MIRA INFORM REPORT
|
Report No. : |
302838 |
|
Report Date : |
14.01.2015 |
IDENTIFICATION DETAILS
|
Name : |
DONEAR
INDUSTRIES LIMITED |
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|
|
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Registered
Office : |
210, Key-Tuo Industrial Estate, |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
01.01.1987 |
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Com. Reg. No.: |
11-042076 |
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Capital
Investment / Paid-up Capital : |
Rs. 104.000 Millions |
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CIN No.: [Company Identification
No.] |
L99999MH1987PLC042076 |
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IEC No.: |
Not Available |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMM07028A |
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|
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PAN No.: [Permanent Account No.] |
AAACD1688C |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and Dealing in Textiles |
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No. of Employees
: |
Not Available |
RATING & COMMENTS
|
MIRA’s Rating : |
B (30) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
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Payment Behaviour : |
Slow but correct |
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Litigation : |
Exist |
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Comments : |
Subject is an established company having moderate track record. The rating is constrained on account of company’s moderate financial
risk profile and low profitability margins of the company. Further the company
has taken huge external borrowing, which acts as threatening to the liquidity
position of the company. However, trade relations are fair. Business is active. Payments are
reported to be slow but correct. The company can be considered from business dealings 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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
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 |
Long term loans BB- |
|
Rating Explanation |
Moderate risk of default and high credit
risk. |
|
Date |
07.04.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term non fund based limits A4 |
|
Rating Explanation |
Minimal degree of safety and very high
credit risk. |
|
Date |
07.04.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
LOCATIONS
|
Registered Office : |
210, Key-Tuo Industrial Estate, |
|
Tel No.: |
91-22-30813591 |
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Mobile No.: |
91-9820409364 (Mr. Girish) |
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Fax No.: |
91-22-28370041 |
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E-Mail : |
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Factory 1 : |
Balaji
Industries Dokmandi, Village Amli, Silvassa, Dadra and Nagar Haveli |
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Factory 2 : |
Laxmi Lab Government Industrial Estate, Masat, Silvassa, Dadra and Nagar Haveli |
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Factory 3 : |
Balaji Textiles Dokmandi, Village Amli, Silvassa, Dadra and Nagar Haveli |
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Factory 4 : |
Balaji Fabrics Revenue Block No. 194 and 195, Kadodara Bardoli Road, Village Jolwa,
Taluka Palsana, District Surat, Gujarat, India |
DIRECTORS
As on 31.03.2014
|
Name : |
Mr. Vishwanath L. Agarwal |
|
Designation : |
Chairman |
|
Date of Birth/Age : |
13.07.1938 |
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Date of Appointment : |
01.01.1990 |
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Name : |
Mr. Rajendra V. Agarwal |
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Designation : |
Managing Director |
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Name : |
Mr. Ajay V. Agarwal |
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Designation : |
Whole time Director |
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|
Name : |
Mr. Rajagopal Sivaraj |
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Designation : |
Director |
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|
Name : |
Durga Prasad C. Agarwal |
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Designation : |
Director |
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|
Name : |
Mr. Santhkumar B. Agarwal |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sreedhar H. |
|
Designation : |
Company Secretary |
SHAREHOLDING PATTERN
As on 30.09.2014
|
Category of
Shareholder |
Total No. of
Shares |
% of Total No.
of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
||
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|
|
|
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|
30744198 |
59.12 |
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|
8254000 |
15.87 |
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|
38998198 |
75.00 |
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|
|
Total shareholding of Promoter and Promoter Group (A) |
38998198 |
75.00 |
|
(B) Public Shareholding |
|
|
|
|
|
|
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|
146518 |
0.28 |
|
|
7612770 |
14.64 |
|
|
7759288 |
14.92 |
|
|
|
|
|
|
311080 |
0.60 |
|
|
|
|
|
|
3242051 |
6.23 |
|
|
1563633 |
3.01 |
|
|
125750 |
0.24 |
|
|
105027 |
0.20 |
|
|
20723 |
0.04 |
|
|
5242514 |
1.08 |
|
Total Public shareholding (B) |
13001802 |
25.00 |
|
Total (A)+(B) |
52000000 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
52000000 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturing and Dealing in Textiles |
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Products : |
Not Available |
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Brand Names : |
“DONEAR” |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
Not Available |
PRODUCTION STATUS = NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
Not Available |
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Customers : |
Not Available |
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No. of Employees : |
Not Available |
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Bankers : |
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Facilities : |
(Rs.
