|
|
|
MIRA INFORM REPORT
|
Report No. : |
487629 |
|
Report Date : |
23.01.2018 |
IDENTIFICATION DETAILS
|
Name : |
VARDHMAN TEXTILES
LIMITED (w.e.f. 05.09.2006) |
|
|
|
|
Formerly Known
As : |
MAHAVIR SPINNING
MILLS LIMITED |
|
|
|
|
Registered
Office : |
Chandigarh Road, Ludhiana – 141010, Punjab |
|
Tel. No.: |
91-161-2670707 |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
08.10.1973 |
|
|
|
|
Com. Reg. No.: |
16-003345 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
INR 559.288 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17111PB1973PLC003345 |
|
|
|
|
IEC No.: |
1288034113 |
|
|
|
|
GSTIN/UIN : |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
Not Available |
|
|
|
|
PAN No.: [Permanent Account No.] |
AABCM4692E |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The
company is engaged in manufacturing of Cotton yarn, Synthetic yarn and woven
fabric. [Registered Activity] |
|
|
|
|
No. of Employees
: |
21,206 (Approximately) |
|
MIRA’s Rating : |
A+ |
|
Credit Rating |
Explanation |
Rating Comments |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
Maximum Credit Limit : |
USD 114000000 |
|
|
|
|
Status : |
Excellent |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of “Vardhman group”. The company was incorporated in the year 1973. It is a manufacturer of Cotton Yarn, Synthetic Yarn and Woven Fabrics. As per the financial record of 2017, the revenue of the company has increased by 2.03% along with fair profit margin of 17.49%. The strong financial profile of the company marked by healthy networth base along negligible debt level. The company has decent earning per share (EPS) of INR 163.67 against the face value (FV) of INR 10. Rating takes into consideration Vardhman Group’s strong and diversified business risk profile, especially in the textile industry and its healthy operating capability. The company has its share price trading at around INR 1488.25 against the face value (FV) of INR 10 on BSE as on 20th January, 2018. Rating also derives strength from company’s established track record of business. However, rating strengths are partially offset by its large working capital requirement, modest market position in the steel business, and moderate vulnerability of its operating profitability to volatility in input prices. Business is active. Payments are reported to be regular. In view of aforesaid, the company can be considered good 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
|
Country Name |
Previous Rating (30.06.2017) |
Current Rating (30.09.2017) |
|
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 |
INDIA RATING |
|
Rating |
Commercial Paper= A1+ |
|
Rating Explanation |
Very strong degree of safety and carry
lowest credit risk. |
|
Date |
31.10.2017 |
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
31-03-2016.
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 23.01.2018
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.
LOCATIONS
|
Registered / Corporate Office : |
Chandigarh Road, Ludhiana – 141010, Punjab, India |
|
Tel. No.: |
91-161-2662543-47/
2670707/ 09/ 2228943-48 |
|
Fax No.: |
91-161-2220766/ 2601048,
2602710, 2222616 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plant Location : |
· Arihant Spinning Mills Industrial Area, Malerkotla – 148023, Punjab, India · Anant Spinning Mills New Industrial Area, Mandideep, Bhopal – 462046, Madhya Pradesh, India · Arisht Spinning Mills Sai Road, Baddi, District: Solan – 173205, Himachal Pradesh, India · Auro Spinning Mills Sai Road, Baddi, District: Solan – 173205, Himachal Pradesh, India · Auro Dyeing (Unit-I & II) Sai Road, Baddi, District: Solan – 173205, Himachal Pradesh, India · Auro Weaving Mills Sai Road, Baddi, District: Solan – 173205, Himachal Pradesh, India · Auro Textiles (Unit-I & II) Sai Road, Baddi, District: Solan – 173205, Himachal Pradesh, India · Mahavir Spinning Mills (Textile Division) Sai Road, Baddi, District: Solan – 173205, Himachal Pradesh, India · Vardhman Spinning Mills Sai Road, Baddi, District: Solan – 173205, Himachal Pradesh, India · Vardhman Spinning and General Mills (Unit-I&II) Chandigarh Road, Ludhiana – 141010, Punjab, India · Vardhman Fabrics Budhni, District: Sehore, Madhya Pradesh, India · Vardhman Yarns Satlapur, District: Raisen, Madhya Pradesh, India · Vardhman Fabrics (Power Division) Budhni, District: Sehore, Madhya Pradesh, India · Vardhman Yarns (Power Division) Satlapur, District: Raisen, Madhya Pradesh, India |
|
|
|
|
Branch Offices : |
· P-22, 3rd Floor, Flat No. 6, C.I.T. Road, Scheme IV, Kolkata – 700014, West Bengal, India · Chandigarh Road, Ludhiana – 141010, Punjab, India · 314, Solaris II, Opposite L&T Gate No. 6, Saki Vihar Road, Andheri (East), Mumbai – 400072, Maharashtra, India · 504, Dalamal House, Nariman Point, Mumbai – 400021, Maharashtra, India · Vardhman Fabrics, Marketing Office, Chandigarh Road, Ludhiana – 141010, Punjab, India · 309-310, Surya Kiran Building, 19, Kasturba Gandhi Marg, New Delhi – 110001, India · 377-B, Muthuswami Industrial Complex, Palladam Road, Tirupur – 638604, Tamilnadu, India · 1st Floor, Palm Court, Opposite Management Development Institute, MG Road, Sector-16, Gurugram – 122001, Haryana, India |
DIRECTORS
AS ON 31.03.2017
|
Name : |
Mr. Shri Paul Oswal |
|
Designation : |
Managing
Director |
|
Address : |
Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India |
|
Date of Birth/Age : |
71 Years |
|
Qualification : |
M. Com. |
|
Date of Appointment : |
08.10.1973 |
|
DIN No.: |
00121737 |
|
|
|
|
Name : |
Mr. Neeraj Jain |
|
Designation : |
Whole-time Director |
|
Address : |
B-19-167/1, Col. Gurdial Singh Road, Civil Lines, Ludhiana – 141001,
Punjab, India |
|
Date of Birth/Age : |
09.10.1967 |
|
Qualification : |
B.Com, C.A. |
|
Date of Appointment : |
31.03.1010 |
|
DIN No.: |
00340459 |
|
|
|
|
Name : |
Mr. Sachit Jain |
|
Designation : |
Whole-time Director |
|
Address : |
Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001,
Punjab, India |
|
Date of Birth/Age : |
08.07.1966 |
|
Qualification : |
B. Tech., MBA |
|
Date of Appointment : |
13.06.2014 |
|
DIN No.: |
00746409 |
|
|
|
|
Name : |
Mrs. Suchita Jain |
|
Designation : |
Whole-time Director |
|
Address : |
Auro Mirra Bhawan, 2722, Gurdev Nagar, Pakhowal Road, Ludhiana – 141001, Punjab, India |
