MIRA INFORM REPORT
|
Report No. : |
339601 |
|
Report Date : |
08.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
DAMODAR INDUSTRIES LIMITED (w.e.f. 22.01.2013) |
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|
|
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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 |
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Country : |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
11.12.1987 |
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Com. Reg. No.: |
11-045575 |
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Capital
Investment / Paid-up Capital : |
Rs.89.007 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17110MH1987PLC045575 |
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|
|
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IEC No.: |
0396033318 |
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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 : |
A Public Limited Liability Company. The company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturing and processing of Cotton yarn and Fancy yarn. |
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No. of Employees
: |
326 (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 |
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Maximum Credit Limit : |
USD 2300000 |
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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 15. The rating 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 – 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 |
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High |
B2 |
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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 bank facilities= BBB- |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk. |
|
Date |
July, 2015 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities= A3 |
|
Rating Explanation |
Moderate degree of safety and higher credit
risk. |
|
Date |
July, 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
31-03-2013.
INFORMATION PARTED BY (GENERAL DETAILS)
|
Name : |
Mr. Nirbhai Bora |
|
Designation : |
Accounts Manager |
|
Contact No.: |
91-260-3264788 |
|
Date : |
05.09.2015 |
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 |
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Tel. No.: |
91-260-3264788 |
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Fax No.: |
91-260-2668929 |
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Location : |
Owned |
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|
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Factory 2 : |
Plot No. 165/ 67/ 68, Dabhel Industries, Co-operative Society, Dabhel,
Nani Daman – 396210, India |
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Location : |
Rented |
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Factory 3 : |
Survey No.174/2, Naroli Village, Dadra and Nagar Haveli (U.T.) – 396
235, India |
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Location : |
Rented |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. Arun Kumar Biyani |
|
Designation : |
Chairman |
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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. Ashok Kumar Damani |
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Designation : |
Independent Director |
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Name : |
Mr. Raghavan Srinivas |
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Designation : |
Independent Director |
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Name : |
Mrs. Farida Bomi Jambusarwalla |
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Designation : |
Independent Director |
KEY EXECUTIVES
|
Name : |
Mr. Nirbhay R. Bora |
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Designation : |
Chief Financial Officer |
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Address : |
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|
Date of Birth/Age : |
Mr. Subodh Kumar Soni |
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Qualification : |
Company Secretary and Compliance Officer |
SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of
Shareholder |
No. of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
5658763 |
63.58 |
|
|
496000 |
5.57 |
|
|
6154763 |
69.15 |
|
|
|
|
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Total shareholding of Promoter and Promoter Group (A) |
6154763 |
69.15 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
700 |
0.01 |
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|
700 |
0.01 |
|
|
|
|
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|
238917 |
2.68 |
|
|
|
|
|
|
978480 |
10.99 |
|
|
1430241 |
16.07 |
|
|
97549 |
1.10 |
|
|
40435 |
0.45 |
|
|
57114 |
0.64 |
|
|
2745187 |
30.84 |
|
Total Public shareholding (B) |
2745887 |
30.85 |
|
Total (A)+(B) |
8900650 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
8900650 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and processing of Cotton yarn and Fancy yarn. |
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Products : |
·
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 : |
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Products : |
Finished Goods |
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Countries : |
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Imports : |
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Products : |
Raw Material |
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Countries : |
Belgium |
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Products : |
Spare Parts |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash, Credit |
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Purchasing : |
L/C, Cash, Credit |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
326 (Approximately) |
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Bankers : |
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Facilities : |
NOTES: Long Term Borrowings The Term Loans of Rs.164.200 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.2.928 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 and personal guarantees of three directors. |
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Auditors : |
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|
Name : |
A.J. Baliya Chartered Accountant |
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Address : |
Mumbai, Maharashtra, India |
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Cost Auditors : |
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|
Name : |
Dilip M. Bathija |
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Collaborators : |
Not Divulged |
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Membership : |
Not Divulged |
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Associates : |
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CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
15000000 |
Equity Shares |
Rs. 10/- each |
Rs.150.000 Million |
|
|
|
|
|
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 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 2015, the amount of per share dividend recognized as distributions to equity shareholders was Rs.2.50 (31st March 2014 Rs.2.40)
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.
