MIRA INFORM REPORT
|
Report Date : |
11.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
GARWARE WALL ROPES LIMITED |
|
|
|
|
Registered
Office : |
Plot No.11, Block D-1, MIDC, Chinchwad, Pune – 411 019, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
01.04.1976 |
|
|
|
|
Com. Reg. No.: |
11-018939 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.237.084
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L25209MH1976PLC018939 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMG08397E MUMG08396D |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACG1377P |
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|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges. |
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|
Line of Business
: |
Subject is engaged in manufacturing and selling various technical-textile products such as Ropes, Twine, Yarn, Fishnet and Other Nets. |
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|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 10000000 |
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|
|
|
Status : |
Good |
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|
|
|
Payment Behaviour : |
Regular |
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|
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|
Litigation : |
Clear |
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|
Comments : |
Subject is a well established and reputed company having fine track
record. General financial position is good. Trade relations are reported as fair.
Payments are reported to be regular and as per commitments. The company can be considered for normal 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) |
|
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
We are living in a world
where volatility and uncertainty have become the New Normal. We saw a
change of government in countries like Tunisia, Egypt, Libya and Vietnam. Once
powerful countries in Europe are now fighting for bankruptcy. We have
taken growth in the developing part of the world for granted but economic
growth in China and India has begun to slow. Companies that were synonymous
with their product categories just a few years ago are now no longer in
existence. Kodak, the inventor of the digital camera had to wind up its
operations, HMV, the British entertainment retailing company and Borders, once
the second largest bookstore have shut down due to their inability to evolve
their business models with the changing time. Readers’ Digest, Thomson Register
are no more !
There is another
megatrend happening. The World order is changing as economic power shifts from
West to East. According to McKinsey study, it took Britain more than 100 years
to double its economic output per person during its industrial revolution and the
US later took more than 50 years to do the same. More than a century later,
China and India have doubled their GDP per capital in 12 and 18 years
respectively. By 2020, emerging Asia will become the world’s largest consuming
block, overtaking North America.
The years after the
outbreak of the global financial crisis, the world economy continues to remain
fragile. The Indian economy demonstrated remarkable resilience in the initial years
of the contagion but finally lost ground last year. GDP growth slowed down.
Currency has been weakening. There is a marked deceleration in agriculture,
industry and services. Dampening sentiment led to a cut-back in investment as
well as private consumption expenditure. Inflation remained at high
levels fuelled by the pressure from the food and fuel sectors. The large fiscal
and current account deficit s continued to cause grave concern. It is
imperative that India regains its growth trajectory of 8-9 % sooner than later.
This is crucially important given the need to create gainful livelihood
opportunities for the millions living in poverty as also the large contingent
of young people joining the job market every year.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limit: A+ |
|
Rating Explanation |
Having adequate degree of safety regarding
timely servicing of financial obligations. |
|
Date |
November, 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.
LOCATIONS
|
Registered Office/ Factory 1 : |
Plot No.11, Block D-1, MIDC, Chinchwad, Pune – 411 019, |
|
Tel. No.: |
91-20-30780000/ 30780195 |
|
Fax No.: |
91-20-30780350/ 30780341 |
|
E-Mail : |
|
|
Website : |
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|
|
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|
Factory 2 : |
Plot No.C-1 and B-226, MIDC, Wai, District Satara – 412 803, |
|
Tel No.: |
91-2167-308301/ 02 |
|
|
|
|
Factory 3 : |
Plot No.75, 80, 81 and 86, Danudyog Sahakari Sangh Limited, Piparia,
Amli – 396 230, |
|
Tel No.: |
91-260-2640867 |
|
|
|
|
Mumbai Office 1 : |
Chowpatty Chambers, |
|
Tel No.: |
91-22-23631388 |
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|
|
|
Mumbai Office 2 : |
39, S.K. Hafizuddin Marg, Byculla, Mumbai – 400 008, |
|
Tel No.: |
91-22-23091164/ 68 |
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|
|
|
Foreign Branch Office : |
Narrows Reach Business Centre, |
DIRECTORS
As on: 31.03.2013
|
Name : |
Late Mr. B.D. Garware |
|
Designation : |
Founder Chairman |
|
|
|
|
Name : |
Mr. R.B. Garware |
|
Designation : |
Chairman Emeritus |
|
Date of Birth/ Age : |
71 Years |
|
Qualification : |
Educated
in a Public School called Dulwich College, U.K., Graduated with Honors Degree
in Moral Sciences and Law from Jesus College, Cambridge, Brief Course in
French at Sorbonne in Paris. |
|
Experience : |
48 Years |
|
Date of Appointment : |
01.11.2006 |
|
|
|
|
Name : |
Mr. V.R. Garware |
|
Designation : |
Chairman and Managing Director |
|
Date of Birth/ Age : |
40 Years |
|
Qualification : |
Graduate
Cum Laude in BSc Economics (Specialisation in Finance) from Wharton Business
School of University of Pennsylvania, U.S.A. |
|
Experience : |
16 Years |
|
Date of Appointment : |
07.12.1995
|
|
|
|
|
Name : |
Mr. P N. Shah |
|
Designation : |
Board of Directors |
|
|
|
|
Name : |
Ms. Diya Garware Ibanez |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R.M. Telang |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S.P. Kulkarni |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. P.M.
