MIRA
INFORM REPORT
|
Report Date : |
21.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN TEXTILES
LIMITED (w.e.f.06.10.2006) VARDHMAN FABRICS
A UNIT OF VARDHMAN TEXTILES LIMITED |
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Formerly Known
As : |
MAHAVIR SPINNING
MILLS LIMITED |
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Registered
Office : |
Chandigarh Road, Ludhiana
– 141010, Punjab |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
08.10.1973 |
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Com. Reg. No.: |
16-003345 |
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Capital Investment
/ Paid-up Capital : |
Rs. 636.519
Millions |
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CIN No.: [Company Identification
No.] |
L17111PB1973PLC003345 |
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TAN No.: [Tax Deduction and
Collection Account No.] |
JLDM03450G /
JLDM03167D |
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PAN No.: [Permanent Account No.] |
AABCM4692E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing of Cotton Yarn, Synthetic Yarn and Woven Fabric. |
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No. of Employees
: |
25000 (Approximately) |
RATING and COMMENTS
|
MIRA’s Rating : |
A (66) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial and operational base are regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 91000000 |
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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 a good track record. The overall financial position of the company appears to be sound and
healthy. Trade relations are reported as fair. Business is active. Payments are
reported as regular and as per commitments. The company can be considered normal for 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 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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 |
CRISIL |
|
Rating |
Long term rating : AA |
|
Rating Explanation |
High degree of safety and carry lowest risk.
|
|
Date |
March 07, 2014 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating : A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
March 07, 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
31-03-2012.
INFORMATION PARTED BY
|
Name : |
Mr. Neeraj Gupta |
|
Designation : |
Accounts Manager |
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Contact No.: |
91-161-2662543 |
|
Date : |
19.05.2014 |
LOCATIONS
|
Registered / Corporate Office : |
Chandigarh Road, Ludhiana
– 141010, Punjab, India |
|
Tel. No.: |
91-161-2662543-47/
2670707/ 09/ 2228943-48 |
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Fax No.: |
91-161-2662542/
2664541/ 2670503/ 2601040/ 2601048/ 2602710/ 2222616 |
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E-Mail : |
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Website : |
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Head Office : |
C-58, Focal Point, Ludhiana - 141010, Punjab, India |
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Tel. No.: |
91-161-2670707/ 2670708/ 2670709 |
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Fax No.: |
91-161-2670503 |
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E-Mail : |
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Plants : |
· Anant Spinning Mills, New Industrial Area, Mandideep - 462046, Madhya Pradesh, India · Arihant Spinning Mills Industrial Area, Malerkotla-148023, Punjab, India · Arisht Spinning Mills , Village Baddi, Tehsil Nalagarh, District Solan -173205, Himachal Pradesh, India · Auro Dyeing, Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Auro Weaving Mills, Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Auro Textiles, Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Mahavir Spinning Mills (Gassed Mercerised Yarn Unit) Phagwara Road, Hoshiarpur-146001, Punjab, India · Mahavir Spinning Mills (Textile Division) Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Vardhman Spinning Mills, Village Baddi, Tehsil Nalagarh, District Solan - 173205, Himachal Pradesh, India · Vardhman Spinning and General Mills (Unit-I and II), Chandigarh Road, Ludhiana-141010, Punjab, India · Vardhman Fabrics Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns Budhni, District Sehore, Madhya Pradesh, India · Vardhman Fabrics (Power Division) Budhni, District Sehore, Madhya Pradesh, India · Vardhman Yarns (Power Division) Budhni, District Sehore, Madhya Pradesh, India |
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Branch Offices : |
·
P-22, 3rd Floor, Flat
No.6, C.I.T. Road, Scheme IV, Kolkata - 700014,
West Bengal, India ·
Chandigarh Road, Ludhiana - 141010, Punjab, India ·
314, Solaris II, Opposite
L and T Gate No.6, Saki Vihar
Road, Andheri (East), Mumbai - 400072, Maharashtra, India ·
504, Dalamal House, Nariman Point,
Mumbai - 400021, Maharashtra, India ·
309-310, Surya Kiran Building, 19, Kasturba Gandhi Marg, New Delhi
- 110001, India ·
377-B, Muthuswami Industrial Complex, Palladam
Road, Tirupur - 638604, Tamilnadu,
India ·
1st Floor, Palm Court, Opposite
Management Development Institute, MG Road, Sector - 16, Gurgaon
- 122001, Haryana, India |
DIRECTORS
AS ON 31.03.2013
|
Name : |
Mr. Shri Paul Oswal |
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Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
71 Years |
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Qualification : |
M. Com. |
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Experience : |
46 Years |
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Name : |
Mr. S. Padmanabhan [Nominee of IDBI] |
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Designation : |
Director |
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Name : |
Mr. Arun Kumar Purwar |
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Designation : |
Director |
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Date of Birth/Age : |
14.05.1946 |
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Expertise in
specific functional area : |
Eminent Banker having experience of more than 39 years in
Banking. |
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Qualification : |
M.Com, PGDCA |
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Date of Appointment
: |
01.06.2007 |
|
Other Directorship : |
· Reliance Communications Limited Jindal Steel and
Power Limited Apollo Tyres Limited India Infoline Limited Jindal Power
Limited CandC
Constructions Limited ILandFS Renewable
Energy Limited (IREL) Sri Kavery Medical Care (Trichy) Limited PHL Capital Private Limited PHL Finance Private Limited Vardhman Chemtech Limited India Venture Advisors Private Limited Energy Infratech Private Limited ONGC-Tripura Power Company
Private Limited Mizuho Securities India Private Limited |
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Name : |
Mr. Prafull Anubhai |
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Designation : |
Director |
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Date of Birth/Age : |
20.01.1938 |
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Qualification : |
B.Com, B.S.C. (Eco.) – |
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Date of Appointment : |
26.07.1980 |
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Name : |
Mr. Subash Khanchand Bijlani |
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Designation : |
Director |
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Date of Birth/Age : |
06.09.1942 |
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Qualification : |
B. Tech, PGDC in Mgt and Finance |
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Date of Appointment : |
30.03.2005 |
