MIRA INFORM REPORT
|
Report No. : |
345473 |
|
Report Date : |
17.10.2015 |
IDENTIFICATION DETAILS
|
Name : |
SPENTEX INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
A-60, Okhla Industrial Area, Phase II, New Delhi – 110020 |
|
Tel. No.: |
91-11-26387738 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
25.11.1991 |
|
|
|
|
Com. Reg. No.: |
55-138153 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.897.720 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L74899DL1991PLC138153 |
|
|
|
|
IEC No.: |
0505065924 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCS4997E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Manufacturer and Trader of Textile and Yarn. |
|
|
|
|
No. of Employees
: |
4500 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
C |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
Status : |
Sick Company |
|
|
|
|
Payment Behaviour : |
Slow and delayed |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject was originally promoted by the RPG group as a 100% EOU in
1991. It was taken over by the CLC group in January, 2004. It is engaged in
the manufacturing of cotton and synthetic yarn and fabrics. The company has
been in CDR since June 2009. Subsequently, after running into losses and erosion of networth, it
came under the preview of SICA and was declared sick by Board for Industrial
and Financial Reconstruction (BIFR). Further, the rating also takes into account the ongoing delays in
servicing of the company’s debt obligation. The management has register case (Case No.33/2013) with Board for
Industrial and Financial Reconstruction under section 3 (1) (0) of sick
Industrial companies act 1985. The order on which approval for rehabilitation proposal is pending
determination of sickness. However, business is active. Payment terms are slow and delayed. The company can be considered for business on a fully safe and secured
trade terms and condition. |
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: D |
|
Rating Explanation |
Have lowest credit
quality very low prospects of recovery. |
|
Date |
29.04.2015 |
|
Rating Agency Name |
CARE |
|
Rating |
Short Term Bank
Facilities: D |
|
Rating Explanation |
Have instruments
with the rating are in default or expected to be in default on maturity. |
|
Date |
29.04.2015 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter in
the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
INFORMATION PARTED BY
|
Name : |
Mr. Abhishek |
|
Designation : |
Senior Executive - Finance |
|
Contact No.: |
91-11-26387738 |
|
Date : |
15.10.2015 |
LOCATIONS
|
Registered Office : |
A-60, Okhla
Industrial Area, Phase II, New Delhi – 110020, India |
|
Tel. No. : |
91-11-26387738/ 41614999/
46598900 |
|
Fax No. : |
91-11-26385181 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Factory 1 : |
B-1,
MIDC, Chincholi – Kondi, District Solapur – 413 255, Maharashtra, India |
|
|
|
|
Factory 2 : |
D-48,
MIDC, Baramati, District Pune – 413 133, Maharashtra, India |
|
|
|
|
Factory 3 : |
51-A, Industrial Area,
Sector-III, Pithampur, District Dhar – 454 774, Madhya Pradesh, India |
|
|
|
|
Factory 4 : |
31-A,
MIDC Industrial Area, Butibori, Nagpur – 441 122, Maharashtra, India |
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. Ajay Kumar Choudhary |
|
Designation : |
Chairman |
|
Date of Birth/ Age
: |
67 Years |
|
Qualification : |
Commerce Graduate |
|
Date of Appointment : |
05.05.2004 |
|
|
|
|
Name : |
Mr. Mukund Choudhary |
|
Designation : |
Managing Director |
|
|
|
|
Name : |
Mr. Kapil Choudhary |
|
Designation : |
Deputy Managing Director |
|
Date of Birth/ Age
: |
42 Years |
|
Qualification : |
Commerce Graduate |
|
Date of Appointment : |
05.05.2004 |
|
|
|
|
Name : |
Mr. Amrit Agrawal |
|
Designation : |
Director Finance |
|
|
|
|
Name : |
Mr. Sitaram Parthasarathy |
|
Designation : |
Director Works |
|
Date of Birth/ Age
: |
54 Years |
|
Date of Appointment : |
12.05.2004 |
|
|
|
|
Name : |
Mr. Deepak Diwan |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Prem Malik |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Ram Kumar Thapliyal |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Shyamal Ghosh |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Dhananjaya Prasad Singh |
|
Designation : |
Independent Director |
|
|
|
|
Name : |
Mr. Rajeev Kalra |
|
Designation : |
Nominee CVCI |
|
|
|
|
Name : |
Kamal
Kapur |
|
Designation : |
Additional
Director |
KEY EXECUTIVES
|
Name : |
Mr.
