MIRA INFORM REPORT

 

 

Report Date :

27.01.2014

 

IDENTIFICATION DETAILS

 

Name :

FILATEX INDIA LIMITED (TR. CO. FROM DELHI)

 

 

Registered Office :

Survey No.274, Demni Road, Dadra – 396191, Dadra and Nagar Haveli [U.T.]

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

08.08.1990

 

 

Com. Reg. No.:

54-000091

 

 

Capital Investment / Paid-up Capital :

Rs. 240.000 Millions

 

 

CIN No.:

[Company Identification No.]

L17119DN1990PLC000091

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturing of Synthetic yarns viz Polyester Partially Oriented Yarns (POY), polyester Filament yarns, Textured yarns, Polyester chips, Nylon filament yarns, Polypropylene Multi and Mono Filament Yarns and Narrow fabrics.

 

 

No. of Employees :

1535 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (32)

 

RATING

STATUS

 

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

 

Maximum Credit Limit :

USD 5980000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow but correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

The rating reflects the deterioration in the financial profile marked by its declining profitability and weak debt protection metrics.

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

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

 

India’s current account deficit narrowed in the quarter ended September as government measures to curb imports, especially gold, kicked in.  The current account deficit, the excess of a country’s imports of goods and services over exports, narrowed to $ 5.2 billion from $ 21 billion in the year ago period, according to provisional Reserve Bank of India data. Finance Minister P. Chidambaram said the CAD for the year will be less than $ 60 billion or 3 per cent of GDP and the latest data suggests the government may achieve the target.

 

India was ranked 94th among the world’s most corrupt nations list. Denmark and New Zealand topped as the cleanest while Somalia emerged as the most corrupt.

 

India’s services sector activity witnessed a moderate improvement in November over the previous month, even while indicating the fifth successive monthly contraction, according the HSBC survey.

 

$53 million estimated losses suffered by India due to phishing attacks during the third quarter, according to a study by RSA. India ranks fourth in the list of nations hit by phishing attacks. The US remained at the top of the charts. Phishing is the process of acquiring information such as user names, passwords and credit card details by sending e-mails disguised as official mails.

 

Rs.4080 million worth of mobile-phone-based transactions by July 2013 compared to Rs.260 million in September, 2012, according to Deloitte report. The number of transactions has shot up from 94000 to 701000.

 

India aims to earn Rs.400000 million from the bandwidth auction set for January. The merger and acquisition guidelines, cleared by a group of ministers, will be out before the auction begins so that players can make informed decisions on the auctions.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term Bank facilities : BB

Rating Explanation

Moderate risk of default and high credit risk.

Date

November 08, 2013

 

 

Rating Agency Name

CARE

Rating

Short term Bank facilities : A4

Rating Explanation

Minimal degree of safety and very high credit risk. 

Date

November 08, 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.

 

 

INFORMATION DECLINED

 

MANAGEMENT NON-COOPERATIVE

 

(CONTACT NO.: 91-260-2668509)

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Survey No.274, Demni Road, Dadra – 396191, Dadra and Nagar Haveli [U.T.], India

Tel. No.:

91-260-2668343/ 2668510

Fax No.:

91-260-2668344

E-Mail :

secretarial@filatex.com

fildadra@filatex.com

marketing@filatex.com

export@filatex.com

Website:

http://www.filatex.com

 

 

Corporate Office :

43, Community Centre, New Friends Colony, New Delhi - 110025, India

Tel. No.:

91-11-26312503/ 26848633/ 26848644

Fax No.:

91-11-26849915

E-Mail :

fildelhi@filatex.com

 

 

Factory 2 :

Monofilament Yarns Works

A-2, Extension, Phase-II, District Gautam Budh Nagar, Noida – 201304, Uttar Pradesh, India

Tel. No.:

91-120-3043012/ 13/ 14

Fax No.:

91-120-3043016

 

 

Factory 3 :