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Name : |
Mr. Ashok Kumar Kundra |
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Designation : |
Director |
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Name : |
Mr. Darshan Lal Sharma |
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Designation : |
President and Executive Director |
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Date of Birth/Age : |
10.11.1948 |
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Expertise in
specific functional area : |
Business Executive having experience of more than 38 years
in Textile and Sewing Thread Business. |
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Qualification : |
B.Sc. (Engg.), M.B.A. |
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Date of Appointment
: |
08.05.1985 |
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Other Directorship : |
· Vardhman Acrylics Limited VTL Investments Limited VMT Spinning Company Limited Vardhman Yarns and
Threads Limited Vardhman Nisshinbo
Garments Company Limited |
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Name : |
Mr. Shravan Talwar |
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Designation : |
Director |
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Date of Birth/Age : |
17.04.1970 |
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Qualification : |
B.A. (Computational and Applied Maths and Economics), M.B.A. |
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Date of Appointment : |
29.01.2010 |
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Name : |
Mrs. Suchita Jain |
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Designation : |
Executive Director |
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Date of Birth/Age : |
20.03.1968 |
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Qualification : |
M.Com |
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Date of Appointment : |
29.01.2010 |
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Name : |
Mr. Sachit Jain |
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Designation : |
Executive Director |
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Date of Birth/Age : |
08.07.1966 |
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Qualification : |
B. Tech., MBA |
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Date of Appointment : |
30.03.2005 |
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|
Name : |
Mr. Neeraj Jain |
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Designation : |
Executive Director |
KEY EXECUTIVES
|
Name : |
Ms. Karan Kamal Walia |
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Designation : |
Company Secretary |
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Name : |
Mr. Rajeev Thapar |
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Designation : |
CGM (Finance, Accounts and Taxation) |
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Name : |
Mr. Neeraj Gupta |
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Designation : |
Accounts Manager |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of
Shareholder |
Total No. of Shares |
As a % |
|
(A) Shareholding
of Promoter and Promoter Group |
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|
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|
1461658 |
2.30 |
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|
37908355 |
59.56 |
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|
39370013 |
61.85 |
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Total shareholding
of Promoter and Promoter Group (A) |
39370013 |
61.85 |
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
|
9424359 |
14.81 |
|
|
77599 |
0.12 |
|
|
421553 |
0.66 |
|
|
4959134 |
7.79 |
|
|
14882645 |
23.38 |
|
|
|
|
|
|
1148040 |
1.80 |
|
|
|
|
|
|
4816078 |
7.57 |
|
|
1682728 |
2.64 |
|
|
1752375 |
2.75 |
|
|
1617941 |
2.54 |
|
|
134434 |
0.21 |
|
|
9399221 |
14.77 |
|
Total Public
shareholding (B) |
24281866 |
38.15 |
|
Total (A)+(B) |
63651879 |
100.00 |
|
(C) Shares held
by Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
63651879 |
100.00 |
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(1) Indian%20-%20267792%2021-May-2014_files/image003.gif){kind=small}
Individuals / Hindu Undivided Family%20-%20267792%2021-May-2014_files/image004.gif){kind=small}
Individual shareholders holding nominal
share capital up to %20-%20267792%2021-May-2014_files/image006.gif)
BUSINESS DETAILS
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Line of Business : |
Manufacturing of Cotton Yarn, Synthetic Yarn and Woven Fabric. |
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Products/ Services : |
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Imports : |
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Products : |
Raw Material and Machinery |
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Countries : |
v Japan v European
Countries |
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Terms : |
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Selling : |
Cash and Credit |
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Purchasing : |
Cash and Credit |
GENERAL INFORMATION
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Suppliers : |
LMW Corporation |
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Customers : |
Wholesalers and Retailers v Arvind Limited, Ahmedabad |
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No. of Employees : |
25000 (Approximately) |
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Bankers : |
v State Bank of Patiala v Allahabad Bank v ICICI Bank Limited v Punjab National Bank v State Bank of India v Bank of India v Corporation Bank v IDBI Bank Limited v Canara Bank v Standard Chartered Bank v State Bank of Hyderabad v State Bank of Mysore v Axis Bank Limited v Exim Bank v Oriental
Bank of Commerce |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
S.C. Vasudeva and Company Chartered Accountants |
|
Address : |
New Delhi, India |
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Subsidiaries : |
· VMT Spinning Company Limited Vardhman Acrylics
Limited VTL Investments Limited Vardhman Yarns and
Threads Limited Vardhman Special
Steels Limited (upto 7th April, 2011) Vardhman Nisshinbo
Garments Company Limited (Formerly known as Vardhman
Texgarments Limited) |
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Associates : |
· Vardhman Textile Components Limited Vardhman Spinning and
General Mills Limited Vardhman Special
Steels Limited (w.e.f 8th April, 2011) |
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Enterprises
over which key Management Personnel and relative of such personnel is able to
exercise significant influence or control : |
· Vardhman Holdings Limited Vardhman Apparels
Limited Smt. Banarso Devi Oswal Public Charitable Trust Sri Aurobindo Socio Economic and
Management Research Institute *Adinath Investment and Trading
Company *Devakar Investment and Trading
Company Limited *Srestha Holdings Limited *Santon Finance and Investment
Company Limited *Flamingo Finance and Investment Company Limited *Ramaniya Finance and Investment
Company Limited *Marshall Investment and Trading Company (Private) Limited *Pardeep Mercantile Company
(Private) Limited *Plaza Trading Company (Private) Limited *Anklesh Investments (Private)
Limited *Syracuse Investment and Trading Company (Private) Limited *Mahavir Spinning Mills
(Private) Limited (Formerly known as Vardhman
Textiles Processors (Private) Limited) **Northern Trading Company **Ambar Syndicate **Paras Syndicate **Adinath Syndicate **Eastern Trading Company |
Note:
* Only Loan
Transactions have taken place with these Companies.
