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MIRA INFORM REPORT
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Report No. : |
497405 |
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Report Date : |
12.03.2018 |
IDENTIFICATION DETAILS
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Name : |
NAHAR INDUSTRIAL ENTERPRISES LIMITED (w.e.f.21.10.1994) |
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Formerly Known
As : |
OSWAL FATS AND OILS LIMITED |
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Registered
Office : |
Focal Point, Ludhiana – 141010, Punjab |
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Tel. No.: |
91-161-2672590 |
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Country : |
India |
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Financials (as
on) : |
31.03.2017 |
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Date of
Incorporation : |
27.09.1983 |
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Com. Reg. No.: |
16-018321 |
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Capital
Investment / Paid-up Capital : |
INR 400.342 Million |
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CIN No.: [Company Identification
No.] |
L15143PB1983PLC018321 |
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IEC No.: [Import-Export Code No.] |
1288041560 |
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TIN No.: |
03981086011 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
JLDN00400B |
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GSTN : [Goods & Service Tax
Registration No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Subject engaged in the business of Textiles and Sugar. (Registered activity) |
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No. of Employees
: |
10473 (Approximately) |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Maximum Credit Limit : |
USD 20000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Slow and Delayed |
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Litigation : |
Clear |
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Comments : |
Subject is part of the Ludhiana based NAHAR GROUP. It was incorporated in September 1983 as Oswal Fats and Oils Limited and in the year 1994 name changed to present one. The company has started with manufacturing of fatty acid, toilet soaps and vanaspati ghee and it has over the years completely diversified into the textile business with limited presence in sugar business as well, both through capacity expansion and merger of the group companies. The company is presently primarily engaged in spinning, weaving and fabric processing activities. Furthermore, company also has a sugar unit with a capacity of crushing 4000 tons of sugarcane per day. For the financial year ended 2017, the revenue of the company has decreased by 2.48% but managed to maintain average profit margin of 4.05%. The healthy financial profile of the company is marked by strong networth base along with comfortable debt coverage indicators. Rating continues to take into account company’s large scale of operations with one of the largest domestic capacities for spinning and weaving which results in operational efficiencies on account of economies of scale backed by the its well-established track record of operations in the textile business and established market presence and distribution network. Rating also takes into account the operational and financial flexibility enjoyed by the company on account of being part of the Ludhiana (Punjab) based Nahar group, which is one of the largest textile group in the country with vertically integrated operations from spinning to garmenting. The company has its share price trading at around INR. 77.65 against the Face Value (FV) of INR 10 on BSE as on 10th March, 2018. As per the unaudited quarterly financials of December 2017, the company has achieved revenue of INR 4511.731 million and has reported profit margin of 1.07%. However, these rating strength is partially offset by company’s high working capital intensity of operations on account of seasonal nature of cotton availability that requires stocking during the harvest season. The stocking requirement will continue to keep the leverage high and profitability vulnerable to volatility in the cotton prices. Trade relations are reported as fair. Payment seems be slow and delayed. In view of aforesaid, the company can be considered for business dealings at usual trade terms and condition. Note: As per the investigation the company was found as willful defaulter and defaulted amount of INR 84.500 million with ICICI Bank Limited 451.1 million as on 31-03-2010, Deutsche Bank INR 494.6 million as on 31-12-2011 and HDFC BANK LIMITED as on Dated 30th June 2014, and. However, there is no latest data on the same is available from any sources. |
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 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low
Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High
Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
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 10.03.2018
|
Bank |
Branch |
Borrowers’ Name |
Registered Address |
Director Name –DIN No. |
Amount (INR In Million) |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Dinesh Gogna – NA, Kamal Oswal |
494.600 |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Dinesh Gogna – NA, Dinesh Oswal |
494.600 |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Dinesh Oswal – NA, Kamal Oswal |
494.600 |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Dinesh Gogna – NA, Kamal Oswal |
494.600 |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Dinesh Oswal – 0, Kamal Oswal |
494.600 |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Kamal Oswal – 0, Dinesh Oswal |
494.600 |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Dinesh Gogna – 0, Dinesh
Oswal |
494.600 |
|
Deutsche Bank |
Fort Branch, Mumbai |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Kamal Oswal – 0, Dinesh Gogna |
494.600 |
|
HDFC Bank Limited |
Ludhiana |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Amrik Singh Singh Sohi-0 |
84.500 |
|
HDFC Bank Limited |
Ludhiana |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Karayan Dass Jain – 0, Yash Paul Sachdeva |
84.500 |
|
HDFC Bank Limited |
Ludhiana |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Karayan Dass Jain – 0, Jawahar Lal Oswal |
84.500 |
|
HDFC Bank Limited |
Ludhiana |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Kamal Oswal – 0, Harbhajan |
84.500 |
|
HDFC Bank Limited |
Ludhiana |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Dinesh Gogna – 0, Kanwar |
84.500 |
|
HDFC Bank Limited |
Ludhiana |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Jawahar Lal Oswal – 0, Kanwar |
84.500 |
|
HDFC Bank Limited |
Ludhiana |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
Focal Point, Ludhiana - 141010, Punjab, India |
Yash Paul Sachdeva – 20123 |
84.500 |
Suit Filed accounts of INR 10.000 Million and
above as on 10.03.2018
|
Borrowers’ Name : |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
|
Address : |
Focal Point, Ludhiana - 141010, Punjab,
India |
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Name of Individual : |
· Jawahar Lal Oswal · Ajit Singh Chatha · Dinesh Gogna · Dinesh Oswal · Harbhajan Kaur Bal · Amrik Singh Sohi · Kamal Oswal · Kamal Oswal · Karayan Dass Jain · Om Prakash Sahni · Yash Paul Sachdeva |
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Name of Credit Grantors / Bank & Branch: |
HDFC Bank Limited, Ludhiana, Punjab, India |
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Amount (INR In Million) : |
INR 84.500 Million |
Suit Filed accounts of INR 10.000 Million and
above as on 10.03.2018
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Borrowers’ Name : |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
|
Address : |
Focal Point, Ludhiana - 141010, Punjab,
India |
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Name of Individual : |
· Dinesh Gogna · Dinesh Oswal · Kamal Oswal |
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Name of Credit Grantors / Bank & Branch: |
Deutsche Bank, Fort Branch, Mumbai |
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Amount (INR In Million) : |
INR 494.600 Million |
Suit Filed accounts of INR 2.500 Million and
above as on 10.03.2018
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Borrowers’ Name : |
NAHAR INDUSTRIAL ENTERPRISES LIMITED |
|
Address : |
Focal Point, Ludhiana - 141010, Punjab,
India |
|
Name of Individual : |
· Amarjeet Singh – Independent · Dinesh Gogna · Dinesh Oswal · Harbhajan Kaur Bal · Jawahar Lal Oswal · KS Maini · Kamal Oswal · ND Jain · O.P.Sahni · Yash Paul Sachdeva |
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Name of Credit Grantors / Bank & Branch: |
ICICI Bank Limited, Ludhiana, Punjab, India |
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Amount (INR In Million) : |
INR 451.100 Million |
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 12.03.2018
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
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Registered / Administrative Office
: |
Focal Point, Ludhiana – 141010, Punjab, India |
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Tel. No.: |
91-161-2672590/ 592/ 591 |
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Fax No.: |
91-161-2670596/ 2674072 |
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E-Mail : |
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Website : |
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Corporate Office
1 : |
Nagar Tower Industrial Area – A, Ludhiana –
141003, Punjab, India |
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Tel. No.: |
91-161-2600701 to 705 |
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Fax No.: |
91-161-2600709 / 2601956 |
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E-Mail : |
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Corporate Office 2 : |
