MIRA INFORM REPORT
|
Report No. : |
320497 |
|
Report Date : |
02.05.2015 |
IDENTIFICATION DETAILS
|
Name : |
DAMODAR INDUSTRIES LIMITED (w.e.f. 22.01.2013) |
|
|
|
|
Formerly Known
As : |
DAMODAR THREADS LIMITED |
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Registered
Office : |
A1/202, Centre Point, 243-A, N.M. Joshi Marg, Lower Parel (East),
Mumbai – 400 013, Maharashtra |
|
Tel. No.: |
91-22-66610301/ 2 |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
11.12.1987 |
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|
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Com. Reg. No.: |
11-045575 |
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Capital
Investment / Paid-up Capital : |
Rs.89.007 Million |
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|
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CIN No.: [Company Identification
No.] |
L17110MH1987PLC045575 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMD10204F |
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PAN No.: [Permanent Account No.] |
AAACD3850G |
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Legal Form : |
Public Limited Liability Company. The Company’s shares are listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer, Seller and Exporter of Textile Products. |
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No. of Employees
: |
800 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 2100000 |
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|
Status : |
Satisfactory |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject is a well-established company having satisfactory track. The company possesses an acceptable financial profile marked by
adequate networth base and increase in its receivable period along with
working capital intensive nature of the operations resulting into leveraged
capital structure. Management has witnessed a better increase in its sales volume and a
reasonable profit during FY 14. The ratings also take into consideration, the fluctuation in the price
of raw materials and forex movements importing volatility to profitability. Moreover, the intense competition faced from a large number of
organized as well as unorganized players in the sector may affect the
business profile. However, trade relation seems to be fair. Business is active. Payment
terms are reported as usually correct. In view of resourcefulness and the experience of the promoters, the
subject can be considered for business dealings at usual trade terms and
conditions. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term rating = BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
07.10.2014 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term rating = A3 |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
07.10.2014 |
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.
INFORMATION DENIED
MANAGEMENT NON CO-OPERATIVE
CONTACT NO.: 91-260-3264788
LOCATIONS
|
Registered Office : |
A1/202, Centre Point, 243-A, N.M. Joshi Marg, Lower Parel (East), Mumbai
– 400 013, Maharashtra |
|
Tel. No.: |
91-22-66610301/ 2 |
|
Fax No.: |
91-22-66610308 |
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E-Mail : |
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Website : |
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Factory 1 : |
Survey No.265/ 10/ 1, 2 and 3, Demni Road, Dadra Village, Dadra and
Nagar Haveli (U.T.) – 396 230, India |
|
Tel. No.: |
91-260-3264788 |
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Fax No.: |
91-260-2668929 |
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Factory 2 : |
Survey No.288/ 1/1, Old Dena Bank Road, Dadra Village, Dadra and Nagar
Haveli (U.T.) – 396 230, India |
|
Tel. No.: |
91-260-3294102 |
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Factory 3 : |
Plot No. 165/ 67/ 68, Dabhel Industries, Co-operative Society, Dabhel,
Nani Daman – 396210, India |
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Factory 4 : |
Survey No. 174/2, Naroli Village, Dadra and Nagar
Haveli (U.T.), India |
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Marketing Centre/Agency Network : |
Located at: ·
Mumbai ·
Surat ·
Bangalore ·
Salem ·
Belgaum ·
Bhanjan |
DIRECTORS
AS ON 31.03.2014
|
Name : |
Mr. Arun Kumar Biyani |
|
Designation : |
Executive Chairman |
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|
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Name : |
Mr. Ajay D. Biyani |
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Designation : |
Managing Director |
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Name : |
Mr. Anil D. Biyani |
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Designation : |
Executive Director |
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Name : |
Mr. Girdharlal S. Daga |
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Designation : |
Independent Director |
