MIRA INFORM REPORT
|
Report Date : |
11.11.2014 |
IDENTIFICATION DETAILS
|
Name : |
HIMATSINGKA SEIDE LIMITED |
|
|
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Registered
Office : |
10/24, Kumarakrupa Road, High Grounds, Bangalore – 560 001, Karnataka |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
23.01.1985 |
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Com. Reg. No.: |
08-006647 |
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Capital Investment
/ Paid-up Capital : |
Rs.492.286
Millions |
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|
|
CIN No.: [Company Identification
No.] |
L17112KA1985PLC006647 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
BLRH01939A |
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PAN No.: [Permanent Account No.] |
AAACH3507N |
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Legal Form : |
Public Limited Liability Company. The Company’s Shares are
Listed on the Stock Exchanges. |
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Line of Business
: |
Manufacturer
and Exporter of Fabric and Yarn Fabrics. |
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No. of Employees
: |
Not divulged |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Exist |
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Comments : |
Subject is an
established company having satisfactory track record. The rating
reflects company’s healthy financial risk profile marked by decent liquidity position
and fair profitability levels of the company. Trade relations
are fair. Business is active. Payment terms are reported to be usually
correct. The company can
be considered 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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
NEWS
Verdict Implications
: Apex court order may alter coal import dynamics. Traders go slow on talks
over coal supply contracts, uncertainty over cancellation of blocks weigh on
stocks.
Recent arrest of the
Chennai head of the Registrar of Companies, the ministry of corporate affairs
arm that ensures that companies file all the information required by the
Companies Act is the latest manifestation of a messy fight between a father and
his adopted son for the control of Rs 40000 mn business empire. The Central
Bureau of Investigation arrested Manumeethi Cholan after he accepted Rs 10
lakhs as bribe from M A M Ramaswamy, a CBI official said.
Central Bureau of
Investigation books Electrotherm for cheating Central Bank of Rs 4360 mn.
Infosys maintains
revenue guidance. COO Rao says attrition still an area of concern and it would
take a few more quarters to bring down levels to 13-15 %.
DHL to invest
Euro 100 mn in India over next 2 years. The firm has chosen India to pilot its
e-commerce business model for the Asia-Pacific region.
Blackstone may buy
stake in BlueRidge SEZ in line with the fund’s real estate strategy in India.
Kingfisher Airlines
Ltd grounded in October 2012 under the weight of heavy debt and accumulated losses,
recently approached the Delhi high court for relief in two separate cases. The
airline challenged a notice by Punjab & National Bank alleging that It had
wilfully defaulted on Rs 7700 mn of loans and sought more time to comply with
the requirements under the listing agreements with the Stock Exchanges.
OnMobile likely to
sack another 300 employees. The lay-offs follow a spate of senior-level exits
over the past two years, starting with of its founder. The overall lay-offs
could number around 600 and are driven by the need to cut costs, says a former
employee.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CRISIL |
|
Rating |
Long Term Rating: BBB+ |
|
Rating Explanation |
Moderate degree of safety and moderate credit risk. |
|
Date |
December 31, 2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short Term Rating: A2 |
|
Rating Explanation |
Moderate degree of safety and very high credit risk. |
|
Date |
December 31, 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
31-03-2014.
INFORMATION PARTED BY
|
Name : |
Ms. Rekha |
|
Designation : |
Accountant |
|
Contact No.: |
91-80-22378000 |
|
Date : |
11.11.2014 |
LOCATIONS
|
Registered Office/ Corporate Headquarter : |
10/24, |
|
Tel. No.: |
91-80-22378000 |
|
Fax No.: |
91-80-22378058/ 22378074 |
|
E-Mail : |
For enquiries on Drapery and Upholstery fabrics: seide@himatsingka.com For enquiries on Bed Linen products: linens@himatsingka.com For enquiries on atmosphere: atmosphere@himatsingka.com For Investor related enquiries: investors@himatsingka.com |
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Website : |
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Factory 1 : |
Drapery
and Upholstery Unit: 23A, KIADB Industrial Area, Veerapura
Village, Doddaballapur Taluk, Bangalore District, Karnataka, India |
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|
|
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Factory 2 : |
Bed Linen Unit: Plot No.1, SEZ, Textile
Specific, KIADB Industrial Area, Gorur Road, Hanumanthapura P O, Hassan – 573
201, Karnataka, India |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Dilip J.
