name : |
Mr. M. Damodaran |
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Designation : |
Director |
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|
Name : |
Mr. Martin Henry |
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Designation : |
Director (up to 3rd January, 2012) |
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Address : |
The Old Rectory, Congerstone, Neneaton, Warwickshire, CVI 36LZ, |
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Date of Birth/Age : |
20.06.1933 |
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Qualification : |
Masters Degree in Arts from the |
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Date of Appointment : |
24.02.2005 |
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Name : |
Mr. Vijay Kalantri |
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Designation : |
Director |
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Address : |
2, Wahedna Appartment, 75, |
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Date of Birth/Age : |
05.01.1949 |
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Qualification : |
Government Commercial Diploma holder from Maharashtra State Technical
Board and has Diploma in Textile from Sasmira Institute of Textile |
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|
Name : |
Mr. Anil Channa |
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Designation : |
Deputy Managing Director |
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Address : |
71, Sagar Tarang Co-Operative Housing Society, 15, |
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Date of Birth/Age : |
01.09.1948 |
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Qualification : |
Bachelors in Techonlogy (Textile Technology) from Indian Institute of
Technology, |
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|
Name : |
Mr. Alexander Shaik |
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Designation : |
Director (Alternate to Denys Firth) |
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Address : |
Asia Debt Management Hong Kong Limited, 1008, |
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Qualification : |
Bachelors degree in Arts (Politics and Asian History) and Honors in
Law from The University of Melbourne, Australia |
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|
Name : |
Mr. Susheel Kak |
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Designation : |
Director (w.e.f. 12th November, 2011) |
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Nominee Company : |
IDM Private Limited |
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Name : |
Mr. Sujeet Bhale |
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Designation : |
Director (w.e.f. 18th April, 2012) |
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Nominee Company : |
EXIM Bank Limited |
KEY EXECUTIVES
|
Name : |
Mr. Nimesh S. Shah |
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Designation : |
Senior Vice President and Company Secretary |
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Name : |
Mr. K C Paliwal |
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Designation : |
General Mangier |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2013
|
Category of Shareholders |
No. of Shares |
Percentage of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
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|
|
|
|
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|
87292 |
0.03 |
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|
56310680 |
18.93 |
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|
56397972 |
18.96 |
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Total shareholding of Promoter and Promoter Group (A) |
56397972 |
18.96 |
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(B) Public Shareholding |
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|
|
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|
4400 |
0.00 |
|
|
16224577 |
5.46 |
|
|
44158969 |
14.85 |
|
|
60387946 |
20.31 |
|
|
|
|
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|
83015106 |
27.91 |
|
|
|
|
|
|
52982254 |
17.81 |
|
|
39488760 |
13.28 |
|
|
5131339 |
1.73 |
|
|
2537891 |
0.85 |
|
|
2551777 |
0.86 |
|
|
421 |
0.00 |
|
|
41250 |
0.01 |
|
|
180617459 |
60.73 |
|
Total Public shareholding (B) |
241005405 |
81.04 |
|
Total (A)+(B) |
297403377 |
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) |
297403377 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in manufacturing
(in house and outsourced) fabrics, ready to wear garments and home textiles. |
PRODUCTION STATUS (AS ON 31.03.2011)
a) Licensed capacity: Not applicable
b) Installed capacity:
i) Spinning: 38,564 Spindles
ii) Weaving: 344.13 lacs mtrs p.a. (As certified by the Management,
being a technical matter)
iii) Apparels: 11.4 lacs pcs. p.a. (Ready-to-wear Garments)
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Charter Haribhakti and Company Chartered Accountants ed Accountants |
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Solicitors |
Little and Company |
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Subsidiary: |
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Enterprises over which
Key Managerial Personnel are able to exercise significant influence: |
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Wholly Owned
Subsidiary |
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Wholly Owned
Subsidiary of SKNL International B.V. |
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Wholly Owned
Subsidiary of SKNL Global Holdings B.V. |
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Subsidiary of SKNL Global
Holdings B.V. |
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Wholly Owned
Subsidiary of SKNL (UK) Limited. |
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Wholly Owned Subsidiary
