MIRA INFORM REPORT

 

 

Report Date :

06.09.2014

 

IDENTIFICATION DETAILS

 

Name :

WELSPUN SYNTEX LIMITED

 

 

Registered Office :

Survey No. 394(P), Saily, Silvassa, Union Territory of  Dadra and Nagar Haveli, Daman and Diu

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

31.03.1983

 

 

Com. Reg. No.:

56-000045

 

 

Capital Investment / Paid-up Capital :

Rs.392.396 Millions

 

 

CIN No.:

[Company Identification No.]

L99999DN1983PLC000045

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

SRTW00080D

MUMW02090E

MUMM25361A

 

 

PAN No.:

[Permanent Account No.]

AAACW0489L

 

 

 

Legal Form :

A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges.

 

 

Line of Business :

Manufacturer and Exporter of Polyester Texturized Filament Yarn, Nylon Filament Yarn, etc.

 

 

No. of Employees :

Information declined by the management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (45)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track record.

 

General financial position of the company seems to be decent. Profitability of the company is fair.

 

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

Restricted

 

C2

Off-credit

 

D

 

 

INDIAN ECONOMIC OVERVIEW

 

N E W S

 

As per the latest IMF study, the total weigh of emerging markets in the GDP of the world on a purchasing power parity basis has seen a sizeable shift. It highlights how as against 51 % in 2005, the emerging economies now account for close to 56 % of the global purchasing power GDP as per the latest survey. And with the emerging economies growing at a faster rate than their developed counterparts, there are every possibility that the their share goes up further in the coming years.  China may surpass the US over the next few years.

 

Politics and economics are very intricately connected. They tend to influence each other in ways that could be very complex and far-reaching. The prospects of the India’s economy have been seriously compromised due to political corruption. High inflation, poor standard of living are to a great extent a result of rampant corruption in the country. China on the other hand, seems to be facing diametrically opposite challenge. American hedge fund manager Jim Chanos has been keenly following the political and economic development in the dragon economy and has figured out something that is quite worrying. He is of the view that the Chinese economy could be heading toward trouble on account of new Chinese President Xi Jingping’s very aggressive anti-corruption drive. Chanos believes tat many things such as apartment sales, luxury products, etc. were largely bought with dirty money. And it is now beginning to impact consumption. This may indeed be bad news for an economy that is struggling to transition from an investment-driven export-oriented economy to a domestic consumption-driven economy.

 

A study published by Firstpost has revealed that asset classes like real estate and equities were the biggest beneficiaries of the liberalization policies.  A firm called Ciane Analytics studied returns from assets including equities, gold, fixed deposits, G-Secs and real estate since 1991. Real estate outperformed every other asset classes during the 23-year period with an annualized return of 20 % ! Equities came in second with annualized return of 15.5 % ! However, while these returns may seem mouthwatering, the fact is that the return from equities adjusted for inflation came down to just 7.1 %.

 

Some brief news are as under

. R-Power to buy Jaypee’s hydro assets

. Investors await justice in NSEL case

. India seeks MFN status from Pakistan ahead of meeting

. Ukrain’s clashes with rebels hinder MH17 crash investigation

. India exploring merger of state-owned hydro PSUs

..Higher costs weigh down profit growth to slowest in 9 quarters

..Wal-Mart to expand wholesale business in India

. GMR group moves to strengthen balance sheet

. Central Bank to sell 4 % stake to Life Insurance Corporation

. Tata Chemicals plans to raise up to Rs 10000 mn.

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

BBB (Long Term Bank Facilities)

Rating Explanation

Moderate degree of safety and moderate credit risk.

Date

29.10.2013

 

Rating Agency Name

CARE

Rating

A3+ (Short Term Bank Facilities)

Rating Explanation

Moderate degree of safety and higher credit risk.