Thakkar |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. A.K.
Himatsingka |
|
Designation : |
Vice Chairman |
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|
Name : |
D.K. Himatsingka |
|
Designation : |
Managing
Director |
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|
Name : |
Mr. Aditya Himatsingka |
|
Designation : |
Executive
Director |
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|
Name : |
Mr. Shrikant Himatsingka |
|
Designation : |
Executive Director |
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|
|
|
Name : |
Dr. K.R.S.
Murthy |
|
Designation : |
Director |
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|
|
|
Name : |
Mr. A.K.
Dasgupta |
|
Designation : |
Director |
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|
Name : |
Berjis M. Desai |
|
Designation : |
Director |
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|
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|
Name : |
Mr. Rajiv
Khaitan |
|
Designation : |
Director |
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|
|
|
Name : |
Samuel Joseph Jebaraj |
|
Designation : |
Nominee Director
of Export-Import Bank of India [Upto 10.01.2014] |
KEY EXECUTIVES
|
Name : |
David Greenstein |
|
Designation : |
President and Chief Executive Officer - Himatsingka America Inc.,
U.S.A |
|
|
|
|
Name : |
Pradeep K.P. |
|
Designation : |
President – Finance & Group Chief Finance Officer |
|
|
|
|
Name : |
Vasudevan V. |
|
Designation : |
President – Manufacturing Operations |
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|
Name : |
Y. R. Wilson Maria Doss |
|
Designation : |
President – Corporate HR (India) |
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|
|
Name : |
Jayshree Poddar |
|
Designation : |
Head of Design |
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|
|
|
Name : |
Mr. Ashok Sharma |
|
Designation : |
Company Secretary |
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Audit Committee
: |
Dilip J. Thakkar – Chairman Rajiv Khaitan – Member Dr. K.R.S. Murthy – Member |
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|
|
|
Shareholders /
Investors Grievance Committee : |
Rajiv Khaitan – Chairman A.K. Himatsingka – Member Dr. K.R.S. Murthy – Member |
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|
|
|
Investment
Committee : |
D.K. Himatsingka – Member A.K. Himatsingka – Member Rajiv Khaitan – Member |
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Share Transfer
Committee : |
A.K. Himatsingka – Member D.K. Himatsingka – Member Aditya Himatsingka – Member |
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Remuneration
Committee : |
Rajiv Khaitan – Chairman Dr. K.R.S. Murthy – Member Dilip J Thakkar – Member |
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Risk Management
Committee : |
Dr. K.R.S. Murthy – Member Aditya Himatsingka – Member Shrikant Himatsingka – Member |
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QIP Committee : |
Dr. K.R.S. Murthy – Member D.K. Himatsingka – Member Aditya Himatsingka – Member Shrikant Himatsingka – Member |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding
as a % of Total No. of Shares |
|
|
||
|
(A)
Shareholding of Promoter and Promoter Group |
||
|
|
|
|
|
|
37062059 |
37.64 |
|
|
17891420 |
18.17 |
|
|
54953479 |
55.81 |
|
|
|
|
|
|
1237800 |
1.26 |
|
|
1237800 |
1.26 |
|
Total
shareholding of Promoter and Promoter Group (A) |
56191279 |
57.07 |
|
|
|
|
|
(B)
Public Shareholding |
||
|
|
|
|
|
|
6169415 |
6.27 |
|
|
54723 |
0.06 |
|
|
7056914 |
7.17 |
|
|
13281052 |
13.49 |
|
|
|
|
|
|
5494302 |
5.58 |
|
|
|
|
|
|
14264302 |
14.49 |
|
|
7606107 |
7.73 |
|
|
1620118 |
1.65 |
|
|
1397793 |
1.42 |
|
|
207125 |
0.21 |
|
|
15200 |
0.02 |
|
|
28984829 |
29.44 |
|
Total
Public shareholding (B) |
42265881 |
42.93 |
|
|
|
|
|
Total
(A)+(B) |
98457160 |
100.00 |
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|
|
|
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(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) |
98457160 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Exporter of Fabric and Yarn Fabrics. |
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Products : |
Not Divulged |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
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Products : |
Fabric and Yarn |
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Countries : |
