MIRA INFORM REPORT
|
Report Date : |
27.10.2014 |
IDENTIFICATION DETAILS
|
Name : |
PATSPIN INDIA LIMITED |
|
|
|
|
Registered
Office : |
3rd Floor, Palal Towers, Ravipuram, M G Road, Ernakulam –
682016, Kerala |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2014 |
|
|
|
|
Date of
Incorporation : |
20.09.1991 |
|
|
|
|
Com. Reg. No.: |
09-006194 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.514.300
Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L18101KL1991PLC006194 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
CHNP00626D / CHNP00292F |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Export of Cotton Yarn. |
|
|
|
|
No. of Employees
: |
Information declined by the management |
RATING & COMMENTS
|
MIRA’s Rating : |
B (29) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Maximum Credit Limit : |
USD 890000 |
|
|
|
|
Status : |
Moderate |
|
|
|
|
Payment Behaviour : |
Slow |
|
|
|
|
Litigation : |
Exist |
|
|
|
|
Comments : |
Subject is an established company having moderate track record. The company possesses an improved operational and financial
performance marked by infusion of funds from its promoters along with
increase in its sales volume and reporting a profit from its operations as
against a previous year loss. The ratings also take into consideration, high leveraged capital
structure and accumulation of losses due to which the liquidity is stretched
during FY14. However, trade relations seem to be fair. Business is active. Payment
terms are reported as slow. In view of vast experience of the promoters, the company can be
considered for business with great caution.
|
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
|
Restricted |
C2 |
|
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 |
CARE |
|
Rating |
Long Term Bank Facilities = B+ |
|
Rating Explanation |
High risk of default regarding timely servicing of financial
obligations. |
|
Date |
20.10.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities = A4 |
|
Rating Explanation |
Minimal degree of safety and very high credit risk. |
|
Date |
20.10.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
Management Non Co-operative (91-484-3928300)
LOCATIONS
|
Registered / Marketing / Head Office : |
3rd Floor Palal Towers, Ravipuram, M G Road,
Ernakulam-682016, Kerala, India |
|
Tel. No.: |
91-484-3928300 |
|
Fax No.: |
91-484-2370812 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
43, Mittal Chambers, 228 Nariman Point, Mumbai-400021, Maharashtra, India |
|
Tel. No.: |
91-22-22021013/ 22028246 |
|
Fax No.: |
91-22-22874144 |
|
E-Mail : |
|
|
|
|
|
Secretarial Office |
5th Floor, Palal Towers, Ravipuram, M G Road, Kochi – 682016, Kerala, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. B. K Patodia |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Umang Patodia |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. N. K Bafna |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
03.07.1939 |
|
Qualification : |
B.Com, FCA, Law Graduate |
|
Date of Appointment : |
20.06.2000 |
|
|
|
|
Name : |
Mr. B. L. Singhal |
|
Designation : |
Independent Director (Up to 31.07.2014) |
|
|
|
|
Name : |
Mr. R. Rajagopalan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajen K. Mariwala |
|
Designation : |
Independent Director (Up to 31.07.2014) |
|
Date of Birth/Age : |
04.09.1962 |
|
Qualification : |
BTech Chemical Engineering, M Tech Chemical Engineering |
|
Date of Appointment : |
21.01.2006 |
|
|
|
|
Name : |
Yoshikazu Ono |
|
Designation : |
Nominee of ITOCHU Corporation (up to 10.04.2014) |
|
|
|
|
Name : |
Mr. Prem Malik |
|
Designation : |
Independent Director |
|
Date of Birth/Age : |
03.02.1942 |