** No transaction has taken place during the year.
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
Rs. 10/- each |
Rs. 900.000 Millions |
|
10000000 |
Redeemable Cumulative Preference Shares |
Rs. 10/- each |
Rs. 100.000 Millions |
|
|
Total |
|
Rs. 1000.000 Millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
63651879 |
Equity Shares |
Rs. 10/- each |
Rs. 636.519
Millions |
|
|
|
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|
a. Reconciliation
of the Number of shares and amount outstanding at the beginning and at the end
of the reporting period
|
Equity shares |
31.03.2013 |
|
|
|
Number of Shares |
Rs. in Millions |
|
At the beginning of the reporting period |
63651879 |
636.519 |
|
Add: Issued during the reporting period |
-- |
-- |
|
Outstanding at the end of the reporting period |
63651879 |
636.519 |
b. Rights,
preferences and restrictions attached to equity shares
The company has
one class of equity shares having a par value of Rs.10/- each. Each holder of
equity shares is entitled to one vote per share. The dividend proposed by the
Board of Directors is subject to the approval of the shareholders in the
ensuing annual general meeting.
During the year
ended March 31, 2013 the amount of per share dividend recognised
as distributions to equity shareholders was Rs.6 per share (Previous Year:
Rs.4.50).The rate of dividend for redeemable cumulative preference shares is
decided by the board of directors as and when issued.
In the event of
liquidation of the company, the holders of equity shares will be entitled to
receive any of the remaining assets of the company, after distribution of all
preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders
c. Shares held by
holding company or its ultimate holding company or subsidiaries or associates
of the holding company or the ultimate holding company in aggregate.
There is no holding or ultimate holding company of the company.
d. Detail of shareholders holding more than 5% shares in the Company
|
Class of shares and Name of shareholders |
31.03.2013 |
|
|
|
Number of Shares |
% shareholding |
|
Equity shares of Rs.10/- each fully paid |
|
|
|
Devakar Investment and Trading Company Private
Limited |
5541000 |
8.70 |
|
Adinath Investment and Trading Company |
12842000 |
20.81 |
|
Vardhman Holdings Limited |
15403000 |
24.20 |
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 |
636.519 |
636.519 |
636.519 |
|
(b) Reserves and Surplus |
22129.177 |
19323.658 |
18546.096 |
|
(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) |
22765.696 |
19960.177 |
19182.615 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
19849.605 |
19270.273 |
18179.625 |
|
(b) Deferred tax liabilities (Net) |
2271.425 |
2028.523 |
1968.053 |
|
(c) Other long
term liabilities |
102.777 |
25.802 |
32.598 |
|
(d) long-term
provisions |
41.652 |
38.096 |
32.217 |
|
Total Non-current
Liabilities (3) |
22265.459 |
21362.694 |
20212.493 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
7576.464 |
5115.357 |
8646.833 |
|
(b)
Trade payables |
462.790 |
836.821 |
832.063 |
|
(c)
Other current liabilities |
5674.843 |
4154.730 |
3057.382 |
|
(d) Short-term
provisions |
487.981 |
370.278 |
383.529 |
|
Total Current
Liabilities (4) |
14202.078 |
10477.186 |
12919.807 |
|
|
|
|
|
|
TOTAL |
59233.233 |
51800.057 |
52314.915 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i) Tangible assets |
23278.143 |
21939.355 |
21238.229 |
|
(ii)
Intangible Assets |
77.051 |
12.158 |
18.340 |
|
(iii)
Capital work-in-progress |
2128.951 |
1819.122 |
1140.888 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
2931.902 |
3441.984 |
2182.371 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
1425.940 |
906.903 |
483.981 |
|
(e) Other
Non-current assets |
500.208 |
0.204 |
0.267 |
|
Total Non-Current
Assets |
30342.195 |
28119.726 |
25064.076 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
2661.120 |
1705.194 |
1344.107 |
|
(b)
Inventories |
14994.448 |
13152.309 |
15983.946 |
|
(c)
Trade receivables |
6319.161 |
5368.302 |
4895.760 |
|
(d) Cash
and cash equivalents |
266.291 |
584.158 |
487.432 |
|
(e)
Short-term loans and advances |
4471.366 |
2691.717 |
4360.899 |
|
(f)
Other current assets |
178.652 |
178.651 |
178.695 |
|
Total
Current Assets |
28891.038 |
23680.331 |
27250.839 |
|
|
|
|
|
|
TOTAL |
59233.233 |
51800.057 |
52314.915 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations (net) |
41597.105 |
39180.015 |
36068.116 |
|
|
|
Other Income |
548.982 |
605.707 |
432.380 |
|
|
|
TOTAL (A) |
42146.087 |
39785.722 |
36500.496 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
20963.734 |
22003.383 |
18148.548 |
|
|
|
Purchases of stock-in-trade |
268.972 |
310.170 |
556.274 |
|
|
|
Changes in
inventories of finished goods, work-in-progress and stock-in-trade |
(898.142) |
1269.049 |
(2151.775) |
|
|
|
Employee
benefits expense |
2683.433 |
2211.299 |
2079.274 |
|
|
|
Other expenses |
10297.675 |
8458.267 |
8423.697 |
|
|
|
TOTAL (B) |
33315.672 |
34252.168 |
27056.018 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
8830.415 |
5533.554 |