Plot No. D-2/ 6, Jolva Village PCPIR, Dahej-2, Industrial Estate, GIDC, District Bharuch – 392130, Gujarat, India

 

 

Surat Office:

2nd Floor, Shreya Shruti Building, Above State Bank of Indore, Ring Road, Surat - 395003, Gujarat, India

E-Mail :

filsurat@filatex.com

 

 

DIRECTORS

 

AS ON 31.03.2013

 

Name :

Mr. Ram Avtar Bhageria

Designation :

Chairman

Date of Birth/Age :

79 Years

Qualification :

B.Com (Hons) from Shri Ram College of Commerce, Delhi University, Delhi

Experience :

Has vast experience in Polyester business and is associated with many NGOs and charitable Organisations

Date of Appointment :

27.02.2003

 

 

Name :

Mr. Madhu Sudhan Bhageria

Designation :

Vice Chairman and Managing Director

Address :

42, Community Centre, New Friends Colony, New Delhi-110065, India

Date of Birth/Age :

54 Years

Qualification :

Commerce graduate from Shri Ram College of Commerce, University of Delhi.

Experience :

25 years of rich experience in polyester industry.

Date of Appointment :

30.07.2003

 

 

Name :

Mr. Purrshottam Bhaggeria

Designation :

Joint Managing Director

Address :

42, Community Centre, New Friends Colony, New Delhi-110065, India

Date of Birth/Age :

52 Years

Qualification :

Commerce graduate from Shri Ram College of Commerce, University of Delhi and Masters in Business Administration (1985) from S.C. Johnson Graduate School of Management, Cornell University, USA.

Experience :

More than 20 years in these fields.

Date of Appointment :

30.07.2003

 

 

Name :

Mr. Madhav Bhageria

Designation :

Joint Managing Director

Address :

2nd Floor, Shreya Shruti Building, Above State Bank of Indorel, Ring Road, Surat-395 003, Gujarat, India

Date of Birth/Age :

50 Years

Qualification :

B.Com (Hons) from Hindu College, Delhi University, Delhi

Experience :

Promoter Director, Looking after day to day plants operations at Dahej & Dadra and marketing functions at Mumbai & Surat

Date of Appointment :

30.07.2003

 

 

Name :

Mr. B B Tandon

Designation :

Independent Director

 

 

Name :

Mr. S C Parija

Designation :

Independent Director

 

 

Name :

Mr. S P Setia

Designation :

Independent Director

Date of Birth/Age :

71 Years

Date of Appointment :

30.07.2003

Qualification :

B. Sc (Hons.)

 

 

KEY EXECUTIVES

 

Name :

Mr. Raman Kumar Jha

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2013

 

Category of Shareholder

Total No. of Shares

As a %

(A) Shareholding of Promoter and Promoter Group

 

 

(1) Indian

 

 

Individuals / Hindu Undivided Family

7300279

30.42

Bodies Corporate

5325216

22.19

Sub Total

12625495

52.61

(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

12625495

52.61

(B) Public Shareholding

 

 

(1) Institutions

 

 

Mutual Funds / UTI

19455

0.08

Financial Institutions / Banks

100

0.00

Foreign Institutional Investors

2302500

9.59

Sub Total

2322055

9.68

(2) Non-Institutions

 

 

Bodies Corporate

4298108

17.91

Individuals

 

 

Individual shareholders holding nominal share capital up to Rs. 0.100 Million

1878752

7.83

Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million

2383116

9.93

Any Others (Specify)

492474

2.05

Trusts

81055

0.34

Non Resident Indians

15601

0.07

Clearing Members

2010

0.01

Hindu Undivided Families

393808

1.64

Sub Total

9052450

37.72

Total Public shareholding (B)

11374505

47.39

Total (A)+(B)

24000000

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

(1) Promoter and Promoter Group

0

0.00

(2) Public

0

0.00

Sub Total

0

0.00

Total (A)+(B)+(C)

24000000

0.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing of Synthetic yarns viz Polyester Partially Oriented Yarns (POY), polyester Filament yarns, Textured yarns, Polyester chips, Nylon filament yarns, Polypropylene Multi and Mono Filament Yarns and Narrow fabrics.