|
Qualification : |
Post Graduate, Punjab University |
|
Date of Appointment : |
15.5.2012 |
|
|
|
|
Name : |
Keisuke Oba |
|
Designation : |
Alternate to Yoshikazu Ono (up to 10.01.2014) |
|
|
|
|
Name : |
Mr. V. Viswanathan |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. S. Sundareshan |
|
Designation : |
Independent Director (w.e.f. 19.09.2014) |
|
Date of Birth/Age : |
28.10.1952 |
|
Qualification : |
M.A,M.B.A,I.A.S |
|
Date of Appointment : |
19.09.2014 |
KEY EXECUTIVES
|
Name : |
Mr. Abhilash N A |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
N.N. Venkitasubramanian |
|
~ |
General Manager (Finance) Chief
financial Officer |
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 |
|
|
|
|
|
|
|
|
80350 |
0.26 |
|
|
20016568 |
64.74 |
|
|
20096918 |
65.00 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
20096918 |
65.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
2600 |
0.01 |
|
|
4700 |
0.02 |
|
|
1100 |
0.00 |
|
|
8400 |
0.03 |
|
|
|
|
|
|
776627 |
2.51 |
|
|
|
|
|
|
5631188 |
18.21 |
|
|
4121037 |
13.33 |
|
|
285830 |
0.92 |
|
|
245686 |
0.79 |
|
|
40144 |
0.13 |
|
|
10814682 |
34.98 |
|
Total Public shareholding (B) |
10823082 |
35.00 |
|
Total (A)+(B) |
30920000 |
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) |
30920000 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
30920000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Export of Cotton Yarn. |
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||||||
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
Information declined by the management |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
|
||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
--- |
|
|
|
|
Auditors : |
|
|
Name : |
Jagannathan and Visvanathan Chartered Accountants |
|
Address : |
|
|
|
|
|
Legal Advisors : |
Menon and Pai, |
|
|
|
|
Associates : |
|
|
|
|
|
Enterprises/Entities
having “Common Key Management Personnel” |
|
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
40000000 |
Equity Shares |
Rs.10/- each |
Rs.400.000 Millions |
|
2500000 |
5% Non-Cumulative Redeemable Preferences
Shares |
Rs.100/- each |
Rs.250.000 Millions |
|
|
TOTAL
|
|
Rs.650.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
30920000 |
Equity Shares |
Rs.10/- each
|
Rs.309.200
Millions |
|
700000 |
5% Non-Cumulative Redeemable Preferences
Shares |
Rs.100/- each |
Rs.70.000
Millions |
|
1351000 |
0.01% Non-Cumulative Redeemable Preferences
Shares |
Rs.100/- each |
Rs.135.100
Millions |
|
|
TOTAL |
|
Rs.514.300 Millions |
Reconciliation of
number of shares
|
|
|
As at 31.03.2014 |
|
|
1 |
Equity Shares: |
No of Shares |
Rs. In Millions |
|
|
Balance as at the beginning of the year |
309,20,000 |
309.200 |
|
|
Add: Shares issued during the Year |
Nil |
Nil |
|
|
Balance as at the end of the year |
309,20,000 |
309.200 |
|
|
|
|
|
|
2 |
5% Non Cumulative
Redeemable Preference Shares of Rs 100 each |
|
|
|
|
Balance as at the beginning of the year |
7,00,000 |
70.000 |
|
|
Add: Shares issued during the Year |
Nil |
Nil |
|
|
Balance as at the end of the year |
7,00,000 |
70.000 |
|
|
|
|
|
|
3 |
0.01% Non Cumulative
Redeemable Preference Shares of Rs 100 each |
|
|
|
|
Balance as at the beginning of the year |
10,81,000 |
108.100 |
|
|
Add: Shares issued during the Year |
2,70,000 |
27.000 |
|
|
Balance as at the end of the year |
13,51,000 |
135.100 |
Details of
shareholders holding more than 5% of shares in the Company
|
|
|
As at 31.03.2014 |
|
|
1 |
Equity Shares: |
No of Shares |
% of holding in the Class |
|
|
Name of shareholder |
|
|
|
i |
GTN Textiles Limited (Promoter / Associate ) |
14257068 |
46.21% |
|
ii |
KSIDC Ltd (Promoter) |
