MIRA INFORM REPORT
|
Report Date : |
27.12.2014 |
IDENTIFICATION DETAILS
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Name : |
BHANDARI HOSIERY EXPORTS
LIMITED |
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Registered
Office : |
Bhandari House, Village Meharban,
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
25.11.1993 |
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Com. Reg. No.: |
53-013930 |
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Capital
Investment / Paid-up Capital : |
Rs.146.527 millions |
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CIN No.: [Company Identification
No.] |
L17115PB1993PLC013930 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
Public Limited Liability
Company. The Company’s Shares are Listed on the Stock Exchanges. |
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Line of Business
: |
Subject is mainly engaged in the business of manufacturing
of textiles consisting of fabric and garments. |
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No. of Employees
: |
Information declined by
the Management. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (45) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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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. General financial position of the company seems to be decent.
Profitability of the company is fair. Trade relations are fair. Business is active. Payment terms are
reported to be usually correct. The company can be considered for business dealings at usual trade
terms and condition. |
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) |
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|
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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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 |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
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Rating |
Long Term Rating = BBB - |
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Rating Explanation |
Moderate degree of safety and moderate credit risk |
|
Date |
12.02.2014 |
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Rating Agency Name |
CRISIL |
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Rating |
Short Term Rating = A3 |
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Rating Explanation |
Moderate degree of safety and high credit risk |
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Date |
12.02.2014 |
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 DECLINED
Management non-cooperative
(Tel No.: 91-88720-16410)
LOCATIONS
|
Registered Office/ Corporate Office/ Factory : |
Bhandari House, Village
Meharban, |
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Tel. No.: |
91-161-3260742/ 3260743/ 3260744/ 2690166 |
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Fax No.: |
91-161-2690394 |
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E-Mail : |
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Website : |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Nitin Bhandari |
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Designation : |
Chairman and Managing Director |
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DIN No.: |
01385065 |
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Name : |
Mr. M. M. Sikka |
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Designation : |
Independent Director |
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DIN No.: |
01194696 |
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Name : |
Mr. Ashish Thapar |
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Designation : |
Independent Director |
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DIN No.: |
00077281 |
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Name : |
Mr. Vikas Nayyar |
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Designation : |
Non-Executive Director |
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DIN No.: |
00071047 |
KEY EXECUTIVES
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Name : |
Mr. Gurinder Makkar |
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Designation : |
Company Secretary |
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Name : |
Mr. Surinder Kumar |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2014
|
Category
of Shareholder |
No.
of Shares |
%
of holding |
|
(A)
Shareholding of Promoter and Promoter Group |
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|
3475016 |
23.72 |
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|
3475016 |
23.72 |
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Total
shareholding of Promoter and Promoter Group (A) |
3475016 |
23.72 |
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(B)
Public Shareholding |
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|
350000 |
2.39 |
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350000 |
2.39 |
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|
2147267 |
14.65 |
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|
1606354 |
10.96 |
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|
6348750 |
43.33 |
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|
725308 |
4.95 |
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|
161927 |
1.11 |
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|
97414 |
0.66 |
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|
465967 |
3.18 |
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10827679 |
73.90 |
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Total
Public shareholding (B) |
11177679 |
76.28 |
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Total
(A)+(B) |
14652695 |
100.00 |
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(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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|
0 |
0.00 |
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Total
(A)+(B)+(C) |
14652695 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Subject is mainly engaged in the business of
manufacturing of textiles consisting of fabric and garments. |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS –
NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by
the Management. |
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Bankers : |
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Facilities : |
NOTES: LONG TERM
BORROWINGS S.B.I. Term Loan A/C No. 31416133417 at point a) above is repayable in 60 monthly installments of Rs.0.150 million Per month. . Rate of interest is 12.25% p.a. There is no default in repayment of loan and interest thereon. It will be squared up in year 2014-15. SECURITY GIVEN TO
BANK For term loans the
first charge on the fixed assets is given to the lending bank. Second charge
on the current assets has been given to lending bank. All the credit
facilities are guaranteed by personal guarantee of the Managing Director.
