MIRA INFORM REPORT

 

 

Report Date :

16.09.2013

 

IDENTIFICATION DETAILS

 

Name :

GARWARE WALL ROPES LIMITED

 

 

Registered Office :

Plot No.11, Block D-1, MIDC, Chinchwad, Pune – 411 019, Maharashtra 

 

 

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 

 

 

Legal Form :

Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Subject is engaged in manufacturing and selling various technical-textile products such as Ropes, Twine, Yarn, Fishnet and Other Nets.

 

 

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

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

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, Maharashtra, India 

Tel. No.:

91-20-30780000/ 30780195

Fax No.:

91-20-30780350/ 30780341

E-Mail :

sales@garwareropes.com

secretarial@garwareropes.com

Website :

http://www.garwareropes.com

 

 

Factory 2 :

Plot No.C-1 and B-226, MIDC, Wai, District Satara – 412 803, Maharashtra, India

Tel No.:

91-2167-308301/ 02

 

 

Factory 3 :

Plot No.75, 80, 81 and 86, Danudyog Sahakari Sangh Limited, Piparia, Amli – 396 230, Silvassa, India

Tel No.:

91-260-2640867

 

 

Mumbai Office 1 :

Chowpatty Chambers, Sandhurst Bridge, Mumbai – 400 007, Maharashtra, India

Tel No.:

91-22-23631388

 

 

Mumbai Office 2 :

39, S.K. Hafizuddin Marg, Byculla, Mumbai – 400 008, Maharashtra, India

Tel No.:

91-22-23091164/ 68

 

 

Foreign Branch Office :

Narrows Reach Business Centre, 6102 North 9th Street, Unit # 500, Tacoma, WA 98406, U.S.A.

 

 

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

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

3630817

15.31

http://www.bseindia.com/include/images/clear.gifBodies Corporate

7411194

31.26

http://www.bseindia.com/include/images/clear.gifSub Total

11042011

46.57

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

11042011

46.57

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

11300

0.05

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

1914

0.01

http://www.bseindia.com/include/images/clear.gifInsurance Companies

1221988

5.15

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

939000

3.96

http://www.bseindia.com/include/images/clear.gifSub Total

2174202

9.17

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

1253278

5.29

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

5548885

23.40

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

2512881

10.60

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

1177093

4.96

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

179093

0.76

http://www.bseindia.com/include/images/clear.gifTrusts

998000

4.21

http://www.bseindia.com/include/images/clear.gifSub Total

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

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

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.

 

 

Products :

Product Description

 

Item Code

Ropes and Twine

5607.49

PPMF Yarn

5402.59

Fishnets

5608.11

 

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

 

 

Bankers :
  • Bank of India
  • Bank of Baroda
  • DBS Bank Limited
  • Citibank NA
  • Royal Bank of Scotland N.V.
  • HDFC Bank Limited
  • IDBI Bank Limited

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2013

As on

31.03.2012

Long term borrowings

 

 

From Banks and Financial Institutions

 

 

CITI Bank ECB Term Loan

 

 

Balance as per last Financial Statement

247.758

264.342

Current Maturity transfer to other Current Liability

(70.788)

(16.521)

 

 

 

CITI Bank Rupee Loan

 

 

Balance as per last Financial Statement

0.000

31.496

Current Maturity transfer to other Current Liability

0.000

(31.496)

 

 

 

HDFC Bank Rupee Term Loan

 

 

Balance as per last Financial Statement

145.833

229.166

Current Maturity transfer to other Current Liability

(83.333)

(83.333)

 

 

 

IDBI Bank Term Loan under TUFS

 

 

Balance as per last Financial Statement

26.350

47.430

Current Maturity transfer to other Current Liability

(21.080)

(21.080)

 

 

 

Short term borrowings

 

 

Cash Credit, Rupee Loan and Rupee Packing Credit

355.029

523.715

Packing Credit in Foreign Currency Loan

281.096

281.596

 

 

 

Total

880.865

1225.315

 

Notes:

 

CITI Bank ECB Term Loan is repayable in 16 quarterly installments of Rs. 15.625 millions each along with interest from 26th December, 2012. This loan is secured by way of hypothecation of the whole of the Movable Fixed Assets comprising Plant and Machinery, Computers, Furniture and Fixtures, Machinery Spares, Tools and Accessories and other Assets both present and future on first charge on pari-passu basis with others.

 

CITI Bank Rupee Loan was repayable in 20 quarterly installments of Rs. 7.874 millions each along with interest from 28th January, 2008. This loan was secured by way of hypothecation of the whole of the Plant and Machinery including its moveable Plant and Machinery, Machinery Spares, Tools and Accessories, both present and future on first charge on pari-passu basis with others.

 

HDFC Bank Rupee Term Loan is repayable in 12 quarterly instalments of Rs. 20.833 millions each along with interest from 4th January, 2012. This loan is secured by way of hypothecation of the Movable Properties including Plant and Machinery, Machinery Spares, Tools and Accessories and other Movables both present and future on first charge on pari-passu basis with others.

 

IDBI Bank Term Loan under TUFS loan is repayable in 20 quarterly instalments of Rs. 5.270 millions each along with interest from 31st July, 2009. This loan is secured by way of charge on specific assets financed by the Bank.