|
Date of Birth/Age : |
20.03.1968 |
|
Qualification : |
M.Com |
|
Date of Appointment : |
29.01.2010 |
|
DIN No.: |
00746471 |
|
|
|
|
Name : |
Mr. Devendrabhushan Jain |
|
Designation : |
Director |
|
Address : |
Rattan Kunj, 7 Bunglows Road, Vesava (Versova), Andheri (West), Near
Nana Nani Park, Mumbai – 400061, Maharashtra, India |
|
Date of Appointment : |
24.09.2014 |
|
DIN No.: |
06911676 |
|
|
|
|
Name : |
Mr. Prafulbhai Anubhai Shah |
|
Designation : |
Director |
|
Address : |
9, Pathik, Shitalbag, Paldi, Ahmedabad – 380007, Gujarat, India |
|
Date of Birth/Age : |
20.01.1938 |
|
Qualification : |
B.Com, B.S.C. (Eco.) – London |
|
Date of Appointment : |
24.09.2014 |
|
DIN No.: |
00040837 |
|
|
|
|
Name : |
Mr. Rajender Mohan Malla |
|
Designation : |
Additional Director |
|
Address : |
C-4/19, Safdarjung Development Area, Hauz Khas, New Delhi – 110016,
India |
|
Date of Appointment : |
05.08.2015 |
|
DIN No.: |
00136657 |
|
|
|
|
Name : |
Mr. Ashok Kumar Kundra |
|
Designation : |
Director |
|
Address : |
House No. 1138, Sector 44-B, Chandigarh – 160047, India |
|
Date of Appointment : |
24.09.2014 |
|
DIN No.: |
00154024 |
|
|
|
|
Name : |
Mr. Darshan Lal Sharma |
|
Designation : |
President and Executive Director |
|
Address : |
H. No. B-Xx-770/2, Gurdev Nagar, Ludhiana – 141001, Punjab, India |
|
Date of Birth/Age : |
10.11.1948 |
|
Qualification : |
B.Sc. (Engg.), M.B.A. |
|
Date of Appointment : |
01.04.2008 |
|
DIN No.: |
00727581 |
|
|
|
|
Name : |
Mr. Subash Khanchand Bijlani |
|
Designation : |
Director |
|
Address : |
J-17, South City - I, Gurugram – 122001, Haryana, India |
|
Date of Birth/Age : |
06.09.1942 |
|
Qualification : |
B. Tech, PGDC in MGT and Finance |
|
Date of Appointment : |
24.09.2014 |
|
DIN No.: |
01040271 |
|
|
|
|
Name : |
Mr. Parampal Singh |
|
Designation : |
Additional Director |
|
Address : |
House No. 351-B, Block-B, Bhai Randhir
Singh Nagar, Ludhiana – 141012, Punjab, India |
|
Date of Appointment : |
27.11.2017 |
|
DIN No.: |
07995388 |
KEY EXECUTIVES
|
Name : |
Mr. Rajeev Thapar |
|
Designation : |
Chief Financial Officer |
|
Address : |
T-2, Moti Nagar, Ludhiana – 141010, Punjab, India |
|
Date of Appointment : |
23.05.2014 |
|
PAN No.: |
ADFPT3478D |
|
|
|
|
Name : |
Mr. Sanjay Gupta |
|
Designation : |
Company Secretary |
|
Address : |
House No. 1883, Sector 32-A, Chandigarh
Road, Ludhiana – 141010, Punjab, India |
|
Date of Appointment : |
01.06.2017 |
|
PAN No.: |
AGIPG3603R |
SHAREHOLDING PATTERN
AS ON December 2017
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
Promoter &
Promoter Group |
35754821 |
62.30 |
|
Public |
21636189 |
37.70 |
|
Grand Total |
57391010 |
100.00 |
Statement showing shareholding pattern of the Promoter
and Promoter Group
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
Individuals/Hindu
undivided Family |
1283095 |
2.24 |
|
S.P. Oswal |
597591 |
1.04 |
|
Shakun Oswal |
138615 |
0.24 |
|
Suchita Jain |
244424 |
0.43 |
|
Soumya Jain |
7203 |
0.01 |
|
Sagrika Jain |
6985 |
0.01 |
|
Shakun Oswal,
Partner, Eastern Trading Company |
53286 |
0.09 |
|
Shri Paul Oswal, Partner,
Amber Syndicate |
77848 |
0.14 |
|
Shri Paul Oswal,
Partner, Northern Trading Company |
74513 |
0.13 |
|
Shri Paul Oswal,
Partner, Paras Syndicate |
82630 |
0.14 |
|
Any Other
(Specify) |
34471726 |
60.06 |
|
Devakar
Investment & Trading Co Private Limited |
6192786 |
10.79 |
|
Flamingo Finance
& Investment Company Limited |
532959 |
0.93 |
|
Ramaniya Finance
& Investment Company Limited |
424234 |
0.74 |
|
Santon Finance
& Investment Company Limited |
456330 |
0.80 |
|
Mahavir Spinning
Mills Private Limited |
98944 |
0.17 |
|
Vardhman Holding
Limited |
14359870 |
25.02 |
|
VTL Investment
Limited |
1003473 |
1.75 |
|
Adishwar
Enterprises LLP |
11403130 |
19.87 |
|
Sub Total A1 |
35754821 |
62.30 |
|
A=A1+A2 |
35754821 |
62.30 |
Statement showing shareholding pattern of the Public
shareholder
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
Mutual Funds/ |
8467023 |
14.75 |
|
DSP Blackrock Tax
Saver Fund |
1797809 |
3.13 |
|
HDFC Trustee Company
Limited-A/C HDFC Mid Cap Opportunities Fund |
1488756 |
2.59 |
|
Reliance Emergent
India Limited |
1564209 |
2.73 |
|
Templetion India
Income Equity Fund |
1920855 |
3.35 |
|
Uti-Dividend
Yeild Fund |
651068 |
1.13 |
|
Alternate
Investment Funds |
18720 |
0.03 |
|
Foreign Portfolio
Investors |
5901153 |
10.28 |
|
Franklin
Templeton Investment Fund |
1744600 |
3.04 |
|
Financial
Institutions/ Banks |
59352 |
0.10 |
|
Insurance
Companies |
31575 |
0.06 |
|
Any Other
(specify) |
75 |
0.00 |
|
Bank Foreign |
75 |
0.00 |
|
Sub Total B1 |
14477898 |
25.23 |
|
Central
Government/ State Government(s)/ President of India |
1717 |
0.00 |
|
Sub Total B2 |
1717 |
0.00 |
|
Individual share
capital upto INR 0.200 million |
4099319 |
7.14 |
|
Individual share capital
in excess of INR 0.200 million |
2074162 |
3.61 |
|
NBFCs registered
with RBI |
5884 |
0.01 |
|
Any Other
(specify) |
977209 |
1.70 |
|
Clearing Members |
33370 |
0.06 |
|
Bodies Corporate |
494998 |
0.86 |
|
NRI |
217586 |
0.38 |
|
HUF |
160167 |
0.28 |
|
Trusts |
71088 |
0.12 |
|
Sub Total B3 |
7156574 |
12.47 |
|
B=B1+B2+B3 |
21636189 |
37.70 |
BUSINESS DETAILS
|
Line of Business : |
The
company is engaged in manufacturing of Cotton yarn, Synthetic yarn and woven
fabric. [Registered Activity] |
||||
|
|
|
||||
|
Products / Services
: |
|
||||
|
|
|
||||
|
Brand Names : |
Not Available |
||||
|
|
|
||||
|
Agencies Held : |
Not Available |
||||
|
|
|
||||
|
Exports : |
Not Available |
||||
|
|
|
||||
|
Imports : |
Not Available |
||||
|
|
|
||||
|
Terms : |
Not Available |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Customers : |
|
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
No. of Employees : |
21,206 (Approximately) |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
· Allahabad Bank · ICICI Bank Limited · Punjab National Bank · Bank of India · Corporation Bank · IDBI Bank Limited · Canara Bank · Standard Chartered Bank · Exim Bank · Oriental Bank of Commerce ·
HDFC Bank |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
