MIRA
INFORM REPORT
|
Report Date : |
11.04.2014 |
IDENTIFICATION DETAILS
|
Name : |
LAHOTI OVERSEAS LIMITED |
|
|
|
|
Registered
Office : |
307, Arun
Chambers, Tardeo Road, Mumbai - 400034, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
24.04.1995 |
|
|
|
|
Com. Reg. No.: |
11-087643 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.58.459
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74999MH1995PLC087643 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUML04856F /
MUML02121A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACL2578H |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Exporter of
Yarns, Fabrics and also engaged in Power Generation. |
|
|
|
|
No. of Employees
: |
40 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (48) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2986000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having satisfactory track record. Trade relations are reported to be fair. Business is active. Payments
are reported to be usually correct and as per commitments. The company can be considered for normal business dealing at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
BBB- (Long Term) |
|
Rating Explanation |
Have moderate degree of safety and carry
moderate credit risk. |
|
Date |
February 4, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
A3 (Short Term) |
|
Rating Explanation |
Have moderate degree of safety and carry
higher credit risk. |
|
Date |
February 4, 2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Pradeep Bachukar |
|
Designation : |
Chief Executive Officer |
|
Contact No.: |
91-9321903715 |
|
Date : |
08.04.2014 |
LOCATIONS
|
Registered Office : |
307, Arun Chambers,
Tardeo Road, Mumbai - 400034, Maharashtra, India |
|
Tel. No.: |
91-22-23516389/
90/ 56602167/ 68/ 40500100 |
|
Mobile No.: |
91-9321903715 (Mr. Pradeep Bachukar) |
|
Fax No.: |
91-22-40500150 |
|
E-Mail : |
|
|
Website : |
|
|
Area : |
750 Sq. Ft |
|
Location : |
Owned |
|
|
|
|
Dhaka Office : |
House 540/6, Road 12 (West) Baridhara D.O.H.S, Dhaka,
Bangladesh |
|
|
|
|
Coimbatore Office : |
2nd Floor, Tirumalai Tower, 723 B, Avinashi Road,
Coimbatore – 641018, Tamilnadu, India |
|
Tel. No.: |
91-422-2222282 |
|
Fax No.: |
91-422-2223116 |
DIRECTORS
As on: 31.03.2013
|
Name : |
Mr. Ujwal R. Lahoti |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. Umesh R. Lahoti |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Aadhitiya U. Lahoti |
|
Designation : |
Joint Executive Director |
|
Date of Birth/Age : |
29 Years |
|
Qualification : |
B.Com and FMBA |
|
|
|
|
Name : |
Mr. Pradeep R. Rathi |
|
Designation : |
Independent Non-Executive Director |
|
Date of Birth/Age : |
60 Years |
|
Qualification : |
B.Sc., MS (Chemical Engineer) (M.I.T.), MBA (Columbia) in the USA. |
|
|
|
|
Name : |
Mr. Prakash R. Bang |
|
Designation : |
Independent Non-Executive Director |
|
|
|
|
Name : |
Mr. Vijay D. Ajgaonkar |
|
Designation : |
Independent Non-Executive Director |
|
|
|
|
Name : |
Mr. Prem S. Malik |
|
Designation : |
Independent Non-Executive Director |
|
Date of Appointment : |
28.03.2012 |
KEY EXECUTIVES
|
Name : |
Mr. Pradeep Bachukar |
|
Designation : |
Chief Executive Officer |
|
|
|
|
Name : |
Mr. Aweline Mendes |
|
Designation : |
Compliance Officer |
|
|
|
|
Name : |
Kothari H. and Associates |
|
Designation : |
Practising Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 31.12.2013
|
Category of
Shareholder |
Total No. of Shares |
As a % |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
15133925 |
51.88 |
|
|
2317500 |
7.94 |
|
|
17451425 |
59.82 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
17451425 |
59.82 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
|
|
|
|
1656016 |
5.68 |
|
|
|
|
|
|
4459351 |
15.29 |
|
|
666916 |
2.29 |
|
|
4937792 |
16.93 |
|
|
687792 |
2.36 |
|
|
4250000 |
14.57 |
|
|
11720075 |
40.18 |
|
Total Public
shareholding (B) |
11720075 |
40.18 |
|
Total (A)+(B) |
29171500 |
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) |
29171500 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Exporter of
Yarns, Fabrics and also engaged in Power Generation. |
|
|
|
|
Exports : |
|
|
Products : |
·
Yarns ·
Fabrics |
|
Countries : |
·
China ·
Bangladesh ·
Portugal |
|
|
|
|
Terms : |
|
|
Selling : |
Cash and Credit |
|
|
|
|
Purchasing : |
L/C, Cash and Credit |
GENERAL INFORMATION
|
Suppliers : |
Avni Textile Limited, Punjab |
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Customers : |
Fortune Axim Limited, Hong Kong |
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No. of Employees : |
40 (Approximately) |
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
|
Bankers : |
· State Bank of India · Citibank N.A. · DBS Bank Limited · HSBC Limited · ICICI Bank Limited ·
Punjab National Bank |
|||||||||||||||||||||||||||
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|
|||||||||||||||||||||||||||
|
Facilities : |
(Rs.
