MIRA INFORM REPORT
|
Report Date : |
14.11.2013 |
IDENTIFICATION DETAILS
|
Name : |
BANNARI AMMAN SPINNING MILLS LIMITED |
|
|
|
|
Registered
Office : |
252, Mettupalayam Road, Coimbatore – 641043, Tamilnadu |
|
|
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|
Country : |
India |
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|
|
|
Financials (as
on) : |
31.03.2013 |
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|
|
|
Date of
Incorporation : |
10.07.1989 |
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|
|
|
Com. Reg. No.: |
18-002476 |
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|
|
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Capital
Investment / Paid-up Capital : |
Rs. 157.542 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TZ1989PLC002476 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBB03009G/ CMBB03055D |
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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
: |
Manufacture of Cotton Yarn,
Woven and Coated Fabrics and Wind Power Generation |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (46) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 8500000 |
|
|
|
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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|
|
|
Comments : |
Subject is an established company having satisfactory track record. Overall financial position of the company appears to be good. Trade relation reported to be fair. Business is active. Payment terms
are reported to be usually correct. The company can be considered for business dealing 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) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
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 India from 1st November.
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 credit quality and average credit
risk. |
|
Date |
03.09.2013 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A2+ |
|
Rating Explanation |
Strong degree of safety and low credit
risk. |
|
Date |
03.09.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office : |
252, Mettupalayam Road, Coimbatore – 641043, Tamilnadu, India |
|
Tel. No.: |
91-422-2435555 |
|
Fax No.: |
91-422-2434446 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
Spinning
Division 1 NaduKandanur Pirivu, Morepatty Post adamadurai, Dindigul 624 802,
Tamilnadu, India |
|
|
|
|
Factory 2 : |
Spinning
Division 2 Velvarkottai, Dindigul Trichy National Highway 45, Vedasandur Taluk, Dindigul
624 803, Tamilnadu, India |
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|
|
|
Factory 3 : |
Weaving Division Karanampet - Paruvai Road, Paruvai Post, Coimbatore - 641 658,
Tamilnadu, India |
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|
|
|
Factory 4 : |
Technical /
Flocking Division Kovai – Sathy Main Road, Kunnathur Village, Ganesapuram Post, S S
Kulam (Via) Coimbatore – 641107, Tamilnadu, India |
|
|
|
|
Factory 5 : |
Windmill
Division 1 Irukandurai and Dhanakarkulam Villages, Radhapuram Taluk, Tirunelveli
District, Tamilnadu, India |
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|
|
|
Factory 6 : |
Windmill
Division 2 Chinnapudur Village, Dharapuram Taluk Erode District, Tamilnadu, India |
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|
|
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Factory 7 : |
Garments
Division 1 Palladam Hitech Weaving Park, Sukkampalayam Village, K N Puram (Po) Palladam- 641 662, Tamilnadu,
India |
|
|
|
|
Factory 8 : |
Garments
Division 2 Karanampet - Paruvai Road, Paruvai Post, Coimbatore - 641 658,
Tamilnadu, India |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. S. V. Arumugam |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. K N V Ramani |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. C. S. K. Prabhu |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. K R Thillainathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Palaniswami |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Sadhasivam |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A. Senthil |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. N. Krishnaraj |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
|
Category of
Shareholder |
No. of Shares |
% of No. of
Shares |
|
(A) Shareholding of
Promoter and Promoter Group |
|
|
|
|
|
|
|
|
168017 |
1.07 |
|
|
8583233 |
54.48 |
|
|
8751250 |
55.55 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
8751250 |
55.55 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
286214 |
1.82 |
|
|
286214 |
1.82 |
|
|
|
|
|
|
2172785 |
13.79 |
|
|
|
|
|
|
1434128 |
9.10 |
|
|
3014548 |
19.13 |
|
|
95344 |
0.61 |
|
|
4667 |
0.03 |
|
|
90675 |
0.58 |
|
|
2 |
0.00 |
|
|
6716805 |
42.63 |
|
Total Public
shareholding (B) |
7003019 |
44.45 |
|
Total (A)+(B) |
15754269 |
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) |
15754269 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Cotton Yarn,
Woven and Coated Fabrics and Wind Power Generation |
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Installed Capacity |
Actual Production |
|
|
|
|
|
|
Yarn |
Kgs |
143232 Spindles |
22234774 |
|
Cotton Waste |
Kgs |
-- |
7169957 |
|
Fabrics |
Mtrs |
135 Looms |
8896448 |
|
Wind Energy |
Units |
29950 KWh |
53759006 |
|
Processing |
|
2400000 Mtrs per
years |
-- |
|
Coated Fabric |
Mtrs |
-- |
1883855 |
|
Quick Dr |
Mtrs |
-- |
211754 |
|
Canvass |
Mtrs |
-- |
80369 |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· The Karur Vysya Bank Limited · Corporation Bank · ICICI Bank Limited · Oriental Bank of Commerce · Indian Overseas Bank · Bank of Maharashtra · Indian Bank · IDBI Bank · Allahabad Bank |
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Facilities : |
(Rs.
