|
|
|
MIRA INFORM REPORT
|
Report No. : |
497170 |
|
Report Date : |
10.03.2018 |
IDENTIFICATION DETAILS
|
Name : |
ALOK INDUSTRIES LIMITED |
|
|
|
|
Registered
Office : |
17/5/1, 521/1, Village Rakholi/ Saily, Silvassa – 396230, Dadra and Nagar Haveli (U.T.) |
|
Tel. No.: |
91-260-6637000 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2017 |
|
|
|
|
Date of
Incorporation : |
12.03.1986 |
|
|
|
|
Com. Reg. No.: |
54-000334 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
INR
13578.700 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L17110DN1986PLC000334 |
|
|
|
|
IEC No.: [Import-Export Code No.] |
0392021889 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
|
|
|
|
GSTN : [Goods & Service Tax
Registration No.] |
27AAACA0201C2ZQ |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACA0201C |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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|
|
|
Line of Business
: |
Subject is primarily engaged in the business of
Manufacturing of Textile and Other Apparel Products and including Mending and
Packing Activities. (Registered Activity and also Confirmed by Management) |
|
|
|
|
No. of Employees
: |
11759 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
|
MIRA’s Rating : |
D |
|
Credit Rating |
Explanation |
Rating Comments |
|
D |
High Risk |
Business dealing not recommended or on
secured terms only |
|
Status : |
Poor |
|
|
|
|
Payment Behaviour : |
Slow and Delayed |
|
|
|
|
Litigation : |
Exist |
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|
|
|
Comments : |
Subject was incorporated in the year 1986 and is a textile manufacturing company including mending and packing activities. Its products include cotton and blended yarn, apparel fabric, embroidery, garments-woven and knitted, home textile, polyesters, accessories and corrugated pallets, etc. As per 2017 financial records, the company has reported a decline in its revenue as compared to the previous year and has incurred operational losses during the year. Rating is further constrained on account of company’s moderate financial risk profile marked by healthy net worth base with along weak debt coverage indicators and unfavourable gap between trade payables to its receivables. Rating also takes into account of vulnerability of its operating margins to volatility in the raw material prices and its working capital intensive operations. Rating is constrained in account of subject’s presence under the RBI defaulter’s list with the name of the credit grantor-The Saraswat Co-Operative Bank Limited and the amount charged is INR 287.542 million dated 30.09.2017 and SIDBI and the amount charged INR 123.642 million dated 31.12.2017. The National Company Law Tribunal, Ahmedabad Bench, has ordered the commencement of a corporate insolvency resolution process against Alok Industries Limited on 18th July, 2017. As per the press release, Alok Industries is one of the top 12 bank loan defaulters earmarked for immediate bankruptcy proceedings by the Reserve Bank of India. The Insolvency and Bankruptcy Code (IBC) stipulates a maximum of 270 days to resolve an admitted case, failing which there is mandatory liquidation. In Alok Industries’ case, the company had already admitted its default, but the tribunal had to hear a petition filed by the Industrial and Commerce Bank of China (ICBC) that sought dismissal or deferment of SBI’s petition against the firm. The Chinese bank has lent close to $55 million to Alok Industries and said there was an on-going case before the Bombay high court seeking the liquidation of Alok. The judge dismissed ICBC’s petition invoking Section 14 (1) (a) of the Insolvency and Bankruptcy Code (IBC), which gives the NCLT power to impose a moratorium on any other pending suit against the defaulter in any other court. Alok Industries owes close to INR 80000.000 million to SBI, of which INR 37000.000 million has turned non-performing. The firm’s overall outstanding debt stands at about INR 200000.000 million. Business is active. Payment 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 |
Not Available |
|
Rating |
Not Available |
|
Rating Explanation |
Not Available |
|
Date |
Not Available |
RBI DEFAULTERS’ LIST STATUS
Subject’s name has been found enlisted as a
defaulter in the publicly available RBI Defaulters’ list and the details of the
same are as under :
Suit-filed accounts of INR 10.000 million and above as on
30-October-2017
Borrowers details
|
BORROWER NAME |
ALOK INDUSTRIES
LIMITED |
|
ADDRESS |
17/5/1, 521/1,
VILLAGE RAKHOLI/ SAILY, SILVASSA DN 396230 IN NEW DELHI |
Name of Directors Reported by Credit Grantors Filing the Suit:
|
Sr.No. |
Directors Reported
by Credit Grantors |
DIN Number |
|
THE
SARASWAT CO-OP BANK LIMITED |
||
|
7 |
Rajeev Kumar |
01879049 |
|
1 |
Ashok Bhagirathmal
Jiwrajka |
00168350 |
|
3 |
Dilip Bhagirathmal
Jiwrajka |
00173476 |
|
4 |
Gopal Hariharan Kadayam |
|
|
5 |
Kamalkishore Chandravadan
Jani |
02535299 |
|
6 |
Pradeep Kumar Rath |
01697520 |
|
2 |
Atanu Sen |
05339535 |
|
8 |
Senthilkumar Arumugham |
07421184 |
|
9 |
Sudhir Garg |
06777363 |
|
10 |
Surendra Bhagirathmal
Jiwrajka |
00173525 |
|
11 |
Surinder Kumar Bhoan |
00435603 |
|
12 |
Tulsi Nanikram Tejwani |
07423670 |
List of Credit Grantors to which ALOK
INDUSTRIES LIMITED is a
defaulter:
|
Names of
Credit Grantors |
Branch |
Amount |
|
THE
SARASWAT CO-OP BANK LIMITED |
LAJPAT
NAGAR |
287.542 |
|
|
TOTAL |
287.542 |
Suit-filed accounts of INR 10.000
million and above as on 03-Nov-2017
Borrowers details
|
BORROWER NAME |
ALOK INDUSTRIES
LIMITED |
|
ADDRESS |
PENINSULA TOWER, 'A' WING PENINSULA CORPORATE PARK G.K.MARG, LOWER PAREL, MUMBAI – 400013, MAHARASHTRA |
Name of Directors Reported by Credit Grantors Filing the Suit:
|
Sr.No. |
Directors Reported by Credit Grantors |
DIN Number |
|
|
SIDBI |
|
|
1 |
ALOK INDUSTRIES LIMITED |
|
|
2 |
ASHOK B JIWAJKA |
|
|
3 |
DILIP B JIWAJKA |
|
|
4 |
SURENDRA B JIWAJKA |
|
List of Credit Grantors to which ALOK INDUSTRIES LIMITED is a
defaulter:
|
Names of Credit Grantors |
Branch |
Amount |
|
SIDBI |
MUMBAI-BKC |
123.642 |
|
TOTAL |
123.642 |
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 10.03.2018
IBBI (Insolvency and Bankruptcy Board of India) LISTING STATUS
Subject’s name is listed in the publicly
available IBBI (Insolvency and Bankruptcy Board of India) list as of report
date. The details of the listing are as under:
|
Date of Listing / Announcement : |
18.07.2017 |
|
Name of Company : |
State Bank of India |
|
Name of Applicant : |
Alok Industries Limited |
|
Name of Insolvency Professional : |
Mr. Ajay Joshi |
|
Address of Insolvency Professional : |
Dwarka, A/2 Phatak Baug Society, 999 Navi Peth, Pune - 411030, Maharashtra, India |
|
Reason for Listing : |
Corporate Insolvency Resolution Process |
INFORMATION DENIED BY
|
Name : |
Mr. Kalpesh Shah |
|
Designation : |
Vice President of Legal and Secretary Part |
|
Contact No.: |
91-9820138545 |
|
Date : |
09.03.2018 |
MANAGEMENT NON-COOPERATIVE: tel. No.: 91-22-6637000
Tel. No.: 91-22-261787000 / 7101 – Not Working
LOCATIONS
|
Registered Office : |
17/5/1, 521/1, Village Rakholi/ Saily, Silvassa – 396 230, Dadra and
Nagar Haveli (U.T.), India |
|
Tel. No.: |
91-260-6637000 |
|
Mobile No.: |
91-9820138545 [Mr. Kalpesh Shah] 91-9920415875 [Mr. Harish Maloo] |
|
Fax No.: |
91-260-2645289 |
|
E-Mail : |
Woven Fabrics: wovenrmg@alokind.com Knitted Fabrics:
knitdomestic@alokind.com Home Textiles: hometextile@alokind.com Garments: garments@alokind.com Polyester Yarn: texyarndomestic@alokind.com Cotton and
