MIRA INFORM REPORT
|
Report Date : |
10.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
NAHAR SPINNING MILLS LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
16.12.1980 |
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Com. Reg. No.: |
16-004341 |
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Capital
Investment/ Paid-up Capital: |
Rs.180.531 Millions |
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CIN No.: [Company Identification
No.] |
L17115PB1980PLC004341 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDN00362F / JLDN00361E / JLDN00757B |
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PAN No.: [Permanent Account No.] |
AAACN5710D |
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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
: |
Manufacturer of
Cotton / Synthetic and Blended Yarns. |
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No. of
Employees: |
11151 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
A (60) |
|
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 |
|
Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is a well-established company having fine track record. The rating reflects Nahar’s established position in the cotton yarn
and knitted-garments markets supported by decent liquidity position and fair
profitability levels of the company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. 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 – 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 |
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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
N E W S
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=A |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
20.11.2013 |
|
Rating Agency Name |
CRISIL |
|
Rating |
Short term rating=A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk. |
|
Date |
20.11.2013 |
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 DENIED
Management Non-Cooperative (Tel. No.: 91-161-2600701)
LOCATIONS
|
Registered / Corporate Office : |
|
|
Tel. No.: |
91-161-2600701-05 / 2606977-80/ 2660945/ 2661181/ 2661180 |
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Fax No.: |
91-161-2222942 / 2601956 / 601956 |
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E-Mail : |
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Website : |
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Factory 1 : |
427, Industrial Area–‘A’, Ludhiana, Punjab, India |
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Factory 2 : |
Dhandari Kalan, G.T. Road, Sherpur, Ludhiana - 141010, Punjab, India |
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Factory 3 : |
Village Simrai, Mandideep, District Raisen, Madhya Pradesh, India |
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Factory 4 : |
Village Jalalpur, District S.A.S. Nagar, Punjab, India |
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Factory 5 : |
Village Lalru and Lehli, District S.A.S. Nagar, Punjab , India |
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Factory 6 : |
Rishab Spining Mills, Village Jodhan, District, Ludhiana, Punjab, India |
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Factory 7 : |
Nahar Fibres, Jitwal Kalan Malekotla, District Snagrur, Punjab, India |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Jawahar Lal Oswal |
|
Designation : |
Chairman |
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|
Name : |
Mr. Dinesh Oswal |
|
Designation : |
Managing Director |
|
Qualification : |
B.A. LL.B |
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|
|
|
Name : |
Mr. Kamal Oswal |
|
Designation : |
Director |
|
Date of Birth/Age : |
51 years |
|
Qualification : |
Commerce Graduate |
|
Expertise : |
Having business experience of more than 31 years in the Industry. |
|
Other Directorship : |
· Nahar Capital and Financial Services Limited Nahar Poly Films Limited Nahar Indl. Infrastructure Corpn. Limited Oswal Woollen Mills Limited Oswal Leasing Limited Sankeshwar Holding Co. Limited Vardhman Investment Limited Girnar Investment Limited Atam Vallabh Financiers Limited J.L. Growth Fund Limited Abhilash Growth Fund Private Limited Neha Credit and Invest. Private Limited Monte Carlo Fashions Limited Nahar Growth Fund Private Limited |