Date

29.10.2013

 

 

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 DECLINED BY

 

Name :

Madam Sangita

Designation :

Account Officer

Contact No.:

91-9870079734

Date :

04.09.2014

 

 

LOCATIONS

 

Registered Office/ Factory 1 :

Survey No.394 (P), Saily, Silvassa, Union Territory of  Dadra and Nagar Haveli, Daman and Diu, India

Tel. No.:

91-260-2640596/ 2640599

Mobile No.:

91-9870079734 (Madam Sangita)

Fax No.:

91-260-2640597

E-Mail :

welspun@vsnl.com

kaushik_kapasi@welspun.com

Website :

www.welspunsyntex.com

Location:

Owned

 

 

Corporate Office  :

9th Floor, Trade World, “B” Wing, Kamala Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel No.:

91-22-24908000/ 01/ 02/ 03 /04/ 66136000

Fax No.:

91-22-24908020/ 21

E-Mail :

welspun@bom5.vsnl.net.in

nilesh_javkar@welspun.com

Website :

http://www.welspunsyntex.com

 

 

Factory 2 :

Palghar Plant:

Plot No.14/15, Dewan Industrial Estate, Palghar, District Thane, Maharashtra, India

Tel. No.:

91-952525-252772/ 252662

Fax No.:

91-952525-250749

 

 

Marketing Office :

3001/3002, 3rd Floor, Jash Tex and Yarn Market, 1-Ring Road, Surat - 395002, Gujarat, India

Tel. No.:

91-261-2327863/ 2336125

Fax No.:

91-261-2312604

           

 

DIRECTORS

 

As on 31.03.2014

 

Name :

Mr. B.K. Goenka

Designation :

Chairman

 

 

Name :

Mr. R.R. Mandawewala

Designation :

Director

 

 

Name :

Mr. B.A. Kale

Designation :

Executive Director (with effect from 30.10.2010)

 

 

Name :

Mr. Atul Desai

Designation :

Director

 

 

Name :

Mr. Raj Kumar Jain

Designation :

Director

 

 

Name :

Mr. M.K. Tandon

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Mr. K. N. Kapasi

Designation :

Company Secretary

 

 

Name :

Madam Sangita

Designation :

Account Officer

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As on 30.06.2014

 

Category of Shareholders

No. of Shares

Percentage of holding

(A) Shareholding of Promoter and Promoter Group

 

 

http://www.bseindia.com/include/images/clear.gif(1) Indian

 

 

http://www.bseindia.com/include/images/clear.gifIndividuals / Hindu Undivided Family

35429

0.09

http://www.bseindia.com/include/images/clear.gifBodies Corporate

25658167

65.39

http://www.bseindia.com/include/images/clear.gifSub Total

25693596

65.48

http://www.bseindia.com/include/images/clear.gif(2) Foreign

 

 

Total shareholding of Promoter and Promoter Group (A)

25693596

65.48

(B) Public Shareholding

 

 

http://www.bseindia.com/include/images/clear.gif(1) Institutions

 

 

http://www.bseindia.com/include/images/clear.gifMutual Funds / UTI

105

0.00

http://www.bseindia.com/include/images/clear.gifFinancial Institutions / Banks

8231936

20.98

http://www.bseindia.com/include/images/clear.gifInsurance Companies

228837

0.58

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

8460878

21.56

http://www.bseindia.com/include/images/clear.gif(2) Non-Institutions

 

 

http://www.bseindia.com/include/images/clear.gifBodies Corporate

658671

1.68

http://www.bseindia.com/include/images/clear.gifIndividuals

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 1 lakh

2771190

7.06

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 1 lakh

1178963

3.00

http://www.bseindia.com/include/images/clear.gifAny Others (Specify)

476270

1.21

http://www.bseindia.com/include/images/clear.gifNon Resident Indians

203006

0.52

http://www.bseindia.com/include/images/clear.gifClearing Members

149174

0.38

http://www.bseindia.com/include/images/clear.gifTrusts

4302

0.01

http://www.bseindia.com/include/images/clear.gifHindu Undivided Families

119788

0.31

http://www.bseindia.com/include/images/clear.gifSub Total

5085094

12.96

Total Public shareholding (B)

13545972

34.52

Total (A)+(B)

39239568

100.00

(C) Shares held by Custodians and against which Depository Receipts have been issued

0

0.00

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

Total (A)+(B)+(C)

39239568

0.00

 

 

 

Total (A)+(B)

39239568

100.00

 

 

 

(C) Shares held by Custodians and against which Depository Receipts have been issued

 

 

http://www.bseindia.com/include/images/clear.gif(1) Promoter and Promoter Group

0

0.00

http://www.bseindia.com/include/images/clear.gif(2) Public

0

0.00

http://www.bseindia.com/include/images/clear.gifSub Total

0

0.00

 

 

 

Total (A)+(B)+(C)

 

39239568

100.00

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Exporter of Polyester Texturised Filament Yarn, Nylon Filament Yarn.

