MIRA
INFORM REPORT
|
Report Date : |
27.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
ARVIND
LIMITED (w.e.f. 14.07.2008) |
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Formerly Known
As : |
ARVIND MILLS LIMITED |
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Registered
Office : |
Naroda Road, Railwaypura Post, Ahmadabad – 380025, Gujarat |
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Country : |
India |
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Financials (as
on) : |
31.03.2013 |
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Date of
Incorporation : |
01.06.1931 |
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Com. Reg. No.: |
04-000093 |
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Capital Investment
/ Paid-up Capital : |
Rs.2580.400 Millions |
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CIN No.: [Company Identification
No.] |
L17119GJ1931PLC000093 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
AHMT00462A |
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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 shirting, denim, knits and bottom
weights, fabrics, jeans, and garments. |
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No. of Employees
: |
Information denied by the management. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
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Maximum Credit Limit : |
USD 92000000 |
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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 an old and well-established company having fine track
record. The rating reflects healthy financial risk profile supported by
adequate liquidity position and growing scale of its operations with an improvement
in its top line during the financial year 2013. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitments. The company can be considered good for normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
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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 |
CARE |
|
Rating |
Long term bank facilities: A |
|
Rating Explanation |
Adequate credit quality and average credit risk. |
|
Date |
21 October 2013 |
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Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities: A1 |
|
Rating Explanation |
Very strong degree of safety and lowest credit risk. |
|
Date |
21 October 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-co-operative [91-2764-395560]
LOCATIONS
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Registered/ Corporate Office/ Secretarial Department: |
Naroda Road, Railwaypura Post, Ahmadabad – 380025, Gujarat, India |
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Tel. No.: |
91-79-22121408 / 22203030 / 22200206 / 22208000 / 30138000/ 30138108-9 |
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Fax No.: |
91-79-22124314 / 22120267 / 22371396 / 22372342 / 22379184 / 22201608
/ 22201270 / 30138680/ 30138668 |
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E-Mail : |
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Website : |
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Factory 1 : |
Lifestyle Fabrics–Denim, Naroda Road, Ahmedabad - 380025, Gujarat,
India |
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Tel. No.: |
91-79-30138000 / 30138181 |
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Fax No.: |
91-79-30138671 |
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E-Mail : |
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Factory 2 : |
Lifestyle Fabrics–Shirting, Khakis and Knitwear, Santej, PO Khatrej, Taluka
Kalol, Dist. Gandhinagar-382721, Gujarat, India |
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Tel. No.: |
91-2764-395560 |
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Fax No.: |
91-2764-395040 |
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E-Mail : |
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Factory 3 : |
Lifestyle Apparel–Knits, Santej, PO Khatrej, Taluka Kalol, District
Gandhinagar - 382721 , Gujarat, India |
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Tel. No.: |
91-2764-395410 |
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E-Mail : |
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Factory 4 : |
Lifestyle Apparel–Shirts, No. 23/1, Sonnenahalli Villege, Sitaram
Palya Cross, ITPL Road, Brook field, Mahadevpura Post, Bangalore - 560048,
India |
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Tel. No.: |
91-80-33717000 |
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E-Mail : |
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Factory 5 : |
Lifestyle Apparel–Jeans, 26/2, 27/2 Kenchenahaili, Mysore Road, Near
Bangalore University, Bangalore-560059, India |
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Tel. No.: |
91-80-33719000 |
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E-Mail : |
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Factory 6 : |
Arvind Intex, Rajpur Road, Gomtipur, Ahmedabad - 380021, Gujarat,
India |
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Factory 7 : |
Ankur Textiles, Outside Raipur Gate, Ahmedabad - 380022, Gujarat,
India |
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Tel. No.: |
91-79-30137200 / 30137231 |
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Fax No.: |
91-79-30137231 |
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E-Mail : |
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Factory 8 : |
Arvind Polycot, Khatrej, Taluka Kalol, Dist. Gandhinagar- 382721,
Gujarat, India |
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Factory 9 : |
Arvind Cotspin, D-64, MIDC, Gokul Shirgaon, Tal. Karveer, Kolhapur -
416234, Maharashtra, India |
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Factory 10 : |
Lifestyle Fabrics – Voiles, Ankur Textiles, Outside Raipur Gate,
Ahmedabad - 380 022, Gujarat, India |
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Tel. No.: |
91-79-30137200/30137231 |
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Fax No.: |
91-79-30137350 |
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E-Mail : |
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Factory 11 : |
Lifestyle Apparel–Shirts, No. 23/1, Sonnenahalli Village, Sitarampalya
Cross, ITPL Road, Brookfield, Mahadevpura Post, Bangalore - 560 048,
Karnataka, India |
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Tel. No.: |
91-80-33717000 |
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E-Mail : |
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Branch Office 1 : |
Mumbai Neptune House, 2nd Floor, Opposite Bandra Talkies, SV Road, Mumbai –
400050, Maharashtra, India |
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Tel. No.: |
91-22-26513367/68/69 |
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Fax No.: |
91-22-26513472 |
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Branch Office 2 : |
Delhi 8 Community Centre, Saket, New Delhi– 110017, India |
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TeleFax : |
91-11-51664620/24 |
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Branch Office 3 : |
Bangalore Grace Mansion, 25 Infantry Road, Bangalore – 560001, Karnataka, India |
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Tel. No.: |
91-80-22865117/7697 |
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Fax No.: |
91-80-22860564 |
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Branch Office 4 : |
Kolkata 100, Park Street, Laxmi Nivas, 2nd Floor, Kolkata , West Bengal, India |
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TeleFax : |
91-33-22835792 |
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Branch Office 5 : |
International
Offices USA Arvind Worldwide (USA) Inc., 130, West 42nd Street, Suite
No. 603, 6th Floor, NY 10036, New York, USA |
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Tel. No.: |
001-212-768-4815 |
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Fax No.: |
001-212-768-7378 |
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Branch Office 6 : |
Sri Lanka Sri Lanka Liason Office, 207/24, 2/2 Dharmapala Mawatha, Colombo, Sri
Lanka |
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TeleFax : |
0094-11-2678564 |
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Branch Office 7 : |
Bangladesh C/o Sidko Limited 7th Floor, Paragon House , Mohakali Commercial Area, Dhaka – 1212,
Bangladesh |
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Tel. No.: |
8802-9881794 |
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Fax No.: |
8802-9883400 |
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Branch Office 8 : |
Sharda Trust Asoka Spintex Premises, Naroda Road, Ahmedabad – 380025, Gujarat,
India |
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Tel. No.: |
91-79-22200817/3266 |
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Fax No.: |
91-79-22200457 |
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Garment Export Division : |