9444.478 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
1743.477 |
1732.227 |
1098.122 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7086.938 |
3801.327 |
8346.356 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2538.578 |
2346.718 |
2260.236 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
4548.360 |
1454.609 |
6086.120 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1311.103 |
357.949 |
1389.071 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
3237.257 |
1096.660 |
4697.049 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value of Export |
15995.920 |
16030.788 |
12182.627 |
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1568.514 |
1072.497 |
1447.661 |
|
|
|
Components & Spare Parts |
527.857 |
426.394 |
418.539 |
|
|
|
Capital Goods |
1333.570 |
1263.147 |
1249.822 |
|
|
TOTAL IMPORTS |
3429.941 |
2762.038 |
3116.022 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
50.86 |
17.23 |
74.21 |
|
|
Particulars |
|
|
31.03.2014 |
|
Sales Turnover (Approximately) |
|
|
52000.000 |
|
|
|
|
|
The above information has been parted by Mr. Neeraj
Gupta (Accounts Manager)
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
12128.100 |
12900.200 |
14311.900 |
|
Total Expenditure |
9242.100 |
9444.300 |
10853.100 |
|
PBIDT (Excl OI) |
2886.000 |
3455.900 |
3458.800 |
|
Other Income |
107.600 |
43.800 |
35.400 |
|
Operating Profit |
2993.600 |
3499.700 |
3494.200 |
|
Interest |
433.000 |
385.800 |
346.700 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
2560.600 |
3113.900 |
3147.500 |
|
Depreciation |
655.600 |
715.800 |
715.100 |
|
Profit Before Tax |
1905.000 |
2398.100 |
2432.400 |
|
Tax |
460.000 |
620.000 |
680.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
1445.000 |
1778.100 |
1752.400 |
|
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 |
1445.000 |
1778.100 |
1752.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
10.79
|
2.76 |
12.87 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
10.93
|
3.71 |
16.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
8.40
|
3.13 |
12.42 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.20
|
0.07 |
0.32 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
1.20
|
1.22 |
1.40 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.03
|
2.26 |
2.11 |
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 |
636.519 |
636.519 |
636.519 |
|
Reserves & Surplus |
18546.096 |
19323.658 |
22129.177 |
|
Net
worth |
19182.615 |
19960.177 |
22765.696 |
|
|
|
|
|
|
long-term borrowings |
18179.625 |
19270.273 |
19849.605 |
|
Short term borrowings |
8646.833 |
5115.357 |
7576.464 |
|
Total
borrowings |
26826.458 |
24385.630 |
27426.069 |
|
Debt/Equity
ratio |
1.398 |
1.222 |
1.205 |
%20-%20267792%2021-May-2014_files/image008.gif)
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 |
36068.116 |
39180.015 |
41597.105 |
|
|
|
8.628 |
6.169 |
%20-%20267792%2021-May-2014_files/image010.gif)
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 |
36068.116 |
39180.015 |
41597.105 |
|
Profit |
4697.049 |
1096.660 |
3237.257 |
|
|
13.02% |
2.80% |
7.78% |
%20-%20267792%2021-May-2014_files/image012.gif)
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
Yes |
|
18] |
Major customers |
Yes |
|
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] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10443552 |
30/12/2013 * |
450,000,000.00 |
STATE BANK OF
INDIA |
IFB, GOLDEN
TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B94846144 |
|
2 |
10446949 |
30/12/2013 * |
695,000,000.00 |
STATE BANK OF
INDIA |
IFB, GOLDEN
TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B94847530 |
|
3 |
10435934 |
30/12/2013 * |
435,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR-21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
B94891157 |
|
4 |
10426904 |
30/12/2013 * |
1,600,000,000.00 |
STATE BANK OF
INDIA |
IFB, GOLDEN
TOWER, DHOLEWAL CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B94853181 |
|
5 |
10348797 |
28/12/2012 * |
2,650,000,000.00 |
STATE BANK OF
PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B66523994 |
|
6 |
10324897 |
25/06/2012 * |
1,300,000,000.00 |
EXPORT-IMPORT
BANK OF INDIA |
CENTRE ONE
BUILDING, FLOOR-21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI,
MAHARASHTRA - 400005, INDIA |
B44004083 |
|
7 |
10307728 |
25/06/2012 * |
4,000,000,000.00 |
IDBI BANK
LIMITED |
INDIAN RED CROSS
SOCIETY BUILDING, 1, RED CROSS R |
B43941921 |
|
8 |
10304839 |
25/06/2012 * |
2,350,000,000.00 |
STATE BANK OF
INDIA |
S.C.B MILLER GANJ,
PAHWA HOSPITAL COMPLEX (MID C |
B43971183 |
|
9 |
10293871 |
27/05/2013 * |
750,000,000.00 |
KOTAK MAHINDRA
BANK LIMITED |
7TH FLOOR,
AMBADEEP BUILDING, 14 K G MARG, NEW |
B77078913 |
|
10 |
10228291 |
29/06/2011 * |
2,350,000,000.00 |
BANK OF INDIA |
579-R, MODEL
TOWN, LUDHIANA, PUNJAB - 141002, INDIA |
B17104969 |
|
11 |
10188277 |
07/10/2011 * |
1,510,000,000.00 |
BANK OF INDIA |
LUDHIANA MID CORPORATE
BRANCH, LUDHIANA, PUNJAB - 141002, INDIA |
B23622962 |
|
12 |
10179999 |
07/10/2011 * |
200,000,000.00 |
ORIENTAL BANK OF
COMMERCE LIMITED |
DELHI, INDIA,