In Millions)
NOTE: LONG TERM
BORROWINGS State Bank of
Hyderabad First charged on the fixed assets created out of loan and the existing fixed assets. Dena Bank First charge on pari passu basis over all Fixed Assets of the company, both present and future, charge on the Current Promoter Directors including but not limited to Fixed Assets pertaining to capital expansion project of the Company at Kadodara, Gujarat, Except Land and Building at Plot No. - A/49 and A/50, Marol MIDC, Andheri (E), Mumbai and Land measuring 3200M at Surat given to 4 subsidiaries of Promoters State Bank of India First mortgage charge on company's entire fixed assets except Land & Building at Andheri on pari passu basis with other term lenders State Bank of
Indore First pari passu charge with the existing lenders over all fixed assets of the company (Excluding Land and Building of Corporate House at MIDC Andheri) (Six months after the date of first disbursement is provided for create of security) SHORT TERM
BORROWINGS State Bank of Hyderabad First pari passu charge on the Second pari passu charge current assets of the company both present & future Dena Bank First charge on the current assets of the company ranking pari passu with consortium banks. |
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Auditors : |
|
|
Name : |
M.L. Bhuwania and Company Chartered Accountants |
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Address : |
F-11, 3rd floor, Manek Mahal, 90, Veer Nariman Road, Churchgate,
Mumbai - 400 020, Maharashtra, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Entities where individual having control /
significant influence or key management personnel or their relatives are able
to exercise significant influence : |
v Donear
Synthetics Limited v Lav Kush Traders
Private Limited v Sonia Synthetics
Private Limited v Sonia Synthetics
LLP v Donear Retail
Private Limited v R. Ajay Kumar
Investment Company Private Limited v Rajendra
Synthetics Private Limited v U.N.Reality
Private Limited v V.R.A. Reality
Private Limited v Neptune Fabs v Venus Textiles v Lotus Fabrics v Mercury
Industries v
Donear Fashion Link Private Limited |
CAPITAL STRUCTURE
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
160000000 |
Equity Shares |
Rs.2/- each |
Rs. 320.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
52000000 |
Equity Shares |
Rs.2/- each |
Rs.104.000
Millions |
|
|
|
|
|
Note: The reconciliation of the number of shares outstanding
at the beginning and at the end of reporting period 31-03-2014
|
Particulars |
As at 31.03.2014 |
|
|
|
No. of Shares |
Value (In Millions) |
|
Number of shares at the beginning |
52000000 |
104.000 |
|
Add: shares issued during the year |
-- |
-- |
|
Les : share bought back |
-- |
-- |
|
Number of shares at the end |
52000000 |
104.000 |
Terms / rights
attached to equity shares:
(a) The company has only one class of equity shares having a par value of Rs. 2. Each holder of equity shares is entitled to one vote per share. There is no interim dividend proposed by the Board of Directors.
