1. Summary Information
|
|
|
Country |
|
|
Company Name |
RSWM LIMITED LNJ DENIM (A UNIT RSWM LIMITED) |
Principal Name 1 |
Mr. L. N.
Jhunjhunwala |
|
Status |
Satisfactory |
Principal Name 2 |
Mr. Ravi
Jhunjhunwala |
|
|
|
Registration # |
17-008216 |
|
Street Address |
Kharigram, P. O. Gulabpura,
Bhilwara - 311021, Rajasthan |
||
|
Established Date |
17.10.1960 |
SIC Code |
-- |
|
Telephone# |
91-1482-223144 |
Business Style 1 |
Manufacturing |
|
Fax # |
91-1482-223361 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
Yarn |
|
|
# of employees |
13857 (Approximately) |
Product Name 2 |
Fabric |
|
Paid up capital |
Rs. 231,486,890/- |
Product Name 3 |
Denim |
|
Shareholders |
Promoter and Promoter Group 51.44%, Public Shareholding
48.56% |
Banking |
Bank of |
|
Public Limited Corp. |
Yes |
Business Period |
53 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
Ba (50) |
|
Related Company |
|||
|
Relation |
Country |
Company Name |
CEO |
|
Associate |
-- |
LNJ Power Ventures Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
3,631,225,000 |
Current Liabilities |
2,479,575,000 |
|
Inventories |
3,997,147,000 |
Long-term Liabilities |
11,792,831,000 |
|
Fixed Assets |
9,658,073,000 |
Other Liabilities |
946,474,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
15,218,880,000 |
|
Invest& other
Assets |
1,218,180,000 |
Retained Earnings |
3,054,258,000 |
|
|
|
Net Worth |
3,285,745,000 |
|
Total Assets |
18,504,625,000 |
Total Liab. &
Equity |
18,504,625,000 |
|
Total Assets (Previous Year) |
17,332,079,000 |
|
|
|
P/L Statement as of |
31.03.2013 |
(Unit: Indian Rs.) |
|
|
Sales |
24,532,920,000 |
Net Profit/ (Loss) |
678,661,000 |
|
Sales (Previous Year) |
19,869,975,000 |
Net Profit/ (Loss) (Previous Year) |
(217,892,000) |
MIRA INFORM
REPORT
|
Report Date : |
12.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
RSWM LIMITED (w.e.f.17.11.2006) LNJ DENIM (A UNIT RSWM LIMITED) |
|
|
|
|
Formerly Known
As : |
RAJASTHAN SPINNING
AND WEAVING MILLS LIMITED |
|
|
|
|
Registered
Office : |
Kharigram, P. O.
Gulabpura, Bhilwara - 311021, Rajasthan |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
17.10.1960 |
|
|
|
|
Com. Reg. No.: |
17-008216 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 231.487
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17115RJ1960PLC008216 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
JDHR02418D /
JDHR02137C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACR9700M |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturing of Yarn, Fabric and Denim. |
|
|
|
|
No. of Employees
: |
13857 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 13000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of LNJ Bhilwara Group. It is an established company having a satisfactory track record. There appear huge external borrowings taken by the company. However, the company has recorded better growth in sales and
profitability during the year 2013. Overall fundamental of the company
appears to be strong and healthy. Trade relations are fair. Business is active. Payments are usually
correct. The company can be considered 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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The current downturn
provides an opportunity to push ahead with reforms to accelerate growth, says
the latest India Development Update report released by the World Bank. The
report says that the adverse effects of rupee depreciation are likely to be
offset by the gains in the exports performance due to improved external
competitiveness. Since May this year, the local currency has depreciated
substantially and fell to a record level of Rs 68.85 to a dollar on August, 28.
A stagflation like
situation appears to have arisen as inflation jumped to an eight month high of
6.46 % for the month of September. It is up from 6.10 % in August. Growth
continues to be muted with factory output plunging to 0.6 % in August.
Onion prices have risen nearly 300 % from last September. Vegetables cost
nearly 90 % more than they did last year. Wake up to the economic contribution
of slum dwellers. They contribute more than 7.5 % to the country’s gross
domestic product, according to a recent study conducted in 50 top cities.
136000 estimated
number of jobs created during the second quarter of the current financial year.
50000 estimated number of additional jobs in the field of corporate social
responsibility in the coming years.
The International Finance
Corporation expects to come out with its rupee linked bonds issue before the
end of 2013 as a part of its plan to raise $ 1 billion. The Apple iPhone 5c (Rs
41900 for 16 GB variant) and 5s (Rs 53500 for 16GB variant) has been launched
in
The Land Acquisition
Act to provide just and fair compensation to farmers will come into force from
January 1 next year, said Rural Development Minister Jairam Ramesh. The Act
replaces a 119 year old registration. The Securities and Exchange Board of
India has approved the trading of currency futures on the Bombay Stock
Exchange. The exchange plans to launch the currency futures platform with
advanced trading technology by the end of November.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities : BBB |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
November 02, 2012 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities : A3+ |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
November 02, 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE [91-1482-223144]
LOCATIONS
|
Registered Office/ Factory 1 : |
Kharigram, P. O.
