MIRA INFORM REPORT

 

 

Report No. :

354809

Report Date :

19.12.2015

 

IDENTIFICATION DETAILS

 

Name :

GARDEN SILK MILLS LIMITED

 

 

Registered Office :

1st Floor, Tulsi Krupa Arcade, Near Aai Mata Chowk, Puna - Kumbharia  Road, Dumbhal, Surat – 395010, Gujarat

Tel. No. :

91-261-2311197

 

 

Country :

India

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

23.07.1979

 

 

Com. Reg. No.:

04-003463

 

 

Capital Investment / Paid-up Capital :

Rs.420.825 Million

 

 

CIN No.:

[Company Identification No.]

L17111GJ1979PLC003463

 

 

IEC No.:

0888005482

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACG8932C

 

 

Legal Form :

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

 

 

Line of Business :

Subject is engaged in manufacturing of polyester chips, polyester filament yarn and polyester textile fabrics. It manufactures synthetic fabric. (From Indirect Sources)

 

 

No. of Employees :

5636 (Approximately)

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (27)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Exist

 

 

Comments :

Subject was incorporated in 1979 and it is engaged in manufacturing of polyester chips, polyester filament yarn and polyester textile fabrics. It manufactures synthetic fabric under the brand names, Garden and Vareli.

 

Rating remain constrained on account of company’s continuing declining sales coupled with cash losses resulting in tight liquidity position, highly leveraged capital structure, weak debt coverage metrics, volatility in the raw material prices and limited presence in the textile value chain amidst increasingly competitive environment.

 

However, rating weakness is partially offset by well-established track record of company’s operations and extensive industry experience of promoters in textile industry.

 

Trade relations are reported as fair. Payments are reported to be slow.

 

In view of aforesaid, the company can be considered for business dealing with some caution.     

 

NOTES :

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

 

ECGC Country Risk Classification List – March 31, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

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

Long Term Bank Facilities- Term Loan : B

Rating Explanation

Risk-prone-credit-quality and carries very high credit risk.

Date

09.12.2015

 

Rating Agency Name

CARE

Rating

Short Term Bank Facilities- Non-fund based working capital limits :A4

Rating Explanation

Minimal degree of safety and very high credit risk

Date

09.12.2015

 

 

RBI DEFAILTERS’ LIST STATUS

 

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

 

EPF (Employee Provident Fund) DEFAILTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2015.

 

INFORMATION DENIED BY

 

Name :

Mr. Alok Praful Shah

Designation :

Chief Financial Officer

Contact No.:

91-261-2311197

Date :

12.12.2015

 

LOCATIONS

 

Registered Office :

1st Floor, Tulsi Krupa Arcade, Near Aai Mata Chowk, Puna - Kumbharia  Road, Dumbhal, Surat – 395010, Gujarat, India

Tel. No.:

91-261-2311197 / 2311615

Fax No.:

91-261-2311029

E-Mail :

sharedepartment@gardenvareli.com

Website :

http://www.gardenvareli.com

 

 

Corporate Office :

Manek Mahal, 90, Veer Nariman Road, Churchgate, Mumbai – 400020, Maharashtra, India

Tel. No.:

91-22-22873117-19

Fax No.:

91-22-22048112

 

 

Factory 1 :

Vareli Complex, Village Vareli, Taluka Palsana, Surat – 394327, Gujarat, India

Tel. No.:

91-2622-271241-47

 

 

Factory 2 :

Village Jolwa, Taluka Palsana, Surat – 394305, Gujarat, India

Tel. No.:

91-2622-271287-89

 

 

Factory 3 :

Garden Silk Mills Complex, Sahara Gate, Surat – 395010, Gujarat India

 

 

DIRECTORS

 

AS ON 31.03.2015

 

Name :

Mr. Praful Amichand Shah

Designation :

Managing Director

Address :

Dr. Amichand Shah’s Wadi, Rampura Tunki, Surat – 395003, Gujarat, India

Date of Birth/Age :

14.12.1938

Date of Appointment :

01.09.2013

DIN No. :

00218143

 

 

Name :

Mr. Alok Praful Shah

Designation :

Whole-time Director

Address :

Dr. Amichand Shah’s Wadi, Rampura Tunki, Surat – 395003, Gujarat, India

Date of Birth/Age :

11.09.1970

Date of Appointment :

01.11.2014

DIN No. :

00218180

 

 

Name :

Mr. Sanjay Suresh Shah

Designation :

Whole-time Director

Address :

At and Post Antroli, Taluka Palsana, Dist. Surat, Gujarat, India

Date of Birth/Age :

19.02.1956

Date of Appointment :

19.02.1990

DIN No. :

00024004

 

 

Name :

Mr. Suhail Praful Shah

Designation :

Whole-time Director

Address :

Dr. Amichand Shah’s Wadi, Rampura Tunki, Surat – 395003, Gujarat, India

Date of Birth/Age :

01.09.1974

Date of Appointment :

01.12.2012

DIN No. :

00719002

 

 

Name :

Mr. Arunchandra Navnitlal Jariwala

Designation :

Director

Address :

901, Shree Apartments, Makkai Pool, Nanpura, Surat – 395007, Gujarat, India

Date of Birth/Age :

05.08.1931

Date of Appointment :

18.07.1988

DIN No. :

00024008

 

 

Name :

Mr. Yatish Chandrakant Parekh

Designation :

Director

Address :