In Millions)
Notes: The loans from SBI, ICICI Bank and DBS Bank are secured against Hypothecation of Stock and Book Debts of the Company with pari pasu clause. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Name : |
P. C. Ghadiali and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Internal Auditors : |
|
|
Name : |
Lahoti Navneet and Company Chartered Accountants |
|
Address : |
Mumbai, Maharashtra, India |
|
|
|
|
Subsidiary
Companies : |
Lahoti Spintex Limited G. Varadan Limited |
|
|
|
|
Entities in which
KMP / relatives of KMP have significant
influence : |
· PSWare Information Private Limited · Sri Laxmi Exports (Partnership Firm) · Kirti Stock Brokers Private Limited · Bauble Investment Private Limited · Hind Commerce Limited |
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs. 2/- each |
Rs. 60.000 Millions |
|
|
|
|
|
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29382500 |
Equity Shares |
Rs. 2/- each |
Rs. 58.765
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
29171500 |
Equity Shares |
Rs. 2/- each |
Rs. 58.343
Millions |
|
211000 |
Add: Forfeited Shares |
|
Rs. 0.116
Million |
|
|
|
|
|
|
|
Total |
|
Rs.58.459 Millions |
(i) Reconciliation of the number of shares and amount outstanding at the
beginning and at the end of the reporting year:
|
Particulars |
As at 31.03.2013 |
|
|
Equity shares
with voting rights |
Number of shares |
Rs. in millions |
|
Opening Balance |
29171500 |
58.459 |
|
Less : Shares Forfeited |
- |
- |
|
Closing Balance |
29171500 |
58.459 |
(ii) Details of shares held by each shareholder holding more than 5%
shares:
|
Name of shareholder |
As at 31.03.2013 |
|
|
Equity shares
with voting rights |
Number of shares |
% holding |
|
Ujwal R Lahoti |
3823000 |
13.11 |
|
Umesh R Lahoti |
4484000 |
15.37 |
|
Jayashri U Lahoti |
2375500 |
8.14 |
|
Manjushri Umesh Lahoti |
1934500 |
6.63 |
|
Rukmini R Lahoti |
1522000 |
5.22 |
|
Kirti Stock Brokers Private Limited |
1610000 |
5.52 |
|
Billion Way Garment Limited |
4250000 |
14.57 |
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 |
58.459 |
58.459 |
58.459 |
|
(b) Reserves & Surplus |
688.089 |
567.339 |
507.319 |
|
(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) |
746.548 |
625.798 |
565.778 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.422 |
0.422 |
30.422 |
|
(b) Deferred tax liabilities (Net) |
17.784 |
20.879 |
22.042 |
|
(c) Other long term liabilities |
1.380 |
5.518 |
6.840 |
|
(d) long-term provisions |
1.346 |
1.123 |
0.920 |
|
Total Non-current
Liabilities (3) |
20.932 |
27.942 |
60.224 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
603.937 |
146.356 |
177.911 |
|
(b) Trade payables |
40.873 |
15.453 |
26.193 |
|
(c) Other current liabilities |
197.279 |
53.649 |
33.022 |
|
(d) Short-term provisions |
18.566 |
14.378 |
14.433 |
|
Total Current
Liabilities (4) |
860.655 |
229.836 |
251.559 |
|
|
|
|
|
|
TOTAL |
1628.135 |
883.576 |
877.561 |
|
|
|
|
|
|
II. ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
268.622 |
111.842 |
127.297 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
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 |
159.088 |
108.837 |
103.315 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
56.911 |
51.639 |
27.283 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
484.621 |
272.318 |
257.895 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
10.086 |
73.399 |
137.001 |
|
(b) Inventories |
118.682 |
92.884 |
68.494 |
|
(c) Trade receivables |
826.807 |
279.877 |
290.372 |
|
(d) Cash and cash equivalents |
36.325 |
39.667 |
9.324 |
|
(e) Short-term loans and advances |
90.913 |
77.700 |
101.784 |
|
(f) Other current assets |
60.701 |
47.731 |
12.691 |
|
Total Current
Assets |
1143.514 |
611.258 |
619.666 |
|
|
|
|
|
|
TOTAL |
1628.135 |
883.576 |
877.561 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
5331.751 |
2335.544 |
3084.597 |
|
|
|
Other Income |
41.517 |
16.982 |
(14.997) |
|
|
|
TOTAL (A) |
5373.268 |
2352.526 |
3069.600 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Purchases of stock-in-trade |