 

 

GENERAL INFORMATION

 

No. of Employees :

Information declined by the management

 

 

Bankers :

·         Bank of Baroda, Silvasa, Dadra and Nagar Haveli

·         Tel. No.: 91-260-2640352

 

·         State Bank of Bikaner and Jaipur

·         IDBI Bank Limited

·         Central Bank of India

·         State bank of India

 

 

Facilities :

(Rs. In Millions)

Secured Loan

As on

31.03.2014

As on

31.03.2013

LONG TERM BORROWINGS

 

 

Term Loans from Banks

 

 

Rupee Loans

683.390

300.703

Foreign Currency Loans

475.625

544.364

Buyer's Credit from Banks

0.000

109.900

SHORT TERM BORROWINGS

 

 

Working capital loans from Banks

 

 

Rupee Loans

419.418

368.020

Foreign Currency Loans

40.263

46.576

Total

1618.696

1369.563

 

Long-term borrowings

 

(a) Term loans from banks except (g) and (h) below, are secured by way of first charge on immovable and movable assets of the Company, both present and future, ranking pari passu and also secured by second charge on current assets subject to prior charge in favour of banks for working capital facilites.

(b) Term loan of Rs.123.957 Millions (` Nil) from Central Bank of India carries interest @ 13.00% p.a. and is repayable in 28 quarterly instalments commencing from 28 February 2016.

(c) Term loan of Rs.4,4.761 Millions (Rs.300.703 Millions) from Industrial Development Bank of India carries interest @ 12.50 % p.a. and is repayable in 28 stepped-up quarterly instalments ranging from 2.50% to 4.75% per quarter of disbursed loan amount commencing from 01 April 2014.

(d) Converted rupee term loan of Rs.10.588 Millions (Rs.52.630 Millions) from State Bank of Bikaner and Jaipur carries interest @ 13.50% p.a. and is repayable in single instalment on 15 April 2014.

(e) Rupee term loan of Rs.113.032 Millions (Rs. Nil) from State Bank of Bikaner and Jaipur carries interest @ 13.50% p.a. and is repayable in 13 stepped-up quarterly instalments ranging from 3.06% to 5.10% of disbursed loan amount.

(f) Term loan of Rs.88.554 Millions (Rs.198.776 Millions) from State Bank of Bikaner and Jaipur carries interest @ LIBOR+4.00% p.a. and is repayable in 7 stepped-up quarterly instalments ranging from 5.10% to 5.73% of disbursed loan amount.

(g) Term loan of Rs.150.000 Millions (Rs.Nil) from State Bank of Bikaner and Jaipur is secured by first charge, ranking pari passu, by way of hypothecation of company’s raw materials, goods-in-process, finished goods, stores, spares and book debts and second charge, ranking pari passu, on fixed assets (immovebale) of the company. It carries interest @ 13.50 % p.a. and is repayable in 6 quarterly instalments of Rs.25.000 Millions each starting from 31 December 2014.

(h) Converted rupee term loan of Rs.62.500 Millions (Rs.178.642 Millions) from State Bank of Bikaner and Jaipur is secured by first charge ranking pari passu by way of hypothecation of company’s raw materials, goods-in-process, finished goods, stores, spares, book debts and other current assets and second charge, ranking pari passu, on fixed assets (immoveable) of the company. It carries interest @ 12.50% p.a. and is repayable in 2 quarterly equal instalments of Rs.31.250 Millions.

(i) Term loan of Rs.434.122 Millions (Rs.287.996 Millions) from Bank of Baroda, Dubai carries interest @ LIBOR+4.25% p.a. and is repayable in 28 quarterly instalments ranging from 2.5% to 4.75% of disbursed loan amount commencing from 30 June 2014.

(j) Term loan of Rs. Nil (Rs.9.247 Millions) from Bank of Baroda carrying interest @ 13.25% p.a. has been fully repaid during the year.

(k) Term loan of Rs. Nil (Rs.8.700 Millions) from State Bank of India carrying interest @ 14.15% p.a. has been fully repaid during the year.