NOTES: Long Term Borrowings Details of security for term loans Term loans from banks are secured by mortgage created or to be created on all the immovable assets of the company, both present and future and hypothecation of all movable assets including movable machinery, machinery parts, tools and accessories and other movable both present and future (except book debts), subject to charges created or to be created in favour of the bankers for securing the working capital limits. Short Term Borrowings Details of security for working capital
borrowings Working capital borrowings from banks are secured by way of hypothecation of entire present and future tangible current assets of the company as well as a second charge on the entire present and future fixed assets of the company. |
|
Auditors : |
|
|
Name : |
S.C. Vasudeva and Company Chartered Accountants |
|
Address : |
New Delhi, India |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries : |
· VMT Spinning Company Limited · Vardhman Acrylics Limited · VTL Investments Limited |
|
|
|
|
Joint Venture : |
· Vardhman Yarns and Threads Limited (upto 31.08.2016) · Vardhman Nisshinbo Garments Company Limited |
|
|
|
|
Associates : |
· Vardhman Spinning and General Mills Limited · Vardhman Special Steels Limited · Vardhman Yarns and Threads Limited (w.e.f 01.09.2016) |
|
|
|
|
Enterprises over which key Management
Personnel and relative of such personnel is able to exercise significant
influence or control : |
· Vardhman Holdings Limited · Vardhman Apparels Limited · Smt. Banarso Devi Oswal Public Charitable Trust · Sri Aurobindo Socio Economic and Management Research Institute · # Adhiswar Enterprises LLP (formerly known as Adinath Investment and Trading Company) · #Devakar Investment and Trading Co. Limited · # *Srestha Holdings Limited · #Santon Finance and Investment Co. Limited · #Flamingo Finance and Investment Co. Limited · #Ramaniya Finance and Investment Co. Limited · #*Marshall Investment and Trading Co. Private Limited · #*Pardeep Mercentile Co. Private Limited · #*Plaza Trading Co. Private Limited · #*Anklesh Investment Private Limited · #*Syracuse Investment and Trading Co. Private Limited · #Amber Syndicate · #Paras Syndicate · #Adinath Syndicate · #Eastern Trading Co. · #Mahavir Spinning Mills Private Limited · #Northern Trading Co. |
|
|
|
|
NOTES: * These companies have been merged into Dewakar Investment and Trading Company Limited during the current year. # No transaction has taken place during the year. |
|
CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital : INR
1000.000 Million
Issued, Subscribed & Paid-up Capital : INR 573.910 Million
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
90000000 |
Equity Shares |
INR 10/- each |
INR 900.000 Million |
|
10000000 |
Redeemable cumulative preference shares |
INR 10/- each |
INR 100.000 Million |
|
|
|
|
|
|
|
Total |
|
INR 1000.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
55928808 |
Equity Shares |
INR 10/- each |
INR 559.288 Million |
|
|
|
|
|
a) Reconciliation of the number of shares and
amount outstanding at the beginning and at the end of the reporting period:
|
Particulars |
As at 31st March, 2017 |
|
|
Equity shares |
Number of Shares |
Amount (In Million) |
|
At the beginning of the reporting period |
63651879 |
636.519 |
|
Own shares held through trust |
(1598741) |
(15.988) |
|
Net issued Share Capital at beginning of reporting period |
62053138 |
620.531 |
|
Add: Issued during the reporting period |
-- |
-- |
|
Less: Buyback during the reporting period (net of 1,36,539 number of shares held through trust) |
(6124330) |
(61.243) |
|
Outstanding at the end of the reporting
period |
55928808 |
559.288 |
b)
Rights,
preferences and restrictions attached to equity shares
The company has one class of equity shares having a par value of INR 10/- each. Each holder of equity shares is entitled to one vote per share. 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 March 31, 2017 the amount of dividend recognised as distributions to equity shareholders is Nil (Previous Year: INR 15 per share).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
c)
Rights,
preferences and restrictions attached to preference shares
The rate of dividend on preference shares will be decided by the Board of Directors as and when issued. Preference shares as and when issued shall have the cumulative right to receive dividend as and when declared and shall have preferential right of repayment of amount of capital.
d)
Shares
held by holding company or its ultimate holding company or subsidiaries or associates
of the holding company or the ultimate holding company in aggregate.
There is no holding /ultimate holding company of the Company.
e)
The Board of Directors of the Company at its meeting held on 24th September 2016 approved the buyback of upto 62,60,869 fully paid up equity shares of INR 10 each, at a price not exceeding INR 1,175 payable in cash, through the Tender Offer route, upto an aggregate amount not exceeding INR 720 crore from the open market through Stock
Exchange(s). During the year, the Company had bought back and extinguished 6260869 Equity Shares of INR 10 each at a price of INR 1,150.00. Consequently, INR 626.08 Lakhs were transferred to Capital Redemption Reserve as per requirements of section 69 of Companies Act, 2013.
f) Aggregate number and class of shares
allotted as fully paid up pursuant to contract(s) without payment being
received in cash, bonus shares and shares bought back for the period of five
years immediately preceding the reporting date.
|
Name of
Shareholder |
Aggregate
number of shares as at 31st March 2017 |
|
Equity Shares alloted as fully paid up by way of bonus shares |
-- |
|
Equity shares alloted as fully paid up pursuant to contract without payment being received in cash |
-- |
|
Equity Shares bought back by the Company (net of 1,36,539 number of shares held through trust) |
6124330 |
g) Detail of shareholders holding more than 5%
shares in the Company
|
Class of
shares and Name of shareholder |
As at 31st March, 2017 |
|
|
Equity shares of INR 10 each fully paid |
Number |
% Shareholding |
|
Devakar Investment and Trading Co. Private Limited |
6192786 |
10.79 |
|
Adishwar Enterprises LLP (Formerly Adinath Investment and Trading Company) |
11413130 |
19.89 |
|
Vardhman Holdings Limited |
14067671 |
24.51 |
|
IDFC Premier Equity Fund |
N.A. |
N.A. |
h) Terms of securities convertible into
equity/preference shares N.A.
