S.Kumars Nationwide Ltd


BSE: 514304 | NSE: SKUMARSYNF | ISIN: INE772A01016 
Market Cap: [Rs.Cr.] 144 | Face Value: [Rs.] 10
Industry: Textiles - Processing

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Director's Report

DIRECTORS

Your Directors have pleasure in presenting the Twenty First Annual Report and AuditedStatement of Accounts for the year ended 31st March, 2011. Your Company returned yetanother year of robust performance in turnover and profitability.

FINANCIAL HIGHLIGHTS

( Rs. in Lacs)
2010-11 2009-10 2010-11 2009-10
Particulars Consolidated Consolidated Standalone Standalone
1 Turnover 5,18,055 3,83,778 2,75,736 2,15,482
2 Other Income 4,234 2,316 382 475
3 Profit From Operations (PBIDT) 1,05,649 76,820 58,712 43,030
Less: Interest 35,569 24,403 29,514 23,077
Depreciation 12,468 8,134 7,400 4,171
Misc. Exp.w/off 1,816 1,816 1,596 1,596
4 Profit Before Tax 55,796 42,467 20,202 14,186
5 Provision For Taxation 16,547 14,742 2,932 3,576
6 Profit After Tax 39,249 27,725 17,270 10,610
Less: Minority Interest * 6,155 4,825 - -
7 Amount Available For Appropriation 33,094 22,900 17,270 10,610
Appropriations:
8 Transfer to Capital Redemption Reserve - 5,337 - 5,337
9 Transfer to Debenture Redemption Reserve 950 225 950 225
10 Share of Minority Interest in Reserves - 442 - -
11 Provision for Preference Dividend 535 - 535 -
12 Tax on Preference Dividend 89 - 89 -
13 Proposed Equity Dividend 2,850 - 2,850 -
14 Tax on proposed Equity Dividend 473 - 473 -
15 Balance b/f from Previous Year 29,204 12,308 5,048 -
16 Surplus/(Deficit) carried to Balance Sheet 57,401 29,204 17,421 5,048

*The minority interest in 2009-10 and 2010-11 pertains to investment in Company’ssubsidiaries, namely Reid & Taylor (India) Ltd. upto 25.61%, HMX LLC upto 5%, SKNL(UK) Ltd. upto 20% and Marling & Evans Ltd., U.K. up to 35%.

DIVIDEND

The Directors are pleased to recommend dividend on equity shares of Rs. 1 for eachshare of Rs. 10 each i.e. 10% aggregating Rs. 2,849.78 lacs excluding Dividend Tax whichwill be paid after obtaining approval of members in general meeting and other necessarypermissions. The Directors are also recommending the payment of preference dividend witharrears on the preference shares which will be aggregating Rs. 534.74 lacs excludingDividend Tax.

YEAR IN RETROSPECT

The financial highlights reflect yet another strong performance for your Company at alllevels. Your Company manufactures polyester blended suitings, worsted suitings andworkwear fabric, home textiles and ready-to-wear garments. Both domestic as well asinternational businesses reported substantial improvement in overall performance, drivenby strong volumes and higher price realization. A customer-led design-centric and distinctapproach for each business division has enabled the Company to register positive growth. Acomprehensive and well-diversified portfolio of brands catering to all price-categoriesfrom economy to the luxury segment has de-risked the business and yielded results.

The distinct strategic approach adopted by each of the Company’s StrategicBusiness Units (SBUs), supported by a proficient operating model has proven effective indriving growth. A clear focus on creating a diversified brand portfolio catering to allthe socio-economic segments and expanding its global footprint, with the strategicacquisition of international brands has begun to yield results for the Company. Verticallyintegrated operations, an expanding distribution network and successful brand positioninghave driven growth during the year. A strong brand portfolio of 45 owned and licensedbrands which includes international names such as Hart Schaffner Marx, Hickey Freeman,Exclusively Misook, Austin Reed, Jag Jeans, Bobby Jones and DKNY further leveragesSKNL’s leadership position as a branded player in the apparel business.

In particular, Belmonte and Reid & Taylor brands performed well, whileReady-to-Wear and Luxury Cotton witnessed strong volume growth. Post commencement ofoperations, the Baruche Super Fine Cottons (BSFC) facility is performing satisfactorily.Our economy brand World Player launched during the year has been well received and theCompany is optimistic that it will deliver healthy volume as it expands its market reachand penetration.

The Company is a market leader in Uniforms with 30% market share and is the secondlargest player in Worsted Suitings. It is one of the largest institutional suppliers oftextiles to defence and police forces in India.

The Consumer Textiles Division reported consistent growth over a period of time, mainlyattributed to Belmonte which has increased its market penetration.