Sharat Kumar Gupta |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Ranjan Mangtani |
|
Designation : |
Senior Vice President Corporate and Legal Affairs
and Company Secretary |
|
|
|
|
Name : |
Mr. Abhishek |
|
Designation : |
Senior Executive - Finance |
SHAREHOLDING PATTERN
As on 30.06.2015
|
Category of Shareholder |
Total No. of Shares |
Total Shareholding as a % of Total No. of
Shares |
|
As a % of (A+B) |
||
|
(A) Shareholding of
Promoter and Promoter Group |
||
|
|
|
|
|
|
18433168 |
20.53 |
|
|
19364058 |
21.57 |
|
|
37797226 |
42.10 |
|
|
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
37797226 |
42.10 |
|
|
|
|
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
20811 |
0.02 |
|
|
12230849 |
13.62 |
|
|
19255367 |
21.45 |
|
|
1505 |
0.00 |
|
|
1505 |
0.00 |
|
|
31508532 |
35.10 |
|
|
|
|
|
|
4557469 |
5.08 |
|
|
|
|
|
Individual shareholders holding nominal share capital up to Rs.0.100 Million |
8417497 |
9.38 |
|
Individual shareholders holding nominal share capital in excess of Rs.0.100 Million |
5818034 |
6.48 |
|
|
1673277 |
1.86 |
|
|
57023 |
0.06 |
|
|
27895 |
0.03 |
|
|
328166 |
0.37 |
|
|
1176472 |
1.31 |
|
|
83721 |
0.09 |
|
|
20466277 |
22.80 |
|
Total Public
shareholding (B) |
51974809 |
57.90 |
|
Total (A)+(B) |
89772035 |
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) |
89772035 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Trader of Textile and Yarn. |
|
|
|
|
Products : |
|
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
|
|
|
|
Exports : |
|
|
Products : |
Finished Goods |
|
Countries : |
|
|
|
|
|
Imports : |
Not Available |
|
|
|
|
Terms : |
|
|
Selling : |
Cash, L/C and Credit |
|
|
|
|
Purchasing : |
Cash, L/C and Credit |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
4500 (Approximately) |
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Bankers : |
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Facilities : |
|
|
Auditors : |
|
|
Name : |
J.C. Bhalla and Company Chartered Accountants |
|
Address : |
New Delhi, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Enterprises Under
Significant Influence : |
|
|
|
|
|
Subsidiaries /
Step-down Subsidiaries : |
|
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
114000000 |
Equity Shares |
Rs.10/- each |
Rs.1140.000 million |
|
7000000 |
Redeemable
Preference Shares |
Rs.10/- each |
Rs.70.000 million |
|
|
Total
|
|
Rs.1210.000
million |
Issued, Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
89772035 |
Equity Shares |
Rs.10/- each |
Rs.897.720 million |
The company has only one class of equity share having a par value of Rs.10/- per share. Each Shareholder is eligible for one vote per share. The dividend proposed, if any by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 of their shareholding.