of SKNL Italy S.p.A. |
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Subsidiary of
Leggiuno S.p.A. |
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Subsidiary of SKNL
North America B.V. |
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Wholly Owned
Subsidiary of Remala Trading B.V. |
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Wholly Owned
Subsidiary of HMX Poland sp Z.o.o |
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Wholly Owned
Subsidiary of HMX Acquisition Corp. |
|
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
370000000 |
Equity shares |
Rs.10/- each |
Rs.3700.000 millions |
|
9000000 |
Preference Shares |
Rs.100/- each |
Rs.900.000 millions |
|
|
Total |
|
Rs.4600.000
millions |
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|
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|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
297403377 |
Equity Shares |
Rs.10/- each |
Rs. 2974.034 Millions |
|
|
|
|
|
|
527500 |
6% Cumulative Redeemable Preference Shares |
Rs.100/- each |
Rs. 52.750 Millions |
|
4705947 |
0.01% Redeemable Preference Shares |
Rs.100/- each |
Rs. 470.595 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 3497.379
Millions |
Note:
Reconciliation of the number of shares outstanding at the beginning and
at the end of the reporting period:
(Rs. In Millions)
|
Particulars |
6% Cumulative
Redeemable Preference Shares |
|
|
|
As on 31.03.2012 |
|
|
|
No. of Shares |
Amount |
|
Shares outstanding at the beginning of the year |
527500 |
52.750 |
|
Shares redeemed during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
527500 |
52.750 |
(Rs. In Millions)
|
Particulars |
0.01% Redeemable Preference Shares |
|
|
|
As on 31.03.2012 |
|
|
|
No. of Shares |
Amount |
|
Shares outstanding at the beginning of the year |
4705947 |
470.595 |
|
Shares redeemed during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
4705947 |
470.595 |
(Rs. In Millions)
|
Particulars |
Equity Shares |
|
|
|
As on 31.03.2012 |
|
|
|
No. of Shares |
Amount |
|
Shares outstanding at the beginning of the year |
284978377 |
2849.784 |
|
Shares issued during the year |
12425000 |
124.250 |
|
Shares outstanding at the end of the year |
297403377 |
2974.034 |
Details of Preference shareholders holding more than 5% in 6% Cumulative
Redeemable Preference shares
of the Company
|
Name of Shareholder |
As on 31.03.2012 |
|
|
|
No. of Shares held |
% of Holding |
|
Anjaneya Holdings Private Limited |
372500 |
70.62 |
|
SICOM Limited |
155000 |
29.38 |
Details of Preference shareholders holding more than 5% in 0.01%
Redeemable Preference shares of the Company
|
Name of Shareholder |
As on 31.03.2012 |
|
|
|
No. of Shares held |
% of Holding |
|
IDBI Limited |
306627 |
91.51 |
|
Indian Bank |
319800 |
6.80 |
Details of Equity shareholders holding more than 5% in equity shares of
the Company
|
Name of Shareholder |
As on 31.03.2012 |
|
|
|
No. of Shares held |
% of Holding |
|
Anjaneya Holdings Private Limited |
102515168 |
34.49 |
|
Copthall Mauritius Investment Limited |
17359445 |
5.84 |
Details of shares issued for consideration other than cash
|
|
Year (Aggregate No. of Shares) |
||||
|
Particulars |
2011-2012 |
2010-11 |
2009-10 |
2008-09 |
2007-08 |
|
0.01% Redeemable Preference Shares : |
|
|
|
|
|
|
Fully paid up pursuant to contract(s) without payment being received
in cash |
-- |
-- |
-- |
-- |
77267 |
Terms/rights
attached to equity shares
The Company has
only one class of equity shares having a par value of Rs. 10 per share. Each
holder of equity shares is entitled to one vote per share. The Company declares
and pays dividend in Indian rupees. The Dividend proposed by the Board of
directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting.
During the year
ended 31st March, 2012, the amount per share dividend recognised as
distribution to equity share holder was Re. 1
In the event of
liquidation of the Company, the holders of equity shares will be entitled to
receive remaining assets of the Company, after distribution of all preferential
amounts. The distribution will be in proportion to the number of equity shares
held by the Shareholders.
Equity Shares
allotted during the year
During the year
the Company has received Rs. 476.339 Millions from Sansar Exim Private
Limited., a promoter group company, being the balance 59% of the subscription
amount towards 1,24,25,000 Number of warrants of Rs. 64.53 each aggregating Rs.
801.785 Millions with an option to convert into equal nos. of Equity shares of
Rs. 10/- each at a premium of Rs. 54.53 per share within 18 months from the
date of allotment, which was issued on preferential basis and allotted, in its
meeting held on 15th June, 2010.
The investor has
opted for the conversion of above Equity warrants and the Company has allotted
1,24,25,000 nos. of Equity Shares of Rs. 10/- each at a premium of Rs. 54.53
per share on 13th December, 2011 against receipt of full amount.
Terms of
Redemption of Preference shares
6% Cumulative
Redeemable Preference Shares redeemable by 1st October, 2013.
0.01% Redeemable
Preference Shares amounting to Rs. 7.950 Millions is to be redeemed @ 25% in each
year between October 16 to September 20.
0.01% Redeemable
Preference Shares amounting to Rs. 462.643 Millions has been fully settled by
the Company as per the Corporate Debt Restructuring exit approval, by keeping
in Fixed Deposit with the Preference Shareholders an amount equivalent to the
Net Present Value of such Preference Shares. However, these Preference Shares
are continued to be shown as Preference Shares not redeemed and the amount of
such Fixed Deposits which are Rs. 269.329 Millions (Previous Year Rs. 245.393
Millions), assigned to the Preference Shareholders, continue to be shown on the
assets side in Note No 14 - other non-current Asset.