Term loans at s no. a, are also collaterally secured by Equitable mortgage of
the land and SHORT TERM
BORROWINGS Security Provided
To The Banks, Financial Institutions Working capital limits are secured by first charge on all
stocks consisting of Raw material, Work in process, finished goods, stores
and spares, goods with fabricators, goods in transit, stock lying on docks,
book debts and all other current assets of the company both present and
future. Extension of charge on the entire fixed assets of the company also
given to the lending bank. All the credit facilities are guaranteed by
personal guarantee of the Managing Director. Working limits are also
collaterally secured by Equitable mortgage of land & - C/C is repayable on demand. Rate of interest payable is 12.75% p.a. There is no default in repayments of the amounts and interest thereon. |
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Banking
Relations : |
--- |
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Independent Auditors : |
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Name : |
Vipan Kumar Aggarwal and Company Chartered Accountants |
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Address : |
SCO 15-16, 3rd Floor, |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Associates : |
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Enterprises over which
KMP is able to exercise Significant influence : |
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CAPITAL STRUCTURE
AS ON 31.03.2014
Authorized Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs.10/- each |
Rs.250.000 millions |
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Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
14652695 |
Equity Shares |
Rs.10/- each |
Rs.146.527 millions |
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Reconciliation of shares
outstanding at the beginning and at the end of the reporting periods
|
Particulars |
Year ended 31st March, 2014 |
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|
No. of shares |
Amount in Millions |
|
|
At the beginning of the period |
14652695 |
146.526 |
|
Outstanding at the end
of the period |
14652695 |
146.526 |
Shares held by each shareholder holding more than 5% share in the
company
|
Particulars |
Year ended 31st March, 2014 |
|
|
No. of shares |
% of Holding |
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|
Nitin Bhandari |
2767830 |
18.89 |
|
Nitika Bhandari |
697711 |
4.76 |
Terms/rights attached
to equity shares
The company has only one class of equity shares having face value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the realized value of the assets of the Company, remaining after payment of all preferential dues. 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 |
146.527 |
146.527 |
100.652 |
|
(b) Reserves & Surplus |
348.140 |
328.372 |
143.620 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
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|
|
|
|
(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
494.667 |
474.899 |
244.272 |
|
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|
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(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
27.900 |
13.248 |
13.536 |
|
(b) Deferred tax liabilities (Net) |
22.157 |
20.249 |
17.478 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) Long-term
provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
50.057 |
33.497 |
31.014 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
265.137 |
220.020 |
194.591 |
|
(b) Trade
payables |
57.159 |
101.425 |
72.268 |
|
(c) Other
current liabilities |
7.624 |
4.865 |
3.350 |
|
(d) Short-term
provisions |
8.574 |
12.932 |
15.333 |
|
Total Current
Liabilities (4) |
338.494 |
339.242 |
285.542 |
|
|
|
|
|
|
TOTAL |
883.218 |
847.638 |
560.828 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
204.344 |
214.353 |
100.869 |
|
(ii)
Intangible Assets |
0.167 |
0.177 |
0.188 |
|
(iii)
Capital work-in-progress |
94.318 |
122.970 |
2.635 |
|
(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 |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
298.829 |
337.500 |
103.692 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
356.228 |
344.678 |
337.996 |
|
(c) Trade
receivables |
150.686 |
101.728 |
75.304 |
|
(d) Cash
and cash equivalents |
10.095 |
3.995 |
6.491 |
|
(e)
Short-term loans and advances |
6.515 |
6.129 |
16.837 |
|
(f) Other
current assets |
60.865 |
53.608 |
20.508 |
|
Total
Current Assets |
584.389 |
510.138 |
457.136 |
|
|
|
|
|
|
TOTAL |
883.218 |
847.638 |
560.828 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
1114.548 |
964.835 |
984.209 |
|
|
|