NEW DELHI, DELHI - 110001, INDIA |
B22727721 |
|
13 |
10071930 |
26/09/2011 * |
1,990,000,000.00 |
STATE BANK OF
INDIA |
SCB, MILLER
GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23363922 |
|
14 |
10039489 |
29/09/2011 * |
1,150,000,000.00 |
STATE BANK OF
PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23619174 |
|
15 |
10027682 |
08/10/2011 * |
445,000,000.00 |
STATE BANK OF
MYSORE |
224, MITTAL
COURT,, C- WING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA |
B22547624 |
|
16 |
10027686 |
19/01/2012 * |
1,000,000,000.00 |
AXIS BANK
LIMITED |
SURYA TOWER, MALL
ROAD, LUDHIANA, PUNJAB - 141003, INDIA |
B30385801 |
|
17 |
10026460 |
07/10/2011 * |
500,000,000.00 |
BANK OF INDIA |
LUDHIANA MID
CORPORATE BRANCH, LUDHIANA, PUNJAB - 141003, INDIA |
B23619463 |
|
18 |
10025352 |
08/10/2011 * |
709,500,000.00 |
ALLAHABAD BANK |
INTER. CUM
INDUS. FINANCE BRANCH, NEAR CHEEMA CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B24050007 |
|
19 |
10026463 |
19/10/2011 * |
1,000,000,000.00 |
CANARA BANK |
BHARAT NAGAR
CHOWK, LUDHIANA, PUNJAB - 141003, INDIA |
B25074543 |
|
20 |
10023023 |
26/09/2011 * |
500,000,000.00 |
STATE BANK OF
INDIA |
SCB, MILLER
GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23358260 |
|
21 |
10024172 |
26/09/2011 * |
500,000,000.00 |
STATE BANK OF
INDIA |
SCB, MILLER
GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23363625 |
|
22 |
10020245 |
07/10/2011 * |
1,500,000,000.00 |
ORIENTAL BANK OF
COMMERCE |
OVERSEAS BRANCH,
GT ROAD, LUDHIANA, PUNJAB - 141001, INDIA |
B24636458 |
|
23 |
10023021 |
07/10/2011 * |
1,500,000,000.00 |
STATE BANK OF
HYDERABAD |
SI BRANCH SONA
COMPLEX, GT ROAD, MILLER GANJ, PUNJAB - 141003, INDIA |
B24291510 |
|
24 |
10023020 |
11/10/2011 * |
3,000,000,000.00 |
PUNJAB NATIONAL
BANK |
LARGE CORPORATE
BRANCH, BHAGWATI TOWER, CHEEMA CH |
B23621048 |
|
25 |
10013500 |
29/09/2011 * |
1,500,000,000.00 |
STATE BANK OF
PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B23620180 |
|
26 |
80035604 |
19/10/2011 * |
1,500,000,000.00 |
CANARA BANK |
BHARAT NAGAR
CHOWK, LUDHIANA, PUNJAB - 141001, INDIA |
B25069626 |
|
27 |
80033171 |
18/10/2011 * |
710,000,000.00 |
CORPORATION BANK |
SCO-34, FEROZ
GANDHI MARKET, PAKHOWAL ROAD, LUDHIANA, PUNJAB - 141001, INDIA |
B25067190 |
|
28 |
90170200 |
20/10/2011 * |
1,200,000,000.00 |
INDUSTRIAL
DEVELOPMENT BANK OF INDIA LIMITED |
INDIAN RED CROSS
SOCIETY BUILDING, 1, RED CROSS ROAD, POST BAG NO. 231, NEW DELHI, DELHI -
110001, INDIA |
B25232042 |
|
29 |
90170184 |
19/01/2012 * |
671,600,000.00 |
AXIS BANK
LIMITED |
SURYA TOWER, LUDHIANA,
PUNJAB - 141003, INDIA |
B30383343 |
|
30 |
90170169 |
11/10/2011 * |
450,000,000.00 |
PUNJAB NATIONAL
BANK |
LARGE CORPORATE
BRANCH, BHAGWATI TOWER, CHEEMA CH |
B23623390 |
|
31 |
90169366 |
07/04/2008 * |
250,000,000.00 |
ICICI BANK
LIMITED |
ICICI BANK
TOWER, NBCC PLACA, BHISHAM PITAMAH MAGR, PRAGTI VIHAR, NEW DELHI, DELHI -
110003, INDIA |
A36609873 |
|
32 |
90169343 |
25/06/2012 * |
16,000,000,000.00 |
STATE BANK OF
PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
B44001337 |
* Date of Charge modification
UNSECURED LOANS
|
PARTICULAR |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
|
SHORT TERM BORROWINGS |
|
|
|
Loans repayable on demand |
|
|
|
- From related parties |
14.780 |
356.765 |
|
|
|
|
|
Total |
14.780 |
356.765 |
CORPORATE INFORMATION
Subject is a public company incorporated under the provisions of the
Companies Act, 1956 on 8th October, 1973. The name of the company at its
incorporation was Mahavir Spinning Mills Limited and
subsequently changed to Vardhman Textiles Limited on
5th September, 2006. The company is engaged in manufacturing of Cotton Yarn,
Synthetic Yarn and woven Fabric.
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
BUSINESS REVIEW
ECONOMIC OUTLOOK
Global economic outlook has been improving and expected to grow above 3%
in 2013 and 4% in 2014, though the growth is not uniform even among the developed
countries. For instance, private demand in USA has been growing giving strength
to the recovery there but similar indications are missing in EU. USA is
estimated to grow by 1.9% in 2013 followed by 3% in 2014 whereas EU may record
0.3% growth in 2013 followed by 1.1% growth in 2014. Growth in Japan is
expected to marginally reduce in 2013 and 2014. The driver of the developed
countries’ growth is mainly monetary easing which needs to be substituted with
more fundamental forces to make it sustainable. Success in avoiding euro area
breakup and deferment of fiscal contraction helped the world economy to recover
some ground in economic growth.
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 and consumption side from exports and investments. It is
expected that such a move would strengthen the growth in emerging economies in
coming years.
In world trade, the projected higher export growth rates of (6-7%) of
emerging economies than developed economies in 2013 and 2014, especially in non
fuel categories indicate good scope of manufacturing exports from developing
countries. Exports may grow within emerging economies in years to come.