2490000 |
8.05% |
|
iii |
Itochu Textiles Materials (Asia) Limited (Promoter) |
Nil |
Nil |
|
|
|
|
|
|
2 |
5% Non Cumulative
Redeemable Preference Shares of Rs. 100 each |
|
|
|
i |
Mrs. Deepa Bagla |
600000 |
85.71% |
|
Ii |
Mr. B. K. Patodia |
75000 |
10.71% |
|
|
|
|
|
|
3 |
0.01% Non
Cumulative Redeemable Preference Shares of Rs. 100 each issued as per the CDR
Package |
|
|
|
i |
Central Bank of India |
199000 |
14.73% |
|
|
State Bank of India |
199000 |
14.73% |
|
|
Oriental Bank of Commerce |
153000 |
11.32% |
|
|
Karur Vysya Bank |
82000 |
6.07% |
|
|
Bank of Maharashtra |
112000 |
8.29% |
|
|
Export Import Bank of India |
121000 |
8.96% |
|
|
State Bank of Travancore |
100000 |
7.40% |
|
|
Canara Bank |
115000 |
8.51% |
|
|
Mr. Deepa Bagla |
270000 |
19.99% |
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 |
514.300 |
487.300 |
379.200 |
|
(b) Reserves & Surplus |
(201.225) |
(243.758) |
(85.547) |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending
allotment |
0.000 |
13.500 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
313.075 |
257.042 |
293.653 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
1836.427 |
2128.144 |
1914.715 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
54.414 |
|
(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) |
1836.427 |
2128.144 |
1969.129 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
890.241 |
641.490 |
922.517 |
|
(b) Trade
payables |
421.773 |
452.851 |
271.839 |
|
(c) Other
current liabilities |
446.672 |
374.711 |
369.769 |
|
(d) Short-term
provisions |
8.762 |
7.211 |
5.605 |
|
Total Current
Liabilities (4) |
1767.448 |
1476.263 |
1569.730 |
|
|
|
|
|
|
TOTAL |
3916.950 |
3861.449 |
3832.512 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
1957.547 |
2072.683 |
2249.762 |
|
(ii)
Intangible Assets |
1.971 |
2.564 |
3.598 |
|
(iii)
Capital work-in-progress |
0.027 |
52.534 |
55.231 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
18.466 |
3.127 |
0.032 |
|
(c) Deferred tax assets (net) |
6.566 |
19.768 |
0.000 |
|
(d) Long-term Loan and Advances |
96.780 |
95.551 |
91.783 |
|
(e) Other
Non-current assets |
84.078 |
96.089 |
0.000 |
|
Total Non-Current Assets |
2165.435 |
2342.316 |
2400.406 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
1120.790 |
808.931 |
943.420 |
|
(c) Trade
receivables |
313.771 |
468.498 |
257.221 |
|
(d) Cash
and cash equivalents |
121.635 |
78.807 |
79.219 |
|
(e)
Short-term loans and advances |
182.101 |
148.694 |
151.356 |
|
(f) Other
current assets |
13.218 |
14.203 |
0.890 |
|
Total
Current Assets |
1751.515 |
1519.133 |
1432.106 |
|
|
|
|
|
|
TOTAL |
3916.950 |
3861.449 |
3832.512 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6096.092 |
4619.694 |
4258.529 |
|
|
|
Other Income |
10.382 |
9.969 |
8.466 |
|
|
|
TOTAL
(A) |
6106.474 |
4629.663 |
4266.995 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
3513.101 |
2800.633 |
3162.618 |
|
|
|
Purchases of Stock-in-Trade |
1109.881 |
637.693 |
209.185 |
|
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(167.516) |
105.326 |
(38.424) |
|
|
|
Employees benefits expense |
263.032 |
182.969 |
183.624 |
|
|
|
Other expenses |
795.971 |
641.797 |
629.793 |
|
|
|
TOTAL (B) |
5514.469 |
4368.418 |
4146.796 |
|
|
|
|
|
|
|
|
Less |
PROFIT
/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
592.005 |
261.245 |
120.199 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
346.393 |
290.414 |
280.919 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
245.612 |
(29.169) |
(160.720) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
189.877 |
203.224 |
201.426 |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
