MIRA INFORM REPORT

 

 

Report Date :

19.04.2014

 

IDENTIFICATION DETAILS

 

Name :

INDIAN ACRYLICS LIMITED

 

 

Registered Office :

Village Harkishanpura, Sub-Teh., Bhawanigarh, District, Sangrur – 148026, Punjab

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

28.02.1986

 

 

Com. Reg. No.:

16-006715

 

 

Capital Investment / Paid-up Capital :

Rs.1353.222 Millions

 

 

CIN No.:

[Company Identification No.]

L24301PB1986PLC006715

 

 

Legal Form :

A Public limited liability company. The company share’s are listed on stock exchange.

 

 

Line of Business :

Manufacturer and Distributor of Acrylic Fiber.

 

 

No. of Employees :

Information declined by the management.

 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD  2530000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is well established company having moderate track.

 

Eventhough the management has reported a drastic dip in its sales volume, there appear a decent profitability position recorded in the books as a results of which the company is gradually wiping off its accumulated losses during 2013.

 

The ratio also take into consideration, huge trade payables which may act as a threat to the liquidity but the fact that the subject has paid off its majority of debt obligations while maintaining sufficient cash reserves, further mitigates the liquidity risks.

 

The rating also take into consideration cyclicality in the acrylic fiber industry due to continuous threat of dumping by overseas producers of acrylic fiber.

 

However, trade relations appear to be fair. Business is active. Payment terms are reported as slow but correct.

 

The company can be considered for business dealings with some caution.

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

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

 

US investment bank Goldman Sachs  has upgraded its outlook on Indian markets as it expects positive impact of the election cycle.

 

India’s economy may grow 4.7 % in the current financial year, lower than the official estimate of 4.9 %, Fitch Rating said. The global rating agency expects the economy to pick up in the next two financial years.

 

Global ratings agency Standard & Poor said increasing focus by India Inc on lowering debt is likely to improve their credit profiles.

 

Singapore (1.1 million Indian tourists in 2012), Thailand (one million), the United Arab Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred holidays hotspots for Indians. The total figure is expected to increase to 1.93 million by 2017, according to the latest Eurmonitor international report.

 

There is a $29.34 bn outward foreign direct investment by domestic companies between April and January of 2013/14 which has seen some signs of recovery according to a Care Ratings report.

 

There are 264 number of new companies being set up every day on average during 2014. Most of them are registered in Mumbai. India had 1.38 million registered companies at the end of January, 2014.

 

Twitter like messaging service Weibo Corporation has filed to raise $ 500 million via a US initial public offering. Alibaba, which owns a stake in Weibo is expected to raise about $ 15 billion New York this year in the highest profile Internet IPO since Facebook’s in 2012.

 

Bharti Airtel has raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at a coupon rate of three per cent and maturing in 2020. This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98 % coupon rate in February.

 

Indian Oil Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost complete Paradip refinery in Odhisha in three to four years. The company board is set to consider the setting up of a 700000 tonne per annum polypropylene plant at an estimated cost at Rs.3150 crore.

 

Global chief information officers at gathering in Bangalore in April to meet Indian startups at an event called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.

 

 

INFORMATION DENIED

 

Management Non Co-operative

 

Tel No. : 91-172-2793112

 

 

LOCATIONS

 

Registered Office/Factory :

Village Harkishanpura, Sub-Teh., Bhawanigarh, District, Sangrur – 148 026, Punjab, India

Tel. No.:

91-167-2278106 / 2278166

Fax No.:

91-167-2278110

E-Mail :

shares@indianacrylics.com

ialsadmn@indianacrylics.com

sandeep@indianacrylics.com

info@indianacrylics.com

Website :

www.indianacrylics.com

 

 

Corporate Office :

SCO 49-50, Sector 26, Madhya Marg, Chandigarh – 160 019, India

Tel. No.:

91-172-2793112 / 2792385 / 2790979 / 2793117 / 2790831

Fax No.:

91-172-2794834 / 2790887 / 2790835

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. Vikas Pratap

Designation :

Chairman

 

 

Name :

Mr. R. K. Garg

Designation :

Managing Director

 

 

Name :

Mr. Dheeraj Garg

Designation :

Additional Managing Director

 

 

Name :

Mr. A. S. Chatha, I.A.S. (Retired)

Designation :

Director

 

 

Name :

Rear Adm. M.M. Chopra (Retired)

Designation :

Director

 

 

Name :

Mr. A. K. Mahajan

Designation :

Nominee PSIDC

 

Name :

Mr. H.K.Singhal

Designation :

Financial Advisor

 

Name :

Mr. A. K. Mahajan

Designation :

Nominee PSIDC

Name :

Prof. (Dr.) B.B. Tandon

Designation :

Director

 

Name :

Mr. Rajeshwar K. Goyal

Designation :

Nominee PNB

 

 

KEY EXECUTIVES

 

Name :

Mr. Bhavnesh K. Gupta

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2013

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

14389675

10.63

Central Government / State Government(s)

18330000

13.55

Bodies Corporate

39356648

29.08

Sub Total

72076323

53.26

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

72076323

53.26

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

232150

0.17

Financial Institutions / Banks

9241583

6.83

Sub Total

9473733

7.00

(2) Non-Institutions

 

 

Bodies Corporate

9862272

7.29

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 million

27872068

20.60

Individual shareholders holding nominal share capital in excess of Rs. 0.100 million

15747015

11.64

Any Others (Specify)

290751

0.21

Any Other

290751

0.21

Sub Total

53772106

39.74

Total Public shareholding (B)

63245839

46.74

Total (A)+(B)

135322162

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

Total (A)+(B)+(C)

135322162

0.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Distributor of Acrylic Fiber.

 

 

Products :

Product Description

Item Code No.

Acrylic Fibre

5503.30

Acrylic Tow

5501.30

Acrylic Waste

5505.10

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Quantitative Data

Item manufactured

2010-2011 Qty.(MT)

Licenced /Registered Capacity

Acrylic Fibre and Waste

 

Delicenced

Installed Capacity #

Acrylic Fibre and Waste

42000

Production

Acrylic Fibre

26499

 

Acrylic Fibre Waste

515

 

# AS certified by the Management and relied on by the Auditors being a technical matter.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management.

 

 

Bankers :

·         Punjab National Bank

·         State Bank of India

·         State Bank of Patiala

·         Indian Overseas Bank

 

 

Facilities :

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

From Banks

 

 

Rupee term Loans

 

 

Foreign Currency Loans

32.676

69.533

 

 

 

SHORT TERM BORROWINGS

 

 

Cash Credit Account

96.481

116.149

 

 

 

Total

129.157

185.682

 

Note :

 

LONG-TERM BORROWINGS

 

The Term Loans from banks are secured by mortgage created on all the immovable assets of the Company, hypothecation of all the moveable assets including movable machinery, machinery parts, tools and accessories and other movables, (save and except book debts), subject to charges created or to be created in favour of the Company's Bankers for securing working capital limits. These Loans are further guaranteed by Sh. R.K.Garg, Managing Director, Sh. Dheeraj Garg, Additional Managing Director and Mrs. Sunena Garg.

 

SHORT TERM BORROWINGS

 

Cash Credit / Working capital borrowings are secured by hypothecation of book debts, raw-material, finished goods, semi-finished goods, consumable stores and spares including stocks in transit of the company and also by a second charge on the fixed assets of the company and further guaranteed by Sh. R.K. Garg, Managing Director, Sh. Dheeraj Garg, Additional Managing Director and Mrs. Sunena Garg and also by Indlon Chemicals Limited.