Cotton Yarn: cottonyarn@alokind.com Work Wear: workwear@alokind.com Embroidery: embroidery@alokind.com |
|
Website : |
|
|
|
|
|
Corporate Office : |
Tower B, 2nd and 3rd Floor, Peninsula Tower ‘A’
Wing, Peninsula Corporate Park, G.K. Marg, Lower Parel, Mumbai – 400 013,
Maharashtra, India |
|
Tel. No. : |
91-22-61787000/ 61787101 |
|
|
|
|
Works (Manufacturing Locations) : |
Spinning 412 (15), Saily, Silvassa, Union Territory of Dadra and Nagar Haveli,
India Weaving a) 17/5/1 and 521/1, Rakholi / Saily, Silvassa, Union Territory of Dadra
and Nagar Haveli, India b) 209/1 and 209/4, Dadra, Union Territory of Dadra and Nagar Haveli,
India c) Babla Compound, Kalyan Road, Bhiwandi, District Thane, Maharashtra,
India Processing a) 254, 261, 268, Balitha, Taluka Pardi, District Valsad, Gujarat,
India b) C-16/2, Village Pawane, TTC Industrial Area, MIDC, Navi Mumbai,
District Thane, Maharashtra, India Knitting 412 (15), Saily, Silvassa, Union Territory of Dadra and Nagar Haveli,
India Hemming 103/2, Rakholi, Silvassa, Union Territory of Dadra and Nagar Haveli,
India Embroidery a)
A/317, TTC Industrial Area, MIDC, Mahape, Navi Mumbai, Maharashtra, India b)
248 and 248, Vasona, Silvassa Khanvel Road, Sivassa, Union Territory of Dadra
and Nagar Haveli, India Polyester Yarn
(POY and Texturised Yarn) 17/5/1,
521/1, Rakholi / Saily and 409/1 Saily Silvassa, Union Territory of Dadra and
Nagar Haveli, India Garments a) 374/2/2, Saily, Silvassa Khanvel Road, Union Territory of Dadra and
Nagar Haveli, India b) 17/5/1, Rakholi, Silvassa, Union Territory of Dadra and Nagar
Haveli, India c) 273/1/1, Hingraj Industrial Estate, Atiawad, Daman, Union
Territory, India d) 50/P2, 52/P1, Morai, Taluka Pardi, District Valsad, Gujarat, India Home Textiles Bed Linen a) 374/2/2, Saily, Silvassa, Union Territory of Dadra and Nagar
Haveli, India b) 149/150, Morai Taluka, Pardi, District Valsad, Gujarat, India Terry Towel 263/P1 and 251/2P1 Balitha, Taluka Pardi, District Valsad, Gujarat,
India |
|
|
|
|
Branch Office : |
B-43, Mittal Tower, Nariman Point, Mumbai – 400 021, Maharashtra,
India |
|
Tel. No.: |
91-22-22874865/ 22832923/ 24940129/ 22845233/ 22881279/ 22832923 |
|
Fax No.: |
91-22-22874864/ 24936078 |
|
|
|
|
Marketing Offices – Domestic : |
New Delhi F/29 Okhla Industrial Area, Phase 1, New Delhi -110020, India Bangalore Ground Floor, Rajee,
8-3/1, Langford Road, Langford Town, Bangalore - 560025, Karnataka,
India |
|
|
|
|
Marketing Offices - Overseas : |
Sri Lanka USA - New York Bangladesh USA - Dallas Phone:
+1469-726-3368 China Dubai British Virgin Islands Czech Republic |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Ashok Bhagirathmal Jiwrajka |
|
Designation : |
Executive Director |
|
Address : |
Flat No.401-402, Raheja Legend, 254/A, Dr. Annie Besant Road, Worli, Mumbai - 400030, Maharashtra, India |
|
Date of Birth/Age : |
07.10.1950 |
|
Qualification : |
Commerce Graduate |
|
Date of Appointment : |
12.03.1986 |
|
DIN No : |
00168350 |
|
|
|
|
Name : |
Mr. Dilip Bhagirathmal Jiwrajka |
|
Designation : |
Managing Director |
|
Address : |
15th Floor, Villa ORB, Opposite Manzoni Showroom, Darabshaw Lane, Off N S Road, Mumbai - 400006, Maharashtra, India |
|
Date of Birth/Age : |
09.10.1956 |
|
Date of Appointment : |
12.03.1986 |
|
DIN No : |
00173476 |
|
|
|
|
Name : |
Mr. Surendra Bhagirathmal Jiwrajka |
|
Designation : |
Joint Managing Director |
|
Address : |
Flat No.901, Palm Beach Apartments, 67-A, Pochkhanwala Road, Mumbai - 400025, Maharashtra, India |
|
Date of Birth/Age : |
17.10.1958 |
|
Date of Appointment : |
12.03.1986 |
|
DIN No : |
00173525 |
|
|
|
|
Name : |
Mr. Surinder Kumar Bhoan |
|
Designation : |
Independent Director |
|
Address : |
401, Jhulelal, 16th Road, Khar (West), Mumbai - 400052, Maharashtra, India |
|
Date of Birth/Age : |
67 Years |
|
Date of Appointment : |
30.03.2015 |
|
DIN No : |
00435603 |
|
|
|
|
Name : |
Mr. Pradeep Kumar Rath |
|
Designation : |
Nominee Director |
|
Address : |
Flat No.33, Jeevan Akash, Forjett HILL, Dinanath Nangeshkar Lane, Tardeo, Mumbai - 400036, Maharashtra, India |
|
Date of Birth/Age : |
60 Years |
|
Date of Appointment : |
14.10.2015 |
|
DIN No : |
01697520 |
|
|
|
|
Name : |
Mr. Thankom T Mathew |
|
Designation : |
Director |
|
Address : |
A-1,1st Floor,Jeevan Jyot Setalwad Setalwad Road Lane, Napean Sea Road Mumbai – 400036, Maharashtra, India |
|
Date of Appointment : |
04.03.2017 |
|
DIN No : |
00025326 |
|
|
|
|
Name : |
Mr. Keshav Dattaram Hodavdekar |
|
Designation : |
Director |
|
Address : |
A-131, Vikasini Corporate Housing Society Limited, Sector 8b, Near YMCA CBD Belapur, Navi Mumbai, Konkan Bhavan, Thane – 400614, Maharashtra, India |
|
Date of Appointment : |
09.02.2017 |
|
DIN No : |
00406556 |
|
|
|
|
Name : |
Mr. Atanu Sen |
|
Designation : |
Nominee Director |
|
Address : |
Flat 15c, Madhuban, Gen J Bhosle Marg, Nariman Point, Mumbai - 400021, Maharashtra, India |
|
Date of Appointment : |
24.09.2015 |
|
DIN No : |
05339535 |
|
|
|
|
Name : |
Mr. Suneet Shukla |
|
Designation : |
Nominee Director |
|
Address : |
Flat No.102, Blue Diamond Apartment, Near SNDT University, Juhu Tara Road, Mumbai – 400049, Maharashtra, India |
|
Date of Appointment : |
15.05.2017 |
|
DIN No : |
02248415 |
|
|
|
|
Name : |
Mr. Gopal Hariharan Kadayam |
|
Designation : |
Whole-Time Director |
|
Address : |
8a And B, 8th Floor, Sapphire, Plot No. 230, 10th Road, Sandu Garden, Chembur, Mumbai - 400071, Maharashtra, India |
|
Date of Birth/Age : |
50 Years |
|
Date of Appointment : |
10.11.2012 |
|
DIN No : |
06430369 |
|
|
|
|
Name : |
Mr. Senthilkumar Arumugham |
|
Designation : |
Director |
|
Address : |
B-102,Pramukh Residency, Vapi To Daman Road, Chala, Vapi – 396191, Maharashtra, India |
|
Date of Appointment : |
24.09.2016 |
|
DIN No.: |
07421184 |
|
|
|
|
Name : |
Mr. Tulsi Nanikram Tejwani |
|
Designation : |
Director |
|
Address : |
Row House No.1, Alok City, Bhoya Pada, Saily, Rakholi Silvassa 396240 Dadar Nagar Haveli (U.T.) |
|
Date of Appointment : |
24.09.2016 |
|
DIN No.: |
07423670 |
KEY EXECUTIVES
|
Name : |
Mr. Gopal Hariharan Kadayam |
|
Designation : |
Company Secretary |
|
Address : |
8a&B, 8th Floor, Sapphire, Plot No. 230, 10th Road, Sandu Garden, Chembur Mumbai – 400071, Maharashtra, India |
|
Date of Appointment : |
28.07.1994 |
|
PAN No.: |
ADLPG4276G |
|
|
|
|
Legal Advisors
& Solicitors: Oasis Counsel and Advisory |
|
|
Name : |
Mr. Sunil O. Khandelwal |
|
Designation : |
Chief Financial Officer |
|
|
|
|
Name : |
Mr. Kalpesh Shah |
|
Designation: |
Vice President of Legal and Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on December 2017
|
Category of
shareholder |
Total nos. shares
held |
Shareholding as a %
of total no. of shares |
|
|
(A) Promoter &
Promoter Group |
396890312 |
28.82 |
|
|
(B) Public |
980427583 |
71.18 |
|
|
Grand
Total |
1377317895 |
100.00 |
STATEMENT SHOWING
SHAREHOLDING PATTERN OF THE PROMOTER AND PROMOTER GROUP
|
Category of
shareholder |
Total nos. shares
held |
Shareholding as a %
of total no. of shares (calculated as per SCRR, 1957) As a % of |
|
|
A1) Indian |
|
||
|
Individuals/Hindu
undivided Family |
101739944 |
7.39 |
|
|
Ashok B Jiwrajka |
31316473 |
2.27 |
|
|
Dilip B Jiwrajka |
32070471 |
2.33 |
|
|
Surendra B Jiwrajka |
35121035 |
2.55 |
|
|
Chandrakala A Jiwrajka |
2561 |
0.00 |
|
|
Pramila D Jiwrajka |
2061605 |
0.15 |
|
|
Vinod B Jivrajka |
1163633 |
0.08 |
|
|
Alok A Jiwrajka |
4166 |
0.00 |
|
|
Any Other (Specify) |
295150368 |
21.43 |
|
|
Alok Knit Exports Private
Limited |
285820048 |
20.75 |
|
|
Ashok Realtors Private
Limited |
639320 |
0.05 |
|
|
Surendra B Jiwrajka, K.
