MIRA INFORM REPORT
|
Report Date : |
26.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
AARVEE DENIMS AND EXPORTS LIMITED |
|
|
|
|
Registered
Office : |
191 Moje Shahwadi, Near Old Octrol Naka, Narol Sarkhej Highway, Narol Ahmedabad
– 382405, Gujarat |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
28.03.1988 |
|
|
|
|
Com. Reg. No.: |
04-010504 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 234.598 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17110GJ1988PLC010504 |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMA00919C |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCA6019P |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
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|
Line of Business
: |
Manufacturer, Importer and Exporter of Textiles. |
|
|
|
|
No. of Employees
: |
2500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (53) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 7400000 |
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|
|
|
Status : |
Satisfactory |
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|
|
|
Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having satisfactory track record. There seems some dip in the turnover and profit of the company during
2014 however net worth of the company is satisfactory. General financial
position of the company good. Trade relations are reported as fair. Business is active. Payments
terms are reported to be usually correct. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities = A- |
|
Rating Explanation |
Adequate degree of safety. It carry low
credit risk |
|
Date |
07.07.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities = A2+ |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
07.07.2014 |
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. Utsar Pandwar |
|
Designation : |
Chief Finance Officer |
|
Contact No.: |
91-79-30417000 |
|
Date : |
06.12.2014 |
LOCATIONS
|
Registered Office / Mills : |
191 Moje Shahwadi, Near Old Octrol Naka, Narol Sarkhej Highway, Narol
Ahmedabad – 382405, Gujarat, India |
|
Tel. No.: |
91-79-30417000 |
|
Fax No.: |
91-79-30417070 |
|
E-Mail : |
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|
Website : |
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|
Location : |
Owned |
|
Locality : |
Commercial |
|
|
|
|
Unit 1 : |
188/2, Ranipur Village, Opposite CNI Church, Narol, Ahmedabad-382405,
Gujarat, India |
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|
|
|
Unit 2 : |
S. No. 215-217, Village Sari, |
|
|
|
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Unit 3 : |
S. No. 212/2 -212/4, Village Sari, Sarkhej Bavla Highway, Taluka
Sanand, District, Ahmedabad-382405, Gujarat, India |
|
|
|
|
Branch Office 1: |
11-A/2, Court Road, Civil Lines, Delhi – 110054, India |
|
|
|
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Branch Office 2: |
417, Kucha Brijnath, Chandni Chowk, Delhi-110006, |
|
|
|
|
Branch Office 3: |
102, Techno Residency, Plot No. 84, Hindu Colony, Road No. 2, Dadar
(East), Mumbai-400014, |
DIRECTORS
As on 30.09.2014
|
Name : |
Mr. Vinod P Arora |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Ashish V Shah |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Kalpesh V Shah |
|
Designation : |
Whole Time Director |
|
|
|
|
Name : |
Mr. Parmanand T Arora |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajesh P Arora |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sanjay S Majmudar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Ashok C Gandhi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Arvind D Sanghvi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Tilak Raj Kapoor |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amol R Dalal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Utsav Pandwar |
|
Designation : |
Chief Finance Officer |
|
|
|
|
Audit Committee : |
|
|
|
|
|
Name : |
Mr. Nipum V Arora |
|
Designation : |
Vice President (Administration) |
|
|
|
|
Name : |
Mr. Pankaj V Arora |
|
Designation : |
Vice President (Marketing) |
|
|
|
|
Name : |
Mr. Pankil K Shah |
|
Designation : |
Vice President (Garmenting) |
|
|
|
|
Name : |
Mr. K K Mohale |
|
Designation : |
Chief Executive |
|
|
|
|
Name : |
Mr. Amish Shah |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2014
