MIRA
INFORM REPORT
|
Report Date : |
04.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
RICHA INDUSTRIES LIMITED |
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|
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Registered
Office : |
Plot No.: 29, DLF Industrial Area, Phase – II, |
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Country : |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
15.09.1993 |
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Com. Reg. No.: |
05-032108 |
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Capital
Investment / Paid-up Capital : |
Rs.170.125 Million |
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CIN No.: [Company Identification
No.] |
L17115HR1993PLC032108 |
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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
: |
Manufacture of Textiles and |
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|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 3400000 |
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|
Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track record. The management has seen a dip in its sales revenue during 2013. The
company possesses a tight liquidity position due to some overused cash credit
limits as well as the expanding order size which may also demand additional
funds. The ratings also take into consideration the working capital intensive
operation which also has it negative effects on the firm’s liquidity
position. Further, the management is also facing general delays in servicing
off its dues for some of the banks. However, trade relations are fair. Business is active. Payment terms
are reported as slow. The company can be considered for business dealings with great
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 1, 2013
|
Country Name |
Previous Rating (30.09.2013) |
Current Rating (01.12.2013) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
The services sector, the largest contributor to India’s GDP, contracted
for the sixth consecutive month in December, as orders dipped. However, hiring
has risen. Direct tax collections rose 12.3 % during the April – December
period of the current financial year. The government has decided to
retain 100 per cent foreign direct investment in both greenfield (new) and
brown field (existing) pharmaceutical companies, despite concerns over genetic
drugs going out of production, if multi-national companies take over domestic
ones. In M&A deals, a non compete clause would not be allowed, except in
special circumstances. The Department of Industrial Policy and Promotion plans
to release the next edition of its consolidated foreign direct investment
policy document on March 31, incorporating changes made in the past year. DIPP
compiles all policies related to India’s FDI regime into a single document to
make it easy for investors to understand. 185 million estimated number of
mobile internet users in India by June 2014, according to a report by the
Internet & Mobile Association of India and IMRB International. India
had 110 million mobile internet users with 25 million in rural areas. $3.77 tn
estimated global IT spending in 2014, according to research firm Gartner Inc.
The growth forecast for this year is cut to 3.1 %from the earlier estimate of
3.5 %. The spending growth forecast for telecom services – a segment that
accounts for more than 40 % at total IT spending – from 1.9 per cent to 1.2 per
cent is the main reason for this overall IT cut. A Reserve Bank of India
committee has recommended setting up a special category of lenders who would
cater to small businesses and households, to expand the number of customers
with access to banking services. These banks would focus onproviding payment
services and deposit products. Indian banks want the free use of
automated teller machines to be capped at five transactions in a month
including that of the bank in which the account is active. This follows state
government order to banks to install security guards at ATM booths after a
woman banker was assaulted in Bangalore. The government is likely to present a
vote on Account in mid-February. The annual Economic Survey will be tabled
later in Parliament along with the full Budget. A full Budget for 2014/15 is
likely to be present in July by the new government formed after the General
Election. The government will soon launch an internet spy system, called Netra,
to detect malafide messages. Security agency will deploy the system to capture
dubious voice traffic on applications such as Skype and Google Talk, as well as
tweeters.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
FITCH INDIA |
|
Rating |
Long term loans: B- |
|
Rating Explanation |
High risk of default regarding payments. |
|
Date |
17.12.2013 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
LOCATIONS
|
Registered Office/ Head Office : |