Chandrachud |
|
Designation : |
President
(U.S.A. Br.) |
|
Date of Birth/ Age : |
61 Years |
|
Qualification : |
B.E |
|
Experience : |
38 Years |
|
Date of Appointment : |
10.01.1998 |
|
|
|
|
Name : |
Mr. M.V.
Subbarao |
|
Designation : |
President |
|
Date of Birth/ Age : |
61 Years |
|
Qualification : |
B. Tech.,
Madras, Post Graduate Diploma in Business Management from XLRI, Jamshedpur |
|
Experience : |
32 Years |
|
Date of Appointment : |
11.12.2002 |
|
|
|
|
Name : |
Mr. A. M. Boradkar |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. C. Puranadare |
|
Designation : |
Finance Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.06.2013
|
Category of
Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3630817 |
15.31 |
|
|
7411194 |
31.26 |
|
|
11042011 |
46.57 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
11042011 |
46.57 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
11300 |
0.05 |
|
|
1914 |
0.01 |
|
|
1221988 |
5.15 |
|
|
939000 |
3.96 |
|
|
2174202 |
9.17 |
|
|
|
|
|
|
1253278 |
5.29 |
|
|
|
|
|
|
5548885 |
23.40 |
|
|
2512881 |
10.60 |
|
|
1177093 |
4.96 |
|
|
179093 |
0.76 |
|
|
998000 |
4.21 |
|
|
10492137 |
44.26 |
|
Total Public shareholding (B) |
12666339 |
53.43 |
|
Total (A)+(B) |
23708350 |
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) |
23708350 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in manufacturing and selling various technical-textile products such as Ropes, Twine, Yarn, Fishnet and Other Nets. |
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Products : |
|
PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity p.a.
|
Installed
Capacity * p.a.
|
Actual
Production ** |
|
Twines, Ropes and Yarns |
M.T. |
N.A. |
31680 |
26440 |
|
Nettings |
M.T. |
N.A. |
8724 |
7461 |
|
Woven Fabric |
M.T. |
N.A. |
400 |
826 |
|
Metal Gabions |
M.T. |
N.A. |
5400 |
998 |
|
Machineries and Parts |
Nos. |
N.A. |
N.A. |
# 18 |
Notes:
* The figures for installed capacities are as
certified by the whole time director and being a technical matter, have not
been verified by the auditors.
** The actual production includes production
needed for other products/ division and processed through job works.
# Machinery production includes 17 machines
produced for captive consumption.
