MIRA
INFORM REPORT
|
Report Date : |
16.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
SPORTKING INDIA LIMITED |
|
|
|
|
Registered
Office : |
5/69, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
15.02.1989 |
|
|
|
|
Com. Reg. No.: |
55-035050 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs. 118.804 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17122DL1989PLC035050 |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACS3037Q |
|
|
|
|
Legal Form : |
A Public Limited Liability company. The company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The company is in the business of manufacturer and selling
cotton yarn, acrylic yarn and blended synthetic yearn. |
|
|
|
|
No. of Employees
: |
Information Decline by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (35) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 4700000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow but correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. External borrowing of the company is huge which act as a threat to
liquidity position of the company. However, trade relation 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 – 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
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor
international report.
There is a $29.34 bn outward foreign direct investment by domestic companies
between April and January of 2013/14 which has seen some signs of recovery
according to a Care Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to
raise $ 500 million via a US initial public offering. Alibaba,
which owns a stake in Weibo is expected to raise
about $ 15 billion New York this year in the highest profile Internet IPO since
Facebook’s in 2012.
Bharti Airtel has raised
Rs.2,453.2 crore (350 million Swiss Francs) by
selling six-year bonds at a coupon rate of three per cent and maturing in 2020.
This is the largest ever bond offering by an Indian company in Swiss Francs. Bharat Petroleum Corporation raised 175 million Swiss
Francs by selling five year bonds at 2.98 % coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex at its almost
complete Paradip refinery in Odhisha
in three to four years. The company board is set to consider the setting up of
a 700000 tonne per annum polypropylene plant at an
estimated cost at Rs.3150 crore.
Global chief
information officers at gathering in Bangalore in April to meet Indian startups
at an event called Tech50 Watchout for Little Eye
Labs-Facebook type deals in the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Fund based limits: “BB+” |
|
Rating Explanation |
Inadequate credit quality and high credit
risk. |
|
Date |
June 2013 |
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based limits: “A4+” |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
June 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.: 91-161-2845456)
LOCATIONS
|
Registered Office : |
5/69, Guru Mansion, Padam Singh Road, New
Delhi – 110005, India |
|
Tel. No.: |
91-161-2845456 |
|
Fax No.: |
Not Available |
|
E-Mail : |
|
|
|
|
|
Administrative Office : |
178, Col. Gurdial Singh Road, Civil Lines, Ludhiana – 141001, Punjab, India |
|
|
|
|
Factory : |
Village Kanech, Near Sahnewal,
G.T. Road, Ludhiana – 141120, Punjab, India |
|
|
|
|
Branch Office: |
Located at: · Chandigarh · Delhi · Haryana · Himachal Pardesh · Jammu and Kashmir · Punjab · Rajasthan · Uttrakhand |
DIRECTORS
As on: 30.09.2013
|
Name : |
Mr. Raj Kumar Avasthi |
|
|
Designation : |
Managing director |
|
|
Address : |
172, Col. G.S. Road, Civil Lines, Ludhiana –
141001, Punjab, India |
|
|
Date of Birth/Age : |
18.06.1946 |
|
|
Qualification : |