|
|
|
|
Name : |
Mr. Dinesh Gogna |
|
Designation : |
Director |
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|
|
Name : |
Mr. Satish Kumar Sharma |
|
Designation : |
Director |
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|
Name : |
Dr. H.K. Bal |
|
Designation : |
Director |
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Qualification : |
Ph. D |
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|
|
|
Name : |
Prof. Kanwar Sain Sharma |
|
Designation : |
Director |
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|
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|
Name : |
Dr. Suresh Kumar Singla |
|
Designation : |
Director |
|
Date of Birth/Age : |
64 years |
|
Qualification : |
M.A. (Stats. & Eco.) and Ph. D (Stats.) |
|
Expertise : |
Having more than 32 years’ experience in Teaching Business Management and Administration. |
|
Other Directorship : |
· Metro Tyres Limited Nahar Poly Films Limited Oswal Woollen Mills Limited |
|
|
|
|
Name : |
Dr. Amrik Singh Sohi |
|
Designation : |
Additional Director |
|
Date of Birth/Age : |
66 years |
|
Qualification : |
M.Sc. Ph.D |
|
Expertise : |
Having more than 36 years’ experience in teaching and Entomology Research. |
|
Other Directorship : |
· Nahar Poly Films Limited Nahar Capital and Financial Services Limited Nahar Industrial Enterprises Limited |
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|
|
|
Name : |
Dr. Yash Paul Sachdeva |
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Designation : |
Additional Director |
|
Date of Birth/Age : |
51 years |
|
Qualification : |
MBA, Ph.D |
|
Expertise : |
Having more than 31 years’ experience in teaching Business Management and Administration. |
|
Other Directorship : |
· Nahar Capital and Financial Services Limited Nahar Poly Films Limited Nahar Industrial Enterprises Limited Cotton County Retail Limited Oswal Spg. and Weaving Mills Limited |
KEY EXECUTIVES
|
Name : |
Mr. Anil Kumar Garg |
|
Designation : |
Finance Controllers |
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|
Name : |
Mr. P.K. Vashishth |
|
Designation : |
Finance Controllers |
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|
Name : |
Mr. Brij Sharma |
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Designation : |
Company Secretary |
SHAREHOLDING PATTERN
AS ON 30.06.2014
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
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|
Individuals / Hindu Undivided Family |
87591 |
0.24 |
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|
23291834 |
64.58 |
|
|
23379425 |
64.83 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
23379425 |
64.83 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7666 |
0.02 |
|
|
3474 |
0.01 |
|
|
600 |
0.00 |
|
|
11740 |
0.03 |
|
|
|
|
|
|
1921354 |
5.33 |
|
|
|
|
|
|
8543777 |
23.69 |
|
|
2109911 |
5.85 |
|
|
99096 |
0.27 |
|
|
97745 |
0.27 |
|
|
22 |
0.00 |
|
|
1129 |
0.00 |
|
|
200 |
0.00 |
|
|
12674138 |
35.14 |
|
Total Public shareholding (B) |
12685878 |
35.17 |
|
Total (A)+(B) |
36065303 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
36065303 |
0.00 |
(1) Indian
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of
Cotton / Synthetic and Blended Yarns. |
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Products : |
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GENERAL INFORMATION
|
No. of Employees : |
11151 (Approximately) |
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Bankers : |
·
State Bank Of India, Specialised Commercial
Branch, Pahwa Hospital Com Punjab National Bank, International Banking Branch, 1st Floor, Industrial Area, Near Manju Cinema,
Ludhiana - 141003, Punjab, India State Bank of Patiala Oriental Bank of Commerce IDBI Bank Limited Allahabad Bank |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors : |
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|
Name : |
Gupta Vigg and Company Chartered Accountants |
|
Address : |
101, Kismat Complex, G.T. Road, Miller Ganj, Ludhiana – 141003, Punjab, India |
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|
|
|
Associates : |
· Nahar Capital and Financial Services Limited Nahar Poly Films Limited Nahar Industrial Enterprises Limited Oswal Woollen Mills Limited Vanaik Spinning Mills Limited Abhilash Growth Fund (Private) Limited Atam Vallabh Financers Limited Bermuda Insurance Brokers Private Limited Kovalam Investment and Trading Company Limited Ludhiana Holdings Limited Monica Growth Fund (Private) Limited Nagdevi Trading and Investment Company Limited Nahar Growth Fund (Private) Limited, Ruchika Growth Fund (Private) Limited Sankeshwar Holding Company Limited Vanaik Investors Limited Vardhman Investment Limited J.L. Growth Fund Limited Neha Credit and Investment Private Limited, Ginar Investment Limited Crown Star Limited Monte Carlo Fashions Limited Cotton County Retail Limited Nahar Industrial Infrastructure Corporation Limited Simran and Shanaya Company Limited Palam Motels Limited Sidhant and Mannat Company Limited Hug Foods Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
60000000 |
Equity Shares |
Rs.5/- each |
Rs.300.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
36065303 |
Equity Shares |
Rs.5/- each |
Rs.180.327
Millions |
|
|
Share Forfeited Account (Amount originally paid up) |
|
Rs. 0.204
Million |
|
|
|
|
|
|
|
|
|
Rs.180.531 Millions |
a) Terms/rights
attached to equity shares
The company has only one class of shares having par value at Rs. 5/-per share. Each holder of equity shares is entitled to one vote per share
b) Reconciliation of
number of shares
|
Particular |
31.03.2013 |
|
Number of shares at the beginning of the Financial year |
36065303 |
|
Add: Shares Issued During the year |
- |
|
Less: Share buyback during the year |
- |
|
Number of shares at the end of the Financial year |
36065303 |
c) Detail of
shareholders holding more than 5% shares
|
Name of the
Shareholder |
31.03.2013 Number of Shares |
% of Holding |
|
Nahar Capital and Financial services Limited |
10257384 |
28.44 |
|
Nahar Poly Films Limited |
6902244 |
19.14 |
|
Nahar Industrial Enterprises Limited |
2356930 |
6.54 |
d) Forfeited Shares
(amount originally paid up)
|
Particular |
31.03.2013 |
|
Amount Paid Up |
|
|
Rs.2.50 per Share |
80298 |
|
Rs.5.00 per Share |
710 |
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 |
180.531 |
180.531 |
180.531 |
|
(b) Reserves & Surplus |
7454.387 |
6043.538 |
5307.123 |
|
(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) |
7634.918 |
6224.069 |
5487.654 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3660.699 |
3385.700 |
4037.933 |
|
(b) Deferred tax liabilities (Net) |
618.500 |
463.500 |
6.500 |
|
(c) Other long term liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current Liabilities (3) |
4279.199 |
3849.200 |
4044.433 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
7031.139 |
7996.810 |
7319.043 |
|
(b) Trade payables |
538.742 |
326.673 |
403.637 |
|
(c) Other current
liabilities |
1740.686 |
1612.301 |
1448.999 |
|
(d) Short-term provisions |
516.194 |
141.794 |
0.625 |
|
Total Current Liabilities (4) |
9826.761 |
10077.578 |
9172.304 |
|
|
|
|
|
|
TOTAL |
21740.878 |
20150.847 |
18704.391 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
8997.354 |
8024.577 |
8374.973 |
|
(ii) Intangible Assets |
0.121 |
0.161 |
0.445 |
|
(iii) Capital
work-in-progress |
614.675 |
383.193 |
395.758 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
88.539 |
88.026 |
82.580 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
463.906 |
382.133 |
297.654 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current Assets |
10164.595 |
8878.090 |
9151.410 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
89.749 |
29.749 |
59.749 |
|
(b) Inventories |
5995.833 |
6475.398 |
4689.345 |
|
(c) Trade receivables |
4118.524 |
3713.524 |
3817.850 |
|
(d) Cash and cash
equivalents |
80.050 |
