MIRA INFORM REPORT

 

 

Report No. :

318224

Report Date :

18.04.2015

 

IDENTIFICATION DETAILS

 

Name :

ARVIND LIMITED (w.e.f.14.07.2008)

 

 

Formerly Known As :

ARVIND MILLS LIMITED

 

 

Registered Office :

Naroda Road, Ahmedabad – 380025, Gujarat

Tel No. :

91-79-30138000

 

 

Country :

India

 

 

Financials (as on) :

31.03.2014

 

 

Date of Incorporation :

01.06.1931

 

 

Com. Reg. No.:

04-000093

 

 

Capital Investment / Paid-up Capital :

Rs. 2581.700 Million

 

 

CIN No.:

[Company Identification No.]

L17119GJ1931PLC000093

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

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 Cotton Shirting, Denim, Knits and Bottom Weights (Khakis) Fabrics and Jeans and Shirts Garments.

 

 

No. of Employees :

Not Available

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A (70)

 

RATING

STATUS

PROPOSED CREDIT LINE

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

Fairly Large

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Exist

 

 

Comments :

Subject is a one of the India’s leading vertically integrated textile companies with the presence of more than eight decades in the industry and it is among the largest denim manufacturers in the world.

 

Subject is a well-established and reputed company having fine track record.

 

The rating reflects wide experience of its promoters backed by strong growth potential associated with diversified brand portfolio and widespread retail distribution network.

 

Rating also reflects Arvind’s healthy operational risk profile supported by adequate liquidity position and decent profitability margins of the company.

 

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

 

In view decent brand name backed by it resourceful promoter, the company can be considered good for normal business dealings at usual trade terms and conditions.

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

ECGC Country Risk Classification List – 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

CARE

Rating

Commercial Paper issue (Standalone) = A1+

Rating Explanation

Very strong degree of safety and carry lowest credit risk.

Date

March 12, 2015

 

 

RBI DEFAULTERS’ LIST STATUS

 

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

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

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

 

 

INFORMATION DENIED BY

 

Name :

Mr. Vinay Swayaka

Designation :

Accounts Manager

Contact No.:

91-79-22203030/30138531

 

 

LOCATIONS

 

Registered Office :

Naroda Road, Ahmedabad – 380025, Gujarat, India

Tel. No.:

91-79-30138000

Fax No.:

91-79-30138671

E-Mail :

india@arvindmills.com

investor@arvind.com

rv.bhimani@arvind.in

feedback@arvind.com

Website :

http://www.arvind.com

 

 

Factory :

Santej Road, Near Khatrej Roads Kalol, Gandhinagar – 338272, Gujarat, India

 

 

Plant Locations :

Located at:

 

v  Lifestyle Fabrics-Denim, Naroda Road, Ahmedabad - 380025, Gujarat, India

 

v  Lifestyle Fabrics - Voiles, Ankur Textiles, Outside Raipur Gate, Ahmedabad - 380022, Gujarat, India

 

v  Lifestyle Fabrics-Shirting, Khakis and Knitwear, Santej, PO Khatrej, Taluka Kalol, District Gandhinagar - 382721, Gujarat, India

 

v  Lifestyle Apparel-Knits, Santej, PO Khatrej, Taluka Kalol, District Gandhinagar - 382721, Gujarat, India

 

v  Lifestyle Apparel-Jeans, # 26/2, 27/2, Kenchenahalli, Mysore Road, Near Bangalore University, Bangalore – 560059, Karnataka, India

 

v  Lifestyle Apparel-Shirts, # 23/1, Sonnenahalli Village, Sitarampalya Cross, ITPL Road, Brookfield, Mahadevpura Post, Bangalore – 560048, Karnataka, India

 

v  Lifestyle Apparel-Shirts, # 63/9, Doddathogur Village, Electronic City Post, Bangalore – 560100, Karnataka, India

 

v  Arvind Intex, Rajpur Road, Gomtipur, Ahmedabad - 380021, Gujarat, India

 

v  Arvind Polycot, Khatrej, Taluka Kalol, District Gandhinagar - 382721, Gujarat, India

 

v  Arvind Cotspin, D-64, MIDC, Gokul Shirgaon, Tal. Karveer, Kolhapur - 416234, Maharashtra, India

 

 

Branch Offices :

Located at:

 

v  Gandhinagar 

v  Bangalore 

 

 

Overseas Offices :

Located at:

 

v  USA

v  Bangladesh

 

 

DIRECTORS

 

As on 31.03.2014

 

Name:

Mr. Sanjay S. Lalbhai

Designation:

Chairman and Managing Director

 

 

Name:
Mr. Jayesh K. Shah

Designation:

Director and Chief Financial Officer

 

 

 

Name :

Mr. Punit S. Lalbhai

 

Designation :

Executive Director

 

 

 

 

Name :

Mr. Kulin S. Lalbhai

 

Designation :

Executive Director

 

 

 

 

Name :

Mr. Sudhir Mehta

 

Designation :

Independent Director

 

 

 

 

Name :

Dr. Bakul Dholakia

 

Designation :

Independent Director

 

 

 

 

Name :

Mr. Vallabh Bhanshali

 

Designation :

Independent Director

 

 

 

 

Name :

Mr. Dileep C. Choksi

 

Designation :

Independent Director

 

 

 

 

Name :

Ms. Renuka Ramnath

 

Designation :

Independent Director

 

 

 

 

Name :

Mr. Prabhakar Dalal

 

Designation :

Nominated by Export-Import Bank of India

 

 

KEY EXECUTIVES

 

Name :

Mr. R.V. Bhimani

Designation :

Company Secretary

 

 

SHAREHOLDING PATTERN

 

As on 31.12.2014

 

Category of Shareholder

Total No. of Shares

As a %

(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

2341906

0.91

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

109881025

42.55

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

112222931

43.46

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

 

 

Total shareholding of Promoter and Promoter Group (A)

112222931

43.46

(B) Public Shareholding

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

 

 

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

21544079

8.34

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

96209

0.04

http://www.bseindia.com/include/images/clear.gifCentral Government / State Government(s)

500

0.00

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

16585534

6.42

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

54446750

21.08

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

1113

0.00

http://www.bseindia.com/include/images/clear.gifForeign Bank/IFCW

1113

0.00

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

92674185

35.89

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

 

 

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

13544046

5.24

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

28797561

11.15

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

6988603

2.71

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

4015743

1.56

http://www.bseindia.com/include/images/clear.gifNRIs/OCBs

1335271

0.52

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

2357

0.00

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

323610

0.13

http://www.bseindia.com/include/images/clear.gifForeign Portfolio Investments Corporation

2354505

0.91

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

53345953

20.66

Total Public shareholding (B)

146020138

56.54

Total (A)+(B)

258243069

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)

258243069

100.00

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer of Cotton Shirting, Denim, Knits and Bottom Weights (Khakis) Fabrics and Jeans and Shirts Garments.