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
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Banking
Relations : |
-- |
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|
|
|
Auditors : |
|
|
Name : |
Patki and Soman Chartered Accountants |
|
Address : |
639 Sadashiv Peth, |
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|
|
|
Solicitors and Advocates : |
Talwar Thakore and Associates |
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|
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Associates Companies: |
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|
|
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Subsidiary / Joint Venture Companies: |
|
|
|
|
|
Enterprises Owned or Significantly Influenced by Key Management
Personnel or Their Relatives: |
|
|
|
|
|
Enterprises Owned or Significantly Influenced by Key Management
Personnel or Their Relatives where no transactions are entered during the year: |
|
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5,00,00,000 |
Equity Shares |
Rs.10/- each |
Rs. 500.000 Millions |
|
1,00,00,000 |
Unclassified Shares |
Rs.10/- each |
Rs. 100.000 Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 600.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,37,08,350 |
Equity Shares |
Rs.10/- each |
Rs. 237.084
Millions |
|
|
|
|
|
NOTE:
|
Reconciliation of
Number of Shares |
31.03.2013 |
|
|
|
Number of Shares |
Rs. In Millions |
|
Equity Shares |
|
|
|
Opening Balance |
23,708,350 |
237.084 |
|
Changes during the year |
-- |
-- |
|
Closing Balance |
23,708,350 |
237.084 |
Details of Shareholders'
holding more than
5% Shares in
the Company
|
Particulars |
31.03.2013 |
|
Equity Shares |
|
|
Ramesh B. Garware |
3,612,053 15.24% * |
|
Garware Capital Markets Limited |
3,453,911 14.57% |
* 9.22% (Previous year 4.24%) shares are held on behalf of a partnership
firm.
Shares
allotted as fully
paid up by
way of Bonus Shares (during
5 years preceding
31st March 2013): Nil
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 |
237.084 |
237.084 |
237.084 |
|
(b) Reserves & Surplus |
2429.778 |
2267.154 |
2110.429 |
|
(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) |
2666.862 |
2504.238 |
2347.513 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
244.740 |
420.004 |
78.926 |
|
(b) Deferred tax liabilities (Net) |
181.436 |
179.896 |
177.696 |
|
(c) Other long term liabilities |
30.564 |
29.783 |
27.917 |
|
(d) long-term provisions |
16.797 |
14.505 |
13.725 |
|
Total Non-current
Liabilities (3) |
473.537 |
644.188 |
298.264 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
832.177 |
830.887 |
1030.604 |
|
(b) Trade payables |
575.658 |
535.263 |
482.989 |
|
(c) Other current liabilities |
374.202 |
406.915 |
390.270 |
|
(d) Short-term provisions |
849.462 |
810.024 |
743.350 |
|
Total Current
Liabilities (4) |
2631.499 |
2583.089 |
2647.213 |
|
|
|
|
|
|
TOTAL |
5771.898 |
5731.515 |
5292.990 |
|
|
|
|
|
|
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1452.395 |
1577.691 |
1414.101 |
|
(ii) Intangible Assets |
89.010 |
87.392 |
89.214 |
|
(iii) Capital work-in-progress |
3.511 |
33.438 |
54.184 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
91.695 |
91.196 |
89.218 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
108.852 |
94.855 |
107.129 |
|
(e) Other Non-current assets |
16.978 |
7.910 |
8.345 |
|
Total Non-Current
Assets |
1762.441 |
1892.482 |
1762.191 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1217.934 |
1234.346 |
1376.586 |
|
(c) Trade receivables |
1551.442 |
1495.561 |
1341.982 |
|
(d) Cash and cash equivalents |
197.628 |
235.303 |
18.367 |
|
(e) Short-term loans and advances |
1042.453 |
873.823 |
793.864 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
4009.457 |
3839.033 |
3530.799 |
|
|
|
|
|
|
TOTAL |
5771.898 |
5731.515 |
5292.990 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
5993.680 |
5782.682 |
4989.462 |
|
|
|
Other Income |
57.094 |
33.434 |
23.697 |
|
|
|
TOTAL (A) |
6050.774 |
5816.116 |
5013.159 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
2353.105 |
2270.319 |
1992.801 |
|
|
|
Purchase of Traded Goods |
261.883 |
311.691 |
357.760 |
|
|
|
(Increase)/Decrease in inventories of Finished Goods, Work-in-Progress and Traded Goods |
31.850 |
(63.815) |
(157.854) |
|
|
|
Employee Benefit Expense |
791.559 |
793.604 |
653.665 |
|
|
|
Operation and Other Expenses |
1970.331 |
1857.528 |
1617.109 |
|
|
|
TOTAL (B) |
5408.728 |
5169.327 |
4463.481 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
642.046 |
646.789 |
549.678 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
144.801 |
166.062 |
89.158 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
497.245 |
480.727 |
460.520 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
