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3decades

 

MIRA INFORM REPORT

 

 

Report No. :

501955

Report Date :

07.04.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

GARDEN SILK MILLS LIMITED

 

 

Registered Office :

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

Tel. No.:

91-22-22873117

 

 

Country :

India

 

 

Financials (as on) :

31.03.2017

 

 

Date of Incorporation :

23.07.1979

 

 

Com. Reg. No.:

04-003463

 

 

Capital Investment / Paid-up Capital :

INR 420.825 Million

 

 

CIN No.:

[Company Identification No.]

L17111GJ1979PLC003463

 

 

IEC No.:

[Import-Export Code No.]

0888005482

 

 

GSTN :

[Goods & Service Tax Registration No.]

Not Divulged

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

Not Available

 

 

PAN No.:

[Permanent Account No.]

AAACG8932C

 

 

Legal Form :

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

 

 

Line of Business :

Subject is a vertically integrated manufacturer of a wide range of Polyester Chips, Polyester Filament Yarns (PFY), Preparatory Yarns, Woven (Grey) Fabric as well as Dyed and Printed Sarees and Dress Materials. [Registered Activity]

 

 

No. of Employees :

5044 (Approximately)

 

 

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23rd January 2017)

 

MIRA’s Rating :

C

 

Credit Rating

Explanation

Rating Comments

C

Medium High Risk

Business dealings permissible preferably on secured basis

 

Status :

Poor

 

 

Payment Behaviour :

Slow and delayed

 

 

Litigation :

Exist

 

 

Comments :

Subject was incorporated in the year 1979 and is engaged in manufacturing of polyester chips, polyester filament yarn and polyester textile fabrics.

 

As per the quarterly results f December 2017, the company has earned sales turnover of INR 8425.614 Million and has incurred operational losses.

 

For the financial year 2017, the company has reported a loss but achieved a growth rate of 3.05% in its revenue as compared to the previous year.

 

Rating also takes into consideration on account of weak financial profile marked by negative net worth base and highly leveraged balance sheet profile.

 

Rating also takes into consideration ongoing delays in servicing of debt obligation by the company on the account on its weakened liquidity position.

 

Business is active. Payments seems to be slow and delayed.

 

In view of aforesaid, the company can be considered for business dealings on fully safe and secured 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

 

Country Name

Previous Rating

(30.09.2017)

Current Rating

(31.12.2017)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderately Low Risk

 

B1

Moderate Risk

 

B2

Moderately High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 

 

EXTERNAL AGENCY RATING

 

Rating Agency Name

CARE

Rating

Long Term Loans = D

Rating Explanation

Lowest-credit-quality and very low prospects of recovery.

Date

14.02.2018

 

Rating Agency Name

CARE

Rating

Short Term Loans = D

Rating Explanation

Lowest-credit-quality and very low prospects of recovery.

Date

14.02.2018

 

 

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 31-03-2018.

 

BIFR (Board for Industrial & Financial Reconstruction) LISTING STATUS

 

Subject’s name is not listed as a Sick Unit in the publicly available BIFR (Board for Industrial & Financial Reconstruction) list as of 07.04.2018

 

 

IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS

 

Subject’s name is not listed in the publicly available IBBI (Insolvency and Bankruptcy Board of India) list as of report date.

 

 

INFORMATION DENIED

 

MANAGEMENT NON-COOPERATIVE (Tel No.:91-22-22873117)

 

 

LOCATIONS

 

Registered Office :

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

Tel. No.:

91-261-2311197 / 2311615

Fax No.:

91-261-2311029 / 502

E-Mail :

sharedepartment@gardenvareli.com

garden_tax@gardenvareli.com

Website :

http://www.gardenvareli.com

 

 

Corporate Office :

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

Tel. No.:

91-22-22873117-19 / 22046473 / 22040895

Fax No.:

91-22-22048112

E-Mail :

support@gardenvareli.com

 

 

Factory 1 :

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

Tel. No.:

91-2622-271241-47

 

 

Factory 2 :

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

Tel. No.:

91-2622-271287-89

 

 

Factory 3 :

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

 

 

 

DIRECTORS

 

AS ON 31.03.2017

 

Name :

Mr. Sanjay Suresh Shah

Designation :

Whole-time Director

Address :

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

Date of Birth/Age :

19.02.1956

Date of Appointment :

19.02.1990

DIN No.:

00024004

 

 

Name :

Mr. Sunil Sureshchandra Sheth

Designation :

Additional director

Address :

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

Date of Appointment :

13.08.2014

DIN No.:

00024033

 

 

Name :

Mr. Yatish Chandrakant Parekh

Designation :

Director

Address :

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

Date of Birth/Age :

30.11.1951

Date of Appointment :

19.10.2001

DIN No.:

00168488

 

 

Name :

Mr. Praful Amichand Shah

Designation :

Managing Director

Address :

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

Date of Birth/Age :

14.12.1938

Date of Appointment :

01.09.2013

DIN No.:

00218143

 

 

Name :

Mr. Alok Praful Shah

Designation :

Whole-time Director

Address :

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

Date of Birth/Age :

11.09.1970

Date of Appointment :

01.11.2014

DIN No.:

00218180

 

Name :

Ms. Anita Mandrekar

Designation :

Additional director

Address :

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

Date of Appointment :

30.05.2015

DIN No.:

00623327

 

Name :

Mr. Suhail Praful Shah

Designation :

Whole-time Director

Address :

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

Date of Birth/Age :

01.09.1974

Date of Appointment :

01.12.2012

DIN No.:

00719002

 

Name :

Mr. Ketan Arunchandra Jariwala

Designation :

Additional Director

Address :

901 Shree Apartment, Makkai Pool, Nanpura, Surat – 395001, Gujarat, India

Date of Appointment :

30.05.2017

DIN No.:

02095540

 

Name :

Mr. Harish Chandra Mishra

Designation :

Nominee Director

Address :

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

Date of Birth/Age :

29.05.1953

Date of Appointment :

20.06.2013

DIN No.:

03111520

 

Name :

Mr. Deepak Narandas Shah

Designation :

Director

Address :

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

Date of Appointment :

05.12.2015

DIN No.:

07356807

 

 

KEY EXECUTIVES

 

Name :

Kamlesh Balvantrai Vyas

Designation :

Company Secretary

Address :

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

Date of Birth/Age :

27.05.1960

Date of Appointment :

21.11.1996

PAN No.:

AARPV5514F

 

Name :

Mr. Alok Praful Shah

Designation :

Chief Finance Officer

Address :

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

Date of Appointment :

01.11.2014

PAN No.:

AHHPS2728P

 

 

SHAREHOLDING PATTERN

 

AS ON 31.12.2017

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of

(A) Promoter and Promoter Group

24288806

57.72

(B) Public

17793719

42.28

Grand Total

42082525

100.00

 

 

Statement showing shareholding pattern of the Promoter and Promoter Group

 

Category of shareholder

No. of fully paid up equity shares held

Shareholding as a % of total no. of shares (calculated as per SCRR, 1957)As a % of

Number of Shares pledged or otherwise encumbered

No.