10th Floor, Du Parc Trinity, 17 MG Road, Bangalore -560001,
Karnataka, India |
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Overseas Office 1 : |
Arvind Worldwide
Inc. 130, West, 42nd Street, Suite 603, 6th Floor,
New York, New York -10036, USA |
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Tel No.: |
+(212)768-4815 |
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E mail: |
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Overseas Office 2 : |
Arvind Limited Unit : 1705, 17th Floor, Rendy Centre, 682-684, Castle Peak
Road, Cheung Sha Wan, Kowloon, Hong Kong |
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Tel. No.: |
852 66271025 |
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Fax No.: |
963 27820090 |
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E-Mail : |
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Overseas Office 3: |
Arvind Limited Plot No.221 Bir Uttam Mir Shawkat
Road, (Gulshan – Tejgaon Link Road) Tejgaon I/A, Dhaka – 1208, Bangladesh |
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Tel No.: |
880-2-9887123 / 124 |
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E-Mail : |
DIRECTORS
AS ON 31.03.2013
|
Name: |
Mr. Sanjay S. Lalbhai |
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Designation: |
Chairman and Managing Director |
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Qualification: |
Science Graduate, Master’s Degree in Business Management |
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Name: |
Mr. Jayesh K. Shah
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Designation: |
Director and Chief Financial Officer |
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Qualification: |
Commerce Graduate Chartered Accountant |
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Name : |
Mr.Punit S. Lalbhai |
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Designation : |
Executive Director |
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Name : |
Mr.Kulin S. Lalbhai |
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Designation : |
Executive Director |
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Name : |
Mr. Sudhir Mehta |
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Designation : |
Director |
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Name : |
Dr. Bakul Dholakia |
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Designation : |
Director |
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Name : |
Mr. Munesh Khanna |
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Designation : |
Director |
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Qualification
: |
Chartered Accountant |
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Name : |
Ms. Renuka Ramnath |
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Designation : |
Director |
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Name : |
Mr. Prabhakar Dalal |
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Designation : |
Nominated by Export-Import Bank of
India |
KEY EXECUTIVES
|
Name : |
Mr. R.V. Bhimani |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2014
|
Category of Shareholder |
No. of Shares |
% of No. of Shares |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
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|
2341906 |
0.91 |
|
|
110763855 |
42.97 |
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|
113105761 |
43.88 |
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Total shareholding of Promoter
and Promoter Group (A) |
113105761 |
43.88 |
|
(B) Public Shareholding |
|
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|
|
|
|
|
|
20027918 |
7.77 |
|
|
91635 |
0.04 |
|
|
500 |
0.00 |
|
|
16613171 |
6.45 |
|
|
58766707 |
22.80 |
|
|
1113 |
0.00 |
|
|
1113 |
0.00 |
|
|
95501044 |
37.05 |
|
|
|
|
|
|
8291728 |
3.22 |
|
|
|
|
|
|
29213554 |
11.33 |
|
|
7750914 |
3.01 |
|
|
3877816 |
1.50 |
|
|
1427337 |
0.55 |
|
|
2020 |
0.00 |
|
|
2448459 |
0.95 |
|
|
49134012 |
19.06 |
|
Total Public shareholding (B) |
144635056 |
56.12 |
|
Total (A)+(B) |
257740817 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
435572 |
0.00 |
|
|
435572 |
0.00 |
|
Total (A)+(B)+(C) |
258176389 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing of cotton shirting, denim, knits and bottom weights,
fabrics, jeans, and garments. |
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Products : |
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PRODUCTION STATUS (AS ON 31.03.2011)
|
Particulars |
Installed
Capacity |
|
Spindles |
72872 |
|
Rotors |
5472 |
|
Knitting Machines |
116 |
|
Looms |
1162 |
|
EPBAX / RAX System Lines |
200000 |
|
Garments (Pcs.) |
13120000 |
Note:
- The company is exempt from the licensing provisions of the
Industrial (Development and Regulation) Act, 1951
- Installed Capacity is as certified by the management and relied upon
by the auditors, being a technical matter.
|
Particulars |
Unit |
Actual
Production (Quantity
in millions) |
|
Cloth * |
Meters |
138.200 |
|
Cloth ** |
Kgs. |
3.200 |
|
Yarn *** |
Kgs. |
0.100 |
|
EPBAX |
Lines |
0.200 |
|
Garments **** |
Nos. |
12.900 |
|
Yarn @ |
Kgs. |
0.800 |
|
Grey @ |
Meters |
0.600 |
|
Grey @ |
Kgs. |
(443310.000) |
*Net of internal consumption of 9.500 Millions (3.900 Millions) Meters
**Net of internal consumption of 1.00 Millions (2.500 Millions) Kgs
***Net of internal consumption of 6.900 Millions (6.800 Millions) Kgs
****Includes Garments produced outside the company by job workers, Net
of Internal Consumption of (7478) Pcs.
@ Semi Processed Goods meant for sale
Note:
Quantity of cloth shown in opening stock, production and closing stock is packed cloth only and does not include loose finished cloth lying in folding/ stamping department.
GENERAL INFORMATION
|
No. of Employees : |
Information denied by the management. |
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Bankers : |
·
State Bank of India ·
Bank of Baroda ·
UCO Bank ·
State Bank of Patiala ·
HDFC Bank Limited ·
Standard Chartered Bank ·
ICICI Bank Limited ·
Export-Import Bank of India ·
Axis Bank Limited ·
State Bank of Hyderabad ·
IDBI Bank Limited ·
Canara Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Sorab S. Engineer
and Company Chartered Accountants |
|
Address : |
Ismail Building 381, Dr. D. Naoroji Road Fort, Mumbai-400
001, Maharashtra, India |
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Subsidiary
Companies: |
·
Asman Investment Limited ·
The Anup Engineering Limited ·
Arvind Lifestyle Brands Limited ·
Arvind Accel Limited ·
Syntel Telecom Limited ·
Arvind Infrastructure Limited ·
Arvind Brands and Retail Limited ·
Arvind Envisol Private Limited ·
Arvind Worldwide Inc., USA ·
Arvind Worldwide (M) Inc., Mauritius ·
Arvind Overseas (M) Limited, Mauritius ·
Arvind Spinning Limited, Mauritius ·
Arvind Textile Mills Limited, Bangladesh ·
Arvind Spinning Park Private Limited ·
Arvind Hebbal Homes Private Limited |
|
|
·
|
|
Joint Venture |
·
Arya Omnitalk Wireless Solutions Private Limited ·
Tommy Hilfiger Arvind Fashions Private Limited ·
Arya Omnitalk Radio Trunking Services Private
Limited ·
Arudrama Developers Private Limited |
|
|
|
|
Joint Venture
Subsidiary Company: |
·
Arvind PD Composites Private Limited ·
Arvind Goodhill Suit Manufacturing Private
Limited ·
Arvind Niloy Exports Private Limited, Bangladesh ·
Arvind OG Nonwovens Private Limited |
|
|
|
|
Limited
Liability Partnership: |
·
Arvind Bsafal Homes LLP ·
Ahmedabad East Infrastructure LLP ·
Arvind and Smart Value Homes LLP |
|
|
|
|
Company under
the control of Key
Managerial Personnel: |
·
Aura Securities Private Limited ·
Amplus Capital Advisors Private Limited |
CAPITAL STRUCTURE
AS ON 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
565000000 |
Equity Shares |
Rs.10/- each |
Rs. 5650.00 Millions |
|
10000000 |
Preference Shares |
Rs.100/- each |
Rs. 1000.000 Millions |
|
|
TOTAL |
|
Rs. 6650.000
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
258043969 |
Equity Shares |
Rs.10/- each |
Rs. 2580.400 Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
258043069 |
Equity Shares |
Rs.10/- each |
Rs. 2580.400 Millions |
RECONCILIATION OF NUMBER OF EQUITY SHARES
|
|
31.03.2013 |
|
|
|
No. of Shares |
Rs. in Millions |
|
Balance at the beginning of the year |
254,400,041 |
2546.300 |
|
Add : |
|
|
|
Shares alloted persuant to exercise of Employee Stock Option Plan |
- |
- |
|
Shares alloted to the shareholders of Amalgamated Company |
3410,528 |
34.100 |
|
Balance at the end of the year |
258,043,069 |
2580.400 |
RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO SHARES EQUITY SHARES:
The Company has one class of shares referred
to as equity shares having a par value of Rs.10 each. Each shareholder is
entitled to one vote per share held. The dividend proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual
General Meeting, except in case of interim dividend. In the event of
liquidation, the equity shareholders are eligible to receive the remaining
assets of the Company after distribution of all preferential amounts, in
proportion to their shareholding.