130.309 |
117.777 |
|
(e) Short-term loans and
advances |
1292.127 |
923.777 |
868.260 |
|
(f) Other current assets |
0.000 |
0.000 |
0.000 |
|
Total Current Assets |
11576.283 |
11272.757 |
9552.981 |
|
|
|
|
|
|
TOTAL |
21740.878 |
20150.847 |
18704.391 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
22041.889 |
19612.762 |
16961.847 |
|
|
|
Other Income |
69.616 |
81.294 |
93.161 |
|
|
|
TOTAL (A) |
22111.505 |
19694.056 |
17055.008 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials
consumed |
12326.062 |
10600.087 |
10963.658 |
|
|
|
Purchase of
Stock-in-Trade |
216.297 |
58.497 |
56.263 |
|
|
|
Changes in
inventories of finished goods, work-in-progress and Stock-in-Trade |
(386.060) |
(90.715) |
801.117 |
|
|
|
Employee benefit
expense |
1654.558 |
1385.965 |
1117.102 |
|
|
|
Other expenses |
4729.308 |
4496.573 |
3905.058 |
|
|
|
Difference of
excise duty on Stocks |
0.000 |
0.000 |
0.662 |
|
|
|
TOTAL (B) |
18540.165 |
16450.407 |
16843.860 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (A-B) (C) |
3571.340 |
3243.649 |
211.148 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
644.726 |
1027.606 |
1101.219 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
2926.614 |
2216.043 |
(890.071) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
881.574 |
875.506 |
844.415 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
2045.040 |
1340.537 |
(1734.486) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
587.500 |
556.600 |
(560.875) |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-H) (I) |
1457.540 |
783.937 |
(1173.611) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
3796.167 |
3059.752 |
4231.764 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Adjustment of Income Tax
earlier Years |
4.497 |
5.328 |
(1.599) |
|
|
|
Proposed Dividend |
36.065 |
36.065 |
0.000 |
|
|
|
Tax on Dividend |
6.129 |
6.129 |
0.000 |
|
|
BALANCE CARRIED
TO THE B/S |
5207.016 |
3796.167 |
3059.752 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export of Goods/ Services on F.O.B. Basis |
14092.057 |
12772.293 |
11209.723 |
|
|
|
Discount/ Rent/ Interest Received/ Others |
6.041 |
6.209 |
5.689 |
|
|
TOTAL EARNINGS |
14098.098 |
12778.502 |
11215.412 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
38.629 |
76.809 |
138.414 |
|
|
|
Stores & Spares |
119.711 |
131.993 |
92.835 |
|
|
|
Capital Goods |
504.840 |
109.651 |
491.682 |
|
|
TOTAL IMPORTS |
663.180 |
318.453 |
722.931 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
40.29 |
21.59 |
(32.50) |
|
QUARTERLY RESULTS
(Rs.
In Millions)
|
Particulars |
|
|
30.06.2014 (Unaudited) |
|
|
|
|
1st
Quarter |
|
Net sales |
|
|
5281.000 |
|
Total Expenditure |
|
|
4881.400 |
|
PBIDT (Excluding Other Income) |
|
|
399.700 |
|
Other income |
|
|
13.100 |
|
Operating Profit |
|
|
412.80 |
|
Interest |
|
|
234.400 |
|
Exceptional Items |
|
|
0.000 |
|
PBDT |
|
|
178.300 |
|
Depreciation |
|
|
352.100 |
|
Profit Before Tax |
|
|
(173.700) |
|
Tax |
|
|
(59.000) |
|
Profit After Tax |
|
|
(114.700) |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
6.59 |
3.98 |
(6.88) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
9.28 |
6.84 |
(10.23) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.72 |
6.81 |
(9.52) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27 |
0.22 |
(0.32) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.40 |
1.83 |
2.07 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.18 |
1.12 |
1.04 |
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 |
180.531 |
180.531 |
180.531 |
|
Reserves & Surplus |
5307.123 |
6043.538 |
7454.387 |
|
Net
worth |
5487.654 |
6224.069 |
7634.918 |
|
|
|
|
|
|
long-term borrowings |
4037.933 |
3385.700 |
3660.699 |
|
Short term borrowings |
7319.043 |
7996.810 |
7031.139 |
|
Total
borrowings |
11356.976 |
11382.510 |
10691.838 |
|
Debt/Equity
ratio |
2.070 |
1.829 |
1.400 |
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 |
|
Sales |
16961.847 |
19612.762 |
22041.889 |
|
|
|
15.629 |
12.385 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
Rs.