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 |
559.288 |
620.531 |
636.519 |
|
(b) Reserves & Surplus |
39299.186 |
36278.673 |
30197.283 |
|
(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) |
39858.474 |
36899.204 |
30833.802 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
7193.528 |
10222.385 |
13172.648 |
|
(b) Deferred tax liabilities (Net) |
2384.002 |
2063.893 |
1984.761 |
|
(c) Other long term
liabilities |
214.980 |
205.146 |
144.629 |
|
(d) long-term provisions |
88.991 |
59.282 |
51.471 |
|
Total Non-current
Liabilities (3) |
9881.501 |
12550.706 |
15353.509 |
|
|
|
|
|
|
(4)
Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
10550.599 |
10168.213 |
4685.469 |
|
(b) Trade
payables |
1774.083 |
1459.067 |
1295.460 |
|
(c) Other
current liabilities |
7477.729 |
8724.004 |
10043.207 |
|
(d) Short-term
provisions |
42.889 |
52.136 |
836.764 |
|
Total Current
Liabilities (4) |
19845.300 |
20403.420 |
16860.900 |
|
|
|
|
|
|
TOTAL |
69585.275 |
69853.330 |
63048.211 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1)
Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
24514.110 |
24890.362 |
24823.366 |
|
(ii)
Intangible Assets |
67.419 |
110.824 |
139.329 |
|
(iii)
Capital work-in-progress |
485.391 |
848.329 |
767.768 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
9721.910 |
10698.392 |
5747.660 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
6.104 |
7.595 |
723.065 |
|
(e) Other
Non-current assets |
677.749 |
889.161 |
1238.642 |
|
Total Non-Current
Assets |
35472.683 |
37444.663 |
33439.830 |
|
|
|
|
|
|
(2)
Current assets |
|
|
|
|
(a) Current
investments |
6706.037 |
5.922 |
994.031 |
|
(b)
Inventories |
15890.038 |
18091.159 |
16367.347 |
|
(c) Trade
receivables |
7179.098 |
7699.963 |
6768.188 |
|
(d) Cash
and cash equivalents |
404.711 |
2767.696 |
1755.477 |
|
(e) Short-term
loans and advances |
365.620 |
292.802 |
3544.536 |
|
(f) Other
current assets |
3567.088 |
3551.125 |
178.802 |
|
Total
Current Assets |
34112.592 |
32408.667 |
29608.381 |
|
|
|
|
|
|
TOTAL |
69585.275 |
69853.330 |
63048.211 |
PROFIT
& LOSS ACCOUNT [STANDALONE]
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
||
|
|
SALES |
|
|
|
||
|
|
|
Income |
57282.874 |
56139.580 |
57420.326 |
|
|
|
|
Other Income |
5675.824 |
2409.729 |
1580.676 |
|
|
|
|
TOTAL |
62958.698 |
58549.309 |
59001.002 |
|
|
|
|
|
|
|
||
|
Less |
EXPENSES |
|
|
|
||
|
|
|
Cost of Materials Consumed |
28366.941 |
26671.511 |
29005.180 |
|
|
|
|
Purchase of Stock-in-trade |
292.035 |
671.509 |
744.239 |
|
|
|
|
Changes in Inventories of finished goods, work-in-progress and
stock-in-trade |
(741.789) |
122.020 |
1310.292 |
|
|
|
|
Employee Benefits Expenses |
4536.138 |
4104.333 |
3508.313 |
|
|
|
|
Other Expenses |
13243.997 |
13488.067 |
13436.478 |
|
|
|
|
TOTAL |
45697.322 |
45057.440 |
48004.502 |
|
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
17261.376 |
13491.869 |
10996.500 |
||
|
|
|
|
|
|
||
|
Less |
FINANCIAL
EXPENSES |
918.310 |
867.069 |
1215.354 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX, DEPRECIATION AND AMORTISATION |
16343.066 |
12624.800 |
9781.146 |
||
|
|
|
|
|
|
||
|
Less |
DEPRECIATION/
AMORTISATION |
3294.939 |
3630.960 |
4888.454 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
BEFORE TAX |
13048.127 |
8993.840 |
4892.692 |
||
|
|
|
|
|
|
||
|
Less |
TAX |
3032.198 |
2229.858 |
1301.557 |
||
|
|
|
|
|
|
||
|
|
PROFIT/(LOSS)
AFTER TAX |
10015.929 |
6763.982 |
3591.135 |
||
|
|
|
|
|
|
||
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
||
|
|
|
Earnings (FOB value of Exports, commission earned) |
22069.098 |
22748.634 |
24424.807 |
|
|
|
TOTAL EARNINGS |
22069.098 |
22748.634 |
24424.807 |
||
|
|
|
|
|
|
||
|
|
IMPORTS |
|
|
|
||
|
|
|
Raw Materials |
NA |
2250.686 |
1713.647 |
|
|
|
|
Components and Stores parts |
NA |
595.811 |
635.067 |
|
|
|
|
Capital Goods |
NA |
1181.739 |
866.185 |
|
|
|
TOTAL IMPORTS |
NA |
4028.236 |
3214.899 |
||
|
|
|
|
|
|
||
|
|
Earnings /
(Loss) Per Share (INR) |
163.67 |
109.00 |
56.42 |
||
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
4237.550 |
5564.434 |
7200.793 |
|
Cash generated from Operations |
15327.154 |
11009.408 |
13858.613 |
|
Net cash flow from/ (used in) operating activities |
12280.999 |
8686.038 |
12108.908 |
QUARTERLY
RESULTS
|
Particulars |
|
30.06.2017 (Unaudited) |
30.09.2017 (Unaudited) |
|
|
|
1st
Quarter |
2nd
Quarter |
|
Net sales |
|
14797.900 |
13971.500 |
|
Total Expenditure |
|
12682.300 |
12063.700 |
|
PBIDT (Excluding Other Income) |
|
2115.600 |
1907.800 |
|
Other income |
|
376.800 |
532.900 |
|
Operating Profit |
|
2492.400 |
2440.700 |
|
Interest |
|
237.400 |
268.900 |
|
Exceptional Items |
|
NA |
NA |
|
PBDT |
|
2255.000 |
2171.800 |
|
Depreciation |
|
568.000 |
540.500 |
|
Profit Before Tax |
|
1687.000 |
1631.300 |
|
Tax |
|
294.200 |
315.100 |
|
Provisions and
contingencies |
|
NA |
NA |
|
Profit after tax |
|
1392.800 |
1316.200 |
|
Extraordinary Items |
|
NA |
NA |
|
Prior Period Expenses |
|
NA |
NA |
|
Other Adjustments |
|
NA |
NA |
|
Net Profit |
|
1392.800 |
1316.200 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry
Debtors / Income * 365 Days) |
45.74 |
50.06 |
43.02 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry Debtors) |
7.98 |
7.29 |
8.48 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
22.59 |
19.48 |
15.89 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
1.09 |
0.75 |
0.67 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
0.69 |
0.52 |
0.43 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.45 |
0.52 |
0.59 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
0.55 |
0.70 |
0.81 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