As a % of total Shares held

A1) Indian

0.00

0.00

Individuals/Hindu undivided Family

6360259

15.11

5597538

88.01

Praful A. Shah

2789190

6.63

2789190

100.00

Praful Amichand Shah (HUF)

1002667

2.38

1002667

100.00

Alok P. Shah

754671

1.79

754671

100.00

Sanjay Suresh Shah

689660

1.64

0.00

Suhail Praful Shah

496685

1.18

496685

100.00

Shilpa Praful Shah

554325

1.32

554325

100.00

Shyama Sanjay Shah

68863

0.16

0.00

Rajen P. Shah

4198

0.01

0.00

Any Other (specify)

17928547

42.60

15864549

88.49

Introscope Properties Private Limited

7231996

17.19

7231996

100.00

Palomar Textiles Ltd

3930872

9.34

3930872

100.00

Surat Textile Mills Ltd

480878

1.14

366760

76.27

Vareli Trading Co Ltd

20

0.00

0.00

Praful Amichand Shah Partner of Isha Enterprises

3791965

9.01

1842105

48.58

Praful Amichand Shah Partner of Rayban Investments

2492816

5.92

2492816

100.00

Sub Total A1

24288806

57.72

21462087

88.36

A2) Foreign

0.00

0.00

A=A1+A2

24288806

57.72

21462087

88.36

 

Statement showing shareholding pattern of the Public shareholder

 

Category & Name of the Shareholders

No. of fully paid up equity shares held

Shareholding % calculated as per SCRR, 1957 As a % of

No. of equity shares held in dematerialized form(Not Applicable)

B1) Institutions

0

0.00

Mutual Funds/

3450

0.01

Foreign Portfolio Investors

8660

0.02

Financial Institutions/ Banks

35784

0.09

27914

Any Other (specify)

100

0.00

100

Sub Total B1

47994

0.11

28014

B2) Central Government/ State Government(s)/ President of India

0

0.00

B3) Non-Institutions

0

0.00

Individual share capital upto INR 0.200 Million

7446070

17.69

6479256

Individual share capital in excess of INR 0.200 Million

2968632

7.05

2968632

Shaunak Jagdish Shah

700000

1.66

700000

NBFCs registered with RBI

1500

0.00

1500

Any Other (specify)

7329523

17.42

7113268

Il And Fs Trust Company Limited

2111900

5.02

2111900

Ricky Ishwardas Kirpalani

820135

1.95

820135

Keswani Haresh

1868212

4.44

1868212

Sub Total B3

17745725

42.17

16562656

B=B1+B2+B3

17793719

42.28

16590670

 

BUSINESS DETAILS

 

Line of Business :

Subject is a vertically integrated manufacturer of a wide range of Polyester Chips, Polyester Filament Yarns (PFY), Preparatory Yarns, Woven (Grey) Fabric as well as Dyed and Printed Sarees and Dress Materials. [Registered Activity]

 

 

Products / Services :

NIC Code

Product Description

203-Manufacture of man-made fibers

Polyester Chips and Polyester Filament Yarn

 

 

Brand Names :

Not Available

 

 

Agencies Held :

Not Available

 

 

Exports :

Not Divulged 

 

 

Imports :

Not Divulged 

 

 

Terms :

Not Divulged 

 

PRODUCTION STATUS – (NOT AVAILABLE)

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark :

--

 

 

Customers :

 

Reference :

Not Divulged 

Name of the Person :

--

Contact No.:

--

Since How Long Known :

--

Maximum Limit Dealt :

--

Experience :

--

Remark :

--

 

 

No. of Employees :

5044 (Approximately)

 

 

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

 

 

Facilities :

Secured Loan

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term Loans from banks

 

 

Rupee Loans

11725.527

8811.267

Foreign Currency Loans

0.000

0.000

Rupee Term Loans from financial institutions

151.353

174.638

 

 

 

Short-term borrowings

 

 

Loan repayable on demand :

 

 

Cash Credit Facilities

1105.199

440.101

Other:

 

 

Buyers Credit

0.000

128.597

Total

1105.199

9554.603

 

Note:

 

Long-term Borrowings

 

 

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

 

b)    Of the Rupee Term Loans from banks:

 

i) Loans from Bank of India to the extent of INR 20.625 Million (Previous year INR 21.229 Million) are secured by hypothecation of specific machinery of Fully Drawn Yarn (FDY) Project at Jolwa.

 

ii) Loans from Bank of India to the extent of INR 98.286 Million (Previous year 101.261 Million) are secured by hypothecation of specific Building and machinery of Texturising plant and Draw Twisting plant at Jolwa.

 

iii) Term loans from ICICI Bank, Kotak Mahindra Prime Limited and Axis Bank Ltd. aggregating to INR 6.527 Million (Previous Year INR 11.195 Million) under vehicle finance scheme are secured by an exclusive charge by way of hypothecation of specific vehicles purchased under the arrangements

 

iv) Housing Loan of INR 36.651 Million (Previous year INR 47.297 Million) from ICICI Bank is secured by hypothecation of residential flat at Mumbai.

 

v) Loans from Corporation Bank to the extent of INR 300.300 Million (Previous Year INR 309.400 Million) are secured by hypothecation of movable fixed assets of Specific Continuous Polymerisation Project at Jolwa.