In Millions |
Rs.
In Millions |
Rs.
In Millions |
|
Sales
|
16961.847 |
19612.762 |
22041.889 |
|
Profit |
(1173.611) |
783.937 |
1457.540 |
|
|
(6.92%) |
4.00% |
6.61% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
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 |
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 |
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 |
LITIGATION
DETAILS:
|
High Court of Punjab and Haryana Chandigarh |
|||
|
Case Details For
Case CM-8049-CII-2009 |
|||
|
Diary Number |
338822 |
District |
LUDHIANA |
|
Category |
-- |
Main Case Detail |
CR-1842-2009 |
|
Party Detail |
ICICI BANK
LIMITED V/S NAHAR SPINNING MILLS LIMITED |
||
|
Advocate Name |
PIYUSH KANT JAIN |
List Type |
|
|
Status |
PENDING |
Next Date |
|
|
Case Listing
Details |
|||
|
No Listing Data Available |
|||
|
Designed and Developed by National Informatics
Centre
Contents Published and Managed by Punjab and Haryana High Court,
Chandigarh. Disclaimer |
|||
PERFORMANCE REVIEW
As the members are
aware that company is engaged in the manufacturing of Yarns and Garments. These
business activities fall under the 'Textile' segment. However for the purpose
of working performance review, they would like to brief you company's
performance under two units namely Yarns and Garments
YARN UNIT
They are pleased
to inform you that Company's expansion cum modernization plan of 60,000
spindlage is progressing as per schedule. The Company has already installed
52848 spindles. The machineries remaining spindles have already arrived at the
plant site and it is expected that the same will be installed by end, 2014. On
completion of the above said expansion, Company's spindlage capacity will stand
increased to lakh spindles (approx.) and 1080 rotors.
Yarn Segment
performed exceedingly well during the year. The recovery in U.S., European
Union and Asian economies coupled with higher export realization enabled the
segment to achieve net revenue of Rs. 191.200 Millions showing an increase of
12.63% over the previous year. The financial performance too improved
significantly and it earned a profit before interest and tax of Rs. 2287.800
Millions showing an impressive increase of 10.10% over the previous year
GARMENT UNIT
Likewise, Garment
Segment, improved its performance during the year under review. The segment
achieved net revenue of Rs. 2729.500 Millions showing an impressive increase of
11.26% over previous year. It also improved its financial performance
significantly and earned a profit before interest and tax of Rs. 432.000
Millions showing an impressive increase of 74.64% over the previous year.
OVERALL
PERFORMANCE
From the above, it
is apparent that Company's overall performance has been excellent on all
parameters during the year ended 31st March, 2014. The Company earned net
revenue of Rs. 22041.900 Millions showing an impressive increase of 12.39 %
over the previous year.
The exports
Rs.14279.900 Millions has also shown increase of 9.87% over the previous year.
On profitability front too, the Company substantially improved its performance
and earned a profit before tax and depreciation of Rs.2926.600 Millions as
against profit of Rs. 2216.000 Millions in the previous year. After providing
depreciation of Rs. 881.600 Millions and provision for taxation/deferred
taxation of Rs. 587.500 Millions, it earned a net profit of Rs. 1457.500
crores. After the adjustment of Income tax of Rs. 4.500 Millions (earlier
years) the amount available for appropriations comes to Rs. 1453.000 Millions.
After appropriations
of profit as per the detail hereinabove, an amount of Rs. 900.000 Millions has
been transferred to General Reserve thereby increasing Company's reserve to Rs.
