MIRA
INFORM REPORT
|
Report Date : |
06.08.2014 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN TEXTILES
LIMITED (w.e.f.06.10.2006) |
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Formerly Known
As : |
MAHAVIR SPINNING
MILLS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
08.10.1973 |
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Com. Reg. No.: |
16-003345 |
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Capital
Investment / Paid-up Capital : |
Rs. 636.519
Millions |
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CIN No.: [Company Identification
No.] |
L17111PB1973PLC003345 |
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TAN No.: [Tax Deduction and
Collection Account No.] |
JLDM03450G /
JLDM03167D |
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PAN No.: [Permanent Account No.] |
AABCM4692E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Cotton Yarn, Synthetic Yarn and Woven Fabric. |
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No. of Employees
: |
25000 (Approximately) |
RATING and COMMENTS
|
MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
56-70 |
A |
Financial and operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established company having fine track record. The company possesses a healthy financial profile marked by strong
networth base, healthy cash accruals and moderate gearing. The ratings also take into consideration the volatility in cotton
prices. Trade relations are fair. Business is active. Payment terms are
reported as regular and as per commitments. In view of strong market position, the subject can be considered 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
N E W S
As per the latest IMF study, the total weigh of emerging markets in the
GDP of the world on a purchasing power parity basis has seen a sizeable shift.
It highlights how as against 51 % in 2005, the emerging economies now account
for close to 56 % of the global purchasing power GDP as per the latest survey.
And with the emerging economies growing at a faster rate than their developed
counterparts, there are every possibility that the their share goes up further
in the coming years. China may surpass the US over the next few years.
Politics and economics are very intricately connected. They tend to
influence each other in ways that could be very complex and far-reaching. The
prospects of the India’s economy have been seriously compromised due to
political corruption. High inflation, poor standard of living are to a great
extent a result of rampant corruption in the country. China on the other hand,
seems to be facing diametrically opposite challenge. American hedge fund manager
Jim Chanos has been keenly following the political and economic development in
the dragon economy and has figured out something that is quite worrying. He is
of the view that the Chinese economy could be heading toward trouble on account
of new Chinese President Xi Jingping’s very aggressive anti-corruption drive.
Chanos believes tat many things such as apartment sales, luxury products, etc.
were largely bought with dirty money. And it is now beginning to impact
consumption. This may indeed be bad news for an economy that is struggling to
transition from an investment-driven export-oriented economy to a domestic
consumption-driven economy.
A study published by Firstpost has revealed that asset classes like real
estate and equities were the biggest beneficiaries of the liberalization
policies. A firm called Ciane Analytics studied returns from assets
including equities, gold, fixed deposits, G-Secs and real estate since 1991.
Real estate outperformed every other asset classes during the 23-year period
with an annualized return of 20 % ! Equities came in second with annualized
return of 15.5 % ! However, while these returns may seem mouthwatering, the
fact is that the return from equities adjusted for inflation came down to just
7.1 %.
Some brief news are as under
. R-Power to buy Jaypee’s hydro assets
. Investors await justice in NSEL case
. India seeks MFN status from Pakistan ahead of meeting
. Ukrain’s clashes with rebels hinder MH17 crash investigation
. India exploring merger of state-owned hydro PSUs
..Higher costs weigh down profit growth to slowest in 9 quarters
..Wal-Mart to expand wholesale business in India
. GMR group moves to strengthen balance sheet
. Central Bank to sell 4 % stake to Life Insurance Corporation
. Tata Chemicals plans to raise up to Rs 10000 mn.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long term rating : AA |
|
Rating Explanation |
High degree of safety and carry lowest risk.