0.50 |
0.55 |
0.55 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
0.63 |
0.70 |
0.83 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
18.80 |
15.56 |
9.05 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
PAT to Sales ((PAT
/ Sales) * 100) |
% |
17.49 |
12.05 |
6.25 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
14.39 |
9.68 |
5.70 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
25.13 |
18.33 |
11.65 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
1.72 |
1.59 |
1.76 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.92 |
0.70 |
0.79 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.57 |
0.53 |
0.49 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
39.30 |
41.83 |
39.37 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
1.72 |
1.59 |
1.76 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 1488.25/- |
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 |
636.519 |
620.531 |
559.288 |
|
Reserves & Surplus |
30197.283 |
36278.673 |
39299.186 |
|
Net
worth |
30833.802 |
36899.204 |
39858.474 |
|
|
|
|
|
|
Long-Term Borrowings |
13172.648 |
10222.385 |
7193.528 |
|
Short Term Borrowings |
4685.469 |
10168.213 |
10550.599 |
|
Current Maturities of Long term debt |
7200.793 |
5564.434 |
4237.550 |
|
Total
borrowings |
25058.910 |
25955.032 |
21981.677 |
|
Debt/Equity
ratio |
0.813 |
0.703 |
0.551 |
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 |
57420.326 |
56139.580 |
57282.874 |
|
|
|
-2.230 |
2.037 |
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
|
57420.326 |
56139.580 |
57282.874 |
|
Profit/(Loss) |
3591.135 |
6763.982 |
10015.929 |
|
|
6.25% |
12.05% |
17.49% |
ABRIDGED
BALANCE SHEET [CONSOLIDATED]
|
SOURCES OF FUNDS |
31.03.2017 |
31.03.2016 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
(1)Shareholders' Funds |
|
|
|
(a) Share Capital |
549.053 |
609.191 |
|
(b) Reserves &
Surplus |
42183.190 |
39389.690 |
|
(c) Non-controlling
interests |
|
|
|
- Equity Share capital |
256.275 |
293.150 |
|
-
Other Equity |
865.589 |
737.329 |
|
Total Shareholders’ Funds
|
43854.107 |
41029.360 |
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
(a) long-term borrowings |
7427.002 |
10397.203 |
|
(b) Deferred tax
liabilities (Net) |
2711.877 |
2377.426 |
|
(c) Other long term
liabilities |
215.182 |
206.890 |
|
(d) long-term provisions |
96.922 |
63.554 |
|
Total Non-current
Liabilities |
10450.983 |
13045.073 |
|
|
|
|
|
(4) Current Liabilities |
|
|
|
(a) Short term borrowings |
10663.217 |
10307.547 |
|
(b) Trade payables |
2451.522 |
1803.307 |
|
(c) Other current
liabilities |
7699.092 |
8893.235 |
|
(d) Short-term provisions |
46.516 |
54.553 |
|
Total Current Liabilities
|
20860.347 |
21058.642 |
|
|
|
|
|
TOTAL |
75165.437 |
75133.075 |
|
|
|
|
|
II.
ASSETS |
|
|
|
(1) Non-current assets |
|
|
|
(a) Fixed Assets |
|
|
|
(i) Tangible assets |
25713.213 |
26033.322 |
|
(ii) Intangible Assets |
67.418 |
110.824 |
|
(iii) Capital
work-in-progress |
490.267 |
860.130 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
|
(v) Goodwill |
125.448 |
125.918 |
|
(vi) Investment in
associates and joint ventures |
751.679 |
1989.685 |
|
(b) Non-current
Investments |
8587.540 |
9533.800 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
|
(d) Long-term Loan and
Advances |
6.197 |
8.136 |
|
(e) Other Non-current
assets |
804.405 |
1031.918 |
|
Total Non-Current Assets |
36546.167 |
39693.733 |
|
|
|
|
|
(2) Current assets |
|
|
|
(a) Current investments |
9343.988 |
1602.777 |
|
(b) Inventories |
17528.068 |
19251.248 |
|
(c) Trade receivables |
7334.958 |
7775.939 |
|
(d) Cash and cash
equivalents |
446.505 |
2788.654 |
|
(e) Short-term loans and
advances |
297.130 |
303.343 |
|
(f) Other current assets |
3668.621 |
3717.381 |
|
Total Current Assets |
38619.270 |
35439.342 |
|
|
|
|
|
TOTAL |
75165.437 |
75133.075 |
PROFIT
& LOSS ACCOUNT [CONSOLIDATED]
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
Income |
60667.659 |
58952.750 |
|
|
Other Income |
4915.200 |
1104.859 |
|
|
TOTAL |
65582.859 |
60057.609 |
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
Cost of Materials
Consumed |
30158.033 |
27984.653 |
|
|
Purchases of
Stock-in-Trade |
53.950 |
185.983 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(908.182) |
100.710 |
|
|
Employees benefits
expense |
4788.472 |
4337.947 |
|
|
Other expenses |
14316.291 |
14580.361 |
|
|
TOTAL |
48408.564 |
47189.654 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND
AMORTISATION |
17174.295 |
12867.955 |
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
929.499 |
888.641 |
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
16244.796 |
11979.314 |
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
3433.974 |
3742.485 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
12810.822 |
8236.829 |
|
|
|
|
|
|
Less |
TAX |
2868.054 |
1996.085 |
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
9942.768 |
6240.744 |
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
163.10 |
100.89 |
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 |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
CORPORATE INFORMATION
The Company is a public company incorporated under the provisions of the Companies Act, 1956 on 8th October, 1973 and has its registered office at Chandigarh Road, Ludhiana. The name of the company at its incorporation was Mahavir Spinning Mills Limited and subsequently changed to Vardhman Textiles Limited on 5th September, 2006. The company is engaged in manufacturing of Cotton yarn, Synthetic yarn and woven fabric. The company is listed on two stock exchanges i.e. at National Stock Exchange and at Bombay Stock Exchange.
