MIRA INFORM REPORT

 

 

Report Date :

21.03.2014

 

IDENTIFICATION DETAILS

 

Name :

K G DENIM LIMITED

 

 

Registered Office :

Then Thirumalai, Coimbatore - 641302, Tamilnadu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

25.06.1992

 

 

Com. Reg. No.:

18-003798

 

 

Capital Investment / Paid-up Capital :

Rs. 256.651 Millions

 

 

CIN No.:

[Company Identification No.]

L17115TZ1992PLC003798

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

CMBK03032B

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturing and Marketing of denim fabrics of different size, shades, weaves, blends and weights.

 

 

No. of Employees :

Not Divulged

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (34)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 2500000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow But Correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track record.

 

The rating reflects moderate financial risk profile marked by volatility in profitability due to fluctuation in raw material prices and cyclical nature of the denim industry.

 

However, trade relations are fair. Business is active. Payment terms are slow but correct.

 

The company can be considered for business dealing 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

 

State-run banks hired nearly 300000 personnel including more than 94000 officers in the last four years, according to the Indian Banks Association. A study by trade lobby Assocham in September 2013 indicated that banks would need 800000 people in the next six years. It estimated that state-run lenders alone would hire 50000 people in 2013/14.

 

The Competition Commission of India plans to issue final orders within a broad time-frame of one year in matters where it decides to carry out detailed investigations. The number of complaints received by the watchdog which keeps tabs on unfair trade practices in the marketplace.

 

The government has detected custom tax evasion totaling around Rs 37920 mn in 14 states until December. Maharashtra topped the list of Rs 14190 mn followed by Andhra Pradesh at Rs 8140 mn, Gujarat Rs 5240 mn, Karnataka Rs 1670 mn and Tamilnadu Rs 1610 mn.

 

Connaught Place in New Delhi slipped four notches to become the world’s eighth most expensive office locations. London’s West End is the world’s most expensive office market.

 

There are 4.072 mn number of high value spenders under the scanner of the income tax department. The income tax department has information that they have made cash deposits announcing to Rs 1 mn or more in their savings bank accounts in the current financial year. It plans to check potential evasion before the closing of the financial year on March 31.

 

Estimated pharmaceutical sales in the country for 2016 is $ 27 bn. It is 14.4 per cent higher than a year ago. The life sciences and health care industry is up against challenges such as quality management, says a recent Deloitte report.

 

The gross non-performing assets of listed banks rose 35.2 % to Rs 2.43 lakh crore during the first three months of the financial year. In absolute terms, the 40 listed banks added Rs 3386 crore to their gross NPAs in nine months with the State Bank of India leading with the State Bank of India leading with an accretion of Rs 16610 crore.

 

The inflow of smuggled gold doubled in 2013 following restrictions to curb the supply from official channels to contain the current account deficit. China surpassed India in the demand for gold for the first time in 2013 due to liberalization of gold trading norms by its local governments.

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long term bank facilities: “BB-”

Rating Explanation

Moderate risk of default and high credit risk.

Date

10.10.2013

 

Rating Agency Name

CARE

Rating

Short term bank facilities: “A4”

Rating Explanation

Minimal degree of safety and very high credit risk.

Date

10.10.2013

 

 

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 (Tel. No.: 91-4254-304401)

 

 

LOCATIONS

 

Registered Office :

Then Thirumalai, Coimbatore - 641302, Tamilnadu, India

Tel. No.:

91-4254-304401/ 235300/ 304300

Fax No.:

91-4254-304400

E-Mail :

cskgdl@kgdenim.com

contact@kgdenim.in 

Website :

http://www.kgdenim.com

Location :

Owned

 

 

Factory :

Jadayam Palayam, Via Sirumugai, Taluka Mettupalayam, Coimbatore – 641302, Tamilnadu, India

Tel. No.:

91-42545-2331/ 34

Fax No.:

91-42545-2335

E-Mail :

cskgdl@kgdenim.com

Website :

http://www.kgdenim.com

 

 

DIRECTORS

 

As on 31.03.2013

 

Name :

Mr. B Sriramulu

Designation :

Managing Directors

Qualification :

BE (Tex. Tech.), MS (Tex Tech)

Experience :

16 Years

Date of Appointment :

03.11.2003

 

 

Name :

Mr.  B Srihari

Designation :

Managing Directors

Qualification :

BE (Chem. Tech), MS (Chem. Tech)

Experience :