Plot No.: 29, DLF Industrial Area, Phase – II, Faridabad – 121003,
Haryana |
|
Tel. No.: |
91-129-4009262 |
|
Fax No.: |
91-129-4133969 |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
Plot No. 57, Sector-27C, 13/1, Mathura Road, Faridabad - 121 003, Haryana, India |
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Corporate Office 2 / Textile Division 1 : |
VPO Kawnra, Old Faridabad to Kheri-Jasana Road, Near Lingayas Inst. of Mgmt. and Tech. Faridabad- 121101, Haryana, India |
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Textile Division 2 Kawnra Unit: |
Village Kawnra, Kheri-Jasana Road, Faridabad- 121101, Haryana, India |
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Tel. No.: |
91-129-2201132/34 |
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Fax No.: |
91-129-2201137 |
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E-Mail : |
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PEB Division / Manufacturing Plant : |
8th Km. Stone, Ramnagar Road, NH-121, Kashipur, Udam Singh Nagar, Uttrakhand – 244713, India |
|
Tel. No.: |
91-9547-223073 |
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E-Mail : |
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Manufacturing
Plant: |
Located at · Ahmedabad · Mumbai · Chandigarh · Chennai · Bangalore · Bihar · Gurgaon |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Sushil Gupta |
|
Designation : |
Chairman and Managing Director |
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|
Name : |
Dr. Sandeep Gupta |
|
Designation: |
Joint Managing Director |
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|
Name : |
Mr. Manish Gupta |
|
Designation : |
Whole-Time Director |
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|
Name : |
Mr. Neeraj Bajaj |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. Nitin Agarwal |
|
Designation : |
Non-Executive Director |
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|
Name : |
Mr. J. P. Malhotra |
|
Designation : |
Non-Executive Director |
KEY EXECUTIVES
|
Name : |
Mr. Gaurav Yadav |
|
Designation : |
Company Secretary |
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Audit Committee |
Mr. Neeraj Bajaj Chairman S Mr. J. P. Malhotra Member Dr. Sandeep Gupta Member |
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Shareholders’ /
Investors’ Grievance
Committee:: |
Mr. Neeraj Bajaj Chairman Mr. J. P. Malhotra Member Mr. Nitin Agarwal Member |
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Remuneration
Committee: |
Mr. Neeraj Bajaj Chairman Mr. J. P. Malhotra Member Mr. Nitin Agarwal Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
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|
4725555 |
21.18 |
|
|
8078774 |
36.20 |
|
|
12804329 |
57.38 |
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|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
12804329 |
57.38 |
|
(B) Public Shareholding |
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|
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|
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|
1306571 |
5.86 |
|
|
|
|
|
|
1189193 |
5.33 |
|
|
6559497 |
29.40 |
|
|
455410 |
2.04 |
|
|
358928 |
1.61 |
|
|
96482 |
0.43 |
|
|
9510671 |
42.62 |
|
Total Public shareholding (B) |
9510671 |
42.62 |
|
Total (A)+(B) |
22315000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
22315000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacture of Textiles and Pre Engineering Buildings. |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
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Bankers : |
· Indian Overseas Bank ·
Corporation Bank |
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Facilities : |
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Banking
Relations : |
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Auditors : |
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Name : |
Tayal and Company Chartered Accountants |
|
Address : |
BP-49, First Floor, Neelam Bata Road, Near Syndicate Bank, Faridabad, Haryana, India |
|
Tel. No.: |
91- 129-2412737 |
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Secretarial
Auditors: |
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|
Name : |
AGB and Associates Company Secretaries |
|
Address : |
970, Sector 21D, Faridabad-121001, Haryana, India |
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Tel. No.: |
91- 129-4080970 |
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Enterprise over which
Key Managerial Personnel (KMP) or their Relatives have significant influence: |
· Richa Building Systems Limited · Richa Holdings Limited · Richa Infrastructure Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
30000000 |
Equity Shares |
Rs.10/- each |
Rs. 300.000 Millions |
|
|
|
|
|
Issued Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
170993620 |
Equity Shares |
Rs.10/- each |
Rs.