DETAILS OF SHARES HELD BY SHAREHOLDERS HOLDING MORE THAN 5% OF THE
AGGREGATE SHARES IN THE COMPANY
|
Particulars |
31.03.2013 |
|
Aura Securities Private Limited |
9,57,90,590 |
|
37.12% |
|
|
Life Insurance Corporation of India |
1,65,85,134 |
|
6.43% |
SHARES RESERVED
FOR ISSUE UNDER OPTIONS
Refer note 36 for
details of shares to be issued under options
Shares allotted as
fully paid up pursuant to contract without payment being received in cash (during
5 years immediately preceding March 31, 2013) 34,10,528 Equity Shares of Rs.10
each were issued during the year to the erstwhile shareholders of Arvind
Products Limited pursuant to the Scheme of
Amalgamation without payment being received in cash.
PROPOSED DIVIDEND
The final dividend proposed for the year is as follows:
|
Particulars |
31.03.20123 |
|
On Equity Shares of Rs.10/- each |
|
|
Dividend per Equity Share (Rs.) |
1.65 |
|
Percentage of Dividend Proposed |
16.50% |
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 |
2580.400 |
2580.400 |
2544.000 |
|
(b) Reserves & Surplus |
20414.700 |
17579.600 |
15411.100 |
|
(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) |
22995.100 |
20160.000 |
17955.100 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
9471.000 |
7073.500 |
7937.800 |
|
(b) Deferred tax liabilities (Net) |
128.200 |
128.200 |
128.200 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
119.800 |
495.100 |
71.800 |
|
Total Non-current Liabilities (3) |
9719.000 |
7696.800 |
8137.800 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
10155.400 |
8959.500 |
8058.900 |
|
(b) Trade payables |
6644.800 |
5983.200 |
6040.400 |
|
(c) Other current
liabilities |
2453.300 |
2462.600 |
2355.300 |
|
(d) Short-term provisions |
869.600 |
945.700 |
44.500 |
|
Total Current Liabilities (4) |
20123.100 |
18351.000 |
16499.100 |
|
|
|
|
|
|
TOTAL |
52837.200 |
46207.800 |
42592.000 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
23340.700 |
22626.100 |
19780.500 |
|
(ii) Intangible Assets |
55.900 |
64.500 |
69.400 |
|
(iii) Capital
work-in-progress |
2003.200 |
1791.000 |
807.800 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
4928.600 |
3371.100 |
3263.400 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
2359.300 |
1892.100 |
1523.000 |
|
(e) Other Non-current assets |
5.400 |
20.400 |
91.200 |
|
Total Non-Current Assets |
32693.100 |
29765.200 |
25535.300 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
8779.600 |
7284.200 |
6991.600 |
|
(c) Trade receivables |
4424.200 |
4055.500 |
5636.300 |
|
(d) Cash and cash
equivalents |
1506.000 |
393.700 |
290.900 |
|
(e) Short-term loans and
advances |
2502.400 |
2147.500 |
2876.300 |
|
(f) Other current assets |
2931.900 |
2561.700 |
1261.600 |
|
Total Current Assets |
20144.100 |
16442.600 |
17056.700 |
|
|
|
|
|
|
TOTAL |
52837.200 |
46207.800 |
42592.000 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
37802.900 |
34941.200 |
26832.600 |
|
|
|
Other Income |
934.600 |
1358.100 |
520.700 |
|
|
|
TOTAL (A) |
38737.500 |
36299.300 |
27353.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials and accessories consumed |
16412.200 |
15687.600 |
|
|
|
|
Purchases of Stock in Trade |
844.400 |
374.000 |
|
|
|
|
Project Expenses |
280.700 |
136.000 |
|
|
|
|
Changes in inventories of finished goods, work-in-progress and
stock-in-trade |
(1660.100) |
35.700 |
22971.400 |
|
|
|
Employee benefits expense |
4422.200 |
3605.100 |
|
|
|
|
Other expenses |
11636.600 |
10090.400 |
|
|
|
|
Extraordinary Items |
0.000 |
(2518.000) |
|
|
|
|
TOTAL (B) |
31936.000 |
27410.800 |
22971.400 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
6801.500 |
8888.500 |
4381.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2684.400 |
2702.500 |
1872.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
4117.100 |
6186.000 |
2509.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
1504.900 |
1305.100 |
1161.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
2612.200 |
4880.900 |
1348.000 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
0.000 |
538.600 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
2612.200 |
4342.300 |
1348.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
7996.700 |
4501.200 |
3144.200 |
|
|
|
|
|
|
|
|
|
Add |
Profit of
Amalgamated Company |
0.000 |
16.200 |
0.000 |
|
|
|
|
|
|
|
|
|
Less |
Amount
transferred to Statement of Profit and Loss
on account of Amalgamation |
0.000 |
563.100 |
0.000 |
|
|
|
|
|
|
|
|
|
Add |
Transfer from
Debenture Redemption Reserve |
0.000 |
0.000 |
9.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General
Reserve |
200.000 |
0.000 |
0.000 |
|
|
|
Proposed Dividend
on Equity Shares |
425.800 |
258.000 |
0.000 |
|
|
|
Tax on Dividend |
72.400 |
41.900 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
9910.700 |
7996.700 |
4501.200 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods on FOB basis |
14449.400 |
14871.000 |
11343.800 |
|
|
|
Better Cotton Grant |
25.200 |
24.500 |
3.000 |
|
|
TOTAL EARNINGS |
14474.600 |
14895.500 |
11346.800 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
929.100 |
1577.200 |
485.800 |
|
|
|
Dyes and Chemicals, Stores and Spare Parts |
2870.500 |
612.700 |
665.400 |
|
|
|
Raw Materials and Accessories |
738.700 |
1233.700 |
552.200 |
|
|
TOTAL IMPORTS |
4538.300 |
3423.600 |
1703.400 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
- Basic |
10.12 |
16.83 |
5.64 |
|
|
|
- Diluted |
10.12 |
16.83 |
5.63 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2013 |
30.09.2013 |
31.12.2013 |
|
Type |
1st Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
10932.700 |
11928.900 |
12080.000 |
|
Total Expenditure |
9067.000 |
9871.300 |
1,0057.000 |
|
PBIDT (Excl OI) |
1865.700 |
2057.600 |
2023.000 |
|
Other Income |
244.200 |
199.100 |
174.200 |
|
Operating Profit |
2109.900 |
2256.700 |
2197.200 |
|
Interest |
710.600 |
762.200 |
705.600 |
|
Exceptional Items |
(117.500) |
(40.100) |
0.000 |
|
PBDT |
1281.800 |
1454.400 |
1491.600 |
|
Depreciation |
376.400 |
402.600 |
402.900 |
|
Profit Before Tax |
905.400 |
1051.800 |
1088.700 |
|
Tax |
111.900 |
119.000 |
150.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
793.500 |
932.800 |
938.700 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
793.500 |
932.800 |
938.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
6.74 |
11.96 |
4.93 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
6.91
|
13.97 |
5.02 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.69
|
11.89 |
3.50 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11
|
0.24 |
0.08 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.85
|
0.80 |
0.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.00
|
0.90 |
1.03 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
2544.000 |
2580.400 |
2580.400 |
|
Reserves & Surplus |
15411.100 |
17579.600 |
20414.700 |
|
Net
worth |
17955.100 |
20160.000 |
22995.100 |
|
|
|
|
|
|
long-term borrowings |
7937.800 |
7073.500 |
9471.000 |
|
Short term borrowings |
8058.900 |
8959.500 |
10155.400 |
|
Total
borrowings |
15996.700 |
16033.000 |
19626.400 |
|
Debt/Equity
ratio |
0.891 |
0.795 |
0.854 |
YEAR ON YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
26832.600 |
34941.200 |
37802.900 |
|
|
|
30.219 |
8.190 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR) |
(INR) |
(INR) |
|
Sales |
26832.600 |
34941.200 |
37802.900 |
|
Profit |
1348.000 |
4342.300 |
2612.200 |
|
|
5.02% |
12.43% |
6.91% |
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 |
No |
|
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 |
UNSECURED LOAN
|
PARTICULARS |
31.03.2013 (Rs.