G.T. Road, Sherpur, Ludhiana – 141003, Punjab, India |
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Tel. No.: |
91-161-2542501 to 07 |
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Fax No.: |
91-161-2542509 |
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E-Mail : |
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Factory 1 : |
Arham Spinning
Mills Village Udaipur / Khijuriwas, Bhiwadi, District Alwar, Rajasthan,
India |
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Factory 2 : |
Spinning Unit, Spinning Unit- II, Spinning Unit-III, Spinning Unit-IV Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali,
Punjab, India |
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Factory 3 : |
Sambhav Spinning
Mills Industrial Focal Point, Phase VIII, Mundian Kalan, District Ludhiana,
Punjab, India |
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Factory 4 : |
Fabrics Unit Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali,
Punjab, India |
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Factory 5 : |
New Process and
Dyeing Village Jalalpur, Chandigarh-Ambala Road, Lalru, District Mohali,
Punjab, India |
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Factory 6 : |
Nahar Sugar Village Salana Jeon Singh Wala, Tehsil
Amloh, District Fatehgarh Sahib, Punjab, India |
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Factory 7 : |
Nahar Complex, P.O. Dappar, 21st Mile Stone,
Ambala-Chandigarh Road, Near Lalru, Mohali - 140506, Punjab, India |
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Tel No.: |
91-1762-506503 / 506566 |
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Fax No.: |
91-1762-506567 |
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Branch Offices: |
Located at: · Gurgaon · Mumbai · Delhi |
DIRECTORS
As on 31.03.2017
|
Name : |
Mr. Harbhajan Kaur Bal |
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Designation : |
Independent Director |
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Address : |
House No. 2322, Phase 11, Mohali - 160065, Punjab, India |
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Date of Appointment : |
30.06.2001 |
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DIN No.: |
00008576 |
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Name : |
Mr. Suresh Kumar Singla |
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Designation : |
Director |
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Address : |
H.NO.119, Ward No. 26 Kitchlu Nagar, Ludhiana – 141001, Punjab, India |
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Date of Appointment : |
26.09.2017 |
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DIN No.: |
00403423 |
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Name : |
Mr. Navdeep Sharma |
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Designation : |
Director |
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Address : |
200 - E, Kitchlu Nagar, Ludhiana - 141001, Punjab, India |
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Date of Appointment : |
12.08.2015 |
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DIN No.: |
00454285 |
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Name : |
Mr. Jawahar Lal Oswal |
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Designation : |
Chairman |
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Address : |
514, College Road, Civil Lines, Ludhiana - 141001, Punjab, India |
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Date of Appointment : |
14.10.1991 |
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DIN No.: |
00463866 |
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Name : |
Mr. Kamal Oswal |
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Designation : |
Managing Director |
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Address : |
514, College Road, Civil Lines,, Ludhiana - 141001, Punjab, India |
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Date of Appointment : |
27.09.83 |
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DIN No.: |
00493213 |
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Name : |
Mr. Dinesh Gogna |
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Designation : |
Director |
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Address : |
H.No.30-H, Bhai Randhir Singh Nagar, Ludhiana - 141001, Punjab, India |
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Date of Appointment : |
07.12.2006 |
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DIN No.: |
00498670 |
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Name : |
Mr. Dinesh Oswal |
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Designation : |
Director |
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Address : |
514, College Road, Ludhiana - 141001, Punjab, India |
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Date of Appointment : |
15.12.1988 |
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DIN No.: |
00607290 |
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Name : |
Mr. Ajit Singh Chatha |
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Designation : |
Independent Director |
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Address : |
House No 333, Sector 9-D, Chandigarh – 16000, India |
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Date of Appointment : |
27.03.2013 |
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DIN No.: |
02289613 |
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Name : |
Mr. Amrik Singh Sohi |
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Designation : |
Director |
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Address : |
H No.73-B, Rajguru Nagar, Ludhiana- 141012, Punjab, India |
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Date of Appointment : |
12.08.2011 |
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DIN No.: |
03575022 |
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Name : |
Mr. Vijay Asdhir |
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Designation : |
Independent Director |
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Address : |
1763, Phase- I, Urban Estate Dugri, Ludhiana - 141013, Punjab, India |
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Date of Appointment : |
14.02.2015 |
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DIN No.: |
06671174 |
KEY EXECUTIVES
|
Name : |
Mr. Bharat Bhushan Gupta |
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Designation : |
Chief Finance Officer |
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Address : |
Plot No. 16, Shakti Vihar, Badi Haibowal, Ludhiana - 141001, Punjab, India |
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Date of Appointment : |
11.08.2014 |
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PAN No.: |
ABZPG5548F |
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Name : |
Mr. Mukesh Sood |
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Designation : |
Company Secretary |
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Address : |
279-C, Bhai Randhir Singh Nagar, Ludhiana - 141012, Punjab, India |
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Date of Appointment : |
01.04.2005 |
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PAN No.: |
ADDPS6997E |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on December 2017
|
Category
of shareholder |
Total
nos. shares held |
Shareholding
as a % of total no. of shares (calculated as per SCRR, 1957) |
|
|
Promoter and Promoter Group |
27339150 |
68.63 |
|
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Public |
12495991 |
31.37 |
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Grand
Total |
39835141 |
100.00 |
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Statement showing shareholding pattern of the Promoter
and Promoter Group
|
Category of
shareholder |
No.
of fully paid up equity shares held |
Shareholding
as a % of total no. of shares |
|
|
A1) Indian |
0.00 |
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Individuals/Hindu
undivided Family |
1324 |
0.00 |
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KAMAL OSWAL |
1294 |
0.00 |
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DINESH OSWAL |
30 |
0.00 |
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Any Other
(specify) |
27337826 |
68.63 |
|
|
NAHAR CAPITAL AND FINANCIAL SERVICES LTD. |
9336745 |
23.44 |
|
|
J L GROWTH FUND LTD. |
3421836 |
8.59 |
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NAHAR POLY FILMS LTD. |
2708800 |
6.80 |
|
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VARDHMAN INVESTMENTS LTD. |
2277955 |
5.72 |
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NAGDEVI TRADING & INVESTMENT CO. LTD. |
2273625 |
5.71 |
|
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OSWAL WOOLLEN MILLS LTD. |
2094819 |
5.26 |
|
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KOVALAM INVESTMENT & TRADING CO. LTD. |
2068920 |
5.19 |
|
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ATAM VALLABH FINANCIERS LTD. |
1691364 |
4.25 |
|
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SANKHESHWAR HOLDING CO. LTD. |
549842 |
1.38 |
|
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VANAIK INVESTOR LIMITED |
460487 |
1.16 |
|
|
NAHAR GROWTH FUND PVT. LIMITED |
151785 |
0.38 |
|
|
NAHAR FINANCIAL AND INVESTMENT LTD. |
150870 |
0.38 |
|
|
NEHA CREDIT & INVESTMENT PVT. LTD |
80654 |
0.20 |
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|
ABHILASH GROWTH FUND PVT. LTD. |
42675 |
0.11 |
|
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COTTON COUNTY RETAIL LIMITED |
27449 |
0.07 |
|
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Sub Total A1 |
27339150 |
68.63 |
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A2) Foreign |
0.00 |
|
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|
A=A1+A2 |
27339150 |
68.63 |
|
Statement showing shareholding pattern of the Public
shareholder
|
Category &
Name of the Shareholders |
No.