 

vi) Loan from Union Bank of India to the extent of INR 433.015 Million (Previous Year INR 446.140 Million) is secured by hypothecation of specific machinery of Coal Based Thermal Power Project at Jolwa

 

Short-Term Borrowings:

 

Cash Credit facilities are part of Working Capital facilities availed from Consortium of Banks and are secured with hypothecation by way of first pari passu charge on all company’s current assets and by way of second pari passu charge on immovable and all movable properties (excluding current assets) of the Company. Rate of Interest on Cash Credit facilities ranged between10.90% to 11.30%.

 

Auditors :

 

Name :

Natvarlal Vepari and Company

Chartered Accountants

Address :

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

Tel. No.:

91-261-3057777/2465585

Fax No.:

91-261-3995511

Email :

vepari@youtele.com

Website:

www.vepari.com

PAN No.:

AADFN5448E

 

 

Memberships :

Not Available

 

 

Collaborators :

Not Available

 

 

Subsidiary Companies :
  • GAIA International FZE

 

 

Group Company :
  • Surat Textile Mills Limited

 

 

Other Related Parties :

 
  • Armorax Business Centre Private Limited
  • Como Textile Private Limited
  • Sorrento Textile Private Limited
  • Amalfi Textile Private Limited

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2017

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

50000000        

Equity Shares

INR 10/- each

INR 500.000 Million

10000000

Preference Shares

INR 10/- each

INR 100.000 Million

 

Total

 

INR 600.000 Million

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

42082525

Equity Shares

INR 10/- each

INR 420.825 Million

 

 

 

 

 

RECONCILIATION OF EQUITY SHARES OUTSTANDING

 

PARTICULARS

As at 31st March, 2017

 

No of Shares

INR In Million

Balance at the beginning of the year

42082525

420.825

Shares issued conversion of OCCPS

0000

0.000

Outstanding at the end of the year

42082525

420.825

 

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

 

 

As at 31st March, 2017

 

No of Shares

% of holding

Introscope Properties Private Limited

7231996

17.19

Praful A. Shah (Indl.)

2789190

6.63

Praful A. Shah - (Partner of Isha Enterprises)

3791965

9.01

IL and FS Trust Co. Limited

2462297

5.85

Rayben Investments

2492816

5.92

Palomar Textiles Limited

3930872

9.34

 

 

 

 

 

Rights, Preferences and Restrictions attached to Shares

 

Equity Shares:

The Company has two class of shares referred to as Equity Shares having a par value of INR 10/- each. Each equity shareholders is entitled to one vote per share held. The dividend as and when proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. In the event of liquidation, the Equity Shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

 

 

 

FINANCIAL DATA

[all figures are INR Million]

 

ABRIDGED BALANCE SHEET (STANDALONE)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

420.825

420.825

420.825

(b) Reserves & Surplus

(1629.117)

(680.542)

725.525

(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)

(1208.292)

(259.717)

1146.350

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

11933.984

9061.811

10478.843

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

72.820

4369.074

3294.713

(d) long-term provisions

66.098

62.109

64.208

Total Non-current Liabilities (3)

12072.902

13492.994

13837.764

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1105.199

568.698

568.048

(b) Trade payables

3037.534

2468.968

3136.989

(c) Other current liabilities

3221.990

1733.143

876.681

(d) Short-term provisions

176.048

95.427

118.517

Total Current Liabilities (4)

7540.771

4866.236

4700.235

 

 

 

 

TOTAL

18405.381

18099.513

19684.349

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

10935.240

11474.201

11908.424

(ii) Intangible Assets

1.751

3.220

5.942

(iii) Capital work-in-progress

308.404

311.676

320.296

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

142.070

142.070

139.357

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

176.958

323.264

559.857

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

11564.423

12254.431

12933.876

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

3922.985

2934.616

3128.081

(c) Trade receivables

1448.327

1494.045

1060.710

(d) Cash and cash equivalents

509.384

263.337

453.716

(e) Short-term loans and advances

811.924

1037.264

1860.164

(f) Other current assets

148.338

115.820

247.802

Total Current Assets

6840.958

5845.082

6750.473

 

 

 

 

TOTAL

18405.381

18099.513

19684.349

 

 

PROFIT & LOSS ACCOUNT (STANDALONE)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

24371.825

23754.835

26407.336

 

Other Income

99.174

98.365

77.023

 

TOTAL

24470.999

23853.200

26484.359

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

17869.258

16743.824

19016.467

 

Purchases of Stock-in-Trade

179.930

140.915

391.804

 

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

(786.764)

273.739

(27.074)

 

Employees benefits expense

1241.394

1169.492

1108.871

 

Other expenses

4423.663

4497.050

4828.107

 

Extraordinary items

98.422

0.000

0.000

 

TOTAL

23025.903

22825.020

25318.175

 

 

 

 

 

 

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

1445.096

1028.180

1166.184

 

 

 

 

 

Less

FINANCIAL EXPENSES

1748.929

1772.513

1832.418

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(303.833)

(744.333)

(666.234)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

644.742

668.143

761.321

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(948.575)

(1412.476)

(1427.555)

 

 

 

 

 

Less

TAX

0.000

(6.409)

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX 

(948.575)

(1406.067)

(1427.555)

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(3538.418)

(2132.351)

(704.796)

 

 

 

 

 

 

Balance Carried to the B/S

(4486.993)

(3538.418)

(2132.351)

 

 

 

 

 

 

EARNINGS IN FOREIGN CURRENCY

 

 

 

 

F.O.B. Value of Exports

3880.196

3132.248

3693.546

 

TOTAL EARNINGS

3880.196

3132.248

3693.546

 

 

 

 

 

 

IMPORTS

 

 

 

 

Raw Materials

4668.179

5523.291

4555.306

 

Components and Stores parts

996.602

697.986

1316.675

 

TOTAL IMPORTS

5664.781

6221.277

5871.981

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

(22.54)

(33.41)

(35.50)

 

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS

 

Particulars

 

31.03.2017

31.03.2016

31.03.2015

Current Maturities of Long term debt

2371.454

6047.095

676.620

Cash generated from operations

1788.694

994.446

3797.290

Net cash flow from (used in) operations

1785.207

1002.146

3819.144

 