 

 

Products :

Not Available

 

 

Brand Names :

Arrow, US Polo, Izod, Elle, Cherokee

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Available

 

 

Imports :

Not Available

 

 

Terms :

Not Available

 

PRODUCTION STATUS = NOT AVAILABLE

 

 

GENERAL INFORMATION

 

Suppliers :

 

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

Customers :

 

Reference :

Not Available

Name of the Person :

Not Available

Contact No.:

Not Available

Since How Long Known :

Not Available

Experience :

Not Available

Maximum Limit Dealt :

Not Available

 

 

No. of Employees :

Not Available

 

 

Bankers :

·         State Bank of India

·         Bank of Baroda

·         UCO Bank

·         State Bank of Patiala

·         HDFC Bank Limited

·         Standard Chartered Bank

·         ICICI Bank Limited

·         Export-Import Bank of India

·         Axis Bank Limited

·         State Bank of Hyderabad

·         IDBI Bank Limited

  • Canara Bank

 

 

Facilities :

 

SECURED LOANS

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

Term Loans

From Banks

10386.500

7850.200

From Financial Institutions and Others

1132.300

1595.000

SHORT TERM BORROWINGS

 

 

Working Capital Loans repayable on demand from Banks

10058.100

9635.500

 

 

 

Total

 

21576.900

19080.700

 

LONG-TERM BORROWINGS

 

Nature of Security:

Term Loans of Rs. 13163.100 Million

1)     Loans amounting to Rs. 12377.600 Million are secured by (a) first charge on all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) additional charge by way of mortgage on Immovable Properties at villages Jethlaj, Karoli, Vadsar, Moti Bhoyan, Santej and Khatrej; (c) charge on the Company’s Trademarks and (d) Secured by second charge on all the Company’s Current Assets both present and future relating to the Textile Plants. Out of these Rs. 11629.500 Million are additionally secured by first charge on Movable Fixed Assets of Jeans and Shirts Garment divisions at Bangalore.

 

2)     Loans amounting to Rs. 540.200 Million are secured by (a) first charge on all the Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants at Naroda and Santej and Garment Division at Bangalore and all Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage; (b) charge on the Company’s Trademarks and (c) Secured by second charge on all the Company’s Current Assets both present and future relating to the Textile Plants and Garment Division at Bangalore.

 

3)     Loans amounting to Rs. 205.300 Million are secured by first charge on all the Fixed Assets of Intex, Cotspin, Bottom Weight and Ankur divisions of the Company and second charge on the entire Current Assets both present and future relating these divisions.

 

4)     Loans of Rs. 40.000 Million are secured by hypothecation of related vehicles.

 

 

SHORT TERM BORROWINGS

 

Cash Credit and Other Facilities from Banks

 

Secured by first charge on all the Company’s Current Assets presently relating to the Textile Plants and all the Current Assets acquired by the Company at any time after the execution of and during the continuance of the Indenture of Mortgage. They are also secured by a second charge over all the Immovable Properties, Movable Properties, Intangible Properties and General Assets of the Company presently relating to the Textile Plants and all Immovable Properties, Movable Properties, Intangible Properties and General Assets acquired by the Company at any time after execution of and during the continuance of the Indenture of Mortgage. Some of the facilities are additionally secured by second charge on movable Plant and Machinery of the Jeans and Shirts Garment divisions at Bangalore.

 

 

Auditors :

 

Name :

Sorab S. Engineer and Company

Chartered Accountants

Address :

Ismail Building, 381, Dr. D. Naoroji Road, Fort, Mumbai – 400001, Maharashtra, India

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary Company :

v  Asman Investment Limited

v  The Anup Engineering Limited

v  Arvind Lifestyle Brands Limited

v  Arvind Accel Limited

v  Syntel Telecom Limited

v  Arvind Infrastructure Limited

v  Arvind Brands and Retail Limited

v  Arvind Internet Limited

v  Arvind Envisol Private Limited

v  Arvind Worldwide Inc., USA

v  Arvind Worldwide (M) Inc., Mauritius

v  Arvind Overseas (M) Limited, Mauritius

v  Arvind Garments Park Private Limited (Formerly known as Arvind Processing Park Private Limited)

v  Arvind Spinning Limited, Mauritius

v  Arvind Textile Mills Limited, Bangladesh

v  Dholka Textile Park Private Limited (Formerly known as Arvind Spinning Park Private Limited)

v  Arvind Hebbal Homes Private Limited

 

 

Joint Venture :

v  Arya Omnitalk Wireless Solutions Private Limited

v  Tommy Hilfiger Arvind Fashions Private Limited

v  Arya Omnitalk Radio Trunking Services Private Limited

v  Arudrama Developers Private Limited

 

 

Joint Venture Subsidiary Company :

v  Arvind PD Composites Private Limited

v  Arvind Goodhill Suit Manufacturing Private Limited

v  Arvind Niloy Exports Private Limited, Bangladesh

v  Arvind OG Nonwovens Private Limited

 

 

Limited Liability Partnership :

v  Arvind Bsafal Homes LLP

v  Ahmedabad East Infrastructure LLP

v  Arvind Infracon LLP

v  Arvind Five Homes LLP

v  Arvind Altura LLP

v  Arvind Industrial Infrastructure (One) LLP

v  Arvind Alcove LLP

v  Arvind & Smart Value Homes LLP

v  Changodar Industrial Infrastructure (One) LLP

 

 

Company under the control of Key Managerial Personnel :

v  Aura Securities Private Limited

v  Amplus Capital Advisors Private Limited

 

 

CAPITAL STRUCTURE

 

AFTER 30.07.2014

 

Authorised Capital : Rs. 6650.000 Million

 

Issued, Subscribed & Paid-up Capital : Rs. 2582.431 Million

 

 

AS ON 31.03.2014

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

565,000,000

Equity Shares

Rs. 10/- each

Rs. 5650.000 Million

10,000,000

Preference Shares

Rs. 100/- each

Rs. 1000.000 Million

 

 

 

 

 

Total

 

Rs. 6650.000 Million

 

Issued Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

258,177,289

Equity Shares

Rs. 10/- each

Rs. 2581.700 Million

 

 

 

 

 

Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

258,176,389

Equity Shares

Rs. 10/- each

Rs. 2581.700 Million

 

Forfeited Shares

900 Shares [Rs. 0.005 Million]

 

 

 

 

 

 

 

Total

 

Rs. 2581.700 Million

 

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

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

2581.700

2580.400

2580.400

(b) Reserves & Surplus

23779.800

20414.700

17579.600

(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)

26361.500

22995.100

20160.000

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

11544.600

9471.000

7073.500

(b) Deferred tax liabilities (Net)

600.200

128.200

128.200

(c) Other long term liabilities

0.000

0.000

0.000

(d) long-term provisions

185.900

119.800

495.100

Total Non-current Liabilities (3)

12330.700

9719.000

7696.800

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

10947.200

10155.400

8959.500

(b) Trade payables

7151.900

6644.800

5983.200

(c) Other current liabilities

2783.700

2453.300

2462.600

(d) Short-term provisions

760.100

869.600

945.700

Total Current Liabilities (4)

21642.900

20123.100

18351.000

 

 

 

 

TOTAL

60335.100

52837.200

46207.800

 

 

 

 

II.            ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

24906.200

23340.100

22626.100

(ii) Intangible Assets

55.800

56.500

64.500

(iii) Capital work-in-progress

723.200

2003.200

1791.000

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

7003.300

4928.600

3371.100

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

3506.300

2359.300

1892.100

(e) Other Non-current assets

0.100

5.400

20.400

Total Non-Current Assets

36194.900

32693.100

29765.200

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

9426.100

8779.600

7284.200

(c) Trade receivables

5189.300

4424.200

4055.500

(d) Cash and cash equivalents

1238.200

1506.000

393.700

(e) Short-term loans and advances

5030.400

2502.400

2147.500

(f) Other current assets

3256.200

2931.900

2561.700

Total Current Assets

24140.200

20144.100

16442.600

 