Intermediate |
|
|
Date of Appointment : |
01.10.2009 |
|
|
PAN No.: |
AASPA1953E |
|
|
DIN No.: |
01041890 |
|
|
|
|
|
|
Name : |
Mr. Munish Avasthi |
|
|
Designation : |
Managing director |
|
|
Address : |
172, Col. G.S. Road, Civil Lines, Ludhiana –
141001, Punjab, India |
|
|
Date of Birth/Age : |
26.06.1973 |
|
|
Qualification : |
Graduate |
|
|
Date of Appointment : |
25.10.2007 |
|
|
PAN No.: |
AAEPA1819K |
|
|
DIN No.: |
00442425 |
|
|
|
|
|
|
Name : |
Mr. Sunil Kumar Puri |
|
|
Designation : |
Director |
|
|
Address : |
G-171, B.R.S. Nagar, Ludhiana
– 141008, Punjab, India |
|
|
Date of Birth/Age : |
21.03.1951 |
|
|
Qualification : |
Graduate |
|
|
Date of Appointment : |
26.12.2005 |
|
|
DIN No.: |
00425213 |
|
|
|
|
|
|
Name : |
Mr. Ajay Chaudhry |
|
|
Designation : |
Director |
|
|
Address : |
76, Green Park, Civil Line, Ludhiana –
141001, Punjab, India |
|
|
Date of Birth/Age : |
19.10.1953 |
|
|
Qualification : |
LL.B |
|
|
Date of Appointment : |
25.04.2006 |
|
|
DIN No.: |
00055733 |
|
|
|
|
|
|
Name : |
Mr. Harbhajan Kaur
Bal |
|
|
Designation : |
Director |
|
|
Address : |
H. No. 2322, Phase-XI, Mohali – 160055,
Punjab, India |
|
|
Date of Birth/Age : |
12.06.1939 |
|
|
Qualification : |
Phd |
|
|
Date of Appointment : |
25.04.2006 |
|
|
DIN No.: |
00008576 |
|
|
|
|
|
|
Name : |
Mr. Naresh Kumar Jain |
|
|
Designation : |
Whole-time director |
|
|
Address : |
200/A, Col Gurdial Singh Road, Civil Lines, Ludhiana – 141001, Punjab, India |
|
|
Date of Birth/Age : |
07.08.1954 |
|
|
Qualification : |
Graduate |
|
|
Date of Appointment : |
01.10.2009 |
|
|
PAN No.: |
ACGPJ0219C |
|
|
DIN No.: |
00254045 |
|
KEY EXECUTIVES
|
Name : |
Mr. Nikhil Kalra |
|
Designation : |
Secretary |
|
Address : |
410, Street No.9, Upkar Nagar,
Civil Lines, Ludhiana – 141001, Punjab, India |
|
Date of Birth/Age : |
04.11.1987 |
|
Date of Appointment : |
10.04.2013 |
|
PAN No.: |
BCLPK0138B |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on: 30.09.2013
SHAREHOLDERS DETAILS FILE ATTACHED
Equity Share Break up (Percentage of Total Equity)
As on: 30.09.2013
|
Category |
|
Percentage |
|
|
|
|
|
Government companies |
|
5.62 |
|
Bodies corporate |
|
50.65 |
|
Directors or relatives of directors |
|
13.84 |
|
Other top fifty shareholders |
|
6.98 |
|
Others |
|
22.91 |
|
|
|
|
|
Total
|
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
The company is in the business of manufacturer and selling
cotton yarn, acrylic yarn and blended synthetic yearn. |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS (As on: 31.03.2011)
|
Particulars |
Unit |
Licensed
Capacity |
|
Unit-I (SIL) |
|
|
|
Acrylic/Viscose/Polyester Yarn |
Spindles |
10000 |
|
Unit-II
(Synthetics) |
|
|
|
Acrylic/Viscose/Polyester |
Spindles |
100000 |
|
Unit-III
(Processor) |
|
|
|
Fibre/Yarn Dyeing (Unit-III) |
N.A. |
N.A. |
|
Unit-IV
(Industries) |
|
|
|
Cotton Yarn |
Spindles |
300000 |
|
Fibre/Yarn Dyeing |
MT |
25200 |
|
Particulars |
Unit |
Installed Capacity* |
|
Unit-I (SIL) |
|
|
|
Acrylic/Viscose/Polyester Yarn |
Spindles |
6720 |
|
Unit-II
(Synthetics) |
|
|
|
Acrylic/Viscose/Polyester |
Spindles |
65904 |
|
Unit-III
(Processor) |
|
|
|
Fibre/Yarn Dyeing (Unit-III) |
TPD |
8.50 |
|
Unit-IV
(Industries) |
|
|
|
Cotton Yarn |
Spindles |
28800 |
Note: * Installed capacity is certified by the management being a technical matter.
|
Particulars |
Unit |
Actual Production |
|
Yarn |
MT |
20391.36 |
|
Yarn (Capitalised) |
MT |
366.20 |
|
Waste |
MT |
4472.11 |
|
Waste (Capitalised) |
MT |
155.37 |
Note: Production of yarn includes 102.60 MT of grey yarn on Job work basis and yarn processed on own account but on job work basis.
