MIRA
INFORM REPORT
|
Report Date : |
21.07.2014 |
IDENTIFICATION DETAILS
|
Name : |
THE INDIAN CARD CLOTHING COMPANY LIMITED |
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|
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
24.06.1955 |
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|
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|
Com. Reg. No.: |
11-009579 |
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|
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Capital Investment
/ Paid-up Capital : |
Rs.45.511
millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L29261PN1955PLC009579 |
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|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer and Exporter of Metallic Cards Clothing Products. |
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No. of Employees
: |
Information declined by the Management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 3622000 |
|
|
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|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having fine track record. Profit of the company has declined during financial year 2014. However, the rating reflects company’s healthy financial risk profile
marked by established track record of business operation, established
relationship with a diversified client base over the years, and adequate
liquidity position of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
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
NEWS
The economy grew 4.7 %in 2013/14, marking a
second straight year of sub-5 % growth – the worst slowdown in more than a quarter
of a century. The data was below an official estimate of 4.9 % annual growth
and compared with 4.5 % in the last fiscal year. However, the current account
deficit narrowed sharply to $ 32.4 billion at 1.7 % of gross domestic product,
in 2013/14 from a record high of $ 98.8 billion or 4.7 %, the year before. A
sharp fall in gold imports due to restrictions on overseas purchases and muted
import of capital goods helped shrink the current account deficit.
Online retailer Flipkart has acquired fashion
portal Myntra as it prepares to battle with the rapidly expanding India arm of
the global e-commerce giant Amazon. The company raised $ 210 million from
Russian Investment firm DST Global which has also invested in companies like
Facebook, Twitter and Alibaba Group.
General Motors will start exporting vehicles
from its Talegaon plant near Pune in the second half of 2014. GM was one of the
few global carmakers that was using its India plant only for the domestic
market.
Google has overtaken Apple as the world’s top
brand in terms of value, according to global market research agency Millward
Brown. Google’s brand value shot up 40 % in a year to $ 158.84 billion. The top
10 of the 100 slots were dominated by US companies.
Infosys lost another heavy weight when B G
Srinivas, a board member put in his papers. He is the third CEO-hopeful to quit
after Chairman N R Narayana Murthy’s return to the company – Ashok Vemuri and V
Balakrishnan being the other two. While Vemuri went on to lead IGate,
Balakrishnan joined politics.
Naresh Goyal – promoted Jet Airways posted
biggest quarterly loss – Rs.2153.37 crore – in the three months ended March 31,
mainly because it has been offering discounts to passengers to fill planes.
William S Pinckney – Chairman and CEO of
Amway India was arrested by the Andhra Pradesh Police in connection with a
complaint against the direct selling firm. This is the second time that he has
been taken into custody. A year, ago the Kerala Police had arrested Pinckney
and two company directors on charges of financial irregularities.
China has told its state-owned enterprises to
sever links with American consulting firms after the United States charged five
Chinese military officers with hacking US companies. China’s action which
targets consultancies like McKinsey & Co. and the Boston Consulting Group,
sterns from fears that the first are providing trade secrets to the US
governments.
India has emerged as a country with some of
the highest unregistered businesses in the world. Indonesia has the maximum
number of shadow businesses, says a study of 68 countries by Imperial College
Business School in London.