14 Years

Date of Appointment :

03.11.2003

 

 

Name :

Mr. KG Baalakrishnan

Designation :

Executive Chairman

 

 

Name :

Mr. G V S Desikan

Designation :

Directors

 

 

Name :

Mr. G. P. Muniappan

Designation :

Directors

 

 

Name :

Mr.  K N V Ramani

Designation :

Directors

 

 

Name :

Mr.  V Jagadisan

Designation :

Directors

 

 

Name :

Mrs.  T Anandhi

Designation :

Directors

 

 

Name :

Mr. M. J. Vijayaraaghavan

Designation :

Director

 

 

Name :

Mr. Surinder Chhibber

Designation :

Director

 

 

Name :

Mr.  A Velusamy

Designation :

Directors

 

 

Name :

Mr. S Muthuswamy

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. S. Muthuswamy

Designation :

Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 31.12.2013

 

Category of Shareholder

No. of Shares

% of No. of Shares

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

9868158

38.47

http://www.bseindia.com/include/images/clear.gifBodies Corporate

4787145

18.66

http://www.bseindia.com/include/images/clear.gifSub Total

14655303

57.13

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

14655303

57.13

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

5200

0.02

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

500

0.00

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

2300

0.01

http://www.bseindia.com/include/images/clear.gifSub Total

8000

0.03

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

600394

2.34

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

6092865

23.75

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

3356881

13.09

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

940462

3.67

http://www.bseindia.com/include/images/clear.gifClearing Members

24630

0.10

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

385172

1.50

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

530660

2.07

http://www.bseindia.com/include/images/clear.gifSub Total

10990602

42.84

Total Public shareholding (B)

10998602

42.87

Total (A)+(B)

25653905

100.00

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

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

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

25653905

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Marketing of denim fabrics of different size, shades, weaves, blends and weights.

 

 

GENERAL INFORMATION

 

No. of Employees :

Not Divulged

 

 

Bankers :

·         Indian Bank

·         Bank of India

·         Allahabad Bank

·         State Bank of India

·         State Bank of Hyderabad

·         Indian Overseas Bank

 

 

Facilities :

SECURED LOANS

 

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

LONG-TERM BORROWINGS

 

 

(a) Term Loans

 

 

Indian Rupee Loan

 

 

From Banks

419.324

442.027

(b) Long term maturities of finance lease obligations (Secured by Vehicles on Hire Purchase Loan)

2.321

1.646

There is no case of continuing default as on the Balance Sheet date in repayment of loans and interest

 

 

Short-Term Borrowings

 

 

Loans repayable on demand

 

 

Working Capital Loan from Banks

563.823

457.689

TOTAL

985.468

901.362

 

NOTES

 

LONG-TERM BORROWINGS

 

Bank borrowings of Term Loan and Working Capital Limits

 

Term loans from Indian Bank (IB), Bank of India (BOI) and Indian Overseas Bank (IOB) are secured by first pari passu charge on

 

(a)     All immovable properties situated in

(i)                   102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and

(ii)                 2155.62 sq. meters of land at Amdha Village, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and

 

(b)     All plant and machineries including machineries and other movable fixed assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) and New Capex Plan through Deed of Hypothecation.

 

Term loan from State Bank of Hyderabad and Term loan I from State Bank of India are secured by a first pari passu charge on

 

(a)     Immovable properties in 48.5872 acres of land at Jadayampalayam, Alangombu and Karamadai Village in Mettupalayam Taluk, Coimbatore District, Tamilnadu and

 

(b)     All plant and machineries and other movable assets (excluding vehicles charged to financiers) acquired for the Expansion cum Diversification Scheme (ECDS) through Deed of Hypothecation.

 

Term loan II from State Bank of India is secured by a first pari passu charge on all plant and machineries acquired for the Modernisation cum Expansion Scheme (MCES) through Deed of Hypothecation.

 

Indian Bank is holding the original title deeds on its own behalf and on behalf of other Banks. Term loans are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

 

Indian Bank has three Term loans outstanding - Term loan I for Rs.37.546 Millions, Term loan II for Rs.12.254 Millions and Term Loan III for Rs.14.555 Millions (Previous year Rs.75.122 Millions, Rs.22.427 Millions and Nil). Term loan I is repayable in 32 quarterly installments commencing from 05.04.2007. Last Installment is due on 05.01.2015. Rate of Interest 13.25 % p.a. as at year end. (Previous year 14.00 % p.a.). Term Loan II is repayable in 90 monthly installments commencing from 15.10.2007. Last Installment is due on 15.03.2015. Rate of Interest 13.75 % p.a. as at year end. (Previous year 14.75 % p.a.). Term Loan III is repayable in 60 monthly installments commencing from 01.09.2013. Last installment is due on 01.08.2018. Rate of Interest 14.00% p.a. as at year end.