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Name : |
Mr. S. P. Tulsian |
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Designation : |
Independent Director |
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Name : |
Mr. Ashok Kumar Damani |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Subodh Kumar Soni |
|
Designation : |
Company Secretary and Compliance Officer |
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|
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|
Name : |
Mr. Suresh C. Gattani |
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Designation : |
Chief Financial Officer |
MAJOR SHAREHOLDERS
AS ON 31.12.2014
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of Shares |
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|
||
|
(A) Shareholding of
Promoter and Promoter Group |
||
|
|
|
|
|
|
5527113 |
62.10 |
|
|
498000 |
5.60 |
|
|
6025113 |
67.69 |
|
|
|
|
|
Total shareholding of
Promoter and Promoter Group (A) |
6025113 |
67.69 |
|
(B) Public Shareholding |
||
|
|
|
|
|
|
700 |
0.01 |
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|
700 |
0.01 |
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|
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|
422539 |
4.75 |
|
|
|
|
|
Individual shareholders
holding nominal share capital up to Rs. 0.100 Million |
1033634 |
11.61 |
|
Individual shareholders holding
nominal share capital in excess of Rs. 0.100 Million |
1403032 |
15.76 |
|
|
15632 |
0.18 |
|
|
6474 |
0.07 |
|
|
9158 |
0.10 |
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|
2874837 |
32.30 |
|
Total Public shareholding
(B) |
2875537 |
32.31 |
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|
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Total (A)+(B) |
8900650 |
100.00 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
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|
|
|
|
Total (A)+(B)+(C) |
8900650 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer, Seller and Exporter of Textile Products. |
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Products/ Services : |
·
Air Texturizing ·
Cotton Yarns ·
Fancy Texturizing ·
Linen Blends ·
Special Blends ·
Synthetic Yarns ·
Yarn Dyeing |
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Brand Names : |
Not Divulged |
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Agencies Held : |
Not Divulged |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
Not Divulged |
PRODUCTION STATUS : NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
800 (Approximately) |
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Bankers : |
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Facilities : |
NOTE : Long-term Borrowings The Term Loans of 255.638 Million are secured by first pari passu charge on land and building situated at Dadra and Nani Tambadi, all the tangible movable machinery and plant together with spares tools and accessories and other movables, both present and future at Dadra and personal guarantees of three Directors. Term Loan of Rs. 6.113 Million are secured by hypothecation of vehicles. Short-term borrowings Working capital loans are secured by hypothecation of present and future stock of raw materials, stock in process, finished goods, stores and spares, packing materials, book debts & personal guarantees of three directors. |
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Auditors : |
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Name: |
A.J. Baliya and Associates Chartered Accountants |
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Address : |
Mumbai, Maharashtra |
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Cost
Auditors : |
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|
Name: |
Dilip M. Bathija Cost Accountants |
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Associates : |
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CAPITAL STRUCTURE
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs.150.000 Million |
|
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|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
8900650 |
Equity Shares |
Rs. 10/- each |
Rs.89.007 Million |
|
|
|
|
|
Reconciliation of the shares outstanding at the beginning and at the end
of the reporting period
|
Particulars |
Number of shares |
|
At the beginning of the period |
8900650 |
|
Issued during the period – Preferential
Basis |
-- |
|
Outstanding at the end of the period |
8900650 |
Terms/ rights attached to equity shares:
The company has only one class of equity share having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.
During the year ended 31st March 2014, the amount of per Equity share dividend recognized as distributions to equity shareholders was Rs. 2.40 (31st March 2013 Rs.2).
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 proportion to the number of equity shares held by the shareholders.