Shares reserved
for issue under options
The Company has
issued stock options to the permanent employees exercisable into 19,11,000
numbers of equity shares of the Company under ‘Employees Stock Option Scheme
2007 - Series A’ (“ESOP 2007”). Each option when exercised would be convertible
into one equity share of a face value of Rs. 10 each fully paid-up. The
important features of the ESOP scheme are as follows:
|
|
Parameters/Terms |
Explanation |
||
|
I |
Vesting period |
Minimum period
of one year and a maximum period of five years from the date of grant i.e
31.010.2007 |
||
|
II |
Vesting schedule |
The actual vesting schedule of options will
be as follows: |
||
|
|
|
Year |
Period and Date |
% of Vesting |
|
|
|
1st Year |
31.10.2007 to 30.10.2008 |
30% |
|
|
|
2nd Year |
31.10.2008 to 30.10.2009 |
30% |
|
|
|
3rd Year |
31.10.2009 to 30.10.2010 |
40% |
|
III |
Exercise price |
30% discount on the prevailing market price of Rs.128/- of the shares
as on the date prior to the date of the Compensation Committee resolution. |
||
|
IV |
Exercise Period |
Exercise period will be three years from the date of vesting. |
||
|
V |
ESOP Price per share |
Rs. 89.60 |
||
|
|
Particulars |
As on 31.03.2012 |
|
A |
Number of Options outstanding at the beginning of the year |
1486900 |
|
B |
Options exercised |
NIL |
|
C |
Total number of shares arising as a result of exercise of Options |
NIL |
|
D |
Options Lapsed/cancelled |
575080 |
|
E |
Money realised by exercise of options |
NIL |
|
F |
Total number of options in force at the end of year |
911820 |
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 |
3497.379 |
3373.129 |
3128.967 |
|
|
2] Share Application Money |
0.000 |
325.446 |
134.035 |
|
|
3] Reserves & Surplus |
12076.972 |
11425.886 |
7511.734 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
15574.351 |
15124.461 |
10774.736 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
23693.080 |
21728.055 |
22631.346 |
|
|
2] Unsecured Loans |
563.701 |
526.986 |
1026.716 |
|
|
TOTAL BORROWING |
24256.781 |
22255.041 |
23658.062 |
|
|
DEFERRED TAX LIABILITIES |
396.020 |
269.235 |
170.652 |
|
|
|
|
|
|
|
|
TOTAL |
40227.152 |
37648.737 |
34603.450 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
10912.541 |
7641.895 |
6513.916 |
|
|
Capital work-in-progress |
236.363 |
545.121 |
5640.651 |
|
|
|
|
|
|
|
|
INVESTMENT |
5168.658 |
5041.758 |
4256.881 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
11621.045
|
9406.981 |
7259.387
|
|
|
Sundry Debtors |
14937.603
|
11887.253 |
10296.335
|
|
|
Cash & Bank Balances |
108.000
|
207.684 |
462.582
|
|
|
Other Current Assets |
759.212
|
2497.143 |
0.000
|
|
|
Loans & Advances |
7914.692
|
8482.033 |
4267.538
|
|
Total
Current Assets |
35340.552
|
32481.094 |
22285.842 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2573.909
|
816.666 |
789.547
|
|
|
Other Current Liabilities |
8010.264
|
6806.760 |
1652.253
|
|
|
Provisions |
846.789
|
437.705 |
1652.040
|
|
Total
Current Liabilities |
11430.962
|
8061.131 |
4093.840 |
|
|
Net Current Assets |
23909.590
|
24419.963 |
18192.002 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
40227.152 |
37648.737 |
34603.450 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
35108.294 |
27576.204 |
21548.212 |
|
|
|
Other Income |
20.068 |
35.524 |
47.468 |
|
|
|
TOTAL (A) |
35128.362 |
27611.728 |
21595.680 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials consumed |
25884.175 |
20477.466 |
|
|
|
|
Changed in inventories of finished goods and work in progress |
(1329.110) |
(1180.923) |
|
|
|
|
Employee benefit Expenses |
884.464 |
575.116 |
|
|
|
|
Other Expenses |
1938.827 |
180.50.26 |
|
|
|
|
TOTAL (B) |
27378.356 |
21676.685 |
17455.602 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7750.006 |
5935.043 |
4140.078 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
4035.550 |
3189.126 |
2307.738 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
3714.456 |
2745.917 |
1832.340 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
922.193 |
740.026 |
417.121 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2792.263 |
2005.891 |
1415.219 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
996.576 |
278.856 |
354.195 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
1795.687 |
1727.035 |
1061.025 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1742.100 |
504.800 |
0.000 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Debenture Redemption
Reserve |
20.300 |
95.000 |
22.515 |
|
|
|
Balance in Restructured Financial
Cost written Off |
1431.000 |
0.000 |
533.713 |
|
|
|
Provision for Preference Dividend |
3.200 |
53.500 |
0.000 |
|
|
|
Tax on Preference Dividend |
0.500 |
8.900 |
0.000 |
|
|
|
Proposed Equity Dividend |
297.400 |
285.000 |
0.000 |
|
|
|
Tax on Proposed Equity
Dividend |
49.400 |
47.300 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
1736.000 |
1742.100 |
504.797 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
669.253 |
685.046 |
109.039 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
2.286 |
0.864 |
0.000 |
|
|
|
Stores & Spares |
2.383 |
5.267 |
0.000 |
|
|
|
Finished fabrics |
522.938 |
2.138 |
7.850 |
|
|
|
Capital Goods |
1.330 |
323.233 |
71.483 |
|
|
TOTAL IMPORTS |
528.937 |
331.502 |
79.333 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
6.21 |
6.57 |
4.49 |
|
|
|
Diluted |
6.20 |
6.25 |
4.32 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
8843.200 |
8288.300 |
8337.700 |
|
Total Expenditure |
6963.400 |
6716.600 |
6951.200 |
|
PBIDT (Excl OI) |
1879.800 |
1571.700 |
1386.500 |
|
Other Income |
0.000 |
6.800 |
7.800 |
|
Operating Profit |
1879.800 |
1578.500 |
1394.300 |
|
Interest |
1074.400 |
1269.800 |
1291.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
805.400 |
308.700 |
102.600 |
|
Depreciation |
315.200 |
306.600 |
311.700 |
|
Profit Before Tax |
490.200 |
2.100 |
(209.100) |
|
Tax |
181.500 |
8.200 |
(59.000) |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
308.700 |
(6.100) |
(150.100) |
|
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 |
308.700 |
(6.100) |
(150.100) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total Income |
(%) |
5.11
|
6.25 |
4.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.95
|
7.27 |
6.57 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
7.90
|
6.18 |
6.35 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.13 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.58
|
1.47 |
2.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
3.09
|
4.03 |
5.44 |
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
|
PARTICULARS |
31.03.2012 (Rs.
