MIRA INFORM REPORT

 

 

Report No. :

316553

Report Date :

08.04.2015

 

IDENTIFICATION DETAILS

 

Name :

MORARJEE TEXTILES LIMITED

 

 

Registered Office :

Peninsula Spenta, Mathuradas Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

14.07.1995

 

 

Com. Reg. No.:

11-090643

 

 

Capital Investment / Paid-up Capital :

Rs. 504.326 Million

 

 

CIN No.:

[Company Identification No.]

L52322MH1995PLC090643

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMM09765A

 

 

PAN No.:

[Permanent Account No.]

Not Available

 

 

Legal Form :

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

 

 

Line of Business :

Manufacturer of fabrics and textiles, shirting, voiles, seasonal and classic

 

 

No. of Employees :

500 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (57)

 

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

 

Maximum Credit Limit :

USD 3500000

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of the Ashok Piramal Group, a diversified and leading business groups in India. It is an established company having good track.

 

The company has sound profit margin and overall good financials during the year under review. Further, there is a favorable gap between receivable and payables of the company.

 

As the company’s performance was good during FY 2014, the board of directors have recommended dividend for shareholders.

 

Trade relations are fair. Business is active. Payment terms reported to be regular and as per commitment.

 

Subject can be considered normal 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 – December 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

Not Available

Rating

Not Available

Rating Explanation

Not Available

Date

Not Available

 

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

 

INFORMATION PARTED BY

 

Name :

Mr. S C Kashimpuria

Designation :

Chief Financial Officer

Contact No.:

91-22-66154651

Date :

07.04.2015

 

 

LOCATIONS

 

Registered Office :

Peninsula Spenta, Mathuradas Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400013, Maharashtra

Tel. No.:

91-22-66154651/52/53

Fax No.:

91-22-66154593

E-Mail :

hvala@ashokpiramalgroup.com

Website :

www.morarjeetextiles.com

 

 

Factory 1 :

G – 2, MIDC Industrial Estate, Post Salaidhaba, Butibori, Nagpur – 441108, Maharashtra, India

Tel. No.:

91-7104-265704/708/514/519

Fax No.:

91-7104-265703/508

 

 

Overseas Sales Office :

Corso Italia, 62-20025 Legnano (Mi) – Italy

Tel. No.:

39-331-455028

Fax No.:

39-331-545026

E-Mail :

morarjee@morarjeeinternational.com

 

 

Processing Unit:

Plot No. 101/102, 19th Street, MIDC Area, Satpur, Nashik 422007, Maharashtra, India

Email:

amtrac_nsk@sancharnet.in

 

 

Mumbai Liasioning Office :

104, Bayside Mall, 35, C.M.M. Malviya Marg, Tardeo Road, Haji Ali, Mumbai 400 034, Maharashtra, India

 

 

DIRECTORS

 

AS ON 31.03.2014

 

Name :

Ms. Urvi A Piramal

Designation :

Chairperson

 

 

Name :

Mr. Harsh A Piramal

Designation :

Executive Vice Chairman

 

 

Name :

Mr. Mahesh S Gupta

Designation :

Director

Date of Birth/Age:

30.06.1956

Date of Appointment :

19.01.2006

Qualification :

B.Com, Chartered Accountant, Company Secretary and Law Graduate

 

 

Name :

Mr. Pradipta Mohapatra

Designation :

Director

 

 

Name :

Mr. Aditya Mangaldas

Designation :

Director

Date of Birth/Age:

16.09.1963

Date of Appointment :

18.02.2005

Qualification :

Mechanical Engineer from L.D. College of Engineering, MBA from Babson College USA

 

 

Name :

Mr. Ranjan Sanghi

Designation :

Director

 

 

Name :

Mr. Shobhan Thakore

Designation :

Director

 

 

Name :

Mr. Ranjan Pant

Designation :

Director (Appointed w.e.f. 1st August, 2014)

 

 

KEY EXECUTIVES

 

Name :

Mr. R.K. Rewari

Designation :

CEO and Executive Director

 

 

Name :

Mr. S.C. Kashimpuria

Designation :

Head Finance and Accounts

 

 

Name :

Ms. Karina Vaz

Designation :