(l) Term loan of Rs. Nil (Rs.7.667 Millions) from State Bank of Bikaner and Jaipur carrying interest @ 13.90% p.a. has been fully repaid during the year.

(m) Buyer’s credit from bank of Rs. Nil (Rs.109.900 Millions) carrying interest @ LIBOR+2.50% p.a. has been fully repaid during the year.

 

Short-term borrowings

 

(a) Working capital loans from banks are secured by way of hypothecation of raw materials, finished goods, goods-in-process, stores and spares and book debts and second charge by way of mortgage on entire fixed assets of the Company.

(b) Inter-corporate deposits of Rs. Nil (12,500,000) carrying interest @ 9% p.a. has been fully repaid during the year.

 

 

 

Banking Relations :

---

 

 

Auditors :

 

Name :

MGB and Company

Chartered Accountants

Address :

Jolly Bhavan No.2, 1st Floor, 7, New Marine Lines, Churchgate, Mumbai – 400020, Maharashtra, India

Tel. No.:

91-22-66332330

Fax No.:

91-22-66351545

E-Mail :

mgbco@mgbco.com

PAN No.:

www.mgbco.com

 

 

Other related parties with whom transactions have taken place during the year or balances outstanding as on the last day of the year.

·         Welspun India Limited

·         Welspun Corp Limited

·         Welspun Retail Limited

·         Welspun Steel Limited

·         Welspun Wintex Limited

·         Welspun Realty Private Limited

·         Goodvalue Polyplast Limited

·         Welspun Fintrade Limited

·         Welspun USA Inc.

·         Welspun Zucchi Textiles Private Limited

·         Krishiraj Trading Limited

·         Welspun Captive Power Generation Limited

 

 

CAPITAL STRUCTURE

 

As on 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

9,20,00,000

Equity Shares

Rs.10/- each

Rs.920.000 Millions

2,80,00,000

Convertible Cumulative Preference Shares

Rs.10/- each

Rs.280.000 Millions

 

Total

 

Rs.1200.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

3,92,39,568

Equity Shares

Rs.10/- each

Rs.392.396 Millions

 

 

 

 

 

NOTE

 

Reconciliation of the equity shares outstanding at the beginning and at the end of the year

 

Equity Shares

2014

 

No. of Shares

Amount

At the beginning of the year

39,239,568

3923.96

Movements during the year

--

--

Outstanding at the end of the year

39,239,568

3923.96

 

 

 

Terms / right attached to equity shares

 

The Company has only one class of equity shares having a par value of Rs. 10 per share. All issued shares rank pari-passu and have same voting rights per share. The Company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

 

In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

 

Details of shareholders holding more than 5% shares in company

 

Equity Shares

2014

 

No. of Shares

Percentage (%) Holding

Krishiraj Trading Limited, India

23,544,022

60.00%

Welspun Fintrade Limited, India

--

--

IFCI Limited

7,741,599

19.73%

 

 

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

392.396

392.396

339.147

(b) Reserves & Surplus

737.243

682.962

450.116

(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)

1129.639

1075.358

789.263

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

1159.015

954.967

599.934

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

58.779

66.182

60.910

Total Non-current Liabilities (3)

1217.794

1021.149

660.844

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

699.146

815.449

385.929

(b) Trade payables

710.112

565.523

684.325

(c) Other current liabilities

473.143

536.359

434.447

(d) Short-term provisions

179.208

36.399

73.462

Total Current Liabilities (4)

2061.609

1953.730

1578.163

 

 

 

 

TOTAL

4409.042

4050.237

3028.270

 

 

 

 

II.      ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2090.979

1347.003

1048.391

(ii) Intangible Assets

1.978

1.641

0.393

(iii) Capital work-in-progress

70.877

624.128

206.607

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

121.702

150.800

223.360

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

196.312

149.593

163.222

(e) Other Non-current assets

44.757

49.141

48.636

Total Non-Current Assets

2526.605

2322.306

1690.609

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

20.000

0.000

0.000

(b) Inventories

782.778

737.545

639.709

(c) Trade receivables

454.647

412.115

281.319

(d) Cash and cash equivalents

108.073

78.728

150.045

(e) Short-term loans and advances

418.097

381.991

207.006

(f) Other current assets

98.842

117.552

59.582

Total Current Assets

1882.437

1727.931

1337.661

 

 

 

 