GENERAL INFORMATION
|
No. of Employees : |
Information Decline by the management |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Bankers : |
· State Bank of India, IFB Branch, Golden Tower, Near Dholewal Chowk, G.T Road, Ludhiana - 141003, Punjab, India · Central Bank of India, Mid Corporate Branch, 369, R.K. Road, Industrial Area -A, Ludhiana - 141003, Punjab, India · Punjab National Bank, International Banking Branch, Industrial Area A, Ludhiana - 141003, Punjab, India |
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
(Rs. In Millions)
|
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Rawla and Company Chartered Accountants |
|
Address : |
504, Surya Kiran Building, 19 K.G. Marg, New Delhi, India |
|
PAN No.: |
AAAFR1524Q |
|
|
|
|
Associates: |
· Sobhagia Clothing Company · Sobhagia Sales Private Limited · Classic Wears Private Limited · Aradhana Fabrics Private limited · Marvel Dyers and Processors Private Limited · N.T.M. Shawls Private Limited ·
Namokar Capital
Services Private Limited |
CAPITAL STRUCTURE
As on: 30.09.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
5000000 |
Equity Shares |
Rs.10/- each |
Rs.50.000 Millions |
|
20000000 |
Redeemable Preference Shares |
Rs.10/- each |
Rs.200.000 Millions |
|
|
Total |
|
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
3364080 |
Equity Shares |
Rs.10/- each |
Rs.33.641
Millions |
|
8516200 |
5% Redeemable Non-cumulative Preference Shares |
Rs.10/- each |
Rs.85.163
Millions |
|
|
Total |
|
118.804 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
118.804 |
118.802 |
89.882 |
|
(b) Reserves & Surplus |
1,081.116 |
759.371 |
759.833 |
|
(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) |
1,199.920 |
878.173 |
849.715 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2,493.740 |
1,726.965 |
1,271.271 |
|
(b) Deferred tax liabilities
(Net) |
154.200 |
229.200 |
121.300 |
|
(c) Other long term
liabilities |
0.527 |
0.595 |
0.636 |
|
(d) long-term provisions |
27.586 |
15.559 |
7.666 |
|
Total
Non-current Liabilities (3) |
2,676.053 |
1,972.319 |
1,400.873 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1,841.883 |
1,878.719 |
1,461.178 |
|
(b) Trade payables |
726.250 |
1,022.307 |
770.441 |
|
(c) Other current liabilities |
1,310.548 |
1,466.486 |
780.662 |
|
(d) Short-term provisions |
59.216 |
3.242 |
77.948 |
|
Total
Current Liabilities (4) |
3,937.897 |
4,370.754 |
3,090.229 |
|
|
|
|
|
|
TOTAL |
7,813.870 |
7,221.246 |
5,340.817 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
4,278.846 |
3,687.572 |
2,023.755 |
|
(ii) Intangible Assets |
6.772 |
10.086 |
15.942 |
|
(iii) Capital work-in-progress |
24.414 |
302.911 |
611.551 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.000 |
0.000 |
0.000 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
115.727 |
148.955 |
184.377 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
4,425.759 |
4,149.524 |
2,835.625 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1,938.840 |
1,738.925 |
1,639.493 |
|
(c) Trade receivables |
781.017 |
882.967 |
457.350 |
|
(d) Cash and cash equivalents |
92.671 |
96.421 |
47.336 |
|
(e) Short-term loans and
advances |
280.417 |
89.145 |
61.804 |
|
(f) Other current assets |
295.166 |
264.264 |
299.209 |
|
Total
Current Assets |
3,388.111 |
3,071.722 |
2,505.192 |
|
|
|
|
|
|
TOTAL |
7,813.870 |
7,221.246 |
5,340.817 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
SALES |
|
|
|
|
|
Income |
8,597.903 |
7,617.142 |
4,104.686 |
|
|
Other Income |
18.618 |
15.813 |
84.792 |
|
|
TOTAL
(A) |
8,616.521 |
7,632.955 |
4,189.478 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
5,258.288 |
4,805.957 |
2,718.197 |
|
|
Purchases of Stock-in-Trade |
433.860 |
1,068.829 |
73.400 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(210.981) |