Sunayan Bungalow No. 2, Adarsh Society, Athwalines, Surat – 395007, Gujarat, India

Date of Birth/Age :

30.11.1951

Date of Appointment :

19.10.2001

DIN No. :

00168488

 

 

Name :

Mr. Harish Chandra Mishra

Designation :

Nominee Director

Address :

Flat No. 41, Antariksha C.H.S., K.G. Marg, Prabhadevi, Mumbai – 400025, Maharashtra, India

Date of Birth/Age :

29.05.1953

Date of Appointment :

20.06.2013

DIN No. :

03111520

 

 

Name :

Sunil Sureshchandra Sheth

Designation :

Additional director

Address :

601 Leela Apartment 355 S.V. Road, Vile Parle West, Mumbai, 400056, Maharashtra, INDIA

Date of Appointment :

13.08.2014

DIN No. :

00024033

 

 

Name :

Anita Mandrekar

Designation :

Additional director

Address :

Flat No 39, 4th Floor, Walchand Terraces, 79-81, Tardeo Road, Tardeo, Mumbai - 400034, Maharashtra, India

Date of Appointment :

30.05.2015

DIN No. :

00623327

 

 

Name :

Deepak Narandas Shah

Designation :

Additional Director

Address :

603, Panchasheel Condominium, C Road, Churchgate, Mumbai-400020, Maharashtra, India

Date of Appointment :

05.12.2015

DIN No. :

07356807

 

 

KEY EXECUTIVES

 

Name :

Kamlesh Balvantrai Vyas

Designation :

Company Secretary

Address :

201, Poonam Palace, Opposite Umra Pokice Station, Athwalines, Surat – 395001, Gujarat, India

Date of Birth/Age :

27.05.1960

Date of Appointment :

21.11.1996

PAN No.:

AARPV5514F

 

 

Name :

Mr. Janak Glasswala

Designation :

Accounts Department

 

 

Name :

Mr. Alok Praful Shah

Designation :

Chief Finance Officer

Address :

Garden House, Dr. Amichand Shah's Wadi, Rampura Tunki, Surat - 395003, Gujarat, India

Date of Appointment :

01.11.2014

PAN No.:

AHHPS2728P

 

 

SHAREHOLDING PATTERN

 

AS ON 30.09.2015

 

Category of Shareholder

Total No. of Shares

Total Shareholding as a % of Total 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

6373683

15.15

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

11643766

27.67

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

6284781

14.93

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

6284781

14.93

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

24302230

57.75

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

 

 

Total shareholding of Promoter and Promoter Group (A)

24302230

57.75

(B) Public Shareholding

 

 

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

 

 

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

12100

0.03

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

1050

0.00

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

16215

0.04

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

29365

0.07

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

 

 

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

4558239

10.83

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

6614119

15.72

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

2571361

6.11

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

4007211

9.52

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

3999965

9.51

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

6556

0.02

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

690

0.00

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

17750930

42.18

Total Public shareholding (B)

17780295

42.25

Total (A)+(B)

42082525

100.00

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

0

0.00

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

0

0.00

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

0

0.00

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

0

0.00

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

42082525

0.00

 

 

 

 

 

BUSINESS DETAILS

 

Line of Business :

Subject is engaged in manufacturing of polyester chips, polyester filament yarn and polyester textile fabrics. It manufactures synthetic fabric. (From Indirect Sources)

 

 

Products :
  • Textile Prints
  • Fabrics
  • Textile Intermediates

 

 

Brand Names :
  • Garden
  • Vareli

 

 

Agencies Held :

Not Available 

 

 

Exports :

Not Divulged

 

 

Imports :

Not Divulged

 

 

Terms :

 

Selling :

Not Divulged

 

 

Purchasing :

Not Divulged

 

 

PRODUCTION STATUS: Not Available

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

Customers :

Reference :

Not Divulged

Name of the Person :

Not Divulged

Contact No.:

Not Divulged

Since How Long Known :

Not Divulged

Experience :

Not Divulged

Maximum Limit Dealt :

Not Divulged

 

 

No. of Employees :

5636 (Approximately)

 

 

Bankers :
  • Bank of Baroda
  • Allahabad Bank
  • State Bank of India
  • Bank of India
  • State Bank of Patiala
  • Corporation Bank
  • Union Bank of India
  • IDBI Bank Limited
  • Indian Overseas Bank
  • Export Import Bank of India
  • Life Insurance Corporation of India
  • State Bank of Travancore
  • Indian Bank
  • ICICI Bank Limited

 

 

Facilities :

SECURED LOANS

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

LONG TERM BORROWINGS

 

 

Term Loans from banks

 

 

Rupee Loans

9946.001

10995.035

Foreign Currency Loans

245.469

562.535

Rupee Term Loans from financial institutions

197.923

219.679

SHORT TERM BORROWINGS

 

 

Loan repayable on demand

 

 

Cash Credit Facilities

465.811

641.965

Buyers Credit

102.237

0.000

Total

10957.441

12419.214

 

Note :

Long-Term Borrowings:

 

a)     Term Loans from Banks and Financial Institutions are secured by first mortgage on pari passu basis on all immovable properties (except those specifically excluded by lenders, of Rupee Term Loans as per Note (b) below), both present and future and first charge by way of hypothecation of all movables (except book debts) both present and future subject to prior charges created/to be created in favour of Bankers for working capital borrowings.