BEFORE TAX (E-F) (G) |
55.735 |
(232.393) |
(362.146) |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
13.202 |
(74.182) |
(126.683) |
|
|
|
|
|
|
|
|
|
|
PROFIT / (LOSS)
AFTER TAX (G-H) (I) |
42.533 |
(158.211) |
(235.463) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(390.586) |
(232.375) |
3.088 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(348.053) |
(390.586) |
(232.375) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
|
|
FOB Value of Exports |
3599.626 |
2750.535 |
2050.098 |
|
|
TOTAL EARNINGS |
3599.626 |
2750.535 |
2050.098 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials-Cotton |
791.002 |
536.532 |
475.858 |
|
|
|
Stores & Spares |
2.530 |
13.492 |
11.302 |
|
|
|
Capital Goods |
22.598 |
0.000 |
96.497 |
|
|
TOTAL IMPORTS |
816.130 |
550.024 |
583.657 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.26 |
(5.12) |
(7.61) |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
PAT / Total Income |
(%) |
0.70 |
(3.42) |
(5.52) |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.91 |
(5.03) |
(8.50) |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.43 |
(6.14) |
(9.59) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18 |
(0.90) |
(1.23) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
8.71 |
10.78 |
9.66 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.99 |
1.03 |
0.91 |
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 |
379.200 |
487.300 |
514.300 |
|
Reserves & Surplus |
(85.547) |
(243.758) |
(201.225) |
|
Share Application money
pending allotment |
0.000 |
13.500 |
0.000 |
|
Net worth |
293.653 |
257.042 |
313.075 |
|
|
|
|
|
|
long-term borrowings |
1914.715 |
2128.144 |
1836.427 |
|
Short term borrowings |
922.517 |
641.490 |
890.241 |
|
Total borrowings |
2837.232 |
2769.634 |
2726.668 |
|
Debt/Equity ratio |
9.662 |
10.775 |
8.709 |
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 |
4258.529 |
4619.694 |
6096.092 |
|
|
|
8.481 |
31.959 |
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 |
4258.529 |
4619.694 |
6096.092 |
|
Profit |
(235.463) |
(158.211) |
42.533 |
|
|
(5.53%) |
(3.42%) |
0.70% |
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 |
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 |
|
CASE
DETAILS KERALA
HIGH COURT CASE STATUS
: PENDING STATUS OF
INCOME TAX APPEAL
20 OF 2011 THE COMMISSIONER OF INCOME TAX-I, COCHIN
VS.
PATSPIN INDIA LIMITED PET'S
ADV.
: SRI.JOSE JOSEPH, SC, FOR
RES'S ADV.
:
SRI.P.BALAKRISHNAN (E) LAST LISTED ON
: 10.02.2011 CATEGORY
: INCOME
TAX APPEAL
CASE UPDATED ON: MONDAY, MARCH
28, 2011
|
UNSECURED LOAN
Rs.
In Millions
|
Particular |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
Long Term
Borrowings |
|
|
|
Public Deposits |
0.000 |
4.000 |
|
Short Term
Borrowings |
|
|
|
Fixed Deposits |
|
|
|
Public |
4.900 |
0.900 |
|
Total |
4.900 |
4.900 |
PERFORMANCE REVIEW
As mentioned in the last year’s Directors’ Report, there has been steady demand recovery in textile business from second half of FY 2012-13, both in international as well as domestic market. Accordingly, the year witnessed overall improvement in performance of the Company, with sales, operating margin and cash profit reporting substantial increase. Exports of the Company showed handsome increase of 30% over previous year to Rs. 3650.000 Millions, significant part of which came from outsourced yarn business. Amongst various importing countries, demand from China was main factor leading to export led growth of the industry. However, of late, exports to China have been showing a declining trend for various reasons including uncertainty over cotton stocking policies of that country, which has direct impact on their export prices.