DETAIL OF SHAREHOLDERS HOLDING MORE THAN 5% SHARE IN THE COMPANY
|
Particulars |
31.03.2014 |
|
|
Equity Shares: |
Number of shares |
Percentage of holding |
|
Equity shares of Rs.10/- each fully paid |
|
|
|
Name of shareholder |
||
|
ArunKumar Biyani – Director |
1,041,200 |
11.70% |
|
Ajay D. Biyani – Director |
1,300,000 |
14.61% |
|
Anil D. Biyani – Director |
1,159,300 |
13.02% |
|
Manju Biyani |
497,950 |
5.59% |
As per of the company, including its register of shareholders/members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
89.007 |
89.007 |
89.007 |
|
(b) Reserves & Surplus |
638.689 |
515.887 |
414.855 |
|
(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) |
727.696 |
604.894 |
503.862 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
444.181 |
509.530 |
523.453 |
|
(b) Deferred tax liabilities (Net) |
71.432 |
72.145 |
68.974 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
0.000 |
0.000 |
0.000 |
|
Total Non-current
Liabilities (3) |
515.613 |
581.675 |
592.427 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
804.051 |
610.011 |
443.298 |
|
(b) Trade
payables |
83.162 |
68.356 |
61.474 |
|
(c) Other
current liabilities |
140.231 |
196.843 |
145.085 |
|
(d) Short-term
provisions |
21.622 |
20.883 |
20.979 |
|
Total Current
Liabilities (4) |
1049.066 |
896.093 |
670.836 |
|
|
|
|
|
|
TOTAL |
2292.375 |
2082.662 |
1767.125 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
840.205 |
870.639 |
769.166 |
|
(ii)
Intangible Assets |
5.247 |
0.537 |
0.517 |
|
(iii)
Capital work-in-progress |
27.609 |
0.000 |
2.549 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.004 |
0.004 |
0.009 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
5.281 |
2.893 |
13.260 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
878.346 |
874.073 |
785.501 |
|
|
|
|
|
|
(2) Current
assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
476.222 |
497.201 |
497.220 |
|
(c) Trade
receivables |
758.895 |
564.717 |
379.760 |
|
(d) Cash
and cash equivalents |
19.233 |
20.172 |
23.663 |
|
(e) Short-term
loans and advances |
159.665 |
126.472 |
80.482 |
|
(f) Other
current assets |
0.014 |
0.027 |
0.499 |
|
Total
Current Assets |
1414.029 |
1208.589 |
981.624 |
|
|
|
|
|
|
TOTAL |
2292.375 |
2082.662 |
1767.125 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
7349.776 |
5823.797 |
3924.003 |
|
|
|
Other Income |
2.928 |
13.426 |
6.195 |
|
|
|
TOTAL (A) |
7352.704 |
5837.223 |
3930.198 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Material and Components consumed |
2478.095 |
2111.166 |
1993.243 |
|
|
|
Purchase of traded goods |
3536.683 |
2616.156 |
1153.715 |
|
|
|
(Increase)/ Decrease in Inventories |
1.147 |
(26.145) |
(51.699) |
|
|
|
Employee benefit expenses |
174.783 |
126.445 |
103.819 |
|
|
|
Other Expenses |
586.376 |
511.745 |
379.378 |
|
|
|
TOTAL (B) |
6777.084 |
5339.367 |
3578.456 |
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
575.620 |
497.856 |
351.742 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
235.397 |
214.151 |
176.180 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
340.223 |
283.705 |
175.562 |
|
|
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION (F) |
111.132 |
98.281 |
89.875 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS) BEFORE
TAX (E-F) (G) |
229.091 |
185.424 |
85.687 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
81.297 |
63.704 |
26.330 |
|
|
|
|
|
|
|
|
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
147.794 |
121.720 |
59.357 |
|
|
|
|
|
|
|
|
|
|
PREVIOUS YEARS’
BALANCE BROUGHT FORWARD |
256.793 |
175.762 |
NA |
|
|
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General reserve |
20.000 |
20.000 |
10.000 |
|
|
|
Proposed Dividend |
8.900 |
7.120 |
14.241 |
|
|
|
Interim Dividend |
12.461 |
10.681 |
0.000 |
|
|
|
Corporate Dividend Tax |
3.630 |
2.887 |
2.310 |
|
|
BALANCE CARRIED
TO THE B/S |
359.595 |
256.793 |
175.762 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
FOB Value Yarn |
4656.879 |
2634.204 |
1761.391 |
|
|
TOTAL EARNINGS |
4656.879 |
2634.204 |