of fully paid up equity shares held |
Shareholding
% calculated as per SCRR, 1957 As a % of (A+B+C2) |
|
|
B1) Institutions |
0 |
0.00 |
|
|
Mutual Funds/ |
13373 |
0.03 |
|
|
Financial
Institutions/ Banks |
33250 |
0.08 |
|
|
Insurance
Companies |
169463 |
0.43 |
|
|
Sub Total B1 |
216086 |
0.54 |
|
|
B2) Central
Government/ State Government(s)/ President of India |
0 |
0.00 |
|
|
B3)
Non-Institutions |
0 |
0.00 |
|
|
Individual share
capital upto INR 0.200 Million |
6436965 |
16.16 |
|
|
Individual share
capital in excess of INR 0.200 Million |
2967271 |
7.45 |
|
|
NBFCs registered
with RBI |
4500 |
0.01 |
|
|
Any Other
(specify) |
2871169 |
7.21 |
|
|
Bodies Corporate |
756790 |
1.90 |
|
|
NRI |
293801 |
0.74 |
|
|
Trusts |
325 |
0.00 |
|
|
Director or Director's Relatives |
106 |
0.00 |
|
|
Clearing Members |
61135 |
0.15 |
|
|
HUF |
598138 |
1.50 |
|
|
INVESTOR EDUCATION AND PROTECTION FUND
AUTHORITY MINISTRY OF CORPORATE AFFAIRS |
1160874 |
2.91 |
|
|
Sub Total B3 |
12279905 |
30.83 |
|
|
B=B1+B2+B3 |
12495991 |
31.37 |
|
BUSINESS DETAILS
|
Line of Business : |
Subject engaged in the business of Textiles and Sugar. (Registered activity) |
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Products : |
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Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Available |
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Imports : |
Not Available |
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Terms : |
Not Available |
PRODUCTION STATUS NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
10473 (Approximately) |
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Bankers : |
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Facilities : |
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Auditors : |
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Name : |
Raj Gupta and Company Chartered Accountants |
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Address : |
549/10, Sutlej Tower, Opposite Petrol Pump, Near Fountain Chowk,
Ludhiana – 141001, Punjab, India |
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Memberships : |
Not Available |
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Collaborators : |
Not Available |
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Associates : |
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Enterprises in which
Key Management Personnel and relative of such personnel is able to exercise
significant influence or control |
Note: * No transaction has taken place during the year |
CAPITAL STRUCTURE
After 26.09.2017
Authorised Capital : INR 650.000 Million
Issued, Subscribed & Paid-up Capital : INR 398.351 Million
As on 31.03.2017
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
65000000 |
Equity Shares |
INR 10/- each |
INR 650.000 Million |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
39835141 |
Equity Shares |
INR 10/- each |
INR 398.351
Million |
|
|
Add: Shares Forfeited Account (Amount originally paid up) |
|
INR 1.991
Million |
|
|
Total |
|
INR 400.342 Million |
a. Reconciliation of
the number of equity Shares outstanding :
|
At the beginning of the year |
39,835,141 |
|
Outstanding at the end of year |
39,835,141 |
b. Terms/rights attached to equity shares :
The company has only one class of Equity Shares having Face value of ` 10/- each. Each holder of equity share is entitled to only one vote per share.
c. Detail of
Shareholders holding more than 5% shares :
|
Shareholders |
As At 31st
March, 2017 |
|
|
|
Number |
% of holding |
|
Nahar Capital and Financial Services
Limited |
9,336,745 |
23.44 |
|
J. L. Growth Fund Limited |
3,421,836 |
8.59 |
|
Nahar Poly Films Limited |
2,708,800 |
6.80 |
|
Vardhman Investments Limited |
2,277,955 |
5.72 |
|
Oswal Woollen Mills Ltd Limited |
2,094,819 |
5.26 |
|
Nagdevi Trading and Investment Co. Limited |
2,273,625 |
5.71 |
|
Kovalam Investment and Trading Co. Limited |
2,068,920 |
5.19 |
|
Ashish Dhawan |
-- |
-- |
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 |
400.342 |
400.342 |
400.342 |
|
(b) Reserves & Surplus |
6491.741 |
5650.576 |
5394.206 |
|
(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) |
6892.083 |
6050.918 |
5794.548 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
3314.356 |
3491.214 |
4208.719 |
|
(b) Deferred tax liabilities
(Net) |
59.576 |
49.684 |
218.101 |
|
(c) Other long term
liabilities |
60.145 |
59.549 |
77.181 |
|
(d) long-term provisions |
64.200 |
47.966 |
57.101 |
|
Total
Non-current Liabilities (3) |
3498.277 |
3648.413 |
4561.102 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
4694.299 |
4992.500 |
4093.391 |
|
(b) Trade payables |
933.730 |
502.909 |
1047.046 |
|
(c) Other current liabilities |
1310.718 |
1451.210 |
1912.72 |
|
(d) Short-term provisions |
108.189 |
89.960 |
73.345 |
|
Total
Current Liabilities (4) |
7046.936 |
7036.579 |
7126.502 |
|
|
|
|
|
|
TOTAL |
17437.296 |
16735.910 |
17482.152 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
5326.041 |
5408.262 |
6130.208 |
|
(ii) Intangible Assets |
6.250 |
11.688 |
17.125 |
|
(iii) Capital work-in-progress |
555.751 |
183.138 |
398.702 |
|
(iv) Intangible assets under
development |
122.073 |
127.594 |
0.000 |
|
(b) Non-current Investments |
1365.439 |
1201.124 |
1383.441 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
104.208 |
115.938 |
114.012 |
|
(e) Other Non-current assets |
19.985 |
22.133 |
0.000 |
|
Total
Non-Current Assets |
7499.747 |
7069.877 |
8043.488 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
6434.626 |
6563.576 |
6396.778 |
|
(c) Trade receivables |
2093.745 |
1839.770 |
1741.818 |
|
(d) Cash and cash equivalents |
27.734 |
34.352 |
34.44 |
|
(e) Short-term loans and
advances |
7.325 |
8.387 |
223.44 |
|
(f) Other current assets |
1374.119 |
1219.948 |
1042.188 |
|
Total