Total income during the year was substantially higher at Rs. 6274.000 Millions as against Rs. 4524.300 Millions of the previous years. While Operating profit increased to Rs. 592.000 Millions from Rs. 261.200 Millions, cash profit stood at Rs. 245.600 Millions as compared to previous year loss of Rs. 29.200 Millions. After charging depreciation of Rs. 189.900 Millions, the profit before tax was at Rs. 55.700 Millions as against a loss of Rs. 232.400 Millions in previous year. After provision for deferred Tax of Rs. 13.200 Millions, the Net profit was at Rs. 42.500 Millions in comparison to previous year’s Net Loss of Rs. 58.200 Millions.
During the year, the Company’s operations for the first quarter were adversely affected due to illegal strike at Kanjikode Plant in Kerala, which started on 23.08.2012 and was withdrawn on 17.05.2013, as mentioned by the directors in their last year’s report. As such, the Company’s performance could have been better, but for the loss of production during the strike. Further, power generation through Company owned windmills was adversely affected throughout the year, due to power evacuation problem faced in the State of Tamilnadu by TNEB, causing financial loss to the Company. However, after representations from the industry, recently TNEB has assured proper mechanism for evacuation of power generated by the windmills.
The Directors are glad to inform that the power situation in Tamilnadu has improved considerably and effective from June, 2014, TNEB has withdrawn all power restrictions and load shedding. The Company is also well covered for raw material for FY 2014-15 and as such in spite of signs of slow down in demand and pressure on prices, the Company is hopeful to perform reasonably well during the current financial year.
MANAGEMENT DISCUSSION
AND ANALYSIS
INDUSTRY STRUCTURE
AND DEVELOPMENTS
The importance of textile industry in the national economy is overwhelming because of its contribution to economic growth, exports and employment. Exports of Textiles and Clothing during 2013-14 are estimated at around 37.47 billion USD, which works out to a share of about 12 per cent in the estimated total exports of 313.54 billion USD. This sector currently employs about 35 million workers directly and 47 million workers in allied sectors like Agriculture.
The Indian Textile Industry had faced a challenging year in 2011-12 because of economic crisis in Eurozone and the weak recovery in US, resulting in demand recession. Its working, however, improved in 2012-13 and 2013-14 on account of steady prices of raw material and better demand, both in international and domestic markets.
Production of Yarn
The total production of spun yarn which was 4193 million kgs in 2009-10 expanded to 4713 million kgs in 2010-11, showing a creditable growth of over 12 per cent. However, total production of spun yarn in 2011-12 was lower at 4373 million kgs exhibiting a decline of 7 per cent. For the year 2012-13, total production of spun yarn was placed at 4867 million kgs showing a robust growth of 11 per cent. The total Spun yarn production in 2013-14 is projected at 5295 million kgs. Similarly, production of cotton yarn also escalated from 2009-10 to 2010-11. Production of cotton yarn in 2012-13 was placed at 3583 million kgs and for 2013-14 it is projected at 3923 million kgs. This shows a growth of 9 per cent both in respect of spun and cotton yarn in 2013-14 as compared to the previous year.
Exports of Cotton
Yarn
In pursuance of National Fibre Policy, Government set up in September 2010, Cotton Yarn Advisory Board (CYAB) to advise the Government on matters pertaining to production, consumption and exports of cotton yarn.
Exports of cotton yarn in 2013-14 are estimated at 1350 million kgs valued at 4.7 billion USD as against exports of 1108 million kgs valued at 3.54 billion USD in 2012-13. This shows a growth of 22 per cent in terms of quantity and 33 per cent in terms of value.
China has been increasing its sourcing of cotton yarn from all over the world in view of the high value cotton stock held by it and to meet ever increasing demand for yarn for its domestic knitting and weaving industry. Import of cotton yarn in China increased by 69 per cent from all sources - 1526 million kgs in 2012 against 903 million kgs in 2011. As against this, import of cotton yarn from India in the year 2012 increased by 124 per cent. India’s exports of cotton yarn in 2012 were 326 million kgs as against 111 million kgs in 2011. The share of India’s exports of cotton yarn to China accounts for almost 33 per cent of India’s total exports of cotton yarn. Thus, India has emerged as the leading exporter of cotton yarn to China. However, their exports of cotton yarn to China in the current fiscal are likely to suffer due to changes brought by the Chinese Government in its cotton pricing policy.