`

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

S. C. Dewan and Company

Chartered Accountants

Address :

Swastik Vihar, Panchkula

 

 

Subsidiaries :

Indlon Chemicals Limited

 

 

Enterprises over which Key Management personnel (KMP) are able to exercise significant control and with whom transactions have taken place during the year:

·         SAB Industries Limited

·         Steel Strips Limited

·         Malwa Chemtex Udyog Limited

·         Steel Strips Wheels Limited

·         Steel Strips Infrastructures Limited

 

 

 

CAPITAL STRUCTURE

 

As on 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

150000000

Equity Shares

Rs.10/- each

Rs.1500.000 Millions

 

Issued, Subscribed andPaid-up Capital :

No. of Shares

Type

Value

Amount

135322162

Equity Shares

Rs.10/- each

Rs.1353.222 Millions

 

No of shares held by Shareholders holding 5% and above:-

 

Particulars

No. of Shares

Percentage Holding

Shri Dheeraj Garg

10,965,889

8.10

IFCI Limited

9,515,753

7.03

SAB Industries Limited

14,793,772

10.93

SAB Udyog Limited

16,880,646

12.47

PSIDC Limited

18,330,000

13.55

 

 

 

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

1,353.222

1,353.222

1,313.222

(b) Reserves & Surplus

(722.737)

(764.423)

(984.778)

(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)

630.485

588.799

328.444

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

32.676

69.533

421.893

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

154.312

93.100

115.000

(d) long-term provisions

0.000

0.000

0.000

Total Non-current Liabilities (3)

186.988

162.633

536.893

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

96.481

116.149

100.793

(b) Buyer Credits

258.167

147.338

0.000

(c) Trade payables

1,213.749

1,415.274

1,593.823

(d) Other current liabilities

106.732

87.710

272.452

(e) Short-term provisions

35.113

54.556

69.098

Total Current Liabilities (4)

1,710.242

1,821.027

2,036.166

 

 

 

 

TOTAL

2,527.715

2,572.459

2,901.503

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

901.246

956.325

1,027.018

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

20.210

13.570

16.404

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.000

0.000

0.000

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

0.000

0.000

0.000

(e) Other Non-current assets

10.034

11.062

10.236

Total Non-Current Assets

931.490

980.957

1,053.658

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1,081.086

1,058.878

1,245.102

(c) Trade receivables

293.427

392.811

364.789

(d) Cash and cash equivalents

70.395

78.449

68.872

(e) Short-term loans and advances

130.127

47.120

148.337

(f) Other current assets

21.190

14.244

20.745

Total Current Assets

1,596.225

1,591.502

1,847.845

 

 

 

 

TOTAL

2,527.715

2,572.459

2,901.503

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

Income

3,875.372

5,007.350

4,081.750

 

Other Income

51.800

53.652

53.332

 

TOTAL (A)

3,927.172

5,061.002

4,135.082

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

2,216.919

3,126.398

2,915.583

 

Purchases of Stock-in-Trade

447.379

967.782

477.957

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

294.253

(7.284)

(439.405)

 

Employees benefits expense

146.797

117.776

101.918

 

Extra Ordinary Items

0.000

(78.607)

555.320

 

Claim Setteled

(81.449)

0.000

0.000

 

Prior Period Adiustment

1.710

(1.483)

(96.335)

 

Other expenses

604.801

710.259

-0.107

 

TOTAL (B)

3,630.410

4,834.841

3,514.931

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

296.762

226.161

620.151

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

190.255

125.339

125.673

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)

106.507

100.822

494.478

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

64.822

97.586

490.033

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

41.685

3.236

4.445

 

 

 

 

 

Less

TAX (I)

0.000

0.000

0.886

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-I)  

41.685

3.236

3.559

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

549.145

1,759.414

1,074.198

 

TOTAL EARNINGS

549.145

1,759.414

1,074.198

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

1,160.961

2,056.691

1,640.830

 

Components and Stores parts

16.172

14.110

15.658

 