 

Bank of India has three Term loans outstanding : Term loan I for Rs.31.790 Millions, Term loan II for Rs.9.239 Millions and Term Loan III for Rs.97.453 Millions (Previous year Rs.68.545 Millions, Rs.19.572 Millions and Nil). Term loan I is repayable in 32 quarterly installments

commencing from 07.04.2007. Last Installment is due on 07.01.2015. Rate of Interest 14.50% p.a. as at year end. (Previous year 14.75% p.a.). Term loan II is repayable in 87 monthly installments commencing from 15.10.2007. Last Installment is due on 15.12.2014. Rate of Interest 14.50% p.a. as at year end. (Previous year 14.75% p.a.). Term Loan III is repayable in 60 monthly installments commencing from 01.07.2014. Last installment is due on 01.06.2019. Rate of Interest 14.50% p.a. as at year end.

 

State Bank of India has two Term loans outstanding: Term loan I for Rs.26.943 Millions and Term loan II for Rs.94.933 Millions (Previous year Rs.53.979 Millions and Rs.52.463 Millions). Term loan I is repayable in 31 quarterly installments commencing from 08.09.2007. Last Installment is due on 08.03.2015. Rate of Interest 14.50% p.a. as at year end. (Previous year 14.50% p.a.).Term loan II is repayable in 60 monthly installments commencing from 01.04.2013. Last Installment is due on 01.03.2018. Rate of Interest 14.40% p.a. as at year end.(Previous year 14.50% p.a.).

 

State Bank of Hyderabad has One Term loan for Rs.24.905 Millions (Previous year Rs.53.959 Millions). Term loan is repayable in 29 quarterly installments commencing from 21.09.2007. Last Installment is due on 21.03.2015. Rate of Interest 14.25% p.a. as at year end. (Previous year 15.50% p.a.).

 

Indian Overseas Bank has two Term loans: Term loan I for Rs.29.536 Millions (Previous year is Rs.40.000 Millions) is repayable in 20 quarterly installments commencing from 19.06.2012. Last Installment is due on 19.03.2017. Rate of Interest 14.50% p.a. as at year end.(Previous year 14.75% p.a.) and Term loan II for Rs.40.169 Millions (Previous year Rs.55.960 Millions) is repayable in 60 monthly installments commencing from 28.04.2012. Last Installment is due on 28.03.2017. Rate of Interest 14.75% p.a. as at year end.(Previous year 14.75% p.a.).

 

SHORT-TERM BORROWINGS

 

Working capital facilities from Indian Bank Consortium (Indian Bank, Bank of India, Allahabad Bank and State Bank of India) are secured by a first pari passu charge on the whole of the current assets through Deed of Hypothecation and second pari passu charge on

(a)     All the immovable properties situated in

(i)                   102.1897 acres of land at Jadayampalayam, Alangombu and Karamadai Villages in Mettupalayam Taluk, Coimbatore District, Tamil Nadu and

(ii)                  2155.62 sq. meters of land at AmdhaVillage, Dharampur Taluk, Valsad District, Gujarat through equitable mortgage created with Indian Bank and

 

(b)     All plant and machineries (excluding vehicles charged to financiers) through Deed of Hypothecation. The entire working capital facilities are also guaranteed by Shri KG Baalakrishnan, Executive Chairman.

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Gopalaiyer and Subramanian

Chartered Accountants

Address :

Coimbatore, Tamilnadu, India

 

 

Subsidiaries :

·         Trigger Apparels Limited

·         KG Denim (USA) Inc.