 

 

Products/ Services :

ITC Code No.

 

Product Descriptions

5402

Synthetic Filament Yarn

5402

Polyester, Nylon and Polypropylene

Monofilament Yarn

5806

Narrow Fabrics

 

 

GENERAL INFORMATION

 

No. of Employees :

1535 (Approximately)

 

 

Bankers :

·         Oriental Bank of Commerce

Punjab National Bank

Union Bank of India

State Bank of India

 

 

Facilities :

 

SECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

From Banks (secured)

(i) Term Loans

 

 

- Rupee loans

380.973

564.327

- Foreign currency loans

181.299

196.900

(ii) Vehicle Loans

9.890

12.627

 

572.162

773.854

Less : Current maturity

426.091

308.006

 

146.071

465.848

(iii) Buyers credit for capital goods

1470.523

1368.977

From a non-banking financial institution

 

 

- Rupee loan

34.243

0.000

Less : Current maturity

12.789

0.000

 

21.454

0.000

SHORT TERM BORROWINGS

 

 

(i) From Banks (Secured)

Working Capital

 

 

- Rupee loans

0.000

273.484

- Foreign currency loans

0.000

60.000

Buyer’s credit for raw material

1757.575

97.236

 

 

 

Total

 

3395.623

2265.545

 

LONG-TERM BORROWINGS

 

I. Term loans

 

a) From banks under consortium arrangement Rs.380.973 Millions (previous Year Rs.564.327 Millions), are secured by first mortgage created by way of deposit of title deeds on pari passu basis in respect of immovable properties, both present and future, and first charge by way of hypothecation of company’s all movable assets (save and except inventories, book debts, vehicles acquired through specific loans). These loans are further secured by

second charge by way of hypothecation of stocks of raw material, finished goods, semi-finished goods, stores and spares, book debts and other receivables (both present and future), pledge of 5 lacs equity shares of the face value of Rs.10/- each of the company and mortgage of an immovable property owned by a promoter director and personal guarantees of the promoter directors. These loans bear floating interest rate ranging from Base Rate plus 3.00% - 4.25% p.a. and are repayable in quarterly installments upto March, 2019.

 

b) From State Bank of India Rs.181.299 Millions (Previous year Rs.196.900) is collaterally secured by mortgage created by way of deposit of title deeds in respect of the immoveable property situated at (i) Ground floor and Third floor of Plot No. 43, New Friends Colony, New Delhi 110025, belonging to promoters group, (ii) pledge of 35 lacs equity shares of the Company having face value of Rs.10/- each held in the name of the promoters group (iii) Third charge on company’s fixed assets and current assets and are further secured by personal guarantee of Promoter Directors and the property owners. The loan bears floating interest at base rate plus 4.00% p.a. and is repayable in 8 quarterly balooning instalments from July, 2012.

 

c) From a non-banking financial institution of Rs. 34.243 Millions (previous year Nil) and is secured by way of first and exclusive charge over some plant and machinery and personal guarantees of two promoter directors. The loan carries interest rate of 14% p.a. and repayable in 36 monthly installments from October, 2012.

 

II. Vehicle loans are secured by hypothecation of specific vehicles acquired out of proceeds of the Loans. The said loans carry interest rate which varies 7.79% to 13.31% repayable in 36 - 60 monthly instalments.

 

III. Buyers’ Credit for capital goods

 

a) Buyers’ credit amounting to Rs.1470.523 Millions (Previous Year Rs.1368.977 Millions) are against Letters of Undertaking (LOUs) / Letter of Comfort (LOCs) issued by consortium of banks. LOUs / LOCs facility is secured by first mortgage created by way of deposit of title deeds on pari passu basis in respect of immovable properties, both present and future, and first charge by way of hypothecation of company’s all movable assets (save and except inventories, book debts, vehicles acquired through specific loans). These loans are further secured by second charge by way of hypothecation of stocks of raw material, finished goods, semi-finished goods, stores and spares, book debts and other receivables (both present and future), pledge of 500000 equity shares of the face value of Rs.10/- each of the company, mortgage of an immovable property owned by a promoter director and personal guarantees of the promoter directors. The loan bears floating interest @ US Libor / Euribor plus 0.43% - 1.90% p.a.