 

QUARTERLY RESULTS

 

PARTICULARS

30.06.2017

30.09.2017

31.12.2017

Unaudited

1st Quarter

2nd Quarter

3rd Quarter

Net Sales

7722.380

7084.580

8425.610

Total Expenditure

7372.360

6841.370

7845.910

PBIDT (Excl OI)

350.020

243.210

579.700

Other Income

24.020

9.410

23.400

Operating Profit

374.050

252.610

603.100

Interest

494.130

464.260

458.770

Exceptional Items

(0.570)

(2.530)

NA

PBDT

(120.650)

(214.180)

144.330

Depreciation

160.080

162.210

164.410

Profit Before Tax

(280.730)

(376.390)

(20.080)

Tax

NA

NA

NA

Provisions and contingencies

NA

NA

NA

Profit After Tax

(280.730)

(376.390)

(20.080)

Extraordinary Items

NA

NA

NA

Prior Period Expenses

NA

NA

NA

Other Adjustments

NA

NA

NA

Net Profit

(280.730)

(376.390)

(20.080)

 

KEY RATIOS

 

EFFICIENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Average Collection Days

(Sundry Debtors / Income * 365 Days)

21.69

22.96

14.66

 

 

 

 

Account Receivables Turnover

( Income / Sundry Debtors)

16.83

15.90

24.90

 

 

 

 

Average Payment Days

(Sundry Creditors / Purchases * 365 Days)

61.43

53.37

59.00

 

 

 

 

Inventory Turnover

(Operating Income / Inventories)

0.37

0.35

0.37

 

 

 

 

Asset Turnover

(Operating Income / Net Fixed Assets)

0.13

0.09

0.10

 

LEVERAGE RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Debt Ratio

((Borrowing + Current Liabilities) / Total Assets)

1.19

1.10

0.81

 

 

 

 

Debt Equity Ratio

(Total Liability / Networth)

(12.75)

(60.36)

10.23

 

 

 

 

Current Liabilities to Networth

(Current Liabilities / Net Worth)

(6.24)

(18.74)

4.10

 

 

 

 

Fixed Assets to Networth

(Net Fixed Assets / Networth)

(9.31)

(45.39)

10.67

 

 

 

 

Interest Coverage Ratio

(PBIT / Financial Charges)

0.83

0.58

0.64

 

PROFITABILITY RATIOS

 

PARTICULARS

 

 

31.03.2017

31.03.2016

31.03.2015

Net Profit Margin

[(PAT / Sales) * 100]

%

(3.89)

(5.92)

(5.41)

 

 

 

 

 

Return on Total Assets

((PAT / Total Assets) * 100)

%

(5.15)

(7.77)

(7.25)

 

 

 

 

 

Return on Investment (ROI)

((PAT / Networth) * 100)

%

78.51

541.38

(124.53)

 

SOLVENCY RATIOS

 

PARTICULARS

 

31.03.2017

31.03.2016

31.03.2015

Current Ratio

(Current Assets / Current Liabilities)

0.91

1.20

1.44

 

 

 

 

Quick Ratio

((Current Assets – Inventories) / Current Liabilities)

0.39

0.60

0.77

 

 

 

 

G-Score Ratio Financial

(Networth / Total Assets)

(0.07)

(0.01)

0.06

 

 

 

 

G-Score Ratio Debt

(Debts / Equity Capital)

36.62

37.25

27.86

 

 

 

 

G-Score Ratio Liquidity

(Total Current Assets / Total Current Liabilities)

0.91

1.20

1.44

Total Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term debts

 

 

STOCK PRICES

 

Face Value

INR 10/-

Market Value

INR 35.35/-

 

 

FINANCIAL ANALYSIS

[all figures are INR Million]

 

DEBT EQUITY RATIO

 

Particular

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Share Capital

420.825

420.825

420.825

Reserves & Surplus

725.525

(680.542)

(1629.117)

Share Application money pending allotment

0.000

0.000

0.000

Net worth

1146.350

(259.717)

(1208.292)

 

 

 

 

Long Term borrowings

10478.843

9061.811

11933.984

Short Term borrowings

568.048

568.698

1105.199

Current Maturities of Long term debt

676.620

6047.095

2371.454

Total borrowings

11723.511

15677.604

15410.637

Debt/Equity ratio

10.227

(60.364)

(12.754)

 

 

 

YEAR-ON-YEAR GROWTH

 

Year on Year Growth

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

26407.336

23754.835

24371.825

 

 

(10.045)

2.597

 

 

 

 

 

NET PROFIT MARGIN

 

Net Profit Margin

31.03.2015

31.03.2016

31.03.2017

 

INR In Million

INR In Million

INR In Million

Sales

26407.336

23754.835

24371.825

Profit

(1427.555)

(1406.067)

(948.575)

 

(5.41)%

(5.92)%

(3.89)%

 

 

 

ABRIDGED BALANCE SHEET – (CONSOLIDATED)

 

SOURCES OF FUNDS

31.03.2017

31.03.2016

31.03.2015

 

 

 

 

I.              EQUITY AND LIABILITIES

 

 

 

(1)Shareholders' Funds

 

 

 

(a) Share Capital

420.825

420.825

420.825

(b) Reserves & Surplus

(1690.997)

(670.197)

723.041

(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)

(1270.172)

(249.372)

1143.866

 

 

 

 

(3) Non-Current Liabilities

 

 

 

(a) long-term borrowings

11933.984

9061.811

13700.093

(b) Deferred tax liabilities (Net)

0.000

0.000

0.000

(c) Other long term liabilities

72.820

68.674

73.463

(d) long-term provisions

66.098

62.109

64.208

Total Non-current Liabilities (3)

12072.902

9192.594

13837.764

 

 

 

 

(4) Current Liabilities

 

 

 

(a) Short term borrowings

1105.199

568.698

568.048

(b) Trade payables

3040.861

2472.620

3137.719

(c) Other current liabilities

3222.623

6179.516

877.916

(d) Short-term provisions

176.048

95.427

118.517

Total Current Liabilities (4)

7544.731

9316.261

4702.200

 

 

 

 

TOTAL

18347.461

18259.483

19683.830

 

 

 

 

II.          ASSETS

 

 

 