|
|
Date |
March 07, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating : A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
March 07, 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
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Mr. Neeraj Gupta |
|
Designation : |
Accounts Manager |
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Contact No.: |
91-161-2670707 |
|
Date : |
05.08.2014 |
LOCATIONS
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Registered / Corporate Office : |
Chandigarh Road, Ludhiana – 141010, Punjab, India |
|
Tel. No.: |
91-161-2662543-47/
2670707/ 09/ 2228943-48 |
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Fax No.: |
91-161-2662542/
2664541/ 2670503/ 2601040/ 2601048/ 2602710/ 2222616 |
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E-Mail : |
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Website : |
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Location : |
Owned |
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Locality : |
Commercial |
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Head Office : |
C-58, Focal Point, Ludhiana - 141010, Punjab, India |
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Tel. No.: |
91-161-2670707/ 2670708/ 2670709 |
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Fax No.: |
91-161-2670503 |
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E-Mail : |
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Plants : |
· Anant Spinning Mills New Industrial Area, Mandideep - 462046, Madhya Pradesh, India · Arihant Spinning Mills Industrial Area, Malerkotla-148023, Punjab, India · Arisht Spinning Mills Village Baddi, Tehsil Nalagarh, District Solan -173205, Himachal Pradesh, India · Auro Dyeing Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Auro Weaving Mills Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Auro Textiles Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Mahavir Spinning Mills (Gassed Mercerised Yarn Unit) Phagwara Road, Hoshiarpur-146001, Punjab, India · Mahavir Spinning Mills (Textile Division) Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Vardhman Spinning Mills, Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Vardhman Spinning and General Mills (Unit-I and II), Chandigarh Road, Ludhiana-141010, Punjab, India · Vardhman Fabrics Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns Budhni, District Sehore, Madhya Pradesh, India · Vardhman Fabrics (Power Division) Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns (Power Division) Budhni, District Sehore, Madhya Pradesh, India |
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Branch Offices : |
Located at: ·
P-22, 3rd Floor, Flat No.6, C.I.T. Road, Scheme IV,
Kolkata - 700014, West Bengal, India ·
Chandigarh Road, Ludhiana - 141010, Punjab, India ·
314, Solaris II, Opposite L and T Gate No.6, Saki
Vihar Road, Andheri (East), Mumbai - 400072, Maharashtra, India ·
504, Dalamal House, Nariman Point, Mumbai - 400021,
Maharashtra, India ·
309-310, Surya Kiran Building, 19, Kasturba
Gandhi Marg, New Delhi - 110001, India ·
377-B, Muthuswami Industrial Complex, Palladam
Road, Tirupur - 638604, Tamilnadu, India ·
1st
Floor, Palm Court, Opposite Management Development Institute, MG Road, Sector
- 16, Gurgaon - 122001, Haryana, India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Shri Paul Oswal |
|
Designation : |
Chairman and
Managing Director |
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Date of Birth/Age : |
71 Years |
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Qualification : |
M. Com. |
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Experience : |
46 Years |
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|
Name : |
Mr. S. Padmanabhan [Nominee of IDBI] |
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Designation : |
Director |
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Name : |
Mr. Arun Kumar Purwar |
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Designation : |
Director |
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Date of Birth/Age : |
14.05.1946 |
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Expertise in
specific functional area : |
Eminent Banker having experience of more than 39 years in Banking. |
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Qualification : |
M.Com, PGDCA |
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Date of Appointment
: |
01.06.2007 |
|
Other Directorship : |
·
Reliance Communications Limited Jindal Steel and
Power Limited Apollo Tyres
Limited India Infoline
Limited Jindal Power
Limited C&C
Constructions Limited IL&FS Renewable
Energy Limited (IREL) Sri Kavery Medical
Care (Trichy) Limited PHL Capital Private
Limited PHL Finance Private
Limited Vardhman Chemtech
Limited India Venture
Advisors Private Limited Energy Infratech
Private Limited ONGC-Tripura Power
Company Private Limited Mizuho Securities
India Private Limited |
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Name : |
Mr. Prafull Anubhai |
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Designation : |
Director |
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Date of Birth/Age : |
20.01.1938 |
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Qualification : |
B.Com, B.S.C. (Eco.) – London |
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Date of Appointment : |
26.07.1980 |
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Name : |
Mr. Subash Khanchand Bijlani |
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Designation : |
Director |
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Date of Birth/Age : |
06.09.1942 |
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Qualification : |
B. Tech, PGDC in Mgt and Finance |
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Date of Appointment : |
30.03.2005 |
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|
Name : |
Mr. Ashok Kumar
Kundra |
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Designation : |