In Millions)
|
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Banking Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
P N Raghavendra Rao and Company Chartered Accountants |
|
Address : |
Coimbatore – 641009, Tamilnadu, India |
|
|
|
|
Internal Auditors |
|
|
Name : |
Srivatsan and Gita Chartered Accountant |
|
Address : |
Coimbatore – 641018, Tamilnadu, India |
|
|
|
|
Cost Auditors |
|
|
Name : |
M Nagarajan Chartered Accountant |
|
Address : |
Coimbatore – 641018, Tamilnadu, India |
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|
|
|
Related Parties : |
·
Shiva Texyarn Limited ·
Anamallais Automobiles Private Limited ·
Annamallai Infrastructures Limited ·
Bannari Amman Flour Mill Limited ·
Sakthi Murugan Transports Limited · Young Brand Apparel Private Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16000000 |
Equity Shares |
Rs.10/- each |
Rs. 160.000 Millions |
|
50000 |
Cumulative Preference Shares |
Rs.100/- each |
Rs. 5.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 165.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15754269 |
Equity Share |
Rs.10/- each |
Rs. 157.543
Millions |
|
|
|
|
|
NOTE:
Reconciliation of
shares outstanding at the beginning and at the end of the reporting period
|
Name of the Share
holder |
As at 31.03.2013 |
|
|
No. of shares |
Amount in Millions |
|
|
Equity Shares |
|
|
|
At the beginning of the period |
1,57,54,269 |
157.543 |
|
At the end of the period |
1,57,54,269 |
157.543 |
Terms/rights attached
to the equity shares
The company has issued only one class of equity shares having a face value of Rs.10 per equity share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of the Shareholders in ensuing Annual General Meeting.
Details of
shareholders holding more than 5% shares in the company
|
Name of the Share
holder |
As at 31.03.2013 |
|
|
No. of shares |
% of holding |
|
|
Equity Shares |
|
|
|
Murugan Enterprises Private Limited |
78,03,733 |
49.53 |
|
Gagandeep Credit Capital Private Limited |
9,13,122 |
5.80 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
157.542 |
157.542 |
157.542 |
|
(b) Reserves & Surplus |
1992.246 |
1755.928 |
1919.690 |
|
(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) |
2149.788 |
1913.470 |
2077.232 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2483.936 |
2641.894 |
3080.318 |
|
(b) Deferred tax liabilities (Net) |
524.071 |
390.009 |
566.798 |
|
(c) Other long term liabilities |
10.887 |
11.273 |
11.703 |
|
(d) long-term provisions |
0.000 |
10.736 |
12.788 |
|
Total Non-current
Liabilities (3) |
3018.894 |
3053.912 |
3671.607 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
663.210 |
891.708 |
1470.658 |
|
(b) Trade payables |
328.204 |
387.439 |
294.013 |
|
(c) Other current liabilities |
732.581 |
682.894 |
631.927 |
|
(d) Short-term provisions |
46.591 |
4.868 |
42.284 |
|
Total Current Liabilities
(4) |
1770.586 |
1966.909 |
2438.882 |
|
|
|
|
|
|
TOTAL |
6939.268 |
6934.291 |
8187.721 |
|
|
|
|
|
|
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
4422.841 |
4637.892 |
4805.698 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
69.633 |
15.180 |
5.159 |
|
(iv) Foreign Currency Monetary Items Translation Reserve A/c |
32.083 |
50.471 |
0.000 |
|
(b) Non-current Investments |
226.671 |
174.926 |
174.926 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
354.516 |
358.528 |
365.676 |
|
(e) Other Non-current assets |
26.492 |
33.407 |
35.107 |
|
Total Non-Current
Assets |
5132.236 |
5270.404 |
5386.566 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