(b) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders
The details of
shareholders holding more than 5% shares in the company:
|
Particulars |
As at 31.03.2014 |
|
|
|
No. of Shares held |
% of Shares held |
|
Rahul R. Agarwal |
4596000 |
8.84% |
|
Merrill Lynch Capital Markets ESPANA
S.A.S.V. |
3965000 |
7.63% |
|
Rajendra Agarwal |
3846000 |
7.40% |
|
Ajay Agarwal |
3729500 |
7.17% |
|
Neena Agarwal |
2917750 |
5.61% |
|
Surya A. Agarwal |
3640750 |
7.00% |
|
Bhavardevi Agarwal |
2768000 |
5.32% |
|
|
|
|
|
Total |
25463000 |
48.97 % |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
104.000 |
104.000 |
104.000 |
|
(b) Reserves & Surplus |
554.288 |
529.195 |
535.328 |
|
(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) |
658.288 |
633.195 |
639.328 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
466.311 |
697.411 |
780.133 |
|
(b) Deferred tax liabilities
(Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
145.970 |
141.319 |
177.441 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total
Non-current Liabilities (3) |
612.281 |
838.730 |
957.574 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2452.895 |
2122.098 |
1786.537 |
|
(b) Trade payables |
305.766 |
243.434 |
163.110 |
|
(c) Other current liabilities |
266.973 |
241.335 |
248.179 |
|
(d) Short-term provisions |
23.308 |
19.773 |
17.753 |
|
Total
Current Liabilities (4) |
3048.942 |
2626.640 |
2215.579 |
|
|
|
|
|
|
TOTAL |
4319.511 |
4098.565 |
3812.481 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1093.519 |
1032.215 |
1129.768 |
|
(ii) Intangible Assets |
6.406 |
5.623 |
8.989 |
|
(iii) Capital work-in-progress |
95.446 |
227.214 |
172.924 |
|
(iv) Intangible assets under
development |
0.000 |
0.171 |
0.000 |
|
(b) Non-current Investments |
9.840 |
9.840 |
9.950 |
|
(c) Deferred tax assets (net) |
100.067 |
88.183 |
78.061 |
|
(d) Long-term Loan and Advances |
82.810 |
89.887 |
104.807 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
1388.088 |
1453.133 |
1504.499 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
1679.389 |
1486.278 |
1304.331 |
|
(c) Trade receivables |
1039.126 |
916.442 |
770.443 |
|
(d) Cash and cash equivalents |
54.766 |
44.268 |
47.300 |
|
(e) Short-term loans and
advances |
57.525 |
66.272 |
59.092 |
|
(f) Other current assets |
100.617 |
132.172 |
126.816 |
|
Total
Current Assets |
2931.423 |
2645.432 |
2307.982 |
|
|
|
|
|
|
TOTAL |
4319.511 |
4098.565 |
3812.481 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
SALES |
|
|
|
|
|
Income |
4723.790 |
4008.576 |
3771.326 |
|
|
Other Income |
56.712 |
79.925 |
62.719 |
|
|
TOTAL
(A) |
4780.502 |
4088.501 |
3834.045 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
2051.870 |
1782.005 |
1669.211 |
|
|
Purchases of Stock-in-Trade |
516.123 |
240.857 |
307.864 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(181.054) |
(63.432) |
(223.313) |
|
|
Employees benefits expense |
447.391 |
392.293 |
330.358 |
|
|
Other expenses |
1404.167 |
1231.464 |
1285.931 |
|
|
TOTAL
(B) |
4238.497 |
3583.187 |
3370.051 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
542.005 |
505.314 |
463.994 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
295.661 |
278.034 |
229.134 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
246.344 |
227.280 |
234.860 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
218.065 |
231.093 |
250.793 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX (E-F) (G) |
28.279 |
(3.813) |
(15.933) |
|
|
|
|
|
|
|
Less |
TAX
(I) |
(8.981) |
(9.847) |
(16.438) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX (G-I)
(J) |
37.260 |
6.034 |
0.505 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Transfer to General Reserve |
0.000 |
0.000 |
0.000 |
|
|
Dividend |
10.400 |
10.400 |
10.400 |
|
|
Tax on Dividend |
1.767 |
1.767 |
1.687 |
|
|
Total
(M) |
12.167 |
12.167 |
12.087 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
431.222 |
291.639 |
298.928 |
|
|
Freight |
6.984 |
5.130 |
4.446 |
|
|
Insurance |
0.213 |
0.144 |
0.128 |
|
|
TOTAL
EARNINGS |
438.419 |
296.913 |
303.502 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
5.127 |
10.373 |
13.558 |
|
|
Components and Stores parts |
25.753 |
9.915 |
16.398 |
|
|
Capital Goods |
0.510 |
34.255 |
26.103 |
|
|
TOTAL
IMPORTS |
31.390 |
54.543 |
56.059 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