in Millions) |
31.03.2011 (Rs.
in Millions) |
|
from Banks (in
Foreign Currency) (Current maturities
of the above loan amounting to Rs. 125.678 Millions (P.Y. Rs.69.525 Millions)
is shown in Note 9 - Other Current Liabilities) |
28.959 |
73.828 |
|
Funded Interest
Term loans from Banks (in
Foreign Currency) |
57.342 |
53.158 |
|
Loans and advances
from Subsidiary |
400.000 |
400.000 |
|
Loans and
advances from related party (Interest free
loan received from Anjaneya Holdings Private Limited, repayable on demand) |
77.400 |
0.000 |
|
|
|
|
|
Total |
563.701 |
526.986 |
|
Unsecured
Term Loan of Rs.28.959 Millions with
Current Maturities of Rs.125.678 Millions is repayable in 20 EQI starting from
January 2009 to October 2013 and applicable interest rate is 4.5% p.a. There
is delay in repayment of loan amounting to Rs. 75.198 Millions for a period of one to six months. Unsecured
Funded Interest Term Loan of Rs.57.342 Millions is
repayable in 5 EQI starting from October 2013 to October 2014 and applicable
interest rate is 2% p.a. Unsecured
Interest Free Loan of Rs.400.000 Millions from
Company's Indian Subsidiary is repayable after complete repayment of Secured
Loan from Subsidiary mentioned in point 3.5 above i.e. after June 2014. Non-Convertible Debentures (NCDs) issued to India Debt Management Private Limited. with Current Maturities of Rs.1507.881 Millions are secured by first pari passu charge on the all the Fixed Assets of the Company and on all the Fixed Assets of Company's Indian Subsidiary, simple mortgage on the property situated at Mehsana, Gujarat, pledge of major promoter's shares held in the Company, pledge on entire shareholding (present and future) held by the Company in Sansar Holding Inc., pledge and guarantee in respect of shares held by Company in Brandhouse Retails Limited., non-disposal undertaking for "Reid and Taylor" trade mark and first pari passu charge on brands held by Company except "S.Kumars" brand. Balance NCDs are due for redemption on 30th September, 2012 and having effective rate of interest of 19.0% p.a. |
||
YEAR IN
RETROSPECT
The
financial highlights reflect a continued and steady growth for the Company at
all levels. The Company's performance is to be viewed against the background of
a slowdown in the world economy and a hesitantly progressing economy on the
Indian front. The Company has achieved and demonstrated its ability to deliver
substantial performance through variable and challenging environments which
reflects upon the strength and diversity of its business model. The Company has
been able to develop its reputation and image across a number of products and
brands in the domestic and international markets. Operating in various product
categories and in multiple markets ensures the Company's consistent growth.
The Company
manufactures worsted and viscose blended suitings, yarn dyed shirtings,
workwear fabric, home textiles and ready-to-wear garments. The Company has
achieved consistent revenue growth with satisfactory profit margins -
consolidated Sales rose by 22.7% over the previous year and Consolidated Net
Profit after Minority interest recorded a 19.3% growth. This is despite not so
favourable market conditions and a sluggish economic climate. This is
essentially because the Company is present in all product categories - Fabrics,
Apparels, Home Textiles, and has brands catering to different socio-economic
segments. The Company is a customer-led, design-centric player with focused
brands for each market segment and having manufacturing units in India, Italy,
UK, USA and Canada. The Company's strength is derived from diversity in
products and markets. Furthermore, the Company historically has a multi-format
distribution network.
Because of
the extension of fabrics brands into garments and launch of new garment brands,
the share of Ready-to-Wear in total revenues is gradually increasing. In the
Home Textiles market, however, the growth is stunted. The Baruche Shirt
division continued to perform better. Luxury Textiles also grew smartly. On the
international front, the progress of Leggiuno in Italy and HMX in USA has
improved inspite of the sluggish economies in Europe and USA.
In the
overall scheme of things, the Sales contribution of SKNL (Standalone) was 55%,
RTIL 24% and International Business 21% while proportion of EBIDTA was 57%, 38%
and 5% respectively.
The
performance of Belmonte Uniformity Division was at par compared to the previous
year. The sharp rise in input costs was offset by an increase in selling price.
The Company was able to maintain its market share.
Belmonte
Ready-to-Wear is now well-positioned in the fashion business. It delivers high
quality products at a reasonable price and in line with changing trends. With
more and more top-of-the-line international brands entering the Indian market,
the competition in the branded apparel industry continues to be getting sharper
by the day. However, their in-house teams of designers track national and international
trends to create innovative fashionable products that customers would relate
and they are able to capitalize on the rebound in customer confidence.
The TWS
factory in Bangalore is making shirts and trousers largely for domestic market.
The Suit factory which is relatively new has focused and developed customers in
the domestic market with the brands and also institutional orders.
In the
Luxury Textiles division, in order to neutralize the steep increase in wool
prices, selling prices were suitably increased. New and innovative products
were developed and introduced such as Showcase suiting fabric, pure wool
suiting with Jacquard designs, designing with Laser engraving, etc.
The
International Business segment includes HMX of USA, Leggiuno of Italy and DKNY
related operations in the U.K. International acquisitions facilitate transfer
of technical know-how for high value shirting and garmenting.
CURRENT
BUSINESS OUTLOOK AND PLANS
'Belmonte'
in the Consumer Textiles segment and 'Reid and Taylor' in the Luxury Textiles
segment remain key contributors to the overall performance of the Company.
Going
forward, the management is confident about the Company's continued progress.