Reconciliation of
number of shares outstanding at the beginning and at the end of the year
|
Particulars |
As at 31st March, 2015 |
|
|
No. of Shares |
Amount (Rs. in million) |
|
|
Equity shares outstanding at the beginning of the year |
89772035 |
897.720 |
|
Add: Equity shares issued during the year |
--- |
--- |
|
Equity shares
outstanding at the end of the year |
89772035 |
897.720 |
List of shareholders holding
more than 5% of the aggregate share in the company
|
Name of Shareholder |
As at 31st March, 2015 |
|
|
No. of Shares Held |
% of Holding |
|
|
Citigroup Venture Capital International Growth Partnership Mauritius Limited |
19252650 |
21.45 |
|
CLC Technologies Private Limited |
18300000 |
20.38 |
|
Mukund Choudhary |
8535946 |
9.51 |
|
Kapil Choudhary |
8474869 |
9.44 |
|
Ajay Kumar Choudhary |
8066052 |
8.99 |
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 |
897.720 |
897.720 |
883.720 |
|
(b) Reserves &
Surplus |
(2178.765) |
(1538.654) |
(1420.018) |
|
(c) Money received
against share warrants |
0.000 |
0.000 |
14.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
110.950 |
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
(1170.095) |
(640.934) |
(522.298) |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
1709.472 |
2414.529 |
2918.731 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
1.822 |
1.671 |
1.724 |
|
(d) long-term provisions |
76.991 |
68.263 |
70.347 |
|
Total Non-current
Liabilities (3) |
1788.285 |
2484.463 |
2990.802 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
1679.948 |
1447.927 |
999.698 |
|
(b) Trade payables |
1506.776 |
1163.302 |
1230.070 |
|
(c) Other current
liabilities |
1600.353 |
1585.253 |
1578.717 |
|
(d) Short-term provisions |
16.396 |
17.750 |
2.510 |
|
Total Current Liabilities
(4) |
4803.473 |
4214.232 |
3810.995 |
|
|
|
|
|
|
TOTAL |
5421.663 |
6057.761 |
6279.499 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
1928.175 |
2052.832 |
2195.133 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.891 |
|
(iii) Capital
work-in-progress |
1.747 |
0.646 |
3.148 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
774.893 |
774.893 |
774.893 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
842.220 |
818.051 |
961.017 |
|
(e) Other Non-current
assets |
213.302 |
238.905 |
254.145 |
|
Total Non-Current Assets |
3760.337 |
3885.327 |
4189.227 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
627.334 |
1043.165 |
859.407 |
|
(c) Trade receivables |
322.515 |
336.403 |
397.932 |
|
(d) Cash and cash
equivalents |
30.534 |
43.089 |
60.687 |
|
(e) Short-term loans and
advances |
453.276 |
527.978 |
560.761 |
|
(f) Other current assets |
227.667 |
221.799 |
211.485 |
|
Total Current Assets |
1661.326 |
2172.434 |
2090.272 |
|
|
|
|
|
|
TOTAL |
5421.663 |
6057.761 |
6279.499 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
8911.437 |
11428.973 |
11296.629 |
|
|
Other Income |
166.577 |
138.689 |
207.449 |
|
|
TOTAL |
9078.014 |
11567.662 |
11504.078 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
5684.218 |
7911.257 |
7385.481 |
|
|
Purchases of
Stock-in-Trade |
144.649 |
149.442 |
272.396 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
463.642 |
(261.108) |
(350.641) |
|
|
Employees benefits
expense |
801.115 |
775.925 |
701.302 |
|
|
Other expenses |
1709.441 |
2112.59 |
2233.201 |
|
|
Extraordinary Items |
(13.717) |
0.000 |
0.000 |
|
|
Prior period items |
0.000 |
5.703 |
26.514 |
|
|
TOTAL |
8789.348 |
10693.809 |
10268.253 |
|
|
|
|
|
|
|
Less |
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
288.666 |
873.853 |
1235.825 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
793.707 |
810.440 |
768.051 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
(505.041) |
63.413 |
467.774 |
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
116.869 |
182.050 |
261.950 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(621.910) |
(118.637) |
205.824 |
|
|
|
|
|
|
|
Less |
TAX |
6.018 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
(627.928) |
(118.637) |
205.824 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
4631.274 |
7264.117 |
7601.692 |
|
|
TOTAL EARNINGS |
4631.274 |
7264.117 |
7601.692 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
86.781 |
68.644 |
71.758 |
|
|
Components and Stores
parts |
32.825 |
47.887 |
36.097 |
|
|
TOTAL IMPORTS |
119.606 |
116.531 |
107.855 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (Rs.) |
(7.15) |
(1.32) |
2.34 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
1025.646 |
939.819 |
1005.07 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Cash flow from operating activities |
1044.403 |
906.701 |
612.889 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
(7.05) |
(1.04) |
1.82 |
|
|
|
|
|
|
|
Operating Profit Margin (PBIDT/Sales) |
(%) |
3.24 |
7.65 |
10.94 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(13.39) |
(2.25) |
3.74 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.53 |
0.19 |
(0.39) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
(3.77) |
(7.49) |
(9.43) |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.35 |