Director |
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|
Name : |
Mr. Darshan Lal Sharma |
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Designation : |
President and Executive
Director |
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Date of Birth/Age : |
10.11.1948 |
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Expertise in
specific functional area : |
Business Executive having experience of more than 38 years in Textile
and Sewing Thread Business. |
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Qualification : |
B.Sc. (Engg.), M.B.A. |
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Date of Appointment
: |
08.05.1985 |
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Other Directorship : |
·
Vardhman Acrylics Limited VTL Investments
Limited VMT Spinning
Company Limited Vardhman Yarns and
Threads Limited Vardhman Nisshinbo
Garments Company Limited |
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|
Name : |
Mr. Shravan Talwar |
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Designation : |
Director |
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Date of Birth/Age : |
17.04.1970 |
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Qualification : |
B.A. (Computational and Applied Maths and Economics), M.B.A. |
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Date of Appointment : |
29.01.2010 |
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Name : |
Mrs. Suchita Jain |
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Designation : |
Executive
Director |
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Date of Birth/Age : |
20.03.1968 |
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Qualification : |
M.Com |
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Date of Appointment : |
29.01.2010 |
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|
Name : |
Mr. Sachit Jain |
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Designation : |
Executive
Director |
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Date of Birth/Age : |
08.07.1966 |
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Qualification : |
B. Tech., MBA |
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Date of Appointment : |
30.03.2005 |
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|
Name : |
Mr. Neeraj Jain |
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Designation : |
Executive
Director |
KEY EXECUTIVES
|
Name : |
Ms. Karan Kamal Walia |
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Designation : |
Company Secretary |
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Name : |
Mr. Rajeev Thapar |
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Designation : |
CGM (Finance, Accounts and Taxation) |
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|
Name : |
Mr. Neeraj Gupta |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of
Shareholder |
Total No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
|
|
|
|
|
|
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|
1461658 |
2.30 |
|
|
37908355 |
59.56 |
|
|
39370013 |
61.85 |
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|
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Total
shareholding of Promoter and Promoter Group (A) |
39370013 |
61.85 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
7794389 |
12.25 |
|
|
82313 |
0.13 |
|
|
421553 |
0.66 |
|
|
5092873 |
8.00 |
|
|
13391128 |
21.04 |
|
|
|
|
|
|
1558776 |
2.45 |
|
|
|
|
|
|
5520180 |
8.67 |
|
|
1999361 |
3.14 |
|
|
1812421 |
2.85 |
|
|
1635995 |
2.57 |
|
|
176426 |
0.28 |
|
|
10890738 |
17.11 |
|
Total Public
shareholding (B) |
24281866 |
38.15 |
|
Total (A)+(B) |
63651879 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
63651879 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 Million 
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of Cotton Yarn, Synthetic Yarn and Woven Fabric. |
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Products/ Services : |
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Imports : |
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Products : |
Raw Material and Machinery |
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Countries : |
v Japan v European
Countries |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
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Suppliers : |
LMW Corporation |
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Customers : |
Wholesalers and Retailers v Arvind Limited,
Ahmedabad |
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No. of Employees : |
25000 (Approximately) |
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Bankers : |
v State Bank of Patiala v Allahabad Bank v ICICI Bank Limited v Punjab National Bank v State Bank of India v Bank of India v Corporation Bank v IDBI Bank Limited v Canara Bank v Standard Chartered Bank v State Bank of Hyderabad v State Bank of Mysore v Axis Bank Limited v Exim Bank v Oriental
Bank of Commerce |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
S.C. Vasudeva and Company Chartered Accountants |
|
Address : |
New Delhi, India |
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Subsidiaries [As
on 31.03.2013] : |
· VMT Spinning Company Limited Vardhman
Acrylics Limited VTL
Investments Limited Vardhman
Yarns and Threads Limited Vardhman
Special Steels Limited (upto 7th April, 2011) Vardhman
Nisshinbo Garments Company Limited (Formerly known as Vardhman Texgarments
Limited) |
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|
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|
Associates [As
on 31.03.2013] : |
· Vardhman Textile Components Limited Vardhman
Spinning and General Mills Limited Vardhman
Special Steels Limited (w.e.f 8th April, 2011) |
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Enterprises
over which key Management Personnel and relative of such personnel is able to
exercise significant influence or control [As on 31.03.2013] : |
· Vardhman Holdings Limited Vardhman
Apparels Limited Smt.