 

 

 

TOTAL

60335.100

52837.200

46207.800

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

 

31.03.2014

31.03.2013

31.03.2012

 

SALES

 

 

 

 

 

Revenue from Operations

47754.800

37802.900

34941.200

 

 

Other Income

844.400

934.600

1358.100

 

 

TOTAL                                     (A)

48599.200

38737.500

36299.300

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Materials Consumed

20965.000

16412.200

15687.600

 

 

Purchases of Stock-in-Trade

779.200

844.400

374.000

 

 

Project Expenses

145.700

280.700

136.000

 

 

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

(663.000)

(1660.100)

35.700

 

 

Employees benefits expense

5088.400

4422.200

3605.100

 

 

Other expenses

13494.500

11636.600

10090.400

 

 

Exceptional Items

164.000

0.000

0.000

 

 

Extraordinary Items

0.000

0.000

(2518.000)

 

 

TOTAL                                     (B)

39973.800

31936.000

27410.800

 

 

 

 

 

Less

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

8625.400

6801.500

8888.500

 

 

 

 

 

Less

FINANCIAL EXPENSES                                    (D)

2964.400

2684.400

2702.500

 

 

 

 

 

 

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

5661.000

4117.100

6186.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1575.100

1504.900

1305.100

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                              (G)

4085.900

2612.200

4880.900

 

 

 

 

 

Less

TAX                                                                  (H)

472.000

0.000

538.600

 

 

 

 

 

 

PROFIT AFTER TAX (G-H)                                (I)

3613.900

2612.200

4342.300

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

 

Export of goods calculated on F.O.B. basis

18622.900

14449.400

14871.000

 

 

Non-Compete Fees

54.200

0.000

0.000

 

 

Better Cotton Grant

22.800

25.200

24.500

 

TOTAL EARNINGS

18699.900

14474.600

14895.500

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Capital Goods

490.600

929.100

1577.200

 

 

Raw Materials and Accessories

2451.000

2870.500

1233.700

 

 

Dyes and Chemicals, Stores and Spares

816.800

738.700

612.700

 

TOTAL IMPORTS

3758.400

4538.300

3423.600

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

Basic

14.00

10.12

9.16

 

Diluted

14.00

10.12

16.83

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

30.06.2014

30.09.2014

31.12.2014

Type

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

12775.300

12676.700

13304.600

Total Expenditure

10764.600

10736.400

11102.400

PBIDT (Excl OI)

2010.700

1940.300

2202.200

Other Income

366.400

388.100

241.500

Operating Profit

2377.100

2328.400

2443.700

Interest

790.800

817.700

816.800

Exceptional Items

(1.700)

(32.700)

(24.500)

PBDT

1584.600

1478.000

1602.400

Depreciation

301.300

306.600

310.300

Profit Before Tax

1283.300

1171.400

1292.100

Tax

150.000

200.000

300.000

Provisions and contingencies

0.000

0.000

0.000

Profit After Tax

1133.300

971.400

948.900

Extraordinary Items

0.000

0.000

0.000

Prior Period Expenses

0.000

0.000

0.000

Other Adjustments

0.000

0.000

0.00

Net Profit

1133.300

971.400

948.900

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2014

31.03.2013

31.03.2012

PAT / Total Income

(%)

7.44

6.74

11.96

 

 

 

 

 

Net Profit Margin

(PBT/Sales)

(%)

8.56

6.91

13.97

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

7.77

5.69

11.89

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.15

0.11

0.24

 

 

 

 

 

Debt Equity Ratio

(Total Debt/Networth)

 

0.85

0.85

0.80

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.12

1.00

0.90

 

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

2580.400

2580.400

2581.700

Reserves & Surplus

17579.600

20414.700

23779.800

Net worth

20160.000

22995.100

26361.500

 

 

 

 

Long-term borrowings

7073.500

9471.000

11544.600

Short term borrowings

8959.500

10155.400

10947.200

Total borrowings

16033.000

19626.400

22491.800

Debt/Equity ratio

0.795

0.854

0.853

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

34941.200

37802.900

47754.800

 

 

8.190

26.326

 

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2012

31.03.2013

31.03.2014

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

34941.200

37802.900

47754.800

Profit

4342.300

2612.200

3613.900

 

12.43%

6.91%

7.57%

 

 

 

 

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

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

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

Yes

 

 

LITIGATION DETAILS

 

HIGH COURT OF GUJARAT

TAX APPEAL No. 1090 of 2014

Status: PENDING                       ( Converted from : O/ST/2479/2014 )                    CCIN No: 001092201401090

 

Last Listing Date: 17/11/2014

 

Coram: - HONOURABLE MR.JUSTICE KS JHAVERI

HONOURABLE MR.JUSTICE K.J.THAKER

 

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF INCOME TAX I

MRS MAUNA M BHATT for: Appellant(s) Description: http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

S.NO.

Name of the Respondant

Advocate On Record

1

ARVIND LIMITED

RULE SERVED for :Opponent(s) Description: http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1
MR VIJAY S RANJAN for :Opponent(s) Description: http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

Presented On

: 28/08/2014

Registered On

: 18/09/2014

Bench Category

: -

District

: AHMEDABAD

Case Originated From

: THROUGH HIS/ HER/ THEIR ADVOCATE

Listed

: 28 times

Stage Name

: FOR FINAL DISPOSAL

 

                                                                                                

Office Details

 

S. No

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

28/08/2014

APPEARANCE NOTE

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) Description: http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

0

MRS MAUNA M BHATT(174) for P:1

2

28/08/2014

CERTIFIED COPY

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) Description: http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

6

MRS MAUNA M BHATT(174), for P:1

3

28/08/2014

MEMO OF APPEAL/PETITION/SUIT

MRS MAUNA M BHATT ADVOCATE
for PETITIONER(s) Description: http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

20

MRS MAUNA M BHATT(174), for P:1

4

11/11/2014

VAKALATNAMA

MR VIJAY S RANJAN ADVOCATE
for RESPONDENT(s) Description: http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

5

MR VIJAY S RANJAN(6126) for R:1

 

Court Proceedings

 

S. No.

Notified Date

CourtCode

Board Sr. No.

Stage

Action

Coram

1

30/09/2014

9

8

ADMISSION (FRESH MATTERS)

FIXED NOTICE

·         HONOURABLE MS.JUSTICE HARSHA DEVANI 

·         HONOURABLE MS JUSTICE SONIA GOKANI

2

17/11/2014

5

52

FOR FINAL DISPOSAL

RULE/ADMIT

·         HONOURABLE MR.JUSTICE KS JHAVERI 

·         HONOURABLE MS.JUSTICE HARSHA DEVANI and HONOURABLE MS JUSTICE SONIA GOKANI and HONOURABLE MR.JUSTICE K.J.THAKER

 

Available Orders

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

View

Download

1

TAX APPEAL/1090/2014

·         HONOURABLE MS.JUSTICE HARSHA DEVANI 

·         HONOURABLE MS JUSTICE SONIA GOKANI

30/09/2014

N

ORDER

-

Y

2

TAX APPEAL/1090/2014

·         HONOURABLE MR.JUSTICE KS JHAVERI 

·         HONOURABLE MR.JUSTICE K.J.THAKER

17/11/2014

N

ORDER

-

Y

 

 

Certified Copy

 

S. No.

Applicant Name

Application Type

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MRS MAUNA M BHATT

ORDINARY

01/10/2014

O/38360/2014

30/09/2014

04/10/2014

07/10/2014

Delivered

ORDER

2

MRS MAUNA M BHATT

ORDINARY

18/11/2014

O/42981/2014

17/11/2014

19/11/2014

20/11/2014

Delivered

ORDER

 

 

INDEX OF CHARGES

 

S.NO.