908.501 |
992.261 |
1984.876 |
|
(c) Trade receivables |
446.436 |
326.179 |
369.259 |
|
(d) Cash and cash equivalents |
218.988 |
124.704 |
53.944 |
|
(e) Short-term loans and advances |
184.871 |
141.795 |
108.126 |
|
(f) Other current assets |
48.236 |
78.948 |
284.950 |
|
Total Current Assets |
1807.032 |
1663.887 |
2801.155 |
|
|
|
|
|
|
TOTAL |
6939.268 |
6934.291 |
8187.721 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
5597.151 |
4597.251 |
5454.887 |
|
|
|
Other Income |
10.925 |
22.577 |
162.198 |
|
|
|
TOTAL (A) |
5608.076 |
4619.828 |
5617.085 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
3197.467 |
3179.821 |
3608.447 |
|
|
|
Purchases of stock-in-trade |
65.740 |
10.007 |
61.372 |
|
|
|
Changes in inventories of finished goods, work-in-progress and stock-in-trade |
104.271 |
231.154 |
(409.613) |
|
|
|
Employee benefits expenses |
256.869 |
189.712 |
168.143 |
|
|
|
Other expenses |
838.440 |
650.105 |
720.605 |
|
|
|
TOTAL (B) |
4462.787 |
4260.799 |
4148.954 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1145.289 |
359.029 |
1468.131 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
380.481 |
326.383 |
257.291 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
764.808 |
32.646 |
1210.840 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
357.566 |
372.262 |
372.003 |
|
|
|
|
|
|
|
|
|
Less |
DEFERRED TAX ASSET
ON ABOVE WITHDRAWN |
0.000 |
0.000 |
166.906 |
|
|
|
|
|
|
|
|
|
|
PROFIT /(LOSS)
BEFORE TAX (E-F) (G) |
407.242 |
(339.616) |
671.931 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
134.061 |
(175.855) |
283.891 |
|
|
|
|
|
|
|
|
|
|
PROFIT /(LOSS)
AFTER TAX (G-H) (I) |
273.181 |
(163.761) |
388.040 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(61.125) |
102.636 |
51.337 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Provision for Equity Dividend |
31.509 |
0.000 |
31.508 |
|
|
|
Provision for Tax on Dividend |
5.355 |
0.000 |
5.233 |
|
|
|
Transfer to General Reserve |
100.000 |
0.000 |
300.000 |
|
|
BALANCE CARRIED
TO THE B/S |
75.192 |
(61.125) |
102.636 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
2323.060 |
1825.083 |
1391.147 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
337.031 |
182.200 |
245.601 |
|
|
|
Capital Goods |
117.487 |
44.336 |
90.654 |
|
|
TOTAL IMPORTS |
454.518 |
226.536 |
336.255 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.34 |
(10.39) |
24.63 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.87 |
(3.55) |
6.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
7.28 |
(7.39) |
12.31 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.17 |
(5.07) |
8.39 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.19 |
(0.18) |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.46 |
1.85 |
2.20 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.02 |
0.85 |
1.15 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Long-term maturities of finance lease obligations |
12.237 |
13.972 |
|
|
|
|
|
Total |
12.237 |
13.972 |
REVIEW OF OPERATIONS
SPINNING DIVISION
During the year , the Spinning Mills produced 17790.26 tonnes (14696.59 tonnes) inclusive of purchased quantity 226.97 tonnes (56.68 tonnes) of Yarn and sold 17286.64 tonnes (16136.67 tonnes) of Yarn. The sales include 9337.58 tonnes (8603.05 tonnes) by way of Export. The total sales of this division amounted to Rs. 4021.094 Millions (Rs. 3448.974 Millions) of which export sales amounted to Rs. 2049.979 Millions (Rs. 1838.230 Millions) constituting 50.98% (53.30%) of the total revenue.
