MIRA
INFORM REPORT
|
Report Date : |
07.02.2014 |
IDENTIFICATION DETAILS
|
Name : |
DONEAR INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
210, Key-Tuo Industrial Estate, |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
01.01.1987 |
|
|
|
|
Com. Reg. No.: |
11-042076 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.104.000 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L99999MH1987PLC042076 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM07028A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACD1688C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer of Fabrics. |
|
|
|
|
No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (27) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 2532000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. Profitability of the company appears to be low. External borrowing of
the company seems to be huge, which acts as threatening to the liquidity
position of the company. However, trade relations are fair. Business is active. Payment terms
are slow but correct. The company can be considered for business dealings with some
caution. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
|
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 |
ICRA |
|
Rating |
Long term loans BB- |
|
Rating Explanation |
Moderate risk of default and high credit
risk. |
|
Date |
February 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term non fund based limits A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
February 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 : |
210, Key-Tuo Industrial Estate, |
|
Tel No.: |
91-22-30813591 |
|
Fax No.: |
91-22-28370041 |
|
E-Mail : |
|
|
|
|
|
Factory 1 : |
Balaji
Industries Dokmandi, Village Amli, Silvassa, Dadra and Nagar Haveli |
|
|
|
|
Factory 2 : |
Laxmi Lab Government Industrial Estate, Masat, Silvassa, Dadra and Nagar Haveli |
|
|
|
|
Factory 3 : |
Balaji Textiles Dokmandi, Village Amli, Silvassa, Dadra and Nagar Haveli |
|
|
|
|
Factory 4 : |
Umbergaon Unit GIDC, Umbergaon, District Valsad, Gujarat, India |
|
|
|
|
Factory 5 : |
Balaji Fabrics Revenue Block No. 194 and 195, Kadodara Bardoli Road, Village Jolwa,
Taluka Palsana, District Surat, Gujarat, India |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Vishwanath L. Agarwal |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
13.07.1938 |
|
Date of Appointment : |
01.01.1990 |
|
|
|
|
Name : |
Mr. Rajendra V. Agarwal |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Ajay V. Agarwal |
|
Designation : |
Whole time Director |
|
|
|
|
Name : |
Mr. Ramesh D. Tainwala |
|
Designation : |
Director |
|
Date of Birth/Age : |
08.05.1959 |
|
Date of Appointment : |
20.04.1990 |
|
|
|
|
Name : |
Durga Prasad C. Agarwal |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Santhkumar B. Agarwal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sreedhar H. |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2013
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
30744198 |
59.12 |
|
|
8254000 |
15.87 |
|
|
38998198 |
75.00 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
38998198 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
146518 |
0.28 |
|
|
8060074 |
15.50 |
|
|
8206592 |
15.78 |
|
|
|
|
|
|
392736 |
0.76 |
|
|
|
|
|
|
2961850 |
5.70 |
|
|
1315277 |
2.53 |
|
|
125347 |
0.24 |
|
|
99258 |
0.19 |
|
|
26089 |
0.05 |
|
|
4795210 |
9.22 |
|
Total Public shareholding (B) |
13001802 |
25.00 |
|
Total (A)+(B) |
52000000 |
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) |
52000000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Fabrics. |
|
|
|
|
Brand Name : |
“DONEAR” |
GENERAL INFORMATION
|
No. of Employees : |
Not Available |
||||||||||||||||||||||||||||||||||||||||||
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||||||||||||||||||||||||||||||||||||||||||
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Bankers : |
Ř State Bank of Hyderabad, Corporate Finance Branch, C-11, Mittal
Tower, Nariman Point, Mumbai – 400 021, Maharashtra, India Ř Dena Bank, Industrial Finance Branch, Dena Bank Building 2,
1st Floor, 17, Horniman Circle, Fort , Mumbai-400 023, Maharashtra, India Ř
State Bank of India,
Commercial
Branch, N.G.N. Vaidya Marg, Bank Street 17,Horniman Circle, Fort , Mumbai-400
023, Maharashtra, India |
||||||||||||||||||||||||||||||||||||||||||
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|
||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
NOTE: LONG TERM
BORROWINGS Term Loan from
State Bank of Hyderabad, Dena Bank and State Bank of India : Secured by way
of first pari passu basis in favour of Banks over all the fixed assets of the
Company, both present and future including but not limited to Fixed Assets
pertaining to the Capital Expansion project of the Company at Unit Balaji
Fabrics, Revenue Block No.194 and 195 Kadodara, Bardoli Road, Village Jolwa ,
Taluka Palsana, District Surat, Gujarat except Land and Building at Plot No
A-49 & A-50 Marol , MIDC Andheri (East) Mumbai and are also personally
guaranteed by the directors Shri V. L. Agarwal and Shri R. V. Agarwal for the
balance outstanding at the year end. Term loans from
State Bank of Hyderabad, Dena Bank and State Bank of India are further
secured by second charge on the current assets of the company. SHORT TERM
BORROWINGS Credit
facilities from State Bank of Hyderabad and Dena Bank Secured by way
of first charge on pari passu basis on all the current assets of the Company,
and also secured by way of second and subsequent charge on pari passu basis
on the fixed assets of the company (Present and future) except Land and
Building at Plot No A-49 and A-50 Marol , MIDC Andheri (East) Mumbai . The
above loans and facilities are guaranteed by the Directors, Shri. V. L.