Banarso Devi Oswal Public Charitable Trust Sri
Aurobindo Socio Economic and Management Research Institute *Adinath
Investment and Trading Company *Devakar
Investment and Trading Company Limited *Srestha
Holdings Limited *Santon
Finance and Investment Company Limited *Flamingo
Finance and Investment Company Limited *Ramaniya
Finance and Investment Company Limited *Marshall
Investment and Trading Company (Private) Limited *Pardeep
Mercantile Company (Private) Limited *Plaza
Trading Company (Private) Limited *Anklesh
Investments (Private) Limited *Syracuse
Investment and Trading Company (Private) Limited *Mahavir
Spinning Mills (Private) Limited (Formerly known as Vardhman Textiles
Processors (Private) Limited) **Northern
Trading Company **Ambar
Syndicate **Paras
Syndicate **Adinath
Syndicate **Eastern
Trading Company |
NOTE:
* Only Loan
Transactions have taken place with these Companies.
** No transaction has taken place during the year.
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
Rs. 10/- each |
Rs. 900.000 Millions |
|
10000000 |
Redeemable Cumulative Preference Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
Total |
|
Rs. 1000.000
Millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63651879 |
Equity Shares |
Rs. 10/- each |
Rs. 636.519
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
636.500 |
636.519 |
636.519 |
|
(b) Reserves and Surplus |
27846.700 |
22129.177 |
19323.658 |
|
(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) |
28483.200 |
22765.696 |
19960.177 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
19250.600 |
19849.605 |
19270.273 |
|
(b) Deferred tax liabilities (Net) |
2661.500 |
2271.425 |
2028.523 |
|
(c) Other long
term liabilities |
123.400 |
102.777 |
25.802 |
|
(d) long-term
provisions |
44.200 |
41.652 |
38.096 |
|
Total Non-current
Liabilities (3) |
22079.700 |
22265.459 |
21362.694 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
8355.000 |
7576.464 |
5115.357 |
|
(b)
Trade payables |
966.100 |
462.790 |
836.821 |
|
(c)
Other current liabilities |
8085.300 |
5674.843 |
4154.730 |
|
(d) Short-term
provisions |
832.600 |
487.981 |
370.278 |
|
Total Current
Liabilities (4) |
18239.000 |
14202.078 |
10477.186 |
|
|
|
|
|
|
TOTAL |
68801.900 |
59233.233 |
51800.057 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
|
28592.600 |
23278.143 |
21939.355 |
|
(ii)
Intangible Assets |
|
77.051 |
12.158 |
|
(iii)
Capital work-in-progress |
|
2128.951 |
1819.122 |
|
(iv)
Intangible assets under development |
|
0.000 |
0.000 |
|
(b) Non-current Investments |
4931.800 |
2931.902 |
3441.984 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
889.500 |
1425.940 |
906.903 |
|
(e) Other
Non-current assets |
300.500 |
500.208 |
0.204 |
|
Total Non-Current
Assets |
34714.400 |
30342.195 |
28119.726 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
2191.600 |
2661.120 |
1705.194 |
|
(b)
Inventories |
18715.400 |
14994.448 |
13152.309 |
|
(c)
Trade receivables |
7355.700 |
6319.161 |
5368.302 |
|
(d) Cash
and cash equivalents |
527.400 |
266.291 |
584.158 |
|
(e) Short-term
loans and advances |
5118.600 |
4471.366 |
2691.717 |
|
(f)
Other current assets |
178.800 |
178.652 |
178.651 |
|
Total
Current Assets |
34087.500 |
28891.038 |
23680.331 |
|
|
|
|
|
|
TOTAL |
68801.900 |
59233.233 |
51800.057 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (net) |
51713.100 |
41597.105 |
39180.015 |
|
|
|
Other Income |
645.800 |
548.982 |
605.707 |
|
|
|
TOTAL (A) |
52358.900 |
42146.087 |
39785.722 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
25123.900 |
20963.734 |
22003.383 |
|
|
|
Purchases of stock-in-trade |
571.300 |
268.972 |
310.170 |
|
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(2294.700) |