(1) Non-current assets

 

 

 

(a) Fixed Assets

 

 

 

(i) Tangible assets

10935.285

11474.270

11908.424

(ii) Intangible Assets

1.751

3.220

5.942

(iii) Capital work-in-progress

308.404

311.677

320.296

(iv) Intangible assets under development

0.000

0.000

0.000

(b) Non-current Investments

134.053

134.053

135.707

(c) Deferred tax assets (net)

0.000

0.000

0.000

(d)  Long-term Loan and Advances

29.531

142.167

423.426

(e) Other Non-current assets

0.000

0.000

0.000

Total Non-Current Assets

11409.024

12065.387

12793.795

 

 

 

 

(2) Current assets

 

 

 

(a) Current investments

0.000

0.000

0.000

(b) Inventories

3922.985

2934.616

3128.081

(c) Trade receivables

1208.398

1567.112

1036.538

(d) Cash and cash equivalents

846.777

482.022

552.245

(e) Short-term loans and advances

811.939

1094.526

1925.369

(f) Other current assets

148.338

115.820

247.802

Total Current Assets

6938.437

6194.096

6890.035

 

 

 

 

TOTAL

18347.461

18259.483

19683.830

 

 

PROFIT & LOSS ACCOUNT– (CONSOLIDATED)

 

 

PARTICULARS

31.03.2017

31.03.2016

31.03.2015

 

SALES

 

 

 

 

Income

26564.269

23862.903

26409.838

 

Other Income

49.925

99.043

77.089

 

TOTAL

26614.194

23961.946

26486.927

 

 

 

 

 

Less

EXPENSES

 

 

 

 

Cost of Materials Consumed

17869.258

16695.034

19016.467

 

Purchases of Stock-in-Trade

179.930

143.820

391.804

 

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

(786.764)

273.739

(27.074)

 

Excise Duty

2085.581

0.000

0.000

 

Exceptional Items

98.422

0.000

0.000

 

Employees benefits expense

1243.384

1170.059

1108.871

 

Other expenses

4456.222

4528.890

4830.820

 

TOTAL

25146.033

22811.542

25320.888

 

 

 

 

 

Less

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

1468.161

1150.404

1166.039

 

 

 

 

 

Less

FINANCIAL EXPENSES

1844.195

1882.374

1834.757

 

 

 

 

 

 

PROFIT / (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION

(376.034)

(731.970)

(668.718)

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION

644.766

668.151

761.321

 

 

 

 

 

 

PROFIT/ (LOSS)  BEFORE TAX

(1020.800)

(1400.121)

(1430.039)

 

 

 

 

 

Less

TAX

0.000

(6.409)

0.000

 

 

 

 

 

 

PROFIT/ (LOSS)  AFTER TAX

(1020.800)

(1393.712)

(1430.039)

 

 

 

 

 

 

Earnings / (Loss) Per Share (INR)

(24.26)

(33.12)

(35.57)

 

 

LEGAL CASE

 

HIGH COURT OF GUJARAT

 

TAX APPEAL No. 434 of 2016

 

Status : PENDING

( Converted from : O/ST/976/2016 )

CCIN No : 001092201600434

 

 

Last Listing Date:

09/06/2017

Coram
  • HONOURABLE MR.JUSTICE AKIL KURESHI
  • HONOURABLE MR.JUSTICE BIREN VAISHNAV

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS, SURAT-1

JAIMIN A GANDHI for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

S.NO.

Name of the Respondant

Advocate On Record

1

GARDEN SILK MILLS LTD

MR PARESH M DAVE for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

 

Presented On

: 13/04/2016

Registered On

: 10/05/2016

Bench Category

: DIVISON BENCH

District

: SURAT

Case Originated From

: THROUGH HIS/HER/THEIR ADVOCATE

Listed

: 11 times

StageName

: FOR FINAL HEARING

 

Classification

·         DB - OJ - TAX APPEAL - CENTRAL EXCISE ACT, 1944 - UNDER SECTION 35G

Act

·         CENTRAL EXCISES AND SALT ACT, 1944

 

Office Details

 

S. No.

Filing Date

Document Name

Advocate Name

Court Fee on Document

Document Details

1

13/04/2016

APPEARANCE NOTE

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

0

MR RJ OZA(520) for P:1

2

13/04/2016

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

50

MR RJ OZA(520), for P:1

3

10/05/2016

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MR RJ OZA ADVOCATE
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2

MR RJ OZA(520) for P:1

4

30/06/2016

VAKALATNAMA

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5

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5

22/07/2016

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JAIMIN A GANDHI ADVOCATE
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JAIMIN A GANDHI(8065) for P:1

Court Proceedings

 

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1

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6

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6

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7

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Available Orders

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

1

TAX APPEAL/434/2016

·         HONOURABLE MR.JUSTICE S.R.BRAHMBHATT 

·         HONOURABLE MR.JUSTICE A.Y. KOGJE

13/06/2016

N

ORDER

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Y

 

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ORDINARY

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Delivered

ORDER

 

 

HIGH COURT OF GUJARAT

 

TAX APPEAL No. 441 of 2016

 

Status : PENDING

( Converted from : O/ST/1343/2016 )

CCIN No : 001092201600441

 

 

Last Listing Date:

08/03/2018

Coram
  • HONOURABLE MR.JUSTICE M.R. SHAH
  • HONOURABLE MR.JUSTICE A.Y. KOGJE

S.NO.

Name of the Petitioner

Advocate On Record

1

COMMISSIONER OF CENTRAL EXCISE AND CUSTOMS, SURAT-I

JAIMIN A GANDHI for: Appellant(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

S.NO.

Name of the Respondant

Advocate On Record

1

GARDEN SILK MILLS LTD

RULE NOT RECD BACK for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1
RULE SERVED for :Opponent(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

 

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Case Originated From

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Listed

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Classification

·         DB - OJ - TAX APPEAL - CENTRAL EXCISE ACT, 1944 - UNDER SECTION 35G

Act

·         CENTRAL EXCISE RULES, 1944

 

Other Forums

 

S.No.