1761.391 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials and stock-in-trade |
1.686 |
59.958 |
93.234 |
|
|
|
Plant and Machinery |
0.000 |
44.149 |
1.937 |
|
|
|
Stores and Spares |
3.662 |
2.045 |
1.423 |
|
|
|
Packaging Materials |
0.000 |
0.242 |
0.000 |
|
|
TOTAL IMPORTS |
5.348 |
106.394 |
96.594 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
16.60 |
13.68 |
6.67 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin |
(%) |
2.01 |
2.09 |
1.51 |
|
|
|
|
|
|
|
Operating Profit Margin |
(%) |
7.83 |
8.55 |
8.96 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
10.12 |
8.90 |
4.86 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.31 |
0.31 |
0.17 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.72 |
1.85 |
1.92 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.35 |
1.35 |
1.46 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Share Capital |
89.007 |
89.007 |
89.007 |
|
Reserves & Surplus |
414.855 |
515.887 |
638.689 |
|
Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Net worth |
503.862 |
604.894 |
727.696 |
|
|
|
|
|
|
long-term borrowings |
523.453 |
509.530 |
444.181 |
|
Short term borrowings |
443.298 |
610.011 |
804.051 |
|
Total borrowings |
966.751 |
1119.541 |
1248.232 |
|
Debt/Equity ratio |
1.919 |
1.851 |
1.715 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales
Turnover (Approximately) |
3924.003 |
5823.797 |
7349.776 |
|
|
|
48.415 |
26.202 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Million) |
(Rs. In Million) |
(Rs. In Million) |
|
Sales |
3924.003 |
5823.797 |
7349.776 |
|
Profit |
59.357 |
121.720 |
147.794 |
|
|
1.51% |
2.09% |
2.01% |
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 |
Yes |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
Yes |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
---------- |
|
22] |
Litigations that the firm
/ promoter involved in |
---------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
---------- |
|
26] |
Buyer visit details |
---------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
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 |
UNSECURED LOAN
|
PARTICULARS |
31.03.2014 (Rs.
in Million) |
31.03.2013 (Rs.
in Million) |
|
Long-term
Borrowings |
|
|
|
Unsecured Loans * [* as stated by Directors taken on long term basis] |
282.222 |
285.016 |
|
Fixed Deposits from public |
22.718 |
22.358 |
|
Total |
304.940 |
307.374 |
CONTINGENT
LIABILITIES
|
PARTICULARS |
31.03.2014 (Rs.
in Million) |
31.03.2013 (Rs.
in Million) |
|
Counter Gurantees given to Banks |
20.338 |
9.588 |
|
Letter of Credit/Bill Discounting with Banks |
763.955 |
645.197 |
|
DEPB Entitlement Refund Claim by DGFT |
8.118 |
8.118 |
|
Central Sales Tax Dues under Appeal |
7.437 |
0.000 |
|
Maharashtra Value Added Tax Dues under Appeal |
4.291 |
0.000 |
INDEX OF CHARGE:
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT
SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10478464 |
22/01/2014 |
90,000,000.00 |
BANK OF BARODA |
MUMBAI MAIN BRANCH,, 10/12, MUMBAI SAMACHAR MARG, |
B96760152 |
|
2 |
10357973 |
29/05/2012 |
182,500,000.00 |
ING VYSYA BANK LIMITED |
SHOP NO.1, AUM SAHEEL TOWER, KASHINATH DHURU, COM |
B40545717 |
|
3 |
10350097 |
28/03/2012 |
50,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, THE ARCADE, 2ND FLOOR, |
B37708419 |
|
4 |
10213676 |
27/03/2010 |
45,000,000.00 |
BANK OF BARODA |
MUMBAI MAIN BRANCH,, 10/12, MUMBAI SAMACHAR MARG, |
A83608554 |
|
5 |
10162260 |
27/03/2010 * |
90,000,000.00 |
BANK OF BARODA |
MUMBAI MAIN BRANCH,, 10/12, MUMBAI SAMACHAR MARG, |
A83608646 |
|
6 |
10034689 |
19/01/2015 * |
1,299,400,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, 2ND FLOOR,, "THE
ARCAD |
C41946740 |
|
7 |
10037231 |
19/01/2015 * |
1,107,000,000.00 |
STATE BANK OF INDIA |
INDUSTRIAL FINANCE BRANCH, 2ND FLOOR,, "THE
ARCAD |
C41945528 |
|
8 |
10033172 |
16/12/2006 |
300,000,000.00 |
BANK OF BARODA |
MUMBAI MAIN BRANCH, 10/12, M. S. MARG,, MUMBAI, M |
A08819443 |
|
9 |
10032834 |
12/12/2006 |
300,000,000.00 |
STATE BANK OF INDIA |
STATE BANK BHAVAN,, MADAME CAMA ROAD, NARIMAN POI |