CHARGE ID

DATE OF CHARGE CREATION/MODIFICATION

CHARGE AMOUNT SECURED

CHARGE HOLDER

ADDRESS

SERVICE REQUEST NUMBER (SRN)

1

10515334

15/07/2014

2,830,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

C16686990

2

10493707

11/03/2014

500,000,000.00

CANARA BANK

PCB, 104, JYOTI COMMERCIAL COMPLEX, NR. SHYAMAL CROSS ROADS, SATELLITE, AHMEDABAD, GUJARAT - 380015, 
INDIA

C04357356

3

10482339

28/02/2014

3,830,000,000.00

STATE BANK OF INDIA

MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI" COMPLEX,NR.MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA

B98398761

4

10472196

20/01/2014

3,900,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B94256500

5

10453218

06/09/2013

1,350,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B86723749

6

10429849

14/05/2013

750,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B76623339

7

10419190

22/03/2013

1,350,000,000.00

STATE BANK OF INDIA

MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI" COMPLEX, NR.MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA

B73026858

8

10419216

22/03/2013

1,000,000,000.00

STATE BANK OF INDIA

MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSID 
DHI"COMPLEX, NR.MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA

B73034290

9

10393746

29/11/2012

1,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B64792104

10

10388441

30/10/2012

250,000,000.00

ICICI BANK LIMITED

ZONAL HOUSE, 9TH FLOOR, JMC HOUSE, OPP. PARIMAL GARDEN, AMBAWADI, AHMEDABAD, GUJARAT - 380006, INDIA

B62762398

11

10381413

17/10/2012

800,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B60039781

12

10376483

17/09/2012

550,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B58096124

13

10377372

28/08/2012

1,000,000,000.00

STATE BANK OF INDIA

MID CORPORATE GROUP, COMMERCIAL BRANCH, "PARAMSIDDHI", NR. MAHAKANT BLDG., ELLISBRIDGE, AHMEDABAD, GUJARAT - 380006, INDIA

B58435439

14

10363118

08/06/2012

535,000,000.00

STATE BANK OF INDIA

MID CORPORATE GROUP, COMMERCIAL BRANCH, 1ST FLOOR, "PARAMSIDDHI", NR. MAHAKANT BLDG., ELLSBRIDGE, 
AHMEDABAD, GUJARAT - 380006, INDIA

B42681239

15

10358930

14/05/2013 *

1,000,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI,, MUMBAI, MAHARAS 
HTRA - 400025, INDIA

B76624253

16

10333350

22/03/2013 *

400,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, 
, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARAS 
HTRA - 400025, INDIA

B72430879

17

10312288

05/10/2011

700,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B23289382

18

10310959

15/07/2014 *

17,316,400,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

C19159359

19

10292233

31/05/2011

820,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B15008220

20

10292222

11/05/2011

75,000,000.00

STATE BANK OF INDIA

MID CORPORATE GROUP, COMMERCIAL BRANCH, 3RD FLOOR, "PARAMSIDDHI", NR. MAHAKANT BLDG., ELLSBRIDGE, 
AHMEDABAD, GUJARAT - 380006, INDIA

B15004443

21

10292227

09/05/2011

500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B15007438

22

10269521

17/02/2011

500,000,000.00

AXIS TRUSTEE SERVICES LIMITED

2ND FLOOR, E, AXIS HOUSE,BOMBAY DYEING MILLS COMP, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA

B06476824

23

10268862

10/02/2011

300,000,000.00

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

1ST FLOOR, NAVJIVAN AMRIT JAYANTI BHAVAN, NAVJIVAN P.O., AHMEDABAD, GUJARAT - 380014, INDIA

B05657176

24

10251221

16/12/2011 *

500,000,000.00

EXPORT - IMPORT BANK OF INDIA

CENTRE ONE BUILDING, FLOOR 21, WORLD TRADE CENTRE COMPLEX, CUFFE PARADE, MUMBAI, MAHARASHTRA - 400005, INDIA

B31737703

25

10247115

28/09/2010

750,000,000.00

AXIS TRUSTEE SERVICES LIMITED

MAKER TOWERS 'F', 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA

A97280226

26

10194926

28/12/2009

400,000,000.00

AXIS BANK LIMITED

CENTRAL OFFICE, MAKER TOWERS, "F" 13TH FLOOR, CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, 
INDIA

A76346972

27

10133914

10/01/2011 *

232,500,000.00

AXIS BANK LIMITED

CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING, 
BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400025, INDIA

B06297907

28

10126987

10/01/2011 *

400,000,000.00

AXIS BANK LIMITED

CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING, 
BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400025, INDIA

B06302004

29

10123879

10/01/2011 *

1,101,000,000.00

AXIS BANK LIMITED

CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING, 
BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400005, INDIA

B06297550

30

10119694

10/01/2011 *

500,000,000.00

AXIS BANK LIMITED

CORPORATE OFFICE, AXIS HOUSE, 02ND FLOOR, E WING, 
BOMBAY DYEING MILLS COMPOUND, P B MARG, MUMBAI, MAHARASHTRA - 400025, INDIA

B06306278

 

* Date of charge modification

 

 

UNSECURED LOANS

 

Particulars

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

LONG-TERM BORROWINGS

 

 

From Financial Institutions

25.800

25.800

SHORT TERM BORROWINGS

 

 

Under Buyer’s Credit Arrangement

884.700

498.700

Intercorporate Deposits

From Related Parties

0.100

2.600

From Others

4.300

18.600

 

 

 

Total

 

914.900

545.700

 

 

COMPANY BACKGROUND

 

Subject is one of the India’s leading vertically integrated textile companies with the presence of almost eight decades in this industry. It is among the largest denim manufacturers in the world. It also manufactures a range of cotton shirting, denim, knits and bottom weights (Khakis) fabrics and Jeans and Shirts Garments. Arvind, through its subsidiary company Arvind Lifestyle Brands Limited, is marketing in India the branded apparel under various brands and is also licensee in India for various international brands. The brands portfolio of the company includes International brands like Arrow, US Polo, Izod, Elle, Cherokee etc. It also operates apparel Value Retail stores MEGAMART. It also operates the specialty retail stores under the licensing arrangement with international brands of Debanhams and Next. Arvind also has the presence in Telecom business directly and through joint venture companies. Recently Arvind has made foray in to Technical Textiles on its own and in joint venture with leading global players.