0.72 |
0.72 |
0.01 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
0.79 |
0.15 |
0.01 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT / Sales) |
(%) |
11.47 |
12.61 |
12.30 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
0.69 |
(0.10) |
(0.45) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.04 |
(0.01) |
(0.02) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
4.43 |
4.45 |
4.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.96 |
1.01 |
1.04 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
104.000 |
104.000 |
104.000 |
|
Reserves & Surplus |
535.328 |
529.195 |
554.288 |
|
Net
worth |
639.328 |
633.195 |
658.288 |
|
|
|
|
|
|
long-term borrowings |
780.133 |
697.411 |
466.311 |
|
Short term borrowings |
1786.537 |
2122.098 |
2452.895 |
|
Total
borrowings |
2566.670 |
2819.509 |
2919.206 |
|
Debt/Equity
ratio |
4.015 |
4.453 |
4.435 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3771.326 |
4008.576 |
4723.790 |
|
|
|
6.291 |
17.842 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
3771.326 |
4008.576 |
4723.790 |
|
Profit |
0.505 |
6.034 |
37.260 |
|
|
0.01% |
0.15% |
0.79% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
---------------------- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
Yes |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION DETAILS
|
CASE DETAILS BENCH: BOMBAY |
|
Stamp No: ITXAL/355/2014 Filing Date:
11/02/2014 Reg No.: ITXA/741/2014 Reg. Date: 03/04/2014 |
|
Petitioner: THE
COMMISSIONER OF INCOME TAX-8
Respondent: M/S. DONER INDUSTRIES
LIMITED Petn. Adv: ARVIND PINTO (I583) District: MUMBAI |
|
Bench: SINGLE Status: Pre-Admission
Category:- TAX APPEALS Next Date :- 03/02/2015
Stage :- Coram :-
ACCORDING TO SITTING LIST ACCORDING TO SITTING
LIST |
|
Act: Income Tax
Act, 1961
Under Section: 260A |
UNSECURED LOAN
(Rs.
In Million)
|
Particulars |
As
on 31.03.2014 |
As
on 31.03.2013 |
|
SHORT TERM
BORROWING |
|
|
|
Loans and
advances from Related Party |
|
|
|
From Directors |
283.555 |
279.896 |
|
From other body corporates |
115.396 |
53.203 |
|
Total |
398.950 |
333.099 |
Segment Reporting
The Company has one business segment viz. Manufacturing and Dealing in Textiles (Man Made Fabrics).
MANAGEMENT
DISCUSSION AND ANALYSIS :
(a) Industrial
Structure and developments :
India is the one of the world's largest producers of textiles and garments.
Abundant availability of raw materials such as cotton, wool, silk and jute as
well as skilled workforce have made the country a sourcing hub. It is the
world's second largest producer of textiles and garments. The Indian textiles
industry accounts for about 24 per cent of the world’s spindle capacity and 8
per cent of global rotor capacity. The potential size of the Indian textiles
and apparel industry is expected to reach US$ 223 billion by 2021, according to
a report by Technopak Advisors.
The textiles industry has made a major contribution to the national
economy in terms of direct and indirect employment generation and net foreign
exchange earnings. The sector contributes about 14 per cent to industrial
production, 4 per cent to the gross domestic product (GDP), and 27 per cent to
the country's foreign exchange inflows. It provides direct employment to over
45 million people. The textiles sector is the second largest provider of
employment after agriculture. Thus, the growth and all round development of
this industry has a direct bearing on the improvement of the India’s economy.
(b) Opportunities and Threats :
The Indian textiles industry is set for strong growth, buoyed by strong
domestic consumption as well as export demand. The most significant change in
the Indian textiles industry has been the advent of man-made fibres (MMF).
India has successfully placed its innovative range of MMF textiles in almost
all the countries across the globe. MMF production recorded an increase of 10
per cent and filament yarn production grew by 6 per cent in the month of
February 2014. MMF production increased by about 4 per cent during the period
April 2013–February 2014.
Cotton yarn production increased by about 10 per cent during February
2014 and by about 10 per cent during April 2013–February 2014. Blended and 100
per cent non-cotton yarn production increased by 6 per cent during February
2014 and by 8 per cent during the period April 2013–February 2014.