Deputy Company Secretary

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 31.12.2014

 

Category of Shareholder

No. of Shares

% of No. of Shares

(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

104551

0.29

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

23102106

63.59

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

23102106

63.59

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

23206657

63.87

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

 

 

Total shareholding of Promoter and Promoter Group (A)

23206657

63.87

(B) Public Shareholding

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

 

 

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

2711

0.01

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

3061

0.01

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

1836258

5.05

http://www.bseindia.com/include/images/clear.gifForeign Institutional Investors

1135

0.00

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

1843165

5.07

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

 

 

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

1652477

4.55

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

 

 

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital up to Rs. 0.100 Million

4814901

13.25

http://www.bseindia.com/include/images/clear.gifIndividual shareholders holding nominal share capital in excess of Rs. 0.100 Million

4554453

12.54

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

260696

0.72

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

260696

0.72

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

11282527

31.05

Total Public shareholding (B)

13125692

36.13

Total (A)+(B)

36332349

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)

0

0.00

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

0

0.00

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

0

0.00

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

36332349

0.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of fabrics and textiles, shirting, voiles, seasonal and classic

 

 

Products :

ITC CODE NO.

 

PRODUCT DESCRIPTIONS

520880

Cotton Woven Fabric

 

 

Brand Names :

Not Divulged

 

 

Agencies Held :

Not Divulged

 

 

Exports :

Not Divulged

 

 

Imports :

 

Products :

Raw Material

Countries :

Greece

 

 

Terms :

 

Selling :

Cash, Credit (30 / 60 / 90 Days)

 

 

Purchasing :

Cash, Credit (30 / 60 / 90 Days)

 

 

 

PRODUCTION STATUS (AS ON 31.03.2011)

 

Particulars

Unit

Installed Capacity

Actual Production

Looms

Nos.

248

--

Spindles

Nos.

31568

--

Commercial Production

Pcs.

2400000

--

Finished Fabrics

Mtrs. (Lac)

--

198.68

Yarn

Tons

--

1051.92

Finished Fabrics Shirt

Nos. (Lac)

--

17.08

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Maximum Limit Dealt :

Not Divulged

Experience :

Payment Behaviour

Market Goodwill

Overall

Not Divulged

Not Divulged

Not Divulged

Remark:

--

 

 

Customers :
  • Daniel Hechter
  • Paul Smith
  • HGO
  • Emporio Armani
  • Matalan

 

 

No. of Employees :

500 (Approximately)

 

 

Bankers :
  • Allahabad Bank
  • Saraswat Co-op. Bank Limited
  • IDBI Bank Limited
  • AXIS Bank Limited
  • Export - Import Bank of India

 

 

Facilities :

Secured Loan

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

 

 

Term Loan from Bank

136.144

418.721

 

 

 

Short-term borrowings

 

 

Cash Credit / Packing Credit from Banks**

615.274

662.585

 

 

 

Total

751.418

1081.306

 

NOTES

 

LONG-TERM BORROWINGS

 

a)     Nature of Security and Term of Repayment for Long Term Secured Borrowings of Rs. 37.500 Million (Previous year Rs. 292.500 Million)

 

(Secured by a 1st pari passu charge on the movable assets including its movable plant and machinery, spares, tools and accessories, secured by pari passu equitable mortgage on company’s immovable properties at Butibori, Nagpur and 2nd pari passu charge by way of hypothecation of current assets of the Company viz Raw Materials, Stock-in-Process, Finished Goods, Consumable Store and Spares, Book Debts and other movable both present

and future in respect of Rs. 37.500 Million (Previous year Rs. 292.500 Million)

 

Terms of Repayment for Long Term Secured borrowings :

- Loan of Rs. 37.500 Million repayable in 1 quarterly installment (excluding current maturities)

 

b)    Nature of Security and Term of Repayment for Long Term Secured Borrowings of Rs. 98.644 Million (Previous year Rs. 126.221 Million)

 

(Secured by specific (exclusive) charge on the movable fixed assets and second pari passu charge on current assets viz Raw Materials, stock-in-Process, Finished Goods both present and future of company’s plant at Butibori, Nagpur in respect of Rs. 98.644 Million) (Previous year Rs. 126.221 Million)

 

Terms of Repayment for Long Term Secured borrowings :

- Loan of Rs. 98.644 Million repayable in 32 monthly installments (excluding current maturities)

 

c)     The interest rate on the above is in the range from 11% to 14.75% per annum.