 

 

OPERATIONS

 

The macroeconomic scenario during the year was characterized by world economy continuing its downward trend on growth; as world economy further decelerated growth rate to 3.0% in 2013 compared to 3.2% in 2012. India’s economy showed some signs of recovery, albeit slow, in FY 2013-14. India’s GDP growth rate moderately increased to 4.9%, as compared to 4.5% in FY 2012-13. This was accompanied by some easing in the inflation rate. However, high interest rates, a depreciated currency and uncertainty due to general elections have led to deceleration in the economic recovery. Particularly, performance of industry sector was lackluster last year, owing to high interest cost and low investment. In the backdrop of above macro-economic scenario, the performance of the Company is highly encouraging. The Company has closed the financial year 2013-14 with 26% growth in sales and 29% growth in Operating Earnings before Interest, Depreciation and Taxes. (Operating EBITDA). PBT (excluding Exceptional Income) has shown a growth of 63% compared to the previous year.

 

The Company has achieved the growth across all business segments. The Revenue from Denim has increased by 22% (17% increase, ignoring the loss of volume on account of strike in the previous year). As a result of expansion in capacity and increase in price, the Woven Business registered a growth of 29% in Revenue, Voiles Business registered a growth of 21%, Knits Business registered a growth of 48% and Garments Business registered a growth of 27%.

 

 

FINANCE

 

The Company has repaid the installments of Term Loans amounting to Rs.2280.000 Million during the current year.

 

The Company has also made fresh borrowings of Rs. 4470.000 Million for funding capital expenditure and other requirements. Long Term Debt of the Company stands to Rs.13220.000 Million as on 31st March, 2014.

 

 

MANAGEMENT DISCUSSION AND ANALYSIS

 

OVERVIEW OF THE ECONOMY

 

In 2013, world economy continued its downward trend on growth; as world economy further decelerated growth rate to 3.0% in 2013 compared to 3.2% in 2012. India’s economy showed some signs of recovery, albeit slow, in FY 2013-14. India’s GDP growth rate moderately increased to 4.9%, as compared to 4.5% in FY 2012-13. This was accompanied by some easing in the inflation rate. However, high interest rates, a depreciated currency and uncertainty due to general elections have led to deceleration in the economic recovery. Particularly, performance of industry sector was lacklustre last year, owing to high interest cost and low investment. In August last year, currency depreciated to all-time low against US$ (Rs. 68.80 per US$). Depreciated currency, coupled with improvement in global demand particularly in the EU and the U.S., led to increase in exports growth. Total exports from India, in Rupee terms, grew by 15.8% in FY13-14 compared to last FY. This helped reduce trade deficit by 27% in this year compared to last year.

 

Looking ahead, the outlook for FY 2014-15 appears optimistic. Though last year started on a dismal note, the improvement in economic performance in the later half is likely to continue the momentum. While a lot will depend on the measures announced after formation of new government; resurgence in exports, reduction in inflation and deficits (trade, current and fiscal), along with global economic revival are likely to add impetus to the economy.

 

In FY 2014-15, India is likely to accelerate GDP growth rate to 5.5%-6.0%. The increase in growth rate is expected to be contributed majorly by the industrial sector, estimated to grow at 4% next year (up from ~1% in last FY). Unclogging of domestic policy logjam as well as improvement in private consumption demand is likely to drive the growth. Particularly, merchandise exports are expected to grow by 8%-10% in the next fiscal year, driven by global growth prospects. Though addressing supply-side constraints (e.g. in mining, power, and steel sectors) will be the key to continue this momentum and achieve the increase in growth rate.

 

Despite the modest expectations in the short term, the prospects of long term growth in India remain immensely strong. India’s growth model is domestic consumption-led. With level of consumption much higher than other Asian tigers (e.g. China) and quite close to developed economies (e.g. Japan), consumption is an important engine of India’s growth. Increasing consumption by burgeoning middle-class of India, along with the rising share of discretionary spend, will create a huge market opportunity for companies who have strong position in India.

 

 

INDIAN TEXTILE INDUSTRY

 

India is the world’s second largest producer of textiles and garments, with a massive and diverse raw material base. Due to this, Indian Textile Industry is not only of paramount importance to the national economy, it also has an influential presence in global market.

 

In India, textile and clothing industry contributes nearly 4% of India’s GDP, 12% of total industrial production and 11% of total exports of goods. Textile Industry provides direct employment to 35 million and indirect employment to 45 million, which makes it the 2nd largest employment provider in the country after Agriculture.

 

Globally, India has the 2nd largest textile manufacturing capacity, in terms of spindles and looms. India is the 4th largest exporter of textiles and clothing products to the world, with a share of 4.4% in the global trade. Over last 10 years, exports of textiles and clothing products from India have grown at more than 11% p.a., which increased the share in global trade from 3% to 4.4% between 2003 and 2012.

 

Indian textiles industry has a strong presence across the value chain. The fundamental strength of this industry flows from its strong production base of wide range of fibres / yarns from natural fibres like cotton, jute, silk and wool to synthetic /man-made fibres like polyester, viscose, nylon and acrylic. Globally, India is the largest producer of Jute fibre, and 2nd largest producer of cotton, silk, cellulosic and synthetic fibres.

 

The Indian textile industry is set for strong growth, buoyed by both strong domestic consumption as well as export demand. The total Indian textile industry size, including readymade garments, was estimated to be Rs.4.7 lakh Crores (nearly USD 87 Bn) in 2012, of which apparel had a share of 69% of the overall market and textiles contributed the remaining 31%. The sector is projected to grow over the next 10 years at a CAGR of 9-10%, to reach Rs. 10 lakh Crores (nearly USD 200 billion) by 2020.

 

The exports of textile and clothing products, accounts for about 35% of the total textiles sector in India. Exports will continue to play a pivotal role in driving future growth of this sector. Global trade in textiles and clothing is expected to see a strong growth, from current US$ 750 Bn in 2012 to reach nearly US$ 1,150 by 2020. This will create an incremental global demand of US$ 400 Bn primarily driven by the increasing global consumption, continued shift of production base from developed to developing economies and also value growth from inflation.

 

India is poised to be a strong contender to grab a share in the growing pie of global trade. The cost competitiveness of India, as compared to some of the other exporting countries in Asia (e.g. China) has improved

over recent years. Availability of key inputs, i.e. abundant supply of fibres, industrial workforce and young demographic are favouring India. These advantages combined with entrepreneurial ability and capability to build infrastructure will be key success factors for India’s rise in global trade.

 

 

COTTON

 

For the current cotton season (Oct ’13 to Sep ’14), the Cotton Advisory Board has projected cotton production at 375 lakh bales (of 170kgs each) from 116 lakh hectare area. It is estimated that the yields will improve by ~7% this year, compared to the last year when 365 lakh bales production came from 120 lakh hectare area. The exports of cotton are strong this year, and have already crossed 94 lakh bales in first 6 months of Oct-Sep season.

 

Global production of cotton, as per estimates from International Cotton Advisory Committee, is projected to decline to 25.73 million tons compared to estimated production of 26.83 million tons last year.

 

India is the second largest producer of cotton, with a small gap from the leader China. India exports about ~90-100 lakh bales (approx. 1/4th of production), mainly to neighbouring countries China, Bangladesh and Pakistan. During 2012-13, the exports to Bangladesh increased significantly by approx. +60% compared to the year 2011-12, driven by growth in Bangladesh’s readymade garment exports.