WEAVING DIVISION
The Weaving Division specializes in manufacturing wider-width cotton fabric. During the year, 61.28 Lakh metres (66.93 Lakh Metres) of Fabric were produced and 69.58 Lakh Metres (70.21 Lakh metres) of Fabric were sold.
WIND MILL DIVISION
The company has 4 windmills of 1250 KW each totaling 5MW in Radhapuram Taluk, Tirunelveli District, Tamilnadu, 25 Nos windmills, each of 800 KW capacity totaling 20 MW capacity in Dharapuram Taluk, Tirupur District and Palani Taluk, Dindigul District, Tamilnadu and 3 Windmills of 1650 KW each in Kongalnagaram, Udumalpet Taluk, Tirupur District, Tamilnadu. The total installed capacity of Windmills is 29.95 MW and the whole of the power generated is captively consumed by the Spinning Units. The windmills produced 618.25 Lakh units of wind energy as against 528.55 lakh units produced in the last year.
PROCESSING AND
TECHNICAL TEXTILES DIVISION
During the year , 7.74 Lakh Metres (16.03 Lakh Metres) of Coated Fabric were produced and 8.81 Lakh metres (16.52 Lakh Metres) of Coated Fabric were sold. During the year 2.53 Lakh metres of Canvas were produced end 2.50 Lakh metres of Canvas were sold. The end products/applications of these fabrics include Home Textiles, upholstery, apparel fabric, performance and industrial fabric. During the year, 0.37 Lakh Metres (3.35 Lakh Metres) of Breathable water proof Fabric were produced and 0.74 Lakh metres (3.46 Lakh metres) were sold under the Brand name Quick dry.
MANAGEMENT DISCUSSION
AND ANALYSIS
COMPANY'S BUSINESS
The Company's business is manufacture of Cotton yarn, woven and coated fabrics, Garments, Processing and wind power generation. The company has two modern spinning units near Dindigul, Tamilnadu with installed capacity of 1,44,240 spindles, Weaving unit near Palladam, Tamilnadu with installed capacity of 135 Looms, Processing and Technical Textiles near Annur, Tamilnadu with capacity to produce 24 Lakhs meters of coated fabric per annum and 32 windmills with installed capacity 29.95 MW of Power. The whole of the power produced by the wind mills is captively consumed by the spinning units.
INDUSTRY STRUCTURE
AND DEVELOPMENTS
Contribution of Indian Textile Industry is about 11 percent to industrial production, 14 per cent to the manufacturing sector, 4 percent to the GDP and 12 per cent to the country's total export earnings. It provides direct employment to over 35 million people, the second largest provider of employment after agriculture. Besides, another 54.85 million people are engaged in its allied activities.
Indian textile and clothing industry is the second largest producer of cotton and yarn in the world. The Indian textile industry is amongst the very few in the world that is truly vertically integrated from raw material to finished products (from fibre to retail). Indian textile industry has leveraged its strong manufacturing position to improve its export performance.
India is one of the largest exporters of readymade garments and made-ups to the World. India is considered as the second most preferred destination for major global retailers due to its strength of vertical and horizontal integration. India's position has improved from being the 9th largest exporter of textiles and clothing in 1999 to becoming the 5th largest exporter in 2008. India has emerged as an important sourcing base for leading brands. The strength of the country's products is reflected in the repeat orders from these brands / companies and increase in their outsourcing from India.
