MIRA INFORM REPORT
|
Report Date : |
05.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
THE LAKSHMI MILLS COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Old No. 1100, New No. 686, Avanashi Road, Papanickenpalayam,
Coimbatore-641037, Tamilnadu |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
01.04.1910 |
|
|
|
|
Com. Reg. No.: |
18-000093 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.69.555 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111TZ1910PLC000093 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CMBT03088B CMBT03037G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The company is engaged in the manufacturing of Yarn and trading in
cloth and garments. |
|
|
|
|
No. of Employees
: |
Not Divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 4958000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an old and established company having satisfactory track
record. Performance of the company has improved. Overall financial position of
the company is decent. However, trade relations are reported to be fair. Business is active.
Payments are reported to be usually correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
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
India’s current account deficit for the fiscal third quarter ended
September 2013 narrowed to $4.2 billion or 0.9 % of the gross domestic product
from $31.9 billion or 6.5 % of GDP a year earlier, thanks to a pick-up in
exports and moderation in gold imports. Manufacturing activity and new orders
in India showed their strongest growth in a year in February. The news comes as
a relief after data showed Asia’s third largest economy grew by a
slower-than-expected 4.7 % annually in the three months through December. The
HSBC Manufacturing Purchasing Managers’ Index which gauges the business
activity of India’s factories but not its’ utilities, rose to 52.5 in February,
its highest in a year from 51.4 in January. Overall new orders for factory
goods which rose to a one-year high of 54.9 contributed to the surge. China has
emerged as India’s biggest trading partner in the current financial year
replacing the United Arab Emirates and pushing it to the third spot.
India-China trade has reached $49.5 billion with a 8.7 % share in India’s total
trade. The US comes second at $46 billion with 8.1 % share during the first
nine months of the current financial year.
The Reserve Bank of India has granted an additional nine months to the
public to exchange currency notes printed before 2005 including Rs 500 and Rs
1,000 denominations, pushing the deadline to January 1, 2015. A day before
dates for the Lok Sabha polls were announced, the government decided to hike
interest rates on fixed deposit schemes offered by post offices up to 0.2 per
cent. The new rates will be effective April, 1. The Supreme Court will resume
hearing on March, 11 Nokia’s appeal against a ruling over transferring
ownership of its local mobile phones plant which is the subject of a tax
dispute to Microsoft Corp.
In the last days of the current Government, another scam has surfaced.
The defence ministry has ordered a probe into Hindustan Aeronautics Limited’s
contracts from Britain’s Rolls-Royce Holdings worth at least $ 1.2 billion. The
Central Bureau of Investigation will look into allegations that over $80
million was paid in kickbacks in a deal signed in 2011. India has asked Boeing
Co. to find a solution for problems with state-owned Air India’s 787
Dreamliners. The aircraft has experienced a series of malfunctions since its
debut in 2011.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating BB- |
|
Rating Explanation |
Inadequate credit quality and high risk. |
|
Date |
February 26, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating A4+ |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
February 26, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE (91-422-4333700)
LOCATIONS
|
Registered Office : |
Old No. 1100, New No. 686, Avanashi Road, Papanickenpalayam,