in Millions) |
31.03.2012 (Rs.
in Millions) |
|
Long-term
Borrowings |
|
|
|
From Financial Institutions |
25.800 |
25.800 |
|
Short-term
borrowings |
|
|
|
Under Buyer’s Credit Arrangemen |
498.700 |
380.700 |
|
Intercorporate
Deposits |
|
|
|
From Related Parties |
2.600 |
4.200 |
|
From Others |
18.600 |
15.000 |
|
Total |
545.700 |
425.700 |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10453218 |
06/09/2013 |
1,350,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND,
PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B86723749 |
|
2 |
10429849 |
14/05/2013 |
750,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND,
PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B76623339 |
|
3 |
10419190 |
22/03/2013 |
1,350,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, "PARAMSID |
B73026858 |
|
4 |
10419216 |
22/03/2013 |
1,000,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, "PARAMSID |
B73034290 |
|
5 |
10393746 |
29/11/2012 |
1,000,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND FLR,
BOMBAY DYEING MILLS COMPOUND,
PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B64792104 |
|
6 |
10388441 |
30/10/2012 |
250,000,000.00 |
ICICI BANK
LIMITED |
ZONAL HOUSE, 9TH
FLOOR, JMC HOUSE, OPP. PARIMAL G |
B62762398 |
|
7 |
10381413 |
17/10/2012 |
800,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG
BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B60039781 |
|
8 |
10376483 |
17/09/2012 |
550,000,000.00 |
AXIS TRUSTEE
SERVICES LIMITED |
AXIS HOUSE, 2ND
FLR, BOMBAY DYEING MILLS COMPOUND,
PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
B58096124 |
|
9 |
10377372 |
28/08/2012 |
1,000,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, "PARAMSID |
B58435439 |
|
10 |
10363118 |
08/06/2012 |
535,000,000.00 |
STATE BANK OF
INDIA |
MID CORPORATE
GROUP, COMMERCIAL BRANCH, 1ST FLOOR,
"PARAMSIDDHI", NR. MAHAKANT BLDG., ELLSBRIDGE, |
B42681239 |
* Date of charge modification
COMPANY BACKGROUND
Subject is one of the India’s leading vertically integrated textile
companies with the presence of almost eight decades in this industry. It is
among the largest denim manufacturers in the world. It also manufactures a
range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and
Jeans and Shirts Garments. Arvind, through its subsidiary company Arvind
Lifestyle Brands Limited, is marketing in India the branded apparel under
various brands and is also licensee in India for various international brands.
The brands portfolio of the company includes International brands like Arrow,
US Polo, Izod, Elle, Cherokee etc. It also operates apparel Value Retail stores
MEGAMART. It also operates the specialty retail stores under the licensing
arrangement with international brands of Debanhams and Next. Arvind also has
the presence in Telecom business directly and through joint venture companies.
Recently Arvind has made foray in to Technical Textiles on its own and in joint
venture with leading global players.
OPERATIONS
The macroeconomic environment posed many challenges for the company
during the year. On domestic front, stagnant economy, high inflation and higher
interest rates dampened the consumer sentiments. On global front Euro Zone
continued to be in turmoil. On the top of challenging macroeconomic scenario,
Their company witnessed unprecedented event of strike at two of its
manufacturing plants in the month of June, 2012 leading to loss of production.
It is heartening to note that despite such a challenging environment, Their
Company has closed the financial year 2012-13 with 8% growth in sales and 7%
growth in Operating Earnings before Interest, Depreciation and Taxes.
(Operating EBITDA). PAT (excluding Exceptional Income) has shown a growth of
11% compared to the previous year.
The growth in revenue was mainly led by woven fabric division which
registered growth of 28% in volume and 30% in revenue. The Operational
Excellence Drive to improve the productivity has resulted into higher operating
margins for woven business. While denim fabric volume was lower by 7% on
account of loss of production during strike period, it has maintained its
profitability under highly competitive market scenario. Denim Business
continues with its strategy of improving product and customer mix so as to
achieve higher contribution per meter.
FINANCE
The Company has repaid the installments of Term Loans amounting to
Rs.1950.000 Millions during the current year.
The Company has also made fresh borrowings of Rs.4340.000 Millions for
funding capital expenditure and other requirements. Long Term Debt of the
Company stands to Rs.11040.000 Millions as on 31st March, 2013.
MANAGEMENT
DISCUSSION AND ANALYSIS
OVERVIEW OF THE
ECONOMY
The year 2012-13 in India was in many ways that of a stagnant economy –
low GDP growth, steadily low industrial output, high inflation, high interest
rates, depreciated currency and conservative policy reforms. However, that can
still be construed as good news on two fronts: (a) It did not decline much
further beyond the FY2011-12 levels and (b) that sets a low statistical base
for things looking to revive in FY2013-14.
The year saw the GDP growth decline to near-5% level, the headline CPI
rate stayed above 10% for good part the year, IIP growth flattened and overall
sentiments weak in the business society as well as among consumers. The
conflicting challenges of managing large fiscal deficits while trying to boost
economic growth have seen the government and the RBI looking to push for
several reforms, though there is still some way to go before those reforms are
effectively implemented.
Going forward, the expectation for FY2013-14 is that of gradual revival.
While some elements of economic pressures would continue to persist, the larger
picture points to an improvement over the past year. A major change though,
either positive or negative, is seen as unlikely within a year, especially
given that the general elections are scheduled for the next year. The year is
expected to be characterized by a gradual revival in the industrial output,
with stable activity in the agri-sector and services. Inflation is likely to
ease gradually, but the trade-off in balancing between growth and inflation
could see a cautious growth oriented monetary environment.