TOTAL

4409.042

4050.237

3028.270

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Income

8963.815

7761.182

6115.505

 

 

Other Income

31.423

25.047

20.030

 

 

TOTAL                                     (A)

8995.238

7786.229

6135.535

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

6132.489

5175.112

4053.534

 

 

Purchases of Stock-in-Trade

0.000

72.611

62.316

 

 

Changes in inventories of finished goods, work-in-progress and Stock-in-Trade

(4.625)

24.599

(63.003)

 

 

Employees benefits expense

388.368

337.589

277.357

 

 

Other expenses

1848.673

1681.499

1390.150

 

 

TOTAL                                     (B)

8364.905

7291.410

5720.354

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

630.333

494.819

415.181

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

238.965

186.470

173.419

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

391.368

308.349

241.762

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

191.104

148.103

126.127

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

200.264

160.246

115.635

 

 

 

 

 

Less

TAX                                                                  (H)

3.359

0.000

-0.089

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

196.905

160.246

115.724

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

FOB Value of Exports

2050.960

1870.200

1372.008

 

TOTAL EARNINGS

2050.960

1870.200

1372.008

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

1619.541

1183.612

719.882

 

 

Capital Goods

123.143

485.150

134.129

 

 

Stores & Spares

125.992

120.870

46.809

 

TOTAL IMPORTS

1868.676

1789.632

900.82

 

 

 

 

 

 

Earnings Per Share (Rs.)

5.02

6.23

4.47

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

2.19

2.06

1.89

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

2.23

2.06

1.89

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

4.75

4.89

4.45

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.18

0.15

0.15

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

1.64

1.65

1.25

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

0.91

0.88

0.85

 

 

 

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

339.147

392.396

392.396

Reserves & Surplus

450.116

682.962

737.243

Net worth

789.263

1075.358

1129.639

 

 

 

 

long-term borrowings

599.934

954.967

1159.015

Short term borrowings

385.929

815.449

699.146

Total borrowings

985.863

1770.416

1858.161

Debt/Equity ratio

1.249

1.646

1.645

 

 

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

6115.505

7761.182

8963.815

 

 

26.910

15.495

 

 

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

6115.505

7761.182

8963.815

Profit

115.724

160.246

196.905

 

1.89%

2.06%

2.20%

 

 

 

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

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)

No

21]

Market information

----------------------

22]

Litigations that the firm / promoter involved in

----------------------

23]

Banking Details

Yes

24]

Banking facility details

Yes

25]

Conduct of the banking account

----------------------

26]

Buyer visit details

----------------------

27]

Financials, if provided

Yes

28]

Incorporation details, if applicable

Yes

29]

Last accounts filed at ROC

Yes

30]

Major Shareholders, if available

Yes

31]

Date of Birth of Proprietor/Partner/Director, if available

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

 

 

UNSECURED LOAN

Rs. In Millions

Particular

As on

31.03.2014

As on

31.03.2013

SHORT TERM BORROWINGS

 

 

Foreign Currency Loans - Buyers Credit

239.465

388.353

Inter Corporate Deposit

0.000

12.500

Total

239.465

400.853

 

 

CORPORATE INFORMATION

 

Subject is a Company incorporated under the Companies Act, 1956. Subject was established in 1983. Since its inception, it has grown manifold and today is amongst the largest manufacturers and exporters of Polyester Texturised Filament Yarn, Nylon Filament Yarn from India.

 

 

OPERATIONS

 

During the year, Net sales and services and Gross Profit before Interest and Depreciation were of Rs. 8963.815 Millions

and Rs.630.333 Millions respectively as compared to Rs. 7761.182 Millions and Rs. 494.819 Millions respectively for the previous year. Net sales and services of the Company and Gross Profits have thus increased by 15.50% and 27.39 % respectively over the previous year.

 

Exports during the financial year 2013-14 were of Rs. 2144.923 Millions as compared to Rs. 2133.530 Millions during the previous year.

 

Power cost is increased due to increase in power tariff both in Palghar, Maharashtra as well as at Rakholi, Silvassa. Interest cost has been increased due to rise in rate of interest and increase in borrowing for working capital. Foreign exchange difference losses were of 61.430 Millions as against Rs. 110559 Millions during the previous year in view of fluctuation in foreign exchange. Packing, Dyes and chemical cost have also increased due to strong USD in first two quarters. Market was comparatively weak during the third quarter. The Company has developed market for carpet yarn, yarn for Bath rugs and spandex covered yarn for denim industry. In spite of increase in cost, the earnings have increased due to several steps taken by the Company during the year for improving margins.