Gulabpura, Bhilwara - 311021, Rajasthan, India |
|
Tel. No.: |
91-1482-223144-50 |
|
Fax No.: |
91-1482-223361 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Bhilwara Towers,
A-12, Sector–1, Post Box No. 185, Noida - 201301, Uttar Pradesh, India |
|
Tel. No.: |
91-120-4390300 |
|
Fax No.: |
91-120-2531648 |
|
E-Mail : |
|
|
|
|
|
Factory 2 : |
Mayur Nagar, Lodha, P.O. Banswara - 327001, Rajasthan, India |
|
|
|
|
Factory 3 : |
Mandpam, Bhilwara - 311001, Rajasthan, India |
|
|
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|
Factory 4 : |
Rishabhdev, District Udaipur - 313802, Rajasthan, India |
|
|
|
|
Factory 5 : |
Ringas, District Sikar - 332404, Rajasthan, India |
|
|
|
|
Factory 6 : |
LNJ Nagar, Mordi, P.O. Banswara - 327001, Rajasthan, India |
|
|
|
|
Regional Marketing Offices : |
Located at: · Ahmedabad Bhilwara Delhi Indore Ichalkaranji Kolkata Kanpur Ludhiana Mumbai Tirupur |
|
|
|
|
Overseas
Marketing Offices : |
Located at : ·
Italy ·
Belgium ·
UK |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. L. N. Jhunjhunwala |
|
Designation : |
Chairman -
Emeritus |
|
|
|
|
Name : |
Mr. Ravi
Jhunjhunwala |
|
Designation : |
Chairman |
|
Date of Birth/
Age : |
28.10.1955 |
|
Qualification
: |
B.Com, (Hons.) MBA |
|
Expertise in specific functional areas : |
Industrialist
with diversified business experience |
|
Date of Appointment : |
18.05.1979 |
|
Other Directorship : |
· AD Hydro Power Limited Bhilwara Energy Limited Bhilwara Green Energy Limited BSL Limited Cheslind Textiles Limited HEG Limited India Glycols Limited Indo Canadian Consultancy Services Limited JK Lakshmi Cement Limited Malana Power Company Limited Maral Overseas Limited NJC Hydro Power Limited |
|
|
|
|
Name : |
Mr. Shekhar
Agarwal |
|
Designation : |
Vice Chairman |
|
Qualification
: |
B. Tech. (M.E.),
M. Sc. ( |
|
Date of
Appointment : |
13.02.1984 |
|
|
|
|
Name : |
Mr. Arun K
Churiwal |
|
Designation : |
Managing Director
and Chief Executive Officer |
|
Date of Birth/
Age : |
15.05.1950 |
|
Qualification
: |
B.A. (Hons) |
|
Expertise in specific functional areas : |
Rich Experience of Textile Industry |
|
Date of Appointment : |
23.10.2003 |
|
Other Directorship : |
· BSL Limited La Opala RG Limited LNJ Financial Services Limited |
|
|
|
|
Name : |
Mr. Riju Jhunjhunwala |
|
Designation : |
Joint Managing Director |
|
Date of Birth/
Age : |
13.01.1979 |
|
Qualification
: |
Graduate in Business Management Studies |
|
Expertise in specific functional areas : |
Industrialist with diversified business experience. |
|
Date of Appointment : |
01.01.2013 |
|
Other Directorship : |
· Bhilwara Energy Limited Bhilwara Green Energy Limited Bhilwara Infotechnology Limited Bhilwara Technical Textiles Limited Chango Yangthang Hydro Power Limited Cheslind Textiles Limited HEG Limited LNJ Power Ventures Limited NJC Hydro Power Limited |
|
|
|
|
Name : |
Mr. Kamal Gupta |
|
Designation : |
Director |
|
Date of Birth/
Age : |
12.02.1946 |
|
Qualification
: |
FCA, FICWA, Ph. D |
|
Expertise in specific functional areas : |
Consultant in the areas of Finance, Accounting and
Corporate Laws, Former Technical Director of The Institute of Chartered
Accountants of India. |
|
Date of Appointment : |
26.12.1987 |
|
Other Directorship : |
· AD Hydro Power Limited Bhilwara Energy Limited HEG Limited Malana Power Company Limited Maral Overseas Limited PNB Gilts Limited |
|
|
|
|
Name : |
Mr. D N Davar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sushil
Jhunjhunwala |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. A. N.
Choudhary |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. T. G. Regunathan |
|
Designation : |
Director (Nominee, EXIM Bank) |
|
|
|
|
Name : |
Mr. J. C. Laddha |
|
Designation : |
Executive Director
|
|
Date of Birth/
Age : |
12.12.1949 |
|
Qualification
: |
B.Com., F.C.A. |
|
Experience : |
40 Years of Possesses rich experience in Textile Industry. |
|
Date of
Appointment : |
01.01.1990 |
KEY EXECUTIVES
|
CORPORATE OFFICE |
|
|
Name : |
Mr. Prakash Maheshwari |
|
Designation : |
Chief Executive (Corporate Management Services) |
|
|
|
|
Name : |
Mr. B. M. Sharma |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. T. Dev Joshi |
|
Designation : |
President (Corporate HR and OD) |
|
|
|
|
Name : |
Mr. M. L. Jhunjhunwala |
|
Designation : |
President, Mumbai |
|
BUSINESS HEADS |
|
|
Name : |
J. C. Laddha |
|
Designation : |
Chief Executive (Yarn and TPP) |
|
|
|
|
Name : |
S. C. Garg |
|
Designation : |
Chief Executive (Melange yarn) |
|
|
|
|
Name : |
Y. C. Gupta |
|
Designation : |
Chief Executive (Denim) |
|
|
|
|
Name : |
Mr. Nirmal Jain |
|
Designation : |
Chief Executive (Fabric) |
|
|
|
|
Name : |
Mr. Surender Gupta |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2013
|
Category of
Shareholder |
Total
No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1808068 |
7.81 |
|
|
5163816 |
22.31 |
|
|
6971884 |
30.12 |
|
|
|
|
|
|
4934770 |
21.32 |
|
|
4934770 |
21.32 |
|
Total shareholding of Promoter and Promoter Group (A) |
11906654 |
51.44 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1661008 |
7.18 |
|
|
12900 |
0.06 |
|
|
1732 |
0.01 |
|
|
483615 |
2.09 |
|
|
100 |
0.00 |
|
|
2159355 |
9.33 |
|
|
|
|
|
|
3240664 |
14.00 |
|
|
|
|
|
|
3230166 |
13.95 |
|
|
2536490 |
10.96 |
|
|
75360 |
0.33 |
|
|
75360 |
0.33 |
|
|
9082680 |
39.24 |
|
Total Public shareholding (B) |
11242035 |
48.56 |
|
Total (A)+(B) |
23148689 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
23148689 |
100.00 |
%20-%20242880%2012-Nov-2013_files/image002.gif){kind=small}
(1) Indian%20-%20242880%2012-Nov-2013_files/image003.gif){kind=small}