H. Gopal |
8691000 |
0.63 |
|
|
Sub Total A1 |
396890312 |
28.82 |
|
|
A2) Foreign |
|
||
|
A=A1+A2 |
396890312 |
28.82 |
STATEMENT SHOWING
SHAREHOLDING PATTERN OF THE PUBLIC SHAREHOLDER
|
category & Name
of the Shareholders |
Total No. shares
held |
Shareholding %
calculated as per SCRR, 1957 As a % of |
|
|
B1) Institutions |
|
||
|
Mutual Funds/ |
200 |
0.00 |
|
|
Foreign Portfolio Investors |
51826695 |
3.76 |
|
|
India Opportunities
Growthfund Limited- Pinewood Strategy |
30791298 |
2.24 |
|
|
Financial Institutions/
Banks |
87943362 |
6.39 |
|
|
Life Insurance
Corporation Of India |
35164136 |
2.55 |
|
|
Ifci Limited |
18760723 |
1.36 |
|
|
Idbi Bank Limited |
16888161 |
1.23 |
|
|
Sub Total B1 |
139770257 |
10.15 |
|
|
B2) Central Government/ State
Government(s)/ President of India |
0.00 |
||
|
B3) Non-Institutions |
0.00 |
||
|
Individual share capital upto INR 0.200
million |
282103395 |
20.48 |
|
|
Individual share capital in excess of INR
0.200 million |
374465269 |
27.19 |
|
|
Any Other (specify) |
184088662 |
13.37 |
|
|
Trusts |
46450 |
0.00 |
|
|
HUF |
29494079 |
2.14 |
|
|
NRI – Non- Repat |
4979166 |
0.36 |
|
|
NRI – Repat |
15434824 |
1.12 |
|
|
Overseas corporate bodies |
7500 |
0.00 |
|
|
Clearing Members |
11269501 |
0.82 |
|
|
Market Maker |
1353970 |
0.10 |
|
|
Bodies Corporate |
121503172 |
8.82 |
|
|
Sub Total B3 |
840657326 |
61.04 |
|
|
B=B1+B2+B3 |
980427583 |
71.18 |
BUSINESS DETAILS
|
Line of Business : |
Subject is primarily engaged in the business of
Manufacturing of Textile and Other Apparel Products and including Mending and
Packing Activities. (Registered Activity and also Confirmed by Management) |
|
|
|
|
Brand Names : |
Not Divulged |
|
|
|
|
Agencies Held : |
Not Divulged |
|
|
|
|
Exports : |
Not Divulged |
|
|
|
|
Imports : |
Not Divulged |
|
|
|
|
Terms : |
Not Divulged |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
|
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Customers : |
|
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No. of Employees : |
11759 (Approximately) |
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Bankers : |
WORKING CAPITAL LENDERS
·
Corporation Bank
·
LIC
·
Vijaya Bank OTHER LENDERS
|
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|
Facilities : |
|
|
Statutory Auditors: |
|
|
Name : |
Shah Gupta and Company Chartered Accountants |
|
|
|
|
Name : |
NBS and Company Chartered Accountants |
|
|
|
|
Internal Auditors: |
|
|
Name : |
Bhandarkar and Company Chartered Accountants |
|
|
|
|
Name : |
Devdhar Joglekar and Srinivasan Chartered Accountant |
|
|
|
|
Name : |
HPVS and Associates Chartered Accountants |
|
|
|
|
Legal Advisors & Solicitors: |
Oasis Counsel and Advisory |
|
|
|
|
Memberships : |
Not Available |
|
|
|
|
Collaborators : |
Not Available |
|
|
|
|
Subsidiaries companies: |
# Liquidation under
process @ Incorporated on 7 March 2014 |
|
|
|
|
Associate
companies: |
· Alspun Infrastructure Limited · Ashford Infotech Private Limited |
|
|
|
|
Entities under
common control: |
· Alok Denims (India) Limited · Alok Textile Traders · Triumphant Victory Holdings Limited · D. Surendra & Company · Alok Knit Exports Private Limited · Ashok Realtors Private Limited · Nirvan Exports · Pramatex Enterprises |
|
|
|
|
Joint Venture: |
· Aurangabad Textiles & Apparel Parks Limited · New City Of Bombay Mfg. Mills Limited |
|
|
|
|
Firms in which KMP and Relatives of KMP are Interested: |
· AVAN Packaging and Boards · Linear Design · C. J. Corporation |
CAPITAL STRUCTURE
AS ON 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1500000000 |
Equity Shares |
INR 10/- each |
INR 15000.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1377317895 |
Equity Shares Less:- Alok Benefit Trust is holding 19459382 Equity Shares [Previous Year 19459382] of INR 10/- of Alok Industries Limited, the sole beneficiary of which is the Company. |
INR 10/- each |
INR
13578.600 Million |
|
|
Add : 13921 Equity Shares forfeited of INR 10/- each, INR 5/- paid up |
|
INR 0.100
Million |
|
|
|
|
INR 13578.700 Million |
(i) Reconciliation of number of shares and amount outstanding at the
beginning and end of the period
|
Particulars |
As at 31-March-17 |
|
|
|
No. of shares |
INR in Million |
|
Equity shares of INR 10/- each |
1377317895 |
13773.200 |
|
At the beginning of the period |
-- |
-- |
|
Add : Shares issued |
|
|
|
|
-- |
-- |
|
At the end of the period |
1377317895 |
13773.200 |
a) The above includes, 22485000 Equity shares alloted to the shareholders of Grabal Alok Impex Limited during the year end March 2012, pursuant to the Scheme of Amalgamation for consideration other than cash.
(ii) Shareholders holding more than 5 percent shares in the Company
|
Particulars |
As at 31-March-17 |
|
|
|
No. of shares |
% |
|
Alok Knit Exports Private Limited |
295479896 |
21.76 |
(iii) Rights,
preferences and restrictions attached to equity shares
The Company has single class of equity shares. Each shareholders is eligible for one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholding.
(iv) Shares reserved
for issue under options.