CASEDETAILS

TRIBUNAL REFERRENCE

ORDER PASSED BY

JUDGEMENT DATE

PLACE

1

A/11807/2015

CUSTOMS EXCISE AND SERVICE APPELLATE TRIBUNAL, WEST ZONAL BENCH AHMEDABAD

PRESIDENT/MEMBER

08/12/2015

SURAT

Office Details

 

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Document Details

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

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4

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for PETITIONER(s) http://gujarathc-casestatus.nic.in/gujarathc/images/arrow1.png 1

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07/06/2016

6

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5

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Available Orders

 

S. No.

Case Details

Judge Name

Order Date

CAV

Judgement

Questions

Transferred

1

TAX APPEAL/441/2016

·         HONOURABLE MR.JUSTICE S.R.BRAHMBHATT 

·         HONOURABLE MR.JUSTICE A.Y. KOGJE

07/06/2016

N

ORDER

-

Y

 

Certified Copy

 

 

S. No.

ApplicantName

ApplicationType

Application Date

UOL Number

Order Date

Notify Date

Delivery Date

Status

Nature Of Document

1

MR RJ OZA

ORDINARY

08/06/2016

O/19606/2016

07/06/2016

09/06/2016

10/06/2016

Delivered

ORDER

 

 

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

No

8

Designation of contact person

No

9

Promoter’s background

Yes

10

Date of Birth of Proprietor / Partners / Directors

Yes

11

Pan Card No. of Proprietor / Partners

No

12

Voter Id Card No. of Proprietor / Partners

No

13

Type of business

Yes

14

Line of Business

Yes

15

Export/import details (if applicable)

No

16

No. of employees

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

Yes

33

Market information

--

34

Payments terms

No

35

Negative Reporting by Auditors in the Annual Report

No

 

Note: The Registered Office of the Company has been shifted from its existing location, outside Sahara Gate, Surat 395010 to new location, Tulsi Krupa Arcade, 1st Floor, Near Aai Mata Chowk, Puna - Kumbharia, Road, Dumbhal, Surat – 395010, Gujarat, India (w.e.f. 2013)

 

 

REVIEW OF OPERATIONS:

 

The Company’s standalone gross sales for the year 2016-17 (FY17) was higher at INR 26457.400 Million as compared to INR 25673.100 Million for the previous year.

 

Operating EBITDA (earnings before interest, tax and depreciation) for FY17 increased to INR 1543.500 Million as compared to INR 1028.200 Million in the previous year, registering a growth of 50.1%. Operating profit margins (excluding other income) improved from 3.91% in FY 2016 to 5.85% in FY17 largely owing to an improved product mix in their yarn activity and slightly lower potheyr costs. Utilization levels in their continuous polymerization division also improved to the highest in 4 years resulting in improved sales and operating profits.

 

Their emphasis on increased product differentiation, along with better operational efficiencies, improved utilisation, timely exports and careful working capital management helped us to remain competitive and improve their profitability at operating level.

 

Better working capital management helped the Company to reduce the interest cost in FY17 from INR 1772.500 Million to INR 1748.900 Million.

 

With better capacity utilization, the overall production of chips and polyester melt was higher at 277,714 MT during FY17 as compared to 271,649 MT in FY16. Sale of chips for FY17 was higher at 142,254 MT compared to 127,779 MT in the previous year. In value terms also, the sale of chips for FY17 was higher at INR 9209.100 Million as compared to INR 8455.700 Million in the previous year.

 

The volume of sale of polyester filament yarn (PFY) including processed yarn declined at 148,393 MT in FY17 as compared to 154,111 MT in the previous year. Sale of yarn in value terms however declined marginally at INR 15028.400 Million against INR 15190.100 Million in the previous year. Margins improved significantly in processed yarn while margins in spun yarn remained under some pressure.

 

They achieved very high performance levels in their polymerization plants leading to historically low heating costs and highest first quality percentage on record. Despite constantly challenging the yarn divisions with new products to be optimized, efficiency levels were very high at all their spinning and processed yarn divisions during FY17. Cost of potheyr and fuel reduced on account of slightly lower coal prices compared to the previous year and improvements made to their thermic-fluid heating systems.

 

The Company maintained its price and product leadership in the polyester weaving division during FY17. Grey (woven) cloth production in FY17 was INR 22.917 Million meters as compared to 22.331 Million meters in the previous year. They achieved higher sale of grey fabrics of INR 733.000 Million in FY17 as compared to INR 699.100 Million in the previous year. Margins remained stable during the year.

 

The finished fabrics segment contributed INR 1031.000 Million in total sales for FY17 as compared to INR 1144.200 Million in the previous year. Sales were lower mainly on account of financial distress faced by some of their large and prestigious customers leading to lower purchases on their part. The currency demonetization in November 16 also impacted retail-level sales for over 2 months. Yet, margins improved in FY17.

 

Despite a competitive and challenging global environment, they achieved higher income from export at INR 4082.300 Million in FY17 as compared to INR 3422.500 Million in the previous year, an increase of about 19% on Y-o-Y basis.

 

CHANGE IN THE NATURE OF BUSINESS, IF ANY:

 

Subject is one of India’s leading man-made fibre-based textile companies. It is a vertically integrated manufacturer of a wide range of Polyester Chips, Polyester Filament Yarns (PFY), Preparatory Yarns, Woven (Grey) Fabric as well as Dyed and Printed Sarees and Dress Materials. During the year under review, there was no change in the nature of business of the Company.

 

OVERVIEW OF THE ECONOMY:

 

According to the World Economic Outlook (IMF) global GDP growth was 3.1% in 2016 much weaker than the long-term trend rate of 3.5%. Yet, with a significant, broad-based recovery underway it is projected to match or exceed the long-term trend in both 2017 and 2018.

 

The past half-decade has seen a vulnerable world economy with sub-par growth despite significant policy stimulus. Low productivity growth in advanced countries, poor global investment, battered commodity markets, weak global trade, high income inequality and inward-looking politics were both contributors and symptoms of the weakness.

 

Fortunately, the global outlook has significantly improved for developed countries, emerging markets, commodity exporters and importers alike. On the back of low global interest rates buoyant financial markets are discounting a cyclical recovery in manufacturing, investment, trade and corporate earnings among other things.