|
Names of Shareholders |
No. of Shares |
Percentage |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
8476725 |
36.13 |
|
|
6953978 |
29364 |
|
|
15430703 |
66.78 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
15430703 |
66.78 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
300 |
0.00 |
|
|
493758 |
2.10 |
|
|
3373100 |
14.38 |
|
|
3867158 |
16.48 |
|
|
|
|
|
|
152974 |
0.65 |
|
|
|
|
|
|
211114 |
9.00 |
|
|
377617 |
1.61 |
|
|
1520204 |
6.48 |
|
|
1514138 |
6.45 |
|
|
6066 |
0.03 |
|
|
4161939 |
17.74 |
|
Total Public shareholding (B) |
8029097 |
34.22 |
|
Total (A)+(B) |
23459800 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
23459800 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Importer and Exporter of Textiles. |
|
|
|
|
Products : |
Not Available |
|
|
|
|
Brand Names : |
Not Available |
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|
Agencies Held : |
Not Available |
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|
Exports : |
|
|
Products : |
Denim Fabric Cotton Yarn |
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Countries : |
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Imports : |
|
|
Products : |
Raw Material |
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Countries : |
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Terms : |
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Selling : |
Cash and Credit (30 Days) |
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|
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Purchasing : |
Cash and Credit (30 Days) |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
2500 (Approximately) |
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Bankers : |
·
State Bank of India ·
Bank of India ·
Standard Chartered Bank ·
IDBI Bank Limited
|
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Facilities : |
LONG TERM
BORROWING
|
|
Joint Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
|
|
|
Joint Statutory Auditors : |
N.C. Shah and Associates Chartered Accountant |
|
|
|
|
Companies and Firms in which Directors/ Directors’ Relatives Exercise
control/ significant influence : |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
35000000 |
Equity Shares |
Rs. 10/- each |
Rs. 350.000 Millions |
|
15000000 |
13% Cumulative Redeemable Non Convertible
Preference Shares |
Rs. 10/- each |
Rs. 150.000 Millions |
|
|
Total |
|
Rs. 500.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23459800 |
Equity Shares |
Rs. 10/-
each |
Rs. 234.598
Millions |
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
23459800 |
Equity Shares |
Rs. 10/-
each |
Rs. 234.598
Millions |
Reconciliation of the number of Equity shares outstanding at the
beginning and at the end of the Year;
|
Particulars |
As at 31st March, 2014 |
|
|
Number |
Amount |
|
|
Shares
outstanding at the beginning of the
year |
23459800 |
234.598 |
|
Shares Issued during the year |
-- |
-- |
|
Shares bought back during the year |
-- |
-- |
|
Shares outstanding at the end of the year |
23459800 |
234.598 |
b. Terms/rights attached to equity shares
The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2014, the amount of per share dividend recognized as distributions to equity shareholders was ` NIL (31st March 2013: Rs. 0.50).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
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 |
234.598 |
234.598 |
234.598 |
|
(b) Reserves & Surplus |
2342.285 |
2337.207 |
1913.301 |
|
(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) |
2576.883 |
2571.805 |
2147.899 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1063.871 |
1251.217 |
1016.062 |
|
(b) Deferred tax liabilities (Net) |
363.626 |
336.259 |
324.862 |
|
(c) Other long term
liabilities |
36.560 |
33.259 |
5.641 |
|
(d) long-term
provisions |
3.244 |
3.010 |
105.230 |
|
Total Non-current
Liabilities (3) |
1467.301 |
1623.745 |
1451.795 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
2531.403 |
2360.235 |
2491.610 |
|
(b) Trade
payables |
940.193 |
622.282 |
706.830 |
|
(c) Other
current liabilities |
422.243 |
281.277 |
239.399 |
|
(d) Short-term
provisions |
1.540 |
39.737 |
13.362 |
|
Total Current
Liabilities (4) |
3895.379 |
3303.531 |
3451.201 |
|
|
|
|
|
|
TOTAL |
7939.563 |
7499.081 |