4696.200 Millions as on 31st March, 2014.
MANAGEMENT DISCUSSION AND ANALYSIS
Industry Structure
and Developments
The Indian Textile
Industry is of paramount importance to Indian Economy as it contributes about
14 per cent towards industrial production, 4 per cent to the Gross Domestic
Product (GDP) and 27 per cent to the country's foreign exchange inflows. It
provides direct employment to over 45 million people. The textiles sector is
the second largest provider of employment after agriculture. The Indian Textile
Industry accounts for about 24 per cent of the world's spindle capacity and 8 per
cent of global rotor capacity (source www.ibef.org) making it the second
largest producer of textile and garments after China. Indian Textile Industry
has a strong presence across the value chain due to its competitive advantage
of abundant availability of raw material such as cotton, jute, silk, wool and
skilled manpower which have made India a sourcing hub for the International
buyers. Thus, the growth and development of textile industry has a direct
bearing on the improvement of the Indian economy.
The Government of
India through its Textile Policy/Foreign Trade Policy has initiated several
measures to give a boost to the Industry e.g. implementation of Technology Up
gradation Fund Scheme, allowing of 100% FDI under automatic route, approving an
Integrated Processing Development Scheme (IPDS) with a corpus of Rs. 500
crores, setting up of six Textile lusters, extension of Interest Rate
Subvention Scheme etc. Further, in the Union Budget 2014-15, the Central
Government has allocated Rs. 23000.000 Millions for TUFS and Rs. 2400.000
Millions towards Integrated Textile Parks which will help the industry to grow
at a faster pace. The Ministry of Commerce and Industry has also extended the
existing 2% duty credit scrip under Market-linked Focus Product Scheme for the
readymade garments sector to EU and the US from April 1 till further orders.
These measures will enable the Industry to upgrade, modernize and increase
their capacities so as to compete in the global markets.
In line with the
global trends and to remain competitive, subject continues to modernize,
upgrade expand its capacities. The Company's expansion cum modernization plan
of 60000 spindlage is progressing as per Schedule. The Company has already
installed 52848 spindles. The remaining spindles will be installed by the end
of September, 2014. On completion of the above said expansion, Company's
spindlage capacity will stand increased to 5 Lakh spindles (approx.) and 1080
rotors. Thus, your company has positioned itself as one of the leading integrated
textile player to reap the benefits of economies of scale and become globally
competitive in terms of cost and quality. To expand its export business in the
Gulf Countries, your management has also established a wholly owned subsidiary
in the name of Nahar Spinnig Mill (FZE) in Sharjah Airport Free Zone, m
Sharjah, UAE on 9th December, 2013
Future Outlook
The recovery of
the Global economies coupled with strong demand from China enabled the Textile
Industry to register a robust growth during the year under review. Increase in
population, rise in the income level, increase in demand for quality products
are instrumental to push the domestic consumption and are key drivers to the
progress of the Indian textile industry. Inherently benefited from abundant
availability of raw material, India being the second largest producer of raw
cotton in the world, skilled workforce and relatively low labour costs had
enabled the industry to serve as a sourcing hub for textile producers for the
reputed international brands.
But in the current
year, the Industry is facing a very difficult period. The slow recovery in the
economies of the world, change in the cotton policy in China and sluggish
demand for yarns has affected the performance of the Textile Industry. The raw
cotton prices has remained at the high level whereas the prices of the yarns
has come down substantially, resulting severe adverse conditions for the yarn
industry. To remain competitive in the Global Markets, industry is forced to
sell its products at much lower prices which in turn is going to affect its
profitability in the coming periods. Moreover withdrawal of 2% focus market to
European Union with effect from 1st September, 2014 is also going to affect
Yarn Industry adversely. Inspite of the above, we feel that there is temporary
phase and Industry will come out this difficult period.
It is expected
that with the recovery of global economies coupled with favourable Government
policies, will benefit the textile industry enable to meet challenges ahead and
come out as a winner.
UNAUDITED FINANCIAL RESULTS FOR QUARTER ENDED 30.06.2014
(Rs. In Millions)
|
Particulars |
Quarter Ended ( Unaudited) |
|
|
30.06.2014 |
|
1.