Exports of cotton yarn are permitted freely subject to registration of contracts with DGFT. In the year 2013-14, export contracts registered with DGFT were 1415 million kgs, whereas actual exports at 1350 million kgs, is the highest so far.
BUSINESS OVERVIEW
The Company is engaged in the business of manufacture and export of cotton yarn. The yarn is manufactured from the world’s best sources of raw cotton like the American Supima, American Roller Gin SJV, Australian Cotton, DCH 32, MCU- 5, MCH-1,West African, BCI, FTC, Shankar and organic, setting high standards of quality and excellence at all levels of production. The company manufactures yarns of various counts ranging from NE 20s to NE 120s. Permutations and combinations in spinning, finishing processes result in yarns of varied qualities for specific end users. The extensive range of products on company’s portfolio is a testimonial to a continuous process of innovation and expansion in manufacturing technology. The company was amongst the first in India to manufacture compact yarn using the breakthrough technology of compact spinning, and also uses state-of-art machineries across its plants. The company has 2 Plants at Palakkad in Kerala and Ponneri in Tamil Nadu having a capacity of 113,856 spindles, consisting of 79,025 Compact Spinning and 34,831 Ring Spinning, along with Twisting and Gassing capacities. The Company has also having 4 wind mills with total capacity of 5.80 MW, for captive consumption.
The company’s performance improved during F.Y. 2013-14 in line with over all improvement in working of textile mills, mainly on account of robust demand for cotton yarn from China as well as spurt in domestic demand. There is however anxiety in the industry that exports to China may come down due to a change in the cotton policy of China, which was the largest importer of cotton yarn in 2013-14. Further, the power situation which was critical in Tamil Nadu and Kerala in past few years is showing signs of improvement including wind evacuation support from TNEB in respect of power generated through windmills. However, power tariffs are expected to rise soon during the current fiscal. To overcome the problem of shortage of skilled and trained manpower and its increasing cost, it is gratifying that Confederation of Indian Textile Industry (CITI) has already initiated the work for establishment of Textile Sector Skill Council.
OUTLOOK,
OPPORTUNITIES AND THREATS
(a) Global exports of textiles and clothing in 2012 were 708 billion USD, as per WTO figures. China’s share in the global trade in textiles / clothing was 35 per cent and that of India a barely 5 per cent. With the rising costs in China and its deliberate shift in favour of domestic consumption, India has tremendous scope for boosting its share to a more respectable figure. Further, by 2022, world exports of textiles / clothing are projected to increase to 1,200 billion USD. The expectation is that India’s exports would rise from 37.47 billion USD to 120 billion USD by 2022. This will provide immense potential to India for enhancing its exports.
On the domestic front also India is poised for a healthy growth, in view of rising population, sustained increase in per capita income and disposable surplus, favourable demographic profile and changing lifestyle. Surveys carried out by Textiles Committee also corroborate this. Besides, Government of India is becoming increasingly sensitive to the needs of the textile industry and taking ameliorative measures in regard to debt restructuring scheme, extension of TUFS and TMC in the Twelfth Five Year Plan etc. Happily, new Government has announced that it will get necessary impetus for boosting exports of textiles. This augurs well for higher of textiles from the country. Another area is rapid growth of technical textiles for which Government has been providing encouraging support.
The Ministry of Commerce has been announcing exporter-friendly measures in the Foreign Trade Policy. Favourable policy changes have been made in Focus Product Scheme, Market Product Scheme, Market Linked Focus Product Scheme, Incremental Exports Incentivisation Scheme, Liberalized EPCG Scheme, etc. All these measures will boost exports of textiles and clothing.
Above all, India is in a unique position of having an integrated textile set-up endowed with presence across all the textile value chain from fibres to fashion garments.