Agarwal and Shri R. V. Agarwal for the balance outstanding at the year end. |
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
M.L. Bhuwania and Company Chartered Accountant |
|
Address : |
F-11, 3rd floor, Manek Mahal, 90, Veer Nariman Road, Churchgate,
Mumbai - 400 020, Maharashtra, India |
|
|
|
|
Entities where individual having control /
significant influence or key management personnel or their relatives are able
to exercise significant influence : |
v Donear
Synthetics Limited v Lav Kush Traders
Private Limited v Sonia Synthetics
Private Limited v Sonia Synthetics
LLP v Donear Retail
Private Limited v R. Ajay Kumar
Investment Company Private Limited v Rajendra
Synthetics Private Limited v U.N.Reality
Private Limited v V.R.A. Reality
Private Limited v Neptune Fabs v Venus Textiles v Lotus Fabrics v Mercury
Industries v
Donear Fashion Link Private Limited |
CAPITAL STRUCTURE
As on 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
100000000 |
Equity Shares |
Rs.2/- each |
Rs.200.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
52000000 |
Equity Shares |
Rs.2/- each |
Rs.104.000 Millions |
|
|
|
|
|
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 |
104.000 |
104.000 |
104.000 |
|
(b) Reserves & Surplus |
529.195 |
535.328 |
528.779 |
|
(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) |
633.195 |
639.328 |
632.779 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
697.411 |
780.133 |
779.983 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term liabilities |
141.204 |
177.441 |
178.756 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
838.615 |
957.574 |
958.739 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2122.098 |
1786.538 |
1413.362 |
|
(b) Trade payables |
243.435 |
163.110 |
331.175 |
|
(c) Other current
liabilities |
241.472 |
248.179 |
280.141 |
|
(d) Short-term provisions |
19.773 |
17.752 |
33.149 |
|
Total Current Liabilities (4) |
2626.778 |
2215.579 |
2057.827 |
|
|
|
|
|
|
TOTAL |
4098.588 |
3812.481 |
3649.345 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1032.215 |
1129.768 |
1199.393 |
|
(ii) Intangible Assets |
5.623 |
8.989 |
7.269 |
|
(iii) Capital
work-in-progress |
227.214 |
172.924 |
206.661 |
|
(iv)
Intangible assets under development |
0.171 |
0.000 |
0.000 |
|
(b) Non-current Investments |
9.840 |
9.950 |
8.990 |
|
(c) Deferred tax assets (net) |
88.183 |
78.062 |
61.623 |
|
(d) Long-term Loan and Advances |
89.888 |
104.807 |
103.570 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
1453.134 |
1504.500 |
1587.506 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1486.278 |
1304.331 |
1090.989 |
|
(c) Trade receivables |
916.464 |
770.443 |
734.039 |
|
(d) Cash and cash
equivalents |
44.268 |
47.300 |
39.553 |
|
(e) Short-term loans and
advances |
66.272 |
59.091 |
71.093 |
|
(f) Other current assets |
132.172 |
126.816 |
126.165 |
|
Total Current Assets |
2645.454 |
2307.981 |
2061.839 |
|
|
|
|
|
|
TOTAL |
4098.588 |
3812.481 |
3649.345 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
4008.577 |
3771.326 |
3112.842 |
|
|
|
Other Income |
80.886 |
62.719 |
36.318 |
|
|
|
TOTAL |
4089.463 |
3834.045 |
3149.160 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
1777.575 |
1669.211 |
1277.374 |
|
|
|
Purchases of Stock-in-Trade |
240.857 |
307.864 |
390.795 |
|
|
|
Changes in inventories of finished goods, work-in-progress and
Stock-in-Trade |
(63.432) |
(223.313) |
(250.502) |
|
|
|
Employees benefits expense |
392.293 |
330.358 |
245.241 |
|
|
|
Other expenses |
1227.586 |
1285.931 |
1023.134 |
|
|
|
TOTAL |
3574.879 |
3370.051 |
2686.042 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