 

b)    Of the Rupee Term Loans from banks:

 

  1. Loans from Bank of India to the extent of Rs. 21.250 Million (Previous year Rs. 25.000 Million) are secured by hypothecation of specific machinery of Fully Drawn Yarn (FDY) Project at Jolwa.

 

  1. Loans from Bank of India to the extent of Rs. 101.261 Million (Previous year Rs. 119.111 Million) are secured by hypothecation of specific Building and machinery of Texturising plant and Draw Twisting plant at Jolwa.

 

  1. Term loans from ICICI Bank, Kotak Mahindra Prime Limited and Axis Bank Ltd. aggregating to Rs. 10.769 Million (Previous year Rs. 11.603 Million) under vehicle finance scheme are secured by an exclusive charge by way of hypothecation of specific vehicles purchased under the arrangements.

 

  1. Housing Loan of Rs. 56.514 Million (Previous year Rs. 64.321 Million) from ICICI Bank is secured by hypothecation of residential flat at Mumbai.

 

  1. Loans from Corporation Bank to the extent of Rs. 309.400 Million (Previous Year Rs. 364.000 Million) are secured by hypothecation of movable fixed assets of Specific Continuous Polymerisation Project at Jolwa.

 

  1. Loan from Union Bank of India to the extent of Rs. 446.140 Million (Previous Year Rs. 524.890 Million) is secured by hypothecation of specific machinery of Coal Based Thermal Power Project at Jolwa.

 

c)     As on the Balance Sheet date, Part the payment of interest for the quarter January- March, 2015, aggregating to Rs. 77.733 Million (Previos Year Rs.137.177 Million) to various lender banks / institutions were unpaid.

 

Short-Term Borrowings:

 

Cash Credit facilities are part of Working Capital facilities availed from Consortium of Banks and are secured with hypothecation by way of first pari passu charge on all company’s current assets and by way of second pari passu charge on immovable and all movable properties (excluding current assets) of the Company. Rate of Interest on Cash Credit facilities ranged between11.50% to 12.00%.

 

Buyers’ Credit is secured by Letter of Comfort (LOC) / Undertaking (LOU) which is a part of Working Capital facilities issued by the banks. Rate of Interest on Buyers’ Credit facility is 3M Libor + 41 bps above the relevant time.

 

Auditors :

 

Name :

Natvarlal Vepari and Company

Chartered Accountants

Address :

1st Floor, River Place-II, Near Navadi Ovara, Nanpura, Surat-395001, Gujarat, India

Tel No.:

91-261-3057777/2465585

Fax No.:

91-261-3995511

Email :

vepari@youtele.com

Website:

www.vepari.com

PAN N Income-tax PAN of auditor or auditor's firm :

AADFN5448E

 

 

Memberships :

Not Divulged

 

 

Collaborators :

Not Divulged

 

 

Subsidiary Companies :
  • GAIA International FZE
  • Garden Exim Pte. Limited

 

 

Group Company :
  • Surat Textile Mills Limited

 

 

Other Related Parties :
  • Armorax Business Centre Private Limited
  • Como Textile Private Limited
  • Sorrento Textile Private Limited
  • Amalfi Textile Private Limited

 

CAPITAL STRUCTURE

 

As on 31.03.2015

 

Authorised Capital :

No. of Shares

Type

Value

Amount

50000000

Equity Shares

Rs.10/- each

Rs.500.000 Million

10000000

Preference Shares

Rs.10/- each

Rs.100.000 Million

 

Total

 

Rs. 600.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

42082525

Equity Shares

Rs.10/- each

Rs. 420.825 Million

 

 

 

 

 

Notes :

 

As per the terms of issue and in accordance with the provisions of SEBI (ICDR) Regulation, 2009, the management committee of Board of Directors of the Company at its meeting held on 23rd September, 2013 allotted 1487147 OCCPS of Rs. 10/- each at a premium of Rs. 37.07 each in favour of Praful Amichand Shah, Partner of M/s. Isha Enterprises, the promoter and/or promoter group of the Company.

 

As per the terms of issue and in accordance with the provisions of SEBI (ICDR) Regulation, 2009, consequent to the rights of conversion exercised by the warrant holders, the Board of Directors of the Company at its meeting held on 18th March, 2015 allotted 1949860 equity shares of Rs.10/- each at a premium of Rs. 25.90/- per share in favour of Praful Amichand Shah, Partner of Isha Enterprises, the promoter and/or promoter group of the Company, against 1487147, 0.001% OCCPS held by the promoters at the beginning of the year.

 

Reconciliation of Equity Shares outstanding

 

PARTICULARS

As at 31st March, 2015

 

No of Shares

Rs. In Million

Balance at the beginning of the year

40132665

401.327

Shares issued conversion of OCCPS

1949860

19.498

Outstanding at the end of the year

40132665

401.327

 

 

Reconciliation of 0.001% Optionally Convertible Cumulative Preference Shares (OCCPS) outstanding

 

 

As at 31st March, 2015

 

No of OCCPS

Rs. In Million

Balance at the beginning of the year

1487147

14.871

Add : OCCPS issued during the year

0

0.00

Less : OCCPS Converted into equity Shares

1487147

14.871

Outstanding at the end of the year

0

0.000

 

Shareholders holding more than 5% of Paid-up Equity Share Capital

 

 

As at 31st March, 2015

 

No of Shares

% of holding

Introscope Properties Private Limited

7231996

17.19

Praful A. Shah (Indl.)