Coimbatore-641037, Tamilnadu, India |
|
Tel. No.: |
91-422-2215461 to 2215465 / 4333700 |
|
Fax No.: |
91-422-2216508 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1: |
Lakshmipuram P.O., Kovilpatti, Tamilnadu, India |
|
|
|
|
Factory 2: |
Kuppuswamy Naidupuram, Palladam, Tamilnadu, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. R. Santharam |
|
Designation : |
Vice Chairman |
|
|
|
|
Name : |
Mr. Sanjay Jayavarthanavelu |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V.Jagannathan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. D. Rajendran |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Satish Ajmera |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Aditya Krishna Pathy |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. V.S. Velayutham |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Pathy |
|
Designation : |
Managing Director |
KEY EXECUTIVES
|
Name : |
Mr. N. Singaravel |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
245241 |
35.26 |
|
|
153892 |
22.13 |
|
|
399133 |
57.38 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
399133 |
57.38 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
40 |
0.01 |
|
|
278 |
0.04 |
|
|
5107 |
0.73 |
|
|
38208 |
5.49 |
|
|
20 |
0.00 |
|
|
20 |
0.00 |
|
|
43653 |
6.28 |
|
|
|
|
|
|
56656 |
8.15 |
|
|
|
|
|
|
158859 |
22.84 |
|
|
25469 |
3.66 |
|
|
11780 |
1.69 |
|
|
382 |
0.05 |
|
|
570 |
0.08 |
|
|
4524 |
0.65 |
|
|
312 |
0.04 |
|
|
5992 |
0.86 |
|
|
252764 |
36.34 |
|
Total Public shareholding (B) |
296417 |
42.62 |
|
Total (A)+(B) |
695550 |
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) |
695550 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is engaged in the manufacturing of Yarn and trading in
cloth and garments. |
GENERAL INFORMATION
|
No. of Employees : |
Not Divulged |
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
|
Bankers : |
|
|||||||||||||||||||||||||||
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|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Subbachar and Srinivasan Chartered Accountants |
|
|
|
|
Associates/Subsidiaries : |
œ
Lakshmi Card Clothing Manufacturing Company
Private Limited œ
Lakshmi Automatic Looms Works Limited œ
Balakumar Shipping and Clearing Agency Private
Limited œ Aloha Tours and
Travels (India) Private Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000000 |
Equity Shares |
Rs.100/- each |
Rs.100.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
695550 |
Equity Shares |
Rs.100/- each |
Rs.69.555 Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
69.555 |
69.555 |
69.555 |
|
(b) Reserves & Surplus |
1170.052 |
1069.319 |
1201.071 |
|
(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) |
1239.607 |
1138.874 |
1270.626 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
219.092 |
391.204 |
395.824 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
10.628 |
4.736 |
3.621 |
|
(d) long-term provisions |
28.714 |
24.085 |
18.820 |
|
Total
Non-current Liabilities (3) |
258.434 |
420.025 |
418.265 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short term borrowings |
333.655 |
385.655 |
287.604 |
|
(b) Trade payables |
182.280 |
98.702 |
151.937 |
|
(c) Other current liabilities |
251.576 |
244.238 |
293.376 |
|
(d) Short-term provisions |
11.552 |
1.800 |
11.917 |
|
Total
Current Liabilities (4) |
779.063 |
730.395 |
744.834 |
|
|
|
|
|
|
TOTAL |
2277.104 |
2289.294 |
2433.725 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
405.831 |
641.112 |
675.483 |
|
(ii) Intangible Assets |
0.552 |
0.919 |
0.000 |
|
(iii) Capital work-in-progress |
0.000 |
0.000 |
0.000 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
17.422 |
17.755 |
17.755 |
|
(c) Deferred tax assets (net) |
194.754 |
133.874 |
74.283 |
|
(d) Long-term Loan
and Advances |
68.182 |
53.157 |
36.739 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
686.741 |
846.817 |
804.260 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1281.638 |
1166.560 |
1323.923 |