(898.142) |
1269.049 |
|
|
|
Employee
benefits expense |
3201.600 |
2683.433 |
2211.299 |
|
|
|
Other expenses |
12503.400 |
10297.675 |
8458.267 |
|
|
|
TOTAL (B) |
39105.500 |
33315.672 |
34252.168 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
13253.400 |
8830.415 |
5533.554 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1518.300 |
1743.477 |
1732.227 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
11735.100 |
7086.938 |
3801.327 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2941.300 |
2538.578 |
2346.718 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
8793.800 |
4548.360 |
1454.609 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
2275.000 |
1311.103 |
357.949 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
6518.800 |
3237.257 |
1096.660 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
NA |
15995.920 |
16030.788 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1568.514 |
1072.497 |
|
|
|
Components & Spare Parts |
|
527.857 |
426.394 |
|
|
|
Capital Goods |
|
1333.570 |
1263.147 |
|
|
TOTAL IMPORTS |
NA
|
3429.941 |
2762.038 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
102.42 |
50.86 |
17.23 |
|
NOTES:
1)
Other Income comprises dividend received from subsidiary
companies.
2)
Interest expense is net of interest income from deposits / bonds
amounting to Rs 14.900 Millions for the quarter ended March 31, 2014 and Rs.
104.900 Millions for the period ended March 31, 2014.
3)
Figures for previous periods have been recast / regrouped,
wherever necessary to make them comparable. The figures for the quarter ended
March 31 are the balancing figures between audited figures in respect of the
full financial year and the published year to date figures upto December 31.
4) The Board of Directors has
recommended a dividend of Rs.6/- per share on fully paid up equity share of the
Company. In addition thereto, the Board has also recommended a special dividend
of Rs.5/- per share on occasion of golden Jubilee Year of commencement of
operation of the Group.
5)
The Board of Directors has approved the above results in
their meeting held on May 23, 2014.
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
12.45 |
7.68 |
2.76 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
17.00 |
10.93 |
3.71 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.77 |
8.40 |
3.13 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31 |
0.20 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.97 |
1.20 |
1.22 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.87 |
2.03 |
2.26 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
636.519 |
636.519 |
636.500 |
|
Reserves & Surplus |
19323.658 |
22129.177 |
27846.700 |
|
Net
worth |
19960.177 |
22765.696 |
28483.200 |
|
|
|
|
|
|
long-term borrowings |
19270.273 |
19849.605 |
19250.600 |
|
Short term borrowings |
5115.357 |
7576.464 |
8355.000 |
|
Total
borrowings |
24385.630 |
27426.069 |
27605.600 |
|
Debt/Equity ratio |
1.222 |
1.205 |
0.969 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
39180.015 |
41597.105 |
51713.100 |
|
|
|
6.169 |
24.319 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
39180.015 |
41597.105 |
51713.100 |
|
Profit |
1096.660 |
3237.257 |
6518.800 |
|
|
2.80% |
7.78% |
12.61% |
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 |
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 |
No |
|
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 |
Yes |
|
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 |
LITIGATION DETAILS
PUNJAB & HARYANA HIGH
COURT
CASE STATUS INFORMATION
SYSTEM
Case Status
: PENDING
|
Status of CRIMINAL MISCELLANEOUS PETITION 46236 of 2013 M/S VARDHMAN UDHYOG & ANR
Vs.