 

EXPANSION

 

The Company has completed the expansion project at approximate cost of Rs.1500.000 Millions by 15th December 2013. It has increased Texturised, spinning capacity of Nylon mother yarn and produced new product Bulk continuous filament yarn. Now the Company proposes to install additional machinery for manufacturing BCF yarn at an installed capacity of 540 MT per annum, the cost of which alongwith accessories are aggregating to Rs.100.000 Millions.

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

INDUSTRY STRUCTURE, SCENARIO AND DEVELOPMENT

 

Though the Indian textile industry uses all kind of fibres / yarn, it continues to be predominantly cotton based. The consumption of cotton fibre visŕ- vis other fibres / yarn in India is 62 : 38, while the global consumption of fibres / yarn is 40 : 60 in favour of non-cotton fibres / yarn. However, in India also the consumption of manmade fibre / yarn is increasing very fast and expected to reach the world level in near future. The man-made fibres/ yarns industry, particularly the polyester segment, has achieved significant growth during the last two decades. The sharp increase in production of polyester fibre and yarn has made India emerge as the 5th largest producer of man-made fibre/filament yarn in the world.

 

Owing to a weak domestic and global economic scenario, and correction in cotton prices, demand for man-made fibre/yarn rose only at a moderate pace in 2012-13. During the year, production of blended fabric increased by about 9.6 per cent y-o-y while that of non-cotton fabric declined by 8.6 per cent y-o-y. However, over the long term, demand for man-made fibre/ yarn will improve as a result of increasing competitiveness of polyester vis--vis the relatively higher-priced cotton, and growing demand from the non-apparel segments.

 

Overcapacity is the main characteristic of the domestic POY industry with operating rates declining to about 61 per cent in 2012-13 from 67 per cent in 2011-12. Demand for POY is mainly impacted by the comparative prices of cotton yarn, blended yarn, and VSF, and also their relative availability. In 2012-13, margins for POY players remained under pressure to average at Rs 13 per kg because of high input prices and overcapacity.

 

Margins of POY producers are calculated as domestic prices of POY (126 D) less the raw material prices of PTA and MEG (0.86 units of PTA + 0.33 units of MEG per 1 unit of POY). Over the past five years, margins are on downward trend owing to volatility in input cost of because of fluctuation in crude oil prices coupled with supply concerns. Margins have almost halved to Rs 13 per kg in 2012-13 from Rs 24 per kg in 2007-08. Additionally, PFY can be substituted with blended yarn, cotton yarn as well as viscose yarns depending on the end use and hence the demand is impacted by the comparative pricing, and their relative availability

 

Margins have started to improve gradually since 2012-13 on account of increased prices of substitute cotton yarn prices and hence, improvement in demand for POY.

 

Once, a major driver of India’s growth, the textile sector has been witnessing a tumultuous time in the past decade with countries such as China, Bangladesh and even Vietnam throwing a stiff competition in the global arena. While China trebled its market share to 33% between 2000 and 2012, India’s share crept up to 5.3% from 3.6%.

 

Indian textile industry has shown a strong growth, sustained by strong domestic consumption.

 

India has the potential to increase its textile and apparel share in world trade. The Indian textiles industry produces a wide variety of fibres, from cotton to manmade, wool, silk, jute, and multiple blends catering to different demands and needs of companies. India has become a popular destination for many big global retailers due to its strength of vertical and horizontal integration. The quality of the country’s products is seen in the repeat orders from these global companies and the significant growth in their outsourcing from India.

 

India earned nearly US$ 15 billion through exports of textiles and apparel in the first six months of the current financial year 2013-14, according to the latest data released by the Reserve Bank of India (RBI).

 

Further, in FY15, the exports are expected to grow by 15.75%. Given the growth in textile exports due to the investment inflows to this sector to expand the capacity in the entire value chain, the working group constituted by the Planning Commission has estimated the overall growth for exports at 15% with an export target of US $ 65 bn by end of Twelfth Five Year Plan (FY17).