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 lacklustre
performance of manufacturing sector especially catering to exports are some
factors affecting the business climate and investor confidence in the country
adversely. It is expected to take a couple of years before Indian economy can
again reach 8 plus GDP growth path though reduction in international oil and
commodities prices may lend some respite to manufacturing competitiveness of
Indian economy.
COTTON
During 2012-13, the International cotton prices benefited radically from
the policies of the Chinese Government. Although the global stock-to-use ratio
is forecast at 72% for financial year 2012-13, the highest in over 60 years, it
must be borne in mind that a large part of world cotton stocks are in the hands
of the Chinese government. Though the future Chinese policies remain unclear,
but it does not seem that the reserve cotton will be released in quantities large
enough to significantly undermine domestic Chinese prices or international
cotton prices.
In 2012-13, global cotton production is estimated at 26.4 million tons,
down by 5%, while cotton mill use is expected to rise by 6%. With consumption
anticipated at 23.5 million tons, the global stocks at the end of July 2013 are
forecast at a record 17.9 million tons, up 19% from the previous year.
In 2013-14, world area under cotton cultivation is likely to drop by
5-6% due to better prices available to farmers against alternative crop.
Globally, the cotton production is estimated at around 25.5 million tons
against consumption of about 24.5 million tons. The major increase in stock
will happen in China whereas the world stock minus China is likely to be reduced.
COTTON BALANCE
SHEET – INDIA
The cotton production in India in the current season (October-
September) is estimated to be around 34 million bales. The exports of cotton
are estimated at 10 million bales as compared to 12.9 million bales in 2011-12.
Domestic consumption of cotton increased by 13% as compared to last year.
Consequently, the closing stock of cotton is expected to get substantially
reduced.
In 2013-14, it is anticipated that the area under cotton cultivation in
the country will reduce by around 5% again due to better margins in alternative
crops. However, with the forecast of normal and on time monsoons the yield is
likely to be better than the year 2012-13.
YARN
Cotton yarn production in India increased by about 14% during the year
2012-13. Most Indian yarn manufacturers experienced high demand from domestic
as well as export market, mainly from China during the financial year 2012-13. Favourable policy environment, improved demand supply
position and favourable input costs were some of the
other driving factors that led to improvements in margins.
With lower cotton prices, depreciating rupee, slow but steady pick up in
domestic demand and continued likely demand of cotton yarn from China, yarn
manufacturers expect to maintain their margins in the coming quarters. Also,
Foreign Direct Investment in retail is an opportunity that would unleash demand
in the long run and offset any slowdown in the spinning sector.
COMPANY’S FUTURE
OUTLOOK:
In order to cater to its ever increasing customer base, the Company is
expanding its existing spinning capacities with installation of additional
spindles at Budhni and Satlapur.
The projects are expected to commence commercial production during the coming
year. An additional 220 looms shall also be commissioned by December 2013.
Apart from these expansions, the Company continues to modernize its capacities
and go in for line balancing as and when required.
The Company also continues to lay emphasis on process improvements,
diversification of products, rationalization of costs, improving efficiencies
and building a strong customer base.
FINANCIAL ANALYSIS
AND REVIEW OF OPERATIONS
PRODUCTION AND
SALES REVIEW
During the year, the Company has registered Revenue from operations
(turnover) of Rs.41597.100 Millions as compared to Rs.39180.000 Millions
showing an increase of 6.17% over previous year. The exports of the Company
decreased from Rs.16030.800 Millions to Rs.15995.900 Millions showing a decline
of 0.22% over the previous year. The business wise performance is as under:-
A). YARN:
The production of Yarn increased from 138,046 MT to 148,003 MT during
the year 2012-13. The sales revenue of yarn increased from Rs.24217.700
Millions to Rs.25234.600 Millions during the year showing an increase of 4.20%.
B) FABRIC:
During the year, the production of fabric (grey and processed) increased
from 187.12 million meter to 219.00 million meter, showing an increase of
17.04% over the previous year. The sales revenue of the fabric (grey and
processed) also increased from Rs.11998.100 Millions to Rs.13669.600 Millions
showing an increase of 13.93% over the previous year.
SUBSIDIARIES
The Company has following subsidiary companies, the details of financial
performance of which are given below:-
VMT SPINNING
COMPANY LIMITED (VMT)
The business of this subsidiary of the Company which is a Joint Venture
with Marubeni Corporation, Marubeni HongKong and
South China Limited and Toho Tenax Limited of Japan
has improved as compared to last year. The Revenue from operations of VMT has
increased to Rs.1474.500 Millions from Rs.1445.100 Millions in the last year.
The Company earned a net profit of Rs.54.500 Millions as against net loss of
Rs.18.700 Millions in the previous year due to better margins available. Out of
the total present paid-up capital of Rs.207.000 Millions, the Company holds
73.33 %. The Board of Directors of VMT has recommended a dividend @ 10% on its
paid up equity share capital for the year 2012-13.
VTL INVESTMENTS
LIMITED (VTL)
This 100% subsidiary of the Company is engaged with the business of
investments in shares, bonds, debentures etc. The earnings of the company
mainly comes from the dividend/interest earned on its investments and profits
made on sale of investments. During the year, VTL has earned a net profit of
Rs.20.600 Millions.
VARDHMAN ACRYLICS
LIMITED (VAL)
Vardhman Acrylics Limited (VAL) is another
subsidiary of the Company which is engaged in the business of manufacturing of
Acrylic Fibre. The Company held 67.37% shares in VAL
as at the end of the year. During the Financial Year 2012-13, VAL recorded
Revenue from operations of Rs.4364.900 Millions (including Trading of goods of
Rs.1347.200 Millions) as against Rs.3901.400 Millions (Including Trading of
goods Rs.880.400 Millions) in corresponding period last year. The net profit
for the year has decreased marginally to Rs.244.000 Millions from Rs.244.900
Millions in the previous year. During the year, VAL bought back and
extinguished 13,906,160 of its Equity Shares of Rs.10/- each out of maximum of
20,000,000 Equity shares as approved by its Board of Directors.