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2013

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

31000000

Equity Shares

Rs.10/- each

Rs. 310.000 Millions

1000000

10% Cumulative Redeemable Preference Shares

Rs.100/- each

Rs. 100.000 Millions

 

TOTAL

 

Rs. 410.000 Millions

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25691305

Equity Shares

Rs.10/- each

Rs. 256.913 Millions

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25653905

Equity Shares

Rs.10/- each

Rs. 256.539 Millions

 

Add :Forfeited Shares

 

Rs. 0.112 Million

 

TOTAL

 

Rs. 256.651 Millions

 

NOTE

 

Reconciliation of the number of shares outstanding at the beginning and at the end of the reporting period

 

Particulars

31.03.2013

 

Shares outstanding at the beginning of the year 25653905 Number

256.539

Shares outstanding at the end of the year 25653905 Number

256.539

 

 

Shares in the company held by each shareholder holding more than 5 percent shares

 

Name of the Shareholder

31.03.2013

No.of Shares held

% of Holding

Kannapiran Mills Limited

3065183

11.95

KG Baalakrishnan

2578560

10.05

B Srihari

2231859

8.70

B Sriramulu

2208659

8.61

B Sathyabama

1886500

7.35

 

Terms and Conditions of Equity Shares:

 

The Company has only one class of Equity Shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share.

 

In the event of liquidation the Equity Shareholders are eligible to receive the remaining assets of the company afterdistribution of all preferential amounts in proportion of their shareholding.

 

There are no shares allotted as fully paid without payments being received in cash, bonus shares or shares bought back.

 

 

 

 

 

 

 

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

256.651

256.651

256.651

(b) Reserves & Surplus

376.204

243.286

215.185

(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)

632.855

499.937

471.836

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

421.645

443.673

418.051

(b) Deferred tax liabilities (Net)

130.200

129.865

106.316

(c) Other long term liabilities

25.496

61.190

40.000

(d) long-term provisions

22.622

18.861

16.095

Total Non-current Liabilities (3)

599.963

653.589

580.462

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

563.823

457.689

515.100

(b) Trade payables

1066.455

825.475

777.633

(c) Other current liabilities

241.164

175.969

162.231

(d) Short-term provisions

23.880

49.529

6.306

Total Current Liabilities (4)

1895.322

1508.662

1461.270

 

 

 

 

TOTAL

3128.140

2662.188

2513.568

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

1119.864

934.537

1002.551

(ii) Intangible Assets

0.000

0.000

0.000

(iii) Capital work-in-progress

47.941

66.381

10.343

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

55.327

57.331

53.163

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

36.117

39.625

25.420

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

1259.249

1097.874

1091.477

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

1103.753

1018.244

818.762

(c) Trade receivables

378.581

237.494

269.631

(d) Cash and cash equivalents

83.707

66.526

62.414

(e) Short-term loans and advances

186.322

151.258

186.083

(f) Other current assets

116.528

90.792

85.201

Total Current Assets

1868.891

1564.314

1422.091

 

 

 

 

TOTAL

3128.140

2662.188

2513.568

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2013

31.03.2012

31.03.2011

 

SALES

 

 

 

 

 

Income

5148.277

4000.744

3435.939

 

 

Other Income

36.315

31.689

40.422

 

 

TOTAL                                     (A)

5184.592

4032.433

3476.361

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Material Consumed

2970.877

2423.794

2109.945

 

 

Purchase of Stock In Trade

0.006

0.537

0.000

 

 

Other Manufacturing Expenses

1188.768

830.130

640.566

 

 

Employee benefits expenses

233.107

189.117

170.870

 

 

Other Expenses

245.733

216.424

196.887

 

 

Changes in inventories of Finished goods, work in progress and stock in trade

(65.371)

(101.119)

(30.565)

 

 

TOTAL                                     (B)

4573.120

3558.883

3087.703

 

 

 

 

 

Less

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

611.472

473.550

388.658

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

257.630

232.271

191.742

 

 

 

 

 

 

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

353.842

241.279

196.916

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

119.170

130.835

129.314

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX (E-F)                 (G)

234.672

110.444

67.602

 

 

 

 

 

Less

TAX                                                                  (H)

79.393

36.737

22.621

 

 

 

 

 

 

PROFIT / (LOSS) AFTER TAX (G-H)                  (I)

155.279

73.707

44.981

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export Earnings

1833.142

1476.942

1065.319

 

TOTAL EARNINGS

1833.142

1476.942

1065.319

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

143.326

112.421

48.827

 

 

Chemicals

105.490

66.082

50.982

 

 

Stores & Spares

70.051

29.789

27.844

 

 

Capital Goods

105.161

43.404

7.176

 

TOTAL IMPORTS

424.028

251.696

134.829

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

6.05

2.87

1.75

 

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2013

 

30.09.2013

31.12.2013

 

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

1393.400

1603.700

1488.000

Total Expenditure

1238.900

1451.700

1363.600

PBIDT (Excl OI)