Details of
shareholders holding more than 5% share in the company
|
Particulars |
31.03.2015 |
|
|
Equity Shares: |
Number of shares |
% of holding |
|
Equity shares of Rs.10/- each fully paid |
|
|
|
Name of shareholder |
|
|
|
ArunKumar Biyani – Director |
1053200 |
11.83% |
|
Ajay D. Biyani – Director |
1360000 |
15.28% |
|
Anil D. Biyani – Director |
1164300 |
13.80% |
|
Manju Biyani |
525450 |
5.90% |
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 |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
89.007 |
89.007 |
89.007 |
|
(b) Reserves & Surplus |
728.643 |
638.689 |
515.887 |
|
(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) |
817.650 |
727.696 |
604.894 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
217.155 |
444.181 |
509.530 |
|
(b) Deferred tax liabilities (Net) |
66.210 |
71.432 |
72.145 |
|
(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) |
283.365 |
515.613 |
581.675 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
825.747 |
804.051 |
610.011 |
|
(b) Trade
payables |
88.744 |
83.162 |
68.356 |
|
(c) Other
current liabilities |
83.714 |
140.231 |
196.843 |
|
(d) Short-term
provisions |
25.130 |
21.622 |
20.883 |
|
Total Current
Liabilities (4) |
1023.335 |
1049.066 |
896.093 |
|
|
|
|
|
|
TOTAL |
2124.350 |
2292.375 |
2082.662 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
808.126 |
840.205 |
870.639 |
|
(ii)
Intangible Assets |
4.276 |
5.247 |
0.537 |
|
(iii) Capital
work-in-progress |
0.000 |
27.609 |
0.000 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
0.004 |
0.004 |
0.004 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
5.768 |
5.281 |
2.893 |
|
(e) Other
Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total Non-Current
Assets |
818.174 |
878.346 |
874.073 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
479.532 |
476.222 |
497.201 |
|
(c) Trade
receivables |
672.219 |
758.895 |
564.717 |
|
(d) Cash
and cash equivalents |
23.038 |
19.233 |
20.172 |
|
(e)
Short-term loans and advances |
131.387 |
159.665 |
126.472 |
|
(f) Other current
assets |
0.000 |
0.014 |
0.027 |
|
Total
Current Assets |
1306.176 |
1414.029 |
1208.589 |
|
|
|
|
|
|
TOTAL |
2124.350 |
2292.375 |
2082.662 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
5930.448 |
7349.776 |
5823.797 |
|
|
|
|
Other Income |
2.953 |
2.928 |
13.426 |
|
|
|
|
TOTAL (A) |
5933.401 |
7352.704 |
5837.223 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Materials Consumed |
2615.234 |
2478.095 |
2111.166 |
|
|
|
|
Purchase of Stock-in-trade |
2049.850 |
3536.683 |
2616.156 |
|
|
|
|
(Increase) / Decrease in Inventories of Finished Goods Work-in-progress and Trade Goods |
(40.095) |
1.147 |
(26.145) |
|
|
|
|
Employee Benefits Expenses |
204.772 |
171.697 |
126.445 |
|
|
|
|
Other Expenses |
605.415 |
589.463 |
511.745 |
|
|
|
|
TOTAL (B) |
5435.176 |
6777.085 |
5339.367 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
498.225 |
575.619 |
497.856 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES (D) |
192.536 |
235.397 |
214.151 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)
(E) |
305.689 |
340.222 |
283.705 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION (F) |
124.955 |
111.132 |
98.281 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX (E-F) (G)
|
180.734 |
229.090 |
185.424 |
||
|
|
|
|
|
|
||
|
Less |
TAX (H) |
61.757 |
81.296 |
63.704 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX (G-H) (I) |
118.977 |
147.794 |
121.720 |
||
|
|
|
|