M/S VARDHMAN TEXTILES LTD Pet's Adv. : SOURABH GOEL
Last Listed On : No Date Mentioned List Type : NO LIST TYPE MENTIONED FIR No. : NO FIR DETAILS AVAILABLE / NOT A CRIMINAL
CASE Complaint No. : NO COMPLAINT DETAILS AVAILABLE Category : NO CATEGORY MENTIONED :NO BENCH MENTIONED Last Hearing Detail 2 : NO BENCH MENTIONED
Case Updated
on: Thursday, November 07, 2013 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10443552 |
30/12/2013 * |
450,000,000.00 |
STATE BANK OF
INDIA |
IFB, GOLDEN
TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B94846144 |
|
2 |
10446949 |
30/12/2013 * |
695,000,000.00 |
STATE BANK OF
INDIA |
IFB, GOLDEN
TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B94847530 |
|
3 |
10435934 |
30/12/2013 * |
435,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR-21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA
- 400005, INDIA |
B94891157 |
|
4 |
10426904 |
30/12/2013 * |
1,600,000,000.00 |
STATE BANK OF
INDIA |
IFB, GOLDEN
TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B94853181 |
|
5 |
10348797 |
28/12/2012 * |
2,650,000,000.00 |
STATE BANK OF
PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B66523994 |
|
6 |
10324897 |
25/06/2012 * |
1,300,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR-21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
B44004083 |
|
7 |
10307728 |
25/06/2012 * |
4,000,000,000.00 |
IDBI BANK
LIMITED |
INDIAN RED CROSS
SOCIETY BUILDING, 1, RED CROSS R |
B43941921 |
|
8 |
10304839 |
25/06/2012 * |
2,350,000,000.00 |
STATE BANK OF
INDIA |
S.C.B MILLER
GANJ, PAHWA HOSPITAL COMPLEX (MID C |
B43971183 |
|
9 |
10293871 |
27/05/2013 * |
750,000,000.00 |
KOTAK MAHINDRA
BANK LIMITED |
7TH FLOOR,
AMBADEEP BUILDING, 14 K G MARG, NEW |
B77078913 |
|
10 |
10228291 |
29/06/2011 * |
2,350,000,000.00 |
BANK OF INDIA |
579-R, MODEL
TOWN, LUDHIANA, PUNJAB - 141002, INDIA |
B17104969 |
|
11 |
10188277 |
07/10/2011 * |
1,510,000,000.00 |
BANK OF INDIA |
LUDHIANA MID
CORPORATE BRANCH, LUDHIANA, PUNJAB - 141002, INDIA |
B23622962 |
|
12 |
10179999 |
07/10/2011 * |
200,000,000.00 |
ORIENTAL BANK OF
COMMERCE LIMITED |
DELHI, INDIA, NEW
DELHI, DELHI - 110001, INDIA |
B22727721 |
|
13 |
10071930 |
26/09/2011 * |
1,990,000,000.00 |
STATE BANK OF
INDIA |
SCB, MILLER
GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23363922 |
|
14 |
10039489 |
29/09/2011 * |
1,150,000,000.00 |
STATE BANK OF PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23619174 |
|
15 |
10027682 |
08/10/2011 * |
445,000,000.00 |
STATE BANK OF
MYSORE |
224, MITTAL
COURT,, C- WING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B22547624 |
|
16 |
10027686 |
19/01/2012 * |
1,000,000,000.00 |
AXIS BANK
LIMITED |
SURYA TOWER,
MALL ROAD, LUDHIANA, PUNJAB - 141003, INDIA |
B30385801 |
|
17 |
10026460 |
07/10/2011 * |
500,000,000.00 |
BANK OF INDIA |
LUDHIANA MID CORPORATE
BRANCH, LUDHIANA, PUNJAB - 141003, INDIA |
B23619463 |
|
18 |
10025352 |
08/10/2011 * |