 

d)    Default in repayment of principal and interest – Nil

 

 

SHORT-TERM BORROWINGS

 

** Secured by way of hypothecation of Current Assets of the Co. viz., Raw Materials, Stock-in-Process, Finished Goods, consumables, store and spares, book debts and other moveable both present and future and secured by pari passu second charge on company’s moveable assets including its moveable plant and machinery, spares, tools and accessories both present and future.

 

Default in repayment of principal and interest - Nil

 

 

 

Banking Relations :

 

 

 

Auditors :

 

Name :

Shah and Company

Chartered Accountants

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Joint Ventures :
  • Morarjee Castiglioni (India) Private Limited
  • Just Textiles Limited

 

 

Subsidiaries Company :
  • Morarjee International s.r.l.

 

 

Enterprises over which Directors/Key Management personnel exercises significant influence :
  • Penninsula Land Limited
  • Ashok Piramal Management Corporation Limited
  • Morarjee Goculdas Spg. and Wvg. Company Private Limited
  • (Formerly Morarjee Legler Private Limited)
  • Peninsula Facility Management Services Limited
  • Ashok G. Piramal Trust
  • Urvi Ashok Piramal Foundation
  • PMP Components Private Limited
  • Integra Garments and Textiles Limited (Formerly Five Star Mercantile Limited)

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2014

 

Authorised Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

45000000

Equity Shares

Rs.7/- each

Rs. 315.000 Million

2500000

Redeemable Cumulative Non Convertible Preference Shares

Rs.100/- each

Rs. 250.000 Million

 

TOTAL

 

Rs. 565.000 Million

 

 

Issued, Subscribed & Paid-up Capital :

 

No. of Shares

Type

Value

Amount

 

 

 

 

36332349

Equity Shares

(above includes 1,81,62,868 Equity Shares of Rs. 10/- each fully paid issued to existing shareholder on rights basis (Does not include 6577 Equity Shares Kept in abeyance)

Rs.7/- each

Rs. 254.326 Million

2500000

Redeemable Cumulative Non Convertible Preference Shares

— 10,00,000 (Previous year 10,00,000) 5% Redeemable Cumulative Non- Convertible Preference Shares of Rs. 100/- each

— 15,00,000 (Previous year 15,00,000) 9% Redeemable Cumulative Non- Convertible Preference Shares of Rs. 100/- each

Rs. 100/- each

Rs. 250.000 Million

 

TOTAL

 

Rs. 504.326 Million

 

 

A)    The reconciliation of the number of shares outstanding is given below:

 

Particulars

No. of shares

a) Equity Shares

 

Equity Shares at the beginning of the year

36,332,349

Equity Shares at the end of the year

36,332,349

b) Preference Shares

 

5% Preference Shares at the beginning of the year

1,000,000

5% Preference Shares at the end of the year

1,000,000

 

 

9% Preference Shares at the beginning of the year

1,500,000

Preference Shares at the end of the year

1,500,000

Total Preference Shares at the end of the year

2,500,000

 

 

B)    Shareholders holding more than 5% shares of the Company

 

Particulars

31.03.2014

a) Equity Shareholder

 

Ashok Piramal Group Textile Trust through its trustee,

 

Mrs. Urvi A Piramal

 

Nos. of Shares

21,590,112

% age of holding

59.42

b) Preference Shareholder

 

Ashok Piramal Group Textile Trust through its trustee,

 

Mrs. Urvi A Piramal

 

Nos. of Shares

2,500,000

% age of holding

100.00

 

 

C)    Terms / rights attached to Equity Shares

 

Each Equity shares of Company has a par value of Rs. 7/- as at 31st March, 2014 (Previous year Rs. 7/- per share). Each holder of equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

 

D)    Terms / rights attached to Preference Shares

 

1. 5% Redeemable Cumulative Non- Convertible Preference Shares of Rs. 100/- each, Redeemable anytime between 15th Nov. 2014 and 15th November, 2019 at the option of the Company. The holders of the said Preference Shares shall not have any right to vote in any manner before the Company at any meeting except on resolutions placed before the Company at any meeting which directly affects their rights.