514.584 |
463.994 |
463.118 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
287.304 |
229.134 |
150.273 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
227.280 |
234.860 |
312.845 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
231.094 |
250.792 |
311.894 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
(3.814) |
(15.932) |
0.951 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
(9.849) |
(16.437) |
(34.545) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
6.035 |
0.505 |
35.496 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
182.167 |
175.618 |
173.890 |
|
|
|
|
|
|
|
|
|
Add |
Earlier year excess proposed dividend and
dividend distribution tax |
0.000 |
18.131 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
3.550 |
|
|
|
Dividend |
10.400 |
10.400 |
26.000 |
|
|
|
Tax on Dividend |
1.767 |
1.687 |
4.218 |
|
|
BALANCE CARRIED
TO THE B/S |
176.035 |
182.167 |
175.618 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. Value of Exports |
291.639 |
298.928 |
210.990 |
|
|
|
Freight |
5.130 |
4.446 |
2.975 |
|
|
|
Insurance |
0.143 |
0.128 |
0.081 |
|
|
TOTAL EARNINGS |
296.912 |
303.502 |
214.046 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
10.373 |
13.558 |
2.426 |
|
|
|
Components and Stores parts |
9.915 |
16.398 |
26.568 |
|
|
|
Capital Goods |
34.255 |
26.103 |
33.672 |
|
|
TOTAL IMPORTS |
54.543 |
56.059 |
62.666 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
0.12 |
0.01 |
0.68 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
0.15
|
0.01 |
1.13 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(0.09)
|
(0.42) |
0.03 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.10)
|
(0.45) |
0.03 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.01)
|
(0.02) |
0.00 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
4.45
|
4.01 |
3.47 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.00
|
1.04 |
1.00 |
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 |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
CASE DETAILS BENCH: BOMBAY |
|
Stamp No: ITXAL/1561/2013 Filing
Date: 24.09.2013 Reg No.: ITXA/2309/2013 Reg. Date: 10.12.2013 |
|
Petitioner: THE
COMMISSIONER OF INCOME TAX-8
Respondent: M/S. DONER INDUSTRIES
LIMITED Petn. Adv: ARVIND PINTO (0) District: MUMBAI |
|
Bench: SINGLE Status: Pre-Admission
Category:-
TAX APPEALS |
|
Act: Income Tax
Act, 1961
Under Section: 260A |
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
SHORT TERM
BORROWINGS |
|
|
|
From Others |
|
|
|
From Directors |
279.895 |
282.085 |
|
From Other Body Corporates |
53.204 |
48.573 |
|
|
|
|
|
Total |
333.099 |
330.658 |
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10301308 |
19/07/2011 |
350,000,000.00 |
STATE BANK OF HYDERABAD |
C-11, MITTAL TOWER, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA
|
B18475400 |
|
2 |
10040871 |
19/02/2007 |
300,000,000.00 |
STATE BANK OF INDORE |
COMMERICAL BRANCH , MITTAL COURT 'B' WING, NARIMAN POINT, MUMBAI,
Maharashtra - 400021, INDIA |
A11767241 |
|
3 |
90235772 |
25/10/2012 * |
3,632,000,000.00 |
STATE BANK OF HYDERABAD |
11-C, MITTAL TOWER, 210, NARIMAN POINT, MUMBAI, Maharashtra - 400021,
INDIA |
B64444052 |
* Date of charge modification
CORPORATE
INFORMATION
The company is a
public limited company domiciled in India and is listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE). The Company is manufacturer
of fabrics having its own brand name “Donear” and also trading in garments
under the brand name of “Dcot”. The Company has manufacturing facilities
located at Silvassa and Surat. It has one of the best process house as compared
with other textile industry located at surat.