Individuals / Hindu Undivided Family%20-%20242880%2012-Nov-2013_files/image004.gif){kind=small}
Individual shareholders holding nominal
share capital up to Rs. 0.100 MillionBUSINESS DETAILS
|
Line of Business : |
Manufacturing of Yarn, Fabric and Denim. |
||||||||
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|
||||||||
|
Products/ Services : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit
|
Installed
Capacity |
|
Yarn |
|
|
|
Spindles |
Nos. |
336608 |
|
Rotors |
Nos. |
1680 |
|
Fabric |
|
|
|
Looms |
Nos. |
104 |
|
Processing |
(Lac Mtr./Annum) |
216 |
|
Denim Fabric (consisting of 7032 spindles and 720 rotors for spinning and 72 looms
for weaving) |
(Lac Mtr./Annum) |
140 |
|
Power |
|
|
|
Thermal |
(MW) |
46 |
|
HFO base |
(MW) |
38 |
GENERAL INFORMATION
|
No. of Employees : |
13857 (Approximately) |
|||||||||||||||||||||||||||||||||
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|
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|
Bankers : |
· State Bank of Bikaner and Jaipur Axis Bank Limited Bank of Baroda Central Bank of India Dena Bank Export-Import Bank of India ICICI Bank Limited IDBI Bank Limited Oriental Bank of Commerce Punjab National Bank State Bank of India State Bank of Mysore UCO Bank Union Bank of India |
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Facilities : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
|
|
|
Auditors 1 : |
|
|
Name : |
S. Bhargava Associates Chartered Accountants |
|
|
|
|
Auditors 2 : |
|
|
Name : |
A. L. Chechani and Company Chartered Accountants |
|
|
|
|
Enterprises
that directly or indirectly through one or more intermediaries, control or
are controlled by or are under common control with the reporting enterprise
(this includes holding companies, subsidiaries and fellow subsidiaries) : |
Cheslind Textiles Limited |
|
|
|
|
Associate
: |
LNJ Power Ventures Limited |
|
|
|
|
Enterprises
over which any person described in (c) or (d) is able to exercise significant
influence : |
· Aadi Marketing Company Private Limited A.D. Hydro Power Limited Agarwal Finestate Private Limited Agarwal Trademart Private Limited Apeksha Vyapaar Private Limited Bhilwara Energy Limited Bhilwara Services Private Limited Bhilwara Technical Textiles Limited BMD Power Private Limited BMD Private Limited BMD Renewable Energy Private Limited BSL Limited Churiwala Properties and Investments Private Limited Diplomat Leasing and Finance Private Limited Essay Marketing Company Limited Giltedged India Securities Limited HEG Limited India Texfab Marketing Limited Indo Canadian Consultancy Services Limited Investors India Limited Jyoti Knits Private Limited Kalati Holdings Private Limited LNJ Financial Services Limited Malana Power Company Limited Maral Overseas Limited Mayur Knits Private Limited Maheshwari Vastra Bhandar Mandapam Vikas Private Limited Mandawa Niyojan Private Limited Nikita Electrotrades Private Limited Nivedan Vanijiya Niyojan Limited Prapti Apparels Company Private Limited PRC Niyojan Private Limited Purvi Vanijya Niyojan Limited Raghav Commercial Limited Raghav Knits and Textiles Private Limited Shashi Commercial Company Limited Sudiva Spinners Private Limited Ultramarine Impex Private Limited Veronia Tie-up Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
47500000 |
Equity Shares |
Rs. 10/- each |
Rs. 475.000 Millions |
|
2500000 |
Optionally Convertible Redeemable Preference Shares |
Rs. 150/- each |
Rs. 375.000 Millions |
|
|
Total |
|
Rs. 850.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23148689 |
Equity Shares |
Rs. 10/- each |
Rs. 231.487
Millions |
|
|
|
|
|
1. Shareholders holding more than 5 % of shares
|
Name of
Shareholders |
31.03.2013 |
|
|
|
Number of Shares |
Percentage of holding |
|
Microbase Limited |
3650970 |
15.77 |
|
IDFC Sterling Equity Fund |
1572818 |
6.79 |
|
LNJ Financial Services Limited |
1767394 |
7.63 |
|
Purvi Vanijya Niyojan Limited |
1218431 |
5.26 |
2. There are no
shares issued for consideration other than cash in the last 5 financial years. However,
13513607 Equity shares of Rs.10/- each were issued as fully paid up bonus
shares by capitalisation of reserves in earlier years. 1228689 Equity shares of
Rs.10/- each were issued for consideration other than cash, pursuant to the
scheme of merger of erstwhile Jaipur Polyspin Limited and Mordi Textiles and
Processors Limited as approved by the Hon'ble High Court of Rajasthan.
3. The number of
issued, subscribed and fully paid up shares remained unchanged during the year
as there were no buy back or issue of share capital.
4. The Company has
only one class of Equity Shares having a par value of Rs. 10/-. Each holder of
Equity Shares is entitled to one vote per share. There are no restrictions
attached to any Equity Shares. The Company declares and pays dividends, if any,
in Indian rupees. During the year ended 31st March, 2013, the amount of per
share dividend recoginzed as distribution to Equity Shareholders was Rs.10/-
(Previous year NIL). The dividend proposed by the Board of Directors is subject
to the approval of the shareholders in the ensuing Annual General Meeting. 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 respective shareholders.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
231.487 |
231.487 |
231.487 |
|
(b) Reserves & Surplus |
3036.134 |
2616.485 |
2850.686 |
|
Government Capital Grants |
18.124 |
20.991 |
25.670 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
3285.745 |
2868.963 |
3107.843 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
7126.534 |
8168.843 |