Strong synergies between domestic and international business through 'back-end
front-end' model, enhanced distribution network, a comprehensive portfolio of
45 brands addressing all demographic segments, vertically and laterally
integrated business, seamless supply chain and presence across the value chain
have provided for a strong foundation to step up growth over the coming years.
They
anticipate healthy demand for the textiles and apparel industry in India driven
by growth in organized retailing, increasing consumerism, expanding middle
class and heightened brand consciousness among the youth. We plan to expand the
retail network through exclusive brand outlets largely in the tier 1 and 2
cities. The Company will also increase presence of its products in Large Format
Stores in the current financial year.
The Company
is engaged in capacity expansion to keep up with the increasing demand for its
products. Expansion of weaving and finishing capacity is under implementation
and suit factory has been set up and part production has commenced. This will
help cater to the increasing demand in the Ready-to-Wear segment.
Luxury
Cotton division is growing at a rapid pace registering noticeable growth in
revenues and profitability with improved assets utilization and productivity
levels. Additionally, the 'World Player' brand which addresses the economy
segment, witnessed strong traction. They anticipate significant volumes from
the brand as the market penetration and operational efficiencies improve. Plans
for the nationwide unveiling of Kruger, a premium casual brand, have been
progressing well with the launch expected soon.
Raw material
prices are expected to be stable although at higher levels. The outlook for the
current year looks bright as more Corporates as well as Government institutions
are looking for reliable and good brands for their consumption. They are poised
very favourably in the garment and apparel space given the depth and diversity
of their operations.
MANAGEMENT
DISCUSSION AND ANALYSIS
INDUSTRY
STRUCTURE AND DEVELOPMENTS
The year
2011-12 was again a very challenging year both globally and domestically. The
world output growth dropped to 3.9% in 2010-11 from 5.3% during 2009-10, mainly
due to the depressed performance of European countries on account of continued
and protracted Sovereign Debt crisis. India witnessed moderate growth, high
inflation, a slowdown in reforms and heightened concerns around governance.
The
country's annual GDP growth has been dragged down to 6.5%, the lowest since
2002-03 (previous year 8.4%). The slowdown in manufacturing to 2.5% for the
year, compared to 7.6% for the previous year is particularly depressing. The
fiscal deficit for 201112 was 5.9% higher than the estimated 4.6%. Economists
have attributed the fall this time to a poor performance in manufacturing,
mining and construction, a high interest rate regime, environmental issues,
land acquisition problems and an uncertain global economy. Industry captains
believe that the reform process should be given top priority, subsidies should
be cut and FDI in various sectors be allowed.
The
indifferent business sentiment has been keeping the private investment in the
country low. During this period, it is extremely important to restore the
confidence levels of investors. And for this the government needs to ensure
that the reform process is continuous and very comprehensive. The Monetary
Policy stance by the RBI during the year 2011-12 continued to remain tight,
aiming at controlling inflation and containing inflationary expectations.
While the
global growth rate is likely to remain subdued, the world economy is expected
to continue on the path of recovery. Industry Captains are still positive about
the India story and have ranked the country as the fourth most favourable
nation for overall growth prospects in the next 12 months, just behind China,
the US and Brazil. The domestic market opportunities remain large.
Indian
economy has been immensely benefited by the Textile sector's contribution to
the growth of manufacturing sector through continued innovation and
modernization. The sector has vast growth potential in view of its inherent
strengths of strong raw material base and traditional craftsmanship and
designing skills. Indian Textiles and Clothing Industry, is one of the
mainstays of the national economy. The profile of the Indian consumer is
changing because of rapid urbanization, changing preferences due to rise in
income and a young workforce.
FINANCIAL
PERFORMANCE
The
Company's performance is consistently on a growth trajectory. It continues to
maintain healthy financial ratios with conservative leverage providing
flexibility for expansion.
CONTINGENT
LIABILITIES:
a. Guarantees:
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
|
i) In respect of
concessional custom duty availed under EPCG Scheme (Covered by Bank
Guarantee) |
2.250 |
|
ii) Guarantees
extended by the banks based on the Company’s counter guarantees |
283.674 |
|
iii) Corporate
Guarantee extended by the Company to the lenders of Shree Maheshwar Hydel
Power Corporation Limited |
2829.400 |
|
iv) Corporate
Guarantees given to the lenders of Reid and Taylor (India) Limited. and
SKNL International B.V. - Subsidiary Company |
9668.169 |
|
v) Corporate
Guarantees given to the lenders of Brandhouse Retails Limited. |
1862.740 |
b. Claims not
acknowledged as debts:
(Rs. in millions)
|
PARTICULARS |
31.03.2012 |
|
i) Income Tax,
Sales Tax, Service Tax and Entry Tax demand - disputed in appeal |
332.603 |
|
ii) Demand Order
of Central Excise Authorities disputed by the Company |
13.787 |
|
iii) Labour matter
pending in court |
14.490 |
|
iv) Civil matter
pending in court |
0.256 |
|
v) Writ petition filed before hon’ble High
Court, Indore against the order of industrial court of Industrial
Court |
1.419 |
|
vi) Matter in respect
of Gratuity pending before controlling authorities |
0.320 |
c. Estimated amount
of contracts remaining to be executed on capital account and not provided for
(net of advance), as certified by the management s Rs.136.709 Millions.
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE
QUARTER ENDED 31ST DECEMBER, 2012.
(Rs.
