Ambika annual report just came out
Few initial observations which I had , I wanted to share with you and get your opinions
1)receivable days have gone up
2)share buy back query
BUYBACK OF SHARES
The Board of Directors at their meeting held on 11th November, 2016 approved the buyback of equity shares of the Company in
accordance with Section 68 of the Companies Act,2013 and SEBI ( Buyback of Securities ) Regulations ,1998 and the buyback
announcement was made on 22nd November,2016. The Company, as proposed , has bought back through Stock Exchanges,
150000 Equity Shares of Rs. 10/- each ,which have been extinguished subsequently.
The aggregate amount spent on buyback amounted to Rs. 1611.52 Lakhs consisting of (i) Consideration paid towards buyback
Rs.1573.22 Lakhs and (ii) Other transaction cost Rs.38.30 Lakhs.
In terms of Section 69 of the Companies Act,2013, Rs.15.00 Lakhs being the nominal value of Equity Shares bought back was
transferred to Capital Redemption Reserve Account from Share Premium account and the balance cost of buyback Rs.1596.52
Lakhs was also met out of Share Premium Reserve .
So they were able to purchase the share at 10Rs per share only? It means the value of shares of the minority investors like is diluted?
3) sales almost same ? just 7% increase with same capacity.
any plans for future scope for sales increase, as their capacity is almost same
The Company, on account of manufacturing specialty cotton yarn, continues to have good demand for its products and has
created specific markets for its products. This ensures more sustained profitable operations. The company continues to
strengthen its production base by modernization and adding balancing equipments and improvising production process. The
Company has installed windmills for 100% of its captive requirements and installed EHT line (110 KVA Sub-Station) for smooth
flow of quality power. The Company has commenced its operations in Knitting during the year. This would supplement the
operation of spinning segment and a value proposition. These measures will continue to support the operations of the company
at moment capacty has same
future expansion, which might leads to more sales ? is it right ?
During the year the Company has invested Rs.1752 Lakhs towards strengthening of its manufacturing operations of spinning
segment and has invested Rs.1007 Lakhs in Knitting segment. This knitting facility would knit fabrics upto 8,000 kgs per day as
of now and 90% of the output is exported. This total investment of Rs.2759 Lakhs was fully met out of internal accruals.
The Company is not carrying any long term debt.
The implementation of spinning phase is still pending on account of uncertainty of use of land and appropriate clearance from
authorities. However, the Company has planed to invest further an estimated amount of Rs. 2000 Lakhs in Knitting segment, to
augment the knitting capacity further 16,000 Kgs per day. Th
e investment will be made out of internal accruals.
Ambika Cotton Mills Limited is engaged in manufacturing and selling speciality cotton yarn catering to the needs of
manufacturers of premium branded shirts and t-shirts. Exports constitute significant portion of the operations. The company
operates with total installed spindle capacity of 108288 (Previous Year 108288 Spindles) of compact facility housed in four units
and Knitting facility. The company has installed 27.4 MW wind power capacity for captive consumption of spinning segment.
The Spinning Plants are located at Kanniyapuram, Dindigul and Windmills are located in Tirunelveli, Dharapuram and Theni in
the State of Tamilnadu.
spindel capacity - 108288 spindles compact - 4 units
27.4 mw wind power capactiy