Pfizer has abandoned its attempt to buy
AstraZeneca for nearly $ 118 billion after the latter refused an offer of 55
pounds a share.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Term Loan: A |
|
Rating Explanation |
Adequate degree of safety and low credit risk. |
|
Date |
June, 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Fund Based Facility: A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
June, 2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Vivek Deshpande |
|
Designation : |
Accounts Executive |
|
Contact No.: |
91-20-39858221 |
|
Date : |
17.07.2014 |
LOCATIONS
|
Registered Office/ Factory : |
Mumbai-Pune Road, Penicilin Factory, Pimpri, Pune – 411 018,
Maharashtra, India |
|
Tel. No.: |
91-20-39858200/ 27425390/ 39858221 |
|
Fax No.: |
91-20-39858300 |
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E-Mail : |
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Website : |
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Location : |
Owned |
|
Locality : |
Commercial |
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|
Factory 2 : |
Village Manjholi,
Nalagarh Roper Road, Tehsil Nalagarh, District Solan – 174 101, Himachal
Pradesh, India |
|
Tel. No.: |
91-1795-393401/
429 |
|
Fax No.: |
91-1795-393440 |
|
E-Mail : |
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Workshop 1 : |
857, Avanashi Road, Peelamedu, Coimbatore – 641 004, Tamilnadu, India |
|
Tel. No.: |
91-422-2561458/ 2561459 |
|
Fax No.: |
91-422-2562384 |
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E-Mail : |
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|
Workshop 2 : |
Alagamma Garden, 19, Sengolnagar, Vilangudi, Madurai – 625
018, Tamilnadu, India |
|
Tel. No.: |
91-452-2668071 |
|
Fax No.: |
91-452-2668330 |
|
E-Mail : |
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Overseas Office : |
Kahramanmaras Merkez
Subesi, Yavuz Selim Mh. Kucuk Sanayi Subesi, 34, Cadde no:39 Kahramanmaras,
Turkey |
|
Tel. No.: |
0344
236 6104-05 |
|
Fax No.: |
0344
236 6103 |
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E-Mail : |
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Branch Office : |
Located at: ·
Ahmedabad ·
Mumbai ·
Coimbatore ·
New Delhi ·
Ludhiana ·
Gutnur ·
Madurai ·
Kolkata ·
Panipat |
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|
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International Agents : |
Located at: ·
Australia ·
Asia ·
Africa ·
America ·
Europe |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. K.K. Trivedi |
|
Designation : |
Chairman Emeritus |
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|
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|
Name : |
Mr. Prashant K. Trivedi |
|
Designation : |
Chairman |
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|
Name : |
Mr. M. K. Trivedi |
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Designation : |
Managing Director |
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|
Name : |
Mr. H.C. Asher |
|
Designation : |
Director |
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|
Name : |
Mr. J. M. Kothary |
|
Designation : |
Director |
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|
Name : |
Mr. C. M. Maniar |
|
Designation : |
Director |
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|
Name : |
Mr. Sudhir Merchant |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. A.D. Dhotre, |
|
Designation : |
Vice President (Finance) and Company Secretary |
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|
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|
Name : |
Mr.
Rajendra Sabnis |
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Designation : |
Vice
President (Human Resources) |
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Name : |
Mr.
Prasad Mahale |
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Designation : |
Vice
President (Sales and Marketing) |
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Name : |
Mr. A. B. Pawar |
|
Designation : |
General Manager (Production, Pimpri Works) |
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|
Name : |
Mr.
Sanjeev Kumar Arora |
|
Designation : |
Plant
Head (HP Works) |
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|
|
Name : |
Mr. Vivek Deshpande |
|
Designation : |
Accounts Executive |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholders |
No. of Shares |
% of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
100 |
0.00 |
|
|
100 |
0.00 |
|
|
|
|
|
|
2610066 |
57.35 |
|
|
2610066 |
57.35 |
|
Total shareholding of Promoter and Promoter Group (A) |
2610166 |
57.35 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
1800 |
0.04 |
|
|
457 |
0.01 |
|
|
15050 |
0.33 |
|
|
17307 |
0.38 |
|
|
|
|
|
|
316433 |
6.95 |
|
|
|
|
|
|
1409740 |
30.98 |
|
|
176311 |
3.87 |
|
|
21163 |
0.47 |
|
|
21163 |
0.47 |
|
|
1923647 |
42.27 |
|
Total Public shareholding (B) |
1940954 |
42.65 |