170.994Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
16925554 |
Equity Shares |
Rs.10/- each |
Rs. 169.256
Millions |
|
173808 |
Forfeited Shares |
Rs.5/- each |
Rs. 0.869
Millions |
|
|
|
|
|
|
|
Total |
|
Rs. 170.125 Millions |
Note: The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount, in proportion of their shareholding.
|
Name of the
Shareholders |
As at 31st March, 2013 |
|
|
|
No. of Shares held |
% of Holding |
|
Sushil Gupta |
1055706 |
6.237 |
|
Sandeep Gupta |
1152968 |
6.812 |
|
Richa Holding Limited |
7621156 |
45.028 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
170.125 |
170.125 |
170.125 |
|
(b) Reserves & Surplus |
688.804 |
565.009 |
559.578 |
|
(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) |
858.929 |
735.134 |
729.703 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
917.986 |
923.586 |
930.436 |
|
(b) Deferred tax liabilities (Net) |
91.504 |
102.729 |
77.698 |
|
(c) Other long term liabilities |
11.445 |
28.593 |
2.696 |
|
(d) long-term provisions |
9.959 |
7.270 |
5.372 |
|
Total Non-current Liabilities (3) |
1030.894 |
1062.178 |
1016.202 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1039.988 |
927.690 |
801.228 |
|
(b) Trade payables |
464.363 |
164.373 |
163.740 |
|
(c) Other current
liabilities |
184.657 |
198.096 |
204.591 |
|
(d) Short-term provisions |
54.631 |
55.758 |
45.988 |
|
Total Current Liabilities (4) |
1743.639 |
1345.917 |
1215.547 |
|
|
|
|
|
|
TOTAL |
3633.462 |
3143.229 |
296.1452 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1564.053 |
1586.241 |
1468.379 |
|
(ii) Intangible Assets |
0.000 |
0.100 |
0.200 |
|
(iii) Capital
work-in-progress |
41.334 |
4.661 |
13.520 |
|
(iv)
Intangible assets under development |
0.000 |
0.00 |
0.000 |
|
(b) Non-current Investments |
7.200 |
7.200 |
7.200 |
|
(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 |
1612.587 |
1598.202 |
1489.299 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1186.385 |
956.615 |
992.158 |
|
(c) Trade receivables |
717.881 |
490.143 |
371.901 |
|
(d) Cash and cash
equivalents |
39.830 |
43.718 |
41.080 |
|
(e) Short-term loans and
advances |
76.779 |
54.551 |
67.015 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
2020.875 |
1545.027 |
1472.154 |
|
|
|
|
|
|
TOTAL |
3633.462 |
3143.229 |
2961.453 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
2696.017 |
3014.149 |
2285.812 |
|
|
|
Other Income |
18.226 |
7.562 |
3.233 |
|
|
|
TOTAL (A) |
2714.243 |
3021.711 |
2289.045 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
1812.766 |
2428.626 |
1803.530 |
|
|
|
Employee benefits expenses |
149.001 |
131.242 |
90.061 |
|
|
|
Other cost |
217.527 |
236.366 |
150.349 |
|
|
|
Extraordinary Items |
81.103 |
6.279 |
0.483 |
|
|
|
Increase/Decrease in stocks |
(3.038) |
(159.762) |
(98.719) |
|
|
|
TOTAL (B) |
2257.359 |
2642.751 |
1945.704 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
456.884 |
378.960 |
343.341 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
233.545 |
196.957 |
162.197 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
223.339 |
182.003 |
181.144 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
75.037 |
69.016 |
55.014 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
148.302 |
112.987 |
126.130 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
14.672 |
52.125 |
41.648 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
133.630 |
60.862 |
84.482 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
407.706 |
359.722 |
289.366 |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed Dividend |
8.463 |
8.463 |
8.463 |
|
|
|
Tax on Dividend |
1.372 |
1.372 |
1.438 |
|
|
|
Transfer to Reserves |
6.681 |
3.043 |
4.224 |
|
|
BALANCE CARRIED
TO THE B/S |
524.819 |
407.706 |
359.722 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
Exports of goods on FOB basis |
16.779 |
10.172 |
26.154 |
|
|
TOTAL EARNINGS |
16.779 |
10.172 |
26.154 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
4.726 |
6.151 |
8.622 |
|
|
|
Stores & Spares |
1.995 |
0.010 |
0.274 |
|
|
|
Capital Goods |
0.231 |
18.498 |
36.680 |
|
|
TOTAL IMPORTS |
6.952 |
24.659 |
45.576 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
8.76 |
7.05 |
7.45 |
|
|
|
Diluted |
7.89 |
3.60 |
4.99 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
4.92
|
2.01 |
3.69 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.50
|
3.75 |
5.52 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.14
|
3.61 |
4.29 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.17
|
0.15 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
2.28
|
2.52 |
2.34 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.16
|
1.15 |
1.21 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
OPERATIONS
The total income of the Company during the year was Rs. 2696.017 Millions against Rs. 3014.148 Millions in the previous financial year. This was on account of weak economic situation of the country and consolidation of their textile units, which is in line with company`s long term strategic vision for growth. The total expenditure during the year was Rs. 2487.877 Millions against Rs. 3062.206 Millions in the previous financial year. The decrease in total expenditure was mainly due to decrease in consumption of raw material, decrease in manufacturing expenses, interest and so on.