A08927006 |
|
10 |
90243197 |
12/07/1994 |
18,000,000.00 |
BANK OF BARODA |
IFB BRANCH, BAROODA HOUSE; CP STREET; FORT, MUMBA |
- |
* Date of charge modification
SALES
The Company’s performance has tremendously improved during the Financial Year 2013-14. The sales have grown by 26.20% from Rs. 5823.800 Million in 2013 to Rs. 7349.800 Million in 2014, Profit before tax has grown by 23.57%from Rs. 185.400 Million in 2013 to Rs. 229.100 Million in 2014, Profit after Tax has grown by 21.45% from Rs. 121.700 Million In 2013 to Rs.147.800 Million in 2014
MANAGEMENT DISCUSSION
& ANALYSIS
COMPANY SCENARIO
Over the years, the company has intensively focused on offering value-added textile products such as apparels, home furnishing and knit wear. The Home Textile sector was predominantly using polyester filament yarns but now with their continuous R&D efforts and support from leading curtain makers their have developed linen-like spun yarns which have become extremely popular not only in India but has resulted in exports abroad too. Damodar is continuously expanding in new areas by leveraging the latest in technology to innovate as per latest trends and preferences. They have pioneered and consistently introduced new fibers, new effects and set new trends. Their steadily growing exports are a reflection of our continuous efforts and commitment.
Infrastructure: The Company has increased its production capacity by installing 41374 spindles.
ASSOCIATION WITH
BRANDS:
The company has been associated with renowned brand names such as Arvind, Siyaram's, Mandhana, Raymond, Grasim and D'Decor in the domestic market. This year with continuous efforts the company has been able to penetrate its products farther and added various international brands such as like Esprit, HnM, Zara etc.
EXPORT GROWTH:
In the year 2012-13 their export sales were Rs. 3977.200 Million, and in the year 2013-14 the sales were Rs. 4992.900 Million.
There has been a growth of 25.54% in export Sales. This achievement has been mainly due to the aggressive stance to market their products, participate in various trade fairs and continuous efforts to develop new customers and markets.
FUTURE PLANS AND GROWTH
PLANS:
INFRASTRUCTURE:
The company is in process of automating its production facilities, increase its efficiency and reduce production losses due to labour shortage. Automating will also help in improving the quality standards as required for exports.
TECHNOLOGY
UPGRADATION:
To maintain a competitive edge in production, even with challenging problems related to Labour and Quality, it is very important to upgrade technology for better productivity. They are continuously upgrading their technology with respect to Productivity and Value-added yarn production. This year we have installed five units of Yarn Compacting and slub system.
MARKET DEVELOPMENT:
They consistently participate in all relevant Exhibitions and plan to forge partnerships with major international brands across the globe. In a bid to keep in touch with them, they send the marketing communication and latest catalogues regularly. Keeping in line with international standards we have also applied for BCI, Organic Cotton Certification which is a new requirement by major brands. To develop their domestic market, they have tied up with major designers who predict trends and give us a competitive edge.
INDUSTRY STRUCTURE
& DEVELOPMENT (OVERVIEW) – A GLOBAL PERSPECTIVE
The Textile industry occupies a unique place in the country and ranks next only to Agriculture. One of the earliest to come into existence in India, it accounts for fourteen percent of the total Industrial production, contributes to nearly 11% percent share of the country's total exports basket and is the second largest employment generator after agriculture. The GDP of the Textile Industry in India has been quite beneficial in the economic affairs of the country. It provides direct employment to about forty five million people and about 27% of the foreign exchange earnings are on account of export of textiles and clothing alone.