(v) During the year the Company was required to amend the
Authorized Share Capital of the Company to INR 40000.000 million from INR
15000.000 million through an Extra Ordinary General Meeting (EOGM) in order to
accommodate the conversion of debt into equity under the SDR provisions. A
Singapore based bank led consortium through their security trustee, Hong Kong
and Shanghai Banking Corporation (HSBC) filed a petition in the Bombay High
Court for winding up the company and further prayed for stalling the EOGM to
protect their interest. The Court, however, allowed the the EOGM to be
conducted on submission of an affidavit by the Company that the resolutions
passed at the EOGM for change in capital structure will not be implemented
without obtaining prior written approval from HSBC. The Company is intending to
file a letter to the Registrar of Companies, Ahmedabad citing the circumstances
due to which the change in capital structure cannot be implemented.
FINANCIAL DATA
[all figures are
in 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 |
13578.700 |
13578.700 |
13773.300 |
|
(b) Reserves &
Surplus |
16378.600 |
50720.300 |
40384.900 |
|
(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) |
29957.300 |
64299.000 |
54158.200 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
89561.300 |
79979.700 |
72235.000 |
|
(b) Deferred tax
liabilities (Net) |
0.000 |
6713.800 |
8682.600 |
|
(c) Other long term
liabilities |
0.000 |
28357.300 |
27643.500 |
|
(d) long-term provisions |
369.700 |
292.000 |
210.300 |
|
Total Non-current
Liabilities (3) |
89931.000 |
115342.800 |
108771.400 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
133898.800 |
106396.700 |
64276.600 |
|
(b) Trade payables |
11501.400 |
10240.700 |
33801.800 |
|
(c) Other current
liabilities |
57477.100 |
29513.100 |
30185.900 |
|
(d) Short-term provisions |
856.100 |
1130.400 |
2330.500 |
|
Total Current Liabilities
(4) |
203733.400 |
147280.900 |
130594.800 |
|
|
|
|
|
|
TOTAL |
323621.700 |
326922.700 |
293524.400 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
156332.300 |
163378.600 |
83065.700 |
|
(ii) Intangible Assets |
35.600 |
87.300 |
139.600 |
|
(iii) Capital
work-in-progress |
0.000 |
140.800 |
562.200 |
|
(iv) Intangible assets
under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
1353.200 |
2186.200 |
3481.500 |
|
(c) Deferred tax assets
(net) |
14231.100 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
10021.100 |
8949.700 |
17482.700 |
|
(e) Other Non-current
assets |
397.600 |
784.900 |
0.000 |
|
Total Non-Current Assets |
182370.900 |
175527.500 |
104731.700 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
28.100 |
|
(b) Inventories |
32106.000 |
80536.100 |
82845.800 |
|
(c) Trade receivables |
99404.600 |
59210.900 |
75317.500 |
|
(d) Cash and cash
equivalents |
3402.000 |
1378.800 |
6347.500 |
|
(e) Short-term loans and
advances |
4876.100 |
7508.600 |
22731.000 |
|
(f) Other current assets |
1462.100 |
2760.800 |
1522.800 |
|
Total Current Assets |
141250.800 |
151395.200 |
188792.700 |
|
|
|
|
|
|
TOTAL |
323621.700 |
326922.700 |
293524.400 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
81296.800 |
117487.500 |
221307.200 |
|
|
Other Income |
1656.900 |
2339.300 |
2248.200 |
|
|
TOTAL |
82953.700 |
119826.800 |
223555.400 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
74587.000 |
91160.500 |
102070.800 |
|
|
Purchases of
Stock-in-Trade |
0.000 |
0.000 |
0.000 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
935.500 |
5706.600 |
44555.900 |
|
|
Employees benefits
expense |
2833.100 |
2571.900 |
4125.900 |
|
|
Other expenses |
22996.500 |
46774.600 |
20098.700 |
|
|
TOTAL |
101352.100 |
146213.600 |
170851.300 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION
|
(18398.400) |
(26386.800) |
52704.100 |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
32735.200 |
27045.900 |
32511.600 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
(51133.600) |
(53432.700) |
20192.500 |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
5126.300 |
10163.900 |
14612.100 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
(56259.900) |
(63596.600) |
5580.400 |
|
|
|
|
|
|
|
Less |
TAX |
(21235.600) |
(21537.200) |
2092.800 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) FROM CONTINUING OPERATION |
(35024.300) |
(42059.400) |
3487.600 |
|
|
|
|
|
|
|
|
Other Comprehensive Income |
2.500 |
(0.300) |
0.000 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) FOR THE YEAR |
(35026.800) |
(42059.100) |
3487.600 |
|
|
|
|
|
|
|
|
PREVIOUS YEARS’ BALANCE
BROUGHT FORWARD |
37650.600 |
79588.000 |
23288.400 |
|
|
|
|
|
|
|
|
Earlier year excess
proposed dividend and dividend distribution tax |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
APPROPRIATIONS |
|
|
|
|
|
Transferred (to) / from
Debenture redemption reserve |
(5.000) |
(121.700) |
30.300 |
|
|
Balance Carried to the
B/S |
2628.800 |
37650.600 |
79588.000 |
|
|
|
|
|
|
|
|
EARNINGS IN FOREIGN
CURRENCY |
|
|
|
|
|
FOB
value of Export |
10028.500 |
11264.200 |
35138.2 |
|
|
TOTAL EARNINGS |
10028.500 |
11264.200 |
35138.200 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Capital Goods purchased |
|
20.200 |
310.100 |
|
|
Stores & Spares purchased |
|
391.200 |
140.300 |
|
|
Raw Material purchased |
|
5372.600 |
4685.100 |
|
|
Packing Materials purchased |
|
0.000 |
47.800 |
|
|
TOTAL IMPORTS |
NA |
5784.000 |
5183.300 |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
|
|
|
|
Basic |
(25.79) |
(30.97) |
2.53 |
|
|
Diluted |
(25.79) |
(30.97) |
2.53 |
Expected Sales (2017-2018): INR 84916.000 Million
The above information has been parted by Mr. Kalpesh Shah [Vice President
Legal and Secretary]
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term borrowings |
17938.100 |
14639.200 |
16955.000 |
|
Cash (used in) / generated from operations |
NA |
(24532.300) |
34827.000 |
|
Net cash (used in) / generated from operating activities |
NA |
(24604.800) |
33737.600 |
QUARTERLY
RESULTS
|
PARTICULARS |
30.06.2017 |
30.09.2017 |
31.12.2017 |
|
|
Unaudited |
Unaudited |
Unaudited |
|
|
1ST Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
27932.100 |
7945.800 |
9523.500 |
|
Total Expenditure |
85086.500 |
42694.300 |
47571.700 |
|
PBIDT (Excl OI) |
(57154.400) |
(34748.500) |
(38048.200) |
|
Other Income |
484.100 |
571.000 |
244.500 |
|
Operating Profit |
(56670.300) |
(34177.500) |
(37803.700) |
|
Interest |
8374.600 |
19655.900 |
8380.800 |
|
Exceptional Items |
NA |
NA |
NA |
|
PBDT |
(65044.900) |
(53833.400) |
(46184.500) |
|
Depreciation |
1340.100 |
1265.500 |
1268.800 |
|
Profit Before Tax |
(66385.000) |
(55098.900) |
(47453.300) |
|
Tax |
NA |
(26.100) |
NA |
|
Provisions and contingencies |
NA |
NA |
NA |
|
Profit After Tax |
(66385.000) |
(55072.800) |
(47453.300) |
|
Extraordinary Items |
NA |
NA |
NA |
|
Prior Period Expenses |
NA |
NA |
NA |
|
Other Adjustments |
NA |
NA |
NA |
|
Net Profit |
(66385.000) |
(55072.800) |
(47453.300) |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days [Sundry Debtors / Income *
365] |
446.30 |
183.95 |
124.22 |
|
|
|
|
|
|
Account Receivables Turnover [Income / Sunday
Debtors] |
0.82 |
1.98 |
2.94 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors / Purchases * 365 Days) |
56.28 |
41.00 |
120.87 |
|
|
|
|
|
|
Inventory Turnover (Operating Income / Inventories) |
(0.57) |
(0.33) |
0.64 |
|
|
|
|
|
|
Asset Turnover (Operating Income / Net Fixed Assets) |
(0.12) |
(0.16) |
0.63 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing
+ Current Liabilities) / Total Assets) |
0.91 |
0.70 |
0.69 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability / Networth) |
7.46 |
2.90 |
2.52 |
|
|
|
|
|
|
Current Liabilities to Networth (Current Liabilities / Net Worth) |
6.80 |
2.29 |
2.41 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets / Networth) |
5.22 |
2.54 |
1.55 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial Charges) |
(0.56) |
(0.98) |
1.62 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) * 100) |
% |
(43.09) |
(35.80) |