TOTAL IMPORTS

1,177.133

2,070.801

1,656.488

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

0.310

0.020

0.030

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2013

31.12.2013

30.09.2013

 

Unaudited

Unaudited

Unaudited

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

1485.700

1834.000

1553.300

Total Expenditure

1398.900

1753.000

1395.600

PBIDT (Excl OI)

86.800

81.000

157.700

Other Income

06.600

10.900

7.200

Operating Profit

93.400

91.900

164.900

Interest

3.520

5.630

12.380

Exceptional Items

0.000

0.000

0.000

PBDT

58.200

35.600

41.100

Depreciation

18.000

25.100

33.500

Profit Before Tax

40.200

10.500

7.600

Tax

0.000

0.000

0.000

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

40.200

10.500

7.600

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

40.200

10.500

7.600

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)

1.06

0.06

0.09

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

1.08

0.06

0.11

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.66

0.13

0.15

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.07

0.01

0.01

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.20

0.31

1.59

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.93

0.87

0.91

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns.)

(INR in Mlns.)

(INR in Mlns.)

Share Capital

1313.222

1353.222

1353.222

Reserves & Surplus

(984.778)

(764.423)

(722.737)

Share Application money pending allotment

0.000

0.000

0.000

Net worth

328.444

588.799

630.485

 

 

 

 

long-term borrowings

421.893

69.533

32.676

Short term borrowings

100.793

116.149

96.481

Total borrowings

522.686

185.682

129.157

Debt/Equity ratio

1.591

0.315

0.205

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Sales

4,081.750

5,007.350

3,875.372

 

 

22.677

(22.606)

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Sales

4,081.750

5,007.350

3,875.372

Profit After Tax

3.559

3.236

41.685

 

0.09%

0.06%

1.08%

 

 

 

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

No

 

 

CONTINGENT LIABILITIES NOT PROVIDED FOR

 

The company has executed a corporate Guarantee and has hypothecated its currents assets in favour of the Banks of M/s Indian Acrylics Limited. For a sum of up to Rs. 1380.000 millions to secure their working capital borrowings including working capital term loan.

 

 

 

STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER 2013

(Rs. In Millions)

 

Particulars

Quarter Ended

Half Year Ended

 

30.09.2013

30.06.2013

30.09.2013

 

(Unaudited)

(Unaudited)

(Unaudited)

 

 

 

 

 

1

Net Sales (Net of excise duty)

1144.800

1264.100

2408.900

 

Domestic Sales

546.600

354.000

900.700

 

Export Sales

138.100

132.500

270.600

 

Total Income from Operations (Net)

1553.300

1485.700

3039.000

2

Expenditure

 

 

 

 

a Increse Decrease Stock in Trade

(160.900)

(48.800)

(209.700)

 

b. Cost of Materials Consumed

1289.200

1181.700

2470.900

 

c. Purchase of Stock-in-Trade

0.000

0.000

0.000

 

d. Changes in Inventories of Finished Goods & Stock in trade

0.000

0.000

0.000

 

e. Employee Benefits Expenses

44.900

39.300

84.200

 

f. Depreciation and amortisation Expense

33.500

18.000

51.500

 

g. Other Expenses

222.100

226.600

448.700

 

h. Prior Period Adjustment

0.300

0.100

0.400

 

Total Expenses

1590

1416.900

2846.000

3

Profit  from  Operations   before  Other Income,  Finance Costs & Exceptional Items (1-2)

1429.200

68.800

193.000

4

Other Income

7.200

6.600

13.800

5

Profit Before Finance Costs & Exceptional Items   (3+4)

131.400

75.400

206.800

6

Finance Costs

123.800

35.200

159.000

7

Profit after Finance Cost but before exceptional items (5-6)

7.600

40.200

47.800

8

Exceptional Items

-

-

-

9

Profit before Tax (7+8)

7.600

40.200

47.800

10

Tax Expense

-

-

-

11

Net Profit for the period (9-10)

7.600

40.200

47.800

12

Paid up Equity Share Capital (Face Value of Rs.10/- Each)

1353.200

1353.200

1353.200

13

Reserves excluding Revaluation Reserves

-

-

-

14

Basic and Diluted Earnings Per Share (Rs.)