Some improvement can be expected in the CAD and the continued flows of
foreign capital is expected to keep the Rupee largely stable in mid-fifties –
assuming that geo-political tensions do not deteriorate and global economic
conditions remain where they are, with the recovery process also being
cautious. Overall, it is expected that growth will bottom in H1 2013 as
domestic and foreign headwinds ease and that GDP growth could average between
5-5.5% this year before picking up to 7%+ in 2014. However, apart from the
immediate sentiments being moderate for the next year or two, the long-term
India growth story – built on the rising Indian middle-class that will be both
younger and richer in the years to come – continues to remain extremely strong.
This is visible in the unabated commitment of several large Indian and
multi-national corporations to not only sustain but aggressively build position
of strength in the Indian markets.
The company also strongly believes in the long-term India growth and
consumption story and is taking calculated steps to create strong businesses
that would see a major pivoting once an economic upturn comes around. During
the current moderate growth phase however, the strategy is to follow a cautious
growth approach that strengthens the businesses fundamentally while also
exploiting the current value creation opportunities.
INDIAN TEXTILE
INDUSTRY
The Indian textile industry is one of the leading textile industries in
the world, steadily improving in its capabilities and competitiveness vis-à-vis
the other global economies. It chiefly consists of ginning, spinning, weaving
and processing industries and plays a major role in the country’s economy. It
contributes nearly 14% of the total industrial production of the country,
nearly 4% percent to the country’s GDP and accounts for about 17% of its total
foreign exchange earnings through textile exports. Further, it is also the
second largest employer in the country, only after agriculture, currently
employing more than 35 million Indians directly and almost twice as many
through the allied industries.
The industry operates in several segments, including cotton textiles,
silk textiles, woollen textiles, jute and coir, man-made textiles and readymade
garments. The total Indian textile industry size, including readymade garments,
was estimated to be Rs.4.9 lakh Crores (nearly USD 90 Bn) in 2012, projected to
grow over the next 10 years at a CAGR of 9-10%, to reach Rs.10 lakh Crores
(nearly USD 200 billion) by 2020. This constitutes of 65% domestic market and
35% exports and the mix is expected to largely remain the same given the
balance of strong domestic consumption growth and increasing global
competitiveness.
The industry saw low exports growth in 2012, due to weaker international
demand partly compensated by a weak Indian Rupee. However, over the next 3-5
years, India’s share of global textile exports is poised to increase from
current 4% to around 7%, driven by the improving competitiveness vis-à-vis
other major exporters like China and Turkey.
The US and the EU nations account for almost two-thirds of India’s
textile exports. The other major destinations are Bangladesh, Turkey, Japan,
South Korea, Canada, Saudi Arabia and UAE. In order to keep the textile
industry competitive and world class, there is a periodic need for installing
new machinery, adopting latest technology and improving availability of
accessories. Overall, going forward, the exports market is expected to continue
growing at 10% CAGR for the next decade.
THE TECHNICAL
TEXTILES SEGMENT
Globally, the technical textiles segment is an immense opportunity, with
the worldwide industry size estimated at USD 130 Bn. The size of this segment
in India is currently pegged at Rs.70,000 Cr (nearly USD 13 Bn), contributing
nearly 15% to the total domestic textile market. This segment is characterized
by world-class manufacturing capabilities technology skill-sets and is expected
to show strong growth in India.
COTTON
For the current cotton season (Oct’12 – Sep’13), the Cotton Advisory
Board has estimated the domestic acreage at 11.600 Millions hectares leading to
a production of 33.000 Millions bales, as against 35.300 Millions bales from
12.200 Millions hectares in 2011-12. This coupled with high exports demand for
cotton as well as yarn and low opening stock of cotton is expected to put
pressure on the price of domestic cotton and yarn.
Cotton yarn spread continues to remain high with robust demand in domestic
as well as overseas market. Certain international trends in cotton have given a
boost to cotton exports and making cotton fibre and yarn more expensive in the
domestic market. Higher cotton prices in China have prompted the Chinese
textile players to import yarn (3% duty on yarn import compared to 40% duty on
cotton import based on decided quota).
Turkey has removed duty on Indian cotton yarn imports and Turkey being
the gateway to Europe, would lead to increased exports of yarn from India.
Also, with power shortage in Pakistan and Bangladesh, certain global demand is
shifting to India. Provisional data as available with DGFT shows that the
current cotton season registered a whopping 51% YoY (Oct-Feb) increase in
registration of contract for export of cotton yarn. Exports of cotton bales was
at all time high during last season and had also impacted closing stock which
is lowest point compared to last four years’ stock.
TEXTILE OUTLOOK
In the mid-long term, the Indian textile industry is expected to grow
strongly with growth being balanced from both domestic consumption as well as
exports demand. In the near-term, domestic demand would depend on the
macro-economic factors that are expected to gradually revive in FY2013-14. On
exports front, there are both positive and negative factors. Positive factors
include the weak currency and decreasing cost competitiveness of China that are
likely to give positive impetus to the Indian exports. At the same time,
factors like slowdown and uncertainty in the global markets, volatile foreign
exchange rates and increase in cotton and yarn prices are likely to negatively
affect growth and profitability for the textile exports.
The company is looking to take a cautious growth approach in the textiles
business – protecting margins through moving into more premium and
differentiated space, as well as operational measures like greater share of
in-house spinning by leveraging the central and state government support on
investments and gradual addition of capacities depending on demand upturn. For
garmenting, the focus is on strategically increasing share of vertical business
with the global as well as Indian brands, providing both enhanced business
growth as well as demand security for the fabric manufacturing businesses. The
company is also looking to tactically leverage Bangladesh for greater
competitiveness in the global supply chain, through partnership routes. Lastly,
the company is looking to place selective large bets in the technical textiles
segment to create breakthrough growth opportunities for the future.
INDIAN APPAREL
RETAIL MARKET
The Indian consumption growth story needs no explanation. Despite the
slow recent economic growth translating into weak consumer sentiments and
demand trends, the larger story of growth of organized retail in India is
expected to continue to gain momentum, with the additional boost of Ecommerce
retailing (commonly known as E-tailing). The total size of India’s retail
market is pegged at USD 490 Bn in 2012 (Source: Technopak), of which organized
retail has a low share of ~7% at USD 34 Bn, while e-Tailing is currently a
nascent model at ~0.1% or USD 0.6 Bn.
The overall retail market expected to grow at 10-12% over the next
decade, with an expected market size of USD 1440 Bn by 2021 (source:
Technopak). The more important trend though, is that while the share of
organized retail in total retail has grown over the last 4-5 years from ~5% in
2007 to reach ~7% by 2012, it is expected that the combined growth of brick-and-mortal
retailing and e-tailing is expected to take this share to ~20% by 2021.
That would translate into a compounded annual growth rate of over 25%
over a decade!
Apparel as a category constitutes the largest share of organized
retailing at ~30%, driven by factors like higher brand preference in apparel
compared to categories like ‘Food and Grocery’ where fresh availability is a
more primary consumer need. Apparel is also a category that is more promptly
being adopted by the internet buyer, compared to other large retail categories.
Hence both trends put together, apparel is expected to be a large part of the
India organized retail opportunity in 2021, both in the brick and format as
well as in e-tailing.