1.58 |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total Assets) * 100) |
% |
(10.82) |
(12.87) |
1.19 |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth) * 100) |
% |
(116.92) |
(65.41) |
6.44 |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current
Assets / Current Liabilities) |
0.69 |
1.03 |
1.45 |
|
|
|
|
|
|
Quick Ratio ((Current Assets – Inventories) / Current
Liabilities) |
0.54 |
0.48 |
0.81 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total Assets) |
0.09 |
0.20 |
0.18 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity Capital) |
16.46 |
13.73 |
9.91 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current Assets / Total Current Liabilities) |
0.69 |
1.03 |
1.45 |
Total
Liability = Short-term Debt + Long-term Debt + Current Maturities of Long-term
debts
STOCK
PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 3.16/- |
FINANCIAL ANALYSIS
[all figures are
in Indian Rupees Million]
DEBT EQUITY RATIO
|
Particulars |
31.03.2015 |
31.03.2016 |
31.03.2017 |
|
|
INR
In Million |
INR
In Million |
INR
In Million |
|
Share Capital |
13773.300 |
13578.700 |
13578.700 |
|
Reserves & Surplus |
40384.900 |
50720.300 |
16378.600 |
|
Share Application money pending
allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
54158.200 |
64299.000 |
29957.300 |
|
|
|
|
|
|
long-term borrowings |
72235.000 |
79979.700 |
89561.300 |
|
Short term borrowings |
64276.600 |
106396.700 |
133898.800 |
|
Current Maturities of Long
term debt |
16955.000 |
14639.200 |
17938.100 |
|
Total
borrowings |
153466.600 |
201015.600 |
241398.200 |
|
Debt/Equity
ratio |
2.834 |
3.126 |
8.058 |
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 |
221307.200 |
117487.500 |
81296.800 |
|
|
|
(46.912) |
(30.804) |
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 |
221307.200 |
117487.500 |
81296.800 |
|
Profit/ (Loss) |
3487.600 |
(42059.100) |
(35026.800) |
|
|
1.58% |
(35.80%) |
(43.09%) |
ABRIDGED
BALANCE SHEET [CONSOLIDATED]
|
SOURCES OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
13578.700 |
13578.700 |
|
(b) Reserves &
Surplus |
|
3345.100 |
31973.100 |
|
(c) Money received
against share warrants |
|
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
|
0.000 |
0.000 |
|
Total Shareholders’ Funds
(1) + (2) |
|
16923.800 |
45551.800 |
|
|
|
|
|
|
(3) Non-Current
Liabilities |
|
|
|
|
(a) long-term borrowings |
|
92617.600 |
87087.800 |
|
(b) Deferred tax liabilities
(Net) |
|
0.000 |
10334.100 |
|
(c) Other long term
liabilities |
|
0.200 |
28357.400 |
|
(d) long-term provisions |
|
372.400 |
293.900 |
|
Total Non-current
Liabilities (3) |
|
92990.200 |
126073.200 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
141812.700 |
115628.500 |
|
(b) Trade payables |
|
14562.300 |
13778.100 |
|
(c) Other current
liabilities |
|
59933.400 |
31652.900 |
|
(d) Short-term provisions |
|
867.500 |
1144.600 |
|
Total Current Liabilities
(4) |
|
217175.900 |
162204.100 |
|
|
|
|
|
|
TOTAL |
|
327089.900 |
333829.100 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
158601.300 |
166352.700 |
|
(ii) Intangible Assets |
|
30.400 |
94.600 |
|
(iii) Capital
work-in-progress |
|
60.800 |
410.000 |
|
(iv) Intangible assets
under development |
|
0.000 |
0.000 |
|
(b) Non-current
Investments |
|
10869.300 |
11886.900 |
|
(c) Deferred tax assets
(net) |
|
12255.900 |
0.000 |
|
(d) Long-term Loan and Advances |
|
83.000 |
91.000 |
|
(e) Other Non-current
assets |
|
597.400 |
1673.000 |
|
Total Non-Current Assets |
|
182498.100 |
180508.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
33296.700 |
82998.900 |
|
(c) Trade receivables |
|
100697.400 |
60410.300 |
|
(d) Cash and cash
equivalents |
|
3581.100 |
1694.600 |
|
(e) Short-term loans and
advances |
|
814.500 |
1.900 |
|
(f) Other current assets |
|
6202.100 |
8215.200 |
|
Total Current Assets |
|
144591.800 |
153320.900 |
|
|
|
|
|
|
TOTAL |
|
327089.900 |
333829.100 |
PROFIT
& LOSS ACCOUNT [CONSOLIDATED]
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
87230.500 |
129239.700 |
|
|
Other Income |
|
666.200 |
1115.800 |
|
|
TOTAL |
|
87896.700 |
130355.500 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials
Consumed |
|
77697.000 |
91862.100 |
|
|
Purchases of
Stock-in-Trade |
|
369.800 |
5123.800 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
1334.400 |
5852.000 |
|
|
Employees benefits
expense |
|
3290.300 |
4964.500 |
|
|
Share of profit |
|
111.100 |
142.800 |
|
|
Other expenses |
|
19108.800 |
48599.200 |
|
|
TOTAL |
|
101911.400 |
156544.400 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION
|
|
(14014.700) |
(26188.900) |
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
|
34418.000 |
28735.600 |
|
|
|
|
|
|
|
|
PROFIT / (LOSS) BEFORE
TAX, DEPRECIATION AND AMORTISATION |
|
(48432.700) |
(54924.500) |
|
|
|
|
|
|
|
Less |
DEPRECIATION/
AMORTISATION |
|
5607.000 |
10627.900 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) BEFORE TAX |
|
(54039.700) |
(65552.400) |
|
|
|
|
|
|
|
Less |
TAX |
|
(23208.300) |
(21981.300) |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS) AFTER TAX
|
|
(30831.400) |
(43571.100) |
|
|
|
|
|
|
|
|
Earnings / (Loss) Per
Share (INR) |
|
|
|
|
|
Basic |
|
(22.39) |
(31.63) |
|
|
Diluted |
|
(22.39) |
(31.63) |
LEGAL CASES
|
CASE DETAILS BENCH – BOMBAY |
||||
|
Presentation date: 11.03.2016 |
||||
|
|
||||
|
||||
|
|
||||
|
Main Matter Lodging No.: CPL/194/2016 |
||||
|
|
||||
|
Petitioner:- The
Honkong and Shanghai Banking
Respondent:- ALOK INDUSTRIES LIMITED |
||||
|
Bench:- SINGLE Category:-
CA For Others
Next Date: 19.07.2017 Coram: HON’BLE SHRI
JUSTICE A S. GADKARI
Last Coram:-
HON'BLE SHRI JUSTICE B P COLABAWALLA |
||||
|
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
Yes |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
Yes |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
Yes |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
No |
|
32 |
Litigations that the firm/promoter involved
in |
Yes |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
Yes |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
CORPORATE INFORMATION
Subject is a public limited company, domiciled in India and incorporated under the provisions of the Companies Act, 1956. The equity shares of the Company are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). It is primarily engaged in the business of textile manufacturing including mending and packing activities.
The financial statements were authorised for issue in accordance with a resolution of the board of directors on 30 May 2017.
RESULTS OF OPERATIONS
AND THE STATE OF COMPANY’S AFFAIRS
The total sales of the Company for the year amounted to INR 83260.600 million including exports (with incentives) of INR 10829.800 million.
The loss before tax was INR 56259.600 million mainly due to sub-optimum level of manufacturing operations, lower profitability, provision for doubtful advances, higher interest burden and depreciation.
MANAGEMENT DISCUSSION AND ANALYSIS
Economic Overview
World
2016 was a positive year for the global economy with constant good economic news. The “World Economic Outlook” report by IMF has projected the global economic growth at 3.5% in 2017 from 3.1% in 2016. The global economy performed especially well in the fourth quarter of 2016 and the momentum generated is likely to persist in 2017 also. Condition of emerging markets & developing economies is likely to improve in the current scenario as the hurdles to growth of commodity exports from these nations is gradually going down while on the other hand demand of commodity importers is still solid. In case of advanced economies, economic activities are likely to gain momentum owing to the higher projected growth of US. Other major consumption regions like EU and Japan have also reflected strong growth forecast due to their increasing domestic demand and exports. However, there are some negative revision to the growth forecasts which aroused due to the structural changes happening across the world including slow trade liberalization (TPP agreement), consolidation of manufacturing in China, policy uncertainty etc.