 

2. 9% Redeemable Cumulative Non- Convertible Preference Shares of Rs.100/- each, Redeemable anytime between 4th June, 2012 and 3rd December, 2015 at the option of the Company. The holders of the said Preference Shares shall not have any right to vote in any manner before the Company at any meeting except on resolutions placed before the Company at any meeting which directly affects their rights.

 

 

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

504.326

504.326

504.327

(b) Reserves & Surplus

724.070

567.964

474.737

(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)

1228.396

1072.290

979.064

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

836.144

418.721

1171.607

(b) Deferred tax liabilities (Net)

62.058

0.000

0.000

(c) Other long term liabilities

10.437

11.039

11.702

(d) long-term provisions

20.420

23.254

18.094

Total Non-current Liabilities (3)

929.059

453.014

1201.403

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

867.737

773.600

657.525

(b) Trade payables

377.240

449.044

282.495

(c) Other current liabilities

335.817

877.093

327.217

(d) Short-term provisions

370.127

354.312

126.925

Total Current Liabilities (4)

1950.921

2454.049

1394.162

 

 

 

 

TOTAL

4108.376

3979.353

3574.629

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

2207.084

2309.174

1896.757

(ii) Intangible Assets

13.984

32.019

33.389

(iii) Capital work-in-progress

89.380

24.006

34.013

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

7.061

7.061

86.617

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d) Long-term Loan and Advances

24.113

24.325

22.624

(e) Other Non-current assets

148.008

71.934

22.071

Total Non-Current Assets

2489.630

2468.519

2095.471

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

79.556

79.556

0.000

(b) Inventories

739.535

680.856

536.726

(c) Trade receivables

612.550

576.364

395.500

(d) Cash and cash equivalents

7.016

6.930

10.174

(e) Short-term loans and advances

172.333

157.177

525.343

(f) Other current assets

7.756

9.951

11.415

Total Current Assets

1618.746

1510.834

1479.158

 

 

 

 

TOTAL

4108.376

3979.353

3574.629

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

Income

       3,919.415

3640.707

2906.157

 

Other Income

0.371

0.452

1.493

 

TOTAL (A)

3919.786

3641.159

2907.650

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Materials Consumed

1579.999

1508.007

1109.407

 

Manufacturing & other expenses

1012.436

975.019

867.424

 

Employment Cost

315.392

264.932

222.47

 

Administrative, Selling & Other Expenses

257.682

265.217

260.744

 

Forex Loss

45.545

36.961

15.124

 

Changes in inventories of Work-in-Progress & Finished Goods

(49.467)

(62.556)

(7.176)

 

TOTAL (B)

3161.587

2987.580

2467.993

 

 

 

 

 

Less

PROFIT/ (LOSS)  BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (C)

758.199

653.579

439.657

 

 

 

 

 

Less

FINANCIAL EXPENSES (D)

254.891

272.566

275.83

 

 

 

 

 

 

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

503.308

381.013

163.827

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION (F)

159.358

141.605

132.69

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX (E-F)   (G)

343.950

239.408

31.137

 

 

 

 

 

Less

TAX (I)

62.058

0.000

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX  (G-I)   (J)

281.892

239.408

31.137

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

FOB Value of Exports

2045.396 

2144.218

1767.797

 

TOTAL EARNINGS

2045.396

2144.218

1767.797

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

124.358

90.478

99.054 

 

Consumables

15.802

15.843

19.204 

 

Capital Goods

5.069

74.769

70.348 

 

TOTAL IMPORTS

145.229

181.090

188.606

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

7.16

5.99

0.27

 

Expected Sales ( 2014-2015 ) : Rs. 4200.000 Millions

 

The above information has been parted by Mr. S C Kashimpuria

 

 

QUARTERLY RESULTS

 

Particulars (Rs. Million)

Dec 2014

Sep 2014

Jun 2014

Audited / Unaudited

Unaudited

Unaudited

Unaudited

Net Sales

945.300  

944.000  

973.700  

Total Expenditure

795.600  

786.300  

787.200  

PBIDT (Excl OI)