7050.895 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
4006.309 |
3949.253 |
3839.314 |
|
(ii)
Intangible Assets |
0.698 |
1.006 |
1.316 |
|
(iii)
Capital work-in-progress |
1.550 |
76.285 |
79.445 |
|
(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 |
93.972 |
113.697 |
51.089 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
4102.529 |
4140.241 |
3971.164 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
|
|
|
|
(b)
Inventories |
1839.537 |
1766.240 |
1234.679 |
|
(c) Trade
receivables |
1761.001 |
1359.038 |
1346.155 |
|
(d) Cash
and cash equivalents |
72.033 |
112.941 |
307.699 |
|
(e)
Short-term loans and advances |
64.775 |
50.124 |
146.915 |
|
(f) Other
current assets |
99.688 |
70.497 |
44.283 |
|
Total
Current Assets |
3837.034 |
3358.840 |
3079.731 |
|
|
|
|
|
|
TOTAL |
7939.563 |
7499.081 |
7050.895 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6853.157 |
7233.227 |
6613.930 |
|
|
|
Other Income |
26.145 |
18.281 |
11.350 |
|
|
|
TOTAL |
6879.302 |
7251.508 |
6625.280 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
4542.239 |
4487.359 |
4442.180 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
-458.724 |
(375.052) |
(285.349) |
|
|
|
Employees benefits expense |
374.937 |
329.897 |
282.813 |
|
|
|
Other expenses |
1634.676 |
1564.956 |
1338.757 |
|
|
|
TOTAL
(B) |
6093.128 |
6007.160 |
5778.401 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
786.174 |
1244.348 |
846.879 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
393.572 |
375.451 |
368.066 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
392.602 |
868.897 |
478.813 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
328.486 |
309.559 |
256.926 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
64.116 |
559.338 |
221.887 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
32.295 |
109.162 |
81.565 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
31.821 |
450.176 |
140.322 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Traveling |
0.500 |
0.792 |
24.526 |
|
|
|
Commission on export sales |
39.813 |
34.488 |
42.035 |
|
|
|
Listing fees/ custodian fees |
0.000 |
0.085 |
0.311 |
|
|
|
Subscription fees |
0.000 |
0.331 |
0.000 |
|
|
|
ECB Charges |
0.000 |
0.910 |
0.000 |
|
|
TOTAL EARNINGS |
40.313 |
36.606 |
66.872 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Cotton |
101.567 |
936.953 |
15.295 |
|
|
|
Stores & Spares |
39.861 |
27.704 |
23.100 |
|
|
|
Capital Goods |
106.514 |
76.371 |
30.796 |
|
|
|
Colour and chemical |
88.820 |
111.120 |
110.556 |
|
|
|
Yarn |
43.587 |
91.709 |
54.938 |
|
|
TOTAL IMPORTS |
380.349 |
1243.857 |
234.685 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.36 |
19.19 |
5.98 |
|
Expected Sales 2014-15: Rs.7000.000 Millions
The above information has been parted by Mr. Utsar Pandwar
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
|
Net Profit Margin (PAT/Sales) |
(%) |
0.46 |
6.22 |
2.12 |
|
|
|
|
|
|
|
Operating Profit Margin (PBITD/Sales) |
(%) |
11.47 |
17.20 |
12.80 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.81 |
7.54 |
3.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02 |
0.22 |
0.10 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.40 |
1.40 |
1.63 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.99 |
1.02 |
0.89 |
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 |
234.598 |
234.598 |
234.598 |
|
Reserves & Surplus |
1913.301 |
2337.207 |
2342.285 |
|
Net
worth |
2147.899 |
2571.805 |
2576.883 |
|
|
|
|
|
|
long-term borrowings |
1016.062 |
1251.217 |
1063.871 |
|
Short term borrowings |
2491.610 |
2360.235 |
2531.403 |
|
Total
borrowings |
3507.672 |
3611.452 |
3595.274 |
|
Debt/Equity
ratio |
1.633 |
1.404 |
1.395 |
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 |
6613.930 |
7233.227 |
6853.157 |
|
|
|
9.364 |
(5.255) |
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 |
6613.930 |
7233.227 |
6853.157 |
|
Profit |
140.322 |
450.176 |
31.821 |
|
|
2.12% |
6.22% |
0.46% |
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 |
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 |
No |
|
32] |
PAN
of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter
ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External
Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs.