Cloth production by mill sector registered a growth of 9 per cent in the
month of February 2014 and of 6 per cent during April 2013–February 2014.
Cloth production by power loom and hosiery increased by 2 per cent and 9
per cent, respectively, during February 2014. The total cloth production grew
by 4 per cent during February 2014 and by 3 per cent during the period April
2013–February 2014.
Textiles exports stood at US$ 28.53 billion during April 2013–January
2014 as compared to US$ 24.90 billion during the corresponding period of the
previous year, registering a growth of 14.58 per cent. Garment exports from
India is expected to touch US$ 60 billion over the next three years, with the
help of government support, said Dr A Sakthivel, Chairman, Apparel Export
Promotion Council (AEPC).
Lack of uninterrupted power, increased power costs, higher transaction
costs, high cost of labour, high requirement of working capital are hindering
the progress. However, we are making all out efforts to cope with all these
challenges by continuous efforts at cost reduction, process improvements,
diversification of products and improving productivity by improving
efficiencies
(c) Segment wise or Product wise performance
The Company has one reportable segment viz., Textiles
(d) Outlook
The Indian textiles industry is set for strong growth, buoyed by both
strong domestic consumption as well as export demand. The industry is expected
to reach US$ 220 billion by 2020.
For the textiles industry, the proposed hike in FDI limit in multi-brand
retail will bring in more players, thereby providing more options to consumers.
It will also bring in greater investments along the entire value chain – from
agricultural production to final manufactured goods.
With consumerism and disposable income on the rise, the retail sector
has experienced a rapid growth in the past decade with several international
players such as Marks and Spencer, Guess and Next having entered the Indian
market. The organised apparel segment is expected to grow at a compound annual
growth rate (CAGR) of more than 13 per cent over a 10-year period.
In addition to the incentives from the central Government under TUFS,
various state Government e.g Maharashtra and Gujarat have also announced
textile policies offering various fiscal incentives to promote Investments into
Textile Industry which generates highest employment.
(e) Risks and
Concern
The fluctuation in the currency especially against the dollar is
becoming problematic for long term booking of orders. Cotton prices are
increasing regularly as are other input costs including power and logistics.
Natural Gas has become so much costlier that its use as a source of power has
become prohibitive.
(f) Internal
Control System and its adequacy
The company has adequate internal control systems to run its operations
efficiently and to safeguard its assets. There are proper controls in place to
prevent any misuse or fraud.
(g) Discussion on
Financial performance with respect to operational performance.
The company reported a turnover of Rs 4780.503 Millions during the year
2013-14 against a turnover of Rs. 4088.502 Millions in the previous year.
The operations at Surat facility has been stabilised and the cotton
fabrics business has improved in the year 2013-14.
(h) Modernisation
& Capital Expansion Projects:
The Company is planning to do expansion in the yarn dyeing and weaving
capacity.
(i) Human Resource
Management
Currently, the company has one of the best team of professionals in the industry.
The company believe in recruiting the best available talent in the industry and
maintain high standards of motivation to have a very low employee turnover
ratio.
The company’s policy of recruiting people from the institutes directly
and providing them training at work has proved beneficial for the company.
CORPORATE
INFORMATION
The company is a
public limited company domiciled in India and is listed on the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE). The Company is manufacturer
of fabrics having its own brand name “Donear” and also trading in garments
under the brand name of “Dcot”. The Company has manufacturing facilities
located at Silvassa and Surat. It has one of the best process house as compared
with other textile industry located at surat.