 (Not Annualised)

0.06

0.30

0.35

 

 

 

 

 

PART - II    SELECT INFORMATION FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER 2013

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

 

1

Public shareholding

 

 

 

 

 

a.

Number of shares

36683013

64161463

63383013

 

 

b.

Percentage of shareholding

46.84%

47.41%

46.84%

 

2

Promoters and promoter group shareholding

 

 

 

 

 

a.

Pledged/Encumbered

 

 

 

 

 

Number of shares

21069010

21069010

21069010

 

 

 

Percentage of shares (as a % of the total shareholding of promoter and promoter group)

29.29

29.29

29.29

 

 

 

Percentage of shares (as a % of the total share capital of the Company)

15.57

15.57

15.57

 

 

b.

Non-encumbered

 

 

 

 

 

Number of shares

50870139

50091689

50870139

 

 

 

Percentage of shares (as a % of the total shareholding of promoter and promoter group)

70.71

70.39

70.71

 

 

 

Percentage of shares (as a % of the total share capital of the Company)

37.59

37.02

37.59

 

INVESTOR COMPLAINTS

3 MONTHS ENDED

Pending at the beginning of the quarter

Nil

Received during the quarter

5

Disposed of during the quarter

5

Remaining unresolved at the end of the quarter

Nil

 

 

 

STATEMENTS ASSETS AND LIABILITIES

 

PARTICULARS

30.09.2013

UNAUDITED

EQUITY AND LIABILITIES

 

Shareholders' funds

 

 Share Capital

1353.222

 Reserves & Surplus

(674.957)

Sub total- Shareholders' funds

678.265

Non-current liabilities

 

Long-term borrowings

32.676

Deferred tax liabilities (Net)

0.000

Other Long term liabilities

351.261

Long-term provisions

0.000

   Sub total-Non-Current Liabilities

383.937

Current liabilities

 

Short term borrowings

37.029

Trade payables

1472.937

Other current liabilities

393.899

Short-term provisions

56.502

Sub total-Current Liabilities

1960.365

TOTAL EQUITY AND LIABILITIES

3022.567

 

 

ASSETS

 

Non-current assets

 

Fixed assets

882.917

Capital work-in-progress

0.000

Goodwill on consolidation

0.000

Non-current Investments

0.000

Deferred tax assets (net)

0.000

 Long-term Loan and Advances

0.000

Other Non-current assets

10.055

Sub total-Non-Current Assets

 

Current assets

 

Inventories

1188.369

Trade receivables

513.865

Cash and cash equivalents

234.794

Short-term loans and advances

173.509

Other current assets

19.058

Sub total-Current Assets

2129.595

TOTAL- ASSETS

3022.567

 

FINANCIAL HIGHLIGHTS

 

The Company has recorded production of 20683 MT and sale of 21885 MT during the year as against 27912 MT and 29727 MT respectively during the previous year. The Sale and other incomes during the year were Rs. 3875.400 millions as against Rs.5007.300 millions due to decrease in export sales. Export demand for Acrylic Fibre was sluggish due to economic slowdown in major economies.
 