The textile industry in India has been a pioneer industry as India's industrialization in other arenas has chiefly been achieved on the back of the resources generated by this industry. It plays a vital role in the Indian economy in terms of Industrial Production, Employment and Foreign Exchange earning. The Textile Industry has achieved a good growth in the last two decades in terms of yarn production. Their country has achieved significant quantitative increase in cotton production. The World estimated cotton production is 25.70 metric tons in 2013-14 as per the ICAC release.
India's textile industry is also significant in a global context, ranking second only to China in the production of both
cotton yarn and fabric as well as fifth in the production of synthetic fibers and yarns. India has the potential to increase its textile and apparel share in the world trade from the current level of 4.5 per cent to 8 per cent and reach US$ 80 billion by 2020.
ECONOMIC DEVELOPMENT
The Indian textiles industry has witnessed a phenomenal growth through Industrial Policy 1991 and development of globalization and Indian textile industry took place simultaneously since then. The process of globalization and Indian textile industry development was the effect of rapid acceptance of 'open market' policy by the developing countries, much in the lines of the developed countries of the world.
Today, globalization has brought opportunities for the Indian textile industry. At the same time it is also exposed to threats and therefore the industry has to fight for its share in international textile trade. The WTO has played an important role in the growth and development of the textiles industry at global level and various steps have been taken to uplift the sector. The WTO will ensure better distribution of the world trade, in no way will it be free for all and only the fittest will survive. The WTO benefits for India will not be any different from that of the other developing countries so the Indian textile industry should not only bank upon its strengths, but should also endeavor to remove its weaknesses.
DISCUSSION OF
FINANCIAL PERFORMANCE WITH RESPECT TO OPERATIONAL PERFORMANCE
FINANCIAL HIGHLIGHTS:
Revenue from operations increased from Rs. 5837.200 Million approx in 2012-13 to Rs. 7352.700 Million approx. in year 2013-14.
Profit before Tax increased from Rs. 185.400 Million to Rs. 229.100 Million.
Profit after Tax increased from Rs. 121.700 Million to Rs. 147.800 Million.
Basic Earnings Per share (EPS) increased from Rs. 13.68 to Rs. 16.60.
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER, 2014
(Rs. In Million)
|
PARTICULARS |
Quarter Ended
|
Nine months
ended |
||
|
|
|
31.12.2014 |
30.09.2014 |
31.12.2014 |
|
|
|
Unaudited |
Unaudited |
Unaudited |
|
1 |
Income from operations |
|
|
|
|
|
(a) Net sales/income from operations (net of excise duty) |
1419.325 |
1475.211 |
4406.627 |
|
|
(b) Other operating income |
--- |
-- |
-- |
|
|
Total income from operations (net) |
1419.325 |
1475.211 |
4406.627 |
|
|
|
|
|
|
|
2 |
Expenses |
|
|
|
|
|
a) (Increase)/Decrease in stock in process & finished goods |
(39.666) |
(41.231) |
(118.703) |
|
|
(b)(i) Raw Material Consumed |
620.766 |
706.871 |
200.296 |
|
|
ii) Goods Traded |
519.794 |
496.289 |
1572.672 |
|
|
iii) Job Work |
19.995 |
17.191 |
49.397 |
|
|
c) Employees |
58.327 |
56.135 |
165.485 |
|
|
d) Depreciation and Amortization expenses |
31.831 |
31.831 |
93.493 |
|
|
e) Other expenses |
126.525 |
128.025 |
380.623 |
|
|
Total expenses |
1337.572 |
1395.112 |
4143.263 |
|
|
|
|
|
|
|
3 |
Profit from operations before other income, finance costs and
exceptional items (1-2) |
81.753 |
80.099 |
263.364 |
|
4 |
Other income |
7.737 |
1.274 |
9.807 |
|
5 |