The profit before tax for the year was higher at Rs. 229.404 Millions from Rs. 119.266 Millions in the previous financial year and the same was the case of the profit after tax for the year at Rs. 133.630 Millions compared to Rs. 60.861 Millions in the previous financial year.
The basic and diluted earning per share (EPS) computed in accordance with the Accounting Standard- 20 issued by the Institute of Chartered Accountants of India was Rs. 8.79 per share respectively as against Rs. 7.05 per share (basic and diluted) for the previous year.
MANAGEMENT DISCUSSION
AND ANALYSIS
CORPORATE OVERVIEW
Richa Industries Limited was incorporated in 1993 under the dynamic leadership of Mr. Sushil Gupta who is Chairman Cum Managing Director of the Company with the vision to work as a catalyst in the growth of the industry, company to be identified with the main objects of manufacturing and processing of fabric, readymade garments and to export fabric or garments and now in the business of Pre-Engineered Building.
Richa Industries Limited has focused to be most updated on the technology front and has been continuously upgrading their facilities in all segments of the operations. The company's operations, production, sales and profitability's in all location can be viewed practically on an hourly basis.
With a small employee base of thirty persons to current employee strength of over 1000 was possible due to the excellent human relation and concern for employee's well-being and their training and development.
Richa Industries Limited in its himself is already a trusted name in Indian Textile Industry before and after an Initial public offering in 2006 it's ramped up its manufacturing and production facilities to almost two and half times and currently is one of the largest single manufacturing facilities in Northern India in the segment of dyeing, processing and finishing of knitted fabric. The Key of the company is experience in the field of knitted fabric from last 21 Years and has good reputation and it is known for its quality standards and competitive rates.
Now, Richa has diversified their Business from last Five Years from Textile to Pre-Engineered Steel Building (hereinafter referred as PEB in year 2008-09 and become one of the leading companies in utilizing the most Hi-Tech solutions). PRE ENGINEERED BUILDING sector was established with the sole vision of using latest technology to achieve best quality standards and provide value for money to its customers.
RIL firmly believes that the key to designing a successful facility is via the optimization of the building's function and efficiency. They have built their reputation by providing designs that meet these criteria. Richa Industries Limited draws strength from diversity of backgrounds, perspectives and ideas among approximately 1000 employees representing unique languages and dialects.
Guiding and defining the way they conduct ourselves and the business, their values form a solid core of who they are, and the beliefs and priorities they share, inspiring us to perform to their best ability.
Richa Industries limited achieving the highest performance in safety, quality ethics and applying innovative technology in unexpected and practical ways and earning the admiration of all their stakeholder customers, communities and employees – for what they achieve and how they achieve it as described by the mission, their immediate focus in reaching the vision is to and establish the most capable, principled and creative offshore engineering and construction company in the India and successfully deliver the India's most challenging projects.