|
Total (A)+(B) |
4551120 |
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) |
4551120 |
0.00 |
(1) Indian
Bodies Corporate
Individual shareholders holding nominal share
capital up to Rs.0.100 million
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Metallic Cards Clothing Products. |
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Products : |
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Exports : |
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Products : |
·
Finished Goods |
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Countries : |
·
Bangladesh ·
Pakistan |
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Imports : |
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Products : |
·
Raw Materials |
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Countries : |
·
Europe |
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Terms : |
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Selling : |
L/C and Credit |
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Purchasing : |
L/C and Credit |
GENERAL INFORMATION
|
Customers : |
End Users |
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No. of Employees : |
Information declined by the Management. |
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Bankers : |
·
Corporation Bank, Corporate Banking Branch, 14, Mumbai Pune Road,
Wakdewadi, Pune – 411 003, Maharashtra, India ·
HDFC Bank Limited |
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Facilities : |
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Banking
Relations : |
-- |
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|
Auditors : |
|
|
Name : |
B.K. Khare and Company Chartered Accountants |
|
Address : |
706/708,
Sharda Chambers, New Marine Lines, Mumbai – 400 020, Maharashtra, India |
|
|
|
|
Solicitors
: |
|
|
Name : |
Crawford
Bayley and Company |
|
Address : |
State
Bank Building, N.G. Vaidya Marg, Mumbai – 400 023, Maharashtra, India |
|
|
|
|
Controlling Company: |
Multi
Act Industrial Enterprises Limited, Mauritius |
|
|
|
|
Wholly Owned Subsidiaries controlled by the
Company: |
ICC
International Agencies Limited |
|
|
|
|
Other Subsidiary controlled by the Company: |
·
Garnett Wire Limited, UK ·
Shivraj Sugar and Allied Products Private Limited |
|
|
|
|
Enterprise over which any
key management personnel and relative of such personnel is able to exercise significant
influence: |
·
Multi Act Trade and Investments Private Limited ·
Multi Act Equity Consultancy Private Limited ·
Multi Act Constructions Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4551120 |
Equity Shares |
Rs.10/- each
|
Rs.45.511
millions |
|
|
|
|
|
All equity shares have
equal rights and restrictions on distribution of dividends and the repayment of
capital.
2610066 Equity shares are
held by the holding company - Multi Act Industrial Enterprises Limited.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1) Shareholders' Funds |
|
|
|
|
(a) Share Capital |
45.511 |
45.511 |
45.511 |
|
(b) Reserves & Surplus |
859.911 |
851.854 |
824.157 |
|
(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) |
905.422 |
897.365 |
869.668 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
24.778 |
20.000 |
40.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long
term liabilities |
138.389 |
151.171 |
136.446 |
|
(d) Long-term
provisions |
6.332 |
5.702 |
7.338 |
|
Total Non-current
Liabilities (3) |
169.499 |
176.873 |
183.784 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
82.662 |
109.351 |
25.370 |
|
(b)
Trade payables |
47.341 |
59.063 |
24.361 |
|
(c)
Other current liabilities |
85.766 |
73.431 |
93.187 |
|
(d) Short-term
provisions |
20.055 |
27.590 |
26.896 |
|
Total Current
Liabilities (4) |
235.824 |
269.435 |
169.814 |
|
|
|
|
|
|
TOTAL |
1310.745 |
1343.673 |
1223.266 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
640.056 |
559.258 |
553.292 |
|
(ii)
Intangible Assets |
0.243 |
0.243 |
1.550 |
|
(iii)
Capital work-in-progress |
34.481 |
171.107 |
32.151 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
139.019 |
274.282 |
295.536 |
|
(c) Deferred tax assets (net) |
0.177 |
7.468 |
2.161 |
|
(d) Long-term Loan and Advances |
47.742 |
39.681 |
70.421 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
861.718 |
1052.039 |
955.111 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
149.289 |
6.218 |
13.016 |
|
(b)
Inventories |
133.163 |
165.961 |
131.491 |
|
(c) Trade
receivables |
126.548 |
96.063 |
96.382 |
|
(d) Cash
and cash equivalents |
24.136 |
8.358 |
5.963 |
|
(e)
Short-term loans and advances |
15.180 |
14.458 |
20.984 |
|
(f)
Other current assets |
0.711 |
0.576 |
0.319 |
|
Total
Current Assets |
449.027 |
291.634 |
268.155 |
|
|
|
|
|
|
TOTAL |
1310.745 |
1343.673 |
1223.266 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Net Income from Operations |
692.408 |
623.797 |
676.935 |
|
|
|
Other Income |
54.325 |
30.888 |