The growth in Luxury Textiles was on account of higher realizations from bothpolyester-wool and polyester-viscose fabrics. During the year, the Company expandedweaving capacities which helped improve overall operations and profitability. Theincreased capacities also enabled to capture the strong demand witnessed in this segment.

The Ready-to-Wear Division comprising apparel and garments under the brands Reid &Taylor, Belmonte, Stephens Brothers and World Player has witnessed remarkable progress.Ready-to-Wear is the fastest growing segment and has reported volumes expansion in allproduct categories.

The Luxury Cotton Division is represented by the 12.75 million meters per annumstate-of-the-art BSFC facility at Jhagadia, Gujarat. It commenced operations and graduallyscaled up capacity utilization as the year ended. Going forward, as the facility reachesoptimum capacity utilization, it is expected to register higher margins in line withexpanding volumes.

The Total Home Expressions Division reported a growth of around 10.5%. Growth in thiscategory has been stable, with the improving demand scenario.

Celebrity endorsements helped to strengthen the Company’s diversified portfolio ofwell-recognised brands.

Your Company has since extended its presence overseas to the Europe and North Americanmarkets expanding its brand portfolio and catering to various price points, socio economicsegments and age groups. The Company has manufacturing units located in India, Italy, UK,USA and Canada with cost-effective outsourcing.

Your management is pleased with the progress of our international subsidiaries posttheir acquisitions. International revenues grew remarkably by 86.6% to Rs. 1,333 Crores inFY2011. EBITDA amounted to Rs. 47 Crores as compared to Rs. 9.7 Crores for FY2010 andEBITDA margins improved by 221 bps to 3.6%. During the year, we have revamped HMX’sbusiness model by streamlining operations, following a brand-oriented approach andinitiated synergies with domestic businesses. HMX boasts of an impressive line-up ofbrands providing for tremendous growth potential. The Company is also a leader in formalwear in North America with Coppley, Hart Schaffner Marx and Hickey Freeman. Through globalacquisitions, the Company gained 37 brands across the premium and super-premium segmentsof the apparel market with a distribution network of large departmental and specialtystores. These acquisitions also facilitate transfer of technical know-how for high valueshirting and garmenting.

Our Italian subsidiary Leggiuno, has benefitted from the implementation ofbackward-forward integration with the BSFC facility.

The joint venture with DKNY for its global menswear license has unfolded a tremendousopportunity, which is expected to drive growth through geographic expansion. Globally,there are visible signs of improvement, and recovery of retail segment in the NorthAmerican markets will provide necessary stimulus to the sector. The management isconfident that the overseas businesses would register improved volumes and profitabilityover the years to come.

On the sectorial front, the industry witnessed an unprecedented increase in the rawmaterial prices, which elevated margin pressure across product categories. SKNL being abranded player was successful in passing the additional cost to the consumer andmaintained profitability levels. During the year, the Company realized higher prices byabout 8%-10% and bookings enhanced by 20%, thereby mitigating the risk associated withincreased input prices. In the Union Budget 2011-2012, a mandatory excise duty of 10% wasimposed on branded readymade garments (to be paid on 45% of the retail sales price). TheCompany expects to pass on this price hike to consumers as well.

EXPORTS

There is very strong demand from both domestic and overseas markets and to that extentthe textile industry in India can really be a force to reckon with globally. Though yourCompany is predominantly a domestic player, it was able to achieve good growth in exportsto Rs. 68.50 Crores (previous year Rs. 10.90 Crores.). Additionally, exports from thecompany’s subsidiary Reid & Taylor (India) Ltd. rose to Rs. 42.47 Crores(previous year Rs. 29.07 Crores). These figures include exports of fabrics worth approxRs. 6.85 Crores to our subsidiaries HMX (USA) and Leggiuno (Italy). Our productscomprising mainly cotton fabrics, wool and wool-rich blends were exported to countriesaround the world including Europe, Far East, Middle East, South-East Asia, USA, South andCentral America. The outlook for the current year is encouraging.

CURRENT BUSINESS OUTLOOK AND PLANS

The Indian textile industry is expected to grow significantly due to rise in incomelevels. Going forward, the management is confident about SKNL’s prospects. Strongsynergies between domestic and international business through ‘back-endfront-end’ model, enhanced distribution network, a comprehensive portfolio of 45brands addressing all demographic segments, vertically and laterally integratedbusinesses, seamless supply chain and presence across the value chain have provided for astrong foundation to deliver healthy growth over the years to come.