2714190

6.45

Praful A. Shah - (Partner of Isha Enterprises)

3791965

9.01

IL and FS Trust Co. Limited

3591559

8.53

Rayben Investments

2492816

5.92

Palomar Textiles Limited

3930872

9.34

 

Rights, Preferences and Restrictions attached to Shares

 

Equity Shares:

 

The Company has two class of shares referred to as Equity Shares and Optionally Convertible Cumulative Preference Shares (OCCPS), having a par value of Rs.10/- each. Each equity shareholders is entitled to one vote per share held. The dividend as and when proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. 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.

 

The company has two class of shares referred to as Equity Shares and Optionally converted Cumulative Preference Shares (OCCPS) at the beginning of the year, during the year, the OCCPS, have been converted in to equity shares as referred. 

 

OCCPS holder shall have option to apply for and obtain allotment, from time to time, not later than 18 (eighteen) months from the date of allotment of OCCPS, of such number of fully paid-up equity shares of the face value of Rs. 10/- each (“Equity Shares”) against conversion of the OCCPS in such manner and on such price, terms and conditions as determined by the Board, such that the total issue size of the preferential allotment does not exceed an aggregate value of Rs. 70.000 Million (including, premium if any, on such Equity Shares), in accordance with the provisions of Chapter VII of the SEBI (ICDR) Regulations or other provisions of the law as may be prevailing at that time.

 

FINANCIAL DATA

[all figures are in Rupees Million]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

31.03.2015

31.03.2014

31.03.2013

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

420.825

416.198

382.906

(b) Reserves & Surplus

725.525

2185.000

3522.768

(c) Money received against share warrants

0.000

0.000

70.000

 

 

 

 

(2) Share Application money pending allotment

0.000

0.000

70.000

Total Shareholders’ Funds (1) + (2)

1146.350

2601.198

4045.674

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

10478.843

11888.668

12109.398

(b) Deferred tax liabilities (Net)

0.000

0.000

373.042

(c) Other long term liabilities

3294.713

75.887

72.668

(d) long-term provisions

64.208

52.953

54.015

Total Non-current Liabilities (3)

13837.764

12017.508

12609.123

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

568.048

641.965

767.570

(b) Trade payables

3136.989

3586.796

4251.425

(c) Other current liabilities

876.681

1334.914

625.548

(d) Short-term provisions

118.517

94.732

177.791

Total Current Liabilities (4)

4700.235

5658.407

5822.334

 

 

 

 

TOTAL

19684.349

20277.113

22477.131

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

11908.424

12406.318

12619.332

(ii) Intangible Assets

5.942

11.315

17.342

(iii) Capital work-in-progress

320.296

467.508

868.238

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

139.357

135.702

135.702

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

559.857

659.042

805.791

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

12933.876

13679.885

14446.405

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

3128.081

3200.701

4432.495

(c) Trade receivables

1060.710

1460.276

2037.307

(d) Cash and cash equivalents

453.716

319.735

314.946

(e) Short-term loans and advances

1860.164

1465.482

1029.538

(f) Other current assets

247.802

151.034

216.440

Total Current Assets

6750.473

6597.228

8030.726

 

 

 

 

TOTAL

19684.349

20277.113

22477.131

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2015

31.03.2014

31.03.2013

 

SALES

 

 

 

 

Income

26407.336

30666.245

36972.457

 

Other Income

77.023

146.478

65.193

 

TOTAL

26484.359

30812.723

37037.650

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

19016.467

23247.338

29590.190

 

Purchases of Stock-in-Trade

391.804

147.537

161.642

 

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

(27.074)

946.781

(24.298)

 

Employees benefits expense

1108.871

859.739

869.724

 

Other expenses

4828.107

4944.462

5524.375

 

TOTAL

25318.175

30145.857

36121.633

 

 

 

 

 

 

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

1166.184

666.866

916.017

 

 

 

 

 

Less

FINANCIAL EXPENSES

1832.418

1582.187

1489.309

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(666.234)

(915.321)

(573.292)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

761.321

923.658

935.442

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(1427.555)

(1838.979)

(1508.734)

 

 

 

 

 

Less

TAX

0.000

(394.502)

(501.748)

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(1427.555)

(1444.477)

(1006.986)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD 

(704.796)

739.681

1746.667

 

Balance Carried to the B/S

(2132.351)

(704.796)

739.681

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

3693.546

3359.104

3927.422

 

TOTAL EARNINGS

3693.546

3359.104

3927.422

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

4555.306

4577.195

5692.026

 

Components and Stores parts

1316.675

1187.813

1031.099

 

Capital Goods

0.000

27.117

8.539

 

TOTAL IMPORTS

5871.981

5792.125

6731.664

 

 

 

 

 

 

Earnings / (Loss) Per Share (Rs.)