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Imports : |
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Products : |
Fabric and Yarn |
|
Countries : |
China |
GENERAL INFORMATION
|
Suppliers : |
Not Divulged |
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Customers : |
Not Divulged |
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No. of Employees : |
Not Divulged |
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Bankers : |
·
Canara Bank, Prime Corporate Branch, Karnataka,
India ·
Export-Import Bank of India ·
The Hongkong and Shanghai Banking Corporation
Limited Banking Corporation Limited ·
ICICI Bank Limited ·
HSBC Bank, M.G. Road, Bangalore, Karnataka, India |
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Facilities : |
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Banking
Relations : |
-- |
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|
|
|
Statutory Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Anchorage II, 100/2,
Richmond Road, Bangalore – 560 025, Karnataka, India |
|
Tel. No.: |
91-80-66276000 |
|
Fax No.: |
91-80-66276011 |
|
|
|
|
Wholly owned
subsidiaries (WOS) : |
·
Himatsingka Wovens Private Limited (HWPL) ·
Himatsingka America, Inc. (HimA) ·
Divatex Home Fashion, Inc. (Divatex) ·
DWI Holdings, Inc. (DWI) ·
Himatsingka Singapore Pte Limited (HSPL) |
|
|
|
|
Other
subsidiaries (OS) : |
·
Twill and Oxford LLC (T&O) ·
Giuseppe Bellora S.p.A. (GB) ·
GBT SrL |
|
|
|
|
Enterprises owned or significantly influenced by
KMP, directors or their relatives : |
·
Bihar Mercantile Union Limited (BMU) ·
Satin Reed America, Inc. (SR) ·
Khaitan and Co LLP ·
D.K. Himatsingka HUF ·
Credit Himatsingka Private Limited (CHPL) |
CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
134000000 |
Equity Shares |
Rs.5/- each |
Rs.670.000 Millions |
|
|
|
|
|
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
98496160 |
Equity Shares |
Rs.5/- each |
Rs.492.481
Millions |
|
|
|
|
|
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
98457160 |
Equity Shares |
Rs.5/- each |
Rs.492.286
Millions |
|
|
|
|
|
i) There has been
no movement in the shares outstanding from the prior year to the current year.
ii) Detail of the rights,
preferences and restrictions attaching to each class of shares:
The Company has
only one class of equity share, having a par value of Rs. 5/-. Each holder of
equity shares is entitled to one vote per share. In the event of liquidation of
the Company, the holders of the equity shares will be entitled to receive any
of the remaining assets of the Company, after distribution of all preferential
amount. However, as on date no such preferential amounts exist. The
distribution will be in proportion to number of equity shares held by the
shareholders.
iii) Number of equity shares held by each shareholder holding more than
5% shares in the Company:
|
Shareholder |
No. of Shares |
|
D K Himatsingka |
16567480 |
|
% of holding |
17% |
|
Shrikant Himatsingka |
6680964 |
|
% of holding |
7% |
|
Bihar Mercantile Union Limited |
5706000 |
|
% of holding |
6% |
|
Rajshree Himatsingka |
5457260 |
|
% of holding |
6% |
iv) There were no instances of shares issued, on which there were any calls
remaining unpaid or instances of any forfeitures during the years ended March
31, 2014 and 2013.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)
Shareholders' Funds |
|
|
|
|
(a) Share Capital |
492.286 |
492.286 |
492.286 |
|
(b) Reserves & Surplus |
5499.412 |
5025.731 |
4679.397 |
|
(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) |
5991.698 |
5518.017 |
5171.683 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) Long-term borrowings |
2210.618 |
2929.807 |
2352.304 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
31.889 |
21.070 |
13.780 |
|
(d) Long-term
provisions |
60.402 |
39.061 |
39.447 |
|
Total Non-current
Liabilities (3) |
2302.909 |
2989.938 |
2405.531 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
1494.955 |
1145.317 |
1466.683 |
|
(b) Trade
payables |
1864.359 |
1306.996 |
1214.250 |
|
(c) Other
current liabilities |
801.652 |
611.742 |
782.640 |
|
(d) Short-term
provisions |
275.391 |
201.424 |
298.225 |
|
Total Current
Liabilities (4) |
4436.357 |
3265.479 |
3761.798 |
|
|
|
|
|
|
TOTAL |
12730.964 |
11773.434 |
11339.012 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i)
Tangible assets |
3638.088 |
4017.579 |
4370.000 |
|
(ii)
Intangible Assets |