 

b) LOCs / LOUs facilities are sanctioned to the company as a sub limit of term loan. Liability towards Buyers’ Credit under LOCs / LOUs will be liquidated out of the proceeds of term loans that are repayable over a period upto seven years.

 

IV. Unsecured Loans - From body corporates carry interest @ 9% p.a. and is payable after three years from the date of receipt.

 

 

SHORT TERM BORROWINGS

 

I. Working capital loans from consortium member banks are secured by first charge by way of hypothecation of stocks of raw materials, finished goods, semi-finished goods, stores and spares, book debts and other receivables (both present and future) and are further secured by way of second charge on block of fixed assets of the company except vehicles and plant and machinery acquired out of specific loans(s). These are further secured by pledge of 5 lacs equity shares of the face value of Rs.10/- each of the company held by promoter directors, mortgage of an immovable property owned by a promoter director and personal guarantees of promoter directors on pari passu basis.

 

II. The working capital loans from banks are repayable on demand and carry interest at Base Rate plus 3.25% p.a.

 

III. Buyers’ Credit for raw material are against LOUs / LOCs issued by consortium of banks. The LOUs / LOCs facility is sanctioned to the Company as a sub limit of Non Fund (LCs) based facility. The facility is secured by first charge by way of hypothecation of stocks of raw materials, finished goods, semi-finished goods, stores and spares, book debts and other receivables (both present and future) further secured by way of second charge in respect of entire block of fixed assets of the company except vehicles and some plant and machinery acquired out of specific loans(s). These are further secured by pledge of 5 lacs equity shares of the face value of Rs.10/- each of the company held by promoter directors, mortgage of an immovable property owned by a promoter directors and personal guarantees of promoter directors on pari passu basis. The loan bears floating interest @ US Libor / Euribor plus 0.43% - 1.90% p.a

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Amod Agrawal and Associates

Chartered Accountants

Address :

D-58, East of Kailash, New Delhi - 110025, India

 

 

Subsidiary Company:

Filatex Synthetics Private Limited (Upto 16.12.2012)

 

 

Enterprises owned or significantly influenced by key managerial personnel:

·         Nouvelle Securities Private Limited

SMC Yarns Private Limited

Azimuth Investments Limited

Hill Estate Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

40000000

Equity Shares

Rs. 10/- each

Rs. 400.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

24000000

Equity Shares

Rs. 10/- each

Rs. 240.000 Millions

 

 

 

 

 

 

a. Reconciliation of the shares outstanding at the beginning and at the end of the reporting period

 

Equity shares

31.03.2013

 

Nos.

Rs. in Millions

At the beginning of the year

24,000,000

240.000

Add : Shares issued during the year

--

--

Outstanding at the end of the period

24,000,000

240.000

 

b. Terms / rights attached to equity shares

 

The company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

c. Aggregate number of equity shares issued for consideration other than cash during the period of five years immediately preceding the reporting date

 

841397 equity shares of Rs. 10/- each issued to IDBI Limited as per terms of negotiated settlement with them at a premium of Rs. 13.77 per share on 18th September, 2007.

 

d. Conversion of convertible warrants and issue of fresh equity shares

 

Nil (during the previous year company had issued 4000000 equity shares of Rs.10/- each at a premium of Rs.30/- per share upon conversion of 4000000 convertible warrants of Rs.40/- each). Nil (during the previous year the company received an amount of Rs.142.930 Millions and had issued 2858603 equity shares of Rs.10/- each at a premium of Rs.40/- per share).