In March 2010, the Company launched ‘Baruche’ under the premium category ofthe Luxury Cotton segment. In April 2010, the Company launched the ‘WorldPlayer’ ready-to-wear brand catering to the economy segment. World Player is expectedto be rolled out across an additional 560 districts and its nationwide rollout is expectedto be completed over the next few quarters. World Player and Baruche brands are expectedto make higher contributions in the coming month.

The Company plans to introduce a new casual premium brand for the fashionably inclined:‘Kruger’ (clothing for ‘out of office’ wear/weekend wear) to capturemarket share in the segment.

The Company plans to leverage its strong brand portfolio and expand its retail networkin India through exclusive brand outlets largely in the tier 1 & 2 cities. Withpositive consumer sentiment towards all its brands, the Company is expecting increasedmarket penetration. We anticipate healthy demand for the textiles and apparel industry inIndia driven by growth in organized retailing, increasing consumerism, expanding middleclass and heightened brand consciousness among the youth. SKNL is well-positioned tocapitalize on these industry developments through its market leadership position. TheCompany has taken several strategic initiatives over the past including synergies withinternational subsidiaries, presence in high margin businesses, vertical integration ofoperations and effective brand positioning which will help it deliver an enhanced overallperformance in FY2012. Future revenue growth drivers include rollout of 160 additionalexclusive brand outlets to expand its distribution network, and expansion of franchiseenetworks, setting up of a suits factory, and a shirts factory to improve margins byoffering readymade products, scaling up capacity utilization at BSFC and capacityexpansion in luxury and mid-premium textiles.

On account of the various initiatives detailed above, the Company expects

1. to capture more value from direct retailing

2. backward and forward integration in Luxury Cottons and Belmonte divisions

3. increased share of ready-to-wear in revenue composition (target 40% in coming twoyears)

4. scaling up the value chain in all brands.

REID & TAYLOR (INDIA) LTD. (RTIL) IPO

As approved by the shareholders of Reid & Taylor (India) Ltd. in an EOGM on 27thSeptember 2010, the Initial Public Offering of the Company’s subsidiary Reid &Taylor (India) Ltd. is being proceeded with. The Draft Red Herring Prospectus (DRHP) wasfiled with SEBI on December 9, 2010 and after necessary clarifications over the pastmonths, the market regulator SEBI’s approval is expected in early June. Approvalsfrom other Statutory Authorities such as BSE, NSE and RBI have already been received. Asmembers are aware, SKNL holds 74.39% and GIC Singapore holds 25.61% of the shares of RTIL.The issue size will be approx Rs. 1000 Crores which includes primary issue of Rs. 500Crores (by fresh issue of equity shares) and secondary issue of Rs. 500 Crores (offer forsale of equity shares by existing shareholders). The Book Running Lead Managers (BRLMs)advise that the issue will be hitting the market some time in October, 2011. Of the totalproceeds, primary proceeds will be used for the growth of Reid & Taylor business andthe secondary proceeds raised by SKNL will be used for paying off SKNL debts. RTIL hasevolved into a sizable business entity and, we believe, the listing will unlocksubstantial value for stakeholders.

CORPORATE SOCIAL RESPONSIBILITY

Your Company is committed to support CSR initiatives and contribute towards the welfareand social upliftment of the community. During the year your Company’s subsidiaryAnjaneya Foundation, which is set up in order to promote and support the activities in thefields like education in Medicine, Arts, Science, Commerce and cultural initiativesdonated a sum ofRs. 22,50,000/- to an education foundation and Rs. 10,00,000/- to theWildlife Conservation Trust for their ‘Save Our Tigers’ programme.

SHARE CAPITAL

The equity share capital of the Company as at 31st March 2011 has gone up by Rs.48,46,45,390/- from the previous year-end. This is as a result of allotment of:

(1) 2,89,43,750 equity shares of Rs. 10/- each at a premium of Rs. 70/- per share tothe Qualified Institutional Buyers (QIBs) on 20th September 2010 through QualifiedInstitutional Placement (QIP), pursuant to the special resolution passed by theshareholders through postal ballot notice dated 14th June 2010 and postal ballot resultdeclared on 28th July 2010.

(2) 1,24,25,000 equity shares of Rs. 10/- each to N’Essence Holdings Ltd., apromoter group company on 3rd March 2011 on conversion of 1,24,25,000 nos. of Equity ShareWarrants into equivalent numbers of equity shares of Rs. 10/- each at a premium of Rs.33.15. The said Equity Share Warrants were issued pursuant to the special resolutionpassed by the shareholders through postal ballot notice dated 25th July 2009 and postalballot result declared on 2nd September 2009.

(3) 70,95,789 Equity Shares of Rs. 10/- each at a premium of Rs. 47/- per Share toDaiwa Capital Markets Singapore Ltd. on 11th March 2011 on conversion of US $ 9 MillionFCCBs which were subscribed in June 2006.