|
|
||
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
359.595 |
256.793 |
175.762 |
||
|
|
|
|
|
|
||
|
Less |
APPROPRIATIONS |
|
|
|
||
|
|
|
Proposed final equity dividend |
8.901 |
8.901 |
7.120 |
|
|
|
|
Interim Dividend |
13.351 |
12.461 |
10.681 |
|
|
|
|
Tax on equity dividends |
4.449 |
3.630 |
2.888 |
|
|
|
|
Depreciation Adjustment as per new Rule of Companies Act 2013 |
2.322 |
0.000 |
0.000 |
|
|
|
|
Transfer to general reserve |
20.000 |
20.000 |
20.000 |
|
|
|
BALANCE CARRIED
TO THE B/S |
429.549 |
359.595 |
256.793 |
||
|
|
|
|
|
|
||
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
FOB Value Yarn |
2795.498 |
4656.880 |
2634.204 |
|
|
|
TOTAL EARNINGS |
2795.498 |
4656.880 |
2634.204 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials and stock-in-trade |
32.706 |
1.686 |
59.958 |
|
|
|
|
Plant and Machinery |
0.000 |
0.000 |
44.149 |
|
|
|
|
Stores and Spares |
3.741 |
3.662 |
2.045 |
|
|
|
|
Packaging Materials |
0.000 |
0.000 |
0.242 |
|
|
|
TOTAL IMPORTS |
36.447 |
5.348 |
106.394 |
||
|
|
|
|
|
|
||
|
|
Earnings Per
Share (Rs.) |
13.37 |
16.60 |
13.68 |
||
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term debt |
79.666 |
137.643 |
193.022 |
|
Cash generated from operations |
599.030 |
367.300 |
252.258 |
|
Net cash from operating activities |
536.577 |
276.936 |
206.584 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin PAT / Sales |
(%) |
2.01 |
2.01 |
2.09 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
8.40 |
7.83 |
8.55 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets) |
(%) |
8.51 |
10.12 |
8.90 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.22 |
0.31 |
0.31 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.37 |
1.90 |
2.17 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.28 |
1.35 |
1.35 |
STOCK
PRICES
|
Face Value |
Rs.10.00/- |
|
Market Value |
Rs.48.20/- |
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 |
89.007 |
89.007 |
89.007 |
|
Reserves & Surplus |
515.887 |
638.689 |
728.643 |
|
Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
604.894 |
727.696 |
817.650 |
|
|
|
|
|
|
long-term borrowings |
509.530 |
444.181 |
217.155 |
|
Short term borrowings |
610.011 |
804.051 |
825.747 |
|
Current Maturities of Long term debt |
193.022 |
137.643 |
79.666 |
|
Total
borrowings |
1312.563 |
1385.875 |
1122.568 |
|
Debt/Equity
ratio |
2.170 |
1.904 |
1.373 |
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 |
5823.797 |
7349.776 |
5930.448 |
|
|
|
26.202 |
(19.311) |
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
|
5823.797 |
7349.776 |
5930.448 |
|
Profit |
121.720 |
147.794 |
118.977 |
|
|
2.09% |
2.01% |
2.01% |
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 |
No |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
No |
|
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 |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
SALES
Their Sales have dropped to 5930.400 million from 7349.800 million. The value of their product has fallen by 19% YOY Basis. Weak Demand in the international market has resulted in volume drop in their Merchant Exports. The fall of sales in International Market have been offset by increase in sale in domestic market. There volumes of domestic market have significantly increased since last year.
OPERATION RESULTS AND BUSINESS
The Company continued to see profitable growth during the Financial Year 2014-15 across all markets driven by good performance across business segments.