45.330 |
53.356 |
31.955 |
|
(iii)
Capital work-in-progress |
80.673 |
60.269 |
88.716 |
|
(iv)
Intangible assets under development |
13.941 |
0.000 |
0.000 |
|
(b) Non-current Investments |
3582.583 |
3515.956 |
3283.670 |
|
(c) Deferred tax assets (net) |
10.297 |
9.879 |
0.000 |
|
(d) Long-term Loan and Advances |
1591.380 |
1306.638 |
604.741 |
|
(e) Other
Non-current assets (Long-term trade receivables) |
154.143 |
97.660 |
0.000 |
|
Total Non-Current
Assets |
9116.435 |
9058.337 |
8379.082 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
94.756 |
|
(b)
Inventories |
1948.303 |
1443.791 |
1566.032 |
|
(c) Trade
receivables |
1061.246 |
722.471 |
725.776 |
|
(d) Cash
and cash equivalents |
110.690 |
146.650 |
25.143 |
|
(e)
Short-term loans and advances |
219.757 |
288.911 |
349.275 |
|
(f) Other
current assets |
274.533 |
113.274 |
198.948 |
|
Total Current
Assets |
3614.529 |
2715.097 |
2959.930 |
|
|
|
|
|
|
TOTAL |
12730.964 |
11773.434 |
11339.012 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from operations |
9836.870 |
7144.673 |
6504.297 |
|
|
|
Other Income |
125.251 |
130.794 |
60.899 |
|
|
|
TOTAL (A) |
9962.121 |
7275.467 |
6565.196 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
6239.751 |
3930.245 |
3521.664 |
|
|
|
Purchase of traded goods |
80.869 |
151.662 |
157.582 |
|
|
|
Changes in inventories
of finished goods, work-in-progress and stock-in-trade |
(312.358) |
(0.081) |
195.952 |
|
|
|
Employee benefit
expenses |
962.018 |
761.687 |
627.598 |
|
|
|
Other expenses |
1476.429 |
1222.114 |
1037.542 |
|
|
|
Exceptional items
– gain / loss |
(4.700) |
(35.594) |
40.292 |
|
|
|
TOTAL (B) |
8442.009 |
6030.033 |
5580.630 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1520.112 |
1245.434 |
984.566 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
467.641 |
360.443 |
305.852 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1052.471 |
884.991 |
678.714 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
464.534 |
461.612 |
478.481 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
587.937 |
423.379 |
200.233 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(0.418) |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
588.355 |
423.379 |
200.233 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Exports on FOB
basis – net of returns (includes deemed export sales) |
9310.289 |
6543.806 |
6013.504 |
|
|
|
Interest income |
90.126 |
48.433 |
40.677 |
|
|
TOTAL EARNINGS |
9400.415 |
6592.239 |
6054.181 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and chemicals |
2408.040 |
2601.610 |
1348.592 |
|
|
|
Components, spares ad others |
33.864 |
22.279 |
37.243 |
|
|
|
Capital Goods |
22.064 |
2.514 |
0.255 |
|
|
TOTAL IMPORTS |
2463.968 |
2626.403 |
1386.090 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
5.98 |
4.30 |
2.03 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
5.91 |
5.82 |
3.05 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
5.98 |
5.93 |
3.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.50 |
5.17 |
2.51 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
0.10 |
0.08 |
0.04 |
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
0.62 |
0.74 |
0.74 |
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
0.81 |
0.83 |
0.79 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
492.286 |
492.286 |
492.286 |
|
Reserves & Surplus |
4679.397 |
5025.731 |
5499.412 |
|
Net
worth |
5171.683 |
5518.017 |
5991.698 |
|
|
|
|
|
|
long-term borrowings |
2352.304 |
2929.807 |
2210.618 |
|
Short term borrowings |
1466.683 |
1145.317 |
1494.955 |
|
Total
borrowings |
3818.987 |
4075.124 |
3705.573 |
|
Debt/Equity
ratio |
0.738 |
0.739 |
0.618 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
6504.297 |
7144.673 |
9836.870 |
|
|
|
9.845 |
37.681 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Revenue from operations |
6504.297 |
7144.673 |
9836.870 |
|
Profit/(Loss) After Tax |
200.233 |
423.379 |
588.355 |
|
|
3.08% |
5.93% |
5.98% |
LOCAL AGENCY FURTHER INFORMATION
|
Check
List by Info Agents |
Available in
Report (Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
No |
|
9) Name of person contacted |
Yes |
|
10) Designation of contact person |
Yes |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if
applicable) |
Yes |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter involved
in |
Yes |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