Pursuant to the resolution dated 19th April 2010 passed by circulation, by the Board ofDirectors and subsequent special resolution passed by the members / shareholders throughpostal ballot notice dated 19th April 2010 and postal ballot result declared on 31st May2010, the Company has allotted 1,24,25,000 nos. of Equity Share Warrants on 15th June 2010at a price of Rs. 64.53 each to M/s Sansar Exim Private Limited, a promoter group companyon a preferential basis and received Rs. 32,54,46,313/- towards the Warrants. The warrantholders can exercise their options to convert warrants into equity shares on or before14th December 2011.

During the year 2010-11, the company has redeemed and extinguished 14,55,000 nos. of 6%Preference Shares of Rs. 100/- each issued to the lending institutions, on account of CDRexit payment. Further, the Company has also redeemed and extinguished 9,49,838 nos. of0.01% Preference Shares of Rs. 100/- each issued to the lending institutions.

EMPLOYEES STOCK OPTION SCHEME

As at 31st March 2011, there were 14,86,900 nos. of options in force to the senioremployees at a price of Rs. 89.60 per option. No options were exercised during the yearunder report.

The Company cancelled / withdrew 2,97,300 Nos. of ESOPs granted under Employees StockOption Scheme to the ex-employees of the Company who did not subscribe shares under ESOPScheme.

HUMAN RESOURCES

At SKNL, people are central to our continuous strive for excellent performance. YourCompany has implemented a comprehensive HR Strategy to attract, retain and develop talent.A major step was taken to strengthen the Learning & Development Initiative across thecompany. The Performance Management System was further strengthened through customizedtraining and robust implementation thereof. In the Compensation Management Area, severalnew improvements were brought in, to link it closely with the Individual Performance. ThePerformance Linked Variable Pay Scheme for the Senior Management Staff was completelystabilized during the year and it has now become part of the Management Process. TheFunctional Training for the Front Line Employees was further strengthened.

Your Company has launched a specific initiative to develop Leadership Talent in theCompany. The Leadership Competencies were identified and individual assessments are beingcarried out.

During the year the employee – employer relationship was very conducive and therewas no work disruption.

CORPORATE GOVERNANCE

To comply with the conditions of Corporate Governance, pursuant to Clause 49 of theListing Agreement with the Stock Exchange, a separate section on Management Discussion andAnalysis and Corporate Governance together with a certificate from the Company’sAuditors confirming compliance is included in the Annual Report.

INFORMATION TECHNOLOGY

Enterprise Resource Planning (ERP) implementation was started in the organization,across all business divisions, to bring in homogeneity & transparency in operations,better planning & managing in the supply chain and to provide real-time information tothe management to make correct business decisions. As the organization is multi-locationaland multi-divisional, there are many challenges in ERP implementation, which are being metand resolved and it is expected to be fully operational by the 4th quarter of thisFinancial Year 2011-12. This will be supported by state-of-the-art Servers, VideoConferencing facility and high-speed data transfer connection between all businessdivisions apart from user training to all employees to use the ERP to full extent.

DIRECTORATE

In accordance with the Companies Act, 1956 and the Company’s Articles ofAssociation, Dr A. C. Shah, Mr. Vijay Kalantri and Mr. Dara D. Avari retire by rotationand being eligible offer themselves for re-appointment.

Vide letter dated 20th September, 2010, IDBI Bank appointed Smt. Amita Narain asNominee Director vice Mr. Keshav Prasad Rau. The Board placed on record the guidance,advice and support given by Mr. Keshav Prasad Rau during his tenure as Director. We lookforward to the guidance and experience of Smt. Amita Narain to help the Company inachieving its objectives.

The Company appointed Mr. M. Damodaran as an Additional Director w.e.f 28th March 2011on the Board of the Company.

Mr. M. Damodaran is a retired IAS Officer from Manipur-Tripura cadre. Hewasthe Chairmanof the Securities and Exchange Board of India (SEBI) and Industrial Development Bank ofIndia (IDBI). He was also Chairman of India’s largest mutual fund, ‘Unit Trustof India’. He was Joint Secretary (Banking Division), Ministry of Finance for fiveyears.

Mr. Suresh N. Talwar joined the Board of the Company as an Additional Director w.e.f.1st April 2011. Mr. Suresh Talwar is a Solicitor and a Senior Partner of M/s Talwar,Thakore & Associates, Mumbai. Before setting up this firm in April 2007, he was aSenior Partner of M/s. Crawford Bayley & Company, a leading Solicitors firm in India.