0.52 |
0.55 |
STOCK
PRICES
|
Face Value |
Rs.10/- |
|
Market Value |
Rs.1.90/- |
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 |
883.720 |
897.720 |
897.720 |
|
Reserves & Surplus |
(1420.018) |
(1538.654) |
(2178.765) |
|
Share Application money
pending allotment |
0.000 |
0.000 |
110.950 |
|
Net worth |
(536.298) |
(640.934) |
(1170.095) |
|
|
|
|
|
|
long-term borrowings |
2918.731 |
2414.529 |
1709.472 |
|
Short term borrowings |
999.698 |
1447.927 |
1679.948 |
|
Current Maturities of
Long Term Debt |
1005.070 |
939.819 |
1025.646 |
|
Total borrowings |
4923.499 |
4802.275 |
4415.066 |
|
Debt/Equity ratio |
(9.181) |
(7.493) |
(3.773) |
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 |
11296.629 |
11428.973 |
8911.437 |
|
|
|
1.172 |
(22.028) |
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 |
11296.629 |
11428.973 |
8911.437 |
|
Profit |
205.824 |
(118.637) |
(627.928) |
|
|
1.82% |
(1.04%) |
(7.05%) |
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) |
Yes |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
Yes |
|
19 |
Major customers |
Yes |
|
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 |
------------------- |
|
33 |
Market information |
------------------- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the Annual
Report |
No |
MANAGEMENT DISCUSSION
AND ANALYSIS REPORT
The Indian Textile Industry, with the opening up of economy since 1991, has become one of the mainstays of the national economy. The Textile Industry contributes about 14% of total industrial production and 5% to Gross Domestic Production of the country. The Textile Industry is also second largest source of employment after Agriculture sector, in the country. It generates jobs for almost 35 million people and accounts for nearly 12% share of the country total export basket. The Indian Textile Industry has great potential to increase its share in world trade from current estimated level of around US $108 billion, to US $300 billion by 2025.
Spentex has integrated Cotton and Polyester Yarn manufacturing facilities in India with stable customer base with long term mutually beneficial business relationship both in India and abroad. The company has presence across the entire value chain of cotton and polyester yarn with ability to offer the products as required by the Indian and global markets.
Spentex’s business is highly integrated with global markets and macro-economic developments across the world which has a significant impact on its performance. Any fluctuation in prices of cotton or yarn in international market has deep ramification on its business, which is further impacted by local factors. Such as the power cost in Maharashtra where the Company plants are located is very high which had a major impact on the company’s financials and decline in cotton prices by 25% globally as compared to 6% in India during the last financial year led to higher input cost in India as compared to international market, making company’s operations uncompetitive as compared to international players as the company is export oriented with significant proportion of the output being sold in global markets. Further, Global growth remains moderate, with uneven prospects across the countries and regions, and there has slowdown in emerging markets and developed economies, which has further contributed pressures on the margins.
The operations of the company during the year were adversely impacted due to the sluggish market demand with consequent decline in and sales and continuing liability of debt & interest repayment in respect of term and working capital loans availed from Banks and Financial Institutions, created a situation wherein the company has not been able to leverage and optimize its plant operations. As a result, there has been significant decline in EBIDTAlevels as compared to previous years which has resulted in huge financial strain on the company. With due strategic focus on efficient plant operations keeping in view the market trends and the merging business scenario, Spentex is confident of improvement in its operational performance in near future.
FINANCIAL ANALYSIS
AND PERFORMANCE REVIEW
During the financial year 2014-15 the Company’s operations were adversely impacted due to sluggish demand, progressive decrease in yarn prices, high power cost in Maharashtra where the company’s plants are located,and adverse cash outflow due to the liability of servicing term & working capital loans availed by the company led to non-optimal utilization of plant capacities and consequent decrease in EBIDTA.
The financial performance of the Company has been presented in two parts, as under:
(i) Spentex Industries Limited (Standalone) excluding the performance of its subsidiaries and step-down subsidiaries.
(ii) Spentex Industries Limited (Consolidated) including the performance of its subsidiaries and step-down subsidiaries. The Consolidated
Financial Statements reflect the performance of Spentex Group of companies and are more relevant for understanding the overall performance of the Group.