(35.50)

(37.66)

26.30

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

PARTICULARS

 

31.03.2015

31.03.2014

31.03.2013

Current Maturities of Long term debt

676.620

1007.619

415.014

Cash generated from operations

3797.290

1166.893

1718.618

Net Cash Flow from Operating Activities

3819.144

1178.591

1753.541

 

 

QUARTERLY RESULTS

 

PARTICULARS

 

 

30.06.2015

30.09.2015

Type

 

1st Quarter

2nd Quarter

Net Sales

 

6096.140

6075.960

Total Expenditure

 

5699.500

6138.220

PBIDT (Excl OI)

 

396.640

(62.260)

Other Income

 

5.400

32.620

Operating Profit

 

402.040

(29.640)

Interest

 

484.530

485.220

Exceptional Items

 

NA

NA

PBDT

 

(82.490)

(514.860)

Depreciation

 

166.420

167.960

Profit Before Tax

 

(248.910)

(682.820)

Tax

 

NA

NA

Provisions and contingencies

 

NA

NA

Profit After Tax

 

(248.910)

(682.820)

Extraordinary Items

 

NA

NA

Prior Period Expenses

 

NA

NA

Other Adjustments

 

NA

NA

Net Profit

 

(248.910)

(682.820)

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2015

31.03.2014

 

31.03.2013

 

Net Profit Margin

(PAT / Sales)

(%)

(5.41)

(4.71)

(2.72)

 

 

 

 

 

Operating Profit Margin

(PBDIT/Sales)

(%)

4.42

2.17

2.48

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

(7.43)

(9.35)

(7.03)

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

(1.25)

(0.71)

(0.37)

 

 

 

 

 

Debt Equity Ratio

(Total Debt /Networth)

 

10.23

5.20

3.29

 

 

 

 

 

Current Ratio

(Current Asset/Current Liability)

 

1.44

1.17

1.38

 

STOCK PRICES

 

Face Value

Rs.10/-

Market Value

Rs.26.60/-

 

 

FINANCIAL ANALYSIS

[all figures are in Rupees Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Share Capital

382.906

416.198

420.825

Reserves & Surplus

3522.768

2185.000

725.525

Money received against share warrants

70.000

0.000

0.000

 Share Application money pending allotment

70.000

0.000

0.000

Net worth

4045.674

2601.198

1146.350

 

 

 

 

long-term borrowings

12109.398

11888.668

10478.843

Short term borrowings

767.570

641.965

568.048

Current Maturities of Long Term Debt

415.014

1007.619

676.620

Total borrowings

13291.982

13538.252

11723.511

Debt/Equity ratio

3.285

5.205

10.227

 

 

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

36972.457

30666.245

26407.336

 

 

(17.057)

(13.888)

 

 

 

NET PROFIT MARGIN

 

 

Net Profit Margin

31.03.2013

31.03.2014

31.03.2015

 

(Rs. In Million)

(Rs. In Million)

(Rs. In Million)

Sales

36972.457

30666.245

26407.336

Profit/Loss

(1006.986)

(1444.477)

(1427.555)

 

(2.72%)

(4.71%)

(5.41%)

 

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Sr. No.

Check list by info agents

Available in Report (Yes/No)

1

Year of establishment

Yes

2

Constitution of the entity -Incorporation details

Yes

3

Locality of the entity

Yes

4

Premises details

No

5

Buyer visit details

--

6

Contact numbers

Yes

7

Name of the person contacted

Yes

8

Designation of contact person

Yes

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

No

17

Details of sister concerns

Yes

18

Major suppliers

No

19

Major customers

No

20

Banking Details

Yes

21

Banking facility details

Yes

22

Conduct of the banking account

--

23

Financials, if provided

Yes

24

Capital in the business

Yes

25

Last accounts filed at ROC, if applicable

Yes

26

Turnover of firm for last three years

Yes

27

Reasons for variation <> 20%

--

28

Estimation for coming financial year

No

29

Profitability for last three years

Yes

30

Major shareholders, if available

Yes

31

External Agency Rating, if available

Yes

32

Litigations that the firm/promoter involved in

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

 

LITIGATION DETAILS:

 

HIGH COURT OF GUJARAT

 

TAX APPEAL No. 875 of 2013

 

Status : PENDING

( Converted from : O/ST/2686/2013 )

CCIN No : 001092201300875

 

Last Listing Date: 17/01/2014

 

 

Coram

·         HONOURABLE MR.JUSTICE AKIL KURESHI

·         HONOURABLE MS JUSTICE SONIA GOKANI

 

 

 

S.NO.

Name of the Petitioner

Advocate On Record

1.

COMMISSIONER OF INCOME TAX I

MR SUDHIR M MEHTA for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

 

S.NO.

Name of the Respondant

Advocate On Record

1.

GARDEN SILK MILLS LIMITED

RULE SERVED for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1
MR MANISH J SHAH for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

Presented On

:  07/10/2013

Registered On

: 08/10/2013

Bench Category

: --

District

: SURAT

Case Originated From

:THROUGH HIS/HER/THEIR ADVOCATE

Listed

: 12 times

 

Stage Name

ADJOURNED MATTERS

Classification

DB - OJ - TAX APPEAL - INCOME TAX ACT, 1961 - APPEAL TO HIGH COURT - U/S 260 OF IT ACT - LONG TERM CAPITAL GAIN - U/S 54EA

Act

INCOME-TAX ACT, 1961

 

 

 

OTHER FORUMS

S.No.

CASEDETAILS

TRIBUNAL REFERRENCE

ORDER PASSED BY

JUDGEMENT DATE

PLACE

1

ITA/220/AHD/2008

INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH

JUDICIAL MEMBER AND ACCOUNTANT MEMBER

15/02/2013

SURAT

OFFICE DETAILS

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

07/10/2013

APPEARANCE NOTE

MR SUDHIR M MEHTA ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

0

MR SUDHIR M MEHTA(2058) for P:1

2

07/10/2013

CERTIFIED COPY

MR SUDHIR M MEHTA ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

6

MR SUDHIR M MEHTA(2058), for P:1

3

07/10/2013

MEMO OF PETITION/APPEAL/SUIT

MR SUDHIR M MEHTA ADVOCATE
for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

20

MR SUDHIR M MEHTA(2058), for P:1

4

15/10/2013

VAKALATNAMA

MR MANISH J SHAH ADVOCATE
for RESPONDENT(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

5

MR MANISH J SHAH(1320) for R:1

 

 

 

 

 

 

 

COURT PROCEEDINGS

 

S. No.

Notified Date

Court Code

Board Sr. No.