163.244 |
160.192 |
148.398 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
334.001 |
320.535 |
312.122 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
87.262 |
80.478 |
67.795 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
246.739 |
240.057 |
244.327 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1186.101 |
1039.030 |
888.091 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
24.700 |
24.100 |
24.500 |
|
|
|
Dividend |
59.271 |
59.271 |
59.271 |
|
|
|
Tax on Dividend |
10.073 |
9.615 |
9.617 |
|
|
BALANCE CARRIED
TO THE B/S |
1338.796 |
1186.101 |
1039.030 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exporter |
2541.456 |
2458.447 |
1778.450 |
|
|
TOTAL EARNINGS |
2541.456 |
2458.447 |
1778.450 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
691.583 |
652.424 |
632.694 |
|
|
|
Stores & Spares |
223.195 |
168.871 |
141.585 |
|
|
|
Capital Goods |
11.941 |
92.822 |
30.032 |
|
|
TOTAL IMPORTS |
926.719 |
914.117 |
804.311 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
10.41 |
10.31 |
10.31 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 1st
Quarter |
|
Net Sales |
1493.300 |
|
Total Expenditure |
1311.500 |
|
PBIDT (Excl OI) |
181.800 |
|
Other Income |
3.000 |
|
Operating Profit |
184.800 |
|
Interest |
51.700 |
|
Exceptional Items |
0.000 |
|
PBDT |
133.100 |
|
Depreciation |
39.500 |
|
Profit Before Tax |
93.700 |
|
Tax |
31.600 |
|
Provisions and contingencies |
0.00 |
|
Profit After Tax |
62.100 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
62.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.08 |
4.12 |
4.87 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.57 |
5.54 |
6.26 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.88 |
5.71 |
6.06 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.12 |
0.12 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.41 |
0.50 |
0.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.52 |
1.49 |
1.33 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
|
Unsecured Loan |
As on 31.03.2013 |
As on 31.03.2012 |
|
Short term
borrowings |
|
|
|
Cash Credit, Rupee Loan and Rupee Packing Credit |
59.034 |
19.051 |
|
Packing Credit in Foreign Currency Loan |
137.018 |
6.525 |
|
|
|
|
|
Total |
196.052 |
25.576 |
2012-2013 THE YEAR
The Company earned revenue of Rs. 6030.500 Millions for the year ended 31st March, 2013, as against Rs. 5808.200 Millions in the previous year. Export sales stood at Rs. 2629.900 Millions, whereas domestic sales amounted to Rs. 3400.600 Millions for the year ended 31st March, 2013. The year was one of the most challenging in recent times, due to rise in raw material costs, increases in power tariffs, manpower and interest costs. These were passed on to customers over the period but impacted margins besides price competitiveness of the Company. The unprecedented economic uncertainty across the globe impacted demand for the Company's products. However, they continue to be one of the largest manufacturers of their products in the world and their marketing strategy aimed at new products and new markets has enabled growth in market share in the international market. The new business segments of coated fabrics and agri-tech products are showing promising performance.
Despite the constraints and challenging environment, the Company earned the Net Profit after Tax of Rs. 246.700 Millions in the year, with a marginal improvement of 2.8%, compared to previous year, even after higher incidence of tax.
MANAGEMENT DISCUSSION
AND ANALYSIS
OVERVIEW OF COMPANY
The Company, Subject, is one of India's players in Technical Textiles. The Company uses an extensive range of polymers to provide application focused solutions for customers around the world in fishing, mooring, sports, habitat, infrastructure, geo-synthetics, agriculture, defence and transportation sectors. The Company makes ropes, nets and acquaculture cages for capturing and growing fish; nets for sports such as tennis and soccer used in prestigious tournaments across the globe; nets for protected cultivation for high-value agriculture; coated fabrics for hanger covers, awnings, exhibition covers etc.; and soil management products and solutions for infrastructure, waste management, water management and erosion-control projects.
The Company's customers are located across all continents in over 75 countries. End-users include fishermen, farmers, engineers, oil drillers, packers, transporters, construction companies, municipalities, government organisations, shipping companies, clubs, universities and manufacturing plants. The key to maintaining end-user loyalty and support has been continuous focus on the Company's mission : Provide innovative, application-focused solutions to enhance value of their customers globally.