In Millions)
|
Sr. No. |
Particulars |
Current 3 months ended 31.12.2012 Unaudited |
Preceding 3 months ended 30.09.2012
Unaudited |
Year to date for the Current period
ended 31.12.2012 Unaudited |
|
' |
a) Net Sales/Income from Operations |
8337.500 |
8286.200 |
25463.000 |
|
|
b) Other Operating Income |
0.200 |
2.100 |
3.400 |
|
|
Income
from Operations |
8337.700 |
8288.300 |
25466.400 |
|
: |
Expenditure |
|
|
|
|
|
a) (lncrease)/decrease in stock in trade and
work-in-progress |
3.800 |
21.300 |
(1156.400) |
|
|
b)
Consumption of Raw materials |
6485.100 |
6170.000 |
20220.300 |
|
|
c) Employees cost |
124.200 |
189.000 |
500.900 |
|
|
d)
Depreciation |
311.700 |
306.600 |
933.500 |
|
|
e) Misc Expenditure written off |
- |
- |
- |
|
|
f) Other expenditure |
338.100 |
336.300 |
1066.400 |
|
3 |
Total
Expenditure |
7262.900 |
7023.200 |
21564.700 |
|
|
Profit
from Operation before Other Income. Interest and Exceptional Items (1-2) |
1074.800 |
1265.100 |
3901.700 |
|
4 |
Other
Income |
7.800 |
6.800 |
17.400 |
|
5 |
Profit
before Interest and Exceptional Items (3+4) |
1082.600 |
1271.900 |
3919.100 |
|
6 |
Less:
Interest |
1291.700 |
1269.800 |
3661.500 |
|
" |
Profit
after Interest but before Exceptional Items (5-6) |
(209.100) |
2.100 |
257.600 |
|
8 |
Add:
Exceptional Items |
- |
- |
- |
|
9 |
Profit
(+)/Loss(-) from Ordinary Activities before tax |
(209.100) |
2.100 |
257.600 |
|
10 |
Tax
expenses |
(59.000) |
8.200 |
105.100 |
|
il |
Net Profit
(+)/Loss(-) from Ordinary Activities after tax (9 10) |
050.100) |
(6.100) |
152.500 |
|
12 |
Extraordinary
Items (net of tax expenses) |
- |
- |
- |
|
13 |
Net Profit
(+)/Loss(-) for the period (11-12) |
(50.100) |
(6.100) |
152.500 |
|
14 |
Paid-up
Equity Share Capital |
2974.000 |
2974.000 |
2974.000 |
|
|
(Face
Value of Rs.10 each) |
|
|
|
|
15 |
Reserves
excluding Revaluation Reserves |
|
|
|
|
16 |
Earnings
Per Share (EPS) |
|
|
|
|
|
a) Before Extraordinary items |
|
|
|
|
|
- Basic (Rs.J |
(0.53) |
(0.03) |
0.49 |
|
|
- Diluted
(Rs.) |
(0.53) |
(0.03) |
0.49 |
|
|
b) After Extraordinary items |
|
|
|
|
|
- Basic
(Rs.) |
(0.53) |
(0.03) |
0.49 |
|
|
- Diluted
(Rs.) |
(0.53) |
(0.03) |
0.49 |
|
17 |
Aggregate
of Public Shareholding |
|
|
|
|
|
- No. of Equity Shares |
219,255.405 |
164.345.016 |
219.255,405 |
|
|
-
Percentage of Shareholding |
73.72% |
55.26% |
73.72% |
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
|
a) Pledged /
Encumbered |
|
|
|
|
|
- Number of Shares |
69280888 |
132812759 |
69280888 |
|
|
- Percentage of Shares (as a %
of total shareholding of promoter and promoter group) |
88.65% |
99.82% |
88.65% |
|
|
- Percentage of Shares (as a %
of total share Capital of the Company) |
23.30% |
44.66% |
23.30% |
|
|
b) Non-Encumbered |
|
|
|
|
|
- Number of Shares |
8867084 |
245602 |
8867084 |
|
|
- Percentage of Shares (as a % of
total shareholding of promoter and promoter group) |
11.35% |
0.18% |
11.35% |
|
|
- Percentage of Shares (as a %
of total share Capital of the Company) |
2.98% |
0.08% |
2.98% |
NOTES
For a proper
appreciation of the financial results please read "Consolidated"
results.
The products
of the Company include Uniforms, Work-wear fabrics and Blended suitings (P/V)
marketed under "S.Kumars" and "Belmonte"
brands. High Value
Fine Cotton shirting fabrics under "Baruche" brand, Home Textiles under "'Carmichaelhouse"
brand and
Ready-to-Wear Garments sold under "Belmonte" and "WorldPlayer"
brands.
During the
quarter the Company has received following complaints from its investors:-
|
Previous
complaints |
Received
during the quarter |
Replied |
Complaints
Pending |
|
NIL |
28 |
28 |
NIL |
The Company
operates in one segment only - Textiles.
Figures have
been regrouped / reclassified wherever necessary.
*For the
loans availed by the Company, promoter shares have been pledged as additional
collateral to the lenders of the Company. This is over and above primary
charges created on fixed assets and current assets of the Company, which itself
are sufficient to cover the borrowings of the Company.
The
financial results of the Company for the quarter ended 31st December, 2012 have
been reviewed by the Audit Committee and taken on record by the Board of
Directors at its meeting held on 14th February, 2013.
The Limited
Review of the results has been carried out by the Statutory Auditors of the
Company.