709,500,000.00 |
ALLAHABAD BANK |
INTER. CUM
INDUS. FINANCE BRANCH, NEAR CHEEMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B24050007 |
|
19 |
10026463 |
19/10/2011 * |
1,000,000,000.00 |
CANARA BANK |
BHARAT NAGAR
CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B25074543 |
|
20 |
10023023 |
26/09/2011 * |
500,000,000.00 |
STATE BANK OF
INDIA |
SCB, MILLER
GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23358260 |
|
21 |
10024172 |
26/09/2011 * |
500,000,000.00 |
STATE BANK OF
INDIA |
SCB, MILLER
GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23363625 |
|
22 |
10020245 |
07/10/2011 * |
1,500,000,000.00 |
ORIENTAL BANK OF
COMMERCE |
OVERSEAS BRANCH,
GT ROAD, LUDHIANA, PUNJAB - 141001, INDIA |
B24636458 |
|
23 |
10023021 |
07/10/2011 * |
1,500,000,000.00 |
STATE BANK OF
HYDERABAD |
SI BRANCH SONA
COMPLEX, GT ROAD, MILLER GANJ, PUNJAB - 141003, INDIA |
B24291510 |
|
24 |
10023020 |
11/10/2011 * |
3,000,000,000.00 |
PUNJAB NATIONAL
BANK |
LARGE CORPORATE
BRANCH, BHAGWATI TOWER, CHEEMA CH |
B23621048 |
|
25 |
10013500 |
29/09/2011 * |
1,500,000,000.00 |
STATE BANK OF
PATIALA |
COMMERCIAL BRANCH,
MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23620180 |
|
26 |
80035604 |
19/10/2011 * |
1,500,000,000.00 |
CANARA BANK |
BHARAT NAGAR
CHOWK, LUDHIANA, PUNJAB - 141001, INDIA |
B25069626 |
|
27 |
80033171 |
18/10/2011 * |
710,000,000.00 |
CORPORATION BANK |
SCO-34, FEROZ
GANDHI MARKET, PAKHOWAL ROAD, LUDHIANA, PUNJAB - 141001, INDIA |
B25067190 |
|
28 |
90170200 |
20/10/2011 * |
1,200,000,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA LIMITED |
INDIAN RED CROSS
SOCIETY BUILDING, 1, RED CROSS ROAD, POST BAG NO. 231, NEW DELHI, DELHI -
110001, INDIA |
B25232042 |
|
29 |
90170184 |
19/01/2012 * |
671,600,000.00 |
AXIS BANK
LIMITED |
SURYA TOWER,
LUDHIANA, PUNJAB - 141003, INDIA |
B30383343 |
|
30 |
90170169 |
11/10/2011 * |
450,000,000.00 |
PUNJAB NATIONAL
BANK |
LARGE CORPORATE
BRANCH, BHAGWATI TOWER, CHEEMA CH |
B23623390 |
|
31 |
90169366 |
07/04/2008 * |
250,000,000.00 |
ICICI BANK
LIMITED |
ICICI BANK TOWER,
NBCC PLACA, BHISHAM PITAMAH MAGR, PRAGTI VIHAR, NEW DELHI, DELHI - 110003,
INDIA |
A36609873 |
|
32 |
90169343 |
25/06/2012 * |
16,000,000,000.00 |
STATE BANK OF
PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B44001337 |
* Date of Charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2013 (Rs.
In Millions) |
|
SHORT TERM BORROWINGS |
|
|
Loans repayable on demand |
|
|
- From related parties |
14.780 |
|
|
|
|
Total |
14.780 |
CORPORATE INFORMATION
Subject is a public company incorporated under the provisions of the
Companies Act, 1956 on 8th October, 1973. The name of the company at its
incorporation was Mahavir Spinning Mills Limited and subsequently changed to
Vardhman Textiles Limited on 5th September, 2006. The company is engaged in
manufacturing of Cotton Yarn, Synthetic Yarn and woven Fabric.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs.