154.500

152.000

124.400

Other Income

0.200

0.200

0.100

Operating Profit

154.700

152.200

124.500

Interest

68.400

66.200

62.900

Exceptional Items

0.000

0.000

0.000

PBDT

86.300

86.000

61.600

Depreciation

33.000

37.200

37.900

Profit Before Tax

53.300

48.800

23.700

Tax

17.000

15.700

7.500

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

36.300

33.100

16.200

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

36.300

33.100

16.200

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2013

31.03.2012

31.03.2011

PAT / Total Income

(%)
3.00

1.83

1.29

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
4.56

2.76

1.97

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
7.76

4.35

2.76

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
0.37

0.22

0.14

 

 
 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 
1.56

1.80

1.98

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
0.99

1.04

0.97

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Share Capital

256.651

256.651

256.651

Reserves & Surplus

215.185

243.286

376.204

Net worth

471.836

499.937

632.855

 

 

 

 

long-term borrowings

418.051

443.673

421.645

Short term borrowings

515.100

457.689

563.823

Total borrowings

933.151

901.362

985.468

Debt/Equity ratio

1.978

1.803

1.557

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

3435.939

4000.744

5148.277

 

 

16.438

28.683

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2011

31.03.2012

31.03.2013

 

(Rs. In Millions)

(Rs. In Millions)

(Rs. In Millions)

Sales

3435.939

4000.744

5148.277

Profit

44.981

73.707

155.279

 

1.31%

1.84%

3.02%

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

No

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

Yes

12]

Profitability for last three years

Yes

13]

Reasons for variation <> 20%

-----

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

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]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10465114

18/10/2013

23,000,000.00

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

HDFC HOUSE, 29, KAMARAJ ROAD, COIMBATORE - 641018, TAMILNADU, INDIA

B91534743

2

10461438

14/11/2013 *

148,000,000.00

BANK OF INDIA

COIMBATORE MID CORPORATE BRANCH, FIRST FLOOR, CHAMBER TOWERS, 8/732, AVINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA

B92516863

3

10462477

11/10/2013

147,000,000.00

THE SOUTH INDIAN BANK LIMITED

COIMBATORE GANDHIPURAM BRANCH, CKN BUILDING, 100 FEET ROAD, GANDHIPURAM, COIMBATORE - 641012, TAMILNADU, INDIA

B90441502

4

10459739

14/11/2013 *

148,000,000.00

INDIAN BANK

COIMBATORE MAIN BRANCH, 31, VARIETY HALL ROAD, COIMBATORE - 641001, TAMILNADU, INDIA

B90725813

5

10366139

09/05/2013 *

100,000,000.00

BANK OF INDIA

MID CORPORATE BRANCH, FIRST FLOOR, CHAMBER TOWERS, 8/732, AVINASHI ROAD, COIMBATORE, TAMIL NADU - 641018, INDIA

B78812088

6

10349045

19/04/2013 *

120,000,000.00

INDIAN OVERSEAS BANK

PARK SQUARE BRANCH, 1027- AVINASHI ROAD, NEAR VOC PARK, UPPILIPALAYAM,, COIMBATORE, TAMIL NADU - 641018, INDIA

B76975879

7

10320308

19/04/2013 *

100,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 1443, TRICHY ROAD, COIMBATORE - 641018, TAMIL NADU, INDIA

B76817923

8

10065578

09/05/2013 *

56,400,000.00

BANK OF INDIA

COIMBATORE MID CORPORATE BRANCH, FIRST FLOOR, CHAMBER TOWERS, 8/732, AVINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA

B78812278

9

10049364

19/04/2013 *

56,400,000.00

INDIAN BANK

COIMBATORE MAIN BRANCH, 31, VARIETY HALL ROAD, COIMBATORE - 641001, TAMIL NADU, INDIA

B76975614

10

80023257

22/06/2010 *

150,000,000.00

STATE BANK OF HYDERABAD

RAJAJINAGAR BRANCH, 200/Y, 12TH MAIN, 50TH CROSS, 3RD BLOCK, RAJAJINAGAR, BANGALORE - 560010, KARNATAKA, INDIA

A91880773

11

80023259

19/04/2013 *

150,000,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 1443, TRICHY ROAD, COIMBATORE - 641018, TAMILNADU, INDIA