Yes |
|
31)
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32)
PAN of Proprietor/Partner/Director, if available |
No |
|
33)
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34)
External Agency Rating, if available |
Yes |
LITIGATION DETAILS:
|
HIGH COURT OF
KARNATAKA – BANGALORE BRANCH
CASE PENDING
Details of the Daily Order
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNSECURED LOAN
|
Particulars |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
Non-Convertible Debentures |
120.000 |
160.000 |
|
Loan from related parties |
24.530 |
184.530 |
|
Total
|
144.530 |
344.530 |
MANAGEMENT DISCUSSION
AND ANALYSIS
GLOBAL ECONOMIC
OVERVIEW
The World economic growth for the year 2013 was subdued and stood at 2.1 percent. While most developed economies struggled to take appropriate fiscal and monetary policy action in the aftermath of the financial crisis, emerging economies that had already experienced a notable slowdown in the past two years encountered new domestic and international headwinds. However, there seem to be signs of improvement on the horizon. Global GDP (Gross Domestic Product) is forecast to grow at a pace of 3.0 and
3.3 percent in 2014 and 2015, respectively.
On the Global trade front, the growth of world merchandise trade slipped to 2.3 percent for 2013 as against 3.1 percent in 2012. The prospects for global trade are expected to improve, driven by better economic conditions in Europe, further recovery in the United States and dynamic trade in East Asia.
INDIAN ECONOMIC
OVERVIEW
The Indian economy has been going through challenging times that culminated in a lower than 5 percent GDP growth for two consecutive fiscals, during FY 2012-13 and FY 2013-14. Persistent uncertainty in the global outlook, caused by the crisis in the Euro area, a general slowdown in the global economy compounded by domestic structural constraints and inflationary pressures, resulted in a protracted slowdown. This growth rate is in sharp contrast to an average growth rate of 8.3 per cent per annum from FY 2004-05 to FY 2011-12.(Source: MOSPI).
This moderation in growth was primarily on the back of a less than desirable services sector performance and a significant contraction in the industrial sector. The Industrial sector saw the Index of Industrial Production (IIP) contracting for the first time in over three decades. However, a stable government at the center and a renewed vigor to pursue fiscal consolidation should provide a fresh impetus to the manufacturing and service sectors. In addition to the above, potential new policy reform measures are likely to put the Indian economy back on a high growth trajectory.
While India continued to witness sluggish GDP growth, it made considerable progress on containing its Trade Deficit for FY 2013-14. Total exports for FY 2013-14 grew 4% to USD 312.6 billion. Total imports, however, contracted 8.1% and thus lead to a reduction in Trade deficit by approximately 20% vis-ŕ-vis the previous fiscal. The favorable trend on the export front, coupled with a reduction in imports seems to augur well for the Indian economy as this has contributed to a significant reduction of the current account deficit and is also helping the Indian currency stabilize from the levels it witnessed during 2013. FY 2013-14 was also a good year for the Indian economy as, in addition to bridging its Trade Deficit, it witnessed a significant improvement in containing its Fiscal Deficit. The government contained the Fiscal deficit to 4.5% of GDP vs. 4.9% during the previous year.
The economic slump witnessed over the last two fiscals had negatively impacted investor confidence. However, a stable government and improving economic fundamentals are likely to bring back sustained investor confidence in the Indian economy as has been witnessed during the latter half of FY 2013-14.
GLOBAL TEXTILE
INDUSTRY
The Global Textile and Apparel trade stood at USD 708 Billion and contributed to 4% of Global trade during 2012. Of USD 708 Billion, USD 423 Billion came from the Apparel sector and USD 285 Billion came from the Textiles sector. (Source: International Trade Statistics 2013, WTO).
The global Textile and Apparel trade has witnessed a Compounded Annual Growth Rate (CAGR) of 5.7% from 2004 through 2012. At this rate of growth, Global trade of Textile and Apparel products is expected to cross USD 1 Trillion by 2021.