|
(c) Trade receivables |
228.227 |
131.751 |
138.707 |
|
(d) Cash and cash equivalents |
22.713 |
81.187 |
79.623 |
|
(e) Short-term loans and advances |
5.711 |
6.089 |
22.250 |
|
(f) Other current assets |
52.074 |
56.890 |
64.962 |
|
Total
Current Assets |
1590.363 |
1442.477 |
1629.465 |
|
|
|
|
|
|
TOTAL |
2277.104 |
2289.294 |
2433.725 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
Income |
1638.913 |
1494.238 |
1758.328 |
|
|
|
Other Income |
75.292 |
85.397 |
41.026 |
|
|
|
TOTAL |
1714.205 |
1579.635 |
1799.354 |
|
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
Cost of Materials Consumed |
742.100 |
625.999 |
835.832 |
|
|
|
Purchases of Stock-in-Trade |
127.840 |
272.765 |
173.451 |
|
|
|
Changes in inventories of finished goods, work-in-progress and Stock-in-Trade |
(78.224) |
134.499 |
(94.313) |
|
|
|
Employees benefits expense |
224.671 |
189.439 |
212.491 |
|
|
|
Exceptional Item |
(12.303) |
0.000 |
0.000 |
|
|
|
Other expenses |
467.705 |
345.085 |
449.121 |
|
|
|
TOTAL |
1471.789 |
1567.787 |
1576.582 |
|
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
242.416 |
11.848 |
222.772 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
137.915 |
137.855 |
119.044 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION
|
104.501 |
(126.007) |
103.728 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
54.568 |
65.335 |
65.311 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
49.933 |
(191.342) |
38.417 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(60.566) |
(59.590) |
(14.950) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
110.499 |
(131.752) |
53.367 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(62.798) |
68.954 |
22.862 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
3.000 |
0.000 |
0.000 |
|
|
|
Dividend |
8.347 |
0.000 |
6.260 |
|
|
|
Tax on Dividend |
1.419 |
0.000 |
1.015 |
|
|
BALANCE CARRIED
TO THE B/S |
34.935 |
(62.798) |
68.954 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Cloth |
123.990 |
290.397 |
156.391 |
|
|
|
Yarn |
3.217 |
15.433 |
40.867 |
|
|
TOTAL EARNINGS |
127.207 |
305.830 |
197.258 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
0.341 |
0.000 |
42.238 |
|
|
|
Components & Spares |
0.497 |
0.000 |
0.543 |
|
|
TOTAL IMPORTS |
0.838 |
0.000 |
42.781 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
|
|
|
|
|
|
Basic |
141.18 |
(189.42) |
76.73 |
|
|
|
Diluted |
158.87 |
(189.42) |
76.73 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.45
|
(8.34) |
2.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.05
|
(12.81) |
2.18 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.42
|
(8.95) |
1.64 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04
|
(0.17) |
0.03 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.45
|
0.68 |
0.54 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.04
|
1.97 |
2.19 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
69.555 |
69.555 |
69.555 |
|
Reserves & Surplus |
1201.071 |
1069.319 |
1170.052 |
|
Net
worth |
1270.626 |
1138.874 |
1239.607 |
|
|
|
|
|
|
long-term borrowings |
395.824 |
391.204 |
219.092 |
|
Short term borrowings |
287.604 |
385.655 |
333.655 |
|
Total
borrowings |
683.428 |
776.859 |
552.747 |
|
Debt/Equity
ratio |
0.538 |
0.682 |
0.446 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1758.328 |
1494.238 |
1638.913 |
|
|
|
(15.019) |
9.682 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
1758.328 |
1494.238 |
1638.913 |
|
Profit |
53.367 |
(131.752) |
110.499 |
|
|
3.04% |
(8.82%) |
6.74% |
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 |
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 |
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 LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Fixed Deposit – Directors |
0.300 |
0.300 |
|
Fixed Deposits – Others |
0.055 |
13.486 |
|
|
|
|
|
Total |
0.355 |
13.786 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10459561 |
01/10/2013 * |
85,000,000.00 |
Indian Overseas Bank |