B76817469

12

80023253

19/04/2013 *

197,800,000.00

INDIAN BANK

COIMBATORE MAIN BRANCH, 31, VARIETY HALL ROAD, COIMBATORE - 641001, TAMILNADU, INDIA

B76975432

13

90007210

06/01/2014 *

210,500,000.00

ALLAHABAD BANK

98, MECRICAR ROAD, R S PURAM, COIMBATORE - 641002, TAMILNADU, INDIA

B93518272

14

90006921

22/08/2013 *

324,900,000.00

STATE BANK OF INDIA

COMMERCIAL BRANCH, 1443, TRICHY ROAD, COIMBATORE - 641018,
TAMILNADU, INDIA

B85667590

15

90006688

22/08/2013 *

621,000,000.00

BANK OF INDIA

COIMBATORE MID CORPORATE BRANCH, FIRST FLOOR, CHAMBER TOWERS, 8/732, AVINASHI ROAD, COIMBATORE - 641018, TAMILNADU, INDIA

B87144903

16

90006683

23/09/2013 *

671,100,000.00

INDIAN BANK

COIMBATORE MAIN BRANCH, 31, VARIETY HALL ROAD, COIMBATORE - 641001, TAMILNADU, INDIA

B89323141

 

* Date of charge modification

 

 

PERFORMANCE OF THE COMPANY

 

During the year ended 31.03.2013, the Company achieved an overall production of 296 lakh meters of fabrics against the previous year’s production of 229 lakh meters. The revenue for the year was Rs.5148.300 Millions as against sales of Rs.4000.700 Millions during the previous year, representing an increase of 28.7 %. The company has three main product groups, Denim and Apparel Fabrics, Home Textiles and sale of Apparel. All the product groups have performed well during the year.

 

The increase in volume directly contributed to the increase in profitability.

 

In the Home Textiles category, company has registered significant growth rate in sales compared to the previous year. In the Ready Made Garments group also the company has registered significant growth in sales and profit.

The Board of Directors recommends a dividend of 7.50 % (i.e. Rs.0.75) per equity share of the company for the year 2012-13. The Dividend tax payable amounts to Rs.3.100 Millions.

 

 

INDUSTRY STRUCTURE AND DEVELOPMENT

 

The Indian denim industry is showing steady growth in domestic and international markets. Their focus remains on sales to leading domestic and international brands in India and also to large exporters of readymade garments. They are concentrating on the Far East Countries of Vietnam, LaosPDR and China besides direct sales to North America. Products are being developed to cater to both retailers and fashion brands thereby gaining advantage in both segments and increasing volumes. Sale of home textiles and apparels improved during the year.

 

 

FINANCE

 

The Directors acknowledge with gratitude, the valuable assistance and support extended by their Bankers for term loans and working capital ie., Indian Bank, Bank of India, Allahabad Bank, State Bank of India, State Bank of Hyderabad and Indian Overseas Bank.

 

 

SUBSIDIARIES

 

During the year, the gross turnover in Trigger Apparels Limited increased to Rs.380.000 Millions from Rs.310.000 Millions for the previous year. The subsidiary has been able to register a profit of Rs.3.195 Millions compared to profit of Rs.1.059 Millions in the previous year. No activity has taken place at KG Denim (USA) Inc. during the year.

 

 

CONTINGENT LIABILITY

 

PARTICULARS

31.03.2013

(Rs. In Millions)

31.03.2012

(Rs. In Millions)

Bills discounted with banks

404.788

331.597

Estimated amount of contracts remaining to be executed in capital account and not provided for

95.848

73.552

Disputed Excise Duties

63.105

64.182

Disputed Income Tax

15.400

15.400

Guarantees given to Bank for loan to subsidiary

65.100

65.100

Guarantees given on behalf of Associates for fulfillment of their Export obligation under EPCG Scheme

30.000

30.000

 

 

FIXED ASSETS

 

·         Land

Buildings

Machinery

Electric Machinery

Office Equipments

Furniture and Fittings

Motor Vehicles

 

 

UN AUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2013 (STANDALONE)

 

(Rs. in millions)

Sr.

No.

Particular

Un-Audited

Quarter  Ended

Quarter  Ended

9 Months Ended

31.12.2013

30.09.2013

31.12.2013

1.

Income from Operations

 

 

 

 

(a) Net Sales/Income from Operations (Net of Excise Duty )

1473.300

1581.700

4437.100

 

(b) Other Operating Income

14.700

22.000

48.000

 

Total Income from operations (Net)

1488.000

1603.700

4485.100

 

 

 

 

 

2.