 

The above Secured Loans are availed from Consortium Bankers, viz., Bank of India, Bank of Baroda, Bank of Maharashtra, IDBI Bank, HDFC Bank, The Royal Bank of Scotland N.V. and CITI Bank N.A. are secured by a first charge, pari passu, inter-se, by way of hypothecation of the Company's Current Assets, viz. raw materials, stock-in-process, semi-finished goods, finished goods, stores and spares not relating to Plant and Machinery, bills receivable and book debts and other movables (except for Plant and Machinery secured by way of second charge), both present and future. Except loans from IDBI Bank, HDFC Bank and CITI Bank N.A., the other loans from remaining Consortium Bankers are also secured to the extent of Rs. 830.000 millions by Second Charge over the Company's Immoveable Properties, by way of equitable mortgage, ranking pari passu, inter-se. The Cash Credit, Rupee Loan and Rupee Packing Credit (rupee and foreign currency loan) loan are repayable on demand.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Patki and Soman

Chartered Accountants

Address :

639 Sadashiv Peth, Kumthekar Road, Pune – 411 030, Maharashtra, India

 

 

Solicitors and Advocates :

Talwar Thakore and Associates

 

 

Associates Companies:
  • Garware Elastomerics Limited
  • Garware Bestretch Limited
  • Garware Meditech Private Limited

 

 

Subsidiary / Joint Venture Companies:
  • Garware Environmental Services Private Limited

 

 

Enterprises Owned or Significantly Influenced by Key Management Personnel or Their Relatives:
  • RSDV Finance Company Private Limited
  • RSDV Investments Private Limited
  • Garware Securities Broking Limited
  • Garware Capital Markets Limited
  • Garware Indus Consulting Limited
  • Garware Utzon (Cordage) Limited
  • Manmit Investments and Trading Company Private Limited
  • Ceebeegee Investment Company Private Limited
  • Moonshine Investments and Trading Company Private Limited
  • Gurukrupa Investments and Trading Company Private Limited
  • Sanand Investments and Trading Company Private Limited
  • Starshine Investments and Trading Company Private Limited
  • Sukukar Holdings and Trading Company Private Limited

 

 

Enterprises Owned or Significantly Influenced by Key Management Personnel or Their Relatives

where no transactions are entered during the year:
  • Consolidated Agricultural and Dairy Farming Company Private Limited
  • Vimalabai Garware Research Institute
  • Ramesh Trading Company
  • Sunita Trading Company
  • Diya Trading Company
  • Vayu Trading Company
  • Ramesh B. Garware (HUF)
  • Gartex Industries Limited
  • Garware Motors Limited
  • Garware Infrastructure Private Limited
  • Garware Apparel Private Limited
  • Garware Research Institute
  • Suramex Exim Private Limited
  • Garware Holdings Limited

 

 

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. EQUITY AND LIABILITIES

 

 

 

(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. ASSETS

 

 

 

(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 amortization 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 annualized)

2.62

 

b) Basic and diluted EPS after Extraordinary items (not annualized)

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 LIMITED

52/60 MAHATMA GANDHI ROAD, FORT, MUMBAI, MAHARASH
TRA - 400001, INDIA

B31593486

2

10315464

01/11/2011

250,000,000.00

CITIBANK N. A.

TRENT HOUSE, 2ND FLOOR, G BLOCK, PLOT NO.C60, BANDRA KURLA COMPLEX, BANDRA (E), MUMBAI, MAHARASHTRA
- 400051, INDIA

B24454464

3

10316447

24/10/2011

250,000,000.00

HDFC BANK LIMITED

HDFC BANK HOUSESENAPATI BAPAT MARG, LOWER PAREL W, MUMBAI, MAHARASHTRA - 400013, INDIA

B24852527

4

10127061

13/10/2008

121,300,000.00

IDBI BANK LIMITED

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

A49434764

5

10127060

08/10/2008

105,400,000.00

IDBI BANK LIMITED

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHA
RASHTRA - 400005, INDIA

A49434699

6

90088708

15/01/2004 *

24,300,000.00

BANK OF INDIA

PUNE CORPORATION BANKING BRANCH, 1162/6; SHIVAJI
NAGAR, PUNE, MAHARASHTRA - 411005, INDIA

-

7

90082624

19/04/2000 *

50,000,000.00

BANK OF BARODA

CO. BANKING BRANCH, MANTRI COURT, PUNE, MAHARASHTRA - 411001, INDIA

-

8

90085074

24/05/1999

20,200,000.00

BANK OF MAHARASHTRA

LOKMANGAL; 1501, SHIVAJINAGAR, PUNE, MAHARASHTRA
- 411005, INDIA

-

9

90088154

02/01/1999

20,000,000.00

CORPORATION BANK

INDUSTRIAL FINANCE BRANCH, 14; PUNE; MUMBAI ROAD,
PUNE, MAHARASHTRA - 411003, INDIA

-

10

90084810

14/02/2012 *

2,831,000,000.00

BANK OF INDIA

1162/6 SHIVAJINAGAR, UNIVERSITY ROAD, PUNE, MAHARASHTRA - 411005, INDIA

B32884645

 

Note: * Date of charge modification

 

FIXED ASSETS:

Tangible Assets

v  Leasehold Land

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, India Prisons Service, Interpol, etc.

 

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. 63.79

UK Pound

1

Rs.100.70

Euro

1

Rs. 84.67

 

 

INFORMATION DETAILS

 

Report Prepared by :

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.