 

e. Details of shareholders holding more than 5% shares in the company

 

 

31.03.2013

(Rs. in Millions)

Madhu Sudhan Bhageria

1252500 (previous year 1252500) equity shares of Rs.10/- each fully paid

12.525

Azimuth Investments Limited

3125000 (previous year 3125000) equity shares of Rs.10/- each fully paid

31.250

Nouvelle Securities Private Limited

1989016 (previous year 1989016) equity shares of Rs.10/- each fully paid

19.890

Somerset Emerging Opportunities Fund

Nil (previous year 1602000) equity shares of Rs.10/- each fully paid

--

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

240.000

240.000

171.414

(b) Reserves & Surplus

1255.639

1218.135

874.673

(c) Money received against share warrants

0.000

0.000

132.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

0.000

Total Shareholders’ Funds (1) + (2)

1495.639

1458.135

1178.087

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1838.048

1864.825

283.948

(b) Deferred tax liabilities (Net)

160.130

147.489

129.573

(c) Other long term liabilities

1.869

1.766

1.537

(d) long-term provisions

26.293

19.102

15.394

Total Non-current Liabilities (3)

2026.340

2033.182

430.452

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1757.575

430.720

404.123

(b) Trade payables

1410.411

108.878

194.673

(c) Other current liabilities

744.996

529.937

236.605

(d) Short-term provisions

11.271

31.748

22.651

Total Current Liabilities (4)

3924.253

1101.283

858.052

 

 

 

 

TOTAL

7446.232

4592.600

2466.591

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

3986.448

1768.857

1052.278

(ii) Intangible Assets

2.574

1.374

2.772

(iii) Capital work-in-progress

38.487

1847.401

332.306

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

0.003

0.077

0.001

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

39.425

45.573

104.467

(e) Other Non-current assets

18.064

12.731

10.014

Total Non-Current Assets

4085.001

3676.013

1501.838

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

904.058

490.973

510.066

(c) Trade receivables

1375.417

266.742

270.044

(d) Cash and cash equivalents

703.887

56.469

77.730

(e) Short-term loans and advances

208.531

96.594

99.604

(f) Other current assets

169.338

5.809

7.309

Total Current Assets

3361.231

916.587

964.753

 

 

 

 

TOTAL

7446.232

4592.600

2466.591

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Revenue from operation (net)

12317.996

4734.035

4864.171

 

 

Other Income

31.639

10.277

11.743

 

 

TOTAL                                     (A)

12349.635

4744.312

4875.914

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of material consumed

10395.447

3881.726

4048.013

 

 

Purchases of traded goods

662.749

19.323

0.000

 

 

(Increase)/decrease in Inventories of finished goods and work in progress

(196.586)

(24.311)

(71.423)

 

 

Employee Benefits expense

264.360

144.091

115.203

 

 

Other Expenses

748.180

388.965

357.797

 

 

TOTAL                                     (B)

11874.150

4409.794

4449.590

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

475.485

334.518

426.324

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

225.681

44.971

54.112

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

249.804

289.547

372.212

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

211.109

95.161

92.008

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

38.695

194.386

280.204

 

 

 

 

 

Less

TAX                                                                  (H)

15.138

57.377

90.090

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

23.557

137.009

190.114

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Export of Goods

(excluding deemed exports)

164.241

116.020

79.240

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

3825.670

266.311

827.658

 

 

Capital Goods

8.549

1181.362

230.130

 

 

Consumable/Spares

11.248

6.593

10.719

 

TOTAL IMPORTS

3845.467

1454.266

1068.507

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

0.98

6.18

11.09

 

Diluted

0.98

6.18

8.99

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
0.19

2.89

3.90

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
0.31

4.11

5.76

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
0.52

7.08

13.13

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.03

0.13

0.24

 

 
 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 
2.40

1.57

0.58

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.86

0.83

1.12

 

 

LOCAL AGENCY FURTHER INFORMATION

 

 

Sr. No.