MANAGEMENT DISCUSSION AND ANALYSIS
COMPANY SCENARIO:
Over the years, the company has intensively focused on offering value-added yarn to 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 they have developed linen-like spun yarns which have become extremely popular not only in India but has resulted in exports abroad too. The company 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 their continuous efforts and commitment.
Infrastructure: The Company has installed 44796 spindles during the year 2014-15 to increase production capacity.
ASSOCIATION WITH BRANDS:
The company has been associated with renowned brand names such as Arvind, Siyaram’s, Mandhana, Raymond, Grasim and D Décor 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.
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.
INDIAN TEXTILES OVERVIEW
Indian Textile Industry contributes about 11 percent to industrial production, 14 per cent to the manufacturing sector, 4 percent to the GDP and 12 per cent to the country's total export earnings. It provides direct employment to over 35 million people, the second largest provider of employment after agriculture. Besides, another 54.85 million people are engaged in its allied activities. It has been estimated that one of every six households in the country depends on this sector, either directly or indirectly, for its livelihood.
The fundamental strength of this industry flows from its strong production base of wide range of fibres /yarns from natural fibres like cotton, jute, silk and wool to synthetic /man-made fibres like polyester, viscose, nylon and acrylic.
COTTON SCENARIO:
The demand for cotton in international market is sliding, which can be largely linked to China’s new cotton policy, as China constitutes about 60% of the India’s cotton exports. Cotton export from India is estimated to fall from high of 11 million bales in 2013-14 to 6-7 million bales in 2014-15.
As per the latest data available from government departments and industry sources, total cotton sowing in the country stood at 126.55 lakh hectares this year (2014-15) against about 117.27 lakh hectares last year (2013-14).
As per the cotton corporation of India, in the year 2014-15 cotton production in India is estimated 390 lakh bales from 126.55 lakh hectares in compare to 398 lakh bales in the year 2013-14 from 117.27 lakh hectares. India is expected to emerge as the largest producer of the cotton in the world with 26% share in the world’s cotton production. Cotton export from India to be adversely impacted in FY 2014-15 due to reduced demand by china, however it will significantly improve cotton availability in India. Cotton production in India was remain stable and consumption has increased by 3 to 5% in FY 15.
While the cotton production in India in year 2015-16 is expected to decline by 3 to 5% due to decline in cotton prices as farmers shift to alternate crops and dependence upon monsoon, however Cotton availability in India to remain comfortable in year 2015-16 despite decline in production due to higher carry forward stock and limited exports.
The cotton availability in India is expected to remain comfortable and further improve from that in year 2014-15 with stock to consumption ratio expected at 28 to 33% at the end of in year Fy16.
The improvement will be driven by higher carry forward stock from CY 2014/15 as exports had declined due to lower demand from China and expectation of limited cotton exports in CY 2015/16 as well. Despite the decline in the production, India will remain the world’s largest cotton producer.
The cotton consumption is expected to increase by 3 to 4% in CY 2015/16 on account of low cotton prices which has resulted in a significant decline in the spread between cotton and polyester stable fiber and also the expected improvement in the global economic growth, which will lead to improved demand for textile products.
OUTLOOK
The demand for Cotton Yarn was consistent throughout the year and the trend is expected to remain for the current year. The Company’s focus is to continue to manufacture value added variety of Cotton Yarn to derive the optimum use of production facilities created.
Falling international demand and prices of cotton will have an impact on domestic yarn prices too. In the short to medium term, on the back of the expected record production of cotton and subdued (reduced) export demand the cotton prices are expected to remain soft (or low).