Expenditure

 

 

 

 

(a) Cost of material consumed

942.700

1007.400

2823.500

 

(b) Purchases of Stock-in-trade

0.000

0.000

0.000

 

(c) Change in inventories of finished goods,Work-in-progress and stock-in-trade

(18.600)

(1.400)

 

(71.500)

 

(d) Power & Fuel

114.700

97.200

317.000

 

(e) Stores & Chemicals

199.800

212.900

596.100

 

(f) Employees benefit expense

70.600

66.700

199.800

 

(g) Depreciation and amortization expenses

37.900

37.200

108.100

 

(h) Other Expenses

54.400

68.900

189.300

 

Total Expenses

1401.500

1488.900

4162.300

 

 

 

 

 

3.

Profit from Operations before Other Income,Finance cost and Exceptional items (1-2)

86.500

114.800

 

322.800

4.

Other Income

0.100

0.200

0.500

5.

Profit from ordinary activities before Finance cost & Exceptional items (3+4)

86.600

115.000

 

323.300

6.

Finance Cost (Net)

62.900

66.200

197.500

7.

Profit from ordinary activities after Finance cost but before Exceptional items (5-6)

23.700

48.800

 

125.800

8.

Exceptional Items

0.000

0.000

0.000

9.

Profit from Ordinary Activities before Tax (7+8)

23.700

48.800

125.800

10.

Tax Expense

 

 

 

 

Current Tax

8.400

16.700

43.000

 

MAT Credit Entitlement

0.000

0.000

0.000

 

Deferred Tax

(0.900)

(1.000)

(2.800)

11.

Net Profit from Ordinary Activities after Tax (9-10)

16.200

33.100

85.600

12.

Extraordinary Item (net)

0.000

0.000

0.000

13.

Net Profit for the period (11-12)

16.200

33.100

85.600

14.

Paid-up Equity Share Capital (Face Value of Rs.10/- Each)

256.700

256.700

 

256.700

15.

Reserves Excluding Revaluation Reserve

--

--

--

16.

Earnings Per Share (EPS) - Basic & Diluted

(Before Extraordinary items) (Not Annualised)

0.63

1.29

 

3.33

 

Earnings Per Share (EPS) - Basic & Diluted

(After Extraordinary items) (Not Annualised)

0.63

1.29

 

3.33

 

 

Sr.

No.

Particular

Un-Audited

Quarter  Ended

Quarter  Ended

9 Months Ended

31.12.2013

30.09.2013

31.12.2013

 

 

 

 

 

17.

Public Shareholding

 

 

 

 

-Number of Shares

10998602

10998602

10998602

 

- Percentage of Shareholding

42.87%

42.87%

42.87%

 

 

 

 

 

18.

Promoters and Promoter Group Shareholding

 

 

 

 

a) Pledged/Encumbered

 

 

 

 

- Number of Shares

2000000

2000000

2000000

 

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

13.65%

13.65%

13.65%

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

7.80%

7.80%

7.80%

 

 

 

 

 

 

b) Non Encumbered

 

 

 

 

- Number of Shares

12655303

12655303

12655303

 

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

86.35%

86.35%

86.35%

 

- Percentage of Shares (as a % of the Total Share Capital of the Company)

49.33%

49.33%

49.33%

 

 

Investor Complaints (Nos.)

Quarter Ended 31.12.2013

Pending at the beginning of the quarter

Nil

Received during the quarter

6

Disposed of during the quarter

6

Remaining unresolved at the end of the quarter

Nil

 

 

NOTE

 

1.       The above Un-Audited results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 13 th February, 2014

 

2.       The Auditors of the Company have carried out a Limited Review of the aforesaid financial results for the quarter ended and Nine months ended 31 st December 2013 in term of Clause 41 of the Listing Agreement with Stock Exchange.

 

3.       The Company has only one business segment (i.e.) Textiles Business. Hence, segment wise reporting is not applicable.

 

4.       Figures of the previous year / quarter / nine months ended have been regrouped / re arranged wherever necessary.

 

 

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]         on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs. 63.13

UK Pound

1

Rs. 101.17

Euro

1

Rs. 84.59

 

 

INFORMATION DETAILS

 

Information Gathered by :

HTL

 

 

Report Prepared by :

MRI

 

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

4

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

3

--CREDIT LINES

1~10

4

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

34

 

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.