In Million)
|
Unsecured Loans |
31.03.2014 Rs.
in Millions |
31.03.2013 Rs.
in Millions |
|
Loans from related parties |
221.343 |
191.686 |
|
|
|
|
|
SHORT TERM
BORROWINGS |
|
|
|
Deposits |
|
|
|
From director |
2.100 |
1.600 |
|
From others |
93.183 |
53.418 |
|
Others loans ( from banks) |
34.432 |
0.000 |
|
Total |
351.058 |
246.704 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge Creation/Modification |
Charge amount secured |
Charge Holder |
Address |
Service Request Number (SRN) |
|
1 |
10474951 |
10/01/2014 * |
2,900,000,000.00 |
PNB Investment Services Limited, |
C/O PUNJAB NATIONAL
BANK CIRCLE OFFICE, 6 FLOOR G |
B95447041 |
|
2 |
10448391 |
15/02/2014 * |
11,200,000.00 |
STATE BANK OF INDIA |
MID CORPORATE GROUP
INDUSTRIAL FINANCE BRANCH, RA |
B96582390 |
|
3 |
10411345 |
22/02/2013 |
80,000,000.00 |
IDBI BANK LIMITED |
IDBI TOWER, WTC COMPLEX,
CUFFE PARADE, MUMBAI, Ma |
B70624879 |
|
4 |
10383181 |
10/01/2014 * |
300,000,000.00 |
Bank Of Baroda |
Ashram Road Branch, VallabhSadan, Opp Gujarat Chamber of Commerce, Ahmedabad, Gujarat - 380009, INDIA |
B95235081 |
|
5 |
10348508 |
10/01/2014 * |
255,000,000.00 |
Standard Chartered Bank (Acting as an Security agent) |
Abhijeet II,Ground floor, Near Mithakali Six Roads,, Ahmedabad, Gujarat - 380006, INDIA |
B95609251 |
|
6 |
10289551 |
10/01/2014 * |
288,750,000.00 |
Bank Of Baroda
(acting as an security agent of BOB |
Nr Vallabh Sadan,
Opp Gujarat Chambers of Commerce |
B95234134 |
|
7 |
10281465 |
10/01/2014 * |
305,000,000.00 |
Standard Chartered
Bank acting as Security agent f |
Abhijeet-II,Ground floor, Near Mithakhali Six Roads, Ahmedabad, Gujarat - 380006, INDIA |
B95608832 |
|
8 |
10182938 |
10/10/2009 |
175,000,000.00 |
STANDARD CHARTERED BANK |
GROUND FLOOR, NR.
ABHIJIT-II, NR. MITHAKHALI SIX |
A72071392 |
* Date of charge modification
PERFORMANCE DURING
THE YEAR
Domestic and global economic growth has been declined in the fiscal year 2013-14, the negative trends of economy has revealed its effect over the performance of the company. The company had noted turnover of Rs. 6853.157 Millions compared to preceding year Rs. 7233.227 Millions showing decrease of 5.25%. The Operating Profit for the current year is Rs. 760.029 Millions (previous year Rs. 1226.067 Millions) which is 37% less than the preceding year. Profit after tax is Rs. 31.821 Millions (Previous year Rs.450.176 Millions). Provision for tax Rs. 49.27 Millions & Provision
BUSINESS OVERVIEW:
Global growth was noted in low gear, and the drivers of growth have been changed. The developed economies have gain re-momentum growth but emerging market economies have faced dual challenges like stumpy international demand and unbalanced global financial conditions.
Indian textile and denim industry had faced multiple challenged such as global recession, less export orders due to reductions in inventories by global retail giants, over supply of goods in market , unsteady prices of raw materials like cottons, colour chemicals and allied materials and hike in power and fuel cost. The Indian denims industry is facing cut through competition from countries such as China, Pakistan, Vietnam and Thailand.