Current Assets |
9937.549 |
9666.033 |
9438.664 |
|
|
|
|
|
|
TOTAL |
17437.296 |
16735.910 |
17482.152 |
PROFIT
& LOSS ACCOUNT- STANDALONE
|
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
|
SALES |
|
|
|
|
|
Income |
17316.689 |
17769.462 |
18029.547 |
|
|
Other Income |
56.193 |
48.708 |
56.646 |
|
|
TOTAL
|
17372.882 |
17818.170 |
18086.193 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
9621.829 |
8976.856 |
9656.627 |
|
|
Purchases of Stock-in-Trade |
268.451 |
100.694 |
56.11 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
-593.651 |
419.971 |
305.159 |
|
|
Excise Duty Expenses |
94.270 |
69.378 |
0.000 |
|
|
Employees benefits expense |
1749.254 |
1696.831 |
1590.805 |
|
|
Other expenses |
4081.556 |
4316.588 |
4428.663 |
|
|
TOTAL |
15221.709 |
15580.318 |
16037.364 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
2151.173 |
2237.852 |
2048.829 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
598.238 |
788.121 |
1048.793 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
1552.935 |
1449.731 |
1000.036 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
691.870 |
899.834 |
1352.406 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
861.065 |
549.897 |
(352.370) |
|
|
|
|
|
|
|
Less |
TAX |
159.717 |
126.493 |
(72.302) |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
701.348 |
423.404 |
(280.068) |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
1089.692 |
649.549 |
NA |
|
|
|
|
|
|
|
Add |
Remeasurement
gain/(loss) on defined benefit plan |
(5.587) |
0.731 |
NA |
|
|
|
|
|
|
|
Add |
Other
Comprehensive income |
198.837 |
17.761 |
NA |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Corporate social
Responsibility |
5.489 |
1.753 |
NA |
|
|
Dividend on Equity shares |
39.835 |
0.000 |
NA |
|
|
Corporate Dividend Tax |
8.109 |
0.000 |
NA |
|
|
Total
|
53.433 |
1.753 |
NA |
|
|
|
|
|
|
|
|
Balance
Carried to the B/S |
1930.857 |
1089.692 |
(280.068) |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
F.O.B. Value of Exports |
1532.409 |
2085.364 |
1871.806 |
|
|
TOTAL
EARNINGS |
1532.409 |
2085.364 |
1871.806 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
112.615 |
352.745 |
80.722 |
|
|
Capital Goods & Stores |
537.286 |
242.196 |
212.033 |
|
|
TOTAL
IMPORTS |
649.901 |
594.941 |
292.755 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
17.61 |
10.63 |
(7.03) |
CURRENT MATURITIES OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Maturities of Long term debt |
NA |
NA |
NA |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flow from operating activity |
2186.642 |
1159.185 |
2942.941 |
QUARTERLY RESULTS
|
Particulars |
|
30.06.2017 |
30.09.2017 |
31.12.2017 |
|
Audited / Unaudited |
|
Unaudited |
Unaudited |
Unaudited |
|
|
|
1ST Quarter |
2nd Quarter |
3rd Quarter |
|
Net Sales |
|
4573.860 |
4119.980 |
4522.320 |
|
Total Expenditure |
|
4208.860 |
3882.580 |
4164.220 |
|
PBIDT (Excl OI) |
|
365.000 |
237.400 |
358.100 |
|
Other Income |
|
29.960 |
11.230 |
1.120 |
|
Operating Profit |
|
391.970 |
248.630 |
359.230 |
|
Interest |
|
189.530 |
150.290 |
153.310 |
|
Exceptional Items |
|
NA |
NA |
NA |
|
PBDT |
|
202.450 |
98.340 |
205.920 |
|
Depreciation |
|
146.480 |
150.500 |
167.150 |
|
Profit Before Tax |
|
55.970 |
(52.160) |
38.770 |
|
Tax |
|
3.700 |
2.730 |
(9.530) |
|
Provisions and contingencies |
|
NA |
NA |
NA |
|
Profit After Tax |
|
52.270 |
(54.900) |
48.300 |
|
Extraordinary Items |
|
NA |
NA |
NA |
|
Prior Period Expenses |
|
NA |
NA |
NA |
|
Other Adjustments |
|
NA |
NA |
NA |
|
Net Profit |
|
52.270 |
(54.900) |
48.300 |
KEY
RATIOS
EFFICIENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Average Collection Days (Sundry Debtors / Income * 365 Days) |
44.13 |
37.79 |
35.26 |
|
|
|
|
|
|
Account Receivables Turnover (Income / Sundry
Debtors) |
8.27 |
9.66 |
10.35 |
|
|
|
|
|
|
Average Payment Days (Sundry Creditors
/ Purchases * 365 Days) |
34.46 |
20.22 |
39.35 |
|
|
|
|
|
|
Inventory Turnover (Operating Income
/ Inventories) |
0.33 |
0.34 |
0.32 |
|
|
|
|
|
|
Asset Turnover (Operating Income
/ Net Fixed Assets) |
0.36 |
0.39 |
0.31 |
LEVERAGE RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Debt Ratio ((Borrowing + Current Liabilities) / Total
Assets) |
0.59 |
0.63 |
0.65 |
|
|
|
|
|
|
Debt Equity Ratio (Total Liability
/ Networth) |
1.16 |
1.40 |
1.43 |
|
|
|
|
|
|
Current Liabilities to Networth (Current
Liabilities / Net Worth) |
1.02 |
1.16 |
1.23 |
|
|
|
|
|
|
Fixed Assets to Networth (Net Fixed Assets
/ Networth) |
0.87 |
0.95 |
1.13 |
|
|
|
|
|
|
Interest Coverage Ratio (PBIT / Financial
Charges) |
3.60 |
2.84 |
1.95 |
PROFITABILITY RATIOS
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Net Profit Margin ((PAT / Sales) *
100) |
% |
4.05 |
2.38 |
(1.55) |
|
|
|
|
|
|
|
Return on Total Assets ((PAT / Total
Assets) * 100) |
% |
4.02 |
2.53 |
(1.60) |
|
|
|
|
|
|
|
Return on Investment (ROI) ((PAT / Networth)
* 100) |
% |
10.18 |
7.00 |
(4.83) |
SOLVENCY RATIOS
|
PARTICULARS |
31.03.2017 |
31.03.2016 |
31.03.2015 |
|
Current Ratio (Current Assets / Current Liabilities) |
1.41 |
1.37 |
1.32 |
|
|
|
|
|
|
Quick Ratio ((Current Assets –
Inventories) / Current Liabilities) |
0.50 |
0.44 |
0.43 |
|
|
|
|
|
|
G-Score Ratio Financial (Networth / Total
Assets) |
0.40 |
0.36 |
0.33 |
|
|
|
|
|
|
G-Score Ratio Debt (Debts / Equity
Capital) |
20.00 |
21.19 |
20.74 |
|
|
|
|
|
|
G-Score Ratio Liquidity (Total Current
Assets / Total Current Liabilities) |
1.41 |
1.37 |
1.32 |
Total Liability = Short-term Debt + Long-term
Debt + Current Maturities of Long-term debts
STOCK PRICES
|
Face Value |
INR 10.00/- |
|
Market Value |
INR 77.65/- |
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 |
400.342 |
400.342 |
400.342 |
|
Reserves & Surplus |
5394.206 |
5650.576 |
6491.741 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
5794.548 |