4943.505 |
2081.147 |
2747.973 |
|
|
|
Changes in
inventories of finished goods, work-in progress and stock-in-trade |
(25.798) |
(24.389) |
20.670 |
|
|
|
Employee benefits expense |
12.621 |
9.008 |
7.562 |
|
|
|
Other expenses |
217.148 |
155.856 |
152.048 |
|
|
|
TOTAL (B) |
5147.476 |
2221.622 |
2928.253 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
225.792 |
130.904 |
141.347 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
44.834 |
16.501 |
21.938 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
180.958 |
114.403 |
119.409 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
16.941 |
19.739 |
20.405 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
164.017 |
94.664 |
99.004 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
29.705 |
24.986 |
35.921 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
134.312 |
69.678 |
63.083 |
|
|
|
|
|
|
|
|
|
|
Excess
provision for Dividend written back |
0.000 |
3.880 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
421.428 |
366.656 |
321.949 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10.073 |
5.226 |
4.732 |
|
|
|
Dividend |
11.669 |
11.669 |
11.753 |
|
|
|
Tax on Dividend |
1.893 |
1.893 |
1.952 |
|
|
|
Excess provision for Dividend written back |
0.000 |
0.000 |
(0.061) |
|
|
BALANCE CARRIED
TO THE B/S |
532.104 |
421.428 |
366.656 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB value of export |
4941.914 |
2167.386 |
2944.238 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.60 |
2.38 |
2.16 |
|
Expected Sales (2012-2013): Rs.6750.000 Millions
The above information has been parted by Mr. Pradeep Bachukar
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
2.50 |
2.96
|
2.06 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
3.08 |
4.05
|
3.21 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
11.16 |
12.22
|
12.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22 |
0.15
|
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.81 |
0.23
|
0.37 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.33 |
2.66
|
2.46 |
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 |
58.459 |
58.459 |
58.459 |
|
Reserves & Surplus |
507.319 |
567.339 |
688.089 |
|
Net
worth |
565.778 |
625.798 |
746.548 |
|
|
|
|
|
|
long-term borrowings |
30.422 |
0.422 |
0.422 |
|
Short term borrowings |
177.911 |
146.356 |
603.937 |
|
Total
borrowings |
208.333 |
146.778 |
604.359 |
|
Debt/Equity
ratio |
0.368 |
0.235 |
0.810 |
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 |
3084.597 |
2335.544 |
5331.751 |
|
|
|
(24.284) |
128.287 |
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 |
3084.597 |
2335.544 |
5331.751 |
|
Profit |
63.083 |
69.678 |
134.312 |
|
|
2.05% |
2.98% |
2.52% |
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 |
Yes |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
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
(Rs.
In Millions)
|
Particular |
As on 31.03.2013 |
As on 31.03.2012 |
|
LONG-TERM
BORROWINGS |
|
|
|
Loans and advances from related parties |
0.422 |
0.422 |
|
SHORT-TERM
BORROWINGS |
|
|
|
From Others |
83.633 |
0.000 |
|
|
|
|
|
Total |
84.055 |
0.422 |
RESULTS OF OPERATIONS
During the year, the Company has recorded a total income of Rs. 5373.268 Millions, against Rs. 2352.526 Millions in the previous year, with the increase of 128.40% due to favorable government policies in Cotton yarn export and huge surge in China Market. Accordingly Net Profit before Taxation for the financial year ended March, 31, 2013 had also been increased to Rs. 164.017 Millions from Rs. 94.664 Millions with the increase of 73.26% in the previous year. However, the Profit after Tax increased from Rs. 69.678 Millions to Rs. 134.312 Millions an increase of 92.76%.
MANAGEMENT DISCUSSION
AND ANALYSIS
Industry Structure
and Development
The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textile industry also plays a vital role through its contribution to industrial output, employment generation, and the export earning of the country.