Stage

Action

Coram

1

14/10/2013

5

12

ADMISSION (FRESH MATTERS)

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MS JUSTICE SONIA GOKANI

2

15/10/2013

5

38

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MS JUSTICE SONIA GOKANI

3

22/10/2013

5

39

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MS JUSTICE SONIA GOKANI

4

18/11/2013

5

36

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MS JUSTICE SONIA GOKANI and HONOURABLE MR.JUSTICE R.P.DHOLARIA

5

26/11/2013

5

34

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MR.JUSTICE R.P.DHOLARIA

6

02/12/2013

5

55

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MR.JUSTICE R.P.DHOLARIA

7

10/12/2013

5

25

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MR.JUSTICE R.P.DHOLARIA

8

16/12/2013

5

42

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MR.JUSTICE R.P.DHOLARIA

9

21/12/2013

5

16

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MR.JUSTICE R.D.KOTHARI and HONOURABLE MR.JUSTICE R.P.DHOLARIA

10

26/12/2013

5

75

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MR.JUSTICE R.P.DHOLARIA

11

13/01/2014

7

38

ADJOURNED MATTERS

NEXT DATE

·         HONOURABLE MR.JUSTICE M.R. SHAH 

·         HONOURABLE MR.JUSTICE AKIL KURESHI and HONOURABLE MS JUSTICE SONIA GOKANI and HONOURABLE MR.JUSTICE R.P.DHOLARIA

 

 

NATURE OF BUSINESS

 

The Company belongs to the GARDEN VARELI Group which is a leader in the Indian Textile Industry with particular strength in polyester filament based textiles, both yarn and fabric. The Company is also a leading player in polyester chips for both textile and film applications. The Company is known to be a differentiated producer of chips, Partially Oriented Yarn (POY), Fully Drawn Yarn (FDY), Draw Texturised Yarn, Draw Warped Yarn, Draw Twisted Yarn, greige fabric, as well as printed and dyed fabric. The Company is a regular supplier of bright, cationic, micro denier, fine denier yarn, mother yarn and dope-dyed yarn in the market.

 

REVIEW OF OPERATIONS

 

The Company`s standalone total revenue for the year 2014-15 was Rs. 26484.400 Million as compared to Rs. 30812.700 Million for the previous year, a decline of about 14%. The fall in sales was due to lower utilization rates due to excess capacity in the face of subdued market conditions. The entire industry operated at a lower utilization rate owing to a large capacity addition by the largest producer of PFY.

 

Despite lower revenues, the operating profit (earning before interest, depreciation and tax) for the year 2014-15 was higher at Rs. 1166.200 Million as compared to Rs. 666.900 Million in the previous year. This was possible despite a challenging year that saw an oil-price driven crash in raw material prices leading to concomitant inventory losses and weak market sentiment. Their emphasis on increased product differentiation, along with record operational efficiencies, timely exports and careful working capital management helped us to remain competitive and improve Their EBITDA. However, the high and increased interest cost resulted in another year of loss for the Company. The net loss for the year stood at Rs. 1427.500 Million as compared to Rs. 1444.500 Million in the previous year.

 

The sale of chips was lower at 102,031 MT for the year 2014-15 as compared to 124,620 MT in the previous year. The total sale of polyester filament yarn (PFY) was marginally lower at 149,222 MT as compared to 152,200 MT in the previous year.

 

The overall production of Chips was at 244053 MT during the year 2014-15 as compared to 266831 MT achieved in the previous year. Whereas the production of PFY during the year was higher at 152275 MT as compared to 148949 MT in the previous year. In the weaving segment, grey cloth production for the year 2014-15 was higher at 29.289 Million mtrs as compared to 27.586 Million mtrs. During the previous year. The Company had to curtail the production during the year to avoid inventory losses due to volatility of prices of raw material as well as finished goods. Production was also hampered by a shortage of PTA due to plant maintenance by local PTA suppliers in the early part of the financial year.

 

The Company`s performance was assisted by never-before achieved operational efficiency, first quality production and wastage levels across its yarn plants. Coal, which is the major fuel for the company reduced in price by over 8% during the year. This, coupled with increased substitution of gas with coal was a major cause of cost reduction across Their chips and yarn divisions.

 

Owing to the over-competitive local market, the company also increasingly focussed on the international market. Subsidiaries and their financial position

 

Subsidiaries and their financial position

 

During the year, GAIA International FZE, Wholly Owned Overseas Subsidiary was incorporated on 8th July, 2014. The subsidiary commenced its operation during the year 2014-15. The subsidiary achieved a turnover of Rs. 33.329 Million and incurred net loss of Rs. 2.009 Million for the year ended 31st March, 2015.

 

Garden Exim Pte. Limited, another Wholly Owned Overseas Subsidiary was incorporated on 23rd October, 2014. The subsidiary has not commenced its operation during the year 2014-15. The subsidiary incurred net loss of Rs. 0.474 Million for the year ended 31st March, 2015.