Other Income |
0.762 |
0.420 |
0.308 |
|
|
|
TOTAL (A) |
1115.310 |
965.255 |
984.517 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
823.256 |
706.400 |
678.246 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
7.953 |
(10.477) |
(4.348) |
|
|
|
Manufacturing Expenses |
127.287 |
114.575 |
144.643 |
|
|
|
Employees benefits expense |
26.782 |
22.281 |
20.695 |
|
|
|
Office & Administrative Expenses |
14.794 |
14.055 |
16.767 |
|
|
|
Auditors Remuneration |
0.101 |
0.101 |
0.050 |
|
|
|
Selling & Distribution Expenses |
33.943 |
35.173 |
37.445 |
|
|
|
TOTAL
(B) |
1034.116 |
882.108 |
893.498 |
|
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
81.194 |
83.147 |
91.019 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
41.362 |
29.013 |
37.661 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
39.832 |
54.134 |
53.358 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
11.956 |
10.793 |
8.013 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
27.876 |
43.341 |
45.345 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
8.109 |
14.564 |
14.748 |
|
|
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
19.767 |
28.777 |
30.597 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
143.592 |
114.815 |
84.218 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
163.359 |
143.592 |
114.815 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
160.316 |
208.547 |
257.590 |
|
|
|
|
|
|
|
|
|
|
CIF VALUE OF IMPORTS |
8.290 |
6.744 |
5.435 |
|
|
|
|
|
|
|
|
|
|
Earnings/ (Loss)
Per Share (Rs.) |
1.35 |
1.96 |
3.04 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2014 |
30.09.2014 |
|
Unaudited |
|
1st
Quarter |
2nd
Quarter |
|
Net
Sales |
|
186.400 |
247.200 |
|
Total
Expenditure |
|
162.700 |
226.100 |
|
PBIDT
(Excl OI) |
|
23.700 |
21.100 |
|
Other
Income |
|
0.300 |
0.000 |
|
Operating
Profit |
|
23.900 |
21.100 |
|
Interest |
|
9.000 |
12.000 |
|
Exceptional
Items |
|
0.000 |
0.000 |
|
PBDT |
|
15.000 |
9.100 |
|
Depreciation |
|
3.000 |
3.000 |
|
Profit
Before Tax |
|
12.000 |
6.100 |
|
Tax |
|
4.000 |
0.100 |
|
Provisions
and contingencies |
|
0.000 |
0.000 |
|
Profit
After Tax |
|
8.000 |
6.000 |
|
Extraordinary
Items |
|
0.000 |
0.000 |
|
Prior
Period Expenses |
|
0.000 |
0.000 |
|
Other
Adjustments |
|
0.000 |
0.000 |
|
Net
Profit |
|
8.000 |
6.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
1.77 |
2.98 |
3.11 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/ Sales) |
(%) |
7.28 |
8.62 |
9.25 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.53 |
5.98 |
8.12 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06 |
0.09 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.59 |
0.49 |
0.85 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.73 |
1.50 |
1.60 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
100.652 |
146.527 |
146.527 |
|
Reserves & Surplus |
143.620 |
328.372 |
348.140 |
|
Money received against share
warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
244.272 |
474.899 |
494.667 |
|
|
|
|
|
|
Long Term borrowings |
13.536 |
13.248 |
27.900 |
|
Short Term borrowings |
194.591 |
220.020 |
265.137 |
|
Total borrowings |
208.127 |
233.268 |
293.037 |
|
Debt/Equity ratio |
0.852 |
0.491 |
0.592 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
984.209 |
964.835 |
1,114.548 |
|
|
|
-1.968 |
15.517 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Revenue from Operations |
984.209 |
964.835 |
1,114.548 |
|
Profit |
30.597 |
28.777 |
19.767 |
|
|
3.11% |
2.98% |
1.77% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
INDEX OF CHARGES:
|
S. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
90179719 |
23/05/2014 * |
437,900,000.00 |
STATE BANK OF INDIA |
SBI CB Ludhiana, FOCAL POINT ROAD, KAILASH NAGAR, LUDHIANA - 141010, PUNJAB, INDIA |
C06679633 |
* Date of charge modification
CORPORATE INFORMATION:
Subject is a public limited
Company incorporated under the provisions of Companies Act, 1956. The Company’s
CIN is L17115PB1993PLC013930 and the Company’s Registered Office is situated in
Punjab at Bhandari House, Village Meharban, Rahon Road, Ludhiana. The Company
is listed at Bombay Stock Exchange Limited (BSE). The Company does not have any
subsidiary Company. The Company is a garment manufacturing company having
vertical production facility to produce High Fashion Knitted Garments. With
more than 18 year experience and state of that art manufacturing facilities,
Bhandari Hosiery manufactures garments of leading international and overseas
brands and some overseas retail chains in the international market, they have a
presence in around 18 countries including quality conscious markets like USA,
Canada, UK and European Union.