Financial Analysis and Review of
Operations:
Production and Sales Review:
During the year, the Company has registered Revenue from Operations of INR 57282.874 million as compared to INR 56139.580 million in the previous year. The exports of the Company decreased from INR 22748.634 million to INR 22069.098 million showing a decrease of 2.99% over the previous year. The business wise performance is as under:-
a) Yarn:
The production of Yarn decreased marginally from 204142 MT to 202770 MT during the year 2016-17.
b) Fabric:
During the year, the production of grey fabric remained same as last year i.e. 175 million meter. The production of processed fabric increased from 112 million meter to 117 million meter.
MANAGEMENT DISCUSSION
ANALYSIS
ECONOMIC
OVERVIEW
Global economy
The year 2016 ended with the global GDP growth moderating to 3.1% from 3.2% in 2015. Going forward, the IMF expects this growth to touch 3.5% in 2017, on the back of multiple factors: projected fiscal stimulus in the US; firming up of global commodity prices after the slump in 2015; and unchanged accommodative monetary policy stance in most developed economies, barring the US. The US is expected to take calibrated steps towards further policy normalisation in 2017. Despite the resilience exhibited by global financial markets in the face of Brexit and the US Presidential election outcome, high levels of uncertainty continued to impact the global risk appetite in 2016.
On the other hand, Emerging Market and Developing Economies (EMDEs) are projected to grow by 4.5% in 2017. Among these economies, China is expected to demonstrate strong growth at 6.5% (vis-à-vis the previous estimate of 6.2%) on account of its policy stimulus measures. However, moderation in growth prospects is expected among large economies such as India, Brazil, and Mexico.
Indian economy
In an environment of moderate global economic growth, the Indian economy was a study in contrast. The economy successfully navigated global uncertainties, and emerged as a preferred destination for foreign investors. The year 2016-17 saw multiple reforms being rolled out in India such as the creation of Monetary Policy Committee; redesigning of the Fiscal Responsibility and Budget Management (FRBM) framework; passage of the Goods and Services Tax (GST) bill; and finally, the policy thrust towards a less-cash formal economy. GST is expected to be a landmark step in transforming India’s indirect tax framework, bringing transparency and efficiency in tax administration.
The trend of benign inflation and continued improvement in twin deficits further bolstered the country’s macroeconomic parameters. The country’s economic prospects for FY18 appear bright provided policymakers create enablers for strong and sustainable growth in the medium to long term.
The Government’s commitment towards reforms, implementation of Seventh Pay Commission payout by state governments, ongoing quality fiscal consolidation; and marginal improvement in external demand are expected to encourage GDP growth by 20 bps to 7.3%.
GLOBAL AND
INDIAN COTTON DYNAMICS
Global cotton dynamics
Production
In 2016-17, global cotton production was projected at 22.89
million tons, 8% increase over the last cotton season (2015-16). It was the
first year of increased production, after continuous fall for four years. The
world has added stock of 12.44 million tons of cotton in the preceding five
years (2010- 11-2014-15). It is due to the fact that World Production exceeds
consumption in this duration and there was no major revival in demand. Major stock
addition was in China only.
As per ICAC (International
Cotton Advisory Committee), India and China harvest nearly half of the world’s
cotton. In 2016-17, India contributed 26%, while China supplied 21% of the
global cotton produce.
In 2016-17, the total area under cotton production fell by
3.5% to 29.6 million hectares, globally. This is the smallest area for cotton
production since 2009-10, when the planted area for cotton was 29.9 million
hectares. During the year, the average cotton yield was projected to improve by
12% to 773 kg/ha. Besides, cotton production is expected to increase in the top
five cotton producing countries, apart from China.
The decline in China’s cotton production was primarily due
to diversion of land from cotton to other food crops owing to government
stimulus of focusing on cotton production in Xinjiang only. In 2016-17, the
Chinese government reduced subsidy for cotton cultivators by 2.6% to 18600
Yuan/ton which also discouraged farmers from cotton cultivation. In 2016-17, China
witnessed 15 year low cotton production.
With record high prices of seed cotton in the year, farmers
will be encouraged to plant more cotton across all major cotton producing
nations during 2017-18.
Indian cotton
dynamics
India accounts for one-third of the world’s cotton
cultivation area. Maharashtra, Gujarat, Andhra Pradesh and Telangana (also
known as the cotton basket of India) produce nearly two-thirds of the cotton in
India. Cotton is a major product of the Indian textile industry and it accounts
for over 65% of total mill fibre consumption in the country. Among all the
fabrics and yarns produced, cotton is the main fabric.
Better prices for competing crops, delayed monsoon and
yield losses due to pests discouraged Indian farmers, from planting cotton in
2016-17. India’s cotton cultivation area contracted by 11.6% in 2016-17 while
yield increased by 17% over 2015-16. As a result, cotton production in India
(for year 2016-17) increased by 3.8% to 5.97 million tons (351 lakh bales).
Though, as per their estimates, the country production is of 5.78 million tons
(340 lakh bales).
In 2016-17, imports were expected to be 0.289 million tons
(17 lakh bales) compared to 0.255 million tons (15 lakh bales) in 2015-16. But
strengthening of Indian cotton prices and rise in demand pushed imports higher
to 0.425 million tons (25 lakh bales).
Including the opening stock of 0.73 million tons (43 lakh
bales), the total supply of cotton in 2016-17 was estimated at 6.99 million tons
(411 lakh bales). This was nearly 2% less as compared to 7.27 million tons (419
lakh bales) in 2015-16. (Though as per Vardhman’s estimates, the country had
opening stock of 0.56 million tons (33 lakh bales).
On the demand side, consumption was expected to be 5.32
million tons (313 lakh bales) in 2016-17 compared to 5.24 million tons (308
lakh bales) in 2015-16.
Cotton exports were projected to fall from 1.156 million
tons (68 lakh bales) in 2015-16 to 1.02 million tons (60 lakh bales) in
2016-17. This resulted in total demand declining to 6.43 million tons (368 lakh
bales) in 2016-17 compared to 6.396 million tons (376 lakh bales) in 2015-16.
Closing stock in 2016-17 season is expected to be 0.646
million tons (38 lakh bales).Going by their estimates, closing stock will be of
0.476 million tons (28 lakh bales).
Global textile
scenario
Over the last
decade, the global textile and apparel trade has been growing at a CAGR
(compound annual growth rate) of 5.6 %. In 2014, it stood at US$ 820 billion.
Apparel categories had a larger share of 56% while textiles had the remaining
share of 44% in the overall trade. The global textile and apparel trade is
expected to reach US$ 1,600 billion by 2025. It is projected to grow at a CAGR
of 6.3% over the next decade.
The EU and USA
are the largest markets for textile and apparel with a share of 36% and 14%,
respectively. On the supply side, China is the largest supplier of textile and
apparel in the world with the major share of 40%. It is distantly followed by
countries like India, Italy, and Germany. Each of these countries have an
approximate share of 5% in the global textile and apparel exports.