SEGMENT-WISE
PERFORMANCE
Yarn Manufacturing
During the year under review, your Company on standalone basis has manufactured 44930.63 MT of yarn as compared to 68941.08 MT of yarn produced during the previous year.
PERFORMANCE OF
SUBSIDIARIES
The details of turnover and overall performance of material subsidiary companies is as under:
Amit Spinning Industries Ltd., India: During the year under review, due to market and financial constraints, the subsidiary could although manufactured 1,281.64 MT of yarn under own production and 1,112.65 MT of yarn on job work basis as compared to 5,123.08 MT of yarn produced under job work basis in the previous year, yet it could not fully utilize and leverage its capacity. It has been declared as a sick company by Board for Industrial and Financial Reconstruction (BIFR) under section 3 (1) (o) of Sick Industries (Companies) Act, since 2012 and has been awaiting approval of Debt Rehabilitation Scheme (DRS).
The Company has its manufacturing facilities at Kolhapur, Maharashtra with capacity of 30,672 spindles.
Spentex Tashkent Toytepa LLC, Uzbekistan (STTL) & Spentex Netherlands B.V, Netherlands (SNBV): During the period of investment, Government of Uzbekistan (GOU) changed certain laws and policies breaching the investment agreement and rendered operation of STTL not only unviable, but also expropriated its investment. SNBV (a subsidiary company), which had made around 99% investment in the equity of STTL, has initiated Arbitration Proceedings against GOU for its Investment Dispute Claim through its lawyers before International Center for Settlement of Investment Dispute (ICSID).
Schoeller Litvinov k.s., Czech Republic: During the year under review, the step down subsidiary could not manufacture yarn due to adverse market conditions, crises in the European Union and financial constraints, the Company had filed application for liquidation at Czech Republic. The Company has manufacturing unit situated at Czech Republic with capacity of 59,000 spindles.
NOTE:
As on March 31, 2012, the accumulated losses of the Company had exceeded its net worth. Accordingly company in compliance with the provisions of section 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 filed a reference with Board for Industrial and Financial Restructuring (BIFR). The Company's operations were adversely affected in 2011-12 due to adverse Govt. policies and high volatility of Raw Material prices. Further, considering the change in scenario, recent performance and trends of the company as well as overall industry outlook, the management believes that losses incurred in the past would reasonably be made good, in due course. The financial statements, as such have been prepared on a going concern basis on the strength of management's plan of revival including reorganization of business.
CONTINGENT
LIABILITIES:
|
PARTICULAR |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
Contingent Liabilities not provided for: |
|
|
|
a)
Demands from income tax authorities under appeal |
74.375 |
37.971 |
|
b)
Demands from sales tax authorities under appeal |
9.026 |
10.244 |
|
c) Show cause
notices/demands raised by excise / customs department (including applicable
penalties), not acknowledged as debts |
383.635 |
392.124 |
|
d)
Show cause notices/demands raised by MP Government / MPEB department , not
acknowledged as debts |
125.056 |
125.056 |
|
e)
Claims against the company not acknowledged as debts |
648.149 |
622.781 |
|
f)
Guarantees and letters of credit issued on behalf of the company, outstanding
at the year end |
178.321 |
248.804 |
|
g)
Bills Discounted with banks on behalf of the company, outstanding at the year
end |
251.993 |
724.660 |
|
h)
Corporate Guarantee given to IREDA for loan to Himalayan Crest Power Private
Limited |
170.537 |
186.107 |
|
i)
Corporate Guarantee given to AXIS Bank Limited and UCO Bank for loan to Amit
Spinning Industries Limited |
328.856 |
319.050 |
|
j) Corporate Guarantee
given to Tashkent Toytepa Textile for deferred payment of purchase
consideration on behalf of Spentex Tashkent Toytepa LLC Current Year USD