149.700  

157.700  

186.500  

Other Income

2.800  

4.500  

7.500  

Operating Profit

152.500  

162.200  

194.000  

Interest

45.900  

55.100  

52.100  

Exceptional Items

0.000

0.000

0.000

PBDT

106.600  

107.100  

141.900  

Depreciation

24.000  

23.800  

23.700  

Profit Before Tax

82.600  

83.300  

118.200  

Tax

28.000  

30.100  

40.400  

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

54.600  

53.200  

77.800  

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.000

Net Profit

54.600  

53.200  

77.800  

 

 

KEY RATIOS

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

Net Profit Margin
(PAT/Sales)

(%)

7.19

6.58

1.07

 

 

 

 

 

Operating Profit Margin
(PBITD/Sales)

(%)

19.34

17.95

15.13

 

 

 

 

 

Return on Total Assets
(PBT/Total Assets}

(%)

8.57

6.06

0.90

 

 

 

 

 

Return on Investment (ROI)
(PBT/Networth)

 

0.28

0.22

0.03

 

 

 

 

 

Debt Equity Ratio
(Total Debt /Networth)

 

1.39

1.11

1.87

 

 

 

 

 

Current Ratio
(Current Asset/Current Liability)

 

0.83

0.62

1.06

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Millions]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(INR in Mlns.)

(INR in Mlns.)

(INR in Mlns.)

Share Capital

504.327

504.326

504.326

Reserves & Surplus

474.737

567.964

724.070

Net worth

979.064

1,072.290

1,228.396

 

 

 

 

long-term borrowings

1,171.607

418.721

836.144

Short term borrowings

657.525

773.600

867.737

Total borrowings

1,829.132

1,192.321

1,703.881

Debt/Equity ratio

1.868

1.112

1.387

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(INR in Mlns)

(INR in Mlns)

(INR in Mlns)

Sales

2,906.157

3,640.707

3,919.415

 

 

25.276

7.655

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(INR)

(INR)

(INR)

Sales

2,906.157

3,640.707

3,919.415

Profit

31.137

239.408

281.892

 

1.07%

6.58%

7.19%

 

 

 

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

Yes

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

Yes

15]

Capital in the business

Yes

16]

Details of sister concerns

Yes

17]

Major suppliers

No

18]

Major customers

Yes

19]

Payments terms

Yes

20]

Export / Import details (if applicable)

Yes

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

No

 

 

UNSECURED LOAN

 

Unsecured Loan

31.03.2014

(Rs. in Millions)

31.03.2013

(Rs. in Millions)

Long-term Borrowings

 

 

Term Loan from Bank

700.000

0.000

 

 

 

Short-term borrowings

 

 

Bodies Corporate

104.749

111.015

Packing Credit from Bank

147.714

0.000

 

 

 

Total

952.463

111.015

 

NOTES

 

LONG-TERM BORROWINGS

 

Terms of Repayment for Long Term Unsecured borrowings :

- Loan of Rs. 500.000 Million repayable in 3 monthly installments w.e.f. April 2015

- Loan of Rs. 200.000 Million repayable in 8 quarterly installments w.e.f. June 2015

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10521372

23/09/2014

250,000,000.00

ICICI Bank Limited

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

C21916580

2

10515564

21/08/2014

750,000,000.00

ICICI Bank Limited

LANDMARKRACE COURCE CIRCLE, ALKAPURI, BARODA, GUJARAT - 390015, INDIA

C16943011

3

10338304

04/01/2012

46,000,000.00

Saraswat Co-operative Bank Limited

GROUND FLOOR, GANESH BHUVAN, PLOT NO.135, SWAMI VALLABHDAS ROAD, JAIN SOCIETY, SION(W), MUMBAI, MAHARASHTRA - 400022, INDIA

B33292541

4

10338307

04/01/2012

139,000,000.00

Saraswat Co-operative Bank Limited

GROUND FLOOR, GANESH BHUVAN, PLOT NO.135, SWAMI VALLABHDAS ROAD, JAIN SOCIETY, SION (W), MUMBAI, MAHARASHTRA - 400022, INDIA