The company is engaged
primarily in the manufacture and export of knitted hosiery garments such as T-
Shirts, Pull Overs, Sweat Shirts, Bermudas, Pollo Shirts, Track Suits,
Payajamas, Lowers, Ladies Knitted Tops with embroidery and prints etc. The
Company conform to International standards in Human Recourses Practices and
adopt Eco- friendly standards in production.
PERFORMANCE REVIEW
During the year, the business and economic environment in India and other emerging countries remained challenging. The GDP growth rate dipped below 5%, amongst the lowest levels in a decade. The year witnessed several volatile events like significant depreciation of the rupee, burgeoning current account deficit, weakening and uncertain demand, elevated inflation and interest rates all of which lead to declining business confidence. Despite the continued headwinds and sluggish markets, during the financial year ended 31st March, 2014, the company achieved an all-time high performance in turnover. During the year 2013-14, the Company was able to achieve turnover of Rs.1115.309 millions as against Rs.965.254 millions in the year 2012-13. The Profits after Tax of the Company for the year ended 31.03.2014 has been Rs.19.767 millions as against Rs.28.777 millions in the previous year
EXPORTS
The Exports of the Company for the financial year ended 31.03.2014 were to the tune of Rs.171.467 millions as against Rs.223.370 millions in the previous year.
OVERVIEW OF TEXTILE
INDUSTRY AND EXPORTS
The Textile industry is one of the largest and most important sectors in the Indian economy in terms of output, foreign exchange earnings and employment. India’s Textile industry is one of the leading textile industries in the world. It contributes approximately 14% to India’s industrial production, 4% to the GDP and 17% to the country’s export earnings. It provides direct employment to over 35 million people and is the second largest provider of employment after the agricultural sector. Textiles sector of India did remarkably well in an otherwise dull exports scenario in year 2013-14. Textile exports were worth $30.37 billion in year 2013-14, up from $26.36 billion in the previous year - a growth of 15.24 per cent, compared to a decline of 3.11 per cent in year 2012-13. All major segments in the sector grew at a healthy rate. Readymade garments, which accounts for nearly half of all textile exports at $14.93 billion, grew 15.53 per cent. Cotton yarn and fabrics grew 18 per cent to $8.88 billion, while manmade textiles grew nearly 13 per cent to $5.69 billion. The industry is expected to grow at a significant rate in the future, as it is fuelled by a strong domestic consumption. The textile industry is expected to reach USD 223 billion by 2021. During the year, the overall business and economic environment in India and other emerging countries remained challenging. The GDP growth rate dipped below 5%, amongst the lowest levels in a decade. The year witnessed several volatile events like significant depreciation of the rupee, burgeoning current account deficit, weakening and uncertain demand, elevated inflation and interest rates; all of which lead to declining business confidence. However, the company achieved a growth of 15.55% in total income from operations despite the continued headwinds. The erstwhile Government initiated some steps to kick start manufacturing growth with reduction in excise duty on automobiles, high priority for faster clearance of projects etc. Steps were also taken to rein in the current account deficit by increasing import duty on Gold. But except some respite, there was no significant pick up in the pace of growth. The Loksabha elections in May 2014 were a much awaited event and the country voted decisively in favor of National Democratic Alliance underscoring the wants and hopes of a nation for good governance and a growth oriented policy framework. There is a sense of optimism across the country and the newly formed government has the responsibility to deliver on its promise of stimulating growth. A revival in economic sentiment driven by increase in manufacturing output along with job creation and an easing inflationary environment would be crucial for supporting and sustaining growth in discretionary consumer spending. The apparel industry is amongst the oldest and the largest industries in India. The trend from stitched garments to ready to wear and from unbranded to branded apparel is well established and growing. Viewed from the retailing space the apparel market is the second largest category after food and groceries.