6050.918 |
6892.083 |
|
|
|
|
|
|
Long Term borrowings |
4208.719 |
3491.214 |
3314.356 |
|
Short Term borrowings |
4093.391 |
4992.500 |
4694.299 |
|
Total
borrowings |
8302.110 |
8483.714 |
8008.655 |
|
Debt/Equity
ratio |
1.433 |
1.402 |
1.162 |
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
|
18029.547 |
17769.462 |
17316.689 |
|
|
|
(1.443) |
(2.548) |
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
|
18029.547 |
17769.462 |
17316.689 |
|
Profit
/ (Loss) |
(280.068) |
423.404 |
701.348 |
|
|
(1.55%) |
2.38% |
4.05% |
ABRIDGED
BALANCE SHEET – (CONSOLIDATED)
|
SOURCES
OF FUNDS |
|
31.03.2017 |
31.03.2016 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
|
400.342 |
400.342 |
|
(b) Reserves & Surplus |
|
6570.174 |
5739.879 |
|
(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) |
|
6970.516 |
6140.221 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
|
3314.356 |
3491.214 |
|
(b) Deferred tax liabilities
(Net) |
|
79.183 |
72.008 |
|
(c) Other long term
liabilities |
|
60.145 |
59.549 |
|
(d) long-term provisions |
|
64.200 |
47.966 |
|
Total
Non-current Liabilities (3) |
|
3517.884 |
3670.737 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
|
4694.299 |
4992.500 |
|
(b) Trade payables |
|
933.730 |
502.909 |
|
(c) Other current liabilities |
|
1310.718 |
1451.210 |
|
(d) Short-term provisions |
|
108.189 |
89.960 |
|
Total
Current Liabilities (4) |
|
7046.936 |
7036.579 |
|
|
|
|
|
|
TOTAL |
|
17535.336 |
16847.537 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
|
5326.041 |
5408.262 |
|
(ii) Intangible Assets |
|
122.073 |
127.594 |
|
(iii) Capital work-in-progress |
|
555.751 |
183.138 |
|
(iv) Intangible assets under
development |
|
6.250 |
11.688 |
|
(b) Non-current Investments |
|
1463.479 |
1312.751 |
|
(c) Deferred tax assets (net) |
|
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
|
104.208 |
115.938 |
|
(e) Other Non-current assets |
|
19.985 |
22.133 |
|
Total
Non-Current Assets |
|
7597.787 |
7181.504 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
|
0.000 |
0.000 |
|
(b) Inventories |
|
6434.626 |
6563.576 |
|
(c) Trade receivables |
|
2093.745 |
1839.770 |
|
(d) Cash and cash equivalents |
|
27.734 |
34.352 |
|
(e) Short-term loans and
advances |
|
7.325 |
8.387 |
|
(f) Other current assets |
|
1374.119 |
1219.948 |
|
Total
Current Assets |
|
9937.549 |
9666.033 |
|
|
|
|
|
|
TOTAL |
|
17535.336 |
16847.537 |
PROFIT
& LOSS ACCOUNT– (CONSOLIDATED)
|
|
PARTICULARS |
|
31.03.2017 |
31.03.2016 |
|
|
SALES |
|
|
|
|
|
Income |
|
17316.689 |
17769.462 |
|
|
Other Income |
|
56.193 |
48.708 |
|
|
TOTAL
|
|
17372.882 |
17818.170 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
|
9621.829 |
8976.856 |
|
|
Purchases of Stock-in-Trade |
|
268.451 |
100.694 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
|
(593.651) |
419.971 |
|
|
|
|
94.270 |
69.378 |
|
|
Employees benefits expense |
|
1749.254 |
1696.831 |
|
|
Other expenses |
|
4081.556 |
4316.588 |
|
|
TOTAL |
|
15221.709 |
15580.318 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
|
2151.173 |
2237.852 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
|
598.238 |
788.121 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
|
1552.935 |
1449.731 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION |
|
691.870 |
899.834 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
|
861.065 |
549.897 |
|
|
|
|
|
|
|
Less |
TAX |
|
170.587 |
155.238 |
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
|
690.478 |
394.659 |
|
|
|
|
|
|
|
|
Other
Comprehensive Income (OCI) |
|
|
|
|
A.
Items that will not be reclassified to profit or loss |
|
|
|
|
|
|
(i) Re-measurement gains
(losses) on defined benefit plans |
|
(5.587) |
0.730 |
|
|
B
Items that will be reclassified to profit or loss |
|
|
|
|
|
(i) Net Gain on FVOCI equity
securities |
|
198.837 |
17.762 |
|
|
Total
Other Comprehensive Income |
|
193.250 |
18.492 |
|
|
|
|
|
|
|
|
Total Comprehensive
Income for the period (Comprising Profit and Other Comprehensive Income for
the period) |
|
883.728 |
413.151 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (INR) |
|
17.33 |
9.91 |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
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 |
Litigations that the firm/promoter
involved in |
-- |
|
32 |
Market information |
-- |
|
33 |
Payments terms |
No |
|
34 |
Negative Reporting by Auditors in the
Annual Report |
No |
BACKGROUND
Subject (the “Company”) incorporated in 1983 is engaged in the business of Textiles and Sugar in India. The company is a public company domiciled in India under the provision of companies Act, 1956. Its shares are listed in recognized stock exchange BSE/NSE of India. The registered office of the company is located in Focal Point, Ludhiana.
PERFORMANCE REVIEW
That in view of the Indian Accounting Standard (AS) -108 (Operating Segment) the Company operates in two main segments i.e. Textile and Sugar.
i) Textile: The textile division accounts for 89.62% (including inter-segment) of the total turnover of the company for the year ended 31st March, 2017. The Business wise performance of this segment is as under:
a. Yarn: The Company has produced 68,236 MTs of yarn as against 73,245 MTs in the previous year.
b. Fabric: The Company has produced INR 74.720 Million meters of fabrics (both grey and processed) as against 755.59 lacs meters in the previous year.
The total turnover of this segment (Yarns and Fabrics) has decreased to INR 15512.600 Million as against INR 16053.300 Million in the previous year showing a decrease of 3.37%.
ii) Sugar: The Company has produced 4,68,115 Qtls. Of sugar as against 4,35,350 Qtls. in the previous year. The total turnover of this segment is INR 1762.900 Million as against INR 1631.000 Million in the previous year showing an increase of 8.09%.