B33293762

5

10337077

26/09/2014 *

150,000,000.00

Saraswat Co-operative Bank Limited

GROUND FLOOR, GANESH BHUVAN, PLOT NO.135, SWAMI VALLABHDAS ROAD, JAIN SOCIETY, SION(W), MUMBAI, MAHARASHTRA - 400068, INDIA

C30551238

6

10285024

18/03/2011

120,000,000.00

IDBI Bank Limited

224-A, MITTAL COURT,, A WING, NARIMAN POINT,, MUMBAI, MAHARASHTRA - 400021, INDIA

B11985173

7

10246742

06/10/2010

120,000,000.00

IDBI Bank Limited

224-A, MITTAL COURT, A WING, NARIMAN POINT, MUMBAI, MAHARASHTRA - 400021, INDIA

A96778261

8

80035875

17/06/2013 *

298,500,000.00

Export-Import Bank of India

CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 4000 05, INDIA

B79691481

9

80039010

28/09/2007 *

376,000,000.00

State Bank of India

OVERSEAS BRANCH, LHO COMPOUND, ST. MARK'S ROAD, BANGALORE, KARNATAKA - 560001, INDIA

A27218932

10

90213047

30/07/2007 *

450,000,000.00

Allahabad Bank

INDUSTRIAL FINANCE BRANCH, MUMBAI SAMACHAR MARG, 
FORT, MUMBAI, MAHARASHTRA - 400023, INDIA

A21454228

11

90212808

09/12/2003 *

224,100,000.00

Export Import Bank of India

CENTRE ONE; WORLD TRADE CENTRE, CUFFE PARADE, BOMBAY, GUJARAT - 400005, INDIA

-

 

* Date of charge modification

 

 

OPERATIONS HIGHLIGHTS – STANDALONE

 

During the year, the total income of the Company was Rs. 3919.786 Millions as against Rs. 3641.159 Millions in the previous year, an increase of 7.65%. The year ended at a profit of Rs. 281.892 Millions as against profit of Rs. 239.408 Millions in the previous year, an increase of 17.74%

 

The Company could achieve a rise in overall profitability through a judicious mix of strategies and cost control measures.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

GLOBAL TEXTILE MARKET

 

With the economic scenario in the US showing signs of revival, demand for textiles from US consumers is expected to go up in FY15. Asian countries have been gaining market share in the textile trade due to lower costs compared to North African, European and South American countries. The Textile and Clothing trade in the global market is fast changing with the scaling up of uses of technical or speciality textiles in diverse areas

 

The future may hold changes for regional markets should Pakistan be granted duty-free access to the EU, which is under consideration, Duty-free access, under the Generalized System of Preference in operation in the EU, has been opposed by other emerging country rivals including India, and the European Apparel and Textile Confederation.

 

INDIAN TEXTILE MARKET

 

For the most part of FY12 and FY13, the textile sector was besieged by twin impacts of slowing domestic consumption and slowdown in export demand. Data available from various sources show that in FY14 the textiles and clothing industry was on a recovery path.

 

During the period of April – January of the current fiscal year IIP showed an increase of 11.3% compared to the same period of last year. The most impressive growth of 28.1% was in the production of garments, while for the other segments of the textile sector the growth was around 4%. Exports have also shown a positive trend. During April – December of FY 2014, exports of textile products increased by 13.4% compared to same period of the previous year.

 

Another good indicator of the recovery is the profitability in the sector. An analysis of 286 textiles companies shows that during the first three quarters of FY14, around 60% have shown an increase both in topline and bottomline compared to the same period of last year.

 

 

MORARJEE TEXTILES

 

Morarjee Textiles once again beat its previous year’s performance, with an 8% increase in total revenue driving an EBIDTA margin expansion from 17.95% to 19.34%.

 

The company continues to gain a strong foothold in the domestic retail market, with 20% growth over last year. The company also augmented its product basket with the introduction of Zari-in-Voile fabric, as well as more finer counts of superfine shirting fabrics to the market.

 

Morarjee’s culture of world-class quality is inculcated in every employee through continuous training, Lean Six Sigma projects and Quality Circles. This year skills of around 1,300 employees were enhanced with around 2,000 man hours of training. Employee interactions with top management are held at regular intervals through town hall meets, offsite meets and the annual day function.