MANAGEMENT
DISCUSSION AND ANALYSIS:
INDUSTRIAL
STRUCTURE AND DEVELOPMENTS:
The textile
industry is the largest industry of modern India. It accounts for over 20
percent of industrial production and is closely linked with the agricultural
and rural economy. It is the single largest employer in the industrial sector
employing about 38 million people. The net foreign exchange earnings in this
sector are one of the highest and account for about 25 percent of India’s total
forex earnings.
The structure of
the textile industry is extremely complex with the modern, sophisticated and
highly mechanized mill sector on the one hand and the hand spinning and hand
weaving (handloom) sector on the other. Between the two falls the small-scale power
loom sector. The latter two are together known as the decentralized sector.
Over the years, the government has granted a whole range of concessions to the
nonmill sector as a result of which the share of the decentralized sector has
increased considerably in the total production.
In the current
economic Scenario, the overall performance of the Company was in tandem as per
the performance of the overall textile industry.
OUTLOOK
Expectations are
high, prospects are bright, but capitalising on the new emerging opportunities
will be a challenge for Textile companies.
Some prerequisites
to be included in the globally competing textile industry are:
¨ Imbibing global
best practices
¨ Adopting rapidly
changing technologies and efficient processes
¨ Innovation
¨ Networking and
better supply chain management
¨ Ability to link up
to global value chains.
The Indian
textiles industry has established its supremacy in cotton based products,
especially in the readymade garments and home furnishings segment. These two
segments will be the key drivers of growth for Indian textiles. The readymade
garment segment will be the principal driver of growth even in the domestic
industry. The changing preferences of Indian consumers-- from buying cloth to
readymade garments – have prompted several companies to move up the value chain
into the Garments segment.
Discussion on
Financial performance with respect to operational performance.
The company
reported a turnover of Rs.4008.577 millions during the year 2012-13 against a
turnover of Rs. 3771.326 millions in the previous year. The operations at Surat
facility has stabilised and the cotton fabrics business has done well in the
year 2012-13.
CONTINGENT LIABILITIES AND COMMITMENTS:
|
PARTICULAR |
31.03.2013 (Rs.
In Millions) |
31.03.2012 (Rs.
In Millions) |
|
(a) Contingent Liability not provided for in respect of |
|
|
|
(i) Disputed
Income Tax Liability where Company is in appeal |
21.430 |
21.430 |
|
(ii) Bank Guarantees executed under EPCG Schemes
to Customs Authorities |
0.895 |
0.895 |
|
(iii) Bank Guarantees
executed in favour of Government Departments |
13.369 |
10.973 |
|
(iv) Bonds
executed under EPCG Schemes to Customs Authorities |
397.029 |
356.906 |
|
(v) Bonds
executed in favour of the excise department towards concessional custom duty
availed |
3.740 |
3.740 |
|
(vi) Claims
against the Company not acknowledged as debt |
0.495 |
0.160 |
|
(b) Commitments not provided for in respect of |
|
|
|
(i) Estimated
amount of contracts remaining to be executed on capital account (net of
advances |
91.277 |
36.962 |
|
|
|
|
|
Total |
528.235 |
431.066 |
FIXED ASSETS
¨ Freehold Land
¨ Factory Land and
Building
¨ Office Premises
¨ Residential
Building
¨ Plant and
Machinery
¨ Electrical
Installation 923
¨ Furniture and
Fixtures
¨ Computer
¨ Vehicle
¨ Air Conditioner
¨
Office Equipment
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.62.50 |
|
|
1 |
Rs.101.92 |
|
Euro |
1 |
Rs.84.50 |
INFORMATION DETAILS
|
Report Prepared
by : |
ANK |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
3 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--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 |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
27 |
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.