FIXED ASSETS
Tangible Assets
- Land
- Freehold
- Leasehold
- Buildings
- Plant and Equipment
- Furniture and Fixtures
- Vehicles
- Office equipment
- Leasehold Improvements
- Computers
Intangible Assets
- Computer software
WEBSITE DETAILS
PRESS RELEASES
UCO BANK LABELS REID AND
TAYLOR INDIA AS DEFAULTER
MAY 9, 2013
KOLKATA: Reid and
Taylor, the textile brand promoted by matinee idol Amitabh Bachchan and run by Nitin
Kasliwal, is being pursued by the state-run Uco Bank for recovering more than
Rs 1000.000 Millions of loan after the company defaulted. The lender has warned
anyone dealing with the company, or Kasliwal to be aware of its intentions.
Uco Bank has classified
the account as non performing and has slapped a loan recall notice without
getting any response from the company.
"In spite of
repeated reminders, requests and persuasions, the borrower has not liquidated
the liabilities of the bank," the lender said in the public notice.
"We are now
awaiting to see how the borrower responds to the public notice," Uco
general manager for recovery Anil Kumar told ET. "Thereafter we will take
all possible legal steps to recover the dues."
Uco was one of
the many lenders to Reid and Taylor (India) Limited but it was not part of any
consortium. At present, its outstanding liability stands at Rs 1100.000
Millions.
Reid and Taylor's
promoter S Kumars Nationwide Limited (SKNL), led by Nitin Kasliwal, was
reportedly planning to sell a controlling stake in the company and deleverage
the balance sheet, after several failed attempts to list the Reid and Taylor
India business through a Rs 10000.000 Millions initial public offer. The
promoters were facing a cash crunch after fifteen years of launching it in
India. Had the deal got through successfully, the money would have been used to
pay off the company's debt. As per SKNL's annual report for 2011-12, the
consolidated debt stood at Rs 43720.000 Millions out of which Reid and Taylor
India alone contributed one-fourth of it at Rs 11030.000 Millions.
The borrower took
the loan against hypothecation of movable assets and mortgage of the immovable
assets of it. The company chairman and managing director Kasliwal stood as a
guarantor.
"This
information is published in the interest of the banks, financial institutions
and the public at large to exercise caution while dealing with the above named
director, guarantor and the company in any manner whatsoever particularly the
assets which are hypothecated and mortgaged to the bank," the bank said in
the notice.
UCO BANK 'NAMES AND SHAMES' S KUMAR'S CMD KASLIWAL
MAY 9, 2013
India Inc’s leading lights are used to seeing their
photographs in newspapers. But it’s probably the first time a bank in India has
published the photograph of a prominent industrialist in a public notice,
terming him a defaulter.
In an advertisement in prominent dailies, UCO Bank has issued a notice against
Nitin Kasliwal, chairman and managing director of S Kumars Nationwide Limited
(SKNL), who is the guarantor of a Rs 1100.700 Millions loan taken by Reid and Taylor, the fabric and apparel arm
of SKNL. The advertisement carries Kasliwal’s picture as well.
The move, bankers said, was part of the “name and shame” policy to make
borrowers pay their dues. State Bank of India took the lead recently by
publishing photographs and other details of five wilful loan defaulters who had
taken export credit of Rs 0.300 Millions
each and had not paid up. But the issue was much smaller than Reid and
Taylor’s.
Kolkata-based UCO Bank has already classified the loan as non-performing asset
(NPA). “In spite of repeated reminders, request and persuations, the borrower
has not liquidated the liabilities of the bank,” UCO said in the notice, adding
the ad had been issued in public interest. The notice warns the public at large
to “exercise caution while dealing with the said director, guarantor and
company in any manner”.
A UCO bank official said the company had not been responding to reminders to
pay the dues. “Giving notice along with the photo of guarantor is an extreme
step after using all normal means to ensure timely servicing of loans,” the
official said.
Meanwhile, two non-executive directors on the board of SKNL, J Balakrishnan and
Dara D Avari, resigned from the board. A top official with IDBI Bank, which
also has exposure to Reid and Taylor, said there were delays in repayment, but
it was a performing account as of now. “The fact that one bank has gone public
with disclosure will affect the liquidity of the company further,” he said.
Bank of India, another lender to the company, said all banks would go in for a
coordinated action on the issue.
Corporation Bank CMD Ajai Kumar said it (Reid and Taylor) was a non-performing
asset and the bank was initiating legal action for recovery of Rs 750.000 Millions exposure.
Mumbai-headquartered Reid and Taylor India and its fabrics factory located at
Nanjangud, Karnataka, took loan from the Mumbai corporate branch of UCO Bank
against hypothecation of 35 acres of land in Nanjangud and on the personal
guarantee of Kasliwal, the bank said in the notice.
An email to Kasliwal did not elicit any response.
Reid and Taylor which once had Bollywood superstar Amitabh Bachchan as its
brand ambassador, had plans to go for an initial public offering of Rs
10000.000 Millions in
2010-11, but the plan had to be shelved due to the poor market situation.
According to recent reports, SKNL — the stock price of which has fallen 84 per
cent from Rs 43.50 on January 4, 2010, to Rs 6.83 now — plans to raise about Rs
6000.00 Millions by selling
shares of its Reid and Taylor arm through a qualified institutional placement.
S KUMARS NATION DIRECTOR
RESIGNS
MAY 08, 2013
S Kumars Nationwide Limited
has informed BSE that the resignation of Shri. Jitender Balakrishnan as
director from the board of the company
IL AND FS FINANCIAL SERVICES SELLS 18 LAKH SHARES OF S KUMARS
MAY 02, 2013
On April 30, ILandFS Financial Services sold 18 lakh equity shares of S Kumars Nationwide at Rs 7 on the NSE.
On Tuesday, the share closed at Rs 6.86, down Rs 0.58, or 7.80 percent. It has touched a 52-week low of Rs 6.76.