OVERALL PERFORMANCE
During the year, the company has performed reasonably well
and the performance of the company was quite satisfactory as compared to
previous year. During the year the company has achieved operational income of
INR 17316.700 Million as against INR 17769.500 Million showing a decrease of
2.59% over the previous year. The company has earned Profit before finance
cost, Depreciation and tax of INR 2151.200 Million as against INR 2237.900
Million in the previous year. After providing for Finance Cost of INR 598.200
Million (previous year INR 788.100 Million), Depreciation of INR 691.900
Million previous year INR 899.800 Million) and Tax Expenses of INR 159.900
Million (previous year INR 126.500 Million) (inclusive of Deferred Tax) the
Profit for the year comes to INR 701.300 Million as against INR 423.400 Million
in the previous
year.
MANAGEMENT DISCUSSION AND ANALYSIS REPORT
Overview of the
economy
During the year 2016-17 global economic growth remained stagnant at 3.1%-following lower investments and uncertainties in advanced economic policies. Though the US experienced a weak GDP growth, the emerging market and developing economies performed comparatively better. Among the emerging and developing world, China continues to grow moderately with persistent support from the authorities. India emerged as a ‘bright spot’ in an otherwise subdued world economy when it overtook China in 2015-16 as the fastest-growing major economy in the world. In FY 2016-17 Indian economies slowed down and grew at 7.1% as compared to the growth of 7.9% achieved in the previous year. The reason of lower growth is largely attributed to demonetization initiatives undertaken by the Indian Government in 3rd quarter of FY 2016-17. After witnessing demonetization in FY2017, the Indian economy is going to see another major reform in the form of implementation of GST from 1st July, 2017. These initiatives are expected to provide a huge fillip to the industry. But the net impact of these reforms shall be known only in due course of time.
Industry Structure/
Development (Textiles)
The Indian textile and clothing industry (Textile industry) is one of the oldest industries of the country. The textile industry has two broad segments. First, the unorganized sector consisting of handloom, handicrafts and sericulture and the second is the organized sector consisting of spinning, weaving, knitting, garments and home textiles segment. The unorganized segment mainly depends on traditional method of operations whereas the organized sector has applied modern machinery and techniques. The Indian textile Industry has inherent linkage with agriculture and with the culture and traditions of the country making for its versatile spread of products appropriate for both in domestic and export markets. The textile industry has a major contribution to the national economy in terms of direct and indirect employment generation and net foreign exchange earnings of the country and meets out one of the basic needs of the people at large popularly pronounced as Kapda. The industry is the second largest employer after agriculture, providing employment to over 45 million people directly and 60 million people indirectly. The Indian Textile Industry contributes approximately 5 per cent to India’s Gross Domestic Product (GDP), and 14 per cent to overall Index of Industrial Production (IIP).
Overall, the Government has been supportive in encouraging textile industry in India. Many schemes have been announced from time to time to promote the sector. To further promote the textile industry, the Ministry of textile announced Powerloom Sector scheme, amended technology upgradation fund scheme, Focus Market/ Product Scheme and garmenting promotion package. The Indian textiles industry, currently estimated at around US $ 110 billion. But the Government of India through its National Textile policy and National Textile Vision Document has set the target for Indian Textile and Apparel Industry to $ 350 billion by 2025 (domestic $ 200 billion and export $150 billion). The draft National Textile Policy is currently under formulation based on extensive consultations with the industry associations representing all segments of the sector, State Governments and the recommendations of the expert committee. The textile sector has perfect alignment with Government’s key initiatives of Make in India, Skill India, women empowerment and Rural Youth Employment. With the right Government policies, they believe that the Indian Textile industry is well poised to benefit from the large opportunities offered in the domestic and export market.
The year was challenging year for the Textile industry with lot of challenges. Despite the challenges, the Indian textile Industry has performed reasonably well. The US and Europe economies are on the path of recovery; it would have positive impact on Indian industry too. The Company has confidence that the Indian textile industry has bright prospects. The Company has positioned itself as an integrated textile player with (approx) 2.65 lakh spindles and 8200 rotors, 510 looms, 58.4 Million meters (Per annum) processing capacity, Rotary Printing set-up - prints of Woven and Denim Products 21.6 million meters(Per annum), Calendaring Machine (for Special Finishes) 12 million meters (Per annum) and Soft Flow Dyeing Machine - Rayon and Modal Products 2 million meters (Per annum) to reap the benefits of economies of scale and become competitive in terms of cost and quality.
OUTLOOK
In-spite of several impediments of growth, India has enabled to maintain a steady growth in textile Industry. To face the tough time ahead for textile industry, the Government must support the industry to retain its competitive edge. Though India’s fundamentals still remain strong, the markets are there although they are presently subdued. Under the present scenario, it is not easy to predict when consumer demand revives both in India and globally. The Indian economy witnessed gradual momentum in the post demonetisation and it is expected to accelerate in future years in view of the Government’s continuous efforts to push various financial and agricultural reforms, including technological improvements across all sectors. The Indian Government’s decisive policy manoeuvres towards ensuring fiscal consolidation and pegging back inflation will help it maintain economic stability in the years ahead (Source: International Monetary Fund (IMF) and Economic Survey). For India though the long term prospects for continued growth remain there, actual pace will depend on revival in private sector investment, rural consumption and continued implementation of economic reforms. Economic activity in India is expected to recover past the slowdown due to demonetization and moving slowly in the transition phase of smooth implementation of GST. Key reforms like Bankruptcy Code, implementation of GST and thrust towards digitization are expected to well for economic growth. These all combined efforts should lead to low and stable interest rate regime. Domestically, however the new law of GST is likely to dilute the present tax arbitrage, which is available to the unorganized players, moving the market towards organized players.
China has been losing market share over the last few years driven by rising labour cost and appreciating currency. China’s declining market share has provided an opportunity for other key textile exporters including India to scale up and excel in this sector. The developed countries including US, UK, Germany and Japan all have accepted the reality that commercially it is not viable for them a thriving textile industry because of high cost of labour and skilled manpower. These countries are looking at India as suitable and reliable choice for their requirements. This shift is expected to happen in the long run which is providing new place of opportunities as per the theory of “expected vacating places’, to make India a dependable source of supply of textile products for the world. There is scope for growth in textile Industry as India’s share in the global trade in textiles is weak. The Industry is taking all steps to promote textile exports, which is the need of the hour.
Domestic market continues to do well. Domestic demand is supported by a rising consumer class with higher disposable income. Growing Indian economy and higher disposable income is leading to strong domestic demand which augurs very well for Indian textile industry.
Despite some headwinds, global economy has been recovering. With recovery in global economy there would be positive impact on Indian economy too. The Company has positioned itself as integrated textile player to reap the benefits of economies of scale and become competitive in terms of cost and quality. The management of the company is making all efforts to meet the prevailing concern by focusing its efforts on improving operational parameters and improvement in efficiency of both human and mechanical assets, to reduce the cost pressure. The Company keeps reviewing its strategy in the light of changes. With the right Government policies, they believe that the Indian Textile industry is well poised to benefit from the large opportunities offered in the domestic and export market.