In the shorter term, organized apparel retail witnessed some impact of
softened consumer sentiments during the last year, reflecting in slower
like-to-like (LTL) sales growth in the apparel stores and the overall industry
growth of 4-5% in value terms over FY12-13. However, the gradual revival expected
in the economy in FY13-14, along with some major policy reforms in this sector,
will facilitate improved profitability of the existing brands as well as
promote entry of new brands that will further expand the market. Three specific
drivers of recovery in apparel demand in FY13-14 include (a) Restoration of
zero excise duty on readymade garments and made ups announced in the Union
Budget 2013-14 (b) Faster clearance of investment proposal of foreign branded
retail and (c) Expected revival in the overall economy in FY13-14 that will
open up the unspent demand for apparels.
Across the various apparel segments, menswear will continue to be the
largest segment, contributing to ~35% of the total apparel market, while
kidswear is expected to grow faster due to new brand offerings in this hitherto
unexploited market segment.
The company operates in the branded apparel space through a diverse
portfolio of owned and licensed international brands that have seen strong
growth momentum in the past. The strategy has been to create several large and
high-growth ‘Power brands’ (like Arrow, US Polo, Tommy Hilfiger and Flying
Machine) and The company has seen with experience that these brands start to
yield very healthy bottomlines and returns once they reach a critical size.
With many other strong growth brands in the portfolio (including those acquired
recently) like Gant, Nautica, Elle, Billabong, Ed Hardy, Hanes and Wonderbra,
the Arvind approach would be to gradually make these brands the next set of
‘Power brands’, providing significant topline growth as well as healthy
bottomlines. While menswear market, being the largest and most attractive
branded apparel space, would continue to be dominant in the Arvind portfolio,
other important and attractive segments like women, kids and innerwear are also
being emphasized to grow their share of the business portfolio and align it
with the market growth trends.
The company operates in the retail space through its MegaMart brand of
stores that have undergone a major transformation in business model over the
last year to be repositioned as a value format and the strategy has also
started to deliver the expected results in terms of improved profitability. The
company has also launched its own brand of ‘Arvind Stores’ to target the
attractive domestic market for fabric retail and custom clothing. With
continued improvements in the existing formats and the addition of specialty
store formats like Debenhams and Next, Arvind will be looking to become a
leading apparel retail player in India and also strive to bring newer formats
to the Indian consumer and offer them differentiated products and retail
experience.
RESULT REVIEW
The macroeconomic environment posed many challenges for the company
during the year. On domestic front, stagnant economy, high inflation and higher
interest rates dampened the consumer sentiments. On global from Euro zone
continued to be in turmoil. On the top of challenging macroeconomic scenario,
Their company witnessed unprecedented event of strike at its Naroda plant in
the month of June 2012 leading to loss of production. It is heartening to note
that despite such a challenging environment, Their Company has closed the
financial year 2012-13 with 8% growth in sales and 7% growth in Operating
Earnings before Interest Depreciation and Taxes. (Operating EBITDA). PAT
(excluding Exceptional Income) has shown a growth of 11% compared to the
previous year.
BUSINESS REVIEW
AND DEVELOPMENTS
DENIM
The performance of Denim Division was impacted on account of Strike by
the workmen. Due to Strike, there was a loss of Production of 4.3 Mn Mtrs which
resulted into 7% reduction in volume for the year. It is highly satisfying to
note that Denim Division could maintain profitability despite there being
addition in Denim Capacities by about 250 Mn Mtrs in India which made the
markets highly competitive. Denim Business continues with its strategy of
improving Product and Customer Mix so as to achieve higher Contribution per
meter.
WOVEN FABRICS
During the Year, Company expanded the Capacity of Woven Fabrics by 12 Mn
Mtrs. On account of this expansion, the Woven Business has seen growth of 28%
in volume and 29% in revenue. It is heartening to note that there is
significant increase in businesses with the large global as well as local
customers like GAP, Levis etc. Further, the Operational Excellence Drive to
improve the productivity has resulted into higher Operating Margins for Woven
business.
OUTLOOK
The Company is witnessing strong demand in the international markets
especially for Wovens. However domestic retail market is sluggish which is
likely to keep growth in the Brands and Retail business slow. The sluggish
retail demand may affect the growth of MegaMart. At the same time the brands like
Arrow, US Polo and Tommy Hilfiger continue to show lot of promise for growth.
The newer brands added during the last year are also expected to grow strongly,
though on a smaller base, and would provide additional growth to the business.
Under the above scenario, the Company is expecting overall revenue
growth of over 20% for FY2013-14, on account of volume growth in both Textiles
and Brands and Retail. The Textiles business may achieve growth in the 12-15%
range, whereas Brands and Retail business is expected to grow strongly at 25%+.
The company expects that the overall margins for the coming year will be
maintained. Margins for the Textiles businesses may improve marginally due to
improved pricing and greater scale and operational efficiency, while margins
for the Brands and Retail businesses may fall slightly due to higher
investments in marketing and distribution for the newly acquired brands.
The Strategic Help Alliance for Relief to Distressed Area (SHARDA) Trust
and Narottam Lalbhai Rural Development Fund (NLRDF) are the company’s arms for
carrying out the CSR Programmes. SHARDA and NLRDF have been active in improving
the quality of life of the urban poor and rural poor. During 2012-13, a
definitive step has been taken by launching a study for collecting information
of the workforce and their family members to design programmes for them.
SHARDA TRUST’S
PROGRAMMES
Arvind Limited established SHARDA (Strategic Help Alliance for Relief to
Distressed Areas) Trust in 1995 with a purpose of helping the urban poor by
upgrading their quality of life. Besides improving infrastructure facilities in
distressed areas, providing healthcare facilities and helping the people
upgrade their skills to get well paying jobs, SHARDA trust is now focussing on
providing quality education to students studying in Municipal Schools since
2006. These educational facilities are being provided by means of an
association with local Government, the Ahmedabad Municipal School Board.
SHARDA Trust is working with about 1000 students from class V-XII
through ‘Gyanda Education Programme’. Education programme includes organised
academic support as well as grooming students on social, cultural and personal
aspects. Year 2012-13 was especially important for Trust as the first batch is
completing class XII. These students will now be going for higher and
professional education and subsequently start earning which will ensure that it
is the last generation in poverty for them, a cherished dream that the Trust
and the students have shared together. Most encouraging incidents are of those
few parents whose one child (all girls) is studying with us in Municipal School
and the other child (all boys) is in private school. After noticing the
progress of their girls, the parents decided to withdraw their children from
private school and got them admitted in Municipal School to be part of Gyanda
Education programme. They consider this as huge recognition of Trust’s efforts
for bringing a small but strong social change. Gyanda’s total enrolment is
poised to reach about 1500 students by 2015-16 as Their conversion from primary
to secondary has improved. The Trust does plans to initiate new Gyanda Centres.
Beside school education, Trust conducted Basic Computer Familiarization
Programme for 250 children, housewives, working women and working and
non-working men. In addition, about 100 youth were trained for Basic English
Programme. The Trust organised two ‘Yoga Shibirs’ for the wellbeing of people
in community around Their Naroda premises during 2012-13. This was conducted by
Swami Adhyatmanandji of the Sivananda Ashram, Ahmedabad. Both the camps were
attended by about 300 people in each camp.