Profit before finance costs and exceptional items (3+4) |
89.490 |
81.373 |
273.171 |
|
6 |
Finance costs |
51.614 |
47.044 |
158.686 |
|
7 |
Profit / (Loss) from Ordinary Activities after finance costs but
before tax (5-6) |
37.876 |
34.329 |
114.485 |
|
8 |
Exceptional Item |
-- |
-- |
-- |
|
9 |
Net Profit / (Loss) from Ordinary Activities after tax (7-8) |
37.876 |
34.329 |
114.485 |
|
10 |
Tax expense |
|
|
|
|
a) Current Tax |
12.874 |
11.668 |
38.913 |
|
|
b) Deferred Tax |
-- |
-- |
-- |
|
|
c) Prior year tax adjustment |
-- |
-- |
-- |
|
|
11 |
Net Profit/Loss
from Ordinary Activities after tax (9-10) |
25.002 |
22.660 |
75.278 |
|
12 |
Extraordinary Items |
-- |
-- |
-- |
|
13 |
Net Profit/Loss for
the period (11-12) |
25.002 |
22.660 |
75.278 |
|
14 |
Paid-up equity share capital (Face value-7l per equity share) |
89.007 |
89.007 |
89.007 |
|
16 |
Reserves (excluding revaluation reserves) as per Balance Sheet of previous accounting year |
-- |
-- |
-- |
|
18 |
Earning Per Share Basic & Diluted (In Rs.) |
2.81 |
2.55 |
8.46 |
|
|
|
|
|
|
|
A |
Particulars of Shareholding |
|
|
|
|
1 |
Public Shareholding |
|
|
|
|
|
- Number of shares |
2875537 |
2910282 |
2875537 |
|
|
- Percentage of shareholding |
32.30 |
32.70 |
32.30 |
|
2 |
Promoters and Promoter group Shareholding a) Pledged/encumbered |
|
|
|
|
|
-Number of shares |
640800 |
640800 |
640800 |
|
|
-Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
10.70 |
10.70 |
10.70 |
|
|
-Percentage of shares (as a % of the total share capital of the
Company) |
7.20 |
7.20 |
7.20 |
|
|
b) Non-encumbered |
|
|
|
|
|
-Number of shares |
5384313 |
5349568 |
5384313 |
|
|
-Percentage of shares (as a % of the total shareholding of promoter
and promoter group) |
89.36 |
89.30 |
89.36 |
|
-Percentage of shares (as a % of the total share capital of |
60.49 |
60.10 |
60.49 |
|
|
Particulars |
Quarter ended
31.12.2014 |
|
Investment Complaints |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
1 |
|
Disposed of during the quarter |
1 |
|
Remaining unresolved at the end of the quarter |
Nil |
NOTE:
1. The above results have been reviewed by the Audit Committee and have been approved by the Board of Directors in its Meeting held on 13th February, 2015.
2. The Statutory Auditors of the Company have carried out Limited Review of the results for the quarter ended 31st December, 2014.
3. The Company has identified its primary business segment as 'Textile Goods", FMCG segments is within thresholds limit stipulated in term of Accounting Standard 17 - "Segment Reporting" and hence it does not require disclosure as a separate reportable segment.
4. Provision for Deferred Tax will be made at the end of the financial year.
5. Net Sales include Merchant Export Sales.
6. Other income includes an Insurance claim of Rupees 7.500 Million.
7. Previous period's/year's figures have been regrouped/rearranged, wherever necessary.
FIXED ASSETS:
Tangible Assets:
·
Free hold Land
·
Residential Flats
·
Buildings
·
Electrical Installation
·
Furniture and Fixtures
·
Vehicles
·
Air Conditioners
·
Generators
·
Weighing Scale
·
Other Equipments
·
Computers
Intangible Assets:
·
Computer Software
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 records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs63.20 |
|
|
1 |
Rs.97.01 |
|
Euro |
1 |
Rs.6934 |
INFORMATION DETAILS
|
Information
Gathered by : |
GYT |
|
|
|
|
Analysis Done by
: |
SUB |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER
|
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
45 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors and their relative weights (as
indicated through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NB |
NEW BUSINESS |
||
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.