UNAUDITED
FINANCIAL RESULT FOR THE QUARTER AND SIX MONTHS ENDED 30TH SEPTEMBER
2014
(Rs. In Millions)
|
Sr. No |
Particulars |
Standalone |
|||
|
Quarter Ended |
Six Month Ended |
||||
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
|||
|
Unaudited |
Unaudited |
Unaudited |
|||
|
1 |
Income From
Operations |
|
|
|
|
|
|
a. Net Sales/ Income from Operations (Net of Excise Duty) |
1217.086 |
1271.530 |
2482.616 |
|
|
|
b. Other Operating Income |
11.622 |
15.356 |
25.977 |
|
|
|
Total Income from
Operations (Net) |
1228.708 |
1286.885 |
2515.593 |
|
|
2 |
Expenditure |
|
|
|
|
|
|
a. Cost of material Consumed |
598.829 |
486.857 |
1085.686 |
|
|
|
b. Purchase of Stock-in trade |
57.207 |
86.431 |
153.838 |
|
|
|
c. Changes in inventory of finished Goods, work- in-progress and Stock-in-trade |
(75.524) |
181.494 |
(78.918) |
|
|
|
d. Employees Benefit Expenses |
123.330 |
111.041 |
234.371 |
|
|
|
e. Depreciation and Amortisation Expenses |
59.327 |
58.322 |
117.649 |
|
|
|
f. Other expenses |
354.629 |
322.858 |
677.497 |
|
|
|
Total Expenses |
1157.798 |
1207013 |
2364.811 |
|
|
3 |
Profit from
Operations before Other Income, Interest and Exceptional Items |
70.910 |
79.672 |
150.782 |
|
|
4 |
Other Income |
21.134 |
12.982 |
34.116 |
|
|
5 |
Profit from
ordinary activities before finance cost & exceptional items |
92.044 |
92.854 |
184.090 |
|
|
6 |
Finance Costs |
77.848 |
76.421 |
154.269 |
|
|
7 |
Profit from
ordinary activities after finance costs & exceptional items |
14.196 |
16.433 |
30.629 |
|
|
8 |
Exceptional items |
-- |
18.742 |
16.742 |
|
|
9 |
Profit from
ordinary activities before tax |
14.196 |
33.175 |
47.371 |
|
|
10 |
Tax Expense |
|
|
|
|
|
|
- Income Tax |
2.497 |
(6.382) |
(2.885) |
|
|
|
- Deferred Tax |
- |
- |
- |
|
|
11 |
Net Profit from
ordinary activity after tax |
10.699 |
39.557 |
50.256 |
|
|
12 |
Extraordinary Items |
-- |
-- |
- |
|
|
13 |
Net Profit After
Tax |
10.699 |
39.557 |
50.256 |
|
|
14 |
Paid-up equity share capital (face value of Rs.10 per share) |
104000 |
104000 |
104000 |
|
|
15 |
Reserves excluding Revaluation Reserve as per balance sheet of previous accounting Year |
-- |
-- |
-- |
|
|
16 |
Earning Per Share (of Rs.10 each) (not annualized) |
|
|
|
|
|
|
Basic EPS |
0.21 |
0.76 |
0.97 |
|
|
|
Diluted EPS |
0.21 |
0.76 |
0.97 |
|
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
17 |
Public Shareholding |
|
|
|
|
|
|
- No. of shares |
13001802 |
12001002 |
13001802 |
|
|
|
- Percentage of shareholding |
25.00% |
25.00% |
25.00% |
|
|
18 |
Promoter &
Promoter Group Shareholding |
|
|
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
|
|
- No. of shares |
40000 |
40000 |
40000 |
|
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
0.10% |
0.10% |
0.10% |
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
0.08% |
0.08% |
0.08% |
|
|
|
b) Non-encumbered |
|
|
|
|
|
|
- No. of shares |
38958190 |
38958190 |
38958190 |
|
|
|
- Percentage of shareholding (as a % of the total shareholding of promoter and promoter group) |
99.90% |
99.90% |
99.90% |
|
|
|
- Percentage of shareholding (as a % of the total share capital of the company) |
74.92% |
74.92% |
74.92% |
|
|
|
Particulars |
Quarter ended 30.09.2014 |
|
B |
Investor Complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
5 |
|
|
Disposed off during the quarter |
5 |
|
|
Remaining unresolved at the end of the
quarter |
Nil |
STANDALONE
STATEMENT OF ASSETS AND LIABILITIES AS AT 30.09.2014
(Rs. In Millions)
|
Particulars |