Industry
structure/Development (sugar)
The Indian Sugar Industry is the second largest agro based industry after textiles, supporting over 50 million sugar farmers and around 5 lakh workers directly employed in sugar mills besides providing indirect employment to rural population through various ancillary activities. (Source: Annual Report 2016-17 Department of Food & Public Distribution Ministry of Consumer Affairs, Food & Public Distribution Government of India). The Indian sugar industry is highly fragmented by the coexistence of private, co-operative and public sector. The crushing period in India varies from region to region beginning in Oct/Nov and goes on till March/April except in southern states where it continue till July/Aug depending upon the availability of sugar cane. India is second largest producer of Sugar and largest consumer of sugar in the world. Brazil, India, China and Thailand rank amongst the top global producers of sugar.
Sugar is a sector of significant importance to Indian economy. The year 2013-14 was a water-shed for the sugar industry. The Central Government discontinued the system of levy obligations on mills for sugar produced after September, 2012 and abolished the regulated release mechanism on open market sale of sugar.
However the adoption and implementation of recommendations of the Committee relating to Cane Area Reservation, Minimum Distance Criteria and adoption of the Cane Price Formula is still awaited as the same have been left to State Governments for implementation.
OUTLOOK
This sector is the focal point of socio-economic development of the rural India. India’s population growth is expected to sustain making it the most populous nation. India’s sugar per capita consumption is largely driven by increased personal incomes, a trend that is unlikely to reverse into the long-term. India is increasingly a country of young earners, creating a large and new consumption base (among the largest in the world) that is likely to drive sugar consumption.
Good sugarcane production across the country is expected in SS 2017-18 due to better monsoon and water availability in reservoirs. Farmers are still growing ‘surplus’ sugarcane as no other crop giving equivalent returns. The long term outlook for sugar remains positive and promising on account of; growing energy consumption in India allowing the sugar industry to play a vital role, environmental friendly power generated by Cogeneration Units equipped with high-pressure boilers and turbines that intelligently use the fuel to get optimum energy output, mandatory blending of Ethanol with petrol will boost the revenue of sugar mills and profitability.
Segment wise/
Financial/Operational performance
The company operates in two segments i.e Textiles and Sugar. Please refer Director’s Report on the performance review.
Internal Control System
and Their Adequacy
The company is having adequate internal financial control systems and procedures which commensurate with the size of the Company. The Company is having Internal Audit Department which ensures optimal utilization and protection of Company’s resources. The internal Auditors monitors and evaluate the efficiency and adequacy of internal control systems in the Company, its compliance with operating systems, accounting procedures and also ensures that the internal control systems are properly followed by all concerned departments of the company. Significant audit observations and corrective actions taken thereon are presented to the Audit committee of the Board.
The Indian accounting standard (Ind AS) became applicable on the Company w.e.f. 1st April, 2016. Accordingly the financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules 2015 as amended by Companies (Indian Accounting Standards) (Amendment) Rules, 2016. The Company appointed M/s Grant Thornton India LLP Gurugram (Haryana), a leading consultancy firm in the Accounting/Financial matters, to advice the Company on convergence of Ind AS. The report submitted by them has been implemented for preparing the financial statement for the year ended31st March, 2017.
UNSECURED LOAN
|
Unsecured Loan |
31.03.2017 (INR
in Million) |
31.03.2016 (INR
in Million) |
|
Long-term
Borrowings |
|
|
|
Loans And Advances from Related Parties |
603.306 |
540.207 |
|
|
|
|
|
Total |
603.306 |
540.207 |
INDEX
OF CHARGES:
|
SNo |
SRN |
Charge Id |
Charge Holder Name |
Date of Creation |
Date of
Modification |
Date of
Satisfaction |
Amount |
Address |
|
1 |
G64647829 |
100135789 |
Canara Bank |
14/11/2017 |
- |
- |
325000000.0 |
Ludhiana-Mid Corporate BranchBharat Nagar ChowkLudhianaPB141001IN |
|
2 |
G64650393 |
100135790 |
Canara Bank |
14/11/2017 |
- |
- |
438000000.0 |
Ludhiana-Mid Corporate BranchBharat Nagar ChowkLudhianaPB141001IN |
|
3 |
G41323288 |
100071130 |
DENA BANK |
22/12/2016 |
27/03/2017 |
- |
154400000.0 |
Chandigarh RoadLudhianaPB141010IN |
|
4 |
G41323767 |
100071133 |
DENA BANK |
22/12/2016 |
27/03/2017 |
- |
506800000.0 |
Chandigarh RoadLudhianaPB141010IN |
|
5 |
G68885508 |
100035526 |
State Bank of India |
18/06/2016 |
13/11/2017 |
- |
239000000.0 |
Industrial Finance Branch, Golden Tower ComplexDholewal Chowk, GT RoadLudhianaPB141003IN |
|
6 |
G00699017 |
100017115 |
PUNJAB NATIONAL BANK |
14/03/2016 |
- |
- |
300000000.0 |
INDUSTRIAL AREA-AMILLER GANJLUDHIANAPB141003IN |
|
7 |
G10015592 |
10611608 |
Punjab & Sind Bank |
15/12/2015 |
09/08/2016 |
- |
39060000.0 |
Specialized Corporate Finance Branch,Bansal Complex, Dholewal Chowk, G.T. Road,LudhianaPB141003IN |
|
8 |
G10081156 |
10592289 |
Punjab & Sind Bank |
27/08/2015 |
09/08/2016 |
- |
108900000.0 |
Specialized Corporate Finance Branch,Bansal Complex, Dholewal Chowk, G.T. Road,LudhianaPB141003IN |
|
9 |
C49443484 |
10554655 |
State Bank of Patiala |
09/03/2015 |
30/03/2015 |
- |
300000000.0 |
Commercial Branch, Aarti Complex,Miller GanjLudhianaPB141003IN |
|
10 |
C49540669 |
10553833 |
State Bank of Hyderabad |
02/03/2015 |
30/03/2015 |
- |
300000000.0 |
15/179, Sona Complex,G.T. Road, Miller Ganj,LudhianaPB141010IN |
STATEMENT OF
STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31ST
DECEMBER 2017
|
|
|
Particulars |
3 Months ended |
3 Months ended |
Nine months ended |
|
|
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
1 |
|
Income from Operations |
|
|
|
|
|
|