The company's trailing 12-month (TTM) EPS was at Rs 6.06 per share. (Dec, 2012). The stock's price-to-earnings (P/E) ratio was 1.13. The latest book value of the company is Rs 50.61 per share. At current value, the price-to-book value of the company was 0.14. The dividend yield of the company was 14.58 percent.
12 S KUMARS LENDERS MULL LEGAL ACTION FOR DEFAULT
MAY 9, 2013
A consortium of 12 lenders to cash-strapped apparel and fabrics major S Kumars Nationwide Limited (SKNL) may soon take legal action against it and its defaulting marquee-suiting brand Reid and Taylor in order to recover overdue loans of Rs 30000.000 Millions, said a banker familiar with the matter.
A consortium of 12 lenders to cash-strapped apparel and fabrics major S Kumars Nationwide Limited (SKNL) may soon take legal action against it and its defaulting marquee-suiting brand Reid and Taylor in order to recover overdue loans of Rs 30000.000 Millions, said a banker familiar with the matter.
The consortium includes State Bank of India, ICICI Bank, Corporation Bank,
Punjab National Bank and IDBI Bank.
While the S Kumars account continues to remain as a standard one (and not a
non-performing asset or NPA) in the books of a few banks, it has slipped into
the NPA category at others, another banker in the consortium told dna.
The timeline for the expected legal action, therefore, is still to be decided.
SKNL has been unable to go ahead with its expansion plans. It has not succeeded
in getting Reid and Taylor listed yet. Its stock has fallen 75% in the last one
year.
Corporation Bank, which has an exposure of Rs 750.000 Millions to SKNL, will initiate action
against SKNL soon, said the bank’s CMD Ajai Kumar after announcing the annual
results on Wednesday.
The consortium, led by Bank of India, had extended working capital and project
loans to SKNL against collateral of certain fixed and current assets. The
consortium also has some SKNL shares pledged with it, apart from a personal
guarantee from promoter and MD Nitin Kasliwal.
Uco Bank, in an effort to recover dues more than Rs 1100.000 Millions from Reid and Taylor, published a
public notice in newspapers on Wednesday, asking the promoter to repay the
outstanding debt.
“Despite repeated reminders, requests and persuasions, the said borrower has
not liquidated the liabilities of the bank,” Uco Bank said in the notice.
Uco Bank has 35 acres and 16 guntas of land at Nanjangud in Karnataka and
personal guarantee of Kasliwal as collateral.
ROC LOOKING INTO COMPLAINTS AGAINST S KUMARS
SEPTEMBER 3,
2012
The Serious Fraud Investigation Office (SFIO) has received complaints about alleged violation of corporate governance and other norms by textile major S Kumars Nationwide and the matter is being examined by the Registrar of Companies, Ministry of Corporate Affairs said today.
The Office of RoC, Mumbai, is examining the reply from the company and any further action in this matter would be taken after receipt of its report, Minister of State for Corporate Affairs R P N Singh said in reply to the Rajya Sabha.
Asked whether SFIO has received any complaints regarding violations of corporate governance and "myriad transactions involving demergers etc" by S Kumars Nationwide Limited (SKNL), the minister replied in affirmative.
"The complaint was taken up by the Office of the Registrar of Companies (RoC), Mumbai, who has reported that the reply of the company is under examination. Further action in the matter will be taken on the receipt of report from ROC Mumbai," Singh said.
The minister, however, said that SFIO itself is not investigating the issues related to misrepresentation in corporate reporting and violation of various sections of Companies Act by SKNL.
Provisions have been made in the Companies Bill, 2011 to given SFIO powers to investigate into the affairs of the company through a relevant clause.
An SKNL spokesperson said the company had received a letter from RoC, Mumbai asking for comments and clarifications on certain issues raised by an individual. "The matters raised by the individual are frivolous and baseless . The company has already replied in detail to the RoC. SKNL follows best practices in corporate governance and believes that its clarifications and stance will more than adequately address any issues raised and forwarded to the company. There is no other review being conducted by any government/regulatory authority with regard to this matter.”
S KUMARS' PROMOTERS TO OFFLOAD CONTROLLING STAKE IN REID AND TAYLOR:
REPORT
MAR 25, 2013
The cash strapped promoters of S Kumars Nationwide are reportedly planning to offload controlling stake in Reid and Taylor and deleverage the balance sheet. This move comes after several unsuccessful attempts to list the Reid and Taylor India business through an Rs 10000.000 Millions IPO.
The company has been suffering from its own set of problems which got compounded by the high debt piled up in its US arm HMX Acquisition Corp.
S Kumars Nationwide is one of India’s leading textile and Apparel Company with expertise in multi-fiber manufacturing. The company has extended its presence in multiple product categories from Fabrics to Apparels and Home Textiles.
S KUMARS PLANNING TO SELL REID AND TAYLOR
MAR 25, 2013
S Kumars Nationwide shares surged over 5% on reports that the company was planning to sell a controlling stake in its subsidiary Reid and Taylor.
According to reports, this move comes after several unsuccessful attempts to list the Reid and Taylor India business through a Rs 10bn IPO.
Reid and Taylor India is an unlisted subsidiary of SKNL.
If the deal gets through, the money will be used be used to significantly bring down the company's leverage, says report.
The formal process was expected to be launched in the coming weeks, says media reports.
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.54.8 |
|
|
1 |
Rs.83.66 |
|
Euro |
1 |
Rs.70.57 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
1 |
|
--LIQUIDITY |
1~10 |
1 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
2 |
|
--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 |
|
14 |
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.