48.052 |
|
|
|
TOTAL (A) |
746.733 |
654.685 |
724.987 |
|
|
|
|
(Due to less exports) |
||
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost
of materials consumed |
217.378 |
187.547 |
205.664 |
|
|
|
Purchases
of Stock-in-Trade |
5.399 |
7.704 |
6.903 |
|
|
|
Changes in inventories of
finished goods work-in- progress and stock-in-Trade |
16.299 |
(14.583) |
(22.916) |
|
|
|
Employee benefits expense |
174.037 |
168.542 |
173.894 |
|
|
|
Other expenses |
210.947 |
163.853 |
158.318 |
|
|
|
Exceptional items |
2.566 |
4.892 |
(15.189) |
|
|
|
TOTAL (B) |
626.626 |
517.955 |
506.674 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
120.107 |
136.730 |
218.313 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
14.961 |
11.133 |
12.315 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
105.146 |
125.597 |
205.998 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
74.232 |
53.813 |
52.886 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
30.914 |
71.784 |
153.112 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
7.289 |
25.451 |
40.736 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
23.625 |
46.333 |
112.376 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports
realisation on F.O.B. basis |
141.225 |
115.270 |
148.431 |
|
|
|
Others
(freight charges on exports) |
0.105 |
0.287 |
2.539 |
|
|
TOTAL EARNINGS |
141.330 |
115.557 |
150.970 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
17.766 |
20.661 |
18.730 |
|
|
|
Stores & Spare Parts |
0.210 |
0.601 |
0.802 |
|
|
|
Capital Goods |
0.000 |
158.491 |
13.253 |
|
|
|
Trading Goods |
3.717 |
2.766 |
6.348 |
|
|
TOTAL IMPORTS |
21.693 |
182.519 |
39.133 |
|
|
|
|
|
|
|
|
|
|
Earnings / (Loss)
Per Share (Rs.) |
5.19 |
10.18 |
24.69 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
3.16 |
7.08 |
15.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4.46 |
11.51 |
22.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.72 |
8.06 |
17.14 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
0.08 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.12 |
0.14 |
0.08 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.90 |
1.08 |
1.58 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns.) |
(INR in Mlns.) |
(INR in Mlns.) |
|
Share Capital |
45.511 |
45.511 |
45.511 |
|
Reserves & Surplus |
824.157 |
851.854 |
859.911 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
869.668 |
897.365 |
905.422 |
|
|
|
|
|
|
Long-term borrowings |
40.000 |
20.000 |
24.778 |
|
Short term borrowings |
25.370 |
109.351 |
82.662 |
|
Total borrowings |
65.370 |
129.351 |
107.440 |
|
Debt/Equity ratio |
0.075 |
0.144 |
0.119 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Net Income from Operations |
676.935 |
623.797 |
692.408 |
|
|
|
(7.850) |
10.999 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(INR in Mlns) |
(INR in Mlns) |
(INR in Mlns) |
|
Net Income from Operations |
676.935 |
623.797 |
692.408 |
|
Profit |
112.376 |
46.333 |
23.625 |
|
|
16.60% |
7.43% |
3.41% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by
Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
No |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
Yes |
|
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 |
Yes |
|
20] |
Export / Import details (if applicable) |
Yes |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
PAN of Proprietor/Partner/Director, if available |
No |
|
32] |
Date
of Birth 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 |
10144120 |
13/06/2013 * |
228,100,000.00 |
CORPORATION BANK |
CORPORATE BANKING BRANCH,
14 MUMBAI PUNE ROAD, WAKDEWADI, PUNE, MAHARASHTRA - 411003, INDIA |
B79266300 |
|
2 |
90084065 |
07/04/1997 * |
40,000,000.00 |
CORPORATION BANK |
INDUSTRIAL FINANCE
BRANCH, MUMBAI PUNE ROAD, WAKDEWADI, PUNE, MAHARASHTRA - 411003, INDIA |
- |
|
3 |
90082345 |
02/07/1990 |
10,000,000.00 |
STANDARD CHARTERED BANK |
23-25; M.G. ROAD, BOMBAY,
MAHARASHTRA - 400023, INDIA |
- |
|
4 |
90083106 |
01/10/1992 * |
1,000,000.00 |
STANDARD CHARTERED BANK |
23-25; M.G. ROAD, BOMBAY,
MAHARASHTRA - 400001, INDIA |
- |
* Date of charge modification
|
Unsecured Loans |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
SHORT-TERM
BORROWINGS |
|
|
|
Buyer's
Credit (Repayable
within half-yearly interest rate 1.23%) |
51.566 |
60.102 |
|
Total
|
51.566 |
60.102 |
OPERATIONS-HIGHLIGHTS:
Positive effect of rupee
depreciation on higher exports and focused efforts in market penetration
contributed to higher sales in domestic market and exports by Rs.100.000 millions,
Profit was lower in the current year, due to number of factors; including some
one-off items, machine classified as capital work in progress at the Nalagarh
factory last year were installed and commissioned this fiscal year resulting in
a higher interest cost and depreciation charge and the previous year included
profit from sale of premises in the IT Park in Pimpri, Pune.