The Company's sales are spread across several verticals and geographies, providing stability and hedge against business and economic trends, and thereby a steady stream of revenue and profitability.
Users of the Company products are serviced through branches, depots, dealers, associates and partners located in strategically relevant and in even extremely remote places across the globe. Supply of products and services is done from three large integrated manufacturing facilities in Pune, Wai and Silvassa. Marketing offices in USA, UK, Russia and Canada improve customer responsiveness in their time zones and to local needs.
The Company has built a strong team of people with domain knowledge and functional specialisation, with sharp customer focus and contact.
During the last decade, the Company has been able to achieve dominant share of markets in India as well as Canada, USA, Great Britain, Norway, New Zealand and Australia, for several products.
BUSINESS ENVIRONMENT
IN FY 2012-13
FY 2012-13 was one of the most turbulent years for the global economy. Unfavourable economic conditions in Europe and USA continued to impact developing countries. Europe is one of the largest markets for the Company's products outside India and the economic difficulties faced by the Eurozone significantly impacted demand for the Company's products. China and India were able to weather the headwinds with heavy fiscal stimuli in 2008-09 and there was strong domestic consumption in India. However, in the year, fiscal stimulus was not viable due to inflation, and domestic consumption could not maintain its level. Hence, domestic business could not counter the slowdown experienced by the Company in the Eurozone.
Demand in India was tepid with all sectors including shipping and infrastructure slowing down, as a result of policy paralysis and global trends. Domestic fishery saw a severe seasonal cycle normally seen once in five to six years, and was impacted by sluggish cash flow from overseas buyers. Geo-textile business, which is driven entirely by the infrastructure focus of the government, was sluggish except for specific areas like erosion control and landfill lining.
Despite these macro issues, the Company could compensate the negative trends to a fair degree, with innovative products and exploration of new business segments. There was significant focus on addition of new customers throughout the globe to compensate the contraction in traditional markets. New businesses also were able to grow and offset the slowdown to some extent. New products launched in the aquaculture industry were successful.
COMPANY'S PERFORMANCE
IN FY 2012-13
Subject registered total revenue of Rs. 6050.800 Millions for the year ended 31st March, 2013, an increase of 4.0% over the previous year's revenue. Export revenue accounted for 43.5% of the total revenue. Compared to the previous year, domestic sales rose by 4.6%. Profit after tax in the year was Rs. 246.700 Millions, registering a nominal increase of 2.8% over the previous year.
Profitability was affected by steep increases in cost of raw materials, interest, power, labour and transportation. While the Company has been able to pass on cost increases in most customer segments, slowdown in domestic fishery sector, which is their core business area, put pressure on margins. To mitigate cost increases, the Company took several measures to improve productivity and efficient use of power.
Plateena products, which are stronger than steel and lightweight, received good response from customers in Alaska, New Zealand, the Indian Navy and shipping companies, for very critical applications. New fibres developed by the Company have performed very well and have strong potential. Domestic fishery and industrial
products were affected by seasonal changes and high prices. Business volumes of fabricated and fully-assembled fishery products grew significantly.
CONTINGENT LIABILITIES (As on 31.03.2013)
(i) Disputed Excise Duty Rs.3.212 Millions (Previous year Rs. 2.757 Millions).
(ii)
Bank Guarantees for Rs.143.584 Millions (Previous year Rs.147.726 Millions), in the
ordinary course of business, against which the Company has issued counter guarantees for the overall bank
limits of Rs.1453.500 Millions (Previous year Rs.1350.000 Millions).
(iii) Disputed amount of Sales Tax liability
Rs.19.668 Millions (Previous year Rs.
4.215 Millions).
(iv) Disputed Property Tax Liability on
factory premises, Pune Rs. 2.097
Millions
(Previous year
Rs. 2.097 Millions).
(v)
Export Sales Bills discounted
with the Banks
Rs. 88.751 Millions (Previous year Rs.
98.242 Millions).
(vi)The interest portion on delayed payment of
Octroi Liability amounting to
Rs.2.164 Millions (Previous year Rs.2.164 Millions) is under dispute.