Richa has employed the most efficient and competitive professional team to give a technological edge to pre-engineered steel buildings in India. This will give the most competitive edge for small medium enterprises requirement for pre-engineered building needs with perfection in personalized and professionalized service.
Economic Scenario Industrial growth has remained subdued since July 2011 due to weak global demand, weak supply linkages, high import costs, and sluggish investment activities. During 2012-13 (April to November), industrial growth slowed to 1.0 per cent. The Industrial sector was mainly affected by the contraction in the output of capital goods and the mining sector. Excluding capital goods, the growth rate of overall IIP during April to November 2012 was 3.0 per cent. As a result the GDP Growth slowed down to 5%in 2012-2013 compared to 6.2% growth witnessed in 2011-12.
The slowdown in consumption demand: India’s export performance continued to show the adverse impact of low growth and uncertainty in the advanced as well as major emerging markets and developing economies. Cumulative value of exports for the period April-December 2012 -13 was US $ 214099.77 million (Rs 1166438.69) as against US $ 226551.09 million (Rs 10666683.100 Millions) registering a negative growth of 5.50 per cent in Dollar terms and growth of 9.35 per cent in Rupee terms over the same has affected the growth of motor vehicles, food products and apparel industries.
TEXTILE
INDUSTRY OVERVIEW
The Textiles industry has witnessed an incipient turn around in financial year 2012-13 as cotton yarn prices have picked up and rupee depreciation has enhanced competitiveness.
Government implements the Scheme for Integrated Textiles Parks (SITP) which is aimed at establishing greenfield infrastructure for textiles industry and generate employment.
Government formulates the cotton distribution policy on a yearly basis to ensure adequate raw materials security to domestic industry.
Indian Textile Industry is one of the leading textile industries in the world. The Textile Industry is one of the most important sectors in the Indian Economy and the second largest generator of employment after agriculture. It contributes more than 4% to the GDP and 17% to the country's export earnings.
The Indian textile industry has a great legacy, which is perhaps unmatched in the history of India's industrial development.
India's textile industry evolved and developed at a very early stage and its manufacturing technology was amongst the best.
Prior to colonization, India's manually operated textile machines were among the best in the world, and served as a model for production of the first textile machines in newly industrialized Britain and Germany.
FUTURE OUTLOOK OF
THIS INDUSTRY
Corporate have started to accept this concept. Segment wise growth is approximately 25% in industrial segment and between 6-7% in residential segment which is at the lower side in PEB domain. This indicates that there is tremendous potential and capacity in Indian PEB industry.
The last five years have seen a lot of new manufacturing units being set up in the Pune region, and a visit to any industrial estate in the city's vicinity provides ample evidence of the growing popularity of pre-engineered buildings (PEBs).The steel structures, which are pre-fabricated on the basis of drawings and then merely assembled on site, lend themselves to a variety of applications like manufacturing units, warehouses, hangers, hypermarkets and commercial complexes, and even sugar and cement factories. While the initial cost of building may be marginally higher than conventional construction techniques, the speed of execution of the project, leading to quicker turnaround time, and the low cost of maintenance are some of the reasons that the concept is fast gaining ground.
SEGMENT
a) Primary Segment Reporting
by Business Segment
Company’s primary
business segments are
(i) Manufacture in Textiles - The textile business incorporates the product group namely: Dyeing and Processing of Knitted Fabrics and Processing / Knitting of Yarn and Manufacture of Knitted Fabric which mainly havesimilar risks and returns.