NEW
MANUFACTURING FACILITY AT NALAGARH, HIMACHAL PRADESH
Most of the metallic card
clothing is now being manufactured at the Nalagarh factory. Finishing
operations of tops are also under development at Nalagarh. Dispatch of metallic
card clothing from Nalagarh factory increased during the year from Rs.10.17
crore in the previous year to Rs.235.000 millions in the current year.
REALTY
Out of 95,642 sq. ft. owned
by the Company in ICC Devi Gaurav IT Park in Pimpri, Pune only 27,621 sq. ft.
remained unoccupied. During the year, the entire commercial building at Powai,
Mumbai was fully occupied.
SUBSIDIARY
COMPANIES
ICC International Agencies
Limited (ICCIAL) recorded an increase in income of 34.7% from Rs.30.556
millions in the previous year to Rs.41.164 millions in the current year.
Indenting commission increased during the year due to improved business
conditions of domestic garments, home furnishing and industrial fabric
manufacturers.
As a result, the subsidiary
company recorded profit after tax of Rs.3.818 millions in the current year
against previous year's loss after tax of Rs.13.942 millions. ICCIAL declared dividend
of 50% for the year (Nil in the previous year). Garnett Wire Limited, a U.K.
Company, in which the Company has 60% of the issued share capital, recorded
decrease in turnover of 3.3% from Ł11,28,063 to Ł10,90,480 resulting in loss
after tax of Ł25,795/- against a loss of Ł18,291/- in the previous year
primarily due to the continuing recession in the United Kingdom.
Shivraj
Sugar and Allied Products Private Limited, subsidiary of the Company, has not
started operations as yet.
MANAGEMENT
DISCUSSION AND ANALYSIS
Industry
Structure and Developments
The demand for card
clothing in the re-clothing market is entirely dependent on the current
installed capacity of carding machines and the growth in the industry is
dependent on the rate of new carding machines, which are installed by spinning
mills.
The installed base of
carding machines in India is 29,711 cards of which 1783 are slow speed cards,
24,363 are high production cards and 3565 are super production cards. This
generates an annual demand of 8319 sets of card clothing.
The bulk of the carding
machines in India fall within the high production and super production
categories, as it has become no longer economical to be able to operate slow
production cards.
The world installed base of
carding machines (excluding India) is 148,777 and the annual demand for card
clothing worldwide (excluding India) is 49,592.
The annual increase in the
rate of growth of demand for card clothing is approximately 2% per annum. The
bulk of this increase is expected to be in the super production category.
Card clothing is supplied
with new carding machines and later in the replacement market, once the carding
machine needs to be re-clothed.
The major European
manufacturers of carding machines are Rieter and Trutzschler and major Indian
manufacturers are Lakshmi Machine Works (LMW) and Trutzschler India. There are
a myriad manufacturers of carding machines in China, although the international
demand for those carding machines are limited by virtue of their inability to match
the technology of European and Indian manufacturers.
Rieter
carding machines are 60î wide. Rieter, which owns Graf, supplies all its
carding machines with Graf card clothing.
The 60î card is most favoured
by spinning mills, which process [fine cotton]. Trutzschler GmbH manufactures
new cards with 50.4î width. Trutzschler cards are equipped with Trutzschler
card clothing and are favoured by spinning mills processing coarse and medium
counts of cotton. Both European card makers have increased the size of the
cylinder diameter to increase productivity, differentiate their products from
other card makers, who still manufacture carding machines of 40î and restrict
other card clothing manufactures from supplying card clothing for those
machines in the reclothing market.