The textile sector contributes about 14 per cent to industrial production, 4 per cent to gross domestic product (GDP), and 17 per cent to the country’s export earnings. The Government of India has promoted a number of export promotion policies for the textile sector in the Union Budget 2011-12 and the Foreign Trade Policy 2009-14. This also includes the various incentives under the Focus Market Scheme and Focus Product Scheme; broad basing the coverage of Market Linked Focus Product Scheme for textile products and extension of Market Linked Focus Product Scheme etc. to increase the Indian Shares in the global trade of textiles and clothing.
Lahoti Overseas Limited is an ISO 9001:2008 certified Company and is mainly engaged in the export trading of cotton yarn in all coarser and fine counts, where the Company has strong presence and leadership. The Company is mainly targeting the export of cotton yarn to Far East Asian countries like South Korea, China, Japan, Hong Kong, Malaysia, Vietnam and also cater to Gulf, Meditarian, European, North and South American markets. The Company enjoys the excellent relationship with its overseas customers, which has been built over the years by strictly adhering to delivery schedules maintaining consistent quality and providing prompt after sales service.
Awards and
Recognitions
• The Company has won the Gold, Silver and Bronze trophies consistently since 1997 from TEXPROCIL (Cotton Textile Export Promotion Council) for excellence in export of cotton yarn.
• The Company has won the prestigious “Niryat Shree” award from The Federation of Indian Export Organization (FIEO) for the year 2003- 2004. The Company also won Silver plaque from Government of Maharashtra for the year 1995-56, 1996-97 and Gold Plaque for the year 2009-2010.
• The Company has won the Business World International Business Award for Category – “Best Export House” for excellent performance in exports in the year 2010-11.
• The Company has received Second Award in Merchant Exporter Category and Third Award in Trading House Category from Government of Maharashtra for its export performance in the year 2010-11.
These awards recognised the efforts of the Company in the creation of path breaking trends and excellent export performance in cotton textile Industry.
Outlook
The long term objective of the Company is to remain strong player in the cotton textiles export market with strong emphasis on product and market development, value added yarns, customer services and Technology Up gradation. The Company is also continuously improving its operational efficiency, and cost control which alone can improve the bottom line in future in highly competitive environment. Further, the Company is hopeful to get advantage of the overall good times likely to come for the Indian Cotton Textile Industry and will do all out efforts to secure the bigger share of the increasing market in future.
A stable outlook on cotton and synthetic textiles would result from favourable policy environment, improvements in demand-supply position, continued stability in input costs and consequent improvement in margins/liquidity. It is unlikely that the sector’s outlook will turn positive until fundamental issues such as power shortage, lack of technology and modern machinery and demand slowdown are resolved. However, foreign direct investment in retail is an opportunity that would unleash demand in the long run and offset any slowdown in exports.
Cotton outlook could be revised to negative if input costs turn volatile, which could intensify inventory price risks, cash flows and liquidity. Given the sector’s high debt dependence for operational as well as capex needs, any volatility in EBITDA could lead to huge swings in leverage. The Company expects much better sales and profits for the F.Y. – 2013-14.
Financial and
Operational Performance
During the year, the Company has recorded a total income of Rs. 5373.268 Millions, against Rs. 2352.526 Millions in the previous year, with the increase of 128.40% due to favorable government policies in Cotton yarn export and huge surge in China Market. Accordingly Net Profit before Taxation for the financial year ended March, 31, 2013 had also been increased to Rs. 164.017 Millions from Rs. 94.664 Millions with the increase of 73.26% in the previous year. However, the Profit after Tax increased from Rs. 69.678 Millions to Rs. 134.312 Millions an increase of 92.76%.
The ongoing cost reduction measures and efficient operational system implemented by the Company has resulted in better utilization of resources and funds of the Company.
CONTINGENT LIABILITIES:
a) Contingent Liabilities not provided for in respect of Bills Discounted Rs. 495.836 Millions (Previous Year Rs. NIL).
b) Contingent Liability in respect of Letter of Credit opened amounts to Rs. 95.800 Millions
c) Claims not acknowledged by the Company relating to cases contested by the Company :
(Rs. in millions)
|
|
31.03.2013 |
31.03.2012 |
|
Sales Tax Matter |
Nil |
Nil |
|
Income Tax
Matter (Pending before Appellate Authorities in respect of which the Company
is in appeal) |
25.224 |
23.166 |
FIXED ASSETS
· Land
· Building
· Office Equipments
· Furniture and Fixtures
· Motor Car
· Computers
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.60.21 |
|
|
1 |
Rs.101.95 |
|
Euro |
1 |
Rs.83.33 |
INFORMATION DETAILS
|
Information Gathered
by : |
HNA |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
VRN |
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 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--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 |
|
48 |
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.