Indian textile
scenario
The textile and
apparel industry can be broadly divided into two segments:
·
Yarn and fibre (include natural and man-made).
·
Processed fabrics (including woollen textiles, silk textiles, jute
textiles, cotton textiles and technical textiles) and readymade garments (RMGs)
and apparel.
Textile plays a
major role in the Indian economy. It contributes 14% to industrial production
and 4% to GDP. With over 45 million people involved, it is one of the largest
source of employment generation in the country. The textile industry accounts
for nearly 15% of India’s total exports. The size of India’s textile market in
2015 was around USD 108.5 billion. It is expected to touch USD 226 billion
market by 2023, growing at a CAGR of 8.7% between 2009-23.
OUTLOOK
The future for the
Indian textile industry looks promising, buoyed by both strong domestic
consumption as well as export demand. With consumerism and disposable income on
the rise, the retail sector has experienced a rapid growth in the past decade.
Several international players paving their path in the Indian market testifies
the fact. Going forward, the Indian cotton textile industry is expected to
showcase a stable growth supported by stable input prices, healthy capacity
utilisation and steady domestic demand.
UNSECURED LOANS:
|
PARTICULARS |
31.03.2017 INR
In Million |
31.03.2016 INR
In Million |
|
SHORT TERM
BORROWINGS |
|
|
|
From banks |
387.229 |
653.838 |
|
|
|
|
|
Total |
387.229 |
653.838 |
STANDALONE UNAUDITED
FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th September
2017
(INR In Million)
|
Particulars |
Quarter ended |
Half Year ended |
|
|
|
30.09.2017 |
30.06.2017 |
30.09.2017 |
|
|
Unaudited |
||
|
INCOME FROM OPERATIONS |
|
|
|
|
Net Sales |
13971.500 |
14855.100 |
28826.600 |
|
Other Operating Income |
532.900 |
401.800 |
934.700 |
|
Total
Income from Operations |
14504.400 |
15256.900 |
29761.300 |
|
EXPENSES |
|
|
|
|
Cost of materials consumed |
8187.500 |
8127.500 |
16315.000 |
|
Purchase of Stock in Trade |
-- |
100.800 |
100.800 |
|
Changes in inventories of finished goods and
work-in-progress |
(587.400) |
(149.900) |
(737.300) |
|
Employee benefits expense |
1283.500 |
1142.800 |
2426.300 |
|
Finance Costs |
268.900 |
262.400 |
531.200 |
|
Depreciation and Amortization expenses |
540.500 |
568.000 |
1108.600 |
|
Power and fuel |
1479.100 |
1448.400 |
2927.500 |
|
Other Expenditure |
1701.000 |
2070.000 |
3771.000 |
|
Total
Expenses |
12873.100 |
13570.000 |
26443.100 |
|
Profit / (Loss) before Tax |
1631.300 |
1686.900 |
3318.200 |
|
Tax Expense |
315.100 |
294.200 |
609.200 |
|
Profit
/ (Loss) after Tax |
1316.200 |
1392.700 |
2709.000 |
|
Paid-up Equity Share Capital (Face value INR 10/- per
share) |
|
|
|
|
Reserves (excluding Revaluation Reserve) |
|
|
|
|
Earnings
per Share (EPS) - INR |
23.24 |
24.90 |
47.84 |
STANDALONE
STATEMENT OF ASSTES AND LIABILITIES
INR In Million
|
SOURCES OF FUNDS |
30.09.2017 (Unaudited) |
|
ASSETS |
|
|
Non-current
assets |
|
|
Property, plant and
equipment |
24045.000 |
|
Capital work-in-progress |
736.000 |
|
Intangible assets |
48.900 |
|
Financial
Assets |
|
|
-
Investments |
11080.000 |
|
-
Loans |
6.500 |
|
-
Other financial assets |
17.600 |
|
Other non-current assets |
879.200 |
|
Total Non-Current Assets |
36813.200 |
|
|
|
|
Current
assets |
|
|
Inventories |
12661.300 |
|
Financial
Assets |
|
|
-
Investments |
10130.200 |
|
-
Trade receivables |
8050.400 |
|
-
Cash and bank balances |
445.000 |
|
-
Bank balance |
35.800 |
|
-
Loans |
325.400 |
|
-
Other financial assets |
139.400 |
|
Current tax assets (Net) |
496.300 |
|
Other current assets |
2969.300 |
|
Total Current Assets |
35253.100 |
|
|
|
|
TOTAL |
72066.300 |
|
|
|
|
EQUITY AND LIABILITIES |
|
|
Shareholders'
Funds |
|
|
Share Capital |
566.300 |
|
Other equity |
41923.200 |
|
Total Shareholders’ Funds
|
42489.500 |
|
|
|
|
Non-Current
Liabilities |
|
|
Financial
liabilities |
|
|
-
Borrowings |
11418.500 |
|
-
Other long term liabilities |
1.000 |
|
-
Provisions |
80.600 |
|
Deferred tax liabilities
(Net) |
2305.700 |
|
Other non-current liabilities |
228.200 |
|
Total Non-current
Liabilities |
14034.000 |
|
|
|
|
Current
Liabilities |
|
|
Financial
liabilities |
|
|
-
Borrowings |
6511.900 |
|
-
Trade payables |
1519.900 |
|
-
Other financial liabilities |
6140.200 |
|
Other current liabilities |
1327.500 |
|
Provisions |
43.300 |
|
Total current Liabilities |
15542.800 |
|
|
|
|
TOTAL |
72066.300 |
NOTES:
1. During the first quarter of financial year 2017-18 the management had reviewed the useful life of general plant and machinery and had re-estimated that useful life of such plant and machinery should be 10 years instead of 7.5 years. Accordingly, the necessary accounting changes have been done prospectively w.e.f April 01, 2017 as per Ind-AS-8 and Ind-AS-16.The Depreciation expense charged for the quarter ended June 30,2017 and quarter ended September 30,2017 would had been higher by INR 241.000 million and INR 244.100 million respectively had the Company continued with previously estimated useful life for general plant and machinery.
2.
a) Other income for the year ended March 31, 2017 includes INR 363.800 million arising on account of tendering of 8949690 fully paid up equity shares of the Vardhman Acrylics Limited, a subsidiary of the Company, under buy back offer.
b) Other income for the quarter and half year ended September 30, 2016 and year ended March 31, 2017 also includes –
i) An income of INR 3130.800 million (INR 2746.100 million net of taxes) arising to the Company on sale of its 40% equity stake in its subsidiary company namely Vardhman Yarns & Threads Limited (VYTL) to its JV Partner namely American & Efird Global in accordance with the terms & conditions of Share Sale & Purchase Agreement entered into among the parties. As a result, now Company holds only 11% equity stake in Vardhman Yarns & Threads Limited.
ii) An income of INR 427.600 million (INR 354.500 million net of taxes) arising on sale of certain pieces of land in Hoshiarpur along with building constructed thereon to Vardhman Yarns & Threads Limited.