 

Morarjee is a company with a deep commitment to the environment. The company continues to optimize energy use and other resources. They are reviewing and changing their processes and input streams to cut down on demand for energy, which in turn will boost competitiveness. There has been reduction in consumption of water by 13.5%, steam by 8.5% and heat by 4.1%. During the year, the company also successfully reduced wastage in several areas.

 

 

OUTLOOK

 

The global clothing and textile industry was affected for a prolonged period by the economic recession, but with rising consumer spending in Asia and cautious consumer confidence in the West, the textile sector in the country is witnessing improvement as export demand has begun to pick up.

 

Apparel exports from India are expected to increase to US$ 82 bn by 2021 from US$ 31 bn in 2011. Total cloth production in India is expected to grow to 112 bn square metres by FY17 from 62 bn square metres in FY11. Continued government schemes in the form of policies like Focus Market Scheme would encourage exporters to explore markets outside the traditional destinations of the US and EU. To reduce the dependence on these markets, 26 additional countries have been added to the scheme.

 

Industry players are preparing for this large increase in business by augmenting capacity to reach out to new markets and boost sales. Modernization of plants will enable companies to produce quality products and at higher volume to satiate constant demand from international buyers. TUFS has been the flagship programme and an extremely successful scheme in terms of attracting investments. Industry operators are increasingly moving towards modernization and expansion as encouraged by the so-designated Textile Upgradation Fund Scheme implemented by the government.

 

Indian textile and clothing industry have made substantial investment in the entire value chain and an investment of US$ 30 billion has been invested in last 10 years. The industry is planning to invest additional US$ 20 billion in the next 5 years to expand capacities and modernize and upgrade the existing capacities.

 

Morarjee Textile is well placed to capitalise on this opportunity. A state-of-the-art spinning and weaving factory for captive requirements is undergoing various government approvals, and an expansion of their printing capacity is also on the cards. With a strong balance sheet, state-of-the-art products, operational excellence, focus on people and a commitment to the environment, the management is confident that Morarjee Textiles can go from strength to strength in the coming years.

 

 

FIXED ASSETS

 

  • Land - Leasehold
  • Building
  • Plant & Machinery
  • Computer
  • Furniture, Fixture
  • Office Equipments
  • Motor Vehicles
  • Designs and Archives
  • Computer Software

 

 

 

 

UNAUDITED FINANCIAL RESULT FOR THE QUARTER / NINE MONTHS ENDED 31.12.2014

(Rs. Million)

 

 Particulars

QTR. Ended

QTR. Ended

Nine Month s Ended

 

31.12.2014

30.09.2014

31.12.2014

 

(Unaudited)

(Unaudited)

(Unaudited)

1

  Income from operation

 

 

 

 

 (a) Net Sales/ Income from operation (Net of Excise Duty)

                  945.300

           944.000

        2,863.000

 

 (b) Other Operating Income

0.000

0.000

0.000

 

Total Income

              945.300

           944.000

        2,863.000

 

 

 

 

 

2

 Expenses

 

 

 

 

Cost of materials consumed

             382.900

           402.300

        1,156.600

 

Changes in inventories of finished goods, work in progress and stock in trade

              (4.800)

            (24.400)

            (15.200)

 

Dyes and chemical

               78.900

             81.400

           246.900

 

Staff cost

                80.300

             79.600

           239.800

 

Power and fuel

                98.400

             90.400

           276.000

 

Depreciation and amortization expenses

                24.000

23.800

             71.500

 

Forex loss / gain

                  7.100

             (4.100)

             (4.400)

 

Other expenses

              152.800

157.000

           457.900

 

Total expenses

              819.600

           806.000

        2,429.100

 

 

 

 

 

3

Profit from Operations before other Income Interest & Exceptional Item(1-2)

                  125.700

           138.000

           433.900

 

 

 

 

 

4

Other Income

                  2.800

              0.400

              3.300

 

 

 

 

 

5

Profit before Interest & Exceptional Item

              128.500

           138.400

           437.200

 

 

 

 

 

6

Finance Costs

               45.900

             55.100

           153.100

 

 

 

 

 

7

Profit after Interest but before Exceptional Item (4-5)