All these favourable factors indicate extremely optimistic and positive future for the healthy growth of the Indian textile industry
(b) The health of textile units is primarily dependent on adequate availability of quality cottons at competitive prices. With the augmented supply of quality seed and larger production of hybrids and Bt. cottons, production of cotton in the coming season 2013-14 is forecast to be comfortable. However, prospects for cotton crop in the season 2014-15 are uncertain on account of delayed and weak monsoon.
(c) Inadequate Duty Drawback rates run counter to the well-accepted Government Policy of not taxing exports. It may be stated that Duty Drawback is not incentive but only refund of indirect taxes suffered by export products. Further, remission of duties suffered by exported products is totally WTO-compliant. One can only hope that Government will revise upward Duty Drawback rates to reflect the actual incidence of duties and taxes borne by exported textile products. Texprocil has been pursuing this matter with Government by providing adequate justification in a logical manner. It is expected that new Government will deal with this problem dispassionately.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10407050 |
01/02/2013 |
221,628,000.00 |
CENTRAL BANK OF INDIA |
WILLINGDON ISLAND BRANCH, COCHIN - 682003, KERALA, |
B69188845 |
|
2 |
10343024 |
01/02/2013 * |
150,000,000.00 |
STATE BANK OF TRAVANCORE |
OVERSEAS BRANCH, CIVIL LINES ROAD,, PALARIVATTOM, |
B68990746 |
|
3 |
10343020 |
13/03/2012 |
448,000,000.00 |
STATE BANK OF TRAVANCORE |
OVERSEAS BRANCH, CIVIL LINES ROAD, PALARIVATTOM, |
B35391911 |
|
4 |
10337739 |
01/02/2013 * |
200,000,000.00 |
EXPORT- IMPORT BANK OF INDIA |
FLOOR 21, CENTER ONE BUILDING, WORLD TRADE CENTER, CUFFE PAADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
B70187430 |
|
5 |
10193138 |
29/06/2010 * |
31,300,000.00 |
STATE BANK OF INDIA |
COMMERCIAL BRANCH FIRST FLOOR, VANKARATH TOWERS |
A89317473 |
|
6 |
10188729 |
11/12/2009 * |
6,901,711.54 |
EXPORT- IMPORT BANK OF INDIA |
FLOOR 21, CENTER ONE BUILDING, WOLD TRADE CENTER, CUFFE PAADE, MUMBAI - 400005, MAHARASHTRA, INDIA |
A76151869 |
|
7 |
10166684 |
29/06/2010 * |
10,000,000.00 |
IDBI BANK LIMITED |
KOCHI MAIN BRANCH, PANAMPILLI NAGAR, KOCHI - 682036, KERALA, INDIA |
A89493126 |
|
8 |
10169618 |
29/06/2010 * |
25,000,000.00 |
STATE BANK OF TRAVANCORE |
OVERSEAS BRANCH JJ BUILDING, CIVIL LINES ROAD PAL |
A89575740 |
|
9 |
10173888 |
29/06/2010 * |
46,500,000.00 |
ORIENTAL BANK OF COMMERCE |
OPPOSITE ST. BASILICA CHURCH, BROADWAY, COCHIN - 682031, KERALA, INDIA |
A90118589 |
|
10 |
10166510 |
29/06/2010 * |
8,500,000.00 |
THE KARUR VYSYA BANK LIMITED |
40/1045C,1ST FLOOR, AMIRTHA TOWERS, OPPOSITE MAHARAJA 'S GROUND, M.G ROAD, ERNAKULAM - 682011, KERALA, INDIA |
A90163080 |
* Date of charge modification
FIXED ASSETS
- Land – Freehold
- Building
- Plant and Machinery
- Wind Turbine
- Electrical Installations
- Furniture
- Office Equipment
- Vehicles
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.61.24 |
|
|
1 |
Rs.98.67 |
|
Euro |
1 |
Rs.77.97 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
NTH |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
4 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
4 |
|
--PROFITABILIRY |
1~10 |
3 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--CREDIT LINES |
1~10 |
3 |
|
--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 |
YES |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
NO |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
29 |
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.