 

Outlook on cotton prices this year are expected to be influenced by factors beyond just the production in India. Other factors that are likely to impact prices are – China’s policy, global weather and INR exchange rate. The biggest factor is expected to be Chinese policy. If China pushes to get rid of its huge stockpile (~60% of global stock), it could further cut reserve prices and hence limit the demand of imported cotton. This may result in downside on the prices later in the year. On the other hand, US and China reported less than optimal weather conditions in the beginning of the year, which creates some uncertainty towards eventual global production. The weather risk might push the prices on upside. Currency is also expected also play a significant role this year. In the scenario that INR appreciates further against USD, it will put pressure on India’s exports of both cotton as well as cotton yarn.

 

 

TEXTILE OUTLOOK

 

In the mid-long term, the Indian textile industry is expected to grow very strongly with growth being balanced from both domestic consumption as well as exports demand. In the near-term, domestic demand would depend on the revival of the macro-economic factors. On exports front, there are both positive and negative factors. Positive factors include the weak currency and decreasing cost competitiveness of China that are likely to give positive impetus to the Indian exports. At the same time, factors like slowdown and uncertainty in the global markets, volatile foreign exchange rates and increase in cotton and yarn prices are likely to negatively affect growth and profitability for the textile exports.

 

The company is looking grow selectively in high value added segments within textiles, for maximum capital efficiency as well as de-risked business model. It is moving steadily towards a verticalized setup of fabrics along with garmenting, which offers much better returns profile along with more robust business model.

 

 

BUSINESS REVIEW AND DEVELOPMENTS

 

DENIM

 

Denim business achieved 18% growth in volume at 105 mn. mtrs, highest ever volume in last decade. The average price realization per mtr also grew by 6%. Driven by both increase in volume as well as selling price the Revenue grew by 22%. The growth is driven by both domestic as well as export markets.

 

 

WOVEN FABRICS

 

Woven Fabrics business achieved 19% growth in volume at 103 mn. mtrs, highest ever volume. The average price realization per mtr also grew by 8%. Driven by both increase in volume as well as selling price the Revenue grew by 26%. The growth is driven by domestic market which grew by 23%.

 

 

GARMENTS

 

Garments which is part of Arvind’s verticalisation strategy, is now on growth momentum. During the year, Garments business has registered growth in Revenue of 33% driven by volume growth of 23%. The company manufactures Jeans, Shirts and Knitted garments at its Garments plants situated in and around the city of Bangalore. The Company has set-up plant for manufacturing Suits through joint venture company Arvind Goodhill Suit Manufacturing Private Limited.

 

 

OUTLOOK

 

The Company is now at an inflection point with potential break-out growth in Brands and Retail business and strong growth in Textile business led by Woven fabrics and vertical model of Garmenting. While the margins in Textile business are expected to be maintained at present level, they are sensitive to currency fluctuations. Brands and Retail business is expected to witness margin expansion.

 

With strong portfolio of foreign and domestic brands, the Company is now poised to lead the branded apparels space in India. While with brands like ARROW, USPA, Tommy Hilfiger, CK, Nautika, Flying Machine etc. Arvind will dominate menswear category, it is building meaningful presence in Kids, Innerwear and Women category. With successful re-positioning of Megamart as Value Retail format, it will not only drive the growth but will lead to margin expansion too.

 

Under the above scenario, the Company is expecting revenue growth of about 22-24% for the year 2014-15. The Textiles business may achieve growth of around 15%, whereas Brands and Retail business may clock growth in excess of 30%.

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER, 2014

 

(RS. IN MILLIONS)

 

SR.

NO.

PARTICULARS

Quarter Ended

Nine Months Ended

 

31.12.2014

(Unaudited)

30.09.2014

(Unaudited)

31.12.2014

(Unaudited)

1

Income from Operations

 

 

 

Net Sales/ Income from Operations [Net of excise duty]

13273.700

12644.600

38556.900

Other Operating Income

30.900

32.100

199.700

Net Sales/Income from Operations [Net]

13304.600

12676.700

38756.600

 

 

 

 

2

Expenditure

 

 

 

Cost of Material Consumed  

5354.300

5841.300

16688.100

Purchase of Stock In Trade

279.700

197.900

632.900

Project Expenses

19.800

21.800

79.900

Change in Inventories of Finished Goods, Work-In-Progress and Stock In Trade

(323.000)

(954.300)

(1296.500)

Employee Benefits Expenses

1455.900

1452.600

4254.700

Depreciation and Amortization Expenses

310.300

306.600

918.200

Power and Fuel

1158.900

1213.400

3519.600

Stores Consumption

1081.200

1093.200

3255.000

Other Expenses

2075.600

1870.500

5514.300

Foreign Exchange Loss / (Gain)

(17.300)

(11.000)

(83.100)

Total

11395.400

11032.000

33483.100

 

 

 

 

3

Profit From Operations before Other Income, Interest and Exceptional Items (1-2)

1909.200

1644.700

5273.500

 

 

 

 

4

Other Income

224.200

377.100

957.500

 

 

 

 

5

Profit Before Interest and Exceptional Items (3+4)

2133.400

2021.800

6231.000

 

 

 

 

6

Interest

816.800

817.700

2425.300

 

 

 

 

7

Profit After Interest but before Exceptional Items (5-6)

1316.600

1204.100

3805.700

 

 

 

 

8

Exceptional Items

(24.500)

(32.700)

(58.900)

 

 

 

 

9

Profit from Ordinary Activities before Tax (7+8)

1292.100

1171.400

3746.800

 

 

 

 

10

Tax Expense

 

 

 

Current Tax

150.000

100.000

642.800

 

Deferred Tax

150.000

100.000

380.900

 

MAT Credit Entitlement

0.000

0.000

(642.800)

 

 

 

 

 

11

Net Profit from Ordinary Activities after Tax (9-10)

992.100

971.400

2665.000

 

 

 

 

12

Extraordinary Item (net of expense)

0.000

0.000

0.000

 

 

 

 

13

Net Profit for the period (11-12)

992.100

971.400

2665.000

 

 

 

 

14

Paid-up Equity Share Capital (Face Value of Rs.10/- Each)

2582.400

2582.400

2582.400

 

 

 

 

15

Reserves Excluding Revaluation Reserve

--

--

--

 

 

 

 

16

Basic and Diluted Earnings Per Share (EPS) (Rs.)-Not Annualised

 

 

 

a) Basic

3.84

3.76

11.99

b) Diluted

3.84

3.76

11.99

 

 

 

 

17

Public Shareholding

 

 

 

- Number of Shares

146020138

146025138

146020138

- Percentage of Shareholding

56.54%

56.54%

56.54%

 

 

 

 

18

Promoters and Promoter Group Shareholding

 

 

 

a) Pledged/Encumbered

 

 

 

- Number of Shares

455000

455000

455000

- Percentage of Shares (as a % of the Total Shareholding of promoter and promoter group)

0.41%

0.41%

0.41%

- Percentage of Shares (as a % of the Total Share Capital of the Company)

0.18%

0.18%

0.18%

 

 

 

 

b) Non Encumbered

 

 

 

- Number of Shares

111767931

111762931

111767931

- Percentage of Shares (as a % of the Total Shareholding of Promoter and Promoter Group)

99.59%

99.59%

99.59%

- Percentage of Shares (as a % of the Total Share Capital of the Company)

43.28%

43.28%

43.28%

 

 

PARTICULARS

Quarter Ended 30.12.2014

Pending at the beginning of the quarter

Nil

Received during the quarter

23

Disposed of during the quarter

23

Remaining unresolved at the end of the quarter

Nil

 

NOTES:

 

  1. The limited review of above unaudited financial results as required under Clause 41 of listing agreement has been carried out by statutory auditors.