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
INDUSTRY STRUCTURE
AND FUTURE OUTLOOK/ DEVELOPMENTS
The Indian Textile Industry is one of the leading textile industries in the world. The textiles and apparels sector is a major contributor to the Indian economy in terms of gross domestic product (GDP), industrial production and the country’s total export earnings. India earns about 27 per cent of its total foreign exchange through textile exports. Besides, the Indian Textile industry contributes 14 per cent of the total industrial production of the Country. This sector provides employment to over 35 million people and it is expected that the textile industry will generate new jobs during the ensuing years. The industry went through a challenging year with the global sluggishness in world economies. India has been able to face the global economic downturn better than most other countries. India's textile industry has a pervasive effect on its economic life. The Indian textile industry uses a large and diverse range of fibres and yarn, however, cotton is its major input material. Therefore, cotton availability and prices are a major determinant of production efficiency and profitability of textile units. Though the global economy seem to be coming out of the crisis, recovery may be unsteady for a while. The Continuous improvement and investment in weaving and processing will help to meet the demand of quality textiles, which will give an edge to the Indian textile industry over competitors. Upgrading technology and infrastructure is an ongoing process and, with the added support of Government bodies it should boost the Indian textile further. The Textile industry holds a significant position in India by catering to the most basic needs – clothing. The Indian textiles industry is integrated in terms of being extensively engaged in the procurement of raw materials right up to the final production of the actual textile product.
COMPANY'S GROWTH
PROSPECTS AND NEAR TERM OUTLOOK
Although the growth momentum of the Indian economy was impacted with the global economic slowdown, the severity of the impact on India was considerably less when compared to most developed economies. The fiscal and monetary policies implemented by the Government of India helped the economy to weather the downturn phase. The future seems to be good for the Indian Textile Industry both at domestic and international levels as India is still maintaining itself as an attractive destination for retail industry and foreign investments. While it is not possible to fully escape the impact of the global uncertainties, the Indian economy is better placed than many to withstand the shock.
During the year, the business and economic environment in India and other emerging countries remained challenging. The GDP growth rate dipped below 5%, amongst the lowest levels in a decade. The year witnessed several volatile events like significant depreciation of the rupee, burgeoning current account deficit, weakening and uncertain demand, elevated inflation and interest rates all of which lead to declining business confidence.
Despite the continued headwinds and sluggish markets, during the financial year ended 31st March, 2014, the company achieved an all-time high performance in turnover. During the year 2013-14, the Company was able to achieve turnover of Rs.309 millions as against Rs.965.254 millions in the year 2012-13. The Profits after Tax of the Company for the year ended 31.03.2014 has been Rs.19.767 millions as against Rs.28.777 millions in the previous year
FINANCIAL RESULTS (STANDALONE)
|
Type |
Un-Audited |
Un-Audited |
|
Period
Ending |
30.09.2014 |
30.06.2014 |
|
No.
of Months |
3 |
3 |
|
Description |
Amount (Rs. million) |
|
|
Net Sales / Interest Earned / Operating
Income |
247.150 |
186.360 |
|
Other Income |
0.000 |
0.280 |
|
Expenditure |
(226.080) |
(162.720) |
|
Interest |
(11.970) |
(8.970) |
|
Profit Before Depreciation and Tax |
9.100 |
14.950 |
|
Depreciation |
(3.000) |
(3.000) |
|
Profit before Tax |
6.100 |
11.960 |
|
Tax |
(0.100) |
(3.950) |
|
Profit after Tax |
6.000 |
8.010 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Net Profit |
6.000 |
8.010 |
|
Equity Capital |
146.530 |
146.530 |
|
Reserves |
361.730 |
0.000 |
|
Basic EPS after Extraordinary items |
0.41 |
-- |
|
Diluted EPS after Extraordinary items |
0.41 |
-- |
|
Nos. of Shares - Public |
1,11,77,679.00 |
1,11,79,079.00 |
|
Percent of Shares-Public |
76.28 |
76.29 |
|
Operating Profit Margin |
8.53 |
12.84 |
|
Net Profit Margin |
2.43 |
4.30 |
|
Cash EPS |
0.00 |
0.00 |
Notes:
1. The above results have been reviewed by the Audit
committee and approved by the Board of Directors of the Company in its meeting held
on November 13, 2014 at the Registered Office of the Company
2. Limited Review Report has been earned out by
Statutory Auditors of the Company on the slated Results
3. The figures of previous periods have been
regrouped wherever considered necessary
4. The company's operations predominantly
comprises of only one segment - garments. Therefore. the figures shown above
relate to that segment
5. The Company has no Subsidiary Company.
6. The figures have been regrouped, recasted
where ever necessary
FIXED ASSETS:
· Freehold Land
· Building Site and Development
· Temporary Fitting
· Plant and Machinery
· Furniture and Fixture
· Office Equipment
· Car
· Vehicles
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.63.64 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
DPA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
-- PROFITABILITY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with full
security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.