Check List by Info Agents

Available in Report

(Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

Yes

9]

Name of person contacted

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

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10387600

28/09/2012

40,000,000.00

SIEMENS FINANCIAL SERVICES PRIVATE LIMITED

130, PANDURANG BUDHKAR MARG, WORLI, MUMBAI - 400018, MAHARASHTRA, INDIA

B62385992

2

10307527

30/08/2011

1,812,000.00

KOTAK MAHINDRA BANK LIMITED

36-38A, NARIMAN BHAVAN, 227,D, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA

B21113154

3

10308943

27/08/2011

224,400,000.00

STATE BANK OF INDIA

MID CORPORATE BRANCH, TRADE HOUSE, RING ROAD, SURAT - 395002, GUJARAT, INDIA

B22010979

4

10269163

22/12/2010

25,000,000.00

ORIENTAL BANK OF COMMERCE

IFB, H-15, CONNAUGHT PLACE, NEW DELHI - 110001, INDIA

B05870894

5

10112089

29/05/2008

590,000.00

PUNJAB NATIONAL BANK

ECE HOUSE, NEW DELHI - 110001, INDIA

A41644980

6

90100921

04/08/2006 *

35,000,000.00

ORIENTAL BANK OF COMMERCE

INDUSTRIAL FINANCE BRANCH, H-15 CONNAUGHT CIRCUS, NEW DELHI, INDIA

-

7

90098727

23/03/2005 *

245,000,000.00

UNION BANK OF INDIA

INDUSTRIAL FINANCE BRANCH, DEFENCE COLONY, NEW DELHI - 110024, INDIA

-

8

80012456

12/09/2013 *

6,669,300,000.00

UNION BANK OF INDIA

M-11, IST FLOOR, MIDDLE CIRCLE, CONNAUGHT CIRCUS, NEW DELHI - 110001, INDIA

B85009470

 

* Date of charge modification

 

 

UNSECURED LOANS

 

UNSECURED LOANS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

From body corporates

200.000

30.000

 

 

 

Total

 

200.000

30.000

 

 

NATURE OF OPERATION

 

Filatex India Limited (hereinafter referred to as “the Company”) is a manufacturer of Polyester Chips, Polyester/ Nylon/Polypropylene Multi & Mono Filament Yarn and Narrow fabrics.

 

 

OPERATIONS

 

During the year, the Company achieved turnover of Rs. 13789.000 Millions as compared to Rs. 5193.400 Millions in the previous year resulting in an increase of 166%. The Net Profit after tax is Rs. 23.600 Millions as compared to Rs. 137.000 Millions in the previous year. Increase in turnover is due to commissioning of plant for polyester Poly condensation and POY at GIDC, Dahej. The decrease in Net Profit is due to sluggish demand on account of slowdown in economy, adverse fluctuation in foreign exchange rates, higher finance cost and depreciation.

 

During the financial year, fire broke at company's POY manufacturing unit at Dadra which affected functioning of some of the POY lines. The company is adequately insured and the insurers are in the process of assessing the quantum of loss. Some lines having partial damages were repaired and put to use again by March, 2013. Some lines which have major damages are expected to be replaced / restored by December, 2013. The loss caused by the fire is under determination by the insurers, however, the Management is of the opinion that the company would be able to recover the loss as it has obtained insurance covers on reinstatement basis as well as loss of profit policy. However, the loss on repair / replacement, if any, would be accounted for upon settlement of the claim.

 

 

EXPANSION

 

The Company's plant for Polyester Poly condensation having capacity of 216000 TPA and POY with capacity of 108000 TPA at GIDC Dahej has been commissioned and become fully operational during the year 2012-13. The Poly condensation unit brings the Company at par with other manufacturers of POY as the company has also started making POY under Direct Melt Spinning Technology being used worldwide, by using PTA and MEG as raw materials. This will enable the Company to reduce operational costs and increase its profitability in coming years.