PARK SQUARE BRANCH, 1027 AVINASHI ROAD,
NEAR VOC |
B90209255 |
|
2 |
10021495 |
29/08/2006 |
10,000,000.00 |
STATE BANK OF SAURASHTRA |
62 DR N R N LAYOUT, PAPPANAICKENPALAYAM,
COIMBATORE - 641037, Tamilnadu, INDIA |
A03584489 |
|
3 |
10010779 |
10/08/2011 * |
614,500,000.00 |
CENTRAL BANK OF INDIA |
14/15, VARIETY HALL ROAD, COIMBATORE -
641001, Tamilnadu, INDIA |
B19783992 |
|
4 |
10004341 |
01/10/2013 * |
630,500,000.00 |
CANARA BANK |
MID CORPORATE BRANCH (FORMERLY INDUSTRIAL
FINANCE, BRANCH),16-18 AROKIASWAMY ROAD EAST, R.S.PURAM,COIMBATORE - 641002,
Tamilnadu -, INDIA |
B90151853 |
|
5 |
90008394 |
15/06/1996 * |
90,000,000.00 |
CENTRAL BANK OF INDIA |
CHANDER KUMHI NARIMAN, POINT, MUMBAI -
400021, Maharashtra, INDIA |
- |
|
6 |
90008278 |
30/12/1996 * |
90,000,000.00 |
CENTRAL BANK OF INDIA |
CHANDER KUMHI NARIMAN, POINT, MUMBAI -
400021, Maharashtra, INDIA |
- |
|
7 |
90008060 |
04/12/1992 * |
72,160,000.00 |
CENTRAL BANK OF INDIA |
CHANDER KUMHI NARIMAN, POINT, MUMBAI -
400021, Maharashtra, INDIA |
- |
* Date of charge modification
CORPORATE
INFORMATION
Subject is a
public company domiciled in India and incorporated under the provisions of the
Companies Act, 1956. Its shares are listed on two stock exchanges in India. The
company is engaged in the manufacturing of Yarn and trading in cloth and
garments. The company caters to both domestic and international markets.
CURRENT INDUSTRIAL TREND AND FUTURE PROSPECTS
Thanks to better
market conditions and stable raw material prices for a major part of the year,
the textile industry as a whole heaved a sigh of relief. However, the much
announced restructuring program did not benefit many as the conditions imposed
were not at all workable. The units continued to suffer with no relief from
financial institutions.
To tide over the
continued crisis in power front due to unscheduled power cuts etc. the Company
had gone in for dedicated power lines for both Kovilpatti and Palladam units.
This would certainly give relief to the units from the unscheduled power
interruptions.
OUTLOOK
Government of
India has announced the extension of TUF Scheme for the 12th Plan period also. This
may help the industry to modernize further to meet the challenges of the
future.
The industry need
to seriously draw up plans to overcome the ever increasing shortage of skilled
labour and also toinsulate against the rising energy cost.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
INDUSTRY STRUCTURE AND DEVELOPMENTS:
Indian Textile
Industry has got a great future to grow and prosper in the context of rising
domestic demand as well as growing export markets other than the traditional
Europe and South East Asia.
India is blessed
with large acreage of land for cultivation of cotton and also huge capacity to
produce man-made fibers. Both cotton and man-made fibers are also exported in
plenty after meeting the needs of the domestic requirements. Technology is
available in plenty. More than technology, qualified and competent technical
and managerial personnel are there to run the industry.
Industry has to
take advantage of these situations to grow further.
SEGMENT-WISE
OR PRODUCT-WISE PERFORMANCE:
Operations of the
Company are under one broad segment – textile intermediary products and hence
no further analysis is required.
OUTLOOK:
Future looks quite
bright for all the segments of the textile industry, provided a long term
approach is made.
OPERATIONAL PERFORMANCE:
The Net Sales
during the year was Rs.1638.913 millions and the Company could earn a Net
Profit of Rs.110.499 millions.
FIXED ASSETS
œ Land
œ Buildings
œ Plant and
Equipment
œ
Electrical Plant and Equipment
œ
Furniture and Fixtures
œ
Vehicles
œ
Office Equipments
œ
Computer Equipments
œ
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.60.32 |
|
|
1 |
Rs.100.04 |
|
Euro |
1 |
Rs.82.65 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--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 |
|
45 |
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.