 

 

Changes in Share Capital

 

During the year, The Company allotted 1,949,860 equity shares of Rs. 10 each fully paid up at a premium of Rs. 25.90 per share to the promoters / promoter group on exercise of option for conversion of the 1,487,147 0.001% Optionally Convertible Cumulative Preference Shares (OCCPS) issued on preferential basis pursuant to the SEBI

(ICDR) Regulation, 2009. As a result of such allotment, the paid up equity share capital of the Company increased from 40132665 equity shares of Rs. 10 each aggregating to Rs. 40,13,26,650 to 42082525 equity shares of Rs. 10 each aggregating to Rs. 42,08,25,250.

 

 

 

UNSECURED LOANS

 

PARTICULAR

31.03.2015

(Rs. in Million)

31.03.2014

(Rs. in Million)

LONG TERM BORROWINGS

 

 

Term Loans from foreign banks

89.450

111.419

Total

89.450

111.419

 

 

INDEX OF CHARGES

 

S.No.

Charge ID

Date of Charge Creation/Modification

Charge amount secured

Charge Holder

Address

Service Request Number (SRN)

1

10567924

10/04/2015

323,300,000.00

IDBI BANK LIMITED

IDBI Tower, WTC Complex, Cuffe Parade, Colaba, MUMBAI, Maharashtra - 400005, INDIA

C52713104

2

10558752

09/03/2015

823,300,000.00

Bank of Baroda

Surat Main Br., Bhagatalao, SURAT, Gujarat - 395003, INDIA

C48851919

3

10541026

24/12/2014

3,021,200,000.00

Bank of Baroda

Bhaga Talao Main Br., Bhaga Talao, SURAT, Gujarat - 395003, INDIA

C39218789

4

10382054

27/09/2012 *

352,900,000.00

ALLAHABAD BANK

NANPURA BRANCH,, NANPURA, SURAT, Gujarat - 395001 , INDIA

B60425568

5

10382058

27/09/2012 *

407,000,000.00

ALLAHABAD BANK

NANPURA BRANCH,, NANPURA, SURAT, Gujarat - 395001 , INDIA

B60426277

6

10382049

27/09/2012 *

125,500,000.00

ALLAHABAD BANK

NANPURA BRANCH,, NANPURA, SURAT, Gujarat - 395001 , INDIA

B60435864

7

10381093

26/09/2012 *

64,600,000.00

BANK OF INDIA

SURAT MID CORPORATE BRANCH, BOI BLDG, 1ST FLOOR, 
NEAR BSNL OFFFICE, GHOD DOD ROAD, SURAT, Gujarat -395001, INDIA

B60459625

8

10381067

26/09/2012 *

189,700,000.00

BANK OF INDIA

SURAT MID CORPORATE BRANCH, BOI BLDG, 1ST FLOOR, 
NEAR BSNL OFFFICE, GHOD DOD ROAD, SURAT, Gujarat -395001, INDIA

B60460581

9

10380405

26/09/2012 *

1,185,500,000.00

BANK OF BARODA

BHAGATALAV, KANPITH,, SURAT, Gujarat - 395003, INDIA

B60949351

10

10374642

26/09/2012 *

130,600,000.00

INDIAN BANK

Gotri Branch, 1, Sujata Society, Harinagar Char Rasta, Gotri, BARODA, Gujarat - 390007, INDIA

B61134060

 

* Date of charge modification

 

 

CONTINGENT LIABILITIES :

 

      i.        Disputed liabilities for Excise Duty not acknowledged as debts Rs. 1898.714 Million.

     ii.        Disputed liabilities for Gujarat Sales Tax not acknowledged as debts Rs. 7.051 Million.

    iii.        Counter-guarantees to Banks against guarantees issued to third parties Rs. 2.375 Million.

    iv.        Foreign bills Discounted with Banks Rs. 436.181 Million (Previous Year Rs. 290.243 Million).

 

 

UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30TH SEPTEMBER, 2015

 

(Rs. In Million)

 

Particulars

Three Months Ended

Six Months Ended

 

30.09.2015

30.06.2015

30.09.2015

 

(Unaudited)

(Unaudited)

(Unaudited)

1

Income from Operations

 

 

 

 

a. Gross Sales/ Income from Operation

6559.022

6507.557

13066.579

 

b. Excise duty on Sales

483.063

411.419

894.482

 

Total Income from Operations (Net)

6075.959

6096.138

12172.097

2

Expenditure

 

 

 

 

Cost of Materials Consumed

4821.712

4298.040

9119.752

 

Purchases of Stock-in-Trade

32.561

36.089

68.650

 

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

(189.939)

(97.748)

(287.687)

 

Employees benefits expense

301.447

271.803

573.250

 

Depreciation and amortisation Expense

167.964

166.419

334.383

 

Other Expenses

1172.432

1191.313

2363.745

 

Total Expenses

6306.177

5865.916

12172.093

3

Profit/ (Loss)  from operations before other income and finance costs and Exceptional Items

(230.218)

230.222

0.004

4

Other Income

32.621

5.400

38.021

5

Profit/ (Loss) from ordinary activities before finance costs and Exceptional Items

(197.597)

235.622

38.025

6

Finance Costs

485.221

484.532

969.753

7

Profit/ (Loss) before tax

(682.818)

(248.910)

(931.728)

8

Tax Expense

0.000

0.000

0.000

9

Net Profit for the period (9-10)

(682.818)

(248.910)

(931.728)

10

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

420.825

420.825

420.825

11

Reserves excluding Revaluation Reserves

 

 

 

12

Earnings Per Share (Rs.)