The Company is very fortunate to have on board Mr. Damodaran and Mr. Talwar asDirectors and will surely be benefited from their extensive experience, keen insight andbusiness acumen.

Mr. M. Damodaran and Mr. Suresh N. Talwar being eligible offer themselves forre-appointment as Directors of the Company in the Annual General Meeting.

Because of his prolonged ill-health, Col S. K. Raje resigned from the Board as Directoron 30th July 2010. Col. Raje’s services and contribution during his tenure were dulyappreciated by the Board. The management is sad to inform that Col. Raje subsequentlypassed away on 12th February 2011.

DIRECTOR’S RESPONSIBILITY STATEMENT

To the best of their knowledge and belief and according to the information andexplanations obtained by them, your Directors make the following statement in terms ofSection 217(2AA) of the Companies Act, 1956:

1) that in preparation of the Annual accounts the applicable accounting standards havebeen followed along with proper explanations relating to material departures, if any;

2) that such accounting policies have been selected and applied consistently, andjudgements and estimates have been made that are reasonable and prudent so as to give atrue and fair view of the state of affairs of the Company as at 31st March, 2011 and ofthe profit and loss account of the Company for the year ended on that date;

3) that proper and sufficient care has been taken for the maintenance of adequateaccounting records in accordance with the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventing and detecting fraud and otherirregularities;

4) that the annual accounts have been prepared on a going concern basis.

DEPOSITS

Fixed deposits received from the shareholders and the Public stood at Rs. Nil as on31st March 2011 (previous year Rs. Nil). Further unclaimed deposits and interest amountingto Rs. 1,39,608/- from 11 depositors were duly transferred to the Investor Education &Protection Fund u/s 205 (C) during the year.

There is no deposit or interest claimed but remained unpaid. All the claimed depositswith interest have been repaid in time.

Members are aware that the fixed deposit schemes have since st April 2001, as benefitsbeen discontinued with effect were not commensurate with administrative costs.

SHIFTING OF REGISTERED OFFICE OF THE COMPANY

The Registered Office of the Company have been shifted from ‘Avadh’, ShreeRam Mills Premised, G.K. Marg, Worli, Mumbai 400 018 to B2, 5th Floor, Marathon NextGen,Off G.K. Marg, Lower Parel (West), Mumbai 400 013 with effect from 29th October, 2010.

STATUTORY INFORMATION FINANCE AND ACCOUNTS

The observations made by the Auditors in their report and included in the relevantnotes forming part of the Accounts, are self explanatory.

CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements have been prepared by your Company in accordancewith the applicable Accounting Standards (AS 21, AS 23 and AS 27) issued by the Instituteof Chartered Accountants of India and the same together with Auditors Report thereon formpart of the Annual Report.

SUBSIDIARY COMPANIES

The statement pursuant to Section 212 of the Companies Act, 1956 containing the detailsof the Company’s subsidiaries is attached. Pursuant to direction under section 212(8)of the Companies Act, 1956 by Government of India, Ministry of Corporate

Affairs, New Delhi vide General Circular N 2/2011 Notification no. 5/12/2007-CL-IIIdated 8th February 2011, the Board of Directors by passing resolution on 30th May 2011gave consent for not publishing / attaching copies of the Balance Sheets, Profit &Loss Accounts, Reports of the Board and the Auditors of all the Subsidiary Companies withthe statements of the Company as at 31st March 2011. The annual accounts of the subsidiarycompanies are kept for inspection by any shareholder in the registered office of theCompany and shall be made available to shareholders seeking such at any point of time.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Additional information required under the Companies (Disclosure of Particulars in theReport of the Board of Directors) Rules, 1988 in respect of Conservation of Energy andTechnology Absorption is given in the prescribed forms which are given in Annexure‘1’ to the Directors’ Report.

PARTICULARS OF EMPLOYEES

Information as per Section 217 (2A) of the Companies Act, 1956 read with Companies(Particulars of Employees) Rules, 1975, as amended, forms part of this Report. However, asper the provisions of Section 219 (1) (iv) of the Companies Act, 1956, the Report andAccounts are being sent to all shareholders of the Company excluding the statement ofparticulars of employees under Section 217 (2A) of the Companies Act. Any shareholderinterested in obtaining a copy of the said statement may write to the Company Secretary atthe Registered Office of the Company.

GROUP FOR INTERSE TRANSFER OF SHARES

As required under Regulation 3(1)(e) of the Securities and Exchange Board of India(Substantial Acquisition of Shares and Takeovers) Regulations, 1997, persons forming partof "Group" (within the meaning as defined in the Monopolies and RestrictiveTrade Practices Act, 1969) for the purpose of availing exemption from applicability of theprovision of Regulation 10 to 12 of the aforesaid Regulations, are given in the Annexure‘2’ attached herewith and which forms part of this Annual Report.