 

China has become close to a developed economy now. The costs are soaring, especially on the labour front and they have no advantage on power. There is a huge gap in fibre pricing; so they are looking to import textile goods – be it home textiles or apparels.

 

A pick up in merchandise exports and moderation in imports, particularly gold imports, saw India’s current account deficit (CAD) narrow sharply to $4.2 billion (0.9 per cent of GDP) in the October-December period of 2013-14.

 

Industry body FICCI has suggested measures like labour reforms and keeping textile industry under the lowest slab of GST to boost the country’s textile and clothing industry and raise India’s share in world exports. A strong economic revival package and right implementation of policies by a fresh Government can help create as many as 150 million jobs in the next 10 years.

 

PRODUCT WISE PERFORMANCE

 

The Company manufactures Partially Oriented Yarn (POY), Texturised yarn/ Dyed yarn.

 

Revenue from POY were of Rs. 1213.983 Millions as compared to Rs.1155.467 Millions of previous year, from Texturised Yarn/Dyed yarn were of Rs. 8190.675 Millions as compared to Rs. 6840.416 Millions of previous year.

 

OUTLOOK

 

It has increased capacity of texturised yarn, mother yarn splitting (mother yarn-polyester) capacities and introduced BCF (Bulk Continuous Filament) Yarn which is useful for making Carpets. This has resulted in increase in turnover of the Company.

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

 

Charge Holder

Address

Service Request Number (SRN)

1

10434382

30/12/2013 *

150,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GROUND FLOOR, WELSPUN HOUSE, KAMALA MILLS COMPOUND, S.B. MARG,, MUMBAI, MAHARASHTRA - 400001, INDIA

B95161246

2

10434375

20/06/2013

715,400,000.00

STATE BANK OF BIKANER AND JAIPUR

WELSPUN HOUSE, GROUND FLOOR, KAMALA MILLS COMPOUND, S.B.MARG,, LOWER PAREL, MAHARASHTRA - 400013, 
INDIA

B78535796

3

10414631

04/03/2013

942,500,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICE BRANCH, FIRST FLOOR, 
3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI, MAHARASHTRA - 400001, INDIA

B71756605

4

10397520

09/01/2013

100,000,000.00

STATE BANK OF BIKANER AND JAIPUR

WELSPUN HOUSE, GROUND FLOOR, KAMALA MILLS COMPOU 
ND, S. B. MARG, LOWER PAREL, MUMBAI, MAHARASHTRA - 400013, INDIA

B66074808

5

10389103

05/11/2012

470,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI, MAHARASHTRA - 400001, INDIA

B63020044

6

10374114

30/12/2013 *

160,000,000.00

CENTRAL BANK OF INDIA

CORPORATE FINANCE BRANCH, 1ST FLOOR, MMO BUILDING, 
M G ROAD, FORT, MUMBAI, MAHARASHTRA - 400023, INDIA

B96172739

7

10374558

30/12/2013 *

470,000,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHA 
ND HIRACHAND MARG, BALLARD PIER,, MUMBAI, MAHARASHTRA - 400001, INDIA

B96755483

8

10363603

30/12/2013 *

500,000,000.00

IDBI BANK LIMITED

IDBI TOWERWTC COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B94779220

9

10310958

30/12/2013 *

350,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (E), MUMBAI, MAHARASHTRA - 400009, INDIA

B95161188

10

10299300

30/12/2013 *

81,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD, DANA BUNDER, MASJID (E),, MUMBAI, MAHARASHTRA - 400009, INDIA

B96178785

11

10246936

08/10/2010

50,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD,, DANA BUNDER, MASJID (E), MUMBAI, MAHARASHTRA - 400009, INDIA

A97014567

12

10234411

30/12/2013 *

219,100,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD,, DANA BUNDER, MASJID (E),, MUMBAI, MAHARASHTRA - 400009, INDIA

B96179239

13

10112083

21/11/2011 *

468,500,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ BUILDING, 73, SANT TUKARAM ROAD,, DANA BUNDER, MASJID (E),, MUMBAI, MAHARASHTRA - 400009, INDIA

B26651638

14

10004191

03/12/2013 *

63,400,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER,, MUMBAI, MAHARASHTRA - 400001, INDIA