Income from operations |
|
|
a) Net sales/ Income from operation (net of excise duty) |
5270.528 |
|
b) Other operating income |
10.514 |
|
Total
income from Operations(net) |
5281.042 |
|
2.Expenditure |
|
|
a) Cost of material consumed |
3444.758 |
|
b) Purchases of stock in trade |
18.098 |
|
c) Changes in inventories of finished goods,
work-in-progress and stock-in-trade |
(248.296) |
|
d) Employees benefit expenses |
433.699 |
|
e) Depreciation and amortization expenses |
352.083 |
|
e) Power and Fuel |
705.402 |
|
f) Other expenditure |
527.682 |
|
Total expenses |
5233.426 |
|
3. Profit from operations before other income and
financial costs |
47.616 |
|
4. Other income |
13.057 |
|
5. Profit from ordinary activities before finance costs |
60.673 |
|
6. Finance costs |
234.409 |
|
7. Net profit/(loss) from ordinary activities
after finance costs but before exceptional items |
(173.736) |
|
8. Exceptional item |
0.000 |
|
9. Profit from ordinary activities before tax
Expense: |
(173.736) |
|
10.Tax expenses |
(59.000) |
|
11.Net
Profit / (Loss) from ordinary activities after tax (9-10) |
(114.736) |
|
12.Extraordinary Items (net of tax expense) |
0.000 |
|
13.Net Profit / (Loss) for the period (11 -12) |
(114.736) |
|
14.Paid-up equity share capital (Nominal value Rs.5/- per share) |
180.327 |
|
15. Reserve excluding
Revaluation Reserves as per balance sheet of previous accounting year |
|
|
16.i) Earnings per share (before extraordinary
items) of Rs.10/- each) (not annualised): |
|
|
(a) Basic and diluted |
(3.18) |
|
ii) Earnings per share (after extraordinary items) |
|
|
(a) Basic and diluted |
(3.18) |
|
|
|
|
|
|
|
A. Particulars of shareholding |
|
|
1. Public Shareholding |
|
|
- Number of shares |
12685878 |
|
- Percentage of shareholding |
35.17% |
|
2. Promoters and Promoters group Shareholding- |
|
|
a) Pledged /Encumbered |
|
|
Number of shares |
Nil |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
Nil |
|
Percentage of shares (as a % of total share capital of the
company) |
Nil |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
23379425 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
100% |
|
Percentage of shares (as a % of total share capital of the
company) |
64.83% |
|
|
|
|
|
|
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
0 |
|
Receiving during the quarter |
0 |
|
Disposed of during the quarter |
0 |
|
Remaining unreserved at the end of the quarter |
0 |
NOTES:
1. Pursuant to the requirements of the Companies Act, 2013 effective from April 01, 2014, depreciation for the quarter ended June 30, 2014 has been calculated based on the useful life as specified under Schedule - II of the said act. Consequently, depreciation charge for the quarter ended June 30, 2014 is higher by Rs. 101.997 Millions in terms of Schedule-II of the Companies Act, 2013. An amount of Rs. 190.800 Millions (net of deferred tax) has been adjusted to the opening balances of Reserves and Surplus in respect of those assets where the useful life has exhausted as at April 01, 2014.
2. In one of the units of the Company, Depreciation on some assets under the Companies Act, 1956 was being provided on W.D.V. Basis. Now method of Depreciation on these assets has been changed from W.D.V to SLM. Consequent to this, Difference of depreciation up to March 2014 amounting to Rs. 3.300 Millions has been credited to depreciation charge for the quarter.
3. The Company has formed a 100% subsidiary in the name of Nahar Spinning Mills (FZE) in Sharjah (U.A.E.). The Company has not carried any operational activity during the quarter ended June 30, 2014.
4. In review of Accounting Standard (AS)-17 (Segment Reporting), the Company has consolidated all textile activities under one textile segment.
5. The previous period / year’s figures have been recast / regrouped / rearranged wherever necessary to make them comparable.