Between the two major
Indian carding machine manufacturers, LMW is more well established, has a
larger installed capacity and installed base and is perceived as a value for
money alternative. LMW also has the advantage of being able to provide a ěbale
to yarnî solution for new spinning mills. Both LMW and Trutzschler manufacture
40' width card. LMW carding machines are clothed with Lakshmi Card Clothing
(LCC), although of late, LMW has suggested potential customers could use
Bekaert Card Clothing (BCS) manufactured partly in China and partly in India
with the supply of the carding machine. Trutzschler India equips its carding
machines with card clothing manufactured by Trutzschler in India.
As far as the re-clothing
market is concerned, Graf and Trutzschler are generally favoured for the first
re-clothing by spinning mills, which have imported cards from Rieter or
Trutzschler Germany. However, with the weakening of the Rupee, many spinning mills
are looking for cost effective solutions even for the first re-clothing.
LCC, BCS and ICC share the
market for re-clothing of high production manufactured by LMW and Trutzschler
India and some imported super production cards. These three manufacturers have
been able to hold their share in this area by virtue of providing prompt
service, quicker delivery and acceptable quality at reasonable prices.
Operations
Sale of the Company's
card clothing in the domestic market for short staple increased by 29 percent
as the Company increased its share in the high production and super production
market through a concerted effort of targeting spinning mills which would be
amenable to use the Company's products.
Sale in export markets improved by 11.5 percent as the Company
assiduously pursued enquiries in the key target overseas markets. Export sales
also improved as a result of a favourable exchange rate against the US Dollar
and Euro.
Sales of card clothing
for long staple fibre improved by 7.5 percent benefitting from improved trading
conditions for carpet manufacturers, where the Company makes direct sales to
customers. The Company continued to adopt a cautious policy on sales of its
products in there generated fibre segment as it perceived recovery of outstanding
dues, would be a problem in a difficult trading environment .
The Company’s new plant
at Nalagarh continued to despatch, Accura carriers, metallic card clothing for
long staple fibre' and most varieties of metallic wires for short staple fibre
Total despatches from Nalagarh increased by 111 percent compared to the last
financial year as the process of knowledge transfer continues from the plant in
Pimpri to Nalagarh.
The Company has already
rented out one entire floor and part of another floor of the ICC Devi Gaurav
Technology Park (ICC DGTP) in which the Company owns 94,000 sq. ft. The
Company’s property on Saki Vihar Road, Mumbai was fully let on leave and
licence throughout the last financial year.
OUTLOOK
Indian spinning industry
is currently benefitting from stable cotton prices due to are as on able cotton
harvest from November 2013 onwards. With many Chinese spinning mills exiting
certain medium counts due to their lack of competitiveness, and a favourable
exchange rate, Indian cotton spinning mills will continue to enjoy a favourable
trading environment.
The prospect of a below
average monsoon may dampen the current buoyancy in the spinning industry if the
price of cotton increases without a corresponding increase in yarn prices. This
may affect the demand for card clothing as spinning mills conserve resources to
purchase cotton.
The Company intends to
continue to focus its attention in the financial year 2014-2015 on transferring
all metallic manufacturing to its plant at Nalagarh combined with improvements
in plant efficiency. In Pimpri, there will be a thrust on cost and inventory
reduction and improvements in productivity. The Company will continue to target
mills with the latest generation of carding machines. The training of the
engineers at its plant in Nalagarh to complete the knowledge transfer from
Pimpri to Nalagarh will also be re-doubled.
The balance area of 27,
621 sq. ft. in IT Park, Pimpri will be given on leave and licence in the
financial year 2014-2015.
FIXED ASSETS:
Tangible Assets
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture and Fittings
·
Office Equipments and Computers
·
Vehicles
·
Electrical Installation
Intangible Assets
·
Computer Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.60.33 |
|
|
1 |
Rs.103.18 |
|
Euro |
1 |
Rs.81.58 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
SMN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
60 |
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.