As at half year ended on 30.09.2014 (Unaudited) |
|
|
A |
EQUITY AND LIABILITIES |
|
|
1 |
Shareholders' Funds |
|
|
|
(a) Share Capital |
104.000 |
|
|
(b) Reserves & Surplus |
601.357 |
|
|
Total Shareholders’
Funds |
705.357 |
|
|
|
|
|
2 |
Non-Current
Liabilities |
|
|
|
(a) long-term borrowings |
277.850 |
|
|
(b) Deferred tax liabilities (Net) |
0.000 |
|
|
(c) Other long term
liabilities |
179.016 |
|
|
(d) long-term
provisions |
0.000 |
|
|
Sub Total Non-current Liabilities |
456.866 |
|
|
|
|
|
3 |
Current Liabilities |
|
|
|
(a) Short term
borrowings |
2390.180 |
|
|
(b) Trade payables |
433.866 |
|
|
(c) Other current
liabilities |
374.499 |
|
|
(d) Short-term provisions |
20.789 |
|
|
Sub
Total Current Liabilities |
3219.334 |
|
|
|
|
|
|
TOTAL- EQUITY AND
LIABILITIES |
4381.557 |
|
|
|
|
|
A |
ASSETS |
|
|
1 |
Non-current assets |
|
|
|
(a) Fixed Assets |
1116.516 |
|
|
(b) Non-current Investments |
9.840 |
|
|
(c) Long-term Loan and Advances |
116.049 |
|
|
(d) Deferred tax
assets |
113.982 |
|
|
Sub Total
Non-Current Assets |
1356.387 |
|
|
|
|
|
2 |
Current assets |
|
|
|
(a) Current investments |
0.000 |
|
|
(b) Inventories |
1615.674 |
|
|
(c) Trade receivables |
1224.536 |
|
|
(d) Cash and cash
equivalents |
31.496 |
|
|
(e) Short-term loans
and advances |
67.528 |
|
|
(f) Other current
assets |
85.936 |
|
|
Sub Total Current
Assets |
3025.170 |
|
|
|
|
|
|
TOTAL-ASSETS |
4381.557 |
Notes :
1) The above unaudited results were reviewed by the Audit Committee and
approved by the Board of directors at their meeting held on 14th
November 2014.
2) The Company us engaged in the business of textiles and hence there is no
reportable segment.
3) The Statutory Auditors of the Company have carried out the Limited
Reviewed of the above unaudited financial results.
4) Exceptional items for the quarter ended 30th June, 2014
represents surrender value of keyman insurance policy assigned.
5) Consequent to the enactment of the companies Act, 2013 and its
applicability for accounting periods commencing after 1st April
2014, the company has reworked depreciation with reference to the estimated
economic lives of fixed assets prescribed by Schedule II of the Act, In case of
any assets whole life is completes as at 1st April 2014.
6) Previous periods figure have been regrouped arranged wherever necessary to
make them comparable with those of the current period.
INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10301308 |
19/07/2011 |
350,000,000.00 |
STATE BANK OF HYDERABAD |
C-11, MITTAL TOWER, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA |
B18475400 |
|
2 |
10040871 |
19/02/2007 |
300,000,000.00 |
STATE BANK OF INDORE |
COMMERICAL BRANCH , MITTAL COURT 'B' WING, NARIMAN POINT, MUMBAI, Maharashtra - 400021, INDIA |
A11767241 |
|
3 |
90235772 |
25/10/2012 * |
3,632,000,000.00 |
STATE BANK OF HYDERABAD |
11-C, MITTAL TOWER,, 210, NARIMAN POINT, MUMBAI, |
B64444052 |
* Date of charge modification
FIXED ASSETS
- Freehold Land
- Factory Land and Building
- Office Premises
- Residential Building
- Plant and Machinery
- Electrical Installation 923
- Furniture and Fixtures
- Computer
- Vehicle
- Air Conditioner
- Office Equipment
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.10 |
|
|
1 |
Rs.94.09 |
|
Euro |
1 |
Rs.73.42 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
ART |
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 |
3 |
|
--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 |
|
30 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.