3. The above results were reviewed by the Audit Committee and approved by Board of Directors at their meeting held on November 8, 2017. The results for quarter and half year ended September 30, 2017 have been reviewed by Statutory Auditor as per Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
4. The Company has issued secured, rated listed Redeemable Non-convertible Debentures (NCDs) aggregating to INR 4998.000 million for cash at par on private placement basis on September 8, 2017. The NCD's are listed at the Bombay Stock Exchange of India (BSE) and comprise of three series repayable in third, fourth and fifth years and have an overall yield of 7.69% per annum.
CRISIL has assigned a rating of AA+ with Stable outlook to the said NCDs of the Company on August 18, 2017. The NCDs shall be secured by way of a first pari passu charge over the immovable and movable fixed assets of the Company and it should have asset cover of more than 105% of outstanding amount of NCDs.
Details of due dates for the payment of interest and repayment of the
principal of NCD's are as follows:
|
Particulars |
Due Date |
|
|
Interest |
Principal |
|
|
1500 7.59% series A NCDs of INR 1.000 million each |
10.09.2018 |
08.09.2020 |
|
1500 7.69% series B NCDs of INR 1.000 million each |
10.09.2018 |
08.09.2021 |
|
1500 7.75% series C NCDs of INR 1.000 million each |
10.09.2018 |
08.09.2022 |
5. During the quarter ended September 30, 2017 the Company has acquired 11.66% equity shares of VMT Spinning Company Limited (VMT), Accordingly VMT has become a wholly owned subsidiary of the Company.
6. The Company was holding its own 15,98,741 equity shares of INR 10 each through Mahavir Share Trust (The Trust).During the quarter ended September 30, 2017 7,00,000 equity shares have been sold by the trust for a consideration of INR 836.600 million. Accordingly, the paid up equity share capital of the Company has increased from INR 559.300 million to INR 566.300 million.
7. On May 10, 2017 the Board of Directors had proposed final dividend of INR 15 per equity share for the year ended March 31, 2017 which has been approved by the Shareholders in the Annual General Meeting dated September 22, 2017 and paid during the quarter.
8. During the half year ended September 30, 2017 Company has subscribed to 38,83,333 equity shares of Vardhman Special Steels Limited offered through Right Issue at a price of INR 50 per share amounting to INR 194.100 million.
9. Figures for previous periods/year have been recast/regrouped, wherever necessary to make them comparable.
10. Business segments have been identified based on the nature and class of products and services, assessment of differential risks and returns. Accordingly, the Company is a single segment Company operating in textile business and disclosure requirements as contained in Ind AS- 108 'Operating Segments' are not required in the standalone financial statements.
INDEX OF CHARGES:
|
S No |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of Modification |
Date of Satisfaction |
Amount |
Address |
|
1 |
G72262686 |
10583270 |
STATE BANK OF INDIA |
08/07/2015 |
02/11/2017 |
- |
1330000000.0 |
IFB, GOLDEN TOWER DHOLEWAL CHOWK LUDHIANA PB141003IN |
|
2 |
G72026503 |
10581218 |
ICICI BANK LIMITED |
27/06/2015 |
02/11/2017 |
- |
720000000.0 |
ICICI BANK TOWER, NBCC PLACE, BHISHMA PITAMAH MARG, PRAGATI VIHAR NEW DELHI DL110003IN |
|
3 |
G72027139 |
10581358 |
ICICI BANK LIMITED |
27/06/2015 |
02/11/2017 |
- |
2200000000.0 |
ICICI BANK TOWER, NBCC PLACE, BHISHMA PITAMAH MARG, PRAGATI VIHAR NEW DELHI DL110003IN |
|
4 |
G72264682 |
10558928 |
STATE BANK OF INDIA |
24/03/2015 |
02/11/2017 |
- |
1350000000.0 |
IFB, GOLDEN TOWER DHOLEWAL CHOWK LUDHIANA PB141003IN |
|
5 |
G72264708 |
10508490 |
STATE BANK OF INDIA |
21/06/2014 |
02/11/2017 |
- |
440000000.0 |
INDUSTRIAL FINANCE BRANCH, GOLDEN TOWER DHOLEWAL CHOWK LUDHIANA PB141003IN |
|
6 |
G72264906 |
10443552 |
STATE BANK OF INDIA |
24/07/2013 |
02/11/2017 |
- |
450000000.0 |
IFB, GOLDEN TOWER DHOLEWAL CHOWK LUDHIANA PB141003IN |
|
7 |
G72147879 |
10435934 |
EXPORT-IMPORT BANK OF INDIA |
24/06/2013 |
02/11/2017 |
- |
435000000.0 |
CENTRE ONE BUILDING, FLOOR-21WORLD TRADE CENTRE COMPLEX, CUFFE PARADE MUMBAI MH400005IN |
|
8 |
G72291990 |
10426904 |
STATE BANK OF INDIA |
29/03/2013 |
02/11/2017 |
- |
1600000000.0 |
IFB, GOLDEN TOWER DHOLEWAL CHOWK LUDHIANA PB141003IN |
|
9 |
G72264922 |
10348797 |
STATE BANK OF INDIA |
22/03/2012 |
02/11/2017 |
- |
2650000000.0 |
IFB,GOLDEN TOWER DHOLEWAL CHOWK LUDHIANA PB141003IN |
|
10 |
G72147796 |
10324897 |
EXPORT-IMPORT BANK OF INDIA |
27/12/2011 |
02/11/2017 |
- |
1300000000.0 |
WORLD TRADE CENTRE COMPLEX, CUFFE PARADE WORLD TRADE CENTRE COMPLEX, CUFFE PARADE MUMBAI MH400005IN |
CONTINGENT LIABILITIES:
|
PARTICULARS |
31.03.2017 INR
In Million |
31.03.2016 INR
In Million |
|
Claims not acknowledged as debts |
43.637 |
102.077 |
|
Bank Guarantees and Letters of Credit outstanding |
1125.486 |
603.086 |
|
Other monies for which the company is contingently
liable |
-- |
-- |
FIXED ASSETS:
Tangible Assets
· Free-hold Land
· Leasehold Land
· Buildings
· Plant and Equipment
· Furniture and Fixture
· Vehicles
· Office equipment
Intangible Assets:
· Computer Software
· Right to use Power Lines
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No 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 63.77 |
|
|
1 |
INR 89.20 |
|
Euro |
1 |
INR 78.22 |
INFORMATION DETAILS
|
Analysis Done by
: |
VAR |
|
|
|
|
Report Prepared
by : |
NKT |
SCORE FACTORS
|
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 |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.