Sales/Income from
Operations (Gross) |
4511.731 |
4114.082 |
13183.868 |
|
|
|
b) Other Operating Income |
10.593 |
5.900 |
32.297 |
|
|
Total Income from Operations (Net) |
4522.324 |
4119.982 |
13216.165 |
|
|
|
Other Income |
1.124 |
11.232 |
39.320 |
|
|
|
Total Income |
4523.448 |
4131.214 |
13255.485 |
|
|
2 |
Expenses |
|
|
|
|
|
|
a) |
Cost of Materials
consumed |
2805.850 |
2180.819 |
7192.698 |
|
|
b) |
Purchase of
Stock-in-trade |
79.868 |
-- |
184.500 |
|
|
c) |
Changes in inventories of
finished goods, work-in-progress and stock-in-trade |
(249.892) |
306.234 |
471.863 |
|
|
d) |
Excise Duty Expenses |
-- |
-- |
39.776 |
|
|
e) |
Employee benefit expenses |
437.763 |
455.448 |
1354.907 |
|
|
f) |
Finance Costs |
153.305 |
150.287 |
493.118 |
|
|
g) |
Depreciation and
amortization expense |
167.148 |
150.498 |
464.126 |
|
|
h) |
Power and Fuel |
563.494 |
559.831 |
1682.771 |
|
|
i) |
Other expenses |
491.141 |
380.260 |
1329.150 |
|
|
Total Expenses |
4484.677 |
4183.377 |
13212.909 |
|
|
|
|
|
|
|
|
|
3 |
|
Profit /(Loss) from operations before exceptional items and tax |
38.771 |
(52.163) |
42.576 |
|
4 |
Exceptional Items |
-- |
-- |
-- |
|
|
5 |
Profit /(Loss) from ordinary activities before tax |
38.771 |
(52.163) |
42.576 |
|
|
6 |
Tax Expense |
(9.529) |
2.732 |
(3.098) |
|
|
11 |
Net Profit /(Loss) from ordinary activities after tax |
48.300 |
(54.895) |
45.674 |
|
|
|
Extraordinary Items |
-- |
-- |
-- |
|
|
|
Net Profit / (Loss for the period) |
190.537 |
(54.895) |
45.674 |
|
|
|
Other Comprehensive Income |
190.537 |
(34.466) |
123.682 |
|
|
|
Total Comprehensive Income |
238.837 |
(88.361) |
169.356 |
|
|
|
Paid up equity share capital (Eq. shares of INR 10/- each) |
398.3510 |
398.351 |
398.351 |
|
|
|
Reserve excluding revaluation reserves |
-- |
-- |
-- |
|
|
|
Earnings per share (before/after extraordinary items) of Rs.10/- each |
|
|
|
|
|
|
Basic & Diluted |
1.21 |
(1.38) |
1.15 |
|
SEGMENT REVENUE
RESULTS AND CAPITAL EMPLOYED
|
Particulars |
3 Months ended |
3 Months ended |
Nine months ended |
|
|
31.12.2017 |
30.09.2017 |
31.12.2017 |
|
Segment Revenue |
|
|
|
|
a) Textile |
4157.156 |
3372.557 |
11298.322 |
|
b) Sugar |
358.068 |
729.603 |
1856.046 |
|
c) Others |
46.845 |
29.793 |
125.256 |
|
Total
|
4562.069 |
4131.953 |
13279.624 |
|
Less: Inter Segment Revenue |
50.338 |
17.871 |
95.756 |
|
|
|
|
|
|
Net Sales/Income from Operations |
4511.731 |
4114.082 |
13183.868 |
|
|
|
|
|
|
Segment Results |
|
|
|
|
Profit / (Loss) before interest exceptional items and tax from each segment |
|
|
|
|
a) Textile |
133.715 |
(6.860) |
272.742 |
|
b) Sugar |
55.315 |
97.073 |
256.972 |
|
c) Others |
3.046 |
7.911 |
5.980 |
|
Sub Total |
192.076 |
98.124 |
535.694 |
|
|
|
|
|
|
Less: i) Financial Expenses |
153.305 |
150.287 |
493.118 |
|
|
|
|
|
|
Total Profit / (Loss) before Tax |
38.771 |
(52.163) |
42.576 |
|
|
|
|
|
|
Segment assets |
|
|
|
|
a) Textile |
15267.819 |
12666.509 |
15267.819 |
|
b) Sugar |
835.656 |
611.753 |
835.656 |
|
c) Others (Un-allocated) |
2054.564 |
1819.004 |
2054.564 |
|
Total Segment assets |
18158.039 |
15097.266 |
18158.039 |
|
Segment Liabilities |
|
|
|
|
a) Textile |
6738.287 |
3958.092 |
6738.287 |
|
b) Sugar |
437.254 |
227.809 |
437.254 |
|
c) Others (Un-allocated) |
203.102 |
216.085 |
203.102 |
|
Total Segment Liabilities |
7378.643 |
4401.986 |
7378.643 |
|
|
|
|
|
|
Capital Employed |
|
|
|
|
(Segment assets – Segment Liabilities) |
|
|
|
|
a) Textile |
8529.532 |
8708.417 |
8529.532 |
|
b) Sugar |
398.402 |
383.944 |
398.402 |
|
c) Others (Un-allocated) |
1851.462 |
1602.919 |
1851.462 |
|
Total |
10779.396 |
10695.280 |
10779.396 |
Note:
1. The above results were reviewed by the Audit Committee of Directors on 14th February, 2018 and taken on record by the Board of Directors at its meeting held on 14th February, 2018.
2. Revenues from operations for the current quarter are not comparable with
previous periods other than quarter ended 30th September, 2017, since sales are
net of GST whereas sales were included of Excise Duties and formed part of
expenses in previous periods.
3. Previous period's figures have been regrouped / rearranged wherever
considered necessary.
4. The financial results have been subjected to Limited review by Statutory
Auditors of the Company.
CONTINGENT
LIABILITIES:
a) Letter of Credits in favour of suppliers and others INR 86.400 Million (as at 31st March, 2016 INR 240.862 Million and as at 1st April, 2015 INR 69.498 Million).
b) Bank Guarantees in favour of suppliers and others INR 221.826 Million as at 31st March, 2016 INR 180.322 Million and as at 1st April, 2015 INR 115.911 Million).
c) Sales tax demands against which the company has preferred appeals INR 6.717 Million. (As at 31st March, 2016 INR 6.717 Million and as at 1st April, 2015 INR 6.717 Million).
d) Income tax demands against which the company has preferred appeals INR 136.889 Million. (as at 31st March, 2016 INR 117.584 Million and as at 1st April, 2015 INR 64.683 Million).
e) The Central Excise Authorities have issued show cause notices to the Company for INR 64.083 Million on various matters under the Central Excise Rules (as at 31st March, 2016 INR 60.316 Million and as at 1st April, 2015 INR 81.944 Million). The Company has filed suitable replies with the concerned authorities.
f) The Company has executed bonds / legal undertakings for an aggregate amount of INR 312.490 Million (as at 31st March, 2016 INR 312.490 Million and as at 1st April, 2015 INR 868.130 Million). in favour of the President of India for fulfillment of its obligations under the rules made under Central Excise Act, 1944 and Customs Act, 1962.
g) Claims of INR 360.298 Million. (as at 31st March, 2016 INR 352.540 Million and as at 1st April, 2015 INR 352.540 Million) lodged against the company on various matters are not acknowledged as debts. The company has filed suitable replies with the concerned authorities.
FIXED ASSETS
- Leasehold Land
- Freehold Land
- Building
- Plant and Machinery
- Furniture and Fixtures
- Office Equipment
- Vehicles
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 65.07 |
|
|
1 |
INR 89.85 |
|
Euro |
1 |
INR 80.16 |
INFORMATION DETAILS
|
Analysis Done by
: |
VRS |
|
|
|
|
Report Prepared
by : |
SUJ |
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.