In Millions) |
|
(i) Claims not acknowledged as debts |
134.223 |
|
(Ii) Bank Guarantees and Letters of Credit outstanding |
2261.240 |
|
(iii) Bills discounted with banks |
417.664 |
|
(iv) Other monies for which the company is contingently liable a) The Company has contested the additional demand in respect of Sales Tax, Excise Duty etc., amounting to Rs.51.502 Millions (Previous Year Rs. 55.449 Millions). As against this a sum of Rs. 10.171 Millions (Previous Year Rs. 15.585 Millions) has been deposited under protest and stands included under the head “other recoverable - Short-term loans and advances“. The Company has filed an appeal with the Appellate Authorities and is advised that the demand is not in accordance with law. No provision, therefore, has been made in accounts in respect thereof. b) The Company has contested the additional demand in respect of income tax amounting to Rs. 503.600 Millions (Previous Year Rs. 481.900 Millions). Pending appeal with appellate authorities, provision of Rs. 232.300 Millions (Previous Year Rs. 282.300 Millions) has not been made in the books of account as the company is confident to get the desired relief. c) The company had taken over the textile undertaking of Vardhman Holdings Limited (formerly known as Vardhman Spinning and General Mills Limited) by a scheme of Arrangement and De-merger. An injunction was obtained against the London Branch of the said textile undertaking for preventing disposal of assets upto the value of Pound Sterling 2.99 Lac as a result of a court case pending in London for alleged non-fulfilment of an agreement of cotton purchase. The said matter had been decided against the said textile undertaking and accordingly, Pound Sterling 0.48 Lac lying in the bank account at London had been paid to the claimant pursuant to the Order of the Court. The said amount was written off in the books of the said undertaking by way of debit to the statement of Profit and Loss. No provision has been made for the balance decreed amount by the undertaking in view of the fact that the said undertaking was prevented by force majure in fulfilling its part of contract. The Company as successor to the textile undertaking is contesting this matter in Indian Courts and is confident that there would not be any further liability in this regard. |
|
FIXED ASSETS:
Tangible Assets:
v
Free-hold
Land
v
Leasehold
Land
v
Buildings
v
Plant
and Equipment
v
Furniture
and Fixtures
v
Vehicles
v
Office
equipment
Intangible Assets:
v
Computer
Software
v
Right
to use Power lines
PRESS RELEASE
BARING PE INDIA
HIKES STAKE IN VARDHMAN TEXTILES
March
12, 2014
The
PE firm previously also built a small stake in Vardhman Holdings, a separately
listed holding firm of the Vardhman Group, which owns around a quarter of
Vardhman Textiles.
Baring Private Equity Partners India (Baring PE India) has hiked its
stake in Vardhman Textiles Limited
(VTL), by acquiring an additional 1.1 per cent stake for Rs 251.000
Millions ($4.1 million) through open market transaction on Tuesday.
It bought 0.76 million shares at a price of Rs 327.92 each on the NSE,
taking its holding in the textile firm to 3.15 per cent.
Baring PE India has been slowly building its stake in the company for
the last year or so and with the latest investment it is estimated to put in a
total of over Rs 56 crore to buy shares of VTL.
VTL, a part of the Vardhman Group and one of the top integrated textile
companies in the country, has presence in the Indian textile sector through
manufacturing of fibre, yarn, sewing thread and fabrics and is one of the top
yarn firms by capacity.
Formerly known as Mahavir Spinning Mills, it generates 60 per cent of
its total income from yarn products; within the yarn products, the focus is on
non-commoditised products. It generates 23 per cent from fabrics, 8 per cent
from fibre and 9 per cent from sewing threads. Over one-third of its revenues
come from exports.
VTL and its subsidiaries have 20 manufacturing facilities across India
and employ close to 25,000 people.
For FY13, the company posted revenues of Rs 50210.000 Millions with an
EBITDA of Rs 10240.000 Millions and PAT of Rs 3560.000 Millions.
It also has subsidiary companies like Vardhman Yarns and Threads Limited
(VYTL), Vardhman Acrylics Limited (VAL), VMT Spinning Company Limited (VMT), VSS
Limited and VNG Company Limited. Of these, VAL and VSS are also listed firms.
Shares of VTL were trading at Rs 341 per share, up 3.51 per cent in a
strong Mumbai market on Wednesday.
Baring PE India has previously also built a small stake in Vardhman
Holdings, a separately listed holding firm of the SP Oswal-led Vardhman Group,
which owns around a quarter of VTL.
CMT REPORT (Corruption, Money Laundering and 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. 60.87 |
|
|
1 |
Rs. 102.67 |
|
Euro |
1 |
Rs. 81.70 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
66 |
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 and 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.