Auditors

The Board, on the recommendation of the Audit Committee, has proposed that M/s.Haribhakti & Co. Chartered Accountants, Mumbai, be re-appointed as the StatutoryAuditors of the Company and to hold office till the conclusion of the next Annual GeneralMeeting of the Company. M/s. Haribhakti & Co., have forwarded their certificate to theCompany, stating that their re-appointment, if made, will be within the limit specified inthat behalf in sub-section (1B) of Section 224 of the Companies Act, 1956.

In respect of observations made by the auditors, please refer to schedule‘P-II’ note no. 3(b) which is self-explanatory and hence in the opinion of theDirectors, does not require any further explanation.

ACKNOWLEDGEMENT

Your Directors take this opportunity to express their gratitude for the assistance,guidance and support provided by the financial institutions and banks, customers,suppliers and other business associates. Thanks are also due to your Company’semployees for their high degree of commitment and dedication displayed at all levels. YourDirectors especially appreciate the continued understanding and confidence of the Members.

By Order of the Board
For S. KUMARS NATIONWIDE LIMITED
Place: Mumbai Dr. A. C. SHAH
Date: 30th May, 2011 Chairman

ANNEXURE ‘1’ TO THE DIRECTORS’ REPORT

A. CONSERVATION OF ENERGY

A) ENERGY CONSERVATION MEASURES TAKEN

Energy resource is a vital requirement of any industrial activity and its availabilityis also not infinite. Overuse of energy resources could result in a depletion of thoseresources in a shorter period of time.

Hence we are committed for Energy Conservation measures and practices and continuousefforts are made to conserve energy.

Some major energy conservation measures carried out during the year are as under:

1. Baruche Superfine Cotton (BSFC) Division, at Jhagadia, Gujarat:

i) Installation of VFD in ETP and RO Plant

Variable frequency drive has been installed at four locations in ETP and RO Plantpumps, to run plant with required flow.

Total Power consumption are

Without VFD 600 Kwh per day
With VFD 420 Kwh per day
Saving in power consumption 180 units per day i.e. 65700 units per annum

ii) Rain Water Harvesting

We have developed arrangement to collect the rain water.

Through the system we had collected 11,000 Kl water and utilized to cater plantrequirement.

iii) Recycle of Sanforising rubber blanket and cooling cylinder water

We are collecting process water of Sanforising and after filteration it is being usedagain as soft water for Processing.

Total Water recovered per day will be around 60 m3 /day. Total water recycled per yearwill be 21900 m3/day.

Considering cost of Soft water as Rs. 22/Kl ,there will be saving of Rs. 4,81,800 perannum.

iv) Recovery of heat from CRP and Yarn dyeing Hot water

We have installed heat exchanger to recover heat of CRP and Yarn dyeing hot water topreheat RO rejects water before evaporation.

This will help in enhancement of evaporation of RO reject water by 3 Kl per day,considering cost of evaporation as Rs.150/Kl. Hence total saving will be approximately Rs.1,65,000/- per annum.

v) Installation of Caustic recovery plant

Caustic recovery plant has been installed to recycle weak caustic lye generated frommercerizing machine. This recovered lye will be again reused for mercerizing process whichin turn saves expenses for procurement of fresh caustic lye.

Net saving is around 50% of the fresh caustic. Fresh Caustic requirement will be 100Ton for 403600 kg fabric production.

So annual saving will be approximately Rs. 10 Lac per annum.

vi) Installation of LED Streets lights

35 Watt LED Street lights have been installed in place of 70 Watt Sodium light.Initially we have installed 14 nos of fixtures. Hence total saving will be approximately2146 units per year.

2. Spinning & Weaving Division at Chamunda Standard Mills, MP:

i) During the year 2010-11 nine existing motors of Ring frame have replaced withLakshmi make energy efficient 20 HP Motors thus saved 10% of energy.

ii) Around 50 Nos. of compound lighting with normal fittings (2 rods) have beenreplaced with 45 W CFL.

iii) For about 40 Nos. of normal light fitting in different offices have been replacedwith 18 W CFL.

iv) 10 Nos. of Normal Efficient Ceiling Fan.