 

Mainly owing to a weak second half, India’s GDP growth slowed markedly to 7.1% in FY17 compared to 8.0% in FY16. The currency demonetization exercise seems to have had a significant impact on growth and incomes, especially in the unorganized industrial and agricultural sectors as well as the labtheir-intensive construction sector which in turn have adversely affected industries that depend on these sectors. The impact, however, is fading quickly and is widely expected to be temporary.

 

Political stability, a strong emphasis on building India’s road, rail and power infrastructure, improved ease of doing business, and excellent macroeconomic conditions have been the hallmark of the current central government which bodes well for the country’s economy. India, being heavily dependent on oil-imports, gained an unexpectedly large bounty with international oil prices halving since the new government came to power. This has dramatically lowered inflation as well the fiscal and current account deficits.

 

A concern that has been highlighted by international rating agencies is the worsening outlook for state deficits given populist tendencies exemplified by farm loan waivers. Yet, increasing purchasing power in the hands of weak segments of society will increase consumption and is an indirect stimulus to the textile industry. The rural economy is vital to the polyester textile industry so improving rural purchasing power bodes well for textiles.

 

Retail inflation is at a record low which will allow India to reduce its interest rates which are high by international standards. This will boost much-needed investment, especially as abysmal capacity utilization levels in Indian industry begin to normalise. It will also lower interest costs for borrowing individuals, firms and companies thus boosting sentiment in both markets and the broader economy. Given the significant leverage in the textile industry lower interest rates would be a direct boost for their sector.

 

The Goods and Services Tax (GST) to be launched w.e.f. 1st July 2017 is a greatly anticipated reform which is expected to contribute to growth in the medium term. The GST will replace various taxes on goods and services levied by the central government and states by a single tax on value added. It will thus reduce tax cascading, facilitate a common national market, enctheirage voluntary tax compliance, reduced tax collection costs, support investment and generally improve India’s competitiveness.

 

Yet, it appears likely that the downstream textile trade, which is still dominated by manufacturers, traders and retailers in the unorganized sector, will be affected by the compliances required by the new tax in the short-term. This will consequently impact demand for upstream polyester chip and yarn makers as well.

 

BUSINESS OUTLOOK:

 

The outlook for industry and the Company in the near term can be viewed with cautious optimism.

 

After many years of poor rural demand, the industry is widely expecting improved polyester demand on the back of a good monsoon and greater fiscal transfers to rural areas this year. Resumption of high growth in the PFY industry is widely expected to continue once the unorganized downstream trade fully adjusts to and complies with GST. This is expected to improve utilization levels and probably margins as well at the yarn level. Regarding chips, however, given the significant overcapacity, margins are expected to remain under pressure for some more time.

 

After the industry adjusts to GST, over the next two years we expect business conditions to improve for their Company owing to the generally higher utilisation levels and better margins. Significant industry expansions in circular knitting capacities have helped and will continue to support growth.

 

The Company appears well positioned in its specialty chip, yarn and fabric businesses. The emphasis is on expanding their market share in differentiated products and continuing to improve their ability to support individual customers’ needs.

 

The Company has emerged as a leader in specialty chips for polyester film industry as well as in cationic, fine denier, melange, mother yarn, nylon and spandex-based yarns.

 

After having shifted the draw warping department at Vareli to form a single department at Jolva we have reduced energy and overhead costs. The sizing division is also in the process of being shifted from Vareli to Jolva for the same reason.

 

The Company is in the process of identifying high-quality yarn producers who have idle capacities which it can use to expand the market for its products say through a job-work relationship.

 

The Union Ministry of Textiles, which has set a target of doubling textile exports in 10 years, plans to enter into bilateral agreements with Africa and Australia along with working on a new textile policy to promote value addition, apart from finalizing guidelines for the revised Textile Up gradation Fund Scheme (TUFS). To promote apparel exports, 12 locations have been approved by the government to set up apparel parks for exports. As per the twelfth Five Year Plan, the Government plans to provide a budgetary support of USD 4.25 billion to textiles. Free trade with ASEAN countries and a proposed agreement with European Union will also help boost exports.

 

The Indian government has come up with a number of export promotion policies for the textiles sector. It has also allowed 100 per cent FDI in the Indian textiles sector under the automatic route.

 

 

UNSECURED LOANS:

 

Particulars

31.03.2017

(INR in Million)

31.03.2016

(INR in Million)

Long-term Borrowings

 

 

Term Loans from foreign banks

57.104

75.906

Total

57.104

75.906

 

 

INDEX OF CHARGE:

 

Charges Registered

SNo

SRN

Charge Id

Charge Holder Name

Date of Creation

Date of Modification

Amount

Address

1

G76634526

100153860

BANK OF BARODA

19/01/2018

-

28810600000.0

Surat main brBhagatalaoSURATGJ395003IN

2

C52713104

10567924

IDBI BANK LIMITED

10/04/2015

-

323300000.0

IDBI Tower, WTC Complex, Cuffe ParadeColabaMUMBAIMH400005IN

3

C48851919

10558752

Bank of Baroda

09/03/2015

-

823300000.0

Surat Main Br.BhagatalaoSURATGJ395003IN

4

C39218789

10541026

Bank of Baroda

24/12/2014

-

3021200000.0

Bhaga Talao Main Br.Bhaga TalaoSURATGJ395003IN

5

B60426277

10382058

ALLAHABAD BANK

27/09/2012

27/09/2012

407000000.0

NANPURA BRANCH,NANPURASURATGJ395001IN

6

B60425568

10382054

ALLAHABAD BANK

27/09/2012

27/09/2012

352900000.0

NANPURA BRANCH,NANPURASURATGJ395001IN

7

B60435864

10382049

ALLAHABAD BANK

27/09/2012

27/09/2012

125500000.0

NANPURA BRANCH,NANPURASURATGJ395001IN

8

B60460581

10381067

BANK OF INDIA

24/09/2012

26/09/2012

189700000.0

SURAT MID CORPORATE BRANCH, BOI BLDG, 1ST FLOORNEAR BSNL OFFFICE, GHOD DOD ROAD,SURATGJ395001IN

9

B60949351

10380405

BANK OF BARODA

24/09/2012

26/09/2012

1185500000.0

BHAGATALAV, KANPITH,SURATGJ395003IN

10

B60459625

10381093

BANK OF INDIA

24/09/2012

26/09/2012

64600000.0

SURAT MID CORPORATE BRANCH, BOI BLDG, 1ST FLOORNEAR BSNL OFFFICE, GHOD DOD ROAD,SURATGJ395001IN

 