(176.874) |
(256.623) |
|
|
Employees benefits expense |
405.461 |
290.306 |
195.257 |
|
|
Other expenses |
1,361.322 |
1,018.984 |
731.212 |
|
|
TOTAL
(B) |
7,247.950 |
7,007.202 |
3,461.443 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
1,368.571 |
625.753 |
728.035 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
707.644 |
520.716 |
143.766 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
660.927 |
105.037 |
584.269 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
408.755 |
258.088 |
138.956 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
252.172 |
(153.051) |
445.313 |
|
|
|
|
|
|
|
Less |
TAX
(I) |
(69.570 |
107.691 |
153.447 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
321.742 |
(260.742) |
291.866 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
3,660.600 |
3,225.000 |
2,073.500 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
90.35 |
(73.22) |
81.96 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
3.73 |
(3.41) |
6.97 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
2.93 |
(2.01) |
10.85 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
3.24 |
(2.21) |
9.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21 |
(0.17) |
0.52 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth)
|
|
3.61 |
4.11 |
3.21 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.86 |
0.70 |
0.81 |
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 |
89.882 |
118.802 |
118.804 |
|
Reserves & Surplus |
759.833 |
759.371 |
1,081.116 |
|
Net
worth |
849.715 |
878.173 |
1,199.920 |
|
|
|
|
|
|
long-term borrowings |
1,271.271 |
1,726.965 |
2,493.740 |
|
Short term borrowings |
1,461.178 |
1,878.719 |
1,841.883 |
|
Total
borrowings |
2,732.449 |
3,605.684 |
4,335.623 |
|
Debt/Equity
ratio |
3.216 |
4.106 |
3.613 |
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 |
4,104.686 |
7,617.142 |
8,597.903 |
|
|
|
85.572 |
12.876 |
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 |
4,104.686 |
7,617.142 |
8,597.903 |
|
Profit |
291.866 |
(260.742) |
321.742 |
|
|
7.11% |
(3.42)% |
3.74% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report
(Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact person |
No |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
-- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm / promoter involved in |
-- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director, if available |
Yes |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
UNSECURED LOAN
(Rs. In Millions)
|
Particulars |
As on 31.03.2013 |
As on 31.03.2012 |
|
Long term
borrowings |
|
|
|
Loans and advances from directors |
10.000 |
10.000 |
|
|
|
|
|
Short term
borrowings |
|
|
|
Working capital loans from banks |
0.000 |
3.050 |
|
|
|
|
|
Total |
10.000 |
13.050 |
MANAGEMENT'S
DISCUSSION AND ANALYSIS
BUSINESS REVIEW:
ECONOMIC OUTLOOK
Global economic outlook has been improving and expected to grow above 3% in the year 2013 and 4% in the year 2014, though the growth is not uniform even among the developed countries. Private demand in USA has been growing giving strength to the recovery but similar indications are missing in EU. The driver of the developed countries' growth is mainly monetary easing which needs to be substituted with more fundamental forces to make it sustainable. The emerging economies especially in Asia are likely to grow by 7% for next couple of years, which is less than the growth rate achieved in the past. It is mainly due to some slowdown in export sector of the leading economies like China and partially due to the China's efforts to rebalance economy towards domestic consumption side. It is expected that such a move would strengthen the growth/exports of emerging economies in coming years.