Chart A illustrates the growth in the overall global economy along with advanced and emerging economies. Advanced economies have shown marginal increase at their levels of growth – 1.9% in CY2015 compared to 2.0% in CY2017, emerging markets and developing economies saw growth from 4.0% in CY2015 to 4.5% in CY2017.
As illustrated from the graph, growth in the emerging & developing economies have strengthened over the last three years. Stable commodity prices, recovering manufacturing activity, increasing investments, and strengthening confidence are driving the growth in these nations. This retrieval of growth will impact nearly 70% of such emerging and developing nations.
US elections have resulted in a stronger dollar due to expectations of a slacker fiscal policy. After the elections, market sentiments have been strong resulting in gains in both advanced and emerging markets. Commodity prices have also recovered owing to solid global demands and agreements on restriction on oil supply. Chart B indicates a fall in the oil prices between 2015 and 2016 and a trend towards price stabilization in the first quarter of 2017.
Advanced economies have shown stable economic growth irrespective of the policy uncertainty that is looming around. Output gaps are narrowing in these economies and a solid recovery is expected in the near future. Increasing investments, improving import demand and rising exports have contributed in the overall recovery of global trade.
US showed growth slowdown in 2016 mainly due to weak investments and exports. However, it is expected to recover in 2017 due to strengthening private investments, diminishing economic slack and improvement in the labour market conditions. However, there are certain challenges still present such as steep decline in capital expenditure in the energy sector, slow wage and productivity growth, lower job flows, underemployment and large unused capacities in manufacturing. Under the new government, expected tax cuts and infrastructural programs might lead to robust growth, however, if substantial changes are made in the policies over a short period of time, it might lead to disruption in the economic activities between US & its trading partners.
European region experienced good growth in 2016 owing to rise in manufacturing activity and exports. Unemployment rate fell continuously in 2016 although it is still higher than structural norms. Inflation has risen in the region due to increase in energy prices but it is still under the expected levels. Overall, the growth is expected to maintain at a good level in the near future at an estimated 1.2% (European Commission, 2017). However, these growth prospects are clouded by growing uncertainties of the political and economic environment in the European region due to BREXIT, high levels of non-performing bank loans and policy uncertainty in US, EU’s largest export destinations.
India
2016-17 was marked by two major policy changes in the Indian economy, passing of the GST bill and the step to demonetize the two biggest currency notes. The former decision is aimed at bringing a common tax regime in the country in order to improve tax compliance, governance and to enhance investment and growth. The latter had some harsh short term cost to the public but it is expected to reap a good result in the longer run. However, these major changes have not affected the Indian economy in adverse fashion.
As Chart C shows, real GDP growth was improving steadily from a low of 6.6% in FY2014 to 7.6% in FY2016. But in FY2017, it dropped down to 7.1% owing to the effects of demonetization and decline in fixed investment, however India’s economy recovered well to attain respectable levels. Hence, India still stands as one of the fastest growing large economy in the world.
Trends in the other macroeconomic factors such as inflation, fiscal deficit and trade deficit have been encouraging. Inflation rates declined to a level of 3.4% in December 2016 end. This fall in inflation was characterized by the fall in CPI which was attributed to the high production of agricultural commodities and subsequent decline in their prices. The second contributing factor was the revival of WPI inflation from a level of -5.1% in 2015-16 to 3.4 % in 2016-17 primarily due to increase in international oil prices.
The current account deficit of the country has declined to reach a level of 0.3% (first half of FY 2017) of GDP while the trade deficit has declined by 23.5% in 2016-17 (Apr to Dec) over the last year. This was due to a steeper fall in imports as compared to fall in exports. However, recovery was observed in exports and imports of the country owing to the improvements in the world economy. Trends in the fiscal sector are also encouraging. Fiscal deficit of the country has reduced from a level of 4.5% of GDP in 2013- 14 to 3.5% of GDP in 2016-17.
From a global context, three changes in the global market are likely to have a significant effect on the Indian economy. US election results and the expected changes in their monetary and fiscal policy will have an impact on the global interest rates and also on India’s exchange rates and capital flows. The second change is the change in the political outlook of advanced nations which are focusing on making more protectionist policies. This change in the outlook of major markets will affect India’s exports and growth prospects. The third factor is China’s efforts of balancing its economy in the wake of rising US Dollar. If China is able to stabilize its economy and the falling ‘Yuan’ then it would result in a positive impact on the world as well as Indian economy. However, if China fails to achieve this, a further fall in Yuan would create trade frictions which will have a negative impact on India
Textiles Business:
Operations Review
Overview
Alok is into a single segment business i.e. Textiles. In Textiles Alok draws its strength from being present across the value chain, both in cotton and polyester. Each of its products has domestic as well as export markets. Within Textiles, Alok’s business mainly comprises of Cotton Spinning, Apparel Fabrics (Wovens and Knits), Home Textiles (sheeting & terry towels), Garments and Polyester Yarn. The division wise sales and its bifurcation into domestic and export is given in Table 8 and Chart J below:
Chart J shows that woven apparel fabric continues to have the highest share of sales accounting for 60.08% (Previous Year 74.39%). This is followed by polyester yarn whose share has increased from 14.60% in the previous year to 23.99% in the current year, followed by cotton yarn whose share increased to 6.85% as compared to 3.40% in the previous year. Next is sheeting whose share also increased to 6.64% in the current year from 4.71 % in the previous year. The share of Terry Towel came down to .82% as compared to 1.53% in the previous year. The share of garments for the current year was 0.55% as compared to 0.62% in the previous year.
UNSECURED LOANS
|
UNSECURED LOANS |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
From banks |
|
|
|
Rupee Loans |
0.000 |
304.100 |
|
Foreign currency loans |
0.000 |
200.500 |
|
Other loans &
advances |
|
|
|
Vehicle loan from Banks [(Secured by vehicles under hypothecation with banks)] |
1.300 |
12.700 |
|
Total |
1.300 |
517.300 |
|
|
|
|
|
SHORT TERM BORROWINGS |
|
|
|
Foreign currency
loans |
|
|
|
From Banks |
438.800 |
265.200 |
|
From Financial
Institutions |
0.000 |
0.000 |
|
From Banks |
165.000 |
0.000 |
|
Foreign currency
loans |
5962.900 |
3599.500 |
|
Inter Corporate
Deposit |
68.100 |
91.000 |
|
Total |
6634.800 |
3955.700 |
INDEX
OF CHARGES:
|
S.no |
Sr. n |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G43777663 |
100097204 |
AXIS BANK LIMITED |
03/04/2017 |
- |
- |
350000000.0 |
12,A, FIRST FLOOR, MITTAL TOWER, NARIMAN POINT, MUMBAI – 400021, MAHARASHTRA, INDIA |
|
2 |
G28445948 |
100063885 |
NEW INDIA CO-OP BANK LIMITED |
15/11/2016 |
- |
- |
220000000.0 |
NEW INDIA BHAVAN, ANANT VISHRAM NAGWEKAR MARG, BABASAHEB WORLIKAR CHOWK, PRABHADEVI, MUMBAI – 400025, MAHARASHTRA, INDIA |
|
3 |
G20748760 |
100058905 |
CENTRAL BANK OF INDIA |
28/09/2016 |
- |
- |
200000000.0 |
CORPORATE FINANCE BRANCH,1ST FLOOR, MMO BUILDING, FORT, MUMBAI – 00023, MAHARASHTRA, INDIA |
|
4 |
G33766585 |
100051656 |
SBICAP TRUSTEE COMPANY LIMITED |