43,250,000 (previous year USD 43,250,000) |
0.000 |
2589.810 |
|
k) Corporate Guarantee given to CVCI for
investment in Spentex (Netherlands) B.V. Current Year USD 2,000,000 |
124.990 |
119.760 |
|
l) Corporate Guarantee given to SBI - Tokyo
Branch for loan to Spentex (Netherlands) B.V Current Year USD 205,00,120 |
1308.926 |
1227.547 |
STATEMENT OF STANDALONE
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED 30.06.2015
(Rs. In Million)
|
Particulars |
Quarter ended 30.06.2015 |
|
|
(Unaudited) |
|
Income
from operations |
|
|
Net sales/ Income from operation (net of excise duty) |
1902.921 |
|
Other operating income |
24.378 |
|
Total
income from Operations(net) |
1927.299 |
|
Expenditure |
|
|
Cost of material consumed |
1406.821 |
|
Purchases of stock in trade |
9.711 |
|
Changes in inventories of finished goods, work-in-progress
and stock-in-trade |
(68.840) |
|
Employees benefit expenses |
204.882 |
|
Power and Fuel |
261.350 |
|
Depreciation and amortization expenses |
28.061 |
|
Other expenditure |
131.565 |
|
Total expenses |
1973.550 |
|
Profit
from operations before other income and financial costs |
(46.251) |
|
Other income |
28.655 |
|
Profit from
ordinary activities before finance costs |
(17.595) |
|
Finance costs |
187.413 |
|
Profit from
ordinary activities before tax Expense: |
(205.008) |
|
Tax expenses |
0.000 |
|
Net Profit / (Loss)
from ordinary activities after tax (9-10) |
(205.008) |
|
Paid-up equity share capital (Nominal value Rs.5/- per share) |
897.720 |
|
Reserve excluding Revaluation Reserves as per balance sheet of previous accounting year |
--- |
|
Earnings per share (before extraordinary items) of Rs.10/- each) (not annualized): |
|
|
Basic and diluted |
(2.28) |
|
Earnings per share (after
extraordinary items) |
|
|
Basic and diluted |
(2.28) |
|
A. Particulars
of shareholding |
|
|
1.
Public Shareholding |
|
|
- Number of shares |
51974809 |
|
- Percentage of shareholding |
57.90% |
|
2. Promoters and Promoters group Shareholding- |
|
|
a) Pledged /Encumbered |
|
|
Number of shares |
32689724 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
86.49% |
|
Percentage of shares (as a % of total share capital of the
company) |
36.41% |
|
|
|
|
b) Non Encumbered |
|
|
Number of shares |
5107502 |
|
Percentage of shares (as a % of total shareholding of the
promoter and promoter group) |
13.51% |
|
Percentage of shares (as a % of total share capital of the
company) |
5.69% |
|
B.
Investor Complaints |
|
|
Pending at the beginning of the quarter |
Nil |
|
Receiving during the quarter |
1 |
|
Disposed of during the quarter |
1 |
|
Remaining unreserved at the end of the quarter |
Nil |
Note:
- The above financial results have been reviewed by the Audit Committee and were approved by the Board of Directors in their meeting held on 13th August, 2015.
- The Statutory Auditors have carried out limited review of the Standalone Unaudited Financial Results of the Company for the quarter ended 30th June, 2015.
- In accordance with Accounting Standard 17 on Segment Reporting notified under section 211(3C) of the Companies Act, 1956 for standalone financials, the Company has identified two Business Segments viz., Textile Manufacturing and Textile Trading accordingly segment disclosure has been done.
- The Auditors, in their limited review report have mentioned regarding diminution in the value of company's long term Investment of 2,044.70 lacs and recoverability of 677.744 Million (Previous quarter 642.244 Million) in Amit Spinning Industries Limited (ASIL), subsidiary of the Company. Due to economic slowdown, ASIL had registered losses during the quarter as well as earlier financial years and eroded its net worth. The Company believes that the diminution in value of said investment is temporary nature and considering improvement in the global textile market, ASIL will be able to make good its losses in a foreseeable period of time which will also places this subsidiary in a position to repay the liabilities in due course and hence no adjustment required in the books of accounts.