 Despite decrease in overall sales, Gross profit before interest, depreciation interest and tax (GPBIDT) during the current year is higher. The GPBIDT for the year under review is Rs.217.000 millions as against Rs.146.000 millions during the previous year.  The expenditure on interest and financial charges, however, are higher at Rs. 190.300 millions as compared to Rs.125.300 millions due to higher interest rates and increase in forex premiums due to more volatility in currency. After providing for depreciation, the Company suffered a loss of Rs. 38.100 millions. However, due to an exceptional income of Rs.81.400 millions owing to favourable decision on Company’s claim in the court in a long pending arbitration matter with the equipment/technology supplier, the Company earned a net profit during the year of Rs. 41.700 millions compared to that of Rs. 3.200 millions during the previous year.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

a) Industry Structure and Developments

 

World Production of Acrylic Fibre has decreased to Rs. 1.914 millions MT in the year 2012 compared to 20.72 Lacs MT during previous year, showing a negative growth of 7.6%. Indian production of Acrylic Fibre, which was 0.73 Lacs MT during the previous year, has also decreased to 0.70 Lacs MT during the current year. The slowing global economy weighed down by Euro Zone crises, uncertainty about fiscal policy in USA and lower consumer spending affected the growth of Industry. China is consuming nearly 45% Acrylic Fibre of the total world consumption. This year Chinese import of Acrylic Fibre reduced to 186527 MT, a drop of 5% compared to previous year.

 

b) Opportunities and Threat

 

With the continuous efforts on new market development, the Company has been able to seed the products well. These efforts are expected to yield positive results in future. There are some more new investments coming up in the Spinning Industry to create more capacity for yarn production. This will also help in better demand for their products.

 

Company is exploring opportunities for registering its project under Renewal Energy Certificate (REC) Scheme introduced by Govt. of India, to avail the benefit of new clean development technologies as renewable energy generator. The Company is actively working on various other opportunities in these and related areas.

 

Threats before the industry at present are dumping, currency fluctuation, sudden increase in competition from other fibres, softening of commodity prices and Euro zone crises. The threat of dumping has increased further with overseas demand affected and producers from those countries looking for other markets. Besides, weather is also an important factor as length of winter and extent of cold weather also influence the consumption of Acrylic Fibre.

 

The Company is dependent on imported raw materials to a large extent and sudden increase in crude oil, naphtha or gas prices also adversely affect the Company.

 

c) Segment-wise/Product wise performance

 

The Company has only one segment i.e. "Manufacture and sale/ trading of Acrylic Fibre/ Yarn".

 

 

FUTURE OUTLOOK
 
Significant new capacities of Acrylonitrile (main material) manufacturing have started commercial production in the Asian Region during the year 2012-13. On the other hand some more capacities of Acrylic fibre have been closed permanently in the European Union recently. Thus our export to Middle East markets is likely to become more viable.
 
The shifting of Acrylonitrile manufacturing from USA/European Union region to Asia will be continuing during next two-three years. These changes will be good for steady growth of Acrylic fiber Industry in this area.
 
Softening of the commodity prices, along with above changes in the Industry structure will be good for improving the margins in Acrylic Fibre business.

 

 

INTERNAL CONTROL SYSTEMS
 
The Company’s internal control systems comprise of management reporting system as well as inspection of the operations of the Company by Internal Audit checks carried out internally as well as through outside agencies.

 

 

DEMATERIALISATION
 
Effective 25th September 2000, the equity shares of the Company are being compulsorily traded in dematerialized form. As on 31st March2013, a total of Rs.125.300 millions equity shares, representing 92.60% of equity share capital have been dematerialized and about 30385 shareholders are holding shares in dematerialized form.
 
PERFORMANCE 
 

There was no activity of the Company during the year, as the textile scenario was not encouraging throughout the year. The international prices of acrylic fibre and yarn have hardened up substantially, affecting the demand for its products.

 

 

FIXED ASSETS:

 

·             Land

·             Site Development

·             Building

·             Factory

·             Housing Colony

·             Plant and Machinery

·             Electrical Installation

·             Tubewell

·             Weigh Bridge

·             Tools and Implements

·             Furniture / Fixture and Office Equipment


 

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 records 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. 60.26

UK Pound

1

Rs. 101.09

Euro

1

Rs. 83.73

 

 

 

INFORMATION DETAILS

 

Information Gathered by :

PDT

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

SNT


 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

2

--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

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

30

 

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.