                82.600

             83.300

           284.100

 

 

 

 

 

8

Exceptional Items

0.000

0.000

0.000

 

 

 

 

 

9

Profit from ordinary activities  before Tax (6-7)

                82.600

             83.300

           284.100

 

 

 

 

 

10

Tax Expenses

                28.000

             30.100

             98.500

 

 

 

 

 

11

Net Profit from ordinary activities after Tax (8-9)

                54.600

             53.200

           185.600

 

 

 

 

 

12

Extraordinary Items (Net of Tax Expense Rs.________)

 -

 -

 -

 

 

 

 

 

13

Net Profit for the period (10-11)

54.600

53.200

185.600

 

 

 

 

 

14

Share of Loss of Minority Interest

 -

 -

 -

 

 

 

 

 

15

Share of Loss of Attributable to cost of control

 -

 -

 -

 

 

 

 

 

16

Net Profit after tax, minority interest & attributable  to cost of control ( 12+13+14)

                  285.300

           386.800

        1,111.800

 

 

 

 

 

17

Paid Up Equity Share Capital (Face Value of Rs.10 Per Share)

                  254.300

           254.300

           254.300

 

 

 

 

 

17

Reserves excluding Revaluation Reserves as per Balance Sheet of Previous Accounting Year

                          -  

                   -  

                   -  

 

 

 

 

 

18

Earning per Share (EPS)

 

 

 

 

 

 

 

 

 

a) Basic and diluted EPS before extraordinary items for the period, for the year to date & for the previous year (not  annualised)

                       1.35

                1.31

                4.65

 

 

 

 

 

A

Particulars of Shareholding

 

 

 

1

Public Shareholding

 

 

 

 

Number of Shares

        13,125,692

      13,125,692

      13,125,692

 

% of Share holding

36.13%

36.13%

36.13%

 

 

 

 

 

2

Promoters and promoter group.

 

 

 

 

Shareholding

 

 

 

 

a) Pledged/Encumbered

  

 

  

 

 -   Number of shares

Nil

Nil

Nil

 

 -   Percentage of shares (as a % of the total shareholding of promoter and promoter group)

Nil

Nil

Nil

 

-    Percentage of shares (as a % of the total share capital of the company)

Nil

Nil

Nil

 

    

 

 

 

 

b) Non-encumbered

 

 

 

 

 -   Number of shares

         23,206,657

      23,206,657

      23,206,657

 

 -   Percentage of shares (as a % of the total shareholding      of promoter and promoter group)

100.00%

100.00%

100.00%

 

-    Percentage of shares (as a % of the total share capital      of the company)

63.87%

63.87%

63.87%

 

Particulars

Quarter Ended 31st December 2014

Pending at the beginning of the quarter

-

Received during the quarter

1

Disposed of during the quarter

1

Remaining unresolved at the end of the quarter

-l

 

 

NOTES

 

1.     The above unaudited financial result for the quarter / nine months ended December 31, 2014 have been reviewed by the audit committee and approved by the Board of Directors respectively at their meeting held on February 10, 2015.

 

The statutory Auditors of the Company have carried out a Limited Review.

 

2.     The Company has only one reportable segment - Textile Product.

 

3.     Effective April 1, 2014, pursuant to and in line with the requirements of Schedule II to the Companies Act, 2013, the Company has reviewed and revised the useful lives of fixed assets and effected the following changes with respect to provision of depreciation:

 

(i)             In respect of assets where the remaining useful life as on April 1, 2014, is 'Nil', their carrying amounts has been adjusted against the opening balance of retained earnings as on that date.

 

(ii)            In respect of other assets, the carrying amounts are depreciated by charging the same over their remaining useful lives

 

4.     Corresponding figures of the previous periods have been regrouped wherever necessary.

 

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 records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

No press reports / filings exists on the subject.

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.62.33

UK Pound

1

Rs.92.83

Euro

1

Rs.68.07

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRP

 

 

Analysis Done by :

SUM

 

 

Report Prepared by :

DPT

 

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

--PROFITABILITY

1~10

6

--LIQUIDITY

1~10

6

--LEVERAGE

1~10

6

--RESERVES

1~10

5

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

57

 

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.