Overall demand outlook for the textile industry for the financial year 2013-14 is expected to remain stable; the commodity prices and exchange rates being key factors for the industry. However, with the US and EU accounting for more than 70% of Indian apparel exports, the concerns over the economic health of these countries continues to put pressure on the Indian apparel exporters in the medium term.
SEGMENT-WISE AND
PRODUCT-WISE PERFORMANCE
The entire operations of the Company relate to only one segment viz Textiles therefore, segment/product-wise details are not applicable.
OUTLOOK
With the optimum utilization of very modern machinery and the measures taken by the company overcome Power crisis, it is expected that the Company would be able to improve efficiency. The company has been taking steps to increase the export sales as well as up-country sales for improving the sales turnover.
AUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2012
(Rs.
In Millions)
|
Particulars |
30.06.2013(Audited) |
|
|
Quarter Ended |
|
Net Sales/ Income from Operations |
1443.211 |
|
Other Operating Income |
19.013 |
|
Total income
from operation |
1462.224 |
|
Expenditure |
|
|
a) Cost of Materials Consumed |
918.403 |
|
b) Purchase of Stock in trade |
-- |
|
c) Change in inventories of finished goods, work in progress & stock in trade |
(108.189) |
|
d) Employee benefits expense |
69.430 |
|
e) Power and Fuel expenses |
118.227 |
|
f) Depreciation and amortization expense |
89.503 |
|
g) Other expenses |
127.873 |
|
Total |
1215.246 |
|
Profit from
operations before Other Income, Interest and Exceptional Items (1-2) |
246.978 |
|
Other Income |
0.530 |
|
Profit before Interest and Exceptional Items (3+4) |
247.508 |
|
Interest |
94.515 |
|
Profit after Interest but before Exceptional Items (5-6) |
152.993 |
|
Exceptional Items |
-- |
|
Profit (+)/ Loss (-) from Ordinary Activities before tax (7+8) |
152.993 |
|
Tax expense |
49.206 |
|
Net Profit (+)/ Loss (-) from Ordinary Activities after tax (9-10) |
103.787 |
|
Extraordinary Items (Net of tax expense) |
-- |
|
Net Profit (+)/ Loss (-) for the period |
103.787 |
|
Paid-up equity share capital (Face value of Rs.10/- each) |
157.543 |
|
Reserves excluding Revaluation Reserves as per balance sheet of
previous accounting year |
-- |
|
Earnings per
share |
|
|
Before Extraordinary items (not annualized) |
|
|
- Basic (Rs.) |
6.59 |
|
- Diluted (Rs.) |
6.59 |
|
Public Shareholding |
|
|
- No. of shares |
7,003,019 |
|
- Percentage of shareholding |
44.45% |
|
Promoters and promoter group shareholding |
|
|
Pledged/ Encumbered |
|
|
- No. of shares |
Nil |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
Nil |
|
- Percentage of shares (as a % of the total share capital of the company) |
Nil |
|
Non-encumbered |
|
|
- No. of shares |
8,751,250 |
|
- Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
55.55% |
|
- Percentage of shares (as a % of the total share capital of the company) |
100% |
|
|
|
|
INVESTOR
COMPLAINTS |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
Nil |
|
Disposed during the quarter |
Nil |
|
Remaning unresolved at the end of the quarter |
Nil |
NOTE:
- The above results have been reviewed by the Audit Committee at its meeting held on 10.08.2013 and approved by the Board of Directors in the meeting held on 12.08.2013.
- The Statutory Auditors of the company have carried out carried out limited review of the above quarterly results.
- The entire business of the company relate tc only one segment. Viz., Textiles.