6. The above results were reviewed by the Audit Committee, Statutory Auditors and were thereafter taken on record by the Board at its meeting held on August 11, 2014.
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10474146 |
28/03/2013 |
1,170,000,000.00 |
STATE
BANK OF INDIA |
INDUSTRIAL
FINANCE BRANCH, GOLDEN TOWER, DHOLEWAL |
B78124385 |
|
2 |
10366137 |
25/06/2012 |
2,750,000,000.00 |
PUNJAB
NATIONAL BANK |
INTERNATIONAL
BANKING BRANCH, LUDHIANA, PUNJAB - 141003, INDIA |
B44003846 |
|
3 |
10326020 |
07/12/2011 |
1,970,000,000.00 |
ALLAHABAD
BANK |
IF
BRANCH, CHEEMA CHOWK, 165 INDUSTRIAL AREA-A,, |
B28981504 |
|
4 |
10303135 |
06/07/2011 |
850,000,000.00 |
STATE
BANK OF PATIALA |
COMMERCIAL
BRANCH, MILLER GANJ, LUDHIANA, PUNJAB |
B19107838 |
|
5 |
10238537 |
13/09/2010 |
1,240,000,000.00 |
ORIENTAL
BANK OF COMMERCE |
OVERSEAS
BRANCH, G T ROAD, LUDHIANA, PUNJAB - 141003, INDIA |
A94613452 |
|
6 |
10227032 |
13/05/2010 |
1,300,000,000.00 |
ORIENTAL
BANK OF COMMERCE |
OVERSEAS
BRANCH, JANDU TOWER, G.T. ROAD, MILLER GANJ, LUDHIANA, PUNJAB - 141003, INDIA |
A88683578 |
|
7 |
10236971 |
25/02/2010 |
1,100,000,000.00 |
IDBI
BANK LIMITED |
FEROZE
GANDHI MARKET BRANCH, LUDHIANA, PUNJAB - 141001, INDIA |
A88221213 |
|
8 |
10032548 |
26/12/2006 |
750,000,000.00 |
ORIENTAL
BANK OF COMMERCE |
OVERSEAS
BRANCH, G.T. ROAD, LUDHIANA, PUNJAB - 141003, INDIA |
A09195728 |
|
9 |
10015787 |
11/07/2006 |
880,000,000.00 |
PUNJAB
NATIONAL BANK |
INTERNATIONAL
BANKING BRANCH,, INDUSTRIAL AREA,, |
A02770758 |
|
10 |
80063248 |
12/01/2006 |
600,000,000.00 |
STATE
BANK OF INDIA |
SCB
MILLER GANJ, , LUDHIANA, PUNJAB - 142009, INDIA |
- |
|
11 |
80063246 |
22/04/2005 |
100,000,000.00 |
STATE
BANK OF PATIALA |
COMMERCIAL
BRANCH, LUDHIANA, PUNJAB - 142009, INDIA |
- |
|
12 |
90171504 |
22/04/2005 |
140,000,000.00 |
STATE
BANK OF PATIALA |
COMMERCIAL
BRANCH, LUDHIANA, PUNJAB, INDIA |
- |
|
13 |
80063247 |
20/12/2004 |
700,000,000.00 |
STATE
BANK OF INDIA |
SPECIALISED
COMMERCIAL BRANCH MILLER GANJ, PAHWA |
- |
|
14 |
90169405 |
11/06/2014
* |
11,650,000,000.00 |
PUNJAB
NATIONAL BANK |
INTERNATION
BANKING BRANCH, LUDHIANA, PUNJAB - 141003, INDIA |
C09829342 |
*Date of modification Charges
FIXED ASSETS:
· Free hold Land
Building
Plant
and Machinery
Vehicles
Other
Equipments
Furniture
and Fixture
Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No
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.61.04 |
|
UK Pound |
1 |
Rs.98.64 |
|
Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
KRN |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
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 |
|
60 |
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.