UNAUDITED FINANCIAL
RESULTS (PROVISIONAL) FOR THE QUARTER ENDED ON 30TH JUNE, 2013
(Rs. In Millions)
|
Sr. No |
Particulars |
Standalone Quarter ended 30.06.2013 (Unaudited) |
|
|
PART I |
|
||
|
1. |
Income from
operations |
|
|
|
|
(a) Net Sales/Income from Operations (Net of excise duty) |
1486.577 |
|
|
|
(b) Other Operating Income |
6.750 |
|
|
|
Total income from
operations (net) |
1493.327 |
|
|
2. |
Expenses |
|
|
|
|
a. Cost of materials consumed |
624.973 |
|
|
|
b. Purchase of Stock-in-trade |
35.422 |
|
|
|
c. Changes in inventories of finished goods, work in progress and stock-in-trade |
(61.552) |
|
|
|
d. Employee benefits expense |
213.097 |
|
|
|
e. Depreciation and amortisation expense |
39.481 |
|
|
|
f. Other expenses (Any item exceeding 10% of the total expenses relating to continuing operations to be shown separately) |
499.594 |
|
|
|
Total expenses |
1351.016 |
|
|
3. |
Profit / (Loss)
from Operations before Other Income, finance cost and exceptional Items (1-2) |
142.311 |
|
|
4. |
Other Income |
3.018 |
|
|
5. |
Profit / (Loss) from
ordinary activities before finance cost and exceptional Items (3+4) |
145.329 |
|
|
6. |
Finance Cost |
51.673 |
|
|
7. |
Profit / (Loss)
from ordinary activities after finance cost but before exceptional Items
(5+6) |
93.656 |
|
|
8. |
Exceptional Items |
|
|
|
9. |
Profit (+) /
Loss(-) from Ordinary Activities Before Tax (7+8) |
93.656 |
|
|
10. |
Tax Expenses |
31.610 |
|
|
11. |
Net Profit (+) /
Loss (-) from Ordinary Activities after Tax (9-10) |
62.046 |
|
|
12. |
Extraordinary Items (net of Tax Expense Rs. Nil) |
|
|
|
13. |
Net Profit (+)/Loss
(-) for the period (11-12) |
62.046 |
|
|
14. |
Paid-up Equity Share Capital (Face value Rs. 10/- each) |
237.084 |
|
|
15. |
Reserves excluding Revaluation Reserves as per Balance Sheet of previous Accounting Year |
|
|
|
16. |
Earnings Per Share
of Rs. 10/- each (EPS) (Rs.) |
|
|
|
|
a) Basic and diluted EPS before Extraordinary items (not annualised) |
2.62 |
|
|
|
b) Basic and diluted EPS after Extraordinary items (not annualised) |
2.62 |
|
|
PART II |
|
||
|
A. |
PARTICULARS OF
SHAREHOLDING |
|
|
|
1 |
Public shareholding |
|
|
|
|
- Number of shares |
12666339 |
|
|
|
- Percentage of shareholding |
53.43 |
|
|
2 |
Promoters and
Promoter Group Shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of shares |
NIL |
|
|
|
b) Non-encumbered |
|
|
|
|
- Number of shares |
11042011 |
|
|
|
- Percentage of shares (as a % of the total shareholding of Promoters) |
100.00 |
|
|
|
- Percentage of shares (as a % of the total share capital of the Company) |
46.57 |
|
|
INVESTOR COMPLAINTS
DURING THREE MONTHS ENDED ON 30TH JUNE, 2013 |
|||
|
Pending at the beginning
of the quarter (Nos.) |
Received during the
quarter (Nos.) |
Disposed of during
the quarter (Nos.) |
Remaining
unresolved at the end of the quarter
(Nos.) |
|
NIL |
1 |
1 |
NIL |
(Rs. In Millions)
|
1. |
Segment Revenue |
|
|
|
a) Synthetic cordage |
1237.451 |
|
|
b) Fibre and Industrial Products & Projects |
285.957 |
|
|
Total |
1523.409 |
|
|
Less: Inter-Segment Revenue |
(36.832) |
|
|
Net Sales/Income
from Operations |
1486.577 |
|
2. |
Segment Results (Profit
(+)/Loss(-) before tax and interest from each segment) |
|
|
|
a) Synthetic cordage |
161.159 |
|
|
b) Fibre and Industrial Products & Projects |
17.850 |
|
|
Total |
179.009 |
|
|
Less: i) Interest |
(51.673) |
|
|
ii) Other unallocable expenditure net off Unallocable Income |
(33.680) |
|
|
Total Profit Before
Tax |
93.656 |
|
3. |
Capital Employed
(Segment Assets - Segment Liabilities) |
|
|
|
a) Synthetic cordage |
2642.230 |
|
|
b) Fibre and Industrial Products & Projects |
954.438 |
|
|
Total |
3596.668 |
(The figures of previous periods have been regrouped/rearranged wherever necessary to confirm current period's presentation.)