UNSECURED LOAN:
|
Particulars |
31.03.2015 Rs.
In Million |
31.03.2014 Rs.
In Million |
|
Long Term
Borrowings |
|
|
|
Unsecured Loans (as stated by Directors taken on long term basis) |
77.187 |
282.222 |
|
Fixed Deposits from public |
30.419 |
22.718 |
|
|
|
|
|
Total |
107.606 |
304.940 |
INDEX OF CHARGE:
|
Sr. No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10581576 |
18/05/2015 |
272,100,000.00 |
Kotak Mahindra Bank Limited |
Shop No.1, Aum Saheel Tower, Kashinath Dhuru, Com Pound, Opp. Kamala Mills, S B Marg, Lower Parel, Mumbai, Maharashtra - 400013, India |
C59628719 |
|
2 |
10478464 |
22/01/2014 |
90,000,000.00 |
Bank of Baroda |
Mumbai
Main Branch,, 10/12, Mumbai Samachar Marg, |
B96760152 |
|
3 |
10357973 |
29/05/2012 |
182,500,000.00 |
ING Vysya Bank Limited |
Shop No.1, Aum Saheel Tower, Kashinath Dhuru, Com Pound, Opp. Kamala Mills, S B Marg, Lower Parel, Mumbai, Maharashtra - 400013, India |
B40545717 |
|
4 |
10350097 |
28/03/2012 |
50,000,000.00 |
State Bank of India |
Industrial
Finance Branch, The Arcade, 2nd Floor, |
B37708419 |
|
5 |
10213676 |
27/03/2010 |
45,000,000.00 |
Bank of Baroda |
Mumbai
Main Branch,, 10/12, Mumbai Samachar Marg, |
A83608554 |
|
6 |
10162260 |
27/03/2010 * |
90,000,000.00 |
Bank of Baroda |
Mumbai
Main Branch,, 10/12, Mumbai Samachar Marg, |
A83608646 |
|
7 |
10034689 |
19/01/2015 * |
1,299,400,000.00 |
State Bank of India |
Industrial Finance Branch, 2nd floor,, "The Arcade " World Trade Centre, Cuff Parade,, MUMBAI, Maharashtra - 400005, India |
C41946740 |
|
8 |
10037231 |
19/01/2015 * |
1,107,000,000.00 |
State Bank of India |
Industrial Finance Branch, 2nd floor,, "The Arcade " World Trade Centre, Cuff Parade,, MUMBAI, Maharashtra - 400005, India |
C41945528 |
|
9 |
10033172 |
16/12/2006 |
300,000,000.00 |
Bank of Baroda |
Mumbai Main Branch, 10/12, M. S. MARG,, Mumbai, Maharashtra - 400001, India |
A08819443 |
|
10 |
10032834 |
12/12/2006 |
300,000,000.00 |
State Bank of India |
State Bank Bhavan, Madame Cama Road, Nariman Point,, Mumbai, Maharashtra - 400021, India |
A08927006 |
|
11 |
90243197 |
12/07/1994 |
18,000,000.00 |
Bank of Baroda |
IFB Branch, Baroda House; CP Street; Fort, Mumbai, Maharashtra - 400001, India |
- |
|
12 |
90243059 |
14/01/1991 * |
6,284,000.00 |
Bank of Baroda |
Industrial Finance Branch, Baroda House; CP Street; Fort, Mumbai, Maharashtra - 400023, India |
- |
|
13 |
90243031 |
20/10/1989 * |
2,000,000.00 |
Bank of Baroda |
IFB Branch, Baroda House; CP Street; Fort, Mumbai, Maharashtra - 400001, India |
- |
|
14 |
90242979 |
27/07/1990 * |
1,400,000.00 |
Bank of Baroda |
IFB Branch, Baroda House; CP Street; Fort, Mumbai, Maharashtra - 400001, India |
- |
*Date of modification Charges
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 |
Rs.66.74 |
|
|
1 |
Rs.101.36 |
|
Euro |
1 |
Rs.74.27 |
INFORMATION DETAILS
|
Information
Gathered by : |
DIP |
|
|
|
|
Analysis Done by
: |
TRI |
|
|
|
|
Report Prepared
by : |
NKT |
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 |
|
--PROFITABILITY |
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.