5943.212 |
|
(b) Deferred tax liabilities (Net) |
485.727 |
352.712 |
417.812 |
|
(c) Other long
term liabilities |
55.990 |
63.522 |
82.315 |
|
(d) long-term
provisions |
172.576 |
141.588 |
145.191 |
|
Total Non-current
Liabilities (3) |
7840.827 |
8726.665 |
6588.530 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
4666.297 |
3760.900 |
4379.778 |
|
(b)
Trade payables |
411.614 |
300.100 |
647.819 |
|
(c)
Other current liabilities |
2011.971 |
1659.515 |
1735.183 |
|
(d) Short-term
provisions |
288.171 |
15.936 |
152.549 |
|
Total Current
Liabilities (4) |
7378.053 |
5736.451 |
6915.329 |
|
|
|
|
|
|
TOTAL |
18504.625 |
17332.079 |
16611.702 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
9593.196 |
7737.117 |
7956.084 |
|
(ii)
Intangible Assets |
64.877 |
61.975 |
64.163 |
|
(iii)
Capital work-in-progress |
111.466 |
2509.338 |
54.195 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
1106.714 |
602.714 |
601.544 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
240.778 |
424.082 |
419.480 |
|
(e) Other
Non-current assets |
11.211 |
8.748 |
23.469 |
|
Total Non-Current
Assets |
11128.242 |
11343.974 |
9118.935 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
3997.147 |
3255.490 |
4330.084 |
|
(c)
Trade receivables |
2160.747 |
1844.125 |
2039.005 |
|
(d) Cash
and cash equivalents |
19.103 |
18.655 |
62.825 |
|
(e)
Short-term loans and advances |
283.632 |
284.707 |
277.898 |
|
(f)
Other current assets |
915.754 |
585.128 |
782.955 |
|
Total
Current Assets |
7376.383 |
5988.105 |
7492.767 |
|
|
|
|
|
|
TOTAL |
18504.625 |
17332.079 |
16611.702 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
24532.920 |
19869.975 |
19505.870 |
|
|
|
Other Income |
228.352 |
223.345 |
291.211 |
|
|
|
TOTAL (A) |
24761.272 |
20093.320 |
19797.081 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of material consumed |
14776.742 |
13073.953 |
11200.987 |
|
|
|
Purchases of traded goods |
218.653 |
174.544 |
121.076 |
|
|
|
Change in inventories of finished goods, work-in-progress and stock- in- trade |
(546.353) |
(229.800) |
(431.436) |
|
|
|
Employee benefits expense |
2042.502 |
1642.049 |
1497.108 |
|
|
|
Other expenses |
4958.016 |
3822.705 |
3864.028 |
|
|
|
Exceptional items |
0.000 |
0.000 |
144.205 |
|
|
|
TOTAL (B) |
21449.560 |
18483.451 |
16395.968 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
3311.712 |
1609.869 |
3401.113 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1212.906 |
1040.362 |
787.427 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2098.806 |
569.507 |
2613.686 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1084.538 |
891.027 |
801.468 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE
TAX (E-F) (G) |
1014.268 |
(321.520) |
1812.218 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
335.607 |
(103.628) |
582.572 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
678.661 |
(217.892) |
1229.646 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of Export |
6861.837 |
6939.578 |
7484.597 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
271.975 |
387.007 |
283.233 |
|
|
|
Components and Spare Parts |
161.926 |
121.246 |
114.364 |
|
|
|
Capital Goods |
286.730 |
1297.091 |
207.457 |
|
|
TOTAL IMPORTS |
720.631 |
1805.344 |
605.054 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
29.32 |
(9.41) |
53.08 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2013 |
|
Type |
|
|
1st
Quarter |
|
Net Sales |
|
|
6669.300 |
|
Total Expenditure |
|
|
5661.200 |
|
PBIDT (Excl OI) |
|
|
1008.100 |
|
Other Income |
|
|
19.600 |
|
Operating Profit |
|
|
1027.700 |
|
Interest |
|
|
325.500 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
702.200 |
|
Depreciation |
|
|
274.900 |
|
Profit Before Tax |
|
|
427.300 |
|
Tax |
|
|
139.100 |
|
Provisions and contingencies |
|
|
0.000 |
|
Profit After Tax |
|
|
288.200 |
|
Extraordinary Items |
|
|
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
288.200 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.74
|
(1.08) |
6.21 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.13
|
(1.62) |
9.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.87
|
(2.26) |
11.36 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31
|
0.11 |
0.58 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
3.59
|
4.16 |
3.32 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.00
|
1.04 |
1.08 |
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 |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
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 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10443730 |
03/08/2013 |
95,000,000.00 |
STATE BANK OF
BIKANER AND JAIPUR |
KHARIGRAM, GULABPURA,
BHILWARA - 311021, RAJASTHAN, INDIA |
B82450230 |
|
2 |
10442614 |
24/07/2013 |
120,000,000.00 |
BANK OF BARODA |
GULABPURA,
BHILWARA - 311021, RAJASTHAN, INDIA |
B81952087 |
|
3 |
10435750 |
27/06/2013 |
86,200,000.00 |
UNION BANK OF
INDIA |
15/251 RAJENDRA
MARG, BHILWARA - 311001, RAJASTHAN, INDIA |
B79153292 |
|
4 |
10435748 |
27/06/2013 |
267,400,000.00 |
UNION BANK OF
INDIA |
15/251 RAJENDRA
MARG, BHILWARA - 311001, RAJASTHAN, INDIA |
B79152476 |
|
5 |
10417538 |
28/03/2013 |
112,500,000.00 |
STATE BANK OF
BIKANER AND JAIPUR |
KHARIGRAM,
GULABPURA, BHILWARA - 311021, RAJASTHAN, INDIA |
B72527377 |
|
6 |
10329983 |
08/08/2012 * |
402,500,000.00 |
DENA BANK |
M-36, CONNAUGHT
CIRCUS, NEW DELHI - 110001, INDIA |
B58439159 |
|
7 |
10298225 |
27/01/2012 * |
1,400,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI -
400005, MAHARASHTRA, INDIA |
B32567588 |
|
8 |
10302297 |
27/01/2012 * |
1,440,000,000.00 |
STATE BANK OF
BIKANER AND JAIPUR |
KHARIGRAM,
GULABPURA, BHILWARA - 311021, RAJASTHAN, INDIA |
B31633803 |
|
9 |
10294269 |
27/01/2012 * |
595,000,000.00 |
ORIENTAL BANK OF
COMMERCE |
SHANTI BHAWAN,
BHILWARA - 311001, RAJASTHAN, INDIA |
B31644420 |
|
10 |
10054519 |
27/03/2009 * |
250,000,000.00 |
STATE BANK OF
BIKANER AND JAIPUR |
KHARIGRAM,
GULABPURA, BHILWARA - 311021, RAJASTHAN, INDIA |
A60601150 |
|
11 |
10055694 |
02/07/2012 * |
66,500,000.00 |
ORIENTAL BANK OF
COMMERCE |
SHANTI BHAWAN, BHUPAL
GANJ, BHILWARA - 311001, RAJASTHAN, INDIA |
B44478980 |
|
12 |
10040542 |
27/03/2009 * |
250,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE, COMPLEX, CUFFE PARADE, MUMBAI -
400005, MAHARASHTRA, INDIA |
A60540408 |
|
13 |
10034916 |
06/11/2009 * |
70,000,000.00 |
CENTRAL BANK OF
INDIA |
PIPALI CHORAYA,
BIJAI NAGAR - 305624, RAJASTHAN, INDIA |
A72762065 |
|
14 |
10041347 |
27/03/2009 * |
500,000,000.00 |
STATE BANK OF
INDIA |
13, DEEPAK BUILDING,
NEHRU PLACE, NEW DELHI - 110019, INDIA |
A60541711 |
|
15 |
10041349 |
29/07/2009 * |
556,200,000.00 |
PUNJAB NATIONAL
BANK |
MID CORPORATE
BRANCH, M I ROAD, JAIPUR - 302001, RAJASTHAN, INDIA |
A68084656 |
|
16 |
10041342 |
24/07/2009 * |
130,000,000.00 |
STATE BANK OF
INDORE |
COMMERCIAL
BRANCH, M-47, CONNAUGHT CIRCUS, NEW DELHI - 110001, INDIA |
A67261388 |
|
17 |
10022053 |
27/03/2009 * |
500,000,000.00 |
STATE BANK OF
BIKANER AND JAIPUR |
KHARIGRAM,
GULABPURS - 311021, RAJASTHAN, INDIA |
A60606076 |
|
18 |
10020758 |
27/03/2009 * |
1,000,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE, COMPLEX, CUFFE PARADE, MUMBAI -
400005, MAHARASHTRA, INDIA |
A60719960 |
|
19 |
10017317 |
27/03/2009 * |
500,000,000.00 |
STATE BANK OF
MYSORE |
NO.3, 4 & 5,
DDA BUILDING,, NEHRU PLACE, NEW DELHI - 110019, INDIA |
A62147574 |
|
20 |
10007935 |
27/03/2009 * |
510,000,000.00 |
CENTRAL BANK OF
INDIA |
PIPALI CHORAYA,,
BIJAINAGAR - 305624, RAJASTHAN, INDIA |
A60342516 |
|
21 |
10005341 |
27/03/2009 * |
520,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR 21, WORLD TRADE CENTRE, COMPLEX, CUFFE PARADE, MUMBAI -
400005, MAHARASHTRA, INDIA |
A60541257 |
|
22 |
10005105 |
27/03/2009 * |
500,000,000.00 |
STATE BANK OF
MYSORE |
NO.3, 4 & 5,
DDA BUILDING,, NEHRU PLACE, NEW DELHI - 110019, INDIA |
A62153721 |
|
23 |
80007568 |
27/03/2009 * |
100,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE BUILDING,
FLOOR 21, WORLD TRADE CENTRE, COMPLEX, CUFFE PARADE, MUMBAI - 400005,
MAHARASHTRA, INDIA |
A60539079 |
|
24 |
80016859 |
27/03/2009 * |
247,500,000.00 |
PUNJAB NATIONAL
BANK |
MID CORPORATE
BRANCH, M I ROAD, JAIPUR - 302001, RAJASTHAN, INDIA |
A60597994 |
|
25 |
80016865 |
27/03/2009 * |
247,500,000.00 |
UNION BANK OF
INDIA |
239, VIDHAN
BHAWAN MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
A60664364 |
|
26 |
80016854 |
27/03/2009 * |
105,000,000.00 |
PUNJAB NATIONAL
BANK |
MID CORPORATE
BRANCH, M I ROAD, JAIPUR - 302001, RAJASTHAN, INDIA |
A60597515 |
|
27 |
80013179 |
27/03/2009 * |
250,000,000.00 |
STATE BANK OF
BIKANER AND JAIPUR |
KHARIGRAM,
GULABPURA - 311021, RAJASTHAN, INDIA |
A60604832 |
|
28 |
80016906 |
27/03/2009 * |
250,000,000.00 |
UNION BANK OF
INDIA |
239, VIDHAN
BHAWAN MARG, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
A60664554 |
|
29 |
80016863 |
27/03/2009 * |
240,000,000.00 |
PUNJAB NATIONAL
BANK |
MID CORPORATE BRANCH,
M I ROAD, JAIPUR - 302001, RAJASTHAN, INDIA |
A60559416 |
|
30 |
80007572 |
11/03/2013 * |
7,760,000,000.00 |
STATE BANK OF
BIKANER AND JAIPUR |
KHARIGRAM,
GULABPURA - 311021, RAJASTHAN, INDIA |
B71679989 |
* Date of charge modification
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG-TERM BORROWINGS |
|
|
|
Deferred Payment Liabilities |
12.286 |
16.997 |
|
|
|
|
|
Total |
12.286 |
16.997 |
OPERATIONAL
PERFORMANCE
During the year, the Company succeeded in meeting the challenges posed by the ongoing global economic crisis and came back strongly with improved efficiency, productivity and profitability.
The Company registered increase of 23.54% in its gross turnover from Rs.20001.500 Millions in 2011-12 to Rs.24710.400 Millions in 2012-13. The export turnover remained almost static at Rs.7201.900 Millions in 2012-13 as against Rs.7303.500 Millions in 2011-12 whereas domestic turnover increased to Rs.17508.500 Millions in 2012-13 from Rs.12698.000 Millions in the previous year. The analytical review of the Company’s performance and its businesses, including initiatives in the areas of human resources and information technology, have been presented in the section on Management Discussion and Analysis of the Annual Report. Working results of last three financial years 2010-11 to 2012-13.
EXPANSION AND
MODERNISATION
The Company during the year continued to make further strides to achieve the targets laid down in pursuit of the ‘Lakshya 2016’ programme with a targeted turnover of Rs.45000.000 Millions and involving a capex of Rs.15000.000 Millions in stages to be achieved by 2016. The Directors in the previous year’s report had mentioned about the first phase of the above programme involving a capital outlay of Rs.3550.000 Millions. The Company during the year completed the expansion of capacity by 51,840 spindles at the Kharigram Unit of the Company. The Company also set up a spinning facility at the Denim Unit precursor to the scheduled expansion of the weaving capacity at this unit. The above expansions were completed in the second half of the financial year at a total cost of Rs.3550.000 Millions. The full benefits of the above expansions will be reflected in the working of current financial year 2013-14.
The Company initiated a capital outlay plan for supply and upgradation of Effluent Treatment Plant (ETP) at its Kharigram, Ringas, Denim and TPP Plants and Sewerage Treatment Plant (STP) at all locations at an estimated cost of Rs.151.500 Millions, as a part of various eco-friendly measures. The Directors inform the Members that these programmes are expected to be completed in the first quarter of the current financial year, 2013-14.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMY
GLOBAL:
Global gross domestic product (GDP) grew 3.2% in 2012 against 3.9% in 2011 following another bout of turbulence in what was always expected to be a slow recovery. Economic conditions improved in the third quarter of 2012 primarily due to acceleration in emerging market economies and in the US, where surprisingly growth was registered on the upside. On the brighter side, global growth is projected to increase in 2013, as the factors accounting for decelerating global commerce are expected to wane. However, this upturn is projected to be deliberate and time-consuming. The world economy growth is estimated at 3.25% in 2013.
INDIA:
The Indian economy decelerated for the second year in succession to 5% in 2012-13 against 6.2% in 2011-12 – the lowest in the last decade – on account of weak growth coming out of its manufacturing, agriculture and service sectors. The Central Statistics Organisation’s advance estimate lowered the growth in agriculture and allied activities to 1.8% in 2012-13 against 3.6% 2011-12; manufacturing growth dropped to an estimated 1.9% in 2012-13 from 2.7% in 2011-12 while the services sector (finance, insurance, real estate and business services sectors) grew at a reduced rate of 8.6% in 2012-13 against 11.7% in the previous fiscal. In 2012-13, the industrial sector was plagued by a slowdown in investment and consumption, driven by policy slowdown and disruptions in mining output for most part of the fiscal. The manufacturing sector was impacted by declining private consumption, corporate investment and export demand. India’s farm sector grew 3.6% growth during the 11th Five-Year Plan (2007-12), falling short of the 4% growth target, although this was higher than the growth of 2.5% and 2.4% during the 9th and 10th Five Year Plans. Overall, India’s GDP growth is expected to climb to 6.7% in 2013-14 (CRISIL estimates) due to a consumption revival. With advanced economies expected to record only a slight improvement in growth and depleted domestic investment pipeline, India’s GDP growth in 2013-14 will be largely dependent on the revival of private consumption growth. Other factors expected to shape India’s growth prospects in 2013-14 could comprise a pick-up in agriculture, a normal monsoon, lower interest rates, higher government spending and increased private consumption. In 2013-14, a revival in industrial growth to 5.4% is expected, supported by growth in private consumption and a modest recovery in exports.
TEXTILE SECTOR
Textile sector and
the economy:
The Indian textile industry enjoys an overwhelming presence in its economic existence as it contributes 4% to the gross domestic product, approximately 14% to industrial production, 12% of the country’s total exports and is the second largest employment provider. India’s commercial banks enjoy an exposure of about Rs.1.60 lac crore to the country’s textile sector.
Performance:
The Indian textiles sector rebounded after a catastrophic 2011-12. As per CMIE estimates, industry sales grew about 7.5% backed by higher volumes and improved realisations; total yarn production increased about 6.8% while fabric production grew about 7.1%.
On the export front, demand remained sluggish across the textile value chain in 2012. Order sizes reduced for apparel exporters, resulting in reduced volumes.
However, rupee realisations increased partly following rupee depreciation (against the USD and the Euro) leading to moderate revenue growth.
The year was marked by margins stability for textile players across the value chain led by steady cotton prices. After trending upwards over June-August 2012, raw cotton prices declined in September 2012 due to higher–than expected domestic arrivals of cotton.
The textile sector (including dyed and printed) attracted foreign direct investments worth Rs.56564.200 Millions (US$ 1.04 billion) during April 2000 to November 2012.
Government Policies:
The Indian Government sustained its concessional debt support to the Indian textiles industry through the Technology Upgradation Fund Scheme (TUFS) for the next five years. The Government estimated an outlay of US$ 3.17 billion (Rs.158860.000 Millions) for the Twelfth Five Year Plan, US$ 777.2 million (Rs.38860.000 Millions) more than the allocation during the Eleventh Five Year Plan ended March 2012. RBI also extended the 2% interest subvention for exporters till 2014, enhancing liquidity. An additional 2% incentive was provided by the government for entities registering higher exports growth.
To boost investments in the spinning segment, the Gujarat Government announced the Gujarat Textile Policy in September 2012, targeting the installation of 2.5 mn spindles worth Rs.70000.000 Millions across the next five years. The Maharashtra Government and Madhya Pradesh Government announced a near 0% interest rate for new textile units.
Other measures in the pipeline include talks with Europe for zero import duty on Indian imports which could provide a level playing field with countries such as Bangladesh in the long run.
Estimates:
The Indian textiles and apparel market (US$58 billion) has the potential to grow at a CAGR of 9% to US$141 billion by 2021. India’s share of the world’s textile and apparel exports stands at 4.5%. It is estimated that due to the increasing shift of textile and apparel production to Asian nations and the deteriorating export-competitiveness of China, India’s share could grow to 8% by 2020 with a total exports value of US$ 82 billion.
Cotton and cotton yarn prices are expected to remain stable in 2013. As per The Cotton Corporation of India Limited, cotton production in the current season (October 2012 to March 2013) is estimated at 35 million bales (1 bale=170 kg) while domestic consumption is expected at 27 million, leaving a 8 million surplus.
BUSINESS OPERATIONS
RSWM is one of the leading players in India’s textile industry with interests in the manufacture of yarn, fabric and denim. The Company’s operations are conducted across eight locations in Rajasthan. The Company is one of the largest producers and exporters of polyester viscose blended yarn and 100% cotton mélange yarn in India. Periodic investments in cutting-edge competencies and technologies facilitated the manufacture of quality products of an international standard. The Company enjoys a significant global presence with approximately 50% of products exported. RSWM exports a complete range of yarns, fabrics and garments to over 73 countries including South Africa, Australia, Korea, Belgium, Singapore, Italy, Egypt and those of the Middle East.
A. YARN BUSINESS
OVERVIEW
RSWM is more than a Company that figures among the five leading manufacturers of polyester viscose blended yarn in India. It is credited with having laid the foundation of the textile sector in Rajasthan (commenced business at Bhilwara in 1961). The yarn business is the Company’s flagship business which contributes more than 80% of its topline.
Over 25% of the Company’s yarn output is marketed to brand-enhancing downstream Indian textile players, namely Raymonds, Siyaram, Welspun, Alok, Arvind, among others. The Company’s products are also marketed across 73 nations. More than 15% of the Company’s product line is accounted by ‘green textiles’ marketed to global brands from the US, the EU and Latin America.
The Company enjoys a pan-India presence with ten regional marketing offices (Ahmedabad, Bhilwara, Delhi, Indore, Ichalkaranji, Kolkata, Kanpur, Ludhiana, Mumbai and Tirupur).
PRODUCT PORTFOLIO
The Company possesses one of the widest yarn ranges across numerous fibre blends, counts and shades; these are classified into three categories - grey, dyed, and mélange yarn. Processed fibres comprise polyester, viscose, acrylic, cotton, wool, rayon, nylon, silk, polyamide and linen. The Company also produces a range of specialty products made of unorthodox fibres (soya protein, milk protein, bamboo, bamboo-charcoal and branded fibres such as Tencel®, Greenplus®, Protex®, X-static®, Beltron®, Huvis FR Polyester®, Trevira CS®, Coolmax®, Coolplus®, Birla Modal®, Excel®, Viloft®, Cupro®, Lycra®, Clima®, Seacel®, Dupont’s Sorona®, Teijin Conex®, Tworon® and Ingeo (PLA)®). Many of these yarns were developed for specific applications with functional qualities – natural stretch, flame retardant and industrial use.
Greige yarn:
Greige yarn is the largest in terms of volume and crucial to the product portfolio. These yarns are produced at the Company’s Banswara, Rishabhdev and Kharigram (part capacity) plants.
Dyed yarn:
These yarns are made from multiple fibre varieties in line with customer specifications leading to enhanced realisations. The Company works with multiple fibres (including specialised variants) to address customer requirements. These yarns are spun at the Company’s Kharigram and Ringas units.
Melange yarn: RSWM is India’s largest mélange yarn manufacturer – premium yarns from cotton and blends used in knitwear and the weaving sector – with 44016 spindles. The Melange yarn commands the highest value-addition in RSWM’s yarn portfolio.
HIGHLIGHTS, 2012-13
Yarn production including Mélange yarn increased 22% from 95035 MT in 2011-12 to 115720 MT in 2012-13
Created the ‘Ultima’ brand to market quality yarn from its sophisticated unit at Kharigram; the yarn was successfully marketed to leading textile brands in India
Mélange yarn production grew 25% from 7351 MT in 2011-12 to 9195 MT in 2012-13
B. MAYUR SUITINGS
OVERVIEW
RSWM manufactures a range of blended suiting fabrics (Mayur brand) in India, marketed by more than 2000 retailers’ pan-India. A sizeable quantity of fabric is also exported to discerning, quality conscious customers in the Middle East, the Mediterranean region and mainland Europe, the Far East and the US.
PRODUCT
The Company possesses a comprehensive product mix comprising fabrics for formal and semi-formal wear covering unique blends of polyester and viscose in different yarn counts, shades and finishes. The Company is respected for its ability to periodically introduce value-added products in line with customer preferences.
HIGHLIGHTS, 2012-13
Production and sales volumes increased by 16% and 19% respectively over the 2011-12 level
Significantly increased sales volumes to institutional customers
C. LNJ DENIM
OVERVIEW
The denim division commissioned operations (installed capacity of 18 million metres per annum) with state of- the-art facilities and certifications like Global Organic Textile Standards (GOTS), Global Recycle Standards, SA 8000, Organic Exchange (OE blended and/or OE 100), OEKO-TEX 100 and REACH. Although, a relatively small segment, the denim business possesses the ability to improvise fabric usage around diverse applications.
PRODUCT
Over the years, the Company created a massive product basket of 3,000+ denim variants. The product range comprises denim-out-of-denim (recycled denim) and work wear like anti-bacterial hydrophobic, hydrophilic, anti-odour and fire-retardant, poly-spectrum in 65 shades, organic cotton fabric, power stretch, plasma denim, rich blended denims of cotton with linen, cotton with Kashmir wool, cotton with hemp, cotton with viscose, 100% tencel, among others.
HIGHLIGHTS 2012-13
Sales grew by 16% from 12.6 million metres in 2011-12 to 14.6 million metres
Average realisations increased over the previous year; proportion of value added products in the sales mix increased substantially
Added international brands to the client list, namely Levis, GAP and Diesel.
FINANCIAL PERFORMANCE
Despite an economic slowdown across the globe, the Company registered a stellar performance in 2012-13. Gross sales grew 23.54% from Rs.20001.500 Millions in 2011-12 to Rs.24710.400 Millions in 2012-13 – the growth being prudently balanced between volume increase and value addition.
Disciplined operations, multiple initiatives towards efficient resource utilisation and wastage elimination contained the growth in cost of operations. This coupled with an increased focus towards value addition facilitated a 105.71% jump in the EBIDTA from Rs.1609.900 Millions in 2011-12 to Rs.3311.700 Millions in 2012-13. Also, the EBIDTA margin expanded by 535 bps over 2011-12. Intelligent fund management and superior negotiation with finance partners enabled the Company reduce its average cost of borrowing.
The Company registered a net profit of Rs.678.700 Millions in 2012-13 against a net loss of Rs.217.900 Millions in 2011-12 – a turnaround in a single year. The net margin stood at 2.75% in 2012-13 against (-) 1.09% in 2011-12. The return on capital employed improved from 4.15% in 2011-12 to 12.04% in 2012-13.
The Company also improved the health of its Balance Sheet. Long term debt declined significantly which strengthened the Company’s long term debt-equity ratio from 2.54 as on March 31, 2012 to 1.89 as on March 31, 2013. The book value per share increased from Rs.123.03 as on March 31, 2012 to Rs.141.16 as on March 31, 2013.
INFORMATION
TECHNOLOGY
RSWM’s efficient IT infrastructure helped accelerate organisational speed, integrate various processes across the organisation and optimise costs. All the Company’s functional locations operated on a specialised ERP platform for the textile sector along with customized modules for the business processes that addressed the Company’s unique requirements. The team periodically reviewed and validated the overall security architecture and invested to strengthen the same, on a routine basis. In 2012-13, the IT team organized training sessions for new entrants regarding the software packages (RAMCO/TIM/BPCS). The Company also organised refresher sessions for its staff to grasp the new features that have been added to the software to ensure better work and time-management.