 

  1. The above results were reviewed by the Audit Committee and taken on record by the Board of Directors at their meeting held on February 05, 2015.

 

  1. The Company has provided depreciation on fixed assets considering useful lives specified in Schedule II of the Companies Act, 2013 or as re-assessed. Accordingly, the useful life of certain assets required a change from previous estimates. Management believes that the revised useful lives of the assets reflect the periods over which these assets are expected to be used. As a result of change, the charge for depreciation for the quarter ended December 31, 2014, is lower by Rs. 90.600 Million for the assets held as at April 01, 2014.

 

  1. Other Income for the quarter includes (a) profit / (loss) on sale of land held for sale/fixed assets (Rs. 7.000) Million (quarter ended September 30, 2014 Rs. 128.300 Million, quarter ended December 31, 2013 Rs. 3.800 Million, nine months ended December 31, 2014 Rs. 117.400 Million, nine months ended December 31, 2013 Rs. 87.200 Million, year ended March 31, 2014 Rs. 83.300 Million) and (b) profit on sale of investments of Rs. Nil (quarter ended September 30, 2014 Rs. Nil, nine months ended December 31, 2014 Rs. 159.700 Million).

 

  1.  Exceptional Item for the quarter includes (a) Settlement charges of Deferred Electricity Duty Rs. Nil (quarter ended September 30, 2014 Rs. 28.900 Million) and (b) Retrenchment Compensation paid to workers retired under Voluntary Retirement Scheme Rs. Rs. 2.45 Crores (quarter ended September 30, 2014 Rs. 3.800 Million, quarter ended December 31, 2013 Rs. 6.300 Million, nine months ended December 31, 2014 Rs. 30.000 Million, nine months ended December 31, 2013 Rs. 163.900 Million, year ended March 31, 2014 Rs. 164.000 Million).

 

  1.  The Scheme of Arrangement ("the Scheme") between Arvind Limited ("the Company") and its wholly owned subsidiary Arvind Infrastructure Limited ("AIL")for demerger and transfer of Real Estate Undertaking ("demerged undertaking") to AIL was approved by the board of directors of the Company at its meeting held on July 30, 2014. The Scheme will be effective only after getting necessary statutory approvals. The Impact of demerged undertaking on Revenue, Results and Capital Employed is as per Segment Reporting published herewith.

 

  1. Figures of the previous quarter / year have been regrouped wherever necessary.

 

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

 

(RS. IN MILLIONS)

 

SR.

NO.

 

PARTICULARS

 

Quarter Ended

Nine Months Ended

31.12.2014

(Unaudited)

30.09.2014

(Unaudited)

31.12.2014

(Unaudited)

1

Segment Revenue [Net Sales/ Income from Operations]

 

 

 

 

Textiles

12862.800

12246.200

37505.300

 

Brand and Retail

224.800

220.000

621.900

 

Real Estate

0.000

0.000

0.000

 

Others

335.700

326.700

945.800

 

Total

13423.300

12792.900

39073.000

 

 

 

 

 

 

Add: Other Unallocable Income

0.000

0.000

0.000

 

 

 

 

 

 

Less : Inter Segment Revenue (Net of Excise)

118.700

117.700

316.400

 

 

 

 

 

 

Net Sales / Income from Operations

13304.600

12676.700

38756.600

 

 

 

 

 

2

Segment Results [Profit before Interest and Tax]

 

 

 

 

Textiles

2149.000

1998.600

6054.200

 

Brand and Retail

(47.400)

(40.100)

(118.200)

 

Real Estate

(2.000)

(2.100)

(5.000)

 

Others

(54.400)

(23.400)

(108.000)

 

Total

2045.200

1933.000

5823.000

 

 

 

 

 

 

Less :Interest

816.800

817.700

2425.300

 

Less : Other Unallocable Expenses

(63.700)

(56.100)

(349.100)

 

 

 

 

 

 

Profit Before Extraordinary Items and Tax 

1295.200

1171.400

3746.800

 

 

 

 

 

3

Capital Employed

 

 

 

 

Textiles

31112.900

30473.500

31112.900

 

Brand and Retail

809.200

764.900

809.200

 

Real Estate

1661.900

1662.400

1661.900

 

Others

1427.300

1256.800

1427.300

 

Unallocable

20773.900

20073.500

20773.900

 

Total Capital Employed In Company

55785.200

54231.100

18588.200

 

 

STANDALONE STATEMENT OF ASSETS AND LIABILITIES

 

(RS. IN MILLIONS)

 

PARTICULARS

 

30.09.2014

(Unaudited)

A. EQUITY AND LIABILITIES

 

1. Shareholders’ Funds

 

a] Share Capital

2582.400

b] Reserves and Surplus

24406.700

c] Money received against share warrants  

0.000

Sub-total – Shareholders’ funds

26989.100

 

 

2. Non-current Liabilities

 

a] Long term Borrowings

11454.300

b] Deferred Tax Liabilities

760.200

c] Other current liabilities

0.000

d] Long term provisions

360.100

Sub-total - Non-current Liabilities

12574.600

 

 

3. Current Liabilities

 

a] Short term Borrowings

13714.300

b] Trade Payables

6685.300

c] Other Current Liabilities

3187.900

d] Short Term Provision

136.600

Sub-total -  Current Liabilities

23724.100

 

 

TOTAL -  EQUITY AND LIABILITIES

63287.800

 

 

B ASSETS

 

1. Non-current assets

 

a] Fixed assets

26147.300

b] Non-current investment

7279.400

c] long Term loans and Advances

3924.700

d] Other non-current assets

0.100

Sub-total – Non- current assets

37351.500

 

 

2. CURRENT ASSETS

 

 

Current Investments
0.000

 

Inventories
10393.400

 

Trade Receivables
4747.500

 

Cash & Bank Balances
469.100

 

Short Term loans and advances
7560.000

 

Other Current Assets
2766.300

  Sub-total – Current Assets
25936.300

 

 

TOTAL - ASSETS

63287.800

 

 

CONTINGENT LIABILITIES:

 

Particulars

31.03.2014

(Rs. In Million)

31.03.2013

(Rs. In Million)

(a) Bills Discounted

1517.200

1175.900

(b) Claims against the Company not acknowledged as debts

83.800

78.200

(c) Guarantees given by the Banks on behalf of the Company

654.100

694.800

(d) Guarantees given by the Company to Banks on behalf of Subsidiaries/

Joint Ventures

5333.100

3989.900

(e) Disputed Demands in respect of Excise/Custom Duty

337.100

293.300

Sales Tax

203.700

203.700

Income Tax

47.900

190.400

Service Tax

7.000

8.400

 

NOTE:

Future cash outflows in respect of (e) above are determinable only on receipt of judgements/ decisions pending with various forums/ authorities.