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE AND DEVELOPMENT

 

The global economy improved slowly in financial year 2012-13 but it has not recovered to the extent it was anticipated in the beginning of the year. Several European economies experienced recession due to high unemployment, banking, emergency rescue efforts, fiscal tightening and sluggish growth. The financial crisis of Eurozone nations is weakening the strength of the economic bloc and adversely impacting global economic growth. However, the US economy showed early signs of recovery, mainly on account of manufacturing growth and prudent policy initiatives. The emerging economies were also impacted by global headwinds, with China registering economic slowdown, along with other BRIC nations. In 2012-13, China grew by only 7.8%, while India finished the race a close second at 5%.

 

Global textile fibre industry is expected to grow to 105 MMT by 2020. Of this, polyester will account for over 68% of global demand growth. India is poised to strengthen its global foothold with polyester production share rising to 10% of global volume from the current 8%. With supplies likely to remain above incremental demand, utilization rates are expected to remain under pressure in the medium term.

 

The global fibre production for 2012 was estimated at 82.0 million tonnes, registering an increase of 1.2% over 2011. Cotton fibres production is estimated to be 26 million tonnes and Man Made Fibre (MMF) is likely to account for 55 million tonnes. The polyester fibre in the MMF segment accounted for an estimated 41.3 million tonnes (75%). Polyester and cotton together accounted for 82% of the fibre volumes produced in 2012. The global fibre demand is expected to increase by 3% on medium term due to rising population and increasing prosperity in the emerging markets. China emerged as the biggest manufacturer of all MMF fibres with 35.5 million tonnes production volume, accounting for 64.5% of global MMF production. On the price front, cotton fibre's clear downward trend from mid-2012 is putting pressure on all other fibres.

 

Indian textile industry has made a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings. India's textile sector contributes 4% to the country's gross domestic product (GDP), 14% of industrial production and 17% to country's export. The industry employs around 35 million people, and is the second largest provider of employment after the agricultural sector.

 

The most significant change in the Indian textile industry has been the advent of Man Made Fibre. India has successfully placed its innovative range of MMF textiles in almost all the countries across the globe. Man-made fibre production recorded an increase of 2 per cent during the year 2012-13. The MMF industry comprises fibre, filaments and yarns required for manufacturing apparel and non-apparel products. Although the preference for cotton yarn is high, a sizable segment of the Indian population prefers apparels made of polyester yarn and other synthetic materials as they are cheaper. The price competitiveness of polyester yarn vis-ŕ-vis cotton yarn will support growth in demand for polyester yarn. As far as domestic scenario is concerned, signs are very encouraging.

 

As per CRISIL Research Report on Man Made Fibre, the Polyester Filament Yarn (PFY) forms around 57% of the total Indian manmade textile production and about 27% of total textile production.

 

 

INDUSTRY OUTLOOK

 

India is the one of the world's largest producers of textiles and garments. Cotton and polyester are the major raw materials for India's textile industry. Cotton and polyester together account for around 90% of India's textile mill consumption of all fibres. India's per capita fibre consumption is around 5 kg, almost half the global level. Polyester is likely to play a dominant role in capturing the major incremental demand share to bridge this gap. The domestic prices of polyester and cotton witnessed less volatility during the year as compared to the volatility in cotton prices last year. This improved the profitability and viability of downstream textile industry. However, continued power shortage in key downstream textile and packaging manufacturing centres, especially in Southern India, limited polyester demand growth. The downstream polyester demand remained depressed earlier in the year, amidst subdued global markets due to high polyester inventories, lower margins and steep decline in the feedstock prices.

 

India's all fibre textile mill consumption is likely to grow at a 5.2% CAGR between 2012 and 2020 to 12.3 MMT. The CAGR growth for the demands for PFY and PSF (Polyester Staple Fibre) are expected to be 8.6% and 5.4%, respectively. Polyester is likely to account for a major 60% of incremental domestic fibre demand between 2012 and 2020. As per Technopak projections, India's total textile and apparel market size (domestic and export), estimated at $ 89 billion in 2011, is projected to grow at a 9% CAGR to reach $ 221 billion by 2021. The domestic textile and apparel market size was $ 58 billion in 2011 and is projected to grow to $ 141 billion by 2021. The key growth segments are technical textiles which is likely to see a 10% CAGR, followed by 9% in apparels and 8% in home textiles.