- The Company has an investment of- 561.011 Million and 9.324 Million in its subsidiary Spentex Netherlands B. V. (SNBV) and its step down subsidiary Spentex Tashkent Toytepa LLC (STTL) respectively. Further it has 70.012 Million as export receivable from STTL and advances recoverable of 950.71 lacs in SNBV as on June 30th, 2015. During the period of investment Government of Uzbekistan (GOU) changed certain laws and policies breaching the investment agreement and rendered operation of STTL not only unviable, but also expropriated its investment. SNBV, which had made around 99% investment the equity of STTL, has initiated Arbitration Proceedings against GOU for its Claim through its lawyer before International Center for Settlement Investment Dispute (ICSID). The matter is in progress. Based on the claim lodged with ICSID, Board of Directors have decided not to make any provision for the aforesaid amounts. In addition to above claim, the company has sent notice to the GOU for indemnifying the losses caused to company directly or indirectly on account of its investment made in Uzbekistan.
- Trade receivables and advance balances amount aggregating to 3.843 Million and 27.314 Million respectively due from certain parties where payments are not forthcoming. Against the above, the Company has filed a suit for recovery. In addition to above for 128.30 lacs dues from Government Authorities, company had filed an application for release with concerned authorities The Company is making effort to recover the same and expects to reduce the outstanding dues significantly. Based on outcome of the legal suit coupled with further negotiations with these parties, the management is of the opinion that ultimately there would be no losses against these old balances and hence no provision is considered necessary at the stage.
- The Company has not allotted shares against amount of 110.950 Million which was brought in by the promoters in more than one Installments under restructuring scheme approved by the bankers of the company. Due to pending necessary approvals for allotment of shares, the Company has not complied with the provisions of Section 42 of the Companies Act, 2013.
- As on March 31, 2012, the accumulated losses of the Company in standalone had exceeded its net worth. Accordingly company in compliance with the provisions of section 15(1) of Sick Industrial Companies (Special Provisions) Act, 1985 filed a reference with Board for Industrial and Financial Restructuring (BIFR). The Company’s operations were adversely affected in 2011-12 due to adverse Govt policies and high volatility of Raw Material prices. Further, considering the change in scenario, recent performance and trends of the company as well as overall industry outlook, the management believes that losses incurred in the past would reasonably be made good, in due course. The financial statements, as such have been prepared on a going concern basis on the strength of management's plan of revival including reorganization of business.
- The figures for the preceding quarter ended March 31, 2015 are the balancing figures between audited figures in respect of the of financial year ended 31st March, 2015 and the published year to date figures for the 9 months period ended on 31st December, 2014.
- During the quarter ICICI Bank has realized part of its dues by invocation of pledge over 12,533,334 promoters Equity shares of the company.
- Previous period figures have been regrouped / recasted / rearranged wherever necessary, to conform to the current period presentation.
REPORTING OF SEGMENT – WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(Rs. In Million)
|
Particulars |
Quarter Ended |
|
|
30.06.2015 |
|
Segment Revenue |
|
|
Textile Manufacturing |
1910.204 |
|
Textile Trading |
40.353 |
|
Total |
1950.557 |
|
Less: Inter Segment revenue |
23.258 |
|
|
|
|
Total Income |
1927.299 |
|
|
|
|
Segment Results |
|
|
Profit/(Loss) before tax and interest from each segment |
|
|
Textile Manufacturing |
52.340 |
|
Textile Trading |
3.940 |
|
Total |
56.279 |
|
Less: |
|
|
Finance Cost |
187.413 |
|
Other Unallocable expenditure net off |
80.550 |
|
Other Unallocable income |
6.676 |
|
|
|
|
Profit / (Loss) before Tax |
(205.008) |
|
|
|
|
Capital employed |
|
|
(segment assets – Segment liabilities) |
|
|
Textile manufacturing |
(1844.158) |
|
Textile trading |
193.528 |
|
Unallocated |
275.529 |
|
Total |
(1375.101) |
FIXED ASSETS
Intangible Assets
·
Goodwill
·
Software
Tangible Assets
·
Land
- Freehold
Land
- Leasehold
Land
·
Building
·
Plant and Machinery
·
Furniture and Fixtures
·
Office Equipments
·
Vehicle
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.64.96 |
|
|
1 |
Rs.100.55 |
|
Euro |
1 |
Rs.73.99 |
INFORMATION DETAILS
|
Information Gathered
by : |
PRT |
|
|
|
|
Analysis Done by
: |
RAS |
|
|
|
|
Report Prepared
by : |
PNM |
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.