The domestic demand of denim in India has grown immensely over the years. While metros have been the main driver of demand in the initial phase for most denim wear brands in the country, the largest growth is now expected to come from a more deep penetration of denim in India. The denim market in India was secured at USD 1.2 Bn in 2011. This is projected to grow at the CAGR of 15-18% and has the potential of almost doubling its size by 2015.
In spite of admirable expectation about future growth of denims industry, the company has faced great challenge of overs supply in market which has been negatively impacted over the performance of the company in fiscal year 2013-14. In negative global economic scenario the Company has noticeable increased its export turnover. Even though of the company has taken effective measures of cost control, but negative domestic demand, high competition and uncertain global scenario has limited the turnover of the company at Rs.68531.57.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRIAL STRUCTURE
AND DEVELOPMENT
The textile industry in India has been a pioneer industry. India’s industrialization in other fields has mainly been achieved on the back of the resources generated by this industry. Indian textile industry is the second largest in the world. It has the largest cotton acreage of 9 million hectares and is the third largest producer of this fiber. It ranks fourth in terms of staple fibre production and sixth among filament yarn production. The country accounts for about one fourth of global trade in cotton yarn.
Today, globalization has brought opportunities for Indian textile industry. At the same time it is also exposed to threats, particularly from cheap imported fabrics. Thus, the industry has to fight for its share in international textile trade
Overall Review
The global economic outlook remained ambiguous and challenging with a growth of about 3% in 2013. There were many reasons for this sluggishness including weak recovery in the US and Europe, unstable situation of Middle East nations and a general economic slowdown in emerging economies like China, Singapore and India.
Indian economy is also passing through worst phase, when growth has reached its decadal low; inflation has reached its height and rupee at bottom low against dollar and euro. Reduced infrastructure spending by the Government has deterioted position further. Although agriculture and its akin segment has shown some sign of improvement in second half owing to good monsoon but manufacturing sector is feeling the heat which has restricted overall economic growth to below 5%.
India is the second largest producer of textile and garments with 24% of world spindle capacity. The Indian apparel sector is one of the largest contributing sectors of India’s exports worldwide; this sector contributes to 4% of India’s GDP in which denim sector had contributed more than 22%. The Indian denim textile exports have shown a healthy growth in the past decade due to removal of quota export by the Government of India (GoI).
In India, it has been noticed that the major segment of consumers are between the age group of 16-35 years and they prefer denim wearing which have bust-up overall demands of denim apparels and it is expected that the same fashion trends will continue in the coming future. In spite of glazed expectancy, the financial year 2013-14 the demand of denims remained sluggish across the value chain. Global economic slowdown has reduced demand of denim in global markets. Indian denim industry had faced vast international completion from neighborhood large denim manufacturer nations. The cut throat domestic and international competition has reduced margins and insisted the denim manufactures to focus on the quality of products.
OUTLOOK
Indian Market:
Fiscal 2013-14 saw a combination of various external and internal events that kept markets turbulent, interest rates high and investor confidence low, resulting in shrinking investment, scarcity of demand and low GDP growth. Indian economic growth had slowed quickly from 8.9% in 2010-11 to an officially estimated 4.9% in fiscal 2014, caused in large part by structural factors hampering investment activity. Decline in financial savings, sluggish growth in fixed capital formation over successive quarters, persistence of high inflation and low business confidence contributed to the decline in potential growth of all sectors, particularly in the absence of adequate structural policy measures and probability of undefined parliament situation after parliament election 2014.
India’s textiles industry is one of the backbones of the national economy. It is also one of the largest contributing sectors of India’s exports worldwide. India’s growing population has been a key driver for growth of textile, denim and readymade garment industry. With new undertakings entering the denims industry and existing
enterprises expanding their production capacities in expectation of high demand, the industry has been faced enormous competition that has put pressure on denim producer’s profit margins. At present Indian denim industry is facing a situation of over capacity as there is demand and supply mismatch. There is also a temporary pressure on prices. The denim industry is currently struggling with serious challenges in finding the necessary cost efficient skills high cost of power and finance.