31/08/2016 |
27/12/2016 |
- |
16663900000.0 |
202, MAKER TOWER E, CUFFE PARADE, MUMBAI-400005, MAHARASHTRA, INDIA |
|
5 |
G33183385 |
100047359 |
SBICAP TRUSTEE COMPANY LIMITED |
12/08/2016 |
27/12/2016 |
- |
16800000000.0 |
202, MAKER TOWER E, CUFFE PARADE, MUMBAI – 400005, MAHARASHTRA, INDIA |
|
6 |
G08635278 |
100042138 |
BANK OF BARODA |
21/07/2016 |
- |
- |
200000000.0 |
CORPORATE FINANCIAL SERVICES BRANCH,1ST FLOOR, WALCHAND HIRACHAND MARG, BALLARD PIER, MUMBAI-400001, MAHARASHTRA, INDIA |
|
7 |
G40261059 |
100043735 |
AXIS BANK LIMITED |
21/07/2016 |
16/03/2017 |
- |
200000000.0 |
12-A, MITTAL TOWER, 1ST FLOOR, NARIMAN POINT, MUMBAI - 400021, MAHARASHTRA, INDIA |
|
8 |
G08911885 |
100042942 |
IDBI BANK LIMITED |
02/07/2016 |
- |
- |
200000000.0 |
IDBI TOWER, WTC COMPLEX, CUFFE PARADE, MUMBAI – 400005, MAHARASHTRA, INDIA |
|
9 |
G08130858 |
100040462 |
THE JAMMU AND KASHMIR BANK LIMITED |
30/06/2016 |
- |
- |
100000000.0 |
79A, MEHTA HOUSE, BOMBAY SAMACHAR MARG, FORT, MUMBAI – 400023, MAHARASHTRA, INDIA |
|
10 |
G00406199 |
100016581 |
AXIS BANK LIMITED |
10/03/2016 |
- |
- |
1034600000.0 |
12,A, FIRST FLOOR, MITTAL TOWER, NARIMAN POINT, MUMBAI – 400021, MAHARASHTRA, INDIA |
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER ENDED AND NINE MONTHS ENDED 31ST DECEMBER
2017
(INR in Million)
|
PARTICULARS |
quarter ended |
quarter ended |
Nine months ended |
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
|
[Unaudited] |
[Unaudited] |
[Unaudited] |
|
1. Income from Operations |
|
|
|
|
Sales/income from
operations |
9523.500 |
7945.800 |
45401.400 |
|
Other Operating Income |
244.500 |
571.000 |
1299.600 |
|
Total income from operations |
9768.000 |
8516.800 |
46701.000 |
|
|
|
|
|
|
Expenses |
|
|
|
|
Cost of materials consumed |
5973.400 |
5410.500 |
46346.300 |
|
Changes in inventories of finished goods. work-in-progress and stock
in trade |
765.100 |
(677.700) |
46.200 |
|
Excise duty |
-- |
-- |
483.300 |
|
Employee benefits expense |
700.900 |
733.300 |
2119.200 |
|
Finance Costs |
8380.800 |
19655.900 |
2119.200 |
|
Depreciation and Amortization Expenses |
1268.800 |
1265.500 |
3874.300 |
|
Other Expenses |
2917.200 |
2224.800 |
7428.300 |
|
Bad Debts Written Off |
5855.100 |
-- |
5855.100 |
|
Provision for doubtful debts and advances |
31360.000 |
35003.400 |
113074.300 |
|
Total expenses |
57221.300 |
63615.700 |
215638.300 |
|
Profit after finance cost but before exceptional items |
(47453.300) |
(55098.900) |
(168937.300) |
|
Exceptional items – Income |
|
|
|
|
Profit before tax |
|
|
|
|
Tax expenses |
-- |
(26.100) |
(26.100) |
|
Net Profit for the period |
(47453.300) |
(55072.800) |
(168911.200) |
|
|
|
|
|
|
Other comprehensive expenses/ (income), net to income tax |
|
|
|
|
a. item that will not be reclassified to
profit or loss |
-- |
-- |
-- |
|
b. item that will be reclassified to profit
or loss |
-- |
-- |
-- |
|
Total other comprehensive expenses/ (income), net to income tax |
(47453.300) |
(55072.800) |
(168911.200) |
|
Paid up equity share capital (Eq. shares of INR 10/- each) |
1357.870 |
1357.870 |
1357.870 |
|
Earning per share (of INR 10 each) (not annualised) |
|
|
|
|
Basic |
|
|
|
|
Diluted |
(34.95) |
(40.56) |
(124.39) |
|
Notes:
|
|||
CONTINGENT
LIABILITIES:
|
Particulars |
31.03.2017 (INR
In Million) |
31.03.2016 (INR
In Million) |
|
Bank guarantees
given |
|
|
|
Relating to Joint Ventures |
100.000 |
100.000 |
|
Others |
4.700 |
3.400 |
|
Corporate guarantees / Standby Letter of Credit given to banks for loans taken by subsidiary companies |
1326.100 |
8860.700 |
|
Bills discounted |
701.300 |
432.600 |
|
Claims against the
Company not acknowledged as debts : |
|
|
|
Income taxes |
283.800 |
82.100 |
|
Maharashtra value added tax |
80.700 |
80.700 |
|
Other tax demands |
15.700 |
15.700 |
|
Others – disputes under litigation |
1389.100 |
744.000 |
|
Certain cases were fi led by the lenders/ suppliers in respect of dishonour of cheque issued for repayment of borrowings including interest and outstanding dues and further interest till non-payment |
Amount Unascertained |
Amount Unascertained |
|
Certain cases were fi led/notices issued by the lenders in respect of delayed / non-payment of borrowings including interest by the Company or it’s subsidiary company and further interest till non-payment |
Amount Unascertained |
Amount Unascertained |
|
The Company has issued letters for providing financial support to certain subsidiaries |
Amounts are not quantifiable |
Amounts are not quantifiable |
FIXED ASSETS:
Tangible Assets
· Land
· Buildings
· Plant and Equipment
· Furniture and Fixtures
· Vehicles
· Office Equipment
·
Computer and Peripherals
· Office Premises
- Tools and Equipment
Intangible Assets
- Trademarks / Brands
- Computer Software
PRESS RELEASE
INDIAN BANKERS SET TO
REWRITE CORPORATE HISTORY
Feb 12 2018
On Tuesday evening, the CEOs of some of India’s biggest banks were on a panel discussing the changing banking landscape, at Mint’s annual banking conclave at a south Mumbai hotel. Ahead of this, they had been ushered into the speakers’ lounge where they were expected to pore over the finer points of the evening’s discussion over coffee and cookies. Instead, most of them seemed busy checking e-mails and text messages on their mobile phones and trying to figure out, in hushed voice, what was happening to the bids for troubled steel-maker Bhushan Steel Limited, one among the 12 cases identified by the Reserve Bank of India (RBI) in the first round in June 2017 for bankruptcy proceedings. The bids, submitted on 3 February at Deloitte’s office at DLF Cyber City Complex Gurgaon, Haryana, were to open that evening.
Nothing can illustrate better the changing landscape in Indian banking. Corporations in India can no longer get away by not paying the dues of the lenders. If they are not in a position to pay back, their assets will be auctioned. Later, at the panel discussion, State Bank of India chairman Rajnish Kumar said the promoters of defaulting companies have no longer been ducking calls from bankers; they are willing to sit across table and discuss.
They better do that as they are left with very little choice. At a recent function in Kolkata, Raghu Mody, chairman of Rasoi Limited and former president of industry body Assocham, succinctly summed up the new regime in Indian banking, when he said that earlier the promoters used to borrow from banks with an informal understanding that they would not have to pay back; now, if they want to borrow they must remember that they would need to return the money. The Insolvency and Bankruptcy Code, 2016 (IBC) was passed in May 2016, changing the legal framework for insolvency resolution in India for ever. The provisions relating to corporate insolvency were notified in November 2016 and within weeks the first case of insolvency was admitted in the National Company Law Tribunal (NCLT), a quasi-judicial tribunal, which enjoys the adjudication powers under IBC.
Going by media reports, JSW Steel Limited and Piramal Enterprises Limited have jointly offered to pay INR 297000.000 million to lenders of Bhushan Steel, the largest manufacturer of auto-grade steel in India, which had a INR 423550.000 million debt on its books in March 2017. The joint bidders are willing to pay INR 280000.000 million upfront and invest another INR 17000.000 million in the company in equity and expand production capacity by 40%. Tata Steel Limited has also made a bid for Bhushan Steel for around INR 240000.000 million. Yet another bidder is a group of 500-odd employees of the company—this, however, is unlikely to succeed as the bid is not supported by a bank guarantee.
Tata Steel and JSW Steel have also submitted bids for Bhushan Power and Steel Limited, which owes around INR 37,000 crore to its lenders. Over a dozen companies had earlier submitted the so-called expressions of interest for Bhushan Power and Steel, but only two stuck around and went for the final bids. Bhushan Power and Steel is the ninth of the 12 companies whose assets are being sold to the highest bidders. The others include Monnet Ispat and Energy Limited, Electrosteel Steels Limited, Jyoti Structures Limited, Amtek Auto Limited, Alok Industries Limited, Lanco Infratech Limited, and Jaypee Infratech Limited, besides Bhushan Steel. None of these resolution plans has been cleared yet.