While developed economies continue to be major consumption centers for textile products, emerging market economies, India and China in particular, are also contributing to the enhanced global demand for textile products. On the manufacturing front however, the structural shift to the east continues and India and China dominate the textile manufacturing space with large capacities, fresh investments in addition to access and proximity to vast raw material resources.
GLOBAL HOME TEXTILE
SCENARIO
The United States continues to dominate the Global Home Textiles market. With an estimated market size pegged at USD 28 – 30 Billion (Source: Home Textiles Today), the United States constitutes an estimated 40% of the Global Home Textile market valued at USD 70 – 75 Billion.
The United States Home Textile market is an extremely mature market with the organized retail sector contributing over 99% of total throughput in that geography. The market is dominated by retailers who operate large Specialty store chains, Department store chains and Big Box discount chains.
Given the strong presence of Himatsingka in the bedding segment and its large presence in the North American market, the import data of the United States pertaining to cotton based bedding products is of particular significance.
The sourcing of Cotton based bedding products for the United States market is predominantly from India, China and Pakistan, among other countries. As seen in Table 2 below, the United States has increased its sourcing of Cotton Sheets, Pillow Cases, Bed Spreads and Quilts from India over the years. While total imports from India of these products stood at USD 470 Million in 2008, the same has grown to USD 1 Billion in 2013. This translates to a CAGR of 16.2% over the same period. China, however, has clocked CAGR of a negative 3.7% during the same period. This demonstrates India’s manufacturing competitiveness in cotton based bedding products, which is likely to continue, given India’s vast Cotton resources and a strong manufacturing platform for the usage of this fiber.
Further, Table 3 below demonstrates the percentage share of the United States imports of Cotton Sheets, Pillow Cases, Bed Spreads and Quilts. India and China clearly dominate the market with a 70% share of Imports. India’s share of imports of the above products has grown from 17% in 2008 to 35% in 2013.
INDIAN TEXTILE
SCENARIO
The Indian Textile industry has kept pace with the growth India has witnessed over the years. The industry continues to substantially contribute to the country’s GDP, employment and foreign exchange earnings.
With a contribution of close to 4% of GDP, a direct employment base of approximately 40 million people, an 11% share of India’s exports basket and a contribution of 12% to Industrial production, the Indian Textile Industry is a powerful sector and will play an important role in the economic growth of the country.
The size of India’s Textile and Apparel Industry (Domestic and Exports) is estimated at USD 94 Billion in the year 2013. This is projected to grow to USD 223 Billion by 2021. The growth will be driven by both the domestic and export segments of the industry. While exports are likely to grow from USD 31 Billion in 2013 to USD 82 Billion in 2021, the domestic market is likely to grow from USD 63 Billion to USD 141 Billion during the same period. (Source: FICCI, Ministry of Textiles). As seen in Table 4 below, Indian textile and apparel exports have seen a steady rise over the years. Exports have clocked a CAGR of 8.2% from 2007 through 2013.
With a potential to cross USD 200 Billion by the end of the 13th Five Year Plan, it is evident that the Indian Textile Industry is poised to occupy an important place in the Global textile map. This growth will be fueled by the signify cant strengths and advantages India enjoys particularly in Cotton based textile products among other textile categories. The same will be leveraged to enhance its share of global textile trade and enable it to keep pace with the growing domestic demand. India enjoys five significant strengths and advantages in the cotton textile sector. Below is an analysis of each of these strengths.
CONTINGENT
LIABILITIES (TO THE EXTENT NOT PROVIDED FOR):
|
Particulars |
31.03.2014 (Rs.
in Millions) |
31.03.2013 (Rs.
in Millions) |
|
Claims against the Company not acknowledged as debts |
|
|
|
Taxation matters# |
|
|
|
Income tax |
53.672 |
46.577 |
|
Excise duty |
34.180 |
34.180 |
|
Value added tax |
-- |
14.020 |
|
Service tax |
-- |
0.428 |
|
Others |
3.525 |
3.525 |
|
Corporate guarantee given towards credit facilities on behalf of
subsidiaries |
|
|
|
Financial institutions |
100.00 |
22.121 |
|
Banks |
1842.860 |
1898.898 |
|
Others |
38.490 |
17.393 |
|
Bill discounted |
-- |
-- |
# The above
amounts have been arrived at based on the notice of demand or the Assessment
Orders, as the case may be, and the Company is contesting these claims with the
respective authorities. Outflows, if any, arising out of these claims would
depend on the outcome of the decisions of the appellate authorities and the
Company’s rights for future appeals before the judiciary. No reimbursements are
expected.