It is expected that the stable government will present long tern textile policy which should help to grow the economy in the coming years and the demand and prices of denim and textile products should improve which will empower the Company to regain steady or better performance.
Export Market:
In the global market, the denim industry has the right prospective and a unlimited challenge ahead. It is worth noting that China, Hong Kong, South Korea and Taiwan have registered their presence significantly in the world denim textile market through conscious efforts while they continued to globalise their textile economy.
During the year denim exporter’s revenue and margin has remain downcast on the back of the persistent economic slowdown in key export destinations of US and Europe and continuous deterioration in India’s competitiveness. However, to equalizer the impact, Indian exporters are diversifying into other geographies. Textile exporters continue to face slowdown with order sizes becoming smaller from existing clients in US and EU coupled with selling price pressure.
OPPORTUNITIES AND
THREATS
Future overview
The denim and textile industry in passing from sluggish trends, it is expected that domestic and international scenario will change in the coming years global and national economy should grow and the demand of denim and textile products should improve. India is one of the favorite destinations in the eyes of international buyers of denim fabric and garments, which will help to improve the trade scenario in forthcoming years. The fluctuation in the currency especially against the dollar is becoming problematic for long term booking of orders. Cotton prices are increasing regularly as are other input costs including power and logistics. New pollution control norms proposed to be introduced by the Government will increase the operating cost further.
Financial Review:
During this year the company delivered flat performance owing to excess market supply and law demand of denims. Turnover remained for the year ended 31st March, 2014 was Rs.6681.698 Millions, a reduction of 5.54% over the previous year. During the year Export was 27.26 % of total sales. During the year export sales increased by 16.40 % compare to previous year.
STATEMENTS OF
UNAUDITED FINANCIAL RESULTS FRO THE QUARTER AND SIX MONTHS ENDED 30TH
SEPTEMBER 2014
|
Sr. No |
Particulars |
Standalone |
||
|
Quarter Ended |
SIX
Months Ended |
|||
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
||
|
Unaudited |
Unaudited |
Unaudited |
||
|
1 |
Income From
Operations |
|
|
|
|
|
a. Net Sales/ Income from Operations (Net of Excise Duty) |
1870.367 |
1702.794 |
3573.161 |
|
|
b. Other Operating Income |
48.086 |
40.640 |
88.726 |
|
|
Total Income from
Operations (Net) |
1918.453 |
1743.434 |
3661.887 |
|
2 |
Expenditure |
|
|
|
|
|
a. Cost of material Consumed |
1202.790 |
1181.393 |
2384.183 |
|
|
b. Purchase of Stock-in trade |
-- |
-- |
-- |
|
|
c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade |
(12.984) |
(105.065) |
(118.049) |
|
|
d. Employees Benefit Expenses |
256.271 |
254.583 |
510.854 |
|
|
e. Depreciation and Amortisation Expenses |
112.990 |
103.632 |
216.613 |
|
|
f. Other expenses |
193.411 |
85.052 |
353.283 |
|
|
Total Expenses |
|
|
|
|
3 |
Profit from
Operations before Other Income, Interest and Exceptional Items |
96.883 |
63.976 |
160.859 |
|
4 |
Other Income |
(0.337) |
5.510 |
5.173 |
|
5 |
Profit from
ordinary activities before finance cost & exceptional items |
96.546 |
69.486 |
166.032 |
|
6 |
Finance Costs |
79.962 |
85.275 |
165.237 |
|
7 |
Profit from