 

CONTINGENT LIABILITIES:

 

I)               Disputed liabilities for Excise Duty not acknowledged as debts INR 721.784 Million (Previous year INR 347.023  Million)

II)             Disputed liabilities for Income – Tax not acknowledge as debts Nil (Previous year INR 13.313 Million)

III)            Disputed liabilities for Gujarat Sales Tax not acknowledged as debts INR 5.818 Million (Previous year INR 7.051 Million)

IV)           Counter-guarantees to Banks against guarantees issued to third parties INR 0.050 Million (Previous year INR 0.050 Million)

V)            Foreign bills Discounted with Banks INR 326.193 Million (Previous Year INR 7.482 Million).

VI)           Unpaid dividend on 0.001% Optionally Convertible Cumulative Preference Share (now converted into equity shares) not acknowledged as debts INR 0.010 Million (Previous Year INR 0.010 Million).

VII)          Custom Duty on Raw Material Imported under advance license against which export obligation is to be fulfilled is INR 0.372 Million (Previous year INR 14.369 Million).

 

STANDALONE UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST DECEMBER, 2017

 

 (INR In Million)

Particulars

Quarter Ended

Nine Months Ended

 

31.12.2017

30.09.2017

31.12.2017

 

(Unaudited)

31.12.2017

(Unaudited)

INCOME FROM OPERATIONS

 

 

 

Net Sales

8425.614

7084.577

23232.574

Other Operating Income

23.403

9.407

56.834

Total Income

8449.017

7093.984

23289.408

 

 

 

 

EXPENSES

 

 

 

Cost of materials consumed

6178.309

4611.510

15823.040

Purchase of Stock in Trade

181.874

200.509

412.207

Changes in inventories of finished goods and work-in-progress

(65.597)

513.811

457.013

Excise duty on sales

0.000

0.000

699.322

Employee benefits expense

329.454

366.397

1021.158

Finance Costs

458.765

464.259

1417.155

Depreciation and Amortization expenses

164.406

162.208

486.691

Other Expenditure

1221.888

1149.151

3650.031

Total Expenses

8469.099

7467.845

23966.617

Profit / (Loss) before exceptional items and tax

(20.082)

(373.861)

(677.209)

Exceptional Items

0.000

(2.532)

0.000

Profit / (Loss) before Tax

(20.082)

(376.393)

(677.209)

Tax Expense

0.000

0.000

0.000

Profit / (Loss) after Tax

(20.082)

(376.393)

(677.209)

Other Comprehensive Income

 

 

 

Items that will not be reclassified to profit or loss

43.065

(19.720)

40.455

Total other comprehensive Income

22.983

(396.113)

(636.754)

Paid-up Equity Share Capital (Face value INR 10/- per share)

420.825

420.825

420.825

Other equity excluding revaluation reserves

--

--

--

Earnings per Share (EPS) - INR

 

 

 

Basic and diluted

(0.48)

(8.94)

(16.09)

 

Notes:

 

  • The above results have been reviewed by the Audit Committee and approved by the Board of Directors at their respective meetings held on 2nd February, 2018.

 

  • The Company has adopted Indian Accounting Standards ('Ind AS') notified by the Ministry of Corporate Affairs with effect from 1st April, 2017 (being transition date of 1st April, 2016). Accordingly, the above results have been prepared in accordance with Indian Accounting Standards ('Ind AS') notified under Section 133 of the Companies Act, 2013, read together with the Companies (Indian Accounting Standards) Rules, 2015 (as amended).

 

  • The Ind AS financial results and financial information for the quarter and nine months ended 31st December, 2016 have not been subjected to any limited review or audit as per exemption given in SEBI circular No.CIR/CFD/FAC/62/2016 dated 5th July, 2016. However, the Management has exercised necessary due deligence to ensure the true and fair presentation of the figures. 

 

  • Figures for the previous period have been reclassified and restated wherever necessary to make them Ind AS compliant and comparable with that of the current period. 

 

  • The Company continues to be engaged with its lenders towards a debt restructuring. 

 

  • The Company is engaged in the business of 'Textiles' and therefore has only one reportable segment in accordance with Ind AS 108 'Operating Segments'.

 

  • The Limited Review, as required under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 has been completed and the related Report does not have any impact on the above 'Results and Notes' for the Quarter and Nine Months ended 31st December, 2017 which needs to be explained.

 

 

FIXED ASSETS

 

  • Freehold Land
  • Building
  • Plant and Machinery
  • Furniture and Fixture
  • Motor Vehicle
  • Office Equipment
  • Computer and Data Processing Units
  • Laboratory Equipment
  • Electrical Installation and Equipment

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No 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

INR

US Dollar

1

INR 64.98

UK Pound

1

INR 90.95

Euro

1

INR 79.51

 

 

INFORMATION DETAILS

 

Information Gathered by :

PRT

 

 

Analysis Done by :

NYT

 

 

Report Prepared by :

SUD

 

 

SCORE FACTORS

 

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

YES

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

NO

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

YES

--OTHER MERIT FACTORS

YES/NO

YES

 

RATING EXPLANATIONS

 

Credit Rating

Explanation

Rating Comments

A++

Minimum Risk

Business dealings permissible with minimum risk of default

A+

Low Risk

Business dealings permissible with low risk of default

A

Acceptable Risk

Business dealings permissible with moderate risk of default

B

Medium Risk

Business dealings permissible on a regular monitoring basis

C

Medium High Risk

Business dealings permissible preferably on secured basis

D

High Risk

Business dealing not recommended or on secured terms only

NB

New Business

No recommendation can be done due to business in infancy stage

NT

No Trace

No recommendation can be done as the business is not traceable

 

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

 

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 are as follows:

 

·         Financial condition covering various ratios

·         Company background and operations size

·         Promoters / Management background

·         Payment record

·         Litigation against the subject

·         Industry scenario / competitor analysis

·         Supplier / Customer / Banker review (wherever available)

 

 

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.