FIXED ASSETS:

 

Tangible Assets

v  Leasehold Land

v  Freehold Land

v  Building

v  Plant and Machinery

v  Furniture and Fixtures

v  Office Equipments

v  Leasehold Improvements

v  Vehicles

 

Intangible Assets

 

v  Patent and Technical Knowhow

v  Computer Software

 

 

PRESS RELEASE

 

ARVIND LIMITED: KNITTING PRETTY

 

Arvind's scrip now trades at 18.6 times FY16 estimated earnings, more than double its historical average one-year forward price-earnings ratio of 7.2 times

 

Mumbai September 24, 2014

 

The shares of Arvind Limited, Ahmedabad-based textile company, which had paused for three years after rallying strongly between 2009 and 2011, have since surged from Rs 67.60 (its 52-week low on August 8, 2013) to Rs 336, close to its all-time high in April 1992.


This rally, specially since January, is proof of the Arvind story clicking with investors. According to the company, the story is of building on its success as a textile and denim player and striving to become a brands, retail and garment company as well.


"We took two key steps, a clear strategic direction and focus on operational excellence," says Jayesh Shah, director and chief financial officer.


"While we are on a strong footing globally on operational excellence in textiles, we continue to strive for greater heights. In brands and retail, we are building a business that meets global standards of retailing and supply-chain capabilities."

Besides, it has de-merged the real estate business to de-risk its investors.  New areas of business have been identified to push growth. These include the launch of the e-commerce business and expansion in technical textiles, to cater to business-to-consumer (B2C) and business-to-business (B2B) operations, respectively.


The brands and retail business have contributed significantly to Arvind's re-rating story. It has established strong partnerships with global brands like Tommy Hilfiger, Debenhams, Nautica, Next, Hanes, GAP and others.


Even as the textile business, two-thirds of revenues in FY14, continues to do well, analysts expect its brands and retail business (28 per cent of revenues) to be a key growth engine.


Other factors that have contributed to the rally include delivering results and meeting/beating investor expectations; macroeconomic factors like favourable currency, cotton, political stability; higher coverage by top analysts; and marquee/foreign institutional investors (FIIs). At the end of the June quarter, FIIs owned 23.3 per cent of Arvind compared with 15.7 per cent at the end of the September quarter. Promoter holding remains stable at 43.5 per cent.


"Though we believe this is a long journey, in terms of capital allocation, there is greater focus on asset-light businesses like brands and garmenting which also strengthens the fabric business model. Our textiles business is also becoming more differentiated on capabilities in the global context," Shah says.

 

It is a strategy similar to what Arvind initiated in the 1990s, of balancing B2B and B2C businesses (though majorly in denim).

 

The company expects to reach $3 billion in topline by FY19, with $1 billion targeted to come from brands. The major growth drivers will be B2C businesses, growing at 30-35 per cent annually, whereas large growth will be led by garmenting operations in textiles. Arvind expects the e-commerce business to contribute Rs 10000.000 Million to its revenues in three years.


In a report last week, Niket Shah and Atul Mehra of Motilal Oswal Securities said, “We believe Arvind’s foray in e-commerce will provide a huge edge, given its backward integration into textiles and its strong expertise in supply-chain management. We believe the tie-up of GAP and Children’s place complemented by the launch of e-commerce and restructuring makes a strong case for re-rating.”


The management believes branded garments business is the only category where e-commerce players are earnings before interest, tax, depreciation and amortisation (Ebitda)-positive, which means it should contribute to profits from the start.


The challenge that Arvind still faces is the level of debt at nearly Rs 30000.000 Million, reflecting a consolidated debt-equity ratio of 1.27 at the end of FY14. However, the company is confident that over the next two-three years, it will grow in absolute terms but reduce leverage. Measures to turnaround MegaMart, its apparel retail stores, over the next two years should add to Arvind’s profits.


While Arvind is planning a Capex of Rs 4000.000-5000.000 Million for the next three-four years, it will be funded through operating cash flows. "Beyond this, we also have Arvind's land bank that we will continue to monetise opportunistically," Shah adds.


Analysts expect land (not a part of the demerged real estate business) monetisation to fetch up to Rs 5000.000 Million.


As a result of these initiatives and driven by brands and textiles expansion, analysts at Standard Chartered Securities expect Arvind's return on capital employed to improve by more than 300 basis points over FY14-17 to 23 per cent. They also believe Arvind's brands business could list around FY17-18. Such a move could help unlock value for shareholders.


Most analysts remain positive on the company. The flip side is the average target price of Rs 289 of analysts polled by Bloomberg since July, which indicates that the good news priced in. Arvind’s scrip now trades at 18.6 times FY16 estimated earnings, more than double its historical average one-year forward PE of 7.2 times. While the price of its key raw material cotton is on a decline, execution in brands business is the key risk. Investors with a long-term horizon can consider the stock on a meaningful correction.

 

 

CREYATE WILL BE YOUR OWN PERSONALISED GARMENT

 

Globally, the trend is towards personalisation of garments, according to Kulin S Lalbhai, the scion of Arvind Limited and the brain behind omni-channel retail brand Creyate.

In a chat with BusinessLine, Lalbhai talks about how Creyate, which was launched four months back, can become a ₹100-crore brand and its retail expansions plans. Excerpts

How different is Creyate from the local darzi (tailor)? Isn’t the essence of the brand on customised tailoring, something which has been around for ages in our country? 

Creyate is an omni-channel brand which means it is both online and offline. It is a start-up and we are looking to change the way people shop for apparel. E-commerce is the next big thing and we want to sell personalised clothing.

However, in the online space, everything is mass manufactured. So when you walk into a Creyate showroom, you can choose from hundreds of clothing material and create your personalised suiting, shirting. Our 3D visualisation software helps you to create your garment by taking accurate measurements and deliver it in 12 days at your doorstep.

Will personalisation make the end product expensive? Also from the company’s perspective wouldn’t it be expensive to make one garment and deliver it?

The products may be more expensive by 15-20 per cent. But it will be your [own] personalised product and not mass manufactured and marketed. You can create more than 100,000 variations on the website. The designs will be created in our automated factory at Bengaluru. Creyate will cater to men primarily with shirts, suits, trousers; and shirts and denims for women. The shirts will be available at price points ranging from Rs. 0.002 Million to Rs. 0.020 Million, denims from Rs. 0.002 Million to Rs. 0.800 Million

Is Creyate targeted at only those cities where it can have physical stores?

Since this is a start-up model, we intend to pilot the concept in the top 15-20 cities initially. In cities where we are not in a position to have our own stores, our representatives or Style Stewards will be doing home visits and take your measurements. Following this, you can get your made-to-order apparels.

 Is there a global model you followed when you were looking to launch Creyate?

We borrowed ideas from several international firms in sectors like telecom, automobile and apparels and realised that personalisation was the way forward. In e-commerce also, personalisation is the trend. However, e-commerce, per se, doesn’t offer the same. We saw a long-term opportunity there. We expect the business to help us achieve revenues of Rs. 1000.000 Million in a couple of years.

 What are the plans for the brand?

We will be launching the brand in international markets such as the US and Europe in the near term. In India, we already have opened four stores. We will be largely targeting malls with an average store size of 600 sq feet. The idea is to keep the costs low.

What is the kind of investment you have made in the brand?

As I mentioned, it is a start-up and we have so far invested about Rs. 80.000 Million

 

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. 62.35

UK Pound

1

Rs. 9.09

Euro

1

Rs.67.13

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRP

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

ART

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

8

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

8

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILITY 

1~10

7

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

8

--CREDIT LINES

1~10

8

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

DEFAULTER

 

 

--RBI

YES/NO

NO

--EPF

YES/NO

NO

TOTAL

 

68

 

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.