Fans have been replaced with Energy

3. SKNL Weaving Division at Dewas, MP:

We have installed Electronic Ballast Tube Light fittings 250 Nos. on our new looms inUnit 1 & 2 instead of conventional copper ballast fittings,resulting in saving(reduction) of electricity consumption by 30%.

b) Additional investment / proposals, if any, being implemented for reduction ofconsumption of energy:

1. Baruche Superfine Cotton (BSFC) Division, at Jhagadia, Gujarat:

We propose to install RO stage II and Ultra filtration with two stage RO and Ultrafiltration. Our total water recovery will increase from 65% to 85% per annum.

c) Impact of measures at (a) and (b) above for reduction of energy consumption andconsequent impact on the cost of production of goods:

1. Baruche Superfine Cotton (BSFC) Division, at Jhagadia, Gujarat:

i) With use of Variable frequency drive in ETP and RO Plant, there will be saving ofapprox Rs. 3.48 lacs per annum.

ii) With Rain water harvesting, we will save around Rs. 2.20 lacs per annum.

iii) By recycle of Sanforising water, we will save around Rs. 4.8 Lacs per annum.

iv) By heating RO reject water for Evaporation, we will be saving around Rs. 1.64 Lacsper annum.

v) Using Caustic recovery plant, we will be saving around Rs. 10 lacs per annum.

vi) With installation of LED Street lights we will save around 2416 Power units perannum i.e. around Rs. 0.11 lacs per annum.

Total cost of saving in electricity consumption will be approximately Rs. 22.23 lacsper annum.

B. Technology ABSORPTION

e) Efforts made in technology absorption as per form "B" given below:Research & Development (R & D)

FORM "B"

i Specific areas in which R&D carried out by the Focus is given on ContinualProduct development Company

ii Benefits derived as a result of the above R & D Improved product quality andable to cater high end market with good customer satisfaction.

iii Future plan of action Same as above

iv Expenditure R & D Not identified separately.

Technology Absorption, Adoption and Innovation:

The Company has absorbed the technology of manufacturing exclusive high value superfine cotton shirting fabric, Cotton and Cotton Blended products.

i) Efforts, in brief, made towards technology absorption, adoption and innovation:

Latest sophisticated manufacturing and testing equipments have been imported fromEurope and Japan, which gives consistant high value product and being tested andmaintained regularly for consistant quality.

Dornier Machines with higher speed and having electronic controls were added which gavethe flexibility to style change etc. at faster speed and greater ease.

Additional Equipments for testing and new product developments have been installed forfaster and accurate product manufacturing.

ii) Benefits derived as a result of the above efforts

With continuous product and design developments, two new complete product range of Highvalue added Shirting is being offered to high end market.

iii) Information regarding Imported Technology

All testing and manufacturing equipments have been imported from Europe and Japan.Latest technology machinery with automation has been adopted.

C. FOREIGN EXCHANGE EARNINGS AND OUTGO

a) Activities relating to export, initiatives to increase exports, Developments of Newexport markets for Products and Services and Export Plan.

The Company has continued to maintain focus on and avail of export opportunities basedon economic consideration. During the year the Company has exports (FOB value) worth Rs.6850.46 Lacs.

b) Total Foreign exchange earned and used

Rs. in lacs
Current year 2010-11 Previous Year 2009-10
a. Total Foreign Exchange earned 6,850.46 1,090.39
b. Total savings in foreign exchange through products manufactured by the Company and deemed exports - -
c. Sub Total (a + b) 6,850.46 1,090.39
d. Total Foreign Exchange used 11,774.09 23,324.34

FORM A

FORMING PART OF ANNEXURE (1)

Form for Disclosure of particulars with respect to conservation of Energy

Part A - POWER AND FUEL CONSUMPTION

1. ELECTRICITY Current year Previous Year
2010-11 2009-10
Purchase
Units in lacs 244.64 141.79
Total Amount Rs. lacs 1,130.32 656.37
Rate / units Rs. 4.62 4.63
Own generation
Through Diesel generator
Units (D. G. Units) in lacs 6.02 10.48
Unit / Ltd of Diesel Oil 4.71 4.65
Cost / Unit Rs. 5.89 5.10

Part B - CONSUMPTION PER UNIT OF PRODUCTION

ELECTRICITY Current year Previous Year
2010-11 2009-10
Fabrics KWH / Metre 0.33 0.34
Others (Specify - -

ANNEXURE ‘2’ FORMING PARTOF THE DIRECTORS’ REPORT

Persons forming part of "Groups" (within the meaning as defined in theMonopolies & Restrictive Trade Practices Act, 1969) for the purpose of availingexemption from applicability of the provision regulation 10 to 12 of Securities &Exchange Board of India (Substantial Acquisitions of Shares and Takeovers) Regulations,1997 ("the said Regulations"), as required under Regulation 3 (1) (e) ofthe said Regulations include the following:

1. Shri Nitin S. Kasliwal, Managing Director 22. SKNL Foundation (Sec. 25 Company)
2. Smt. Jyoti N. Kasliwal 23. Anjaneya Foundation (Sec. 25 Company)
3. Ms. Anjani N. Kasliwal 24. SKNL International B. V.
4. Mr. Kartikeya N. Kasliwal 25. SKNL Europe B. V.
5. Reid & Taylor (India) Ltd. 26. SKNL Italy S. p. A.
6. Belmonte Retails Limited (nee-Belmonte Lifestyles Ltd.) 27. SKNL Global Holdings B. V.
7. Anjaneya Holdings Pvt. Limited (nee-Anjani Finvest Pvt. Ltd) 28. SKNL North America B. V.
8. Brandhouse Retails Limited 29. SKNL (UK) Ltd.
9. Brandhouse Oviesse Limited 30. Leggiuno S. p. A.
10. S. Kumars Enterprises (Synfabs) Limited 31. Global Apparel (US) Ltd
11. S. Kumars Textiles Limited 32. Global Apparel (France) Ltd
12. N’Essence Holdings Limited 33. Global Apparel (Hong Kong) Ltd
13. Rosewood Holdings Pvt. Limited 34. 7172931 Canada Ltd
14. Verve Properties & Investment Pvt. Limited 35. Marling & Evans Ltd.
15. Ingenious Finance & Investment Pvt. Limited 36. Remala Trading B.V
16. Natty Finance & Investment Pvt. Limited 37. Coppley Corp
17. S. K. Worsteds Pvt. Limited 38. HMX Poland sp. Z.o.o
18. Tulja Enterprises Pvt. Limited 39. HMX Acquisition Corp.
19. Sansar Exim Pvt. Limited 40. HMX Des Plaines LLC
20. Chamundeshwari Mercantile Pvt. Limited 41. Quartet Real Estate LLC
21. Maverick Mercantile Pvt. Limited 42. HMX LLC
43. HMX, DTC Co.

Any body Corporate and / or entity formed / promoted by any of the above."Family" for this purpose includes spouse, children and parent.

   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
Risa Internatio. 3,401.34 0.00 110.72 0.00 0.1 0.5 0.02
Bombay Dyeing 1,363.93 33.19 2.93 9.00 17.2 15.8 2.89
LS Industries 1,273.20 37.50 12.00 152.63 37.0 36.8 0.03
Alok Inds. 1,063.14 1.61 0.21 3.25 19.0 14.5 3.30
Jaybharat Text 813.45 0.00 55.92 332.55 0.0 0.0 9.66
Nakoda 309.00 4.17 0.50 10.68 13.9 6.7 3.23
Siyaram Silk 304.38 5.40 0.97 3.87 18.9 18.6 0.89
PIL Inds. 242.79 0.00 -9.29 0.00 0.0 0.0 0.00
Orbit Exports 164.53 8.17 3.13 4.46 34.8 32.1 0.69
Garden Silk Mill 159.33 0.00 0.40 16.26 -22.5 -0.1 2.96
Rajlaxmi Inds. 156.55 0.00 6.00 0.00 0.0 0.0 0.19
Sarla Performanc 149.04 7.25 1.40 4.71 19.7 17.0 0.84
S Kumars Nation 144.24 0.00 0.13 13.64 0.0 0.0 2.28
Nahar Fabrics 109.70 0.00 1.23 0.00 60.7 11.3 8.25
Ganesha Ecosphe. 89.70 3.57 0.89 4.41 26.5 15.9 1.45

Futures & Options Quote

 
Expiry Date
NA
Instrument: NA
Expiry Date: NA
Strike Price: NA
Open Price: NA
Average Price: NA
No. of Contracts Traded: NA
Open Interest: NA
Underlying: NA
Option Type: NA
Market Lot: NA
Previous Close: NA
Day’s High | Low: NA | NA
Turnover (Cr.): NA
Open Int. Change: NA | NA
View detailed F& O quotes >>

Key Information

Key Executives:

Nitin S Kasliwal , Chairman & Managing Director  

Anil Channa , Deputy Managing Director  

Vijay Kalantri , Director  

Jagadeesh S Shetty , Director  


Company Head Office / Quarters:
B2 5th Floor Marathon Nextgen,
Off G K Marg Lower Parel(West),
Mumbai,
Maharashtra-400013
Phone :
Fax :
E-mail :
contact@sknl.co.in
nimesh.shah@sknl.co.in
Web : http://www.sknl.co.in
Registrars:
Big Share Services Pvt Ltd
E-2/3 Saki Vihar Rd
Ansa Indl Estate
Saki Naka Andheri-E
Mumbai - 400 072

Fund Holding

 
Scheme Name No. of Shares
Goldman Sachs CNX 500 Fund (G) 4,929

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