Notes:
1. Provision for Taxation for the quarter ended 30th June, 2013, of Rs.31.610 Millions, is arrived at being Rs. 29.000 Millions for Income Tax, Rs. 0.160 Million for Wealth Tax and Deferred Tax Liability of Rs.2.450 Millions. (Provision for Taxation for the quarter ended 30th June, 2012, of Rs.23.050 Millions, is arrived at being Rs. 22.400 Millions for Income Tax, Rs. 0.150 Million for Wealth Tax and Deferred Tax Liability of Rs. 0.500 Million.).
2. Garware Environmental Services Private Limited, ("Subsidiary Company") is yet to commence its commercial operation.
3. The above results were reviewed by the Statutory Auditors and also by the Audit Committee and have been taken on record and approved by the Board of Directors at its meeting held on Wednesday, 14th August, 2013.
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10334334 |
11/01/2012 |
150,000,000.00 |
THE HONGKONG AND
SHANGHAI BANKING CORPORATION LIMI |
52/60 MAHATMA
GANDHI ROAD, FORT, MUMBAI, MAHARASH |
B31593486 |
|
2 |
10315464 |
01/11/2011 |
250,000,000.00 |
CITIBANK N. A. |
TRENT HOUSE, 2ND
FLOOR, G BLOCK, PLOT NO.C60, BAN |
B24454464 |
|
3 |
10316447 |
24/10/2011 |
250,000,000.00 |
HDFC BANK
LIMITED |
HDFC BANK
HOUSESENAPATI BAPAT MARG, LOWER PAREL W |
B24852527 |
|
4 |
10127061 |
13/10/2008 |
121,300,000.00 |
IDBI BANK
LIMITED |
IDBI TOWERWTC
COMPLEX, CUFFE PARADE, MUMBAI, MAHA |
A49434764 |
|
5 |
10127060 |
08/10/2008 |
105,400,000.00 |
IDBI BANK
LIMITED |
IDBI TOWERWTC
COMPLEX, CUFFE PARADE, MUMBAI, MAHA |
A49434699 |
|
6 |
90088708 |
15/01/2004 * |
24,300,000.00 |
BANK OF INDIA |
PUNE CORPORATION
BANKING BRANCH, 1162/6; SHIVAJI |
- |
|
7 |
90082624 |
19/04/2000 * |
50,000,000.00 |
BANK OF BARODA |
CO. BANKING
BRANCH, MANTRI COURT, PUNE, MAHARASHT |
- |
|
8 |
90085074 |
24/05/1999 |
20,200,000.00 |
BANK OF
MAHARASHTRA |
LOKMANGAL; 1501,
SHIVAJINAGAR, PUNE, MAHARASHTRA |
- |
|
9 |
90088154 |
02/01/1999 |
20,000,000.00 |
CORPORATION BANK
|
INDUSTRIAL
FINANCE BRANCH, 14; PUNE; MUMBAI ROAD, |
- |
|
10 |
90084810 |
14/02/2012 * |
2,831,000,000.00
|
BANK OF INDIA |
1162/6 SHIVAJINAGAR,
UNIVERSITY ROAD, PUNE, MAHAR |
B32884645 |
Note: * Date of charge modification
FIXED ASSETS:
Tangible Assets
v
v Buildings
v Plant and Machinery
v R&D Equipments
v Electrical Installations
v Furniture and Fixtures
v Office Equipments
v Vehicles
v Helicopter
Intangible Assets
v Technical Knowhow
v Product Development
v 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.64.22 |
|
|
1 |
Rs.100.83 |
|
Euro |
1 |
Rs.85.21 |
INFORMATION DETAILS
|
Report Prepared by
: |
KVT/DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
|
54 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.