ordinary activities after finance costs & exceptional items |
16.384 |
(15.789) |
0.795 |
|
8 |
Exceptional items |
-- |
-- |
-- |
|
9 |
Profit from
ordinary activities before tax |
16.384 |
(15.789) |
0.795 |
|
10 |
Tax Expense |
(0.396) |
0.405 |
0.009 |
|
11 |
Net Profit from
ordinary activity after tax |
16.980 |
(16.194) |
0.786 |
|
12 |
Extraordinary Items |
-- |
-- |
-- |
|
13 |
Net Profit After
Tax |
16.980 |
(16.194) |
0.786 |
|
14 |
Paid-up equity share capital (face value of Rs.10 per share) |
234.598 |
234.598 |
234.598 |
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
-- |
-- |
-- |
|
16 |
Earning Per Share (of Rs.10 each) (not annualized) |
|
|
|
|
|
Basic EPS |
0.72 |
(0.69) |
0.03 |
|
|
Diluted EPS |
|
|
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
Public Shareholding |
|
|
|
|
|
- No. of shares |
8029097 |
8029097 |
8029097 |
|
|
- Percentage of shareholding |
34.22% |
34.22% |
34.22% |
|
2 |
Promoter &
Promoter Group Shareholding |
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
- No. of shares |
350000 |
Nil |
Nil |
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
2.27% |
Nil |
Nil |
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
1.49% |
Nil |
Nil |
|
|
b) Non-encumbered |
|
|
|
|
|
- No. of shares |
15080703 |
15080703 |
15080703 |
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
97.73% |
100.00% |
100.00% |
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
64.29% |
65.78% |
65.78% |
|
B |
INVESTOR COMPLAINTS |
3 months ended (30.09.2014) |
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
Nil |
|
|
Resolved during the quarter |
Nil |
|
|
Remaining unresolved at the end of the quarter |
Nil |
STATEMENT OD
ASSETS AND LIABILITIES AS ON 30.09.2014
|
SOURCES OF FUNDS |
|
|
As at 30.09.2014 (Unaudited) |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
Shareholders'
Funds |
|
|
|
|
(a) Share Capital |
|
|
234.598 |
|
(b) Reserves & Surplus |
|
|
2325.731 |
|
Sub
Total – share Holder’s Funds |
|
|
2560.329 |
|
|
|
|
|
|
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
|
824.946 |
|
(b) Deferred tax liabilities (Net) |
|
|
352.148 |
|
(c) Other long term
liabilities |
|
|
37.060 |
|
(d) long-term
provisions |
|
|
3.244 |
|
|
|
|
1217.398 |
|
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
|
|
2544.431 |
|
(b) Trade
payables |
|
|
1115.987 |
|
(c) Other
current liabilities |
|
|
424.522 |
|
(d) Short-term
provisions |
|
|
3.812 |
|
|
|
|
4088.752 |
|
|
|
|
|
|
TOTAL |
|
|
7866.479 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
3840.553 |
|
(b)Goodwill
on Consolidation |
|
|
0.000 |
|
(c) Non-current Investments |
|
|
0.000 |
|
(d) Deferred tax assets (net) |
|
|
0.000 |
|
(e) Long-term Loan and Advances |
|
|
96.111 |
|
(f) Other
Non-current assets |
|
|
0.000 |
|
|
|
|
3936.664 |
|
Current assets |
|
|
|
|
(a)
Current investments |
|
|
|
|
(b)
Inventories |
|
|
|
|
(c) Trade
receivables |
|
|
2061.860 |
|
(d) Cash
and cash equivalents |
|
|
1574.577 |
|
(e)
Short-term loans and advances |
|
|
133.779 |
|
(f) Other
current assets |
|
|
72.557 |
|
|
|
|
87.042 |
|
Sub –
total current assets |
|
|
3929.815 |
|
|
|
|
|
|
TOTAL |
|
|
7866.479 |
FIXED ASSETS
·
Leasehold
·
Land and Land Development
·
Building
·
Plant and Machinery
·
Electric Installation
·
Furniture and Fixtures
·
Factory and Office Equipments
·
Vehicles
·
Computer
·
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.46 |
|
|
1 |
Rs.98.51 |
|
Euro |
1 |
Rs.77.30 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
ANU |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
53 |
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.