STATEMENT OF STANDALONE UNAUDITED RESULTS FOR THE QUARTER
ENDED 30 JUNE, 2014
PART
I
(Rs. in millions)
|
Sr.
No. |
Particulars |
Quarter Ended 30.06.2014 |
|
|
|
(Unaudited) |
|
1 |
Income
from operations |
|
|
|
(a) Net sales |
2198.000 |
|
|
(b) Other operating income |
89.400 |
|
|
Total
income from operations (net) |
2287.400 |
|
2 |
Expenses |
|
|
|
(a) Cost
of materials consumed |
1303.400 |
|
|
(b)
Purchases of stock-in-trade |
30.700 |
|
|
(c)
Changes in inventories of finished goods, work-in-progress and stock-
in-trade |
56.700 |
|
|
(d)
Employee benefits expense |
245.800 |
|
|
(e)
Depreciation and amortisation expense |
96.300 |
|
|
(f) Other
expenses |
261.100 |
|
|
Total
expenses |
1994.000 |
|
3 4 |
Profit
from operations before other income, finance costs and exceptional items |
293.400 |
|
|
Other
income |
28.200 |
|
5 |
Profit
from ordinary activities before finance costs and exceptional items |
321.600 |
|
6 |
Finance costs |
94.200 |
|
7 |
Profit
from ordinary activities after finance costs but before exceptional items |
227.400 |
|
8 |
Exceptional
items gain/ (loss) - net |
-- |
|
9 |
Profit
from ordinary activities before tax |
227.400 |
|
10 |
Tax
expense |
- |
|
11 |
Net
profit after tax |
227.400 |
|
12 |
Paid up
equity share capital Face value
of Rs. 5 per equity share |
492.300 |
|
13 |
Reserves
excluding Revaluation Reserves |
|
|
14 |
Earnings
per share (Basic and Diluted) |
2.31 |
PART
II
SELECT
INFORMATION FOR THE QUARTER ENDED 30 JUNE, 2014
|
A |
PARTICULARS
OF SHAREHOLDING |
|
|
1 |
Public
shareholding |
|
|
|
- Number
of shares |
42265881 |
|
|
-
Percentage of shareholding |
42.93 |
|
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 |
56191279 |
|
|
-
Percentage of shares (as a % of the total shareholding of promoter |
|
|
|
and
promoter group) |
100 |
|
|
-
Percentage of shares (as a % of the total share capital of the Company) |
57.07 |
|
|
Particulars |
3 months
ended 30.06.2014 |
|
B |
INVESTOR COMPLAINTS |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
3 |
|
|
Disposed of during the quarter |
3 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
NOTES:
- The Company is primarily engaged in the business of 'Home Textiles', consequently this is the only reportable segment.
- In accordance with Clause 41 of the Listing Agreement, the Statutory Auditors have carried out a Limited Review of the Standalone financial results for the quarter ended June 30, 2014.
- Pursuant to applicability of the Companies Act, 2013 ("the Act") with effect from April 01, 2014, (as per the provision of Part C of Schedule II of the Act), the Company has reassessed the remaining useful life of assets based on technical evaluation. Consequently, the depreciation for the quarter ended June 30, 2014 is lower by Rs. 20.4 Millions. An amount of Rs. 9.9 Millions is recognised in the opening balance of retained earnings where the remaining useful life of the assets is nil.
- Previous year/quarter figures have been regrouped/recast, wherever necessary.
FIXED ASSETS
Tangible Assets:
·
Land – owned
·
Land – taken on operating lease
·
Buildings – owned
·
Buildings – partly given on operating lease
·
Plant and machinery – owned
·
Furniture and fixtures – owned
·
Leasehold improvements – owned
·
Office equipments – owned
·
Vehicles – owned
Intangible Assets:
·
Software and other related costs – owned
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.
records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] 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.61.45 |
|
|
1 |
Rs.97.75 |
|
Euro |
1 |
Rs.76.67 |
INFORMATION DETAILS
|
Information Gathered
by : |
SVA |
|
|
|
|
Analysis done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ART |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTERS |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
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.