The 12th Five Year Plan targets a growth rate of 9.8% for the manufacturing sector. The National Manufacturing Plan targets an increase in manufacturing sector growth to 12-14% over the medium term. The mean value of different GDP growth estimates of Indian economy shows that Indian economy may grow in the range of 5-6% in financial year 2013-14. The stubborn current account deficit, fiscal deficit and a lackluster performance of manufacturing sector especially catering to exports are some factors affecting the business climate and investor confidence in the country adversely. Since the Textile Sector contributes about 12 per cent of the manufacturing output, the growth of this sector is crucial to the realization of targets relating to total output and employment growth.
FINANCIAL ANALYSIS
PRODUCTION / SALES
REVIEW
During the year, the company achieved a production of 38364 MT of cotton/synthetic yarn as compared to 29479 MT in the previous year showing an increase of about 30%. The company achieved a gross turnover/operating income of Rs. 8616.500 millions as compared to Rs. 7633.000 millions in the previous year showing a growth of about 12.88%. The exports increased to Rs. 3738.100 millions against Rs. 3250.500 millions in the previous year showing a growth of about 11.90%. The Company is recognized as ˝Trading House' by Govt. of India.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10478468 |
18/01/2014 |
150,000,000.00 |
CENTRAL BANK OF INDIA |
MID CORPORATE BRANCH,, 369, R.K. ROAD, INDUSTRIALAREA -A, LUDHIANA, PUNJAB - 141003, INDIA |
B96761945 |
|
2 |
10472745 |
30/12/2013 |
450,000,000.00 |
PUNJAB NATIONAL BANK |
INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA - A, LUDHIANA, PUNJAB - 141003, INDIA |
B94384294 |
|
3 |
10361144 |
11/05/2012 |
500,000,000.00 |
PUNJAB NATIONAL BANK |
INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA A, LUDHIANA, PUNJAB - 141003, INDIA |
B41837121 |
|
4 |
10328062 |
25/11/2011 |
20,000,000.00 |
PUNJAB & SIND BANK |
IINDUSTRIAL FINANCE BRANCH, DHOLEWAL CHOWK, G. T.ROAD, LUDHIANA, PUNJAB - 141003, INDIA |
B29475639 |
|
5 |
10317799 |
19/10/2011 |
350,000,000.00 |
PUNJAB AND SIND BANK |
INDUSTRIAL FINANCE BRANCH, CHOWK DHOLEWAL, G. T.ROAD, LUDHIANA, PUNJAB - 141003, INDIA |
B25366873 |
|
6 |
10310641 |
16/08/2011 |
875,000,000.00 |
STATE BANK OF INDIA |
SCB MILLER GANJ, PAHWA HOSPITAL COMPLEX,, LUDHIANA, PUNJAB - 141003, INDIA |
B22731111 |
|
7 |
10303226 |
04/01/2012 * |
750,000,000.00 |
STATE BANK OF INDIA |
SCB MILLER GANJ, PAHWA HOSPITAL COMPLEX MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B33221250 |
|
8 |
10296905 |
04/01/2012 * |
750,000,000.00 |
ALLAHABAD BANK |
LINK ROAD, LUDHIANA, LUDHIANA, PUNJAB - 141003, INDIA |
B33204819 |
|
9 |
10289462 |
22/04/2011 |
100,000,000.00 |
PUNJAB NATIONAL BANK |
INTERNATIONAL BANKING BRANCH, INDUSTRIAL AREA, LUDHIANA, PUNJAB - 141008, INDIA |
B73791386 |
* Date of charge modification
FIXED ASSETS
· Land
· Building
· Plant and Machinery
· Vehicles
· Furniture and Fixture
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. 59.47 |
|
|
1 |
Rs. 99.70 |
|
Euro |
1 |
Rs. 81.55 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
DPH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
4 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
4 |
|
--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 |
|
35 |
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.