 

 

 

 

Basic EPS for the period (Not Annualised)

(16.23)

(6.19)

(22.14)

 

Diluted EPS for the period (Not Annualised)

(16.23)

(6.19)

(22.14)

 

 

 

 

 

PART - II    SELECT INFORMATION FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER 2015

 

A

PARTICULARS OF SHAREHOLDING

 

 

 

 

1

Public shareholding

 

 

 

 

 

a.

Number of shares

17780295

17526395

17780295

 

 

b.

Percentage of shareholding

42.25%

41.65%

42.25%

 

2

Promoters and promoter group shareholding

 

 

 

 

 

a.

Pledged/Encumbered

 

 

 

 

 

Number of shares (in Crore)

--

--

--

 

 

 

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

--

--

--

 

 

 

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

--

--

--

 

 

b.

Non-encumbered

 

 

 

 

 

Number of shares

24302230

24556130

24302230

 

 

 

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)

57.75%

58.35%

57.75%

 

 

 

STATEMENT OF ASSETS AND LIABILITIES

(Rs. In Million)

SOURCES OF FUNDS

30.09.2015

 

 

I.              EQUITY AND LIABILITIES

 

(1)Shareholders' Funds

 

(a) Share Capital

420.825

(b) Reserves & Surplus

(206.201)

(c) Money received against share warrants

0.000

 

 

(2) Share Application money pending allotment

0.000

Total Shareholders’ Funds (1) + (2)

214.624

 

 

(3) Non-Current Liabilities

 

(a) long-term borrowings

9701.912

(b) Deferred tax liabilities (Net)

0.000

(c) Other long term liabilities

4392.152

(d) long-term provisions

68.585

Total Non-current Liabilities (3)

14162.649

 

 

(4) Current Liabilities

 

(a) Short term borrowings

1470.103

(b) Trade payables

3140.096

(c) Other current liabilities

1129.054

(d) Short-term provisions

166.198

Total Current Liabilities (4)

5905.451

 

 

TOTAL

20282.724

 

 

II.          ASSETS

 

(1) Non-current assets

 

(a) Fixed Assets

 

(i) Tangible assets

11988.737

(ii) Intangible Assets

 

(iii) Capital work-in-progress

 

(iv) Intangible assets under development

 

(b) Non-current Investments

144.348

(c) Deferred tax assets (net)

0.000

(d)  Long-term Loan and Advances

601.091

(e) Other Non-current assets

0.000

Total Non-Current Assets

12734.176

 

 

(2) Current assets

 

(a) Current investments

606.134

(b) Inventories

3298.254

(c) Trade receivables

1817.810

(d) Cash and cash equivalents

241.103

(e) Short-term loans and advances

1443.846

(f) Other current assets

141.401

Total Current Assets

7548.548

 

 

TOTAL

20282.724

 

Notes :

 

1.     The above results have been reviewed and recommended for adoption by the Audit Committee to the Board of Directors and have been approved by the Board at its meeting held on 4th November, 2015. The Statutory Auditors have carried out a limited review of the above financial results as required under clause 41 of the Listing Agreement.

 

2.     The Company does not have any Exceptional or Extraordinary item to report for the above periods.

 

3.     The Company has unabsorbed depreciation & carried forward losses under Tax laws. In absence of virtual certainty of sufficient future taxable income, net deferred tax assets has not been recognized by way of prudence in accordance with Accounting Standard (AS) 22 – "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

 

4.     There were no investor complaints pending as on 1st July, 2015. All the 77 complaints received during the quarter ended as on 30th September, 2015 were resolved and no complaints were outstanding as on 30th September, 2015.

 

5.     As the Company's business activity falls within a single primary business segment viz. 'Textiles', the disclosure requirement of Accounting Standards (AS) 17 on "Segment Reporting" notified by the Company (Accounting Standards) Rules, 2006 are not applicable.

 

6.     During the quarter, the Company continued to exercise the option under paragraph 46A of Accounting Standard 11 relating to "The effects of changes in Foreign Exchange Rates" as notified by the Ministry of Corporate Affairs on 29th December, 2011. Consequently, the Foreign Exchange Loss incurred on Long Term Foreign Currency Monetary Items amounting to Rs.3.164 Million for the quarter ended 30th September, 2015 has been capitalized and added to the cost of depreciable respective fixed assets. Total amount capitalized upto 30th September, 2015 is Rs.172.484 Million and out of which Rs.145.442 Million remains unamortized as at 30th September, 2015.

 

7.     Previous periods' figures have been regrouped / restated / rearranged wherever necessary, to conform to the current periods' classification.

 

FIXED ASSETS

 

·         Freehold Land

·         Building

·         Plant and Machinery

·         Furniture and Equipments

·         Office Equipments

·         Vehicles

 

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]             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. 66.42

UK Pound

1

Rs. 99.17

Euro

1

Rs. 72.13

 

 

INFORMATION DETAILS

 

Information Gathered by :

PPT

 

 

Analysis Done by :

KAR

 

 

Report Prepared by :

JYTK

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

4

PAID-UP CAPITAL

1~10

3

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

4

--PROFITABILITY

1~10

----

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--CREDIT LINES

1~10

3

--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

 

27

 

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.