VARDHMAN YARNS and
THREADS LIMITED (VYTL)
This subsidiary of the Company, a Joint Venture with American and Efird Inc. (AandE), is engaged in
the business of Threads Manufacturing and Distribution. VYTL is a joint venture
partnership of 51:49 with AandE, which is the second
largest player in Threads Manufacturing and Distribution across the world. During
the year, the Revenue from Operations were Rs.5405.400 Millions as against
Rs.4646.900 Millions in the previous year registering an increase of 16.32%.
The Net Profit for the year was Rs.431.500 Millions as compared to Rs.397.000
Millions during last year recording an increase of 8.69%. This has been
possible because of increase in production and sales revenue in all the
verticals i.e. Consumers, Industrial and Specialty products. The Board of
Directors of VYTL has recommended a dividend @ 30%, on it’s paid up equity
share capital, for the year 2012-13.
VARDHMAN NISSHINBO
GARMENTS COMPANY LIMITED (VNGL)
This subsidiary of the Company which is a Joint Venture partnership of
51:49 with Nisshinbo Textiles Inc., Japan for manufacturing world class men’s
shirts. During the year, the Revenue from Operations of VNGL was Rs.176.600
Millions as compared to Rs.74.300 Millions in the previous year. VNGL incurred
a net loss of Rs.48.600 Millions as against Rs.42.400 Millions in the previous
year. This is on account of lower productivity, labour
turnover and lack of skilled workers. VNGL is expected to stabilize its
business operations during the next financial year.
UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER, 2013
[RS.
IN MILLIONS]
|
PART - I |
Quarter Ended |
Nine Months Ended |
||
|
Particulars |
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
|
1 |
Income
from Operations a) Net Sales/Income from Operations (Net
of excise duty) b) Other Operating Income |
14159.800 152.100 |
12795.100 96.700 |
38891.000 440.800 |
|
|
Total
Income from operations (net) |
14311.900 |
12891.800 |
39331.800 |
|
2 |
Expenditure a) Cost of materials consumed b) Purchase of traded goods |
6491.700 126.900 |
5996.800 170.700 |
18005.000 433.500 |
|
|
c) Change in inventories of finished goods,
work in progress and stock in trade |
(18.000) |
(827.900) |
(871.400) |
|
|
d) Employee benefits expense e) Depreciation and Amortisation f) Power and Fuel g) Other expenditure |
811.600 715.100 1415.600 2025.300 |
810.300 715.800 1349.100 1945.300 |
2374.700 2086.500 5587.100 |
|
|
Total
Expenditure : (a + b + c + d + e + f+g) |
11568.200 |
10160.100 |
31626.000 |
|
3 |
Profit/(Loss)
from Operations before Other Income and Finance Costs and Exceptional Items
(1-2) |
2743.700 |
2731.700 |
7705.800 |
|
4 |
Other
Income |
-- |
18.000 |
105.200 |
|
5 |
Profit/(Loss)
from Ordinary Activities before Finance Costs (3+4) |
2743.700 |
2749.700 |
7811.000 |
|
6 |
Finance
Costs |
311.300 |
351.600 |
1075.500 |
|
7 |
Profit/(Loss)
from Ordinary Activities after Finance Costs but before Exceptional Items
(5-6) |
2432.400 |
2398.100 |
6735.500 |
|
8 |
Exceptional Items |
-- |
-- |
-- |
|
9 |
Profit/(Loss)
from Ordinary Activities before Tax (7+8) |
2432.400 |
2398.100 |
6735.500 |
|
10 |
Tax
Expenses |
680.000 |
620.000 |
1760.000 |
|
11 |
Net
Profit/(Loss) from Ordinary Activities after Tax (9-10) |
1752.400 |
1778.100 |
4975.500 |
|
12 |
Extraordinary
items |
-- |
-- |
-- |
|
13 |
Net
Profit/(Loss) for the period (11+12) |
1752.400 |
1778.100 |
4975.500 |
|
14 |
Paid-up
Equity Share Capital (Face value of Rs.10/- per share) |
636.500 |
636.500 |
636.500 |
|
15 |
Reserves
Excluding Revaluation Reserves |
-- |
-- |
-- |
|
16 |
Earnings per
share (before extraordinary items) (of Rs. 10/- each) (not annualized) Basic |
27.53 |
27.94 |
78.17 |
|
|
Diluted |
27.53 |
27.94 |
78.17 |
|
|
Earnings per
share (after extraordinary items) (of Rs. 10/- each) (not annualized) Basic |
27.53 |
27.94 |
78.17 |
|
|
Diluted |
27.53 |
27.94 |
78.17 |
|
PARTICULARS OF SHAREHOLDING |
||||
|
Particulars |
|
|
|
|
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
|
|
1 |
Public Shareholding - Number of Shares - Percentage of Shareholding |
24281866 38.15% |
24381154 38.30% |
24281866 38.15% |
|
2 |
Promoters
and Promoter group shareholding a) Pledged / Encumbered - Number of Shares - Percentage of shares ( as a % of
the total shareholding of promoter and promoter group ) - Percentage of shares ( as a % of
the total share capital of the Company ) b) Non-Encumbered - Number of Shares - Percentage of shares ( as a % of
the total shareholding of promoter and promoter group ) - Percentage of shares ( as a % of
the total share capital of the Company ) |
-- -- -- 39370013 100% 61.85% |
-- -- -- 39270725 100% 61.70% |
-- -- -- 39370013 100% 61.85% |
|
PARTICULARS |
Quarter
Ended 31.12.2013 |
|
B INVESTOR COMPLAINTS (Nos.) Pending
at the beginning of the quarter Received
during the quarter Disposed
of during the quarter Remaining
unresolved at the end of the quarter |
Nil 7 7 Nil |
SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
[RS.