Towards end of 2012, the Trust initiated ambitious plan to collect
comprehensive information about Arvind’s workers and their family members
related to education, health, housing and contact information and thereby plan
welfare and capacity building initiatives to enhance quality of life. For doing
so, a Workers’ Information System was designed with provisions for generating
intended reports. All the information was collected online. As of March 2013,
first set of study with over 7000 workers has been completed in Ahmedabad
region and based on the findings suggested initiatives were presented to the
top management. 2013-14 will witness initiation of activities in Ahmedabad
region and expanding the scope of study to Santej and Bangalore regions to
cover complete workforce.
These activities and programmes have opened up avenues for expansion of
the Trust’s initiatives and for undertaking newer initiatives.
NLRDF’s Programmes
Established in 1978 as Public Charitable Trust, NLRDF is the rural CSR arm
of Arvind Limited. NLRDF directly intervenes at the village level with the
strategy of linking the government programmes with the rural poor and thereby
increasing the efficiency and the effectiveness of the delivery process.
The year mainly witnessed programmes for skill upgrading for livelihood
promotion, economic empowerment of widows and programme for HIV/AIDS awareness
and prevention.
Specifically, 75 youngsters from BPL families received training for
mason work and tool kit for same was given to them to ensure earnings. NLRDF
trained 144 Female Sex Workers and their family members in different skill
up-gradation initiatives. Out of which, 111 women received a two months
training for Cutting and Tailoring. They got sewing machines at token cost to
ensure earnings. Other 33 women were trained for applying Mehandi.
NLRDF’s entrepreneurship programmes for widows have its operations in 20
districts of Gujarat. It has trained about 11000 widows in last 6 years.
During 2012-13, more than 3000 widows were trained. Each one of them
received a kit of their choice worth about Rs.5000 for their livelihood. Newly
acquired confidence to step out of their houses which they could not think of
earlier is the noticeable outcome from this programme. Few selected needy and
working widow entrepreneurs are being financially supported for the expansion
of their current business.
Another programme worth mentioning is on HIV/AIDs control. Intervention
includes providing services like Behaviour Change Communication, Counseling,
STD treatment and creating enabling environment and referral and linkages to
core population. This has brought significant change in their practice and
behaviour. A workshop on ‘Awareness on HIV/AIDS-prevention and control’ was
also organized for industrial workers in Ahmedabad which was attended by about
500 people.
Under Mamta Taruni Programme, 860 non-school going adolescent girls from
18 villages were identified. They are trained for nutrition awareness, personal
hygiene, health care etc. A state level programme on the occasion of
International Women Day 2013 was celebrated on 8th March 2013 at
Khedbrahma. Around 2500 women from surrounding villages participated in this
one day event and experts shared with them information on their legal rights,
education etc.
Subject, through SHARDA and NLRDF aspires to help the poor in urban and
rural settings through its programmes and believes that programmes of social
renewal with a business approach will bring lasting change in society.
CONTINGENT LIABILITIES
(Rs. in Millions)
|
CONTINGENT LIABILITIES (to the extent
not provided for) |
31.03.2013 |
31.03.2012 |
|
Bills Discounted |
1175.900 |
1114.000 |
|
Claims against the Company not acknowledged as debts |
78.200 |
85.500 |
|
Guarantees given by the Banks on behalf of the Company |
694.800 |
590.000 |
|
Guarantees given by the Company to Banks on behalf of
Subsidiaries/Joint Ventures |
3989.900 |
3558.300 |
|
Disputed Demands in respect of |
|
|
|
Excise/Custom Duty |
288.500 |
308.300 |
|
Sales Tax |
203.700 |
203.700 |
|
Income Tax |
190.400 |
181.100 |
|
Service Tax |
8.400 |
11.900 |
FIXED ASSETS
Tangible Assets
·
Leasehold Land
·
Own Assets
·
Freehold Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipments
·
Leasehold Improvements
·
Vehicles
Intangible Assets
·
Own Assets
·
Patent and Technical
Knowhow
·
Computer Software
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED 31ST DECEMBER 2013
(Rs. in millions)
|
Sr. |
Particular |
Quarter Ended |
Nin Month Ended |
|
|
No. |
||||
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
|
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
|
1 |
Income from Operations |
|
|
|
|
|
Net Sales |
12123.800 |
12378.700 |
35544.800 |
|
|
Other Operating Income |
(43.800) |
(449.800) |
(603.200) |
|
|
Net Sales/Income from Operations |
12080.000 |
11928.900 |
34941.600 |
|
|
|
|
|
|
|
2 |
Expenditure |
|
|
|
|
|
Cost of Material Consumed |
5337.800 |
5312.400 |
15507.800 |
|
|
Purchase of Stock In Trade |
191.900 |
198.900 |
584.300 |
|
|
Project Expenses |
19.900 |
12.600 |
57.700 |
|
|
Change in Inventories of Finished Goods, Work-In-Progress and Stock In
Trade |
(186.700) |
(314.000) |
(749.400) |
|
|
Employee Benefits Expenses |
1284.300 |
1314.600 |
3831.200 |
|
|
Depreciation and Amortization Expenses |
402.900 |
402.600 |
1181.900 |
|
|
Power and Fuel |
1025.600 |
1001.500 |
3021.400 |
|
|
Stores Consumption |
947.400 |
909.000 |
2709.200 |
|
|
Other Expenses |
1430.500 |
1336.400 |
3906.800 |
|
|
Foreign Exchange Loss / (Gain) |
(28.100) |
99.900 |
91.900 |
|
|
f) Total |
10425.500 |
10273.900 |
30142.800 |
|
|
|
|
|
|
|
3 |
Profit From Operations before Other Income, Interest and Exceptional
Items (1-2) |
1654.500 |
1655.000 |
4798.800 |
|
|
|
|
|
|
|
4 |
Other Income |
146.100 |
199.100 |
589.400 |
|
|
|
|
|
|
|
5 |
Profit Before Interest and Exceptional Items (3+4) |
1800.600 |
1854.100 |
5388.200 |
|
|
|
|
|
|
|
6 |
Interest |
705.600 |
762.200 |
2178.400 |
|
|
|
|
|
|
|
7 |
Profit After Interest but before Exceptional Items (5-6) |
1095.000 |
1091.900 |
3209.800 |
|
|
|
|
|
|
|
8 |
Exceptional Items |
(6.300) |
(40.100) |
(163.900) |
|
|
|
|
|
|
|
9 |
Profit from Ordinary Activities before Tax (7+8) |
1088.700 |
1051.800 |
3045.900 |
|
|
|
|
|
|
|
10 |
Tax Expense |
150.000 |
119.000 |
380.900 |
|
|
|
|
|
|
|
11 |
Net Profit from Ordinary Activities after Tax (9-10) |
938.700 |
932.800 |
2665.000 |
|
|
|
|
|
|
|
12 |
Extraordinary Item (net of expense) |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
13 |
Net Profit for the period (11-12) |
938.700 |
932.800 |
2665.000 |
|
|
|
|
|
|
|
14 |
Paid-up Equity Share Capital (Face Value of Rs.10/- Each) |
2580.400 |
2580.400 |
2580.400 |
|
|
|
|
|
|
|
15 |
Reserves Excluding Revaluation Reserve |
- |
- |
- |
|
|
|
|
|
|
|
16 |
Basic and Diluted Earning Per Share (EPS) (Rs.)-Not Annualised |
|
|
|
|
|
a) Basic and diluted EPS before extraordinary items |
3.64 |
3.61 |
10.33 |
|
|
b) Basic and diluted EPS after extraordinary items |
3.64 |
3.61 |
10.33 |
|
|
|
|
|
|
|
17 |
Public Shareholding |
|
|
|
|
|
-Number of Shares |
144934346 |
144642549 |
144934346 |
|
|
- Percentage of Shareholding |
56.16% |
50.05% |
56.16% |
|
|
|
|
|
|
|
18 |
Promoters and Promoter Group Shareholding |
|
|
|
|
|
a) Pledged/Encumbered |
|
|
|
|
|
- Number of Shares |
455000.000 |
455000.000 |
455000.000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of promoter
and promoter group) |
0.40% |
0.40% |
0.40% |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
0.18% |
0.18% |
0.18% |
|
|
|
|
|
|
|
|
b) Non Encumbered |
|
|
|
|
|
- Number of Shares |
112653723.000 |
112945520.000 |
112653723.000 |
|
|
- Percentage of Shares (as a % of the Total Shareholding of Promoter
and Promoter Group) |
99.60 |
99.60 |
99.60 |
|
|
- Percentage of Shares (as a % of the Total Share Capital of the
Company) |
43.66 |
43.77 |
43.66 |
|
Particulars
|
3 Months ended on March 31, 2013 |
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
23 |
|
Disposed of during the quarter |
23 |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES
1.