B93821452

15

80040558

30/03/2002

22,200,000.00

AXIS BANK LIMITED

MAKER TOWER-'F', CURRE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

-

16

80040561

20/12/2013 *

1,601,500,000.00

BANK OF BARODA

CORPORATE FINANCIAL SERVICES BRANCH NO.3, WALCHAND HIRACHAND MARG, BALLARD PIER,, MUMBAI, MAHARASHTRA - 400001, INDIA

B95529293

17

80040612

01/04/1995 *

90,000,000.00

STATE BANK OF BIKANER AND JAIPUR

GIRIRAJ , DANA BUNDER, MUMBAI, MAHARASHTRA - 400009, INDIA

-

18

80040562

16/08/1994

17,500,000.00

STATE BANK OF BIKANER AND JAIPUR

73, SANT TUKARAM ROAD, DANA BUNDER, MUMBAI, MAHARASHTRA - 400009, INDIA

-

 

* Date of charge modification

 

 

INDEX OF CHARGES: NO CHARGES EXIST FOR THE COMPANY

 

 

FIXED ASSETS

 

Tangible Assets

·         Freehold Land

·         Buildings

·         Plant and Machinery

·         Vehicles

·         Furniture and Fixture

·         Equipments

·         Computers

 

Intangible Assets

·         Software

 

 

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2014

s, In Millions

 

Particulars

 

Quarter Ended

30.06.2013

Unaudited

1

Income from Operations

 

 

(a) Net sates/income from operations (Net of excise duty)

2019.678

 

(b) Other Operating Income

38.246

 

Total income from operations (net)

2057.923

2

Expenses

 

 

(a) Cost of materials consumed

1216.308

 

(b) Purchases of stock-in trade

--

 

(c) Changes in inventories of finished goods. work-in-progress and stock in trade

77.768

 

(d) Employee benefits expense

111.913

 

(e) Depreciation and Anmortisation Expenses

53.321

 

(f) Other Expenses

440.153

 

Total expenses

1899.463

3

Profit/ (Loss) from operations before other Income, finance costs and exceptional Items (1-2)

158.459

4

Other Income

3.495

5

Profit/ (Loss) from operations before other income, finance costs and exceptional items (3+4)

161.954

6

Finance Costs

61.310

7

Profit/ (Loss) from ordinary activities after finance cost but before exceptional items (5-6)

100.645

8

Exceptional items

--

9

Profit/ (Loss) from ordinary activities before tax (7+8)

100.645

10

Tax expenses

21.096

 

Less: MAT credit entitlement

(21.096)

11

Net Profit / (Loss) from ordinary activities after tax (9-10)

100.645

12

Extraordinary item (net of tax expense)

--

13

Net Profit / (Loss) for the period (11-12)

100.645

14

Share of profit' (loss) of associates

--

15

Minority Interest

--

16

Net Profit/ (Loss) after taxes, minority interest and share of profit/(loss) of associates (13+14+15)

100.645

17

Paid up equity share capital (Face Value of Rs10/-

each)

392.396

18

Reserve excluding Revaluation Reserve as per Balance Sheet of previous accounting year

--

19

Earnings per share (before extraordinary items) of Rs.10/- each (not annualised):

 

 

(a) Basic

2.56

 

(b) Diluted

2.56

 

 

 

A

PARTICULARS OF SHAREHOLDING

 

1

Public Shareholding

 

 

- Number of shares

1,35,45,972

 

- Percentage of shareholding

34.52%

2

Promoters and Promoter group shareholding

 

 

a) Pledged / Encumbered

 

 

- Number of shares

Nil

 

- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)

Nil

 

- Percentage of shares (as a % of the total Share Capital of the Company)

Nil

 

b) Non Encumbered

 

 

- Number of shares

2,56,93,596

 

- Percentage of shares (as a % of the total shareholding of Promoter & Promoter group)

100.00%

 

- Percentage of shares (as a % of the total Share Capital of the Company)

65.48%

 

 

 

B

INVESTOR COMPLAINTS

 

 

Pending at the beginning of the quarter

0

 

Received during the quarter

0

 

Disposed off during the quarter

0

 

Remaining unresolved at the end of the quarter

0

 

 

 

 

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 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.60.44

UK Pound

1

Rs.98.64

Euro

1

Rs.78.20

 

 

INFORMATION DETAILS

 

Information Gathered by :

HEN

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NTH

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

45

 

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

 

--

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.