IN MILLIONS]
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1.
Segment Revenue (net of Excise Duty) |
|
|
|
|
Yarn |
11815.300 |
10989.800 |
32755.800 |
|
Fabric |
5221.800 |
4523.200 |
14235.100 |
|
Unallocated
|
610.800 |
548.500 |
1716.500 |
|
Total |
17647.900 |
16061.500 |
48707.400 |
|
Less:
Inter Segment Revenue |
3488.100 |
3266.400 |
9816.400 |
|
Net
Sales/Income from operations |
14159.800 |
12795.100 |
38891.000 |
|
2.
Segment Results |
|
|
|
|
Profit
/(Loss) before Finance Costs and Tax |
|
|
|
|
Yarn |
1847.400 |
2047.900 |
5366.500 |
|
Fabric |
770.000 |
610.600 |
1950.100 |
|
Unallocated
|
182.100 |
144.300 |
479.700 |
|
Total |
2799.500 |
2802.800 |
7796.300 |
|
Less: |
|
|
|
|
i. Finance Costs |
311.300 |
351.600 |
1075.500 |
|
ii. Unallocable
Expenses net of un-allocable income |
55.800 |
53.100 |
(14.700) |
|
Profit/(Loss)
before Tax |
2432.400 |
2398.100 |
6735.500 |
|
3.
Capital Employed |
|
|
|
|
(Segment
Assets - Segment Liabilities) |
|
|
|
|
Yarn |
31401.900 |
27789.200 |
31401.900 |
|
Fabric |
14310.300 |
13351.400 |
14310.300 |
|
Unallocated
|
9680.300 |
10170.300 |
9680.300 |
|
Capital
work in progress |
1331.100 |
3515.000 |
1331.100 |
|
Total |
56723.600 |
54825.900 |
56723.600 |
NOTES:
1. The Company has provided the loss for outstanding
derivative options on mark to market basis in the current quarter. The figures
for the corresponding period may not be comparable.
2. Other income comprises dividend received from
subsidiary companies.
3. Interest expense is net of interest income from
deposits/bonds amounting to Rs. 35.400 Millions for
the quarter ended 31.12.2013 and Rs. 90.000 Millions
for the period ended 31.12.2013.
4. During the Quarter ended 31.12.2013,
additional 28800 spindles and 110 looms have become operational at Vardhman Fabrics, Budhni under
the expansion programme undertaken by the Company.
5. During the Quarter ended 31.12.2013,
Promoters and Promoter Group purchased 99288 shares of the company from open
market and accordingly Promoters and Promoter Group shareholding has increased
to that extent as on 31.12.2013.
6. Figures for previous periods have been
recast/regrouped, wherever necessary to make them comparable.
7. The Board of Directors has approved the above
results in their meeting held on 04.02.2014 which have been reviewed by the
Statutory Auditors in terms of Clause 41 of the Listing Agreement.
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2013 (Rs. In Millions) |
31.03.2012 (Rs. In Millions) |
|
(i) Claims not acknowledged as debts |
134.223 |
93.720 |
|
(Ii) Bank Guarantees and Letters of Credit outstanding |
2261.240 |
1658.171 |
|
(iii) Bills discounted with banks |
417.664 |
828.988 |
|
(iv) Other monies for which the company is contingently liable a) The Company has contested the additional demand in respect of Sales Tax, Excise Duty etc., amounting to Rs.51.502 Millions (Previous Year Rs. 55.449 Millions). As against this a sum of Rs. 10.171 Millions (Previous Year Rs. 15.585 Millions) has been deposited under protest and stands included under the head “other recoverable - Short-term loans and advances“. The Company has filed an appeal with the Appellate Authorities and is advised that the demand is not in accordance with law. No provision, therefore, has been made in accounts in respect thereof. b) The Company has contested the additional demand in respect of income tax amounting to Rs. 503.600 Millions (Previous Year Rs. 481.900 Millions). Pending appeal with appellate authorities, provision of Rs. 232.300 Millions (Previous Year Rs. 282.300 Millions) has not been made in the books of account as the company is confident to get the desired relief. c) The company had taken over the textile undertaking of Vardhman Holdings Limited (formerly known as Vardhman Spinning & General Mills Limited) by a scheme of Arrangement and De-merger. An injunction was obtained against the London Branch of the said textile undertaking for preventing disposal of assets upto the value of Pound Sterling 2.99 Lac as a result of a court case pending in London for alleged non-fulfilment of an agreement of cotton purchase. The said matter had been decided against the said textile undertaking and accordingly, Pound Sterling 0.48 Lac lying in the bank account at London had been paid to the claimant pursuant to the Order of the Court. The said amount was written off in the books of the said undertaking by way of debit to the statement of Profit and Loss. No provision has been made for the balance decreed amount by the undertaking in view of the fact that the said undertaking was prevented by force majure in fulfilling its part of contract. The Company as successor to the textile undertaking is contesting this matter in Indian Courts and is confident that there would not be any further liability in this regard. |
||
FIXED ASSETS:
Tangible Assets:
v
Free-hold
Land
v
Leasehold
Land
v
Buildings
v
Plant
and Equipment
v
Furniture
and Fixtures
v
Vehicles
v
Office
equipment
Intangible Assets:
v
Computer
Software
v
Right
to use Power lines
CMT REPORT (Corruption, Money Laundering and 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 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. 58.75 |
|
|
1 |
Rs. 98.77 |
|
Euro |
1 |
Rs. 80.53 |
INFORMATION DETAILS
|
Information
Gathered by : |
HNA |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
66 |
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 and 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.