(ii) Manufacturer of Pre Engineering Buildings - The PEB business incorporate the product group namely : Pre-Fabricated Steel Building in CKD Condition, Tabular Steel Poles, Structure and Super Structure for mining, Drop Rods, Angles, Shapes and Section, which mainly have similar risks and returns.
b) Secondary Segment
Reporting (By Geographical Segments)
The following is the distribution of the Company’s consolidated sales by geographical segment, regardless of where the goods were produced
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
||||||||||||
|
Long-term
Borrowings |
|
|
||||||||||||
|
Richa Building Systems Limited |
160.250 |
116.950 |
||||||||||||
|
Richa Holdings Limited |
135.374 |
125.989 |
||||||||||||
|
Total |
295.624 |
242.939 |
||||||||||||
|
Note:
As per the resolution of Board of Directors of the company dated have decided that the above loans was taken on long terms basis and no interest is payable on the above loan. I. IOB C/C 4051 is Rs. 847.622 Millions (31st March 2012 Rs. 541.493 Millions) Secured by stock and book debts up to 90 days and repayable on demand. IV. Corporation Bank is Rs. 192.366 Millions (31st March 2012 Rs.187.624 Millions) Secured by first charge (exclusive) on entire current assets of the company’s PEB unit including Receivables both present and future and repayable on demand. |
||||||||||||||
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION
|
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10473185 |
28/11/2013 |
30,000,000.00 |
INDIAN OVERSEAS BANK |
1 C-47-48, N I
T, FARIDABAD, HARYANA - 121001, INDIA |
B94573649 |
|
2 |
10391703 |
12/11/2012 |
86,700,000.00 |
INDIAN OVERSEAS BANK |
1-C/47-48,
N.I.T., FARIDABAD, HARYANA - 121001, INDIA |
B64024698 |
|
3 |
10272424 |
26/02/2011 |
599,000,000.00 |
CORPORATION BANK |
1G/47, B.P.,
OPP. MAIN BUS STAND, NIT, FARIDABAD, |
B08073041 |
|
4 |
10228418 |
25/06/2010 |
223,000,000.00 |
INDIAN OVERSEAS BANK |
1-C/47-48, NIT,
FARIDABAD, HARYANA - 121001, INDIA |
A89346431 |
|
5 |
10123268 |
03/09/2008 |
68,000,000.00 |
INDIAN OVERSEAS BANK |
1-C/47-48,
N.I.T., FARIDABAD, HARYANA - 121001, INDIA |
A46637047 |
|
6 |
90062981 |
28/03/2013 * |
1,528,700,000.00 |
INDIAN OVERSEAS BANK |
1 C-47/48, NIIT,
FARIDABAD, HARYANA - 121001, INDIA |
B74191081 |
|
7 |
80027509 |
25/06/2010 * |
120,000,000.00 |
INDIAN OVERSEAS BANK |
1-C/47-48, NIT,
FARIDABAD, HARYANA - 121001, INDIA |
A89345862 |
* Date of charge modification
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2013 |
|
Custom duty which may arise if obligation for exports not fulfilled against import of raw material and machinery |
30.603 |
|
Bank Guarantees issued by Bank |
70.826 |
|
Outstanding Letter of Credit |
70.212 |
FIXED ASSETS
· Land
· Building
· Plant and Machinery
· Vehicles
· Office Equipment
· Furniture and Fixture
· Computer/CC TV
· Fax/EPABX/Telephone
PRESS RELEASES
RICHA INDUSTRIES ON RATING WATCH DUE TO PROLONGED DELAY IN RESOLVING
DISPUTE WITH ICICI
MAY 30, 2012
A prolonged delay in resolving dispute with ICICI Bank on forex derivatives transaction has resulted in Fitch placing rating of Richa industry on rating watch negative (RWN) which indicates that rating could be downgraded or remain at current level.
Fitch has assigned Fitch BBB- rating on the fund based, non-fund based and term loan of Richa Industries.
"The RWN is caused by continuous delays in resolving Richa's disputed forex derivative transaction with ICICI Bank. The company has reported the forex derivative as a contingent liability of Rs 176.000 Millions crore in its financial year 2010-11," said Fitch in a statements issued to media.
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.62.69 |
|
|
1 |
Rs.102.97 |
|
Euro |
1 |
Rs.84.58 |
INFORMATION DETAILS
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
30 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.