The limited review of above
unaudited financial results as required under Clause 41 of listing agreement
has been carried out by statutory auditors.
2.
The above results were reviewed by
the Audit Committee and taken on record by the Board of Directors at their
meeting held on January 30, 2014.
3.
Other Income for the quarter
includes profit on sale of land held for sale/fixed assets of Rs.3.800 Millions
(quarter ended September 30, 2013 profit of Rs.9.900 Millions, quarter ended
December 31, 2012 profit of Rs.67.500 Millions and year ended March 31, 2013
profit of Rs.422.500 Millions).
4.
Exceptional Item for the
quarter/period represents Retrenchment Compensation paid to workers retired
under Voluntary Retirement Scheme.
5.
Figures of the previous
quarter/year have been regrouped wherever necessary.
SEGMENT WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Millions)
|
Sl. No. |
|
Particulars |
Quarter Ended |
Nine Months Ended |
|
|
|
31.12.2013 |
30.09.2013 |
31.12.2013 |
||
|
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
|
Segment Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
Textiles |
11805.100 |
11703.700 |
34271.400 |
|
|
|
Brand and Retail |
187.600 |
142.200 |
455.600 |
|
|
|
Real Estate |
0.000 |
0.000 |
0.000 |
|
|
|
Others |
160.300 |
136.400 |
432.000 |
|
|
|
|
12153.000 |
11982.300 |
35159.000 |
|
|
|
Add: Other Unallocable Income |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
Less : Inter Segment Revenue (Net of Excise) |
73.000 |
53.400 |
217.400 |
|
|
|
|
|
|
|
|
|
|
Net Sales / Income
from Operation |
12080.000 |
11928.900 |
34941.600 |
|
|
|
|
|
|
|
|
2 |
|
Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
Textiles |
1867.000 |
1779.400 |
5141.600 |
|
|
|
Brand and Retail |
(29.000) |
(13.900) |
(28.900) |
|
|
|
Real Estate |
(0.800) |
(1.000) |
(7.000) |
|
|
|
Others |
10.100 |
05.900 |
14.100 |
|
|
|
Total |
1847.300 |
1770.400 |
5119.800 |
|
|
|
|
|
|
|
|
|
|
Less :Interest |
705.600 |
762.200 |
2178.400 |
|
|
|
Less : Other Unallocable Expenses |
53.000 |
(43.600) |
(104.500) |
|
|
|
|
|
|
|
|
|
|
Profit Before Extraordinary
Items and Tax |
1088.700 |
1051.800 |
3045.900 |
|
|
|
|
|
|
|
|
3 |
|
Capital Employed |
|
|
|
|
|
|
|
|
|
|
|
|
|
Textiles |
30172.700 |
30493.200 |
30172.700 |
|
|
|
Brand and Retail |
594.300 |
599.500 |
594.300 |
|
|
|
Real Estate |
62.200 |
77.400 |
62.200 |
|
|
|
Others |
383.700 |
380.100 |
383.700 |
|
|
|
Unallocable |
19584.400 |
18024.700 |
19584.400 |
|
|
|
Total Capital
Employed In Company |
50797.300 |
49574.900 |
50797.300 |
NOTE: The Company has considered “Real Estate” as a
reportable business segment from the first quarter. Hence the figures of
previous periods are regrouped.
NEWS:
ARVIND LTD Q4 NET UP 11.49%
THE COMPANY REGISTERED A 6.5%
INCREASE IN ITS STANDALONE REVENUE FOR THE FOURTH QUARTER AT RS 12840.000
MILLIONS
MAY 15, 2014
On the back of consistent growth in its
brands and retail business segment, Arvind Limited posted an 11.49 per cent growth in its
standalone net profit for the fourth quarter ended March 31, 2014. The company saw its Q4
standalone net profit for the fiscal year 2013-14 rise to Rs 948.900
Millions, up from Rs 85.11 for the corresponding period last fiscal
2012-13.
Based out of Ahmedabad, Arvind Limited is one of
the largest integrated textile and branded apparel players in the
country. The company registered a 6.5 per cent increase in its standalone
revenue for the fourth quarter at Rs.12839.600 Millions, from last year’s
Rs.12053.600 Millions. On consolidated basis, while its Q4 net profit
rose by 24.09 per cent at Rs.940.500 Millions, up from Rs.757.900 Millions, its
consolidate net income registered a 5.90 per cent growth at Rs.18790.800 Millions as against
last year’s Rs.17742.800 Millions for the said period.
What’s more, Arvind Limited’s board of directors
recommended a dividend of 23.5 per cent for fiscal 2013-14 as against 16.5 per
cent for the previous year.
According to Jayesh Shah, director and CFO of
Arvind Limited, the growth in net profit and revenue could be attributed to
growth in Arvind’s various business segments.
“The robust revenue growth is led by 37 per cent
growth in brands & retail business and 21 per cent growth in textile
business with operating profit margin expansions in both the businesses. Given
the all-round improvement in the performances of all the business verticals and
the growth momentum they have attained, we are hopeful to grow by 22-24 per
cent during the year 2014-15,” said Shah.
Further, Arvind witnessed a 38.34 per cent and
26.32 per cent growth in its yearly standalone net profit and net revenue at
Rs.3613.900 Millions and Rs.47754.800 Millions, respectively. For the
previous 2012-13, the same stood at Rs.2612.200 Millions and Rs.37802.900
Millions, respectively.
Meanwhile, on consolidated basis, the yearly net
profit of Rs.3538.900 Millions was up by 42.46 per cent for FY ‘14 as against
Rs.2484.100 Millions.
On the other hand, the company’s revenue grew by
29.65 per cent at Rs.68621.200 Millions as compared to Rs.52925.200 Millions.
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.58.59 |
|
|
1 |
Rs.98.66 |
|
Euro |
1 |
Rs.79.81 |
INFORMATION DETAILS
|
Information Gathered
by : |
PLK |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
TPT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
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 |
|
65 |
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.