 

The long term growth and development of this industry is fairly secured because of low base per capita consumption of textile fabric in India as compared to developed countries. In a growing economy with high population, it gets additional support. In the short term, volatility in crude oil prices may impact the growth of the industry. The profit margins of the industry eroded in last two years mainly due to addition of large capacity of Polyester POY and import of Nylon Filament Yarn (NFY). Substantial import duty concessions, under FTAs signed by the Government of India with ASEAN member countries has become the bane of the industry and emerged as a major threat for the Synthetic Fibre Industry.

 

The Indian textile industry is set for strong growth, buoyed by both rising domestic consumption as well as export demand. Abundant availability of raw materials such as cotton, wool, silk and jute and skilled workforce has made India a sourcing hub. The textiles sector has witnessed a spurt in investment during the last five years. The industry (including dyed and printed) attracted foreign direct investments (FDI) worth Rs 56744.500 crore (US$ 1.04 billion) during April 2000 to February 2013. In the years ahead relatively easier availability of raw materials, growing local and international demand and improved cost competitiveness of Indian manufacturers vis-ŕ-vis their global competitors should permit strong growth in the PFY industry.

 

 

COMPANY OUTLOOK

 

The Company's plant for Polyester Poly condensation having capacity of 216000 TPA and POY with capacity of 108000 TPA at GIDC Dahej has been commissioned and become fully operational during the year 2012-13. The Poly condensation unit brings the Company at par with other manufacturers of POY as company has also started making POY under Direct Melt Spinning Technology being used worldwide, by using PTA and MEG as raw materials. This will enable the Company to reduce operational costs and increase its profitability in coming years.

 

 

DISCUSSION ON FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE

 

During the year, the Company achieved turnover of Rs. 13789.000 Millions as compared to Rs. 5193.400 Millions in the previous year resulting in an increase of 166%. The Net Profit after tax is Rs. 23.600 Millions as compared to Rs. 137.000 Millions in the previous year. The finance cost is Rs. 225.700 Millions as compared to Rs. 45.000 Millions resulting in an increase of 402%. The depreciation is Rs. 211.100 Millions as compared to Rs. 95.200 Millions resulting in an increase of 122%. Increase in turnover is due to commissioning of plant for polyester Poly condensation and POY at GIDC, Dahej. The decrease in Net Profit is due to sluggish demand on account of slowdown in economy, adverse fluctuation in foreign exchange rates, higher finance cost and depreciation.

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

a) Letters of Credit

285.380

38.477

b) Unexpired Bank Guarantees

99.974

23.487

c) Excise / Customs (Mainly relating to reversal of cenvat credit of NCCD & valuation of texturised yarns).

146.987

142.661

d) Sales Tax demand

0.080

1.848

e) Income Tax demand on account of :

 

 

- Additions for the period AY 2001-02 to 2005-06

3.337

3.337

- Penalty for the period AY 2001-02 to 2005-06

3.337

3.337

- Additions for AY 2008-09

0.220

0.220

f) Claims against the company not acknowledged as debts

5.587

5.587

 

 

 

Total

 

544.902

218.954


FIXED ASSETS:

 

Tangible Assets

·         Land (free hold)

Land (Lease Hold)

Building Factory

Building Non Factory

Plant and Machinery

Furniture and Fittings

Vehicles

Office Equipments

Computer

 

Intangible assets

·         Softwares

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

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 records 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. 62.18

UK Pound

1

Rs. 103.38

Euro

1

Rs. 85.09

 

 

INFORMATION DETAILS

 

Information Gathered by :

NYA

 

 

Report Prepared by :

BVA

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--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

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTERS 

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

32

 

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

 

--

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.