The law provides for a time-bound resolution within 180 days, with a provision to extend the deadline by another 90 days. This means, the resolution process must end within 270 days, a deadline that will expire for all the 12 companies by February-end. But the government is likely to extend the deadline by 60 days. A recent media report, citing unnamed finance ministry officials, indicated that the extension would be provided to only those companies that are already undergoing the insolvency resolution process. The same report also said the prospective investors have been reassured by the government over concerns such as forest clearances and stamp duty exemptions. The promoters of the insolvent companies are barred from bidding.
The Economic Survey 2017-18 gives us a sense of the progress of bad asset resolutions. Describing the IBC resolution process as “a valuable technology for tackling this long-standing problem in the Indian corporate sector”, it says that of the 525 insolvency petitions filed in the NCLT, 30 companies are being liquidated, 10 have got their resolution plans approved, 36 have been closed by appeal or review and the rest are still going through the process. The lenders have been able to recover INR 18544.000 million out of the total claims of INR 55303.000 million, roughly one-third of the outstanding debt.
The rate of recovery is not uniform—among the 10 companies where resolution plans have been finalized, recoveries vary between 6% and 100%. Lenders could recover INR 547.000 million out of total claims of INR 9722.000 million in the case of Synergies Dooray Automotive Limited, but the entire exposure of INR 34.000 million was recovered in the case of Prowess International Private Limited. According to the Economic Survey, the insolvency procedure is still work-in-progress, and resolving the cases in a time-bound manner with an efficient bidding process is critical for establishing the credibility of the new architecture.
No one can deny the fact that the insolvency law is the biggest reform in the Indian banking sector, which has changed the body language of both bankers as well as the promoters of their borrowers. While the banking community looks confident and aggressive in chasing loan defaulters, the defaulting promoters are no longer looking at bad loans as the problem of bankers; they have realized that it’s their problem and they would need to come forward to solve it.
In this context, I am tempted to quote from the judgement of the high court of Gujarat (dated 17 July 2017) on the special leave application filed by Essar Steel Limited, challenging the RBI decision directing banks to initiate insolvency proceedings against 12 companies, including Essar. It says, “(The) petitioner company is in debt of more than INR 450000.000 million for couple of years, its NPA (non-performing assets) was more than INR 320000.000 million in last year and more than INR 310000.000 million in previous year. It is also clear that when total debt is more than INR 450000.000 million, there is no option but to leave the issue at the discretion of the lenders to take appropriate steps in accordance with law…”
If the lenders continue to take “appropriate steps in accordance with the law”, many promoters run the risk of losing their empires. Armed with the insolvency code, Indian bankers are set to rewrite the corporate history.
Tamal Bandyopadhyay, consulting editor at Mint, is adviser to Bandhan Bank. His latest book, From Lehman to Demonetization: A Decade of Disruptions, Reforms and Misadventures has recently been released.
KOTAK MAHINDRA,
EDELWEISS UNITS IN RACE FOR ALOK INDUSTRIES
Feb 15, 2018
At least four potential suitors, including the distressed funds of Kotak Mahindra BSE 0.36 % and Edelweiss BSE 0.10 %, have expressed interest in bidding for bankrupt textile company Alok Industries BSE -2.03 % Limited, said two people familiar with the development.
Alok Industries is among the 12 defaulters that the Reserve Bank of India
ordered to be referred to bankruptcy court in June last year, having defaulted
on more than INR 290000.00 crore of debt as its diversification exercise ran
into trouble. The company was admitted to the insolvency process by the
National Company Law Tribunal’s Ahmedabad bench on July 19
The resolution professional for Alok did not respond to a query from ET. Asset
Reconstruction Company (India) Limited (Arcil) and a company associated with
infrastructure lending group Srei are the other two bidders.
“We have received four expressions of interest so far," said one of the
two people cited above. “All resolution plans do not cover the entire company,
but for various divisions, which are quite different from each
other."
Among the top 12 companies, Alok has seen bids getting invited twice since there were none the first time around after the bankruptcy process got underway in October.
Reliance IndustriesBSE 0.05 % has not participated although it had examined a
plan to bid for a part Alok’s assets, said the second person, amid speculation
that this might stem from a Securities & Exchange Board of India (Sebi)
order with regard to securities laws violations.
“They are most likely staying away from the bid process because of the Sebi
ban, which makes them ineligible under the bankruptcy law," said the first
person.
The regulator had barred Reliance Industries last March from dealing in the
equity derivatives futures and options segment for a period of one year,
directly or indirectly, for allegedly indulging in fraudulent trades in
Reliance Petroleum in 2007. Reliance Industries declined to comment.
“As a policy, we do not comment on media speculation and rumours,” a spokesman
said in an emailed response to ET.
“Our company evaluates various opportunities on an ongoing basis. We have made
and will continue to make necessary disclosures in compliance with our
obligations under Securities & Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations 2015 and our agreements with the stock
exchanges."
While the bankruptcy law has been designed to prevent promoters from regaining
control of their companies, some of the provisions may be keeping out genuine
bidders, said an expert.
“Section 29A (f) of the IBC (Insolvency and Bankruptcy Code) could have a
potential impact on several bidders who have been barred by the securities
regulator," said Sumant Batra, managing partner, Kesar Dass, a law firm
specialising in bankruptcies.
“I believe that the government may have to soon look at some of these clauses
prohibiting potential suitors, otherwise many of the bankruptcy cases will have
to go to liquidation for mere technicalities of the law.”
ALOK INDUSTRIES'
INSOLVENCY PRO CALLS FOR FRESH BIDS TO ATTRACT MORE PLAYERS
Dec
27, 2017
MUMBAI: The insolvency professional supervising the Alok Industries bankruptcy process has called for fresh bids to resolve the INR 290000.000 Million default in the hope of attracting more bidders for the textile company, said two people with knowledge of the matter.
“Alok was the only company among the 12 listed by Reserve Bank of India (RBI)
to be referred to bankruptcy that did not receive any bids when the insolvency
professional invited expressions of interest (EoIs),” said one of the
two.
“Therefore, it was decided to go for a fresh round of bidding for the company.” The last date for EoI submissions had been October 12.
ET had reported in early November, after the deadline was over, that Reliance
Industries 0.05 % may be interested in participating in the process. Last week,
ET reported that a group of Alok Industries -2.03 %
employees wanted to take part.
Resolution professional Ajay Joshi, on Tuesday, invited “interested applicants including those who have not submitted an EoI before to now submit a resolution plan as per the Insolvency and Bankruptcy Code.”
Applicants have to submit an EoI to participate in the resolution plan. Only they will have access to the financial and technical data room, key to submitting a binding bid.
“Considering these factors, it was decided to go for a fresh EoI round so that Reliance Industries, employees and new investors can participate in the resolution plan,” said a bank official. No deadline has been indicated.
The company faces claims to the tune of INR 295190.000 Million from financial creditors and INR 6240.000 Million from operational creditors. While inviting EoIs, the resolution professional has said that only those companies with a net worth of INR 5000.000 Million and INR 30000.000 Million of assets under management will be eligible to participate. A participant should also have the ability to invest INR 5000.000 Million as equity capital in the company.
Alok Industries is a fully integrated textile unit with four core divisions —
cotton yarn, apparel fabric, home textile and polyester yarn. Reliance
Industries is interested mainly in the polyester yarn unit.
Lenders had attempted to revive the company through a strategic debt
restructuring (SDR) scheme. This allows them to convert part of their debt into
equity and sell it to a new promoter. This got stuck following an order by the
Bombay High Court that stayed the sale of assets and a change in the company’s
equity structure.
The court issued the order following a petition filed by HSBC on behalf of a
few unsecured lenders to settle dues amounting to $55 million. The account was
classified as non-performing in the books of the bank by November 2016. The
company posted a loss of INR 35020.000 Million on revenue of INR 83260.000
Million in the year ended March 2017.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
INR |
|
US Dollar |
1 |
INR 64.92 |
|
|
1 |
INR 90.22 |
|
Euro |
1 |
INR 80.54 |
INFORMATION DETAILS
|
Information
Gathered by : |
SVT |
|
|
|
|
Analysis Done by
: |
NYT |
|
|
|
|
Report Prepared
by : |
SUJ |
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)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.