To mitigate the risks due to unforeseen situations, as a business continuity strategy, RSWM is equipped with disaster recovery solutions for ERP, connectivity at all of its plants/locations and of its e-mailing system too.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED
30.06.2013
[Rs. in Millions]
|
Sr. No. |
PARTICULARS |
Quarter
Ended |
|
|
|
30.06.2013 (Unaudited) |
|
|
PART-I |
|
|
1. |
Income from Operations |
|
|
a) |
Net Sales (Net of Excise
duty) |
6633.000 |
|
b) |
Other Operating Income |
36.300 |
|
|
Total Income (1a+1b) |
6669.300 |
|
2. |
Expenditure |
|
|
a) |
Cost of materials consumed |
3920.900 |
|
b) |
Purchases of
stock-in-trade |
83.200 |
|
c) |
Changes in inventories of
finished goods, work-in-progress and stock-in-trade |
(92.700) |
|
d) |
Employee benefits expense |
562.200 |
|
e) |
Depreciation and
amortisation expense |
274.900 |
|
f) |
Power and Fuel |
527.200 |
|
g) |
Other Expenditure |
660.400 |
|
|
Total |
5936.100 |
|
3. |
Profit / (Loss) from operations
before other income, finance costs and exceptional items(1-2) |
733.200 |
|
4. |
Other income |
19.600 |
|
5. |
Profit / (Loss) from
ordinary activities before finance costs and exceptional items (3+4) |
752.800 |
|
6. |
Finance costs |
325.500 |
|
7. |
Profit / (Loss) from
ordinary activities after finance costs but before exceptional item and
before tax (5-6) |
427.300 |
|
8. |
Exceptional items |
0.000 |
|
9. |
Profit / (Loss) from
ordinary activities before tax(7+8) |
427.300 |
|
10. |
Tax expense : |
|
|
|
: Current tax |
85.300 |
|
|
: Deferred tax |
53.800 |
|
11. |
Net Profit/(Loss) from
ordinary activities after tax(9-10) |
288.200 |
|
12. |
Extra ordinary items (Net
of tax expenses) |
0.000 |
|
13. |
Net Profit / (loss) for the period (11-12) |
288.200 |
|
14. |
Paid-up equity share
capital (Rs. 10/- each Face Value) |
231.500 |
|
15. |
Reserve excluding
Revaluation Reserves |
0.000 |
|
16. |
Earnings Per Share (EPS)
[before and after extraordinary items] (Rs. 10/- each) |
|
|
a) |
Basic |
12.45 |
|
b) |
Diluted |
12.45 |
|
|
PART-II |
|
|
A. |
PARTICULARS OF
SHAREHOLDING |
|
|
1. |
Public Shareholding |
|
|
|
- Number of Shares |
11242035 |
|
|
- Percentage of
Shareholding |
48.56% |
|
2. |
Promoters and Promoter
Group Shareholding |
|
|
a) |
Pledged / Encumbered |
|
|
|
- Number of shares |
-- |
|
|
- Percentage of shares (as
a % of the total shareholding of promoter and promoter group) |
-- |
|
|
- Percentage of shares (as
a % of the total share capital of the Company) |
-- |
|
b) |
Non - encumbered |
|
|
|
- Number of shares |
11906654 |
|
|
- Percentage of shares (as
a % of the total shareholding of promoter and promoter group) |
100% |
|
|
- Percentage of shares (as
a % of the total share capital of the Company) |
51.44% |
|
|
Particulars |
Quarter
Ended 30.06.2013 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
4 |
|
|
Disposed of during the quarter |
4 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Particulars |
Quarter
Ended |
|
|
30.06.2013 (Unaudited) |
|
1. Segment Revenue |
|
|
a. Yarn |
5824.400 |
|
b. Fabrics |
1078.200 |
|
c. Others |
10.600 |
|
Total |
6913.200 |
|
Less: Inter – segment revenue |
243.900 |
|
Total income from operations (net) |
6669.300 |
|
|
|
|
2. Segment Results |
|
|
Profit/ (loss) before tax and interest |
|
|
a. Yarn |
650.200 |
|
b. Fabrics |
105.800 |
|
Total |
756.000 |
|
Less : i Inter Segment Profit / (Loss) |
325.500 |
|
Less : ii Other unallocable Expenditure net off unallocable income |
3.200 |
|
Total Profit Before Tax |
427.300 |
|
|
|
|
3. Capital Employed |
|
|
(Segment Assets – Segment Liabilities) |
|
|
a. Yarn |
11341.600 |
|
b. Fabrics |
2889.100 |
|
Total |
14230.700 |
|
Other Assets |
1581.000 |
|
Total |
15811.700 |
* Include Captive and Standby Power
Notes:
1. The Auditors have conducted limited review of the financial results for the quarter ended June 30, 2013. The above Financial Results were reviewed by the Audit Committee and thereafter were approved and taken on record by the Board of Directors as its meeting held on 24.07.2013.
2. The figures of the previous period / year have been regrouped / recast wherever considered necessary.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
A. CONTINGENT
LIABILITY NOT PROVIDED FOR : |
|
|
|
(a) Claims against the Company not acknowledged as debt |
4.493 |
4.493 |
|
(b) Guarantees |
|
|
|
(i) Default
deferred payment guarantee to Exim Bank, ICICI, IDBI, Canara Bank, SBI and SBOM
for securing loan given to Cheslind Textiles Limited Outstanding Loan
{Maximum amount for which company may be liable during next 12 Months –
Rs.1.244 Millions} |
84.892 |
81.631 |
|
(ii) Guarantee
in favour of International Finance Corporation with HEG Limited on joint and
several basis on behalf of AD Hydro Power Limited |
60.000 |
60.000 |
|
(iii) Guarantee
by ICICI Bank Limited to LNJ Power Venture Limited |
100.000 |
0.000 |
|
(iv) Bills
discounted with banks |
1024.419 |
915.168 |
|
(c) Other money for
which the Company is contingently liable. |
|
|
|
(i) Excise and
Customs Duties, Sales tax and Other demands disputed by the Company |
29.630 |
27.385 |
|
(ii) Future
Export Obligation Against EPCG |
188.300 |
1099.700 |
FIXED ASSETS:
Tangible Assets
· Free Hold Land
Lease
Hold Land
Buildings
Plant
and Equipments
Furniture
Fixture and Other
Vehicles
Office
Equipments
Electric
Fitting and Water Supply Installation
Intangible Assets
·
Computer Software
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. 63.30 |
|
|
1 |
Rs. 101.36 |
|
Euro |
1 |
Rs. 84.60 |
INFORMATION DETAILS
|
Information
Gathered by : |
NAY |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
5 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this report.
The assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.