- The previous quarter figures have been recast wherever necessary in accordance with the listing Agreement/ Accounting standard 25 – Interim financial reporting. The power charges are shown based on consumption actually adjusted.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10379309 |
09/10/2012 * |
400,000,000.00 |
ICICI BANK LIMITED |
CHERAN PLAZA, 1ST FLOOR, 1090, TRICHY ROAD, COIMBATORE, TAMIL NADU - 641018, INDIA |
B59558296 |
|
2 |
10269574 |
17/02/2011 |
250,000,000.00 |
ICICI BANK LIMITED |
CHERAN PLAZA, I FLOOR, 1090, TRICHY ROAD, COIMBATORE, TAMIL NADU - 641018, INDIA |
B06817647 |
|
3 |
10261570 |
09/05/2012 * |
450,000,000.00 |
ALLAHABAD BANK |
98 MECRICAR ROAD, R S PURAM, COIMBATORE, TAMIL NADU - 641002, INDIA |
B39241567 |
|
4 |
10203400 |
17/02/2010 |
300,000,000.00 |
IDBI BANK LIMITED |
72, MAYFLOWER, 'E' CASTLE, DR BALASUNDARAM ROAD, |
A79869087 |
|
5 |
10113425 |
28/01/2012 * |
1,392,900,000.00 |
INDIAN BANK |
31, VARIETY HALL ROAD, P O BOX NO:65 MAIN BRANCH, COIMBATORE, TAMIL NADU - 641001, INDIA |
B32121477 |
|
6 |
10092799 |
20/12/2007 |
400,000,000.00 |
INDIAN OVERSEAS BANK |
125, D B ROAD, R S PURAM, COIMBATORE, TAMIL NADU- 641002, INDIA |
A34351296 |
|
7 |
10046357 |
10/07/2010 * |
570,000,000.00 |
BANK OF MAHARASHTRA |
194/1, RANGAI GOWDER STREET, NEAR TEPPAKULAM, COIMBATORE, TAMIL NADU - 641001, INDIA |
A90761305 |
|
8 |
10032654 |
10/07/2010 * |
750,000,000.00 |
ORIENTAL BANK OF COMMERCE |
1057, JAYA ENCLAVE, AVINASHI ROAD, COIMBATORE, TAMIL NADU - 641018, INDIA |
A89912000 |
|
9 |
10011950 |
27/06/2006 |
18,750,000.00 |
CORPORATION BANK |
816, OPPANAKARA STREET,, COIMBATORE, TAMIL NADU - 641001, INDIA |
A02898864 |
|
10 |
10001306 |
10/07/2010 * |
300,000,000.00 |
CORPORATION BANK |
816, OPPANAKARA STREET, COIMBATORE, TAMIL NADU - 6 |
A89921134 |
|
11 |
10001714 |
14/07/2010 * |
2,087,100,000.00 |
INDIAN OVERSEAS BANK |
1027- AVINASHI ROAD, NEAR VOC GROUND, UPPILIPALAYAM, COIMBATORE, TAMIL NADU - 641018, INDIA |
A89922975 |
|
12 |
10000025 |
10/07/2010 * |
1,500,000,000.00 |
ORIENTAL BANK OF COMMERCE |
1057, JAYA ENCLAVE, AVINASHI ROAD, COIMBATORE, TAMIL NADU - 641018, INDIA |
A89912638 |
|
13 |
90004460 |
16/09/2004 |
180,000,000.00 |
ICICI BANK LIMITED |
LANDMARK, RACE COURSE CIRCLE, VDODARA, GUJARAT - |
- |
|
14 |
90001614 |
04/08/2005 * |
179,200,000.00 |
CORPORATION BANK |
816; OPPANAKARA STREET, COIMBATORE, TAMIL NADU, INDIA |
- |
|
15 |
90003184 |
01/06/2011 * |
695,000,000.00 |
CORPORATION BANK |
816, OPPANAKARA STREET, COIMBATORE, TAMIL NADU - 641001, INDIA |
B14589899 |
|
16 |
80063829 |
03/09/2004 * |
78,000,000.00 |
THE KARUR VYSYA BANK LIMITED |
OPPANAKKARA STREET, , COIMBATORE, TAMIL NADU - 641001, INDIA |
- |
FIXED ASSETS:
· Land and Site Development
· Building
· Plant and Machinery
· Office Equipments
· Furniture and Fittings
· Vehicles
· Tools and Implements
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. 63.65 |
|
|
1 |
Rs. 101.17 |
|
Euro |
